Development Of Small Countries

Singapore, Luxembourg, Hong-Kong, Israel: Examples for Development

Ismail Yurdakok [email protected]

Luxembourg is a country that oil, natural gas and coal should be imported and we may say no natural resources but a per capita (GDP) of $ 81,000 (2008) that one the highest countries in the world. Area: 2,586 sq.km;(half of Brunei’s land) billion (2008)

Population: 462,690;

GDP: $ 40

Since the second half of the 19th century, Luxembourg industry has developed spectacularly, owing to the rapid growth of the steel industry, the development of which is at the basis of the prosperity and high standard of living which Luxemburg enjoys today. SCIENCE (Innovation,Technology) Is Very Important FOR DEVELOPMENT In 1876, English metallurgist Sidney Thomas invented a refining process that led to the development of the steel industry in Luxemburg and the founding of the Arbed company in 1911. Heavy industry, developed with a considerable influx of German capital. Overrun by Germany in both world wars, Luxembourg’s neutrality ended in 1948 when it entered into the Benelux Customs Union and the country became one of the six founding countries of the European Economic Community (and then EU), and in 1999 it joined the Euro Currency Area. Until the dawn of economic crisis in 1974/75, Luxembourg was all characterised by the pronounced monolithism of steel. In 1974, even though efforts had been made towards industrial diversification since the start of the 1950s (however, it was only with the framework law on economic expansion of 1962 that the diversification movement gathered pace. Since this time, diversification has become an ongoing economic policy objective), the steel industry still easily held sway over the industrial sector and even the economy as a whole. In the 1960s, all the industry sectors together (apart from energy and construction) generated almost half the value added of the economy, with steel alone accounting for 30%. ONLY IN A SINGLE DECADE This fundamentally unbalanced situation evolved dramatically to Luxembourg’s disadvantage following the first oil crisis, which marked the start of the structural crisis in the Luxembourg steel industry after 1974/75. The substantial increase in the energy bill and the existence of a large amount surplus capacity laid bare a steel industry infrastructure which was too old and too intensive in energy and labour factors. Since then, the Luxembourg economy has undergone radical exchange from an industrial to a services economy. The transformation

occurred almost in a single decade since 1974. In 1992, the share of services in gross value added of the economy was 59.2%, whilst industry only still accounted for 17.7 % of GDP (4.3% for the steel industry alone). In fact, the industrial decline is attributable to steel alone. The other industries were able to maintain their relative share in GDP. The industrial decline is also linked to the phenomenon of the externalisation of services, i.e the displacement of certain services, such as accountancy, computer services, tax and legal consultancy, etc., from industrial undertakings to specialized undertakings of tertiary sector. The biggest group within the service sector is “various services”, which contribute 63.4% of GDP. Banking and insurance accounts for 23.4%, just ahead of commerce, hotels and restaurants and transport, which together account for 22.8% of GDP.(2003) TOO SMALL TO

ABSORB, THAT’S WHY: EXPORT

With the decline of the steel industry and under the impetus of the diversification policy,a second sphere of industrial activity started to develop, comprising the chemicals (Du Pont), rubber (Goodyear) and plastics (and artificial fibres) industries, mechanical engineering and vehicles construction and food production. Also non-metallic minerals sector has gained increasing importance, especially during the past decade,with the development of the glass industry along side the more traditional ceramics industry. Although Luxembourg is aptly described as the “Green Heart of Europe” in tourist literature, its pastoral land coexists with a highly industrialized and exportintensive economy. The Luxembourg productive system focuses mainly on the production of goods for export, the internal market being far too small to absorb the produce of local industry. Traditionally, industrial exports consisted of intermediate products and semi-products,with the proportion of products reserved for final consumption being relatively limited. It is only recently that there has been a significant increase in end product in exports. Luxembourg has recently been more successful in diversifying its economy,which has enabled it to become more resistent to economic fluctations affecting key sectors of the economy. FOREIGN

INVESTMENT

Luxembourg offers a favorable climate to foreign investment. The policy of governments have effectively attracted new investment in medium, light, and hightech industry.Incentives cover taxes,construction,and plant equipment. The recent European Union directive on services supplied electronically has caused a number of companies to look to Luxembourg, with its relatively low value added tax rates, as a possible location for directing their European operations. $ 67 BILLION OF U.S INVESTMENT U.S firms are among the most prominent foreign investors. Total U.S direct investment in Luxembourg (on a historical cost basis) was nearly $ 67 billion at the end of 2003. (We will see below,also total U.S. investments in Singapore stand now at $ 61.4 billion) Foreign direct investment data for Luxembourg must be interpreted cautiously, however,because of Luxembourg’s role in financial intermediation,particularly involving Luxembourg-based holding companies. FOURTEEN THOUSAND HOLDING COMPANIES

