Thursday, April 28, 2005

Why Singapore is the "most globalized""

The report stated several factors which contributed strongly to the win, but it is likely that a through analysis of the source data is probably necessary. Factors which were mentioned in the report include:
Increased contribution to UN peacekeeping missions by 41%

Singaporean general commanded the peacekeeping force in East Timor for much of 2003

Signed a bilateral trade agreement with the US in May 2003

Interestingly, the report also stated that generally there is a strong positive relationship between globalization and political freedom, but noted that Singapore was an exception to this, as a home to a modern, open economy that exists alongside tight government control over the media and limited individual liberties. Singapore, however, was the prime example for the adage that highly globalized countries are often less corrupt. The graph on page 59 of the report demonstrates this rather clearly.

A quick look at the source data shows that in the categories where Singapore had ranked first: Trade/FDI/Telephone (pdf warning) it had achieved quite remarkable gains from 2002 to 2003. This was most obvious for Foreign Direct Investment (inflows) - Singapore moved from $5, 729, 900,000 to $11, 408, 900,000; almost a 100% increase.

[Source: Fifth annual A.T. Kearney/FOREIGN POLICY Globalization Index (pdf warning), 26/04/2005]