I had the honour of listening to one of our ministers speak on the theme of “Singapore in 2008 & the Way Forward” during one of the school events I attended today.
While generally informative, I could not help but pick up on a point raised by the minister. The point in question was put forth by the minister in response to a question by a student on whether the government has been adequate in its efforts to help the poor in our society deal with rapidly rising costs of living. Admittedly, it was one that is rather cliched and belaboured, but I think it’d be appropriate for me to address it here in order for me to bring out my stand on the greater issue.
Essentially, the minister argued that a welfare state is not the way to go for Singapore. To demonstrate what he means, he gave the example of USA; and the minister claimed that despite increased government spending over the past 20 years or so by the US government, it’d not be fair for us to say that the USA of now is anywhere better than the USA of 20 years ago. The minister then moved on to raise examples of how the Singapore government tries to help the poor in our society – for instance, the poor do not pay any income tax at all, and they only pay tax in the form of GST.
As usual, the minister also warned against the detriments of a welfare state – lower productivity, lower growth, lower incentive. And to prove this point, the minister gave the example of the Northern European countries (in essence, the Scandinavian countries), where he claims that teenagers in these countries are fully satisfied with their lives as it is now, and that they lack the drive to improve and to progress; because these teenagers are cognizant of the fact that if anything happens, they have the state to fall back on.
I am rather ambivalent on the pros and cons of a welfare state in general. One could easily argue both sides of the coin, and it’d be difficult to arrive at a conclusive evaluation at the end of the day.
However, in the context of Singapore, I feel that the government could perhaps take up a larger role in assuring citizens of their basic welfare. This is not to say that Singapore should institute a welfare state. This is to say that the government could increase government spending in terms of helping the lowest strata of society, i.e. the poor, the elderly, etc.
The government’s budget for FY2008 sets aside $91.4 million for the needy, $86.1 million for juvenile delinquents and vulnerable families, and $44.5 million for the elderly and the disabled. Out of a budget amounting up to $39.84 billion dollars, the Singapore government intends to spend some $222.3 million dollars on the needy, the juvenile delinquents and vulnerable families, and the elderly and the disabled. In other words, the Singapore government spends 0.005% of the FY2008 budget on welfare schemes aimed at helping the needy and the poor in society.
Just to clarify, I do not fully trust that the above statistics are wholly representative of the full scope of the government’s efforts (I am sure I’ve missed some other things out); nonetheless, I think we can generally agree that the government adopts a rather minimalist approach when it comes to protecting the welfare of its citizens, especially when compared with Western liberal democracies.
Fair enough, the government has various schemes in place, the most representative of them all should be the CPF. But I am saying something stronger than just legislating citizens to channel a certain proportion of their income into funds meant for their retirement and medical treatment in the future. I am saying that the government should take the initiative in providing a greater level minimal welfare, probably in the form of monetary assistance, to the poor in our society.
Let’s face it. With the costs of living increasing so sharply, I think it is only fair that the government ups the amount it spends on helping the poor such that the poor receives sufficient assistance to ensure basic survival despite high costs of living. After all, given that the government’s purpose in spending money on welfare schemes is to help the poor and needy in society, if the government truly wishes to help this group of people in society, then it’d only make sense that the government adjusts its spending on related schemes in response to the costs of living rocketing.
Furthermore, I don’t think it’s fair to claim that the poor bear a lesser burden of taxes since the government doesn’t mandate that they pay income tax and they only have to pay GST, so the government has actually done enough to help the poor and needy in society. Any person versed in the fundamentals of macroeconomics would tell you that the GST is a regressive tax, and it harms the poor more so than the rich. If you think about it carefully, the poor would tend to spend a greater proportion of their income paying GST, as compared to the rich, especially if you consider that the poor are only able to afford basic necessities for which the GST is not absorbed, whereas the rich are able to afford luxuries for which the GST is usually absorbed.
These are only the rudimentary points which I can really come up with, and it’d be possible for one to go on and on with an endless list of criticisms which can be thrown at the government for not doing enough to help the lower strata in society.