Approximately 14,000 holding companies are established in Luxembourg, that’s why construction sector is very active. Representing 5.5 % of gross value added, construction is the third most important branch of the economy. It continues to profit from the arrival of new industries, companies, and the subsequent demand for office and living accommodation. It is also benefiting from plans to develop the road and motorway network as well as other state infrustructure projects. INTERESTING Although Luxembourg is a landlocked country, following the establishment of a Luxembourg maritime shipping register in November 1990, which is considered a second Belgian register, approximately 70 oceangoing vessels fly the Luxembourg flag. TECHNOLOGY RECEIVES STATE FUNDING Under its almost 30 year old diversification policy, Luxembourg has successfully attracted hi-tech firms.The Société Européene des Satellites (ASTRA Satellites) is highly competitive firm. Companies that focus on research receive state funding.

SINGAPORE Singapore is (also like Luxembourg), has not got any natural resources, no oil, no natural gas, all of the electricity production is from imported fossil fuel. The majority of the island is covered barren lands, and only 13 % of the land is cultivated. But with moderm agricultural methods, the half of the cultivated lands of the country was transformed the most productive and fertilest soils of the world. The other problem for Singapore is the limited natural fresh water resources that the majority of water is taken from Malaysia. Exports: $ 342.7 billion (2008) (machinery and equipment (including electronics),consumer goods,chemicals) Imports:$ 303.1 billion (machinery and equipment,mineral fuels,foodstuffs) Per capita: $ 51,500 GDP:$ 181.9 billion (2008) Singapore’s only resource that could be a basis for the economic development and prosperity of Singapore is its labor force, more specifically the training of its labor force. Singapore could not hope to compete upon the basis of the cheapness of its labor; it had to create technical skills that are unavailable elsewhere in the Third World. ENGLISH SPEAKING WORKERS Singapore’s today workforce is ranked among the world’s best for productivity, work attitude and technical skills.Workers, a majority of whom speak English proficiently are dedicated and hardworking,and keen to upgrade their skills and knowledge. TO RISK INVESTING MILLIONS If we look at the development of Singapore that its area is only 682,7 sq.km (oneeighth of Brunei’s area) and its population was 1,665,000 in 1964. (Now 4,353,893)

At the early years, the importance and prosperity of Singapore derived partly from its geographical position on the main route between India and China and partly from its traditional status as a free port, the main functions of which were to store and distribute goods. Its largest exports were rubber, tin, copra, and spices, the chief products of Malaya, Indonesia,and Borneo. It also served as the distribution center of manufactured goods from the west to the countries of East. Between 1950-1965 there has been some development of light industry in the island, such as lumber and rubber milling, fishing, shipbuilding, tin smelting, and brick manufacturing. In 1958 an economic development board was established by the government to encourage industry. At the early days, the local industry was limited to trade and did not have the capability of creating export industry. Singapore sought to bring in foreign industry. But, with much of the Third World trying to do the same thing it was not easy task. One of the first goals was to make potential employers aware of the relative incorruptibility of the Singoporean bureaucracy. In much of the world laws are arbitrary and subject to change by the government. Corporations do not want to risk investing millions of dollars in facilities in an area where various elements of the government can take part or all of it at any time. The laws in Singapore might not be exactly to the liking of foreign companies but they would be fairly enforced. This proved to be a highly attractive feature of Singapore. The tax system was also attractive to foreign companies, often giving lower tax rates for foreign investment than for local residents. One of the keys to Singaporean was the upgrading of infrastructure, streets, roads, an airport, port ficilities. The upgrading was financed not primarily by borrowing but by a special infrastructure tax. TWICE A WEEK FOR THREE-HOUR The strategy for raising Singaporean incomes was to improve the training of Singaporean workers through government training institutes. A typical training program would meet twice a week for three-hour sessions over a two year period. The training was voluntary and free and it was geared to the needs of the companies operating in Singapore at that time. Mark Patinkin gives a good example: Apple Computers was one company that located facilities in Singapore. Initially Apple just produced electronic boards in Singapore for assembly into their computers in the U.S. As a result of the production of more skilled personnel in Singapore through the training institutes Apple decided to produce its entire computer in Singapore. Apple made this decision on the basis of Singaporean workers being able to duplicate the operations of its American plant. But the newly trained, highly motivated Singaporean workers not only replicated the old production process but began to make improvements that further lowered costs. There developed in Singapore a culture of innovation. The government training program proved to be so beneficial to employers that they acquiesed to a special tax to help pay for it. As a result of the success of its technical training programs the government of Singapore branched out into the creation of: * a Science Park to share research between government and industry · a National Computer Board to encourage the computerization of Singapore’s schools,offices and homes · a tripling of the size of the two engineering universities · the creation of a $ 50 million venture capital fund to encourage Singaporean startup companies but which would also fund startups outside of Singapore.(1)

