Industrial Policy and Green Growth in a Small Island Economy: The Case of Singapore

Year 2024, Volume: 4 Issue: 2

Saim Karabulut

https://doi.org/10.61192/indpol.1485611

Abstract

The concept of economic development, which is based on sustaining a welfare worthy of human dignity, has an important place in academic studies. In short, development economics, a branch of science that examines the processes of increasing the economic welfare of low and middle income countries, focuses on some fundamental questions. It focuses on basic problems such as the disparity in levels of development between countries or the state's role in development processes. This discipline has become even more important in the last hundred years. In other words, it no longer focuses only on increasing the level of welfare, but also on how to achieve and sustain environmentally sound growth. But can social welfare be increased without harming the environment, can major growth imbalances between countries be brought to a more equitable position, as well as promoting a way of life worthy of human dignity? Environmentally sensitive development has now moved from theory to practice. These practices have gone beyond voluntary efforts and continue to evolve into mandatory regulations day by day. The best example of this is the gradual transition to carbon emissions management by mandatory mechanisms based on the idea that voluntary mechanisms are insufficient. Sustainable economic policies are becoming increasingly important within these limits, revealing the necessity of development without conflicting with nature. Industrial policies are considered as an important instrument of economic development. Countries in transition from an agricultural to a postindustrial economy have implemented selective government policies. The importance of these policies was realized especially after the Second World War where they were used to repair war damages.
Dani Rodrik argues that the government's support for certain economic activities more than others indicates the implementation of industrial policies. Yülek (1998), on the other hand, defines these policies as incentives applied in countries' priority industrial areas. In the 1980s, with the rise of neo liberal economics, state intervention was tried to be reduced, but in the 1990s, the mainstream economy again turned towards industrial policies. During this period, general effective horizontal industrial policies were preferred. However, further research has revealed the importance of extensive state intervention in the success of East Asian countries. In 2000s, the need for active industrial policies for late industrializing countries was highlighted. Nowadays, the issue of how to design and implement industrial policy has become important.The global economy is experiencing a transformation with the paradigm of sustainability and green growth emerging. The transformation brings significant opportunities alongside its challenges for countries. At this point, the study examines Singapore as a case study, which is an excellent lesson for countries at all stages of development that take advantage of the opportunities of green economic transformation.
Singapore's development journey serves as a significant example in development economics. Despite limited natural resources and geographic constraints, Singapore has achieved notable success through innovative industrial policies and green growth strategies. By analyzing Singapore's economic development, policies, and strategies, this study aims to provide valuable insights for other economies. Singapore's experience highlights key lessons for achieving sustainable growth and implementing green industrial policies, focusing on leadership, state involvement, and adherence to national and international commitments.Through both quantitative and qualitative analysis, the study illustrates Singapore's successful development since its independence in the 1960s, highlighting its management of green policies within the context of green growth. The analysis is based on a case study, compiled and evaluated through literature studies and key indicators included in the scope. This article is extracted from my master's thesis entitled "Industrial Policy and Green Growth in a Small Island Economy: The Case of Singapore," supervised by Prof. Dr. Murat Ali Yülek, completed in 2024 (Master’s Thesis, OSTIM Technical University, Ankara, Turkey, 2024).

Keywords

: Developmental Economics, Developmental State, Green Economy, Industrial Policy, Singapore, Sustainable Development

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