Keynote Address By Prof Michael Sherraden At The International Consortium For Social Development

Fifty Years Of Social Innovation: Reflections On Singaporean Social Policy

Singapore is a relatively young and very tiny nation, but it has some of the most innovative social policies in the world – in asset building, housing, racial/ethnic relations, health care, community design and organization, support for low-income households, and other areas. While economic policies are usually credited for Singapore's remarkable development, social policies have also played an important role – in some ways a greater role. This lecture reflects in a particular way on Singapore's history and development as a young nation, still only 50 years old.

During this period, Singapore has been an intense social laboratory, testing distinctive innovations, abandoning failures and expanding successes. Singapore learns from other countries in a very practical way, adjusting policies to fit local circumstances. The most comprehensive social policy in Singapore can be described as asset building, by transforming the colonial era Central Provident Fund into a comprehensive social policy – now used for housing ownership, insurances, aspects of medical care, and investments, in addition to the original use of CPF as retirement security. In other words, Singapore has focused on building wealth and housing stability across the population, even while being quite stingy – compared to other nations – on income support. This asset-building strategy has made Singapore distinctive, with a homeownership rate over 90 percent, perhaps the highest in the world. Most low-income families often own their flat and, with appreciation in home values, most have positive net worth – compared, for example, to the bottom quintile by income in the US, where average net worth is negative. While no country as embarked on asset-building across the population to the same extent, other countries are now exploring elements of such policies. As always the key will be in adapting policy concepts to fit particular national circumstances, values, and opportunities.

In part because of its geopolitical context, Singapore has not actively communicated social policy formation or outcomes on the international stage. Viewed from abroad, social policy formation in Singapore is typically attributed to it being a small and authoritarian country, and this is in part correct. However, the formation, content, and impacts of Singaporean social policies are poorly understood. For example, in the United States, more is known about chewing gum restrictions than about the Central Provident Fund. The reality is that Singaporean social policy has been highly creative, focused on practical solutions, and in systematic ways attentive to the population. Social policies can never be perfect – tradeoffs are always involved – but overall Singapore has made thoughtful and effective choices. Given these successes – and given Singapore's current level of development, stability, and standing in the world – it is appropriate for Singapore to engage more directly in international assessments of social policy. During the next 50 years, Singapore will be a not-quite-so young nation, surprisingly mature for its age, adding its social policy examples to global inquiry and discussion.

Recently, for example, Deputy Prime Minister Tharman Shanmugaratnam has discussed Singaporean race-relations policies – which are in many ways successful – in international settings, and picked up by social media and the international press. This occurs during a time when the United States and other nations are struggling with racialized violence. This discussion, while never easy, is much needed on the world stage, and has the potential to contribute to more proactive policies for racial harmony. As another example, saving and asset building by children and youth is a rapidly growing concept around the world. Singapore's Baby Bonus and Child Development Accounts provide the most comprehensive example of asset building starting from birth, from which other countries might be able to learn.

Building these social policy relationships matters. Singapore will join in stronger partnerships and problem-solving beyond its borders, and expand its opportunities to learn more from others. In the process, there is real potential to strengthen both Singaporean domestic policy and international standing and stability.