The pace of change has outstripped the ability of those at the bottom to keep up. We have witnessed greater economic volatility, and a more uneven distribution of the fruits of growth, over the last decade. For households whose incomes have been stagnant or grown very little, the lack of opportunities may already have had an impact on the next generation, slowing social mobility and possibly widening the gap between the haves and have-nots further. How should Singapore reformulate its social compact to address these problems?
One view is that Singapore should expand its social safety nets and makes it more inclusive, covering not only those at the bottom but also a wider segment of the population, while eschewing a policy of economic growth at all cost. Another view is that Singapore cannot afford to de-emphasise economic growth and calls instead for more targeted approaches to lower the costs of housing and healthcare, and make continued investments in education and skills upgrading, to build a more inclusive society.
Professor Tan Khee Giap of the Lee Kuan Yew School of Public Policy for one has argued: “The question is not whether Singapore’s GDP has expanded too fast, or if growth has been pursued at all costs. Regardless of the growth quantum, government agencies should better manage anticipated infrastructure demand, identify and understand the types of jobs being generated, the suitability of skill sets required of the local workforce, while forecasting better public housing needs, providing affordable and accessible health care and sustaining an environment for a bigger population. Globalisation and inclusive growth are not mutually exclusive.”
This IPS closed door discussion, which will be a part of the follow-up from the IPS 2012 Singapore Perspectives conference on inequality, will provide Professor Tan an opportunity to further develop his arguments. Mr Yeoh Lam Keong, Vice-President of the Economic Society of Singapore, will be the discussant.