Economic development and the distribution of land rents in Singapore: A georgist implementation

Abstract

Independent Singapore, which has a tradition of free trade, has implemented large doses of Henry George's prescriptions. It has successfully captured land rents for redistribution through its land acquisition, public housing other programs. These policies have been instrumental in the successful economic development of the island city state. Industrial estates on state-owned land were leased to foreign multinationals for export-oriented manufacturing which created the bulk of jobs in the sector. Commercial developments are built by the private sector on land leased through the government sale of sites program. Affordable 99-year leasehold housing, built by the state, provided added economic incentives for employment, and helped keep inflation and wages down. Private motor vehicle ownership and usage are heavily taxed. While land-related policies have improved international competitiveness and wealth distribution generally, particular aspects have generated wipeouts and windfalls in an almost lottery-like manner. George would have approved of the former but not the latter. Apart from the horizontal equity issues of selective taxes, selective subsidies and partial takings, successful land value capture has contributed to large and persistent budget surpluses with implications for inter generational equity. The progress which Singapore has made from the poverty of the 1960s represents an excellent case for the ideas of Henry George.