Just a few decades ago, in the middle of the 20th century, Singapore was an underdeveloped Asian country. And in a short period of time, as a result of reforms and modernization, the country’s authorities managed to build a powerful market economy with one of the highest GDP per capita in the world. The country's economy is one of the most open and corruption-free, and Singapore ranks 2nd in the world ranking of global competitiveness. Therefore, today Singapore is considered one of the “East Asian tigers” for such a rapid leap in its economy to the level of developed countries.

Leading industries include biotechnology, pharmaceuticals, electronics manufacturing, shipbuilding, financial services and international tourism. The country's largest enterprises are the electronics manufacturer Flextronics, Singapore Airlines, transport company Neptune Orient Lines, Wilmar International agro-industrial group, Fairmont Raffles Hotels holding (owns the international hotel chain Swissotel).

The country's national currency is the Singapore dollar (SGD, S$), which is divided into 100 cents. There are banknotes in circulation in denominations of 2, 5, 10, 50, 100, 1000 and 10,000 dollars, the so-called “portrait series”. Coins are also used in denominations of 1, 5, 10, 20, 50 cents and 1 dollar. The issuing center is the Monetary Authority of Singapore.

High tech industry

There are no minerals in Singapore - the country imports absolutely everything natural resources, even water. However, this does not hinder economic development. Singapore attracts international investors with low tax rates, a favorable business climate, high levels of economic freedom, an educated population and a skilled workforce.

Singapore manufactures and exports products from the electronic and electrical industries, consumer goods, natural rubber products, and petroleum products. The Singapore government actively encourages and develops the biotechnology industry. The world's leading drug manufacturers base their operations in Singapore production capacity. Singapore is also one of the three largest oil refining export hubs in the world, and the country controls 70% of the global market for jack-up drilling equipment and floating units for oil production, storage and offloading. Singapore accounts for 20% of the global ship repair market.

Banking and financial services

Singapore is the financial center of all Southeast Asia. There are more than 100 banks in the country, most of which are branches of all the largest financial institutions peace. Singapore is often criticized for likely hosting accounts containing money of dubious origin. But this does not interfere with the development of the country’s banking sector and its close ties with the global financial system.

Transport system

Singapore's strategically advantageous position at the intersection of the main sea routes has made it the most important port in Southeast Asia, despite the very small size of the country. According to some indicators, the Singapore port occupies a leading position in the world - first place in terms of absolute tonnage of ships and second place in terms of trade turnover.

All of Singapore's islands are connected by high-speed multi-lane roads, and rail transport includes a monorail and metro.

International is the main aviation hub in Southeast Asia, serving over 36 million passengers a year and transporting over 1.9 million tons of cargo.

Tourism

Much attention is paid to the development of tourism in Singapore. Although, as a major business center, Singapore often serves as a destination for business trips and conferences, every year it becomes more and more attractive for the average tourist.

The government encourages investment in the leisure and entertainment industry, and the construction of all facilities is carried out only to the highest standard; many of Singapore's attractions are unique - the largest and most ambitious in the whole world.

The small territory of Singapore is home to numerous natural parks, architectural compositions, cultural sites, attractions and entertainment centers. Tourist infrastructure - hotels, shops, public transport, restaurants and clubs - can satisfy travelers with any needs: from the most expensive to extremely budget ones. Every day, paid and free performances and concerts take place in different parts of Singapore.

Singapore has dedicated stretches of coastline for beach lovers, a well-thought-out recreation program for tourists with children, lively bars and dance floors for young people, as well as museums and galleries for lovers of cultural entertainment.

In the age of globalization, the boundaries between countries have become much more blurred. And businessmen took advantage of this, fully aware that they could scatter their enterprise across many regions, thus saving part of the funds that they would have spent on paying for some factors of production in one territory.

This is exactly how transnational corporations appeared, the list of which is only growing every day. What are they and how do they differ from ordinary companies?

The basis of TNK

It is worth noting that TNC (this is how a transnational corporation is abbreviated) is the last stage of international cooperation legal entities. Before this, the enterprise can be an open partnership or a limited liability company.

Another option is to create cartels - participants jointly regulate production volumes and the process of hiring workers.

The third method of international cooperation is syndicates, which imply coordinated actions in the purchase of raw materials and the sale of goods (from the total purchase of oil, one company can produce gasoline, and another rubber).

The fourth option of cooperation is a concern where only management is common financial activities, while individuals themselves are constantly engaged in different types activities (one branch of the company is engaged in sewing sportswear, and the other - military uniforms).

