Singapore turns 50

Singapore will mark half a century of independence on Sunday, August 9. But the Southeast Asian city-state of 5.5 million people already began its "SG50" celebrations on Friday. Museums are luring visitors with special exhibitions, and numerous other events are planned. At the center of this year's festivities are the nation's history and the unity of the multi-ethnic city-state, according to a government statement.

The main highlight will be a national parade featuring fireworks at the Padang, an open field located within the city center. Siegfried Herzog, head of the regional office of the German foundation Friedrich-Naumann-Stiftung in Singapore, is confident that the entire region will take notice of this important event. "Even though it is a small city-state, Singapore is seen by many as a role model, triggering both admiration and envy."

Independence in turbulent times

These mixed feelings are inextricably linked to the country's success story. Singapore became independent in 1965. Two years earlier, the city had merged with the Federation of Malaya alongside Sabah and Sarawak to form Malaysia. However, ethnic unrest and tensions with the parliament in Kuala Lumpur led to Singapore being excluded from the Federation on August 9. As a result, the city declared its independence.

At the time, the newly founded nation led by PM Lee Kuan Yew - whose death this March prompted a national outpouring of grief - faced enormous challenges, including high unemployment, ethnic tensions, lack of space and resources, water scarcity, and no army in a hostile neighborhood. The city-state had to re-invent itself and find its own political and economic place in the region.

The big boom

Analyst Herzog believes the government ultimately did a good job given its difficult starting position. "They asked themselves: What role can we play now in the region? What can we do that others can't?," said Herzog.

In order to tackle these issues Premier Lee began creating stable institutions and a functioning constitutional state, and setting the groundwork for the economy to grow. "Neighboring countries would need much longer to achieve this simply because they are made up of larger and more complex societies. A city-state is easier to govern," said Herzog.

However, Jan Seifert, Asia expert at the Hamburg-based GIGA Institute, has a different view. He doesn't believe in the myth diffused by PM Lee that Singapore was transformed from a "third world" country into an industrialized nation in just one generation.

Seifert points out that in the year of its independence, Singapore - with its key port - was already one of the richest cities in Asia and enjoyed a well-established British legal system. Given its multi-ethnic population, the young nation had access to the British, Chinese and Indian cultures and economies. But above all, its strategic position on the southern edge of the Malaysian Peninsula would turn out to be the decisive factor.

Analyst Herzog speaks in this context of "geography's gift." The city is located at the junction of the Indian and Pacific oceans, making it an ideal trading hub. "Singapore had great starting conditions for economic development," said Seifert.

And Singaporeans made the best of these conditions, as the country quickly joined the club of the most highly developed economies in the world. While per capita income in 1965 was just slightly above $500, Singaporeans earned an average of $60,000 last year, making them one of the wealthiest people in the world, according to the World Bank and International Monetary Fund.

Future challenges

Its location will likely allow Singapore to remain one of the world's most important trading hubs. But the country's future challenges don't lie so much in its economy, but rather in the rising cost of living, as many local newspapers point out. And this affects the older generations in particular, said Seifert. "The economic model is based on self-sufficiency, while the Western social welfare model has always been viewed as its ideological opposite," he added.

Although the so-called pioneer generation built the country after working for 50 years, they could barely put money aside given their low incomes. This makes life difficult for elderly Singaporeans now living in what has become one of the world's most expensive countries.

New ideas are needed to solve both this and other growing problems. Such ideas, however, seem to be lacking in a city-state where groupthink prevails, said Seifert. "Everyone thinks the same way. They think what they believe the ruling party wants them to think," said the analyst, adding that the city is lacking the creativity needed to endure as a developed country.

At the same time, this development points to a more basic political issue, said Herzog. Although in a more moderate form, Lee Kuan Yew's authoritarian governing style still prevails in the city-state. However: "The people want more political freedom."