AWARDS FOR INNOVATIONS Singaporeans also say: “Our country has shaped an environment in which ideas can be turned into businesses easily and profitably. The Enterprise Greenhouse is

nurtured by EDB (Economic Development Board) with co-investment and seed funding programmes, and supported by a wide range of venture capital funds, incubators, business accelerators, and R&D and test-bedding facilities. Budding entrepreneurs can tap programmes such as SEEDS (Startup Enterprise Development Scheme), which offers dollar-for-dollar equity matching. Innovation is encouraged with awards, and ideas are kept safe with some of the best intellectual property protection measures in Asia. An island-wide network of Hotspots or locations and facilities for technopreneurs, is being built. These “Hot”, or “Hub of Technopreneurs” sites bring together technopreneurs and technology-related companies in surroundings condicive to the exchance of ideas and the expression of the spirit of enterprise. “Technopreneurship Singapore” is for “Everything you need to know about starting and growing a hightech business in Singapore” Singapore’s research institutes are working at the forefront of technology to deliver better value for industry. The strong links and fluid exchanges between industry and academia make Singapore attractive to international companies as a key location in their global R&D network.”

THREE THOUSANDS MULTINATIONAL CORPORATIONS The Country’s (1) Skilled work force, (2) Advanced infrastructure, (3) Combined with cost-cutting measures, (4)Tax cuts, (5)Rent reductions, have attracted investments from more than 3,000 multinational corporations from the United States,Japan,and Europe. FREE TRADE AGREEMENT WITH U.S Singapore’s Prime Minister Tong signed a Free Trade Agreement in Washington last year. It is possible for the small states of Asia-Pasific region to invite Singapore’s firms for investment because Singaporean government has vigorously encouraged local firms to regionalize their operations and to invest abroad. THE OPINIONS OF ONE THOUSAND PEOPLE These good sentences (below paragraph) of Singapore’s administration is also very good example to invite the investment of foreign firms for all of the small states. And these sentences also reflect (give) the reasons of development: “The government is highly attuned to the needs of business. It regularly seeks the views and suggestions of the private sector when shaping economic strategy, such as when the Economic Review Committee set out in 2002 to recommend policy changes to strengthen Singapore’s long-term growth prospects. The Pro-Enterprise Movement solicits feedback from individuals and companies on how government rules and regulations can be made more relevant for business. Proposals can be submitted every time. Economic Development Board itself taps the insights and advice of many of the world’s top business leaders, strategists and thinkers. Some serve on our International Advisory Council, while others form a worldwide network of influential people who have contributed to Singapore’s growth and who act as ambassadors for Singapore as an investment location. The Economic Review Committee sought the views of more than 1,000 people, many of them in business, on what’s

