Savings, capital formation and economic growth in Singapore.
The World Bank (1993) study on high performing Asian economies (HPAEs) has identified the factors responsible for rapid growth as 1) high saving and investment rate, (2) high and growing human capital formation, (3) rapid growth of exports, (4) prudent macroeconomic policies and management and (5) appropriate institutions which fosters government-private sector cooperation and creation of business-friendly environment. Of course, the above factors are not the only ones and neither any one of them can claim the entire credit of growth creation. In this paper we shall discuss how Singapore's experience in mobilizing its resources, both domestic and foreign, to create productive capacity to generate higher economic growth and development. The allocation of resources between present and future consumption (saving) is one of the most fundamental economic choices facing any economy. This choice affects not only the rate of economic growth of a country can enjoy, but also the standard of living for future generation yet unborn. (excerpt)