Commentary: Why are some countries rich and others poor?

ALLOWING IDEAS TO FLOURISH

The third reflection is that Singapore must encourage innovation by allowing ideas to flourish.   

Acemoglu and his collaborators are strong proponents of democracy as the form of political organisation most compatible with inclusive institutions. It is debatable whether Singapore, with a government that some observers characterise as authoritarian, would fit their archetype of democratic inclusiveness. 

What may be most critical is whether Singapore embraces diversity of thought as the foundation of an innovative society.

Freedom of information inadvertently opens the door to misinformation and disinformation, which can have pernicious effects. For instance, anti-vaccine activists can undermine public healthcare by sowing doubts in people’s minds about the safety of vaccines.

The answer is not to shut down ideas or critics but rather to counter disinformation with access to information, transparency and public education. Building media literacy, in particular, will be crucial for the public to be discerning consumers of information.  

With Singapore reaching the limits of “catch up” growth by adopting technology and know-how from abroad, its next stage of growth will require more indigenous innovation and original thinking.

Like any other country, Singapore’s society and governance are not perfect. Singapore needs “loving critics” – in the words of veteran diplomat Professor Tommy Koh – to continue progressing as a society.

If we are to take away something from the work of this year’s Nobel economics laureates, it is that prioritising inclusive development and permitting ideas to flourish will be key to Singapore’s growth and prosperity in the years ahead.

Terence Ho is Associate Professor in Practice at the Lee Kuan Yew School of Public Policy. He is the author of Future-Ready Governance: Perspectives on Singapore and the World (2024).