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The concept of economic growth at any cost, as measured by Gross Domestic Product (GDP) or shareholder value increases/profit in the case of businesses, continues to be the focus and driver of most nations and corporate entities. This single economic bottom line focus has been achieved by many nations at a cost to the environment and rich natural capital resources and its resultant impact on social well-being and health.

The debilitating pollution in China and India and its subsequent impact on the health of their populations has positioned both economic powerhouses as the most polluted nations in the world. The cost of clean-up in China was recently estimated to be in the region of 6.5% of GDP and would probably be no different in India.

Can nations balance economic growth whilst being committed to environmental stewardship? Singapore has proven that it can be done albeit on a comparatively smaller scale compared to China and India. However, there are many lessons every nation in the world can borrow from its journey to achieve both economic growth and environmental sustainability simultaneously.

Singapore achieved ‘developed nation status’ and is amongst the most innovative and competitive countries in the world with a GDP per capita (Purchasing Power Parity) that places it among the top 10 nations in the world. As a nation it has defied the myth that economic development and population growth cannot take place without sacrificing the environment. On the contrary, green cover increased from 35.7% in 1986 to 46.5% in 2007 with a vision for 50% whilst population grew from 2.7million to 4.6 million in that same period.

What helped this nation achieve this balance? The answer is best captured by the following quote in the 2008 Inter-Ministerial Committee report on sustainable development:

“Sustainable development means achieving the twin goals of economic growth and protecting the environment in a balanced way. Singapore had practiced sustainable development even before the term was coined. We pursue growth in order to have the means to improve our lives. We also safeguard our living and natural environment, because we do not want our material well-being to come at the expense of our public health or overall quality of life. Singapore is a small island with finite spaces, limited water supplies and no natural resources. Yes, we have overcome our constraints, grown and developed into a modern metropolis. Through imaginative city design, careful planning and judicious land use, we have housed close to five million people in a clean and green city with one of the best urban environments in the world.” (1)

 

The Sustainable Singapore 2030 strategy led by Prime Minister Lee Hsien Loong demonstrates the nation’s commitment to sustainability. In the future ‘World of Cities’, projected to hold 66% of the world’s population by year 2050 (2), Singapore’s evolution in the past 50 years will offer invaluable lessons to many a global city as it strives for sustainable growth.

Balancing-Economy-and-Environment-Gardens-Bay-Singapore
Gardens by the Bay, Singapore
Photo: Shiny Things. (Flickr: Supertree Forest.) (http://creativecommons.org/licenses)

LEADERSHIP – CONVERTING A CONSTRAINT INTO AN OPPORTUNITY

Singapore’s land area is 712.4 sq. km. This constraint has influenced its strategies more than any other factor. Its charismatic ‘founder’, former Prime Minister Lee Kwan Yew, understood the reality of this constraint and primarily set-in motion a strategy through instilling a commitment to integrated planning and execution.

The strategic interest of the nation – not the popular or easy path – has been followed in all decisions by the city state, which had no resources to boast of since its breakaway from Malaysia in 1969. The key question that propelled the nation into action was:

“Why would any nation or business invest in Singapore? What compelling reason did the nation have to attract the Foreign Direct Investment (FDI)?”

The reasons for not doing so seem to be plenty:
•Land constraints – Limited in expanse. (3)
•Raw material constraints – No major resources of raw materials. (4)
•Water constraints – Requiring two supply agreements with Malaysia. (5)
•Energy constraints – Required agreements with both Indonesia/Malaysia for natural gas and petroleum imports from the Middle East. (6)
•No captive markets of scale to justify investing in manufacturing bases. The shortage of possible FDI attractions gave rise to a series of infrastructure projects to ‘create’ unique sustainable attractions sought after by business, nations and industries.
•Create a ‘Clean and Green environment’ which signals attention to detail and health. 
•Build and attract human capital.
•Logistics hub – With the advantage of location as a gateway to the east.
•An advanced container terminal in the same league as Shanghai, Rotterdam and Dubai.
•An efficient Singapore Airlines and Singapore airport to be amongst the best in the world. (7)
•Healthcare hub – Develop capacity to serve the region.
•Bio and Nano – technology capability. Establishing world-class facilities to attract world-class talent. (8)
•Education hub – The nation attracted the best business schools to invest and collaborate with existing national institutions. (9)
•World-class green spaces like Gardens by The Bay.
Not only did the plan materialize with precision but today Singapore leads the world on many fronts.

STRATEGIC LAND MANAGEMENT

When all you have is 712 sq. km., every square kilometer counts and one really cannot afford not to get it right the first time around. One of the boldest steps taken by Premier Lee Kwan Yew was to take control of the one resource Singapore had in its possession: a limited land resource. Singapore’s long-term strategic land use and transportation plan, which has a 50-year rolling plan view was mobilized to guide development. All agencies involved in economic, social, environmental and infrastructural development were instrumental in jointly developing the plan. This 50-year outlook was thereafter converted to a Master Plan and reviewed every 10 years. This approach allows the nation to weigh development objectives and ensure that economic and population growth are managed in such a way as to retain a high-quality living environment.

