S’pore could help larger economies with challenges

I refer to the commentaries “China’s distortionary policies perpetuate dysfunctional growth” and “Why Modi goes for small-bang reforms” (Oct 23).

One noted the policy-induced disparities that cannot be fixed by the current gradual restructuring of China’s economy, while the other was about India’s small but smart moves forward.

The contrasting views appearing alongside each other made for interesting reading and provided a panoramic view of the challenges of political economy for larger nations in our neighbourhood.

Both nations have a massive labour force and average household incomes much lower than those of developed economies. But their Gini index, an indicator of inequality, is still encouraging.

Any growth model, trajectory and velocity should therefore be anchored around this.

In the past few decades, manufacturing and export-based growth sustained booms as the new mantra of globalisation and neo-liberal doctrines fuelled investment and policy choices.

At the same time, there have been winners and losers. So the bigger issue for developing nations in the 21st century is to seek a model that suits them and not one with merely the stamp of legitimacy.

Can Singapore, with its successes and resources, including the new S Rajaratnam Endowment, enable the region to think through this? (“S$100m endowment to deepen regional and international ties”; Oct 22)

The microcosm, represented by our little red dot, can possibly be a voice of reason, even while larger masses around us struggle to separate populism, ideology or even sheer emotive energy from constructive policy, governance and inclusive growth.