Comparing Singapore & Hong Kong

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