The goals:

•Developing a compact city to conserve land use.
•Optimization of infrastructure. 
•Promoting the use of public transport with an extensive rail network.
•Decentralizing commercial centers to reduce the need for city commutes.
•Providing a quality healthy living environment
•Retaining Singapore’s natural and built heritage by safeguarding nature reserves/ natural areas and conserving buildings with outstanding architecture and historical significance. (10)

The strategic master plan defined and zoned out areas for industry, housing and green areas. To achieve this end many existing structures had to be dismantled, people and farms re-located. This planning process is now established and ingrained.

DIFFERENTIATING SINGAPORE – CLEAN AND GREEN

The need to set Singapore apart from all other FDI options that existed at the time in the early 1970s seems to have been the key driving force. 

A unique sustainable differentiator was developed to give a strong and compelling reason to ‘invest in Singapore’.

 

“We have built, we have progressed, but no other hallmark of success will be more distinctive than that of achieving our position as the ‘Cleanest and greenest’ city in South East Asia. For only a people with high social and educational standards can maintain a clean and green city.” - Prime Minister Lee Kwan Yew (11)

The launch of its first ‘Keep Singapore Clean’ campaign in 1968 followed up in 1969 when the PM led thousands of volunteers for a mass one-week drive to clean Singapore was the beginning of a concerted effort to position the nation as the best option for western investors who needed to be strategically present in Asia.

In 1977 the Singapore river clean-up project to breathe life back into its waterways was launched and 10 years later, in 1987, the project was successfully completed. Lee Ek Teng who was appointed the Permanent Secretary to the Ministry of the Environment led the project. Hosting the 1972 Commonwealth Parliamentarian Conference in Singapore was the opportunity the nation had worked towards to showcase its many initiatives to strengthen its position. ‘The Cleanest and Greenest City’ was ready for business and Foreign Direct Investment. The ‘Water Is Precious’ exhibition at the Victoria Memorial Hall was featured at the conference.

In 1991 the first ‘Clean and Green Week’ was launched. By 2007 ‘Clean and Green Singapore Week’ was mainstreamed to energize the entire nation annually to give credence to its strategic differentiator.

Balancing-Economy-and-Environment-Singapore-port
Singapore Port

WATER MANAGEMENT – A GLOBAL HUB OF EXCELLENCE

Global water scarcity projections indicate that by 2025 the world will begin to face an unprecedented level of economic and physical water shortages, which will affect the world’s population living in the southern hemisphere. The most populace nations of the World – China and India – which account for over two billion of the global population, are projected to face water shortages of catastrophic proportions along with the Middle East and North Africa. (12)

The expertise acquired through sheer necessity over the past 30-40 years has positioned Singapore as a ‘Global leader in water management’. Singapore depended on Malaysia for its water with two supply agreements in 1961 and 1962.

Today, 75% of the 712 sq. km. area of Singapore is water catchment enabled, to ‘harvest’ storm water feeding 17 reservoirs. The new water desalination plants, which require substantially less energy than standard desalinated water, contribute to industrial needs. Singapore continues to invest in R&D and innovation in water and has formed partnerships with General Electric and Siemens. Singapore’s issues were no different to the ones faced by the cities of the world today i.e., Bangkok, New Delhi, Mumbai, Manila and Jakarta in terms of polluted rivers and water ways.

Given below is a catalogue of initiatives that the nation launched to manage its water resources:

The Cleaning of the Klang River, which was black with sewage and totally polluted was a key initiative. The resettlement of people mobilizing the Land Control and Acquisition laws cleared all polluting farms of pig, chicken and prawn. Since 2002 the ‘Four National Taps Strategy’ was launched. In 1966 ‘Industrial Water’ was made available through the Jurong Island Water Works. In 1969 reservoir capacities were expanded at the Upper Seletar Reservoir and eight abstraction stations. By 1972 Singapore had developed its ‘First Water Master Plan’.Since 1974, when the first Water Reclamation Plant (WRP) was constructed between 1979-1981, WRPs were commissioned in Bedok, Kranji, Seletar and Jurong.

In 1975 the first estuarine reservoir with the Kranji/Pandan scheme and the Upper Pierce reservoir and Chestnut Avenue Water Works were completed. The Western Catchment Scheme covering Sarimbun, Murai, Tengeh and Poyan were commissioned and the Choa Chua Kang Waterworks expanded.

The Singapore River clean-up (1977-1987) demonstrates what can be achieved if a nation invests in breathing life back into ‘polluted dead rivers’. In 1983 The Water Catchment Policy was launched to control developments in unprotected catchment areas. In 1984 the ‘Inter- agency’ road drainage improvement task force was in place. By 1991 the Water Conservation Tax was introduced leading to the 1997 Water Pricing Restructure.

