I'm answering this as an Indonesian. You can easily observe the gap between Singapore and Indonesia with a quick 45-minute ferry ride.
The imaginary line created through the 1824 treaty between Great Britain and the Netherlands established the historical border between Indonesia and Singapore. This treaty divided the Malacca Straits region into spheres of influence between the two colonial powers. These divisions gave rise to distinct systems in the respective areas, defining the nature of the two states.
Singapore is consistently ranked among the best places in Asia for quality of life, being safe from crime, corruption-free, and an economically liberal country. The Singaporean government has invested significantly in health, education, and infrastructure, making it an attractive destination for settlement and business activities. Singapore's economy has evolved into a highly developed free-market economy, renowned for being pro-business, ranking as the 4th-least corrupt, and maintaining low taxes. As a result, it now boasts the highest per-capita GDP in the world in terms of purchasing power parity (PPP).
Meanwhile, Indonesia has a moderately low ranking. Currently, it holds the 116th position in terms of quality of life with a score of 0.694 out of a possible 1. Indonesia's quality of life is comparable to that of Egypt, Bolivia, Vietnam, and South Africa. As one of the emerging market economies globally, Indonesia relies on the domestic market, government budget spending, and its ownership of state-owned enterprises. Since the 1990s, a majority of the economy has been controlled by individual Indonesians and foreign companies. Additionally, Indonesia was ranked 110th among 180 countries.
The reason Singapore has excelled in prosperity is:
- Pragmatic leadership, spearheaded by Lee Kuan Yew and his successors, played a crucial role in shaping Singapore’s development.
- Singapore has successfully kept corruption at bay, contributing to the creation of a clean and transparent business environment.
- Singapore's robust institutions and well-considered policies have not only attracted investors but also contributed significantly to its economic growth.
- Singapore's public sector has demonstrated efficiency and effectiveness in implementing policies and delivering services.
On the other hand, Indonesia faces challenges such as a large population, a young workforce, and a lack of focus on economic reforms. While Indonesia has been classified as a newly industrialized economy, Singapore is a highly developed, trade-oriented one. Singapore's success story is a result of its ability to adapt and innovate in the changing world, whereas Indonesia has struggled to keep up with the rapid pace of changes.
Reference:
No comments:
Post a Comment