OPINION
It is disturbing that PAP strongman Lee Kuan Yew who just passed his 87th birthday lately, had received numerous well-wishes from misinformed Singaporeans and foreigners alike for his "feat" in transforming Singapore from "third world to first" in a single generation which were given extensive publicity by the sycophantic Singapore media.
Much of Lee's so-called accomplishments have been over-hyped which does little justice to the contributions of his fellow colleagues and other Singaporeans.
Even so, the greatest misinformation which has been perpetuated over the years is the myth that Singapore has achieved "First World" status.
The concept of "First World" first came about during the Cold War where it was useed to describe democratic and capitalistic countries which were aligned with the United States against the former Soviet Union.
After the Soviet Union collapsed in 1991, the term "First World" has come to be associated with highly developed countries which have very advanced economies and very high Human Development Indices. However, there is no fixed set of criteria to determine if a country belongs to the First or Third World.
The United Nations defined First World on the wealth of the nation's Gross National Product (GNP) and Singapore joined the First World Club in 2000.
For the purpose of discussion here, we will use the UN Human Development Index on which Singapore is ranked 23th (read more here)
Though Singapore is considered a First World by economic indicators like GNP and GDP, it does not share the other attributes commonly found among first world nations.
While our economy has the highest GDP (PPP) per capita in Asia at $49,288 according to a World Bank report (source: Wikipedia), our people do not enjoy a quality of life which commensurate with it.
1. High domestic wages:
The citizens of First World nations (on the Human Development Index) all enjoy high domestic wages and purchasing power which is not found in other developing countries.
According to the worldwide study conducted and released by UBS lately, titled “Price and Earnings 2009″, Singaporeans have low domestic wages and purchasing power which is comparable to Third World countries rather than First World ones. (download the study here)
Singapore has a GDP (PPP) per capita higher than Switzerland, but our wages are way below that of the Swiss. The UBS study found that employees in Copenhagen, Zurich, Geneva and New York have the highest gross earnings. With its extremely high gross wages and comparatively low tax rates, Switzerland is a very employee-friendly country.
Zurich and Geneva have wage indices (gross) of 119.8 and 107.5 respectively. In contrast, Singapore has a wage index of only 31.3, comparable with Moscow (30.9), Tallinn (28.7) and Johannesburg (26.7).
In the Asia-Pacific region, it is exceeded by Tokyo (83.0), Sydney (74.1), Auckland (44.1), Hong Kong (42.3), Taipei (35.5) and Seoul (32.3)
2. High purchasing power:
Based on the same UBS report, Singaporeans have a low purchasing power which is not compatible with that of First World Countries.
It has purchasing power of only 39.9, comparable to Kuala Lumpur (39.5), Warsaw (34.0) and Bogota (33.7).
Other countries in the Asia-Pacific region which are ahead of us are Tokyo (82.2), Auckland (68.9), Taipei (58.9), Hong Kong (58.1) and Seoul (57.4).
In other words, though the cost of living is higher in Tokyo, the average Japanese has a domestic purchasing power more than twice that of an average Singaporean.
Though Malaysia is still a developing country and has a GDP (PPP) per capita of only $14,215, less than 3 times of ours, the ordinary Malaysian citizen has about the same domestic purchasing power as the Singaporean.
3. Low income gap between the rich and the poor:
First World countries generally have low income gap between the rich and the poor as exemplified by the low Gini Coefficient of Norway, Australia, Canada, Iceland, Ireland, Netherlands, Sweden, France, Switzerland and Japan:
Singapore has the highest income gap among the thirty most developed economies in the world after Hong Kong which is part of China.
In fact, its income gap is comparable to that of Third World countries like Kenya, Mexico and Nepal.
4. High quality of life:
The citizens of most First World countries enjoy a high quality of life as measured by the authoritative Quality of Life Index (read more here)
The countries with the highest scores are France, Australia, Switzerland, Germany, New Zealand, Luxembourg, United States, Belgium and Canada. Singapore is ranked a miserable 70th place.
The index is produced based on the following nine categories: cost of living, culture and leisure, economy, environment, freedom, health, infrastructure, safety and risk and climate.
Each country in each category is graded on a curve and it is scored relative to every other country. The scores run 0 to 100 for each category. This means the country that gets 0 is the worst in that category, and the country that gets 100 is the best.
The data is collated from official government sources, the World Health Organization, The Economist, and many other journals, tables, and records.
