The Tigers...
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The Tigers
can show SA how to roar
to prosperity
The so-called Asian 'economic miracle' is the result of sound social and economic policies, writes SVEN LUNSCHE
THE government has been looking to Europe for economic role models, with the so-called social markets of Sweden and Germany widely aspired to by the leading ideologues within the ANC.
But ignoring the crisis faced by most of the European countries seeking a third way between capitalism and socialism, the Far East is teaching a more direct, simple and pragmatic lesson.
This view was eloquently espoused by Singaporean Prime Minister Goh Chok Tong on his recent visit to South Africa. In a speech to the Africa-Asia society, Goh highlighted "a few common threads" running through the successful East Asian economies (Singapore, Korea, Hong Kong, Malaysia, Thailand and Taiwan).
Goh stressed that "every country must find its own way", but gave some common guiding principles and policies for good governance.
Our guiding philosophy is that nobody owes us a living. We adopt a pragmatic approach to problem solving and have no ideological baggage.
The East Asian miracle is not a miracle. It is the result of political stability, strong social fundamentals and sound macro-economic policies.
Political stability and harmony are crucial for investment, especially those with long pay-back periods.
Good governance is built on three inter-related factors: accountable and transparent government, a long-term orientation and social justice.
To subject government to the discipline of free elections does not mean that government should become hostage to economic populism, or it will be impossible to take long-term decisions and administer the bitter medicine sometimes necessary for growth.
Every citizen has an equal opportunity to compete. We emphasise equality of opportunity, not equality of outcome.
An independent, honest, efficient and effective civil service is critical. Civil servants must not just be able to carry out political orders. They must be able to advise the political leadership to make the right decisions and implement politically sensitive changes.
The civil service is based on meritocracy, allied to integrity. We pay our leaders and civil servants well.
The East Asian tigers fostered an economic environment generally conducive to market-orientated activities.
Government has intervened to varying degrees in the East Asian economies, but this was often aimed at facilitating, not subverting, the market.
Most East Asian countries placed their faith in outward orientated policies with respect to trade and investment. They specialised according to comparative and competitive advantages and had access to international technology.
Outward-orientated development strategies focused attention on international competitiveness as a yardstick of economic success.
The successful economies were characterised by fiscal discipline which in turn allowed central banks to pursue non-inflationary policies.
East Asian countries saved more than any other group of countries in the world.
Education policy has to be closely integrated with the economic development strategy. To remain competitive we strived to increase productivity and instil the habit of life-long learning in our people.
Goh said Africa faced a more challenging future than East Asia in the 70s and 80s. "The external environment is far more competitive and less generous than when East Asia began to develop. For Africa, failure to adapt to the new global situation will not just mean slow growth and high unemployment, but economic backsliding, poverty, conflict and clashes," he warned.
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