Singapore is often cited as the global benchmark for economic reform that has lifted a small island nation, from the world's poorest countries to a world leader. Once a part of the British Empire, then the Malayan Federation, from which the island was expelled due to the fact that the Chinese held a dominant position in business, Singapore now far surpassed both countries in terms of per capita GDP.
History of success
This territory has the freest economy in the world, with virtually no corruption and low unemployment. The path to success was difficult and hardly repeatable by other countries of the world, since few would be allowed to use the "Bolshevik" methods of achieving success.
After gaining independence, the country remained with a small domestic market and the hostile attitude of the former metropolis. Then a policy aimed at attracting foreign investment, the growth of export industries and state-owned companies in strategic sectors was adopted.
This allowed Singapore to reach 41 places in the world in terms of GDP of Singapore, which is a huge achievement for a small country. Prime Minister Lee Kuan Yew - the author of this strategy, which led to the country's success, is considered one of the most successful statesmen in the world. As he wrote, he almost by hand brought the first global corporations to Singapore, sometimes spending hours in the waiting rooms of their executives. And now, more than 3, 000 global corporations are working here.
Development model
Singapore is an example of the best use of geographic location. Located at the historic crossroads of the sea crossing, the country began to develop oil refining to supply its neighbors with its products. Now this small island is the third center in the world for the processing of oil products, without having any of its hydrocarbon deposits.
Services related to maritime transport (logistics, insurance, financing, warehousing and storage, re-export), as well as tourism and leisure, occupy about 70% of Singapore's GDP.
The country annually receives 6-8 million tourists, with a population of 4.5 million. Most of its citizens directly or indirectly participate in entrepreneurial activity and more than 75% own shares in various enterprises.
The state is one of the most friendly to small businesses, more than 25% of Singapore's GDP is created in this sector. The developed business infrastructure, excellent financial, tax and legal systems, together with the stability of the political system, have attracted several thousand corporations to the country.
Some macroeconomic indicators
The country showed steady economic growth for 39 years at an average of 8% per year, from 1960 to 1999. After the global financial crisis in Singapore, GDP growth was uneven - from minus 2% to 9.9%, which was mainly due to emergency situations from the fall in demand for electronics to the SARS epidemic. But still, the economy, for the most part, was growing.
Between 2010 and 2016, Singapore's GDP grew by more than 25%. Foreign trade provides the bulk of state revenues, the country took 13th place in the world in terms of exports and 16th in terms of imports.
The unemployment rate has long been at 2%. Inflation over 7 years was less than 3%, and in recent years, prices began to decline: in 2015 - minus 0.5%, and in 2016 - minus 0.3%.
Singapore ranks second in the world in terms of financial market development. The strengths of the banking system are the availability of credit and the stability of the banking system. About 700 financial organizations operate in the country, including 122 banks, including 116 foreign ones.
