Role of Government in Singapore

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Singapore was described by Olds and Yeung as a small country with limited land run by a resourceful and unified government. (Olds & Yeung, 2004). For instance, in 2003, the Singapore government was praised and respected for its efficient and transparent approach to dealing with SARS (Severe Acute Respiratory Syndrome) (Case, 2004). Weder and Brunetti believe that the growth of a nation is projected by the intensity of her political competition and democracy together with the dependability and excellence of her government institutions (Weder & Brunetti , 2000). As such, when the People’s Action Party formed the government of Singapore in 1959, Corrupt Practices Investigation Bureau (CPIB) was set up to prevent corruption so that its economies would function effectively. (Asher, 1994). With CPIB, the government was successful in positioning Singapore as one of the most corruption-free countries in the world in terms of the honesty of the country’s governance (Haque, 2004). Moreover, with regards to international negotiations, the policies and strategies that government embarks on are also influenced by the quality of institutions in the country (Hamilton-Hart , 2003). For example, after four years of negotiations, Singapore managed to sign a maritime boundary agreement with Indonesia in 2009 (Ganesan, 2010). Like most countries, the Singapore government is the main source and provider of infrastructures necessary for the country’s development and the creation of a safe and encouraging environment for foreign investment (Grice & Drakakis-Smith, 1985; Teo & Ang, 2001). Besides providing good infrastructure, the government also formed numerous institutions that were held and managed by the state for the purpose of development and growth of the nation (Haque, 2004). In order to attract foreign investment, the government not only created a favorable environment, they
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