needed to boost the Singapore economy and strengthen it for long-term growth. If you see rules, regulations or processes that get in the way of business, let us know. Wherever possible,we will fix the problem” (Singapore Economic Development Board) THREE “E”s OF SINGAPORE We also see in the “2003 report of Singapore” these useful sentences for development: “Singapore_Towards A Global Entrepolis” “Manufacturing-Services-Innovation” “It captures three basic elements: Entrepot, Enterprise and Entrepreneurship, the three pillars upon which Singapore will build as it continues to leverage its unique strengths as a compelling hub for business and investment.” WHAT DO MULTINATIONAL CORPORATIONS LOOK FOR ? Famous professor of economics of Harvard John Kenneth Galbraith used to say the same opinions about the above realities of development: “Multinational corporations look for hardworking and cheaper labor force in foreign countries. The development of Singapore, Taiwan and Hong Kong happened in this way.” Galbraith also gives a good example: “But if the cheaper wages would play the most determined role,the world industry would gathered in India.The other factors like financial and sociological expenses have to be less and legal procedurs have to be easy.” (2) PRODUCTIVITY The other contemporary famous professor of economics of Massachusetts Institute of Technology (and columnist of New York Times) Paul Krugman mentiones the Asian productivity and says (as a general rule): “Productivity is lower than western industry but “high resource mobilization” and “high savings rate” are the reasons of development in East Asia.Krugman also mentiones the studies on the economy of East Asia, in U.S.Alwyn Young from Boston University compares the economies of Singapore and Hong Kong in “Story of Two Cities” and says “The economy of Hong Kong is more productive than Singapore”. But Chang Hsieh from Princeton says “No difference between these two great economies but productivity is low in both of them.” “Big growths are from inputs” is the common opinions of all western economists on East Asian economies. American (and the other) economists accept the high development speeds of HPAE (High Performance Asian Economies) countries and Krugman notes the other characteristics of East Asean development: “Very high savings rate:Malaysia was doing investment in 1997 more than 40% of its GDP and Singapore half of its GDP.And extraordinary basic education and with its influences high literacy rate and high aptitude for mathematics. Rapid accumulation of physical and human capital were born from these characteristics and these caused rapid economic development.” (3) Umar Chapra says “Singapore and Hong Kong (and Taiwan,South Korea) evolved the policies of “to set free” and “accord to export” (like in Japan) for supporting the development. These policies gave more initiative and activity to private sector for motivation of the rapid development of these countries. Opening to foreign markets not only gave increasing for employment and more export but made possibility of less foreign debts for growth of their economies.” (4) Chapra and Paul Krugman say “Hong Kong is different than the other countries of the region. Hong Kong performed all of the rules of “laissez-faire” and Krugman adds “When the Third World was believing in that years that the way of development was passing from the protectionism and central planning, but Hong Kong had got the policies of

“free trade” and “encouragements to entrepreneurs, enterprisings” and development theorists could not guessed with this open economy, Hong Kong would catch the highest development rates.”(5) Chapra says “Singapore and Hong Kong (and the other East Asian states) imitated Japans, in interfere of government, encouragements, regulations about capital market, savings, and in all of the phases of economy. The government orientated (and controlled) the private sector to the target points in the subjects of licenses, foreign credits, technology aggrements. In reaching to high savings rate,Singapore and Hong Kong imitated Japans. The people was in big economic troubles after World War II, in Japan. Every Japan understood a new national structure was necessary in using of economic resources (sociologic impact on psychological behaviours.) This is the cultural values of to avoid from demonstration effect in consumption and to live a simple, modest life. Everyone would follow these rules. Even small (and poor) families followed a way of thriftiness. In 1987, total savings had reached to 40% of GDP in Singapore (39.9%.) (These high rates were in South Korea 37.6 %, Taiwan 37.0 %, Japan 33.4 %, Hong Kong 30.7 %, (but) Latin America States 19.8 %, Middle East and North Africa 17.0 %) (6) HONG KONG Hong Kong’s growth as an entrepot of East-West trade was the product of combination factors: (1) (2) (3) (4) (5)

a magnificent harbour, efficient administraton, stable currency, absence of custom duties, well developed shipping services,

As a result the colony became the headquarters of the chief British merchant houses in the Far East.Industry grew slowly until after World War II, when the refugees brought capital and skill to the city; light industries, attracted by a plentiful supply of (1)industrious, (2)easily trained, (3)cheap labor, expanded rapidly. Area: 1,042 sq.km Population: 7,055, 071 (2009) and a very high Per Capita: $ 43,700 (2008)

GDP:$ 306.6

billion

(2008)

Hong Kong (like Luxembourg and Singapore) has not got any natural resources. Oil, natural gas, food and raw materials must be imported. Exports: $ 365.2 billion (2008)(including re-exports);(electrical machinery and appliances, textiles, footwear, watches and clocks, toys, plastics Imports: $ 388.4 billion (2008)(electrical machinery and appliances, textiles, foodstuffs.

