Month: October 2014

The need for a new welfare capitalism

This piece takes a step back from empirical work and invites the reader to join me in a bit of conceptual exploration, on the way goods and services are produced in a modern economy like Singapore’s, and the institutions that support those people who work to produce those goods and services.

To Singaporean ears, the term “welfare state” epitomizes all that is wrong with the decadent West: a state which saps the industry and drive of its people, rewards idleness and irresponsible fecundity, and yet delivers unemployment, crime, a breakdown of the family unit, and all that at far greater cost to the taxpayer than the Singaporean system. By contrast, we value work so much that we have neither a minimum wage nor an unemployment insurance. We value family solidarity, so we require those in need to turn to their family first—even to the extent of legislating a requirement for children to care for their elderly parents.

But defenders of Singapore’s system neglect a few vital facts. The foundations of our social institutions were laid down when our population was much younger and the occupational structure of our economy was less skill-intensive than it is today. The demographic dividend paid off by keeping healthcare costs and demands on the health system low. Meanwhile, it was possible for (largely healthy, young) workers to switch jobs and sectors in a relatively low-skill economy if they were made redundant. Jobs were fungible and it was a workers’ market in a long boom era of near-zero unemployment. If one were looking for empirical confirmation, I suspect that the CV of a typical 55- or 60-year-old worker nearing retirement today shows a surprising amount of diversity and adaptability in occupational choice.

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Protest movements and generational politics

“I can’t keep calm because Hong Kong is dying.” I’m sympathetic to Hong Kong’s student protestors, who are doing what their leadership has failed to do—press China to respect the self-determination that it promised Hong Kong. And it strikes me that should Hong Kong’s democratic movement succeed, many of its people’s concerns, like public housing and retirement adequacy, will make Hong Kong much more leftist than China is today. But that is not something I can usefully write about.

In keeping with a long tradition of comparing Hong Kong and Singapore, I’m thinking about the difference between the Occupy Central movement and this weekend’s widely-condemned Central Provident Fund (CPF) protest, and how it sheds some light on Singapore’s politics. Of all the ways that the two movements differ, one stands out: Occupy Central is driven by young people, while the CPF protestors are overwhelmingly old people. I think that has implications for politics in Singapore.

From the coverage of Occupy Central in the media like SCMP and BBC, it’s struck me that the vast majority of interviewees are in their 20s and 30s. I’ve read several cases of young people defying warnings from their parents. Even senior high school students are attending the protests. And it must be a typo, but SCMP reported that “13-year-old Matthew Chau” was smarting from the tear gas. Meanwhile, the mainstream pro-democracy leadership seems to be scrambling to keep up with the momentum. Though middle-aged protestors do exist, disapproval seems concentrated among the older generation, with a few isolated reports of anti-protest actions (for instance, the update from 11.40am on Monday on this live feed). The comparison in Singapore is the scrutiny over the NUS Student’s Union finances, but even that’s all been conducted by keyboard warriors, and I can’t tell if the vast majority of students care. You’d have to go back to the 1960s to find comparable student mobilisation in Singapore.

The news out of Singapore is that there was a confrontation between a Return Our CPF rally and a YMCA event held at Hong Lim Park at the same time. Accounts of what happened are confused and partisan, but it seems that the CPF protest set up its equipment at an area different from the one they were allocated, and following either innocent or malicious miscommunication, decided to march towards the YMCA event. This confrontation frightened a group of special-needs children who were about to perform at the YMCA event. Everyone and their grandmother will have something to say about what happened. Clearly, since I wasn’t there, I can’t do that, which is why I’m reflecting on a different aspect of the event. (more…)