Below is Singapore’s scores for each category:
While Singapore scores high on risk and safety, health and infrastructure, it scores poorly in environment and freedom, bringing down its final score to a mediocre 61.
Environment and Freedom each contributed 10 per cent to the countries’ overall score:
Environment (10%). To figure a country’s score in this category, we look at population density per square kilometer, population growth rate, greenhouse emissions per capita, and the percentage of total land that is protected.
Freedom (10%). Freedom House’s survey is the main source for these scores, with an emphasis on a citizen’s political rights and civil liberties.
5. Social welfare and security for the aged:
Most First World countries provide a comprehensive social safety net for their citizens so that they do not have to worry about their lives after retirement.
For example in Australia, Canada and the Nordic states, the healthcare expenses of the people are all taken care of by the state. Though their taxes are higher than that of Singapore, their workers enjoy higher domestic wages and purchasing power as well.
In contrast, Singaporeans are implored time and again to work as long as possible till they drop dead and die, the latest call coming from PAP strongman Lee Kuan Yew who mooted the idea of scraping the retirement age altogether.
While the senior citizens of other First World countries spend their twilight years taking care of their grandchildren or pursuing their hobbies, Singaporeans have to work as cardboard collectors, security guards and dish washers just to meet ends meet.
6. Vibrant multi-party democracies with independent institutions and media:
According to Reform Party Secretary-General and Cambridge-educated economist Mr Kenneth Jeyaretnam, "Singapore’s per capita GDP is one of the highest in the world but at the same time Freedom House rates Singapore as near the bottom of the partially free countries with a score of 4 (where 1 is most free) for civil liberties and 5 for political rights." (read more here)
If we look at the top twenty countries by nominal GDP in 2008 as measured by the IMF, World Bank and CIA, we find that between 85% and 95% of the countries on the list rated between 1 and 1.5 for the combined average rating for political rights and civil liberties.
The countries that did not fall into the category of free states were all oil exporters with low populations such as Qatar and Kuwait (though Kuwait rates as slightly freer than Singapore). You can argue about the direction of causation. However also consider that Singapore finds itself in the company of some of the world’s poorest countries in its ranking in the Freedom House Index. These include Pakistan, Nigeria, Haiti, Uganda and the Central African Republic.
All the First World countries which are ranked within the top thirty on the UN Human Development Index are fully functioning democracies with Singapore being an exception.
These countries also have a relatively independent and free press which is not found in Singapore.
The Singapore media is ranked a pathetic 133th in terms of press freedom on the World Press Freedom index in 2009 among the likes of Russia, Burundi and Kenya while the countries with the most free press are the First World countries of Denmark, Finland, Ireland, Norway and Iceland. (read more here)
Conclusion
Contrary to what was proclaimed by the PAP regime and publicized by the Singapore media, Singapore is NOT a First World country yet. We only have First World GNP and GDP figures, but NOT First World wages, quality of life and political freedom.
The Singapore "miracle" is not entirely "miraculous" after all based on Nobel Economics Laureate Paul Krugman's assessment of Singapore:
"The Singapore’s miracle turned out to have been based on perspiration rather than inspiration: Singapore grew through a mobilization of resources that would have done Stalin proud."
Singapore's economic growth for decade or so was and is still fueled largely by the relentless influx of cheap foreign workers which help keep business costs low, increase the profit margins of companies and thereby boosting the GDP and GNP figures artificially in the process and this is only possible in a repressive fascist totalitarian state like Singapore where its people find it almost impossible to vote out the ruling party.
In the meantime, the median wages of ordinary Singaporeans remain stagnant at $2,400 monthly even as the cost of living has escalated, especially that of public housing.
The political system of a country is closely linked to its economic performance and quality of life. Under the unique political system of Singapore which resembles more of a totalitarian fascist repressive state like North Korea, only the PAP ministers, associates and elites benefit directly from the country's economic growth and not ordinary Singaporeans who are struggling to make ends meet.
Unless Singaporeans vote out the despotic PAP regime and revamp its archaic political system which lacks independence checks and balances on the executive, Singapore will never be able to fulfil its full potential of becoming a genuine First World country where its citizens enjoy a truly First World standard of living.
The UBS Series:
>> Part 1: Singapore has lowest wages and domestic purchasing power among Asian Tigers
>> Part 2: Moving towards a Russian standard of living
>> Part 3: Why Singaporeans are paupers in a first world economy
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