ALSO

A

SMALL

STATE

OF

HIGH

TECHNOLOGY

Israel is the most powerful (in industry,technology,military) country of Middle

East, but has got an area of 20,333 sq.km that Negev desert in the south, almost wholly desert, the Negev embraces half of the country’s total land area. Israel has not got also natural resources but has got a high technology industry including aviation, communications, computer-aided design and manufactures, medical electronics. Population:7,233,701 (2009) GDP: $ 201.4 billion (2008 est.) Capita: $ 28,300 (2008) Exports: $56.64 billion (2008) Imports: $ 64.31 billion (2008

Per

The leading exports are cut diamonds, high tecnology equipment, and agricultural products (fruit and vegetables.) Despite limited natural resources (limited arable land and limited natural fresh water, pose serious constraints, desertification), Israel has intensively developed its agricultural (and industrial) sector over the past 20 years. Israel imports substantial quantities of grain but is largely self-sufficient in other agricultural products. In the first decade (1948-58) Israel’s government took energetic measures to maximize the use of available water,expanding the irrigated zone by about 300 %. The yield was further augmented by the use of mechanized equipment and improved techniques. As a result, by 1958 Israel met 70 % of its domestic food requirements despite the doubling of its population. Striking gains were made in the production of milk,poultry, livestock, vegetables, grains, and fruits; and eggs, fruit juices, and peanuts were exported. In addition, the sale abroad of citrus fruits, the main agricultural export, under the mandate (of British), more than doubled by 1960. Sugar beets,first introduced in 1951, became a major item within a few years. Cotton was planted for the first time in 1953. Within five years the acreage under cultivation provided nearly 40 % of the country’s needs. The development of industry was hampered in Israel’s early years by the pressing need to divert a good deal of the available capital to immigrant housing and maintenance.Thus the program for the promotion of manufactured and its diversification did not really get under way until the mid-1950’s.To overcome the shortage of capital, particularly foreign exchange, the government enacted a law in 1955 offering prospective investors exemption from income and realty taxes, generous depreciation allowances, and limited transfer rights in original currency. By the early 1960’s major industries included food processing, diamond polishing, and manufacture of textiles, clothing, metal products, pharmaceuticals, plastics, ceramics, and electrical equipment. One of the primary purposes of industrialization was to make the further expansion of the economy self-generating through the promotion of foreign trade.Thus to the traditional exports of citrus fruits and polished diamonds, which accounted for almost half of the total, were added textiles and wearing apparel, rubber tires and tubes, plywood, cement, books, medicines, stamps, as well as other agricultural products. Exports expanded fivefold in the first decade. ROSES

AND

CHRYSANTHEMUMS

OF

UNITED

ARAB

EMIRATES

In Gulf region,United Arab Emirates (population:2,500,000) showed the good results of working on agriculture,in recent years.The UAE has spent more than $ 3 billion in the past 15 years on afforestation and on transforming barren desert areas into fertile farm and pasture land. Government is now planting more than 200,000 new date palm trees every year.The total area under cultivation, has soared to 54,500 hectares in 1994 from 15,050 hectares in 1977. Agricultural projects throughout the UAE are mainly concerned with dairy production, poultry farming and cereal crops. Annual milk production has increased from to 80,000 tonnes, meeting 90 % of the domestic consumption demand. Annual egg production has reached 200 million

satisfying 40 % of the local market. Agricultural research is an essential part of the UAE’s programme to establish self-sufficiency in food supply. Roses and chrysanthemums are now exported to Europe. In Ras Al Khaimah there has been a number of agricultural investment projects creating exports of tomatoes, aubergines, beans, maize and melons annually to Europe. Today there are more than 3,000 fishing boats working in UAE waters,harvested around 97,000 tonnes of fish in 1994, a part of which was dried for animal feed and fertilizer. In 1995, sea food production had increased to 105,884 tonnes.The annual fish catch now meets 50 % of the domestic consumption demand. MORE UNIVERSITIES To be a “science community”, it is necessary to establish new universities. There are 11 universities in UA Emirates. The main university “United Arab Emirates University” has got 17,000 students And there are Higher Technology Colleges (two years after high school) in diferent cities and towns that a lot of students attend. There are -at least 3,000 universities- in USA (that some sources give a number even “4,500 universities”.) That is, there is for every 100,000 persons, one university in USA (308 million population.(2009) There are more than 400,000 students in only CUNY (City University of New York) There are 150 universities in Canada (31 million population), that is for every 200,000 persons, one university. To give permissions for establish new universities for private (foreign or local) companies, will bring foreign students from abroad and this means a good income for the small states, and this universities will bring competition in the science for the country. Israel has the highest ratio of university graduates per capita in the world as well as one of the highest per capita rates of patents. A report of Singapore government points to this subject: “The Asia-Pasific market is the fastest-growing source market for international students and Singapore is well-positioned to tap on this growth.” Ministry of Education of Singapore’s advertisement invites the western universities to open new campuses in Singapore: “ 70 % of the global demand for international higher education in 2025 is expected to come from Asia.What are you waiting for ? Be part of the action now ! The University of Chicago Graduate Business School set up a permanent campus here,the first leading US business school to do so in Asia..” FOREIGN

INVESTMENT

LOOKS

AT..