For me, however, the issue of whether the government is doing enough to help the poor and needy in society fleshes out a larger issue at hand – does populism have any place in our society? I suppose when considering the extent to which the government should provide for the lower strata of society; I conceive a possible scenario in which we could witness significant differences between “the people” in the lower social classes and “the elites” in the higher social classes.
This is a question that I’ve been considering for a long while now. I’ve settled on a reasonable conclusion, which would be that populism is enjoying a greater role in our society. What do I mean?
If you simply consider the phenomenon of elitism in our society, populism can claim a even greater role in our society than ever before. Putting aside the debate on the causes of elitism in our society, the perception that the formation of an elite class is on-going is likely to create the image of a polarised society, where we have, on one end, “the people” versus “the elite” at the other end. By typifying certain groups of individuals in our society as “the elite”, I suppose the rest of society, which would probably consist of the lower middle class, the lower class and the working class, is able to reinforce the idea that there actually exists a class of elites in society. This creates a positive environment for the seeds of populism to be sown, and for the flowers of populism to bloom. It does not help either that our society has been experiencing increasingly severe disparity in incomes between different social classes, and this has probably contributed to a general atmosphere of discontentment and disillusionment amongst “the people” with “the elites”.Already, we see tensions between the so-called “people” and “the elites” in our society, particularly in the Wee Shu Min saga which was particularly publicised.
It is my opinion that the government has no interest in fostering any sort of populism in society. After all, go out on the street today and the lay man would tell you that he or she sees the government as part of “the elite”. Perhaps not so much in the past, but in the aftermath of the ministerial pay raise, I would think that more and more people are beginning to see the government as an “elite” institution. To promote populism in our society could be the equivalent of political suicide for the government. If the government were to indeed adopt a more populist tone, it would only harm their chances for re-election especially when “the people” become more cognizant that the government belongs to the class of “elites” and that “the people” would not want a group of “elites” to rule them.
Furthermore, a greater populism in society by the government would encourage the opposition to adopt a more populist tone to seek out popular support by “the people” against “the elites”. In this case, it could even be possible that greater populism in the Singapore society would encourage greater political vibrancy and diversity.
Of course, I do not believe that we should practice an extreme version of populism that perhaps suggests a violent revolution or coup. I do believe, however, that a measured degree of populism would do more good than harm for the Singapore society.
For one, I think greater populism would involve more of the lower strata of society to be more engaged in politics. When political parties make themselves out to be representative of the interests of the working class, I think it would be in the interests of the working class to listen to what these parties have to say and to decided on which parties to vote for keeping in mind the various policies advocated by the different political parties. You could even say that when political parties adopt a more populist tone, the group of individuals in society which see themselves as “the people” could find a sense of belonging to a common cause, and this is a good thing because a democracy is a functional one when it manages to involve the diverse interests and perspectives of the people. This is what I’ve mentioned above when I pointed out that greater populism could make politics in Singapore more exciting.
I suppose a greater populism could also create the incentive for the government to adhere more closely to the wishes of the people. Keeping in mind that a democracy is “by the people, of the people, for the people”, it only seems fair that a democratically elected government should do its utmost best in representing and pushing for the interests of the people. I think it’s fair to point out that the Singapore government has never shown itself to be afraid to diverge from the demands of the people when it deems such action necessary for the long-term interests of Singapore. Not that I find anything wrong with the government willing to bite the bullet when it’s really the best way forward; but I suppose that a greater populism would encourage the government not to recklessly opt for the unpopular but efficient way to do things and to take the wishes of the people more seriously. This would be a good thing for both the people and the government in general – the people get what they want, and the government has a better shot at being re-elected into power during the next elections.
The above two are only two such benefits, and I am sure there are more benefits that could be brought about by a greater populism in Singapore, but I have not had the time to think carefully about them. Perhaps I could raise them in a future post.
Ultimately, I suppose a greater populism is an inevitable reality that our society faces. The question then is this: do we embrace it or do we reject it? My stand is that we should embrace a measured degree of populism, because I believe that it would bring about greater benefits than detriments.