Letters

From the February 1997 issue

(Page 2 of 2)

Christopher Lingle ("Communitarian Capitalism," October) takes issue with two recent surveys by the Heritage Foundation and the Fraser Institute which ranked Singapore number two in terms of minimal government economic intervention. To support his claim that Singapore is an emerging form of autocracy, Lingle relies on factual inaccuracies and fallacious arguments. Lingle is wrong in claiming that international banks in Singapore are prohibited from collecting deposits from Singapore residents. The fact is that foreign banks in Singapore command a 40 percent market share of resident non-bank deposits in Singapore.

Lingle's statement that "the Monetary Authority of Singapore has consistently intervened in foreign exchange markets to control the exchange rate and to influence interest rates and inflation" shows his ignorance of the role that central banks all around the world play.

Similarly, Lingle conveniently ignores the many mandatory old age savings' schemes that are in place elsewhere in the world when he takes issue with Singapore's compulsory pension scheme, the Central Provident Fund.

Lingle's suggestion that business licenses are or can be revoked arbitrarily is absurd. He ignores the fact that Singapore's business environment has been highly rated by many international business surveys.

Lingle's penchant for distorting the facts is clear in his statement that "there is an overriding moral corruption in the administration of 'justice' by jurists who are only too eager to carry out the bidding of the ruling People's Action Party." This does not square with assessments of Singapore by international ratings agencies. The World Competitiveness Yearbook of 1996 ranked Singapore fourth in the world and best in Asia in terms of public confidence in the fair administration of justice. Similarly, on the rule of law, the Global Competitiveness Report 1996 ranked Singapore the best in Asia and eighth in the world.

In short, Lingle has made unrestrained allegations based on partial facts, mistruths, and fallacious arguments. His credibility and integrity as a scholar are therefore in question. Jean Tan First Secretary Singapore Embassy Washington, DC

Christopher Lingle responds: Ms. Tan suggests that "foreign banks in Singapore command a 40 percent share of resident non-bank deposits in Singapore." This deliberately obtuse statement overlooks my original point. Foreign banks cannot compete with domestic banks for accounts denominated in Singapore dollars, such as checking deposits used for domestic transactions. The deposits she refers to are denominated in international currencies.

The point of Ms. Tan's remarks about the role of the Monetary Authority is unclear. Indeed, most central banks act that way, and other countries do have mandatory pension schemes. That does not vindicate Singapore or undermine my argument. My point was to show that the government of Singapore has a more extensive hand in the economy than is suggested by the economic freedom ratings. Singapore's Central Provident Fund controls about 40 percent of total earnings, and there is no outside independent evaluation of how those funds are used.

The misleading impression of economic freedom in Singapore is based on treating the international sector differently from the domestic sector. For the most part, the rule of law is applied assiduously when the interests of international business are at stake. This provides a superficial impression for outsiders that all is well. However, the absence of individual and civil rights means that citizens have few freedoms. This dualism is supported by a lapdog legislature, compliant courts, and a muzzled media.

To defend my own claims, I can cite various organizations that specialize in assessing judicial proceedings (e.g., the New York Bar Association and various human rights organizations) who have criticized the arbitrary application of the law in Singapore.

In attempting to discredit my views, Ms. Tan impugns the integrity of some of Singapore's own institutions. I was hired by the National University of Singapore on the basis of my academic record, and was interviewed personally for my appointment by the former ambassador to the United States, Mr. S.R. Nathan. Apparently he found my credentials to be in order when he recommended that I be hired. My credibility and integrity were not challenged by anyone in Singapore's higher education community or its foreign service until I voiced my opinions about their repressive regime.

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