Balancing-Economy-and-Environment-Klang-River
The Klang River

By 1999 the Sewerage and Drainage Act and Environmental Pollution Act replaced the previous act. In 2000 the first new Water Demonstration Plant was commissioned in Bedok, which led to the launch of ‘New Water’ by Prime Minister Goh in 2003 using dual membrane technology from Orange County in Southern California to reclaim grey water for industrial and non-potable use and is expected to meet over 30%-40% of water needs in the future. By 2005 the first desalination plant was commissioned. 2007 was a year of execution of the water master plan and the PUB (Public Utilities Board) won the Stockholm Industry Water Award. In 2008 Singapore launched the ‘International Water Week’.

In 2012 the Centre for Liveable Cities hosted the ‘World Cities Summit’ to inspire the world’s cities to achieve both economic and environmental sustainability simultaneously.

Singapore’s challenges and opportunities 2030

Vision 2030 gives direction and comprehensively addresses the key areas the nation needs to focus on to be differentiated as ‘A City in a Garden’ whilst not compromising economic sustainability.

• Water and Waste Management – Singapore is a global leader in water, waste and liveable city management and this could prove to be lucrative expertise in the future.
• Energy – The focus of energy efficiency in the medium term and search for new renewable energy solutions in the future will need to continue. Energy efficient green certified buildings are expected to reach 80% by 2030.
•Societal Challenges – The challenge of social sustainability will take center stage in the future as the nation balances economic development and social progress with environmental sustainability. The modern Singaporean wants his voice heard and expectations met especially in terms of aspirations for stability, livelihood and equality versus expatriates. The prevalent political climate is indicative of this emerging trend.
•Economical Relevance – Ensuring economic sustainability in a competitive global economy to ensure prosperity for the nation by strengthening its regional financial expertise, high technology investment with talent will be key to its efforts to achieve Vision 2030.

Balancing-Economy-and-Environment-Strategic-National-Sustainability

Strategic National Sustainability (13)

All major metropolises and nations need to manage the utilization of their natural resources in a strategic manner to ensure future generations are not compromised. Adopting Strategic National Sustainability policies and strategies will contribute to achieve that goal.

 

Strategic National Sustainability is a commitment to implementing Sustainable National Strategies which Differentiates the nation, whilst impacting all Stakeholders that are in its sphere of influence.” © 2010 Ravi Fernando 

The United Nations is set to launch the new Sustainable Development Goals (SDG) 2015-2030 to replace the Millennium Development Goals of 2015. Strategic National Sustainability is no longer an option but a pre-requisite for any nation that intends to commit to achieving the new SDGs.

Singapore is a classic case of adopting Strategic National Sustainability:
1) The nation has embedded sustainability into its national strategy.
2) Singapore’s Prime Minister leads the National Sustainability Strategy through the ‘Inter-Ministerial Committee on Sustainable Development’ set up in April 2008. (14)
3) Singapore has differentiated itself on an environmental paradigm i.e. ‘A City in a Garden’ and mobilized initiatives to be the clean, green and efficient city in South East Asia.

Any nation committed to Strategic National Sustainability will ensure it impacts its sphere of influence as demonstrated below:

Figure 1 Strategic Focus for Nations © 2012 R.A. Fernando (15)

Achieving economic growth balancing ‘environmental and social sustainability’ will be the key today and in the future for all nations. The key for Singapore is not to compromise its strategy, however the limitation of land availability, scarcity of limited resources, increasing population and intense global competition will challenge its commitment to sustainability.

LEGENDS 

1 Report of the Inter-Ministerial Committee on Sustainable Development (Covering memorandum to the Prime Minister dated 9th April 2009, Points 2 & 3)

2 United Nations Population Division/DESA, World urbanisation prospects: The 2007 Revision.

3 The total square area of Singapore is 712.4 sq.km. with a population of 5 m 

4 Singapore depends on Malaysia and Indonesia for natural gas to meet its energy requirements

5 Singapore has two water supply agreements entered into with Malaysia in 1961 for 50 years which expired in 2011 and 1962 for 99 years which expires in 2061

6 Petroleum is imported from the Middle East

7 Singapore Airlines – A great way to fly 

8 Bio polis – biotechnology facility and A-star nanotechnology facility 

9 INSEAD built its Asia campus and Wharton etc came into partnerships

10 A Lively and Liveable Singapore: Strategies for Sustainable Growth © 2009 Ministry of Environment and Water Resources and the Ministry of National Development. Pages 23/24

11 PMs speech at the launch of the inaugural Keep Singapore Clean and Green campaign in 1968.

12 UNEP Global Water Scarcity Projections 2005

13 Singapore – A City in a Garden, A Vision for environmental sustainability (INSEAD Case study 2013) pp. 12

14 Singapore – A City in a Garden (INSEAD 2012)

15 Fernando. R(2012) , Sustainable Globalization, Journal of Corporate governance Vol.12 no 4 2012 pp.588

 

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