berthahenson

Not a Hard Choice: Just read

In Politics, Society, Writing on April 30, 2014 at 2:12 pm

I finished reading Hard Choices by Donald Low and Sudhir V in one sitting today. Yup. It’s that grabbing. A bit cheeky to call it Hard Choices but it’s appropriate since it challenges some of the Hard Truths we’ve always been told about. It’s a quite balancing act for the authors who also include academic Linda Lim based in United States: They’re careful about not knocking the past too much; instead they maintain that the past might not be a good guide for the future. They are, as they say, challenging the consensus or rather, exploding some myths.
The authors acknowledge that policymakers have made adjustments by, for example, moving left of centre in social policy. One thing they couldn’t avoid saying: The policy of flooding the country with foreign workers over the past decade in the go-for-full-throttle economic growth era is to be blamed for some of malaise we face today: stagnant incomes in the lower ranks, low productivity because of access to cheap labour and pressure on housing prices which now need cooling.
For baby-boomers (and almost baby boomers like me), there was this interesting bit: Singapore’s strong reserves were built on the backs of this generation and it makes sense for the state to return some of it to the generation as it ages rather than find new ways of getting more out of the younger people.
At the risk of summarising, I think the key thesis goes something like this:
a. Some of the strongly-held political and economic mantras that helped Singapore to what it is today might not apply if we want to move forward. The “vulnerability’’ narrative, for example, has outlived its usefulness as an inspiration for most citizens while the vision of a “global city’’ might actually be pretty limiting. Why not try for a vision of a just and equitable city?
b. Rather than look at policies from a dollars and cents or economic point of view, why not look at them from the point of view of strengthening the social compact and social trust. Singapore, in the words of Linda Lim, is more than just its GDP. Citizen “well-being’’ is a better measurement of success than economic growth rates.
c. The G should rid itself of some mindsets such as contending that more welfare leads to an erosion of work ethic or automatically reaching for “co-payments’’ and “means-testing’’ and monetary incentives to achieve social policy goals. Rather, all citizens should be guaranteed a basic level of help, that is, go “universal’’ rather than hew to a targeted approach. Ensure one level, and then means-test for the rest. Also, most “welfare’’ approaches seem to be contingent on “employment’’. But what if people are involuntarily unemployed in these times of economic restructuring? What about wage loss insurance?
d. The trouble with sticking to past models and predicting the future based on extrapolations is that the system becomes rigid, inflexible – and late. Like the drastic imbalance in housing supply and demand in the past, or how more rail lines were needed far sooner than expected.
e. The country’s leadership is an incestuous one (that’s my phrase) populated with like-minded people thrown up through similar channels and reinforcing a group-think mentality. Because they had benefited from the policies of the past, they conclude that what had worked for them would work for future generations. That is, they are already “biased’’.
All in, the authors are calling for mindset change if Singapore wants to move forward. Some of the principles policymakers have held on to may no longer work. Higher income taxes do not necessarily crimp work ethic nor is a universal approach to welfare always accompanied by laziness on the part of the recipients. The view that housing is an “appreciating asset’’ needs to change since it’s so vulnerable to booms and bust and not easily “unlocked’’ as a retirement fallback.
They call on the G to have less of a stranglehold on public discussion and dialogue, contending that political openness is needed for ideas to flower and flourish. The book has some policy solutions or alternatives as well, some of which would be unpalatable to the G, like taking out the “political’’ element out of grassroots bodies, such as the People’s Association.
The Singapore of today, they argue, demands “equity’’ and “fairness’’.
I’m sure I’m not doing the book much justice at all. So why don’t you just go buy it and read?

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