How Lee Kuan Yew transformed Singapore from small town into global financial hub

Bowing out: former prime minister of Singapore, Lee Kuan Yew, has died at the age of 91. Image: Getty.

This week, we're looking at different perspectives on Lee Kuan Yew's governance of Singapore. This piece examines the positives. 

Lee Kuan Yew, the founding father of one of Asia’s smallest but most developed economies, has died. Lee led Singapore after its separation from Malaysia to emerge as one of the world’s most powerful financial centres.

The tiny nation, whose main industry was manufacturing when it became an independent republic in 1965, saw its GDP per capita skyrocket under Lee to one of the highest in the world in 2013. Its population has doubled to more than 5m.

Singapore flourished thanks to Lee's foresight and skill to join the ranks of New York, London and Switzerland as a global financial hub. Singapore has no natural resources of its own to exploit, so Lee used its port to increase trading activity. 

Even though Lee was criticised by many for leading the country in an authoritarian style that stifled political dissent and press freedoms, his firm grip on power and maintenance of stability gave little scope for corrupt financial practices. The orderliness that Singapore became known for was attractive to foreign investment – billions of dollars poured in, ensuring the country’s economic success.

Lee maintained a tight grip on domestic finance by preventing the internationalisation of the Singapore dollar and limiting the operations of foreign banks. This meant international firms saw an opportunity to establish themselves in the tiny island nation. Sound financial and economic policy coupled with a corruption-free environment and technological advancement meant many multinational firms chose Singapore as a regional hub. Lee championed free trade, which helped Singapore attract a free flow of foreign investment and multinational giants such as General Electric.

Singapore’s central business district, a hub for international business. Image: Limtohhan at Wikimedia Commons.

One clear factor in Singapore’s rise was Lee’s ability to take consistent advantage of global financial upheavals. This began in 1971 when America de-linked the dollar from gold. Lee was quick to grasp this opportunity and established Singapore as a regional centre for foreign exchange.

Indeed, since 1968, the Singapore government has provided incentives and preferential tax treatments to cultivate an Asian Dollar Market. This initiative proved instrumental in helping Singapore to develop as a financial centre and maintain a lead over its nearest rival, Hong Kong.

Keeping locals happy

Lee knew that for Singapore to compete with global giants, he needed to provide Singaporeans with housing and employment opportunities that would bring the nation economic stability. To this end, he established the Housing Development Board and Economic Development Board. The housing board transformed this space-constrained island into a world class metropolis that helped its citizens to move out of small ghettos into carefully planned mixed townships and provided superior living conditions for its citizens.

Source: World Bank.

Meanwhile, the development board slowly built up Singaporean industries and businesses to provide job opportunities for both locals and expats. These efforts of the premier saw Singapore’s per capita GDP jump from around US$500 in 1965 by a staggering 2800% to US$14,500 by 1991. Building on Lee’s economic model, it has since continued to grow to US$55,000.

Singapore under Lee also adopted a two-pronged strategy with regards to its financial sector. As well as making Singapore an international financial hub, it wanted the financial sector to play a key supporting role to the growing industries located in Singapore such as manufacturing and shipping.

Lee’s style of running Singapore earned him many accolades. He was once described by Richard Nixon as “A big man on a small stage who in other times and other places, might have attained the world stature of a Churchill, Disraeli or a Gladstone”.

He was a man with a mission to transform a small seaside town into a financial giant. The size of the country’s GDP per capita compared to its tiny size and lack of resources is testament to his success at doing so.

Nafis Alam is an Associate Professor of Finance and Director of the Centre for Islamic Business and Finance Research at the University of Nottingham

This article was originally published on The Conversation. Read the original article.

 
 
 
 

How bad is the air pollution on the average subway network?

The New York Subway. Image: Getty.

Four more major Indian cities will soon have their own metro lines, the country’s government has announced. On the other side of the Himalayas, Shanghai is building its 14th subway line, set to open in 2020, adding 38.5 km and 32 stations to the world’s largest subway network. And New Yorkers can finally enjoy their Second Avenue Subway line after waiting for almost 100 years for it to arrive.

In Europe alone, commuters in more than 60 cities use rail subways. Internationally, more than 120m people commute by them every day. We count around 4.8m riders per day in London, 5.3m in Paris, 6.8m in Tokyo, 9.7m in Moscow and 10m in Beijing.