Foreign companies looks at: (1) labor skills, (Malta as a small state of population 405,165 (2009), has not got an important natural resources but a productive labor force gives to this country a “$ 24,700” of per capita) (2008) (2) tax policy, (3) foreign reserves have to be (at least relatively) healthy state, (4) the country can pay its external debt, (5) bureaucratic procedures have to be less and not complex, (6) inflation has to be low (7) per capita has to be high (8) rate of crimes have to be low (as a small state Jamaica (area:10,991 sq.km) :growing crime problem is hampering economic growth of Jamaica)

CONCLUSION In this study ,we searched the economies of 20 small states. Incomes of some small

states are from petroleum: Qatar, Trinidad and Tobago, Bahrain; some are from tourism: Cyprus, Maldives, Bahamas; some are from remittances: Camoros, Jamaica; some are from transport/transshipment: Cape Verde, Djibouti, and some from industry:Hong Kong, Luxembourg. But all of them are working on diversification projects. For example: The Bahamas: in addition to tourism and financial sector,the government supports the development of a “third pillar”, e-commerce. Monaco as a famous tourism and recreation country, the government has successfully sought to diversify into services and small, high-value-added, nonpolluting industries. Barbados as a famous sugar country, production in recent years has diversified and tourism and manufacturing surpassed the sugar industry in economic importance. Samoa as a coconut country, tourism is an expanding sector, accounting for 25 % of GDP, now. The Samoan Government has called for deregulation of the financial sector, encouragement of investment, and continued fiscal discipline. Kuwait, Bahrain and Qatar’s policy of economic diversification has led to a surge in investment in projects for the export of liquefied natural gas (LNG) and petrochemicals. These governments expect that it will be able to earn more barrel of crude oil produced if it can export refined products and petrochemicals, as well as create private sector jobs –in a country which has been heavily dependent on government ministries- to provide employment for the population. FUTURE YEARS (1) The amount of world trade will increase in the future years and especially in the East Asia,South Asia region. The economies of East Asia countries will go on increasing and East-West commerce will grow. The world trade will be in need of new free ports. Brunei can take this role in the region. (2) Increasing of population in Indonesia, Malaysia, Australia and incresaing of incomes in India, China, S.Korea, Taiwan, Pakistan, Iran will open new/more demands for mutual trading and it will be more demands for entrepot trade (and free trade zones). (Let’s remember:in April 2004, following a 29-year hiatus, a delegation led by Singapore’s Trade and Industry Minister made an official trip to Iran, aiming to build stronger political and business ties between the two nations. The trip came on the heels of visits in February and March 2004 by various Singapore officials to Egypt, Jordan, Bahrain and to UAE. The general stated purposes of the trips included the establishment of joint free-trade agreements with several visited Middle Eastren countries, and development of the potential markets for Singaporean companies in the energy-rich region.) (3) If Africa (with its natural resources and great lands for agriculture and animal husbandry) destroys poverty in the future decades, also trade between Africa and East Asia will increase and Brunei and other small states (also as a free-port, re-export and incomes from services and then with the other industries) can take benefit from this. (4) Population of world (and incomes of this population) will increase in the future years and tourism will go on rising

(1) Thayer Watkins, “Economic History of Singapore” (from “The Silent War” of Mark Patinkin and Ira Magaziner) (2) John Kenneth Galbraith(1980). “Tout savoir ou presque sur I’économie” (Daily Problems of Economic Life) (with questions of Nicole Salinger to Galbraith),Paris.

(3) Paul Krugman(2001) The Return of Depression Economics. New York: W.W.Norton&Company. p,36 (4) Chapra Umar(1993). Islam and Economic Development. Islamabad. p,89 (5) Krugman, pp, 134-35 (6) World Bank, World Tables,1988-89, v,1, pp, 66-9 Britannica and Grolier Encyclopaedias, Web sites of governments of Luxembourg, Singapore, United States