development economics

Lee Kuan Yew: Founding “CEO” of Singapore Inc.

Victor Tan
 

Hello and welcome back! In this premium report, you’ll learn about Lee Kuan Yew, who in an alternate history could very well have become Prime Minister of Malaysia. But that was not to be, and he was the founding Prime Minister of Singapore instead. In this premium report, you will get to hear about his story and journey his legacy.

From Third World to First – An Economic Vision Realized

Lee Kuan Yew is revered as the founding father of modern Singapore, the man who transformed a tiny port city with no natural resources into one of the world’s richest and most developed nations. When Singapore became independent in 1965, its prospects looked bleak – per capita GDP was roughly $500, on par with countries like Ghana(review.brunswickgroup.com). Yet within a generation Singapore had vaulted into the ranks of high-income nations, even surpassing its former colonial ruler in prosperity. Under Lee’s leadership, the country’s GDP per capita grew almost 15-fold in real terms from 1960 to 2013(livemint.com). By the early 21st century, Singapore’s income per person exceeded $50,000 – higher than that of Sweden – prompting observers to dub its rise the “economic miracle”(review.brunswickgroup.com). This dramatic ascent, often called the Great Singapore Miracle, was no accident; it was the result of deliberate policies and institution-building that Lee set in motion.

Lee Kuan Yew served as Prime Minister for over three decades (1959–1990), during which he laid out an architecture for nation-building that would turn a vulnerable post-colonial city into a thriving global hub. He identified five key pillars for Singapore’s success: political stability, quality education, attracting investment, rising living standards, and strong security(nlb.gov.sg). 

Throughout his tenure, his government made strides in each of these areas. Lee built a stable, trusted government almost from scratch – a feat in itself given the turbulent conditions of the 1950s and 60s. He cultivated public confidence in Singapore’s institutions and future, often saying that the people’s trust and unity were vital ingredients of the nation’s success(exploringculturaldatablog.wordpress.com). Investors and citizens alike came to believe in the Singapore story, enabling bold long-term plans to take root. This bedrock of confidence allowed Lee to implement tough but forward-looking economic decisions that fueled growth for decades.

Meritocracy, Elitism and Technocratic Leadership

A core tenet of Lee Kuan Yew’s governance philosophy was meritocracy – the conviction that a country must be led by its ablest people, chosen on talent and performance rather than connections or race. “Singapore is a meritocracy. And these men have risen to the top by their own merit, hard work and high performance,” Lee declared in 1971, referring to the cadre of officials and professionals guiding the young nation(nas.gov.sg). He prided himself on assembling a “closely-knit and coordinated hard core” of top talent in government, stating that the fate of millions depended on the “quality, strength and foresight” of these key figures(nas.gov.sg). This emphasis on elite talent led to the recruitment of scholars and experts into politics and the civil service, turning the ruling People’s Action Party (PAP) into a highly educated, technocratic team. Lee himself would later reflect that his “greatest satisfaction” was “mustering the will to make this place meritocratic, corruption-free and equal for all races – and that it will endure beyond me.”(time.com)

But not all that was said about him was beautiful and rosy.

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Dr. Goh Keng Swee: Architect of Singapore’s Economic Miracle

Victor Tan
 

Sepupus, most of you who are reading this are probably aware that I am from Malaysia, and a subset of you are probably aware about the traumatic separation between Malaysia and Singapore.

If you have known me over the years, you may also know how I have wrestled with this complexity both in my existence as a Malaysian and in my interactions with Singaporeans, and in my later reading, reflection, and heightened understanding of this event.

In time, and upon reflecting upon the ties of kinship, trauma, and renewed kinship between our two nations, I have come into the realization that Singapore’s story is a story of transformation, renewal, not just of surviving but also of thriving – It is a key case study that any student of economics must be aware of if they wish to understand the importance of institutions, policies, and economic planning for securing the future of a country.

Most of you who know me in person further likely understand very clearly that I am a strong admirer of the Singapore story – not just the story of the country itself as articulated by Lee Kuan Yew, but also his book “The Singapore Story” in itself, which I have read from cover to cover three times by now, even as I now read his “From Third World to First” for the third time for a project that is coming up for Singapore’s Diamond Jubilee, SG60.

But you probably also know that I like to read beneath the surface – At least, I like to tell myself that I read beneath the surface, and therefore, I cannot discuss Singapore’s success without highlighting the role of one of its chief architects: Dr. Goh Keng Swee.

With that in mind, I am very proud to share with you this premium report below, accessible in full by our premium members or purchasable for USD10 over here, about the man behind Lee Kuan Yew and a sine qua non of Singapore’s economic success.

Introduction

When Lee Kuan Yew delivered the eulogy for his old comrade Dr. Goh Keng Swee in 2010, he declared that “of all my Cabinet colleagues, it was Goh Keng Swee who made the greatest difference to the outcome for Singapore” (pmo.gov.sg). 

Dr Goh is clearly from Singapore, but the fact that he was one of the chief planners of a nation that so sharply diverged away from Malaysia and became one of the most prosperous countries in the world in per capita terms is something that should give not only Malaysia but the rest of the world pause, as they contemplate the consequences of a grand natural experiment illustrating the consequences of institutions and policy formulation upon the fate of two countries that share in ties of kinship, but prioritize dramatically different things. (More on this in subsequent reports and posts) 

Indeed, Dr. Goh was the quiet powerhouse behind many of Singapore’s early triumphs – the economic architect who engineered the nation’s leap from Third World to First, the strategist who built up a credible defence from scratch, and the reformer who overhauled Singapore’s education system. 

A man of incisive intellect and steely pragmatism, Goh served as Prime Minister Lee Kuan Yew’s trusted lieutenant, often tasked with the toughest problems of government (pmo.gov.sg), combining scholarly rigor with an unflinching practicality to carry out the bold policies that laid the robust foundations of modern Singapore. 

This report explores how Dr. Goh Keng Swee set up Singapore’s economic base and key institutions, his interactions with Lee Kuan Yew (including Lee’s own influence and support), and the unique thinking and vision that Goh brought to the fledgling nation. It is a narrative of how one extraordinary man – perhaps one whom we could dub Lee Kuan Yew’s “hatchet man” for his role in executing difficult policies – systematically planned and built the structures that would support Singapore for generations to come. (Lee once said he intended to see that Singapore “will be here a thousand years from now. And that is your duty and mine” – a vision made attainable by the enduring institutions he and colleagues like Goh created(pmo.gov.sg).)

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