Subways are vital for commuting in crowded cities, something that will become more and more important over time – according to a United Nations 2014 report, half of the world’s population is now urban. They can also play a part in reducing outdoor air pollution in large metropolises by helping to reduce motor-vehicle use.

Large amounts of breathable particles (particulate matter, or PM) and nitrogen dioxide (NO2), produced in part by industrial emissions and road traffic, are responsible for shortening the lifespans of city dwellers. Public transportation systems such as subways have thus seemed like a solution to reduce air pollution in the urban environment.

But what is the air like that we breathe underground, on the rail platforms and inside trains?

Mixed air quality

Over the last decade, several pioneering studies have monitored subway air quality across a range of cities in Europe, Asia and the Americas. The database is incomplete, but is growing and is already valuable.

Subway, Tokyo, 2016. Image: Mildiou/Flickr/creative commons.

For example, comparing air quality on subway, bus, tram and walking journeys from the same origin to the same destination in Barcelona, revealed that subway air had higher levels of air pollution than in trams or walking in the street, but slightly lower than those in buses. Similar lower values for subway environments compared to other public transport modes have been demonstrated by studies in Hong Kong, Mexico City, Istanbul and Santiago de Chile.

Of wheels and brakes

Such differences have been attributed to different wheel materials and braking mechanisms, as well as to variations in ventilation and air conditioning systems, but may also relate to differences in measurement campaign protocols and choice of sampling sites.

Second Avenue Subway in the making, New York, 2013. Image: MTA Capital Construction/Rehema Trimiew/Wikimedia Commons.

Key factors influencing subway air pollution will include station depth, date of construction, type of ventilation (natural/air conditioning), types of brakes (electromagnetic or conventional brake pads) and wheels (rubber or steel) used on the trains, train frequency and more recently the presence or absence of platform screen-door systems.

In particular, much subway particulate matter is sourced from moving train parts such as wheels and brake pads, as well as from the steel rails and power-supply materials, making the particles dominantly iron-containing.


To date, there is no clear epidemiological indication of abnormal health effects on underground workers and commuters. New York subway workers have been exposed to such air without significant observed impacts on their health, and no increased risk of lung cancer was found among subway train drivers in the Stockholm subway system.

But a note of caution is struck by the observations of scholars who found that employees working on the platforms of Stockholm underground, where PM concentrations were greatest, tended to have higher levels of risk markers for cardiovascular disease than ticket sellers and train drivers.

The dominantly ferrous particles are mixed with particles from a range of other sources, including rock ballast from the track, biological aerosols (such as bacteria and viruses), and air from the outdoors, and driven through the tunnel system on turbulent air currents generated by the trains themselves and ventilation systems.

Comparing platforms

The most extensive measurement programme on subway platforms to date has been carried out in the Barcelona subway system, where 30 stations with differing designs were studied under the frame of IMPROVE LIFE project with additional support from the AXA Research Fund.

It reveals substantial variations in particle-matter concentrations. The stations with just a single tunnel with one rail track separated from the platform by glass barrier systems showed on average half the concentration of such particles in comparison with conventional stations, which have no barrier between the platform and tracks. The use of air-conditioning has been shown to produce lower particle-matter concentrations inside carriages.

In trains where it is possible to open the windows, such as in Athens, concentrations can be shown generally to increase inside the train when passing through tunnels and more specifically when the train enters the tunnel at high speed.

According to their construction material, you may breath different kind of particles on various platforms worldwide. Image: London Tube/Wikimedia Commons.

Monitoring stations

Although there are no existing legal controls on air quality in the subway environment, research should be moving towards realistic methods of mitigating particle pollution. Our experience in the Barcelona subway system, with its considerable range of different station designs and operating ventilation systems, is that each platform has its own specific atmospheric micro environment.

To design solutions, one will need to take into account local conditions of each station. Only then can researchers assess the influences of pollution generated from moving train parts.

The ConversationSuch research is still growing and will increase as subway operating companies are now more aware about how cleaner air leads directly to better health for city commuters.

Fulvio Amato is a tenured scientist at the Spanish National Research CouncilTeresa Moreno is a tenured scientist at the Institute of Environmental Assessment and Water Research (IDAEA), Spanish Scientific Research Council CSIC.

This article was originally published on The Conversation. Read the original article.