Comparing Singapore & Hong Kong


Divergent paths after WWII



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Divergent paths after WWII

  • Hong Kong restructured its economy
    • population quadrupled 1945 - 1955
    • large-scale relocation of capital, entrepreneurs, and assets from mainland China
    • trade embargo against mainland China after Korean War broke out actually benefited HK
  • relative political stability
    • popular political apathy

Divergent development model

  • Singapore’s People’s Action Party
    • faced severe internal and external conflicts in 1960s
    • PAP became a elitist and paternalistic party
    • neo-Confucianism?
  • government intervention in the economy
    • drew up a state development plan

Singapore’s development 1960s

  • New institutions
    • Economic Development Board
      • promote industrial development
    • Housing and Development Board
      • develop industrial estates
    • Development Bank of Singapore
      • provide industrial financing
    • Jurong Town Corporation
      • acquire, develop, and manage development sites

Singapore’s development 1960s

  • Restructured from trading port to manufacturing base
  • government intervention to attract foreign investment
    • in labor market
    • in providing public housing
    • in improving educational facilities
    • in developing a social security system

Singapore’s development 1960s

  • produced phenomenal economic growth
  • achieved full employment by early 1970s
  • ventured into high-tech, capital-intensive industries and high value-added services

Hong Kong’s development

  • Hong Kong also enjoyed phenomenal economic success
    • rapid expansion in manufacturing in 1960s
    • industrial diversification in 1970s

Hong Kong’s development

  • government’s laissez-faire principle
  • reactive, selective, & reluctant intervention
    • development of public housing
    • provide lower-middle-income families with access to home ownership
    • social expenditure & community development
    • development of human resources
  • intervention to maintain competitiveness

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