ssa2211 lecture 9 the economy

8/3/2019 SSA2211 Lecture 9 the Economy

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Singapore &Globalisation:

The Economy

SSA2211

Semester 1 , 2011-12

Dr Donna Brunero


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Lecture Outline

How do we understand Globalisation?

Is trade shaping the world? Globalisation in a historical perspective.

Should we consider cycles of TRADE and globalisation?


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What is Globalisation?

The mechanistic view of globalisation

Compression of time and space; perceived reduction of worldscale through technological and socio-political changes; eg. theborderless world

New global unity through consumption

A force that emerges from changes in technology, commerce,economics and affects the ways that countries relate to oneanother.

Culture (imposition of Western culture) and local resistance.


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Supporters vs Criticsof Globalisation

Proponents and Opponents:

1. International businesses,corporations

2. Global village theorists

3. Tribalists

4. Neo-conservativeprotectionists

5. Anti-globalisation activists


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Source: 1997 The Year in Cartoons by the cartoonists of TheStraits Times.


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Globalisation and theNation

What happens to thenation underglobalisation?

Impact ofglobalisation onsovereignty? Sovereignty as a

precondition formodern nation states


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For Singapore, it is not aquestion of whether to globalize,but how to globalize. While

Singapore may be handicappedby its small size and lack ofnatural resources, it seems thatthese drawbacks could be less

of a problem as the worldeconomy becomes moresophisticated. Physical size andnatural resources will becomeless important for economic

growth when compared withhuman capital, information, andknowledge in the future.

Scholar Lee Lai-to (c.1999)


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Trade Shapes the World?

Trade routes Centres of trade (such

as port cities) Demands for

commodities

Business practices Trading communities

Trade as a key toshaping the world?

Where does Singaporefit into this picture?


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How can we view Singapores

history? Cycles of conflict???

Cycles of trade???

A combination of both???


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Recapping on previouslecturesApproaches to

Singapores history: Heroes/Pioneers War (geopolitics) Trade (Globalisation)Can we separate each?

Or are theyintertwined?

Driving forces ofSingapores history.


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Cycles of Conflict?

Idea of Singapores history beingshaped by military conflict.

China as a military power

Maritime Southeast Asian powers/kingdoms

The Iberian Powers ( Portuguese/Spanish)

The Dutch

Pax Britannica

Pax Americana

Temasek/Singapura/Singapore oftendefended as part of a larger entity


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Does military contestDETERMINE economic

power?

Conflict appears hand in hand with

geopolitical and TRADE issues.

Is TRADE always the motivator behindconflict?

What is the relationship between astrong economy and a strong military?


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Cycles of Trade andGlobalisation Trade is a key through which we can

see cycles of globalisation.

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18th Century -1st British Cycle

19th Century 2nd British cycle

20th Century American cycle

21st Century Asia? China? India?


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Temasek

A flourishingEmporium

Tapping into the

China-South EastAsia trade

Part of a wave of

maritime trade bySong and MingChina


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Singapura Part of the Melaka and Johor Sultanates

territory Sidelined as a four-way power struggle took

place.

Aim of the powers? To dominate the regionand CONTROL trade.

As the Dutch become the predominantpower, trade was redirected to the SundaStraits.


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Industrial Revolution

Origins in England

From an agricultural economy to amechanised economy

Demand for RAW PRODUCTS and forMARKETS in which to trademanufactured goods.

Became a driving force for Europeanpresence in Asia.


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Britishpredominance of thewaters.

Britishpredominance inworld trade (theEIC).

Liberal trade views

The British era of Globalisation

"Rule Britannia!Britannia rule thewavesBritons never, never, never shallbe slaves.Rule BritanniaBritannia rulethe waves.Britons never, never, nevershall be slaves."


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Singapore

1819

Part of the East India Companysexpanding trade influence

Tapping into regional, West-East (andinternational trade)

Entrept trade, a free port.

Singapore grows in spite of thebankruptcy of the EIC.


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Singapore as a colonial portcity Singapore as aSTAPLE PORT Tin and Rubber Linked to the Malay

peninsula

hinterland. British interests in

securing Malayasnatural resourcesact as the force

behind thisdevelopment

Affected by the1920s GreatDepression?


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Post-colonial, newly independentSingapore

How to redefine Singapore

Loss of natural hinterland (Malaya)

Staple port replaced by: Export oriented industrialization

Shipbuilding/repairing

Financial and business services


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1960s-

Rapid economic growth TRADE as the engine for growth.

Drawing on old commercial links but

needing to create new specialisations.

No longer as dependent on staples a

diversified economy: manufacturing,financial and business services.

Tough labour laws to ensure stability.


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Rubber and petroleum still remainedas staple exports. Refineries.

The volume of shipping (under the

Port Authority of Singapore) doubledin the 1970s and almost again in the1980s.

Oil tankers and oil bunkers. Air transport, financial investment,

tourism, shipbuilding


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Social impact of the neweconomy

New nature of trade transformedSingapores urban development.

No longer a coastal port city butwidespread urban development, withsatellite townships.

Education??? Focus ontechnical skills, sciences,finance, IT. Education drivenby economic priorities.

Productivity, community-mindedness given priority.


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A more recent reflection? Economic growthat all costs?


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Shipping and air hubs

Multi-nationals and foreign talent Capitalizing on new technologies

Singapore as the destination of foreign

direct investments (FDI) and also asource of FDIs to other countries.

Operating within both a regional and

international economycontinuity orchange from the past?


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Concluding thoughts andQuestions Patterns of trade (and globalisation) are a

significant factor in determining the way thatSingapore has developed.

Cycles of trade allows us to view Singaporeshistory in the Longue Duree (over a longer-period).The same can be said of cycles of conflict.

Singapore has evolved from an emporium,entrept port, staple port to a global city with sea

and air hubs.

How has Singapore balanced global and regionalforces? And how will it do so in the future?

ssa2211 lecture 9 the economy

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