THE NATURE AND EFFECTS OF GOVERNMENT INTERVENTION AND PLANNING IN THE SINGAPORE ECONOMY

Abstract

This academic exercise seeks to investigate the nature and effects of government intervention in the Singapore economy, particularly in the areas of economic planning and resource management. In particular, the focus is on areas where the government is believed to have ventured beyond the usual and traditional functions of the state as expounded in economic theory, that is, into the 'grey' areas of intervention. Earlier studies, focussing on the economic success of Singapore over the past two decades, have tended to view the government's involvement in a favourable light. The recession that made its first impact in 1985 has, however, led to serious rethinking of some of the government's economic policies. This has shed new light on areas of intervention which may have been excessive but not previously realised. This study therefore attempts to present an updated insight into the role of the government and arrive at some plausible policy implications. The approach shall be evaluative in character. Since much of planning practice and policy formulation involves motives and factors beyond the domain of pure economics, the evaluation inevitably involves some degree of merger into the realms of politics and sociology. This is further necessitated by the conviction that "development" should extend beyond the economic, to encompass such factors as quality of life and social and psychological well-being.