The trust companies are closest in their characteristics to TNCs - companies merge one of the areas of production, having common sales and finances in it (for example, joint production of aircraft engines and the constant production of instruments for aircraft by one side and passenger seats by the other). After the enterprise has experienced at least several similar cooperations, it can expand to the scale of a multinational corporation.

What is a TNC?

Before moving on to specific data, it is worth understanding what multinational corporations are. The list of their distinctive features is very long, but the main one is the presence of company capital in several countries of the world.

Despite the fact that enterprises of this scale are not located entirely on the territory of a particular country, they are still forced to obey the laws of the state where a specific branch of the corporation operates.

In addition, even state-owned enterprises can become part of a TNC, and the agreements that result in such cooperation can be both intergovernmental and private, between investors from different countries.

Variable ratings

Given the volatility of the market, it is very difficult to talk about any stable rating in which transnational corporations fall. The 2016 list differs in many positions from the 2015 list of leading companies, and the situation may change, although not globally, in 2017.

Of course, there are certain companies that, due to their fame and status, large market share, numerous trade and economic relations, can boast of a stable position in the list of the largest, but there are very few of them.

Stability in change

But despite the instability of the market, it is possible to identify certain features that unite the largest transnational corporations in the world. The list for 2016 and earlier years necessarily included:

• American companies: a third of them are in the top hundred;
• Japanese enterprises: the number of such international companies in this country is constantly growing, for example, in five years in the nineties, 8 new TNCs emerged in the Land of the Rising Sun;
• European companies: The Old World focuses on knowledge-intensive industries, actively working with pharmaceuticals and chemistry.

It is especially worth noting that greatest number TNCs are concentrated specifically in the chemical and pharmaceutical industries.

General information

US transnational corporations lead the global ranking of the most active and influential companies. The list contains in subsequent positions such countries as China, Japan, India, Germany, Russia, Great Britain, Brazil, France and Italy. In order to understand the extent of the power of TNCs, it should be said that their total cost in 2013 it was four times greater than global GDP.

The budget of some companies exceeds the budget of entire countries: for example, the sales volume of the world famous General Motors in the nineties exceeded the GDP of the Scandinavian countries, Saudi Arabia and Indonesia; Japanese Toyota earned twice as much money as the GDP of Morocco, Singapore and Egypt.

Of course, today the situation has changed a little: some of the regions have significantly increased their economic power, but at the same time, even now TNCs continue to exceed the GDP of developing countries with their capital.

Rating of TNCs by market value

But it's time to appreciate the true extent of power that multinational companies wield. The list of the largest companies by market value included (according to places):

• Apple (USA).
• Exxon Mobile (oil business, USA).
• Microsoft (USA).
• IMB (USA).
• Wall-Mart Store (the world's largest retail chain, USA).
• Chevron (energy, USA).
• General Electric (production of locomotives, power plants, gas turbines, aircraft engines, medical equipment, lighting equipment, USA).
• Google (USA).
• Berkshire Hathaway (investment and insurance, USA).
• AT&T Inc (telecommunications, AT&Inc).

An interesting fact is that Apple has remained in the lead for several years in a row, while the next positions are constantly changing. For example, since 2014, General Electric was able to rise from ninth to seventh place, Samsung was, in principle, ousted from this ranking.

As already mentioned, at the moment the leading TNCs in the world are American - this is clearly evident from the rating.

Rating by level of foreign assets

But we can also look at transnational corporations from the other side. The list of the world's largest companies by level of foreign assets (that is, the share of foreign countries in the company's capital) is as follows:

• General Electric (energy, USA).
• Vodafone Group Plc (telecommunications, UK).
• Royal Dutch/Shell Group (oil and gas sector, Netherlands/UK).
• British Petroleum Company Plc (oil and gas sector, UK).
• ExxonMobil (oil and gas sector, USA).
• Toyota Motor Corporation (automotive industry, Japan).
• Total (oil and gas sector, France).
• Electricite De France (housing and communal services, France).
• Ford Motor Company (automotive industry, USA).
• E.ON AG (housing and communal services, Germany).

Here the situation is slightly different from the ranking of the richest companies: the geography is much broader, and the areas of interest are different.

Russian TNCs

But do transnational corporations exist in Russia? The list of domestic companies of this scale is not very large, because in Eastern Europe TNCs are just beginning to develop, but even here there are already pioneers.

It is worth noting that Soviet enterprises, whose branches were scattered throughout the Soviet Union, were something like modern TNCs, so that some of them, maintaining their previous level, easily became transnational companies. Among the most famous such companies today:

• "Ingosstrakh" (finance).
• Aeroflot (air travel).
• Gazprom (oil and gas sector).
• Lukoil (fuel sector).
• "Alrosa" (mining sector, diamond mining).

According to experts, Russian oil and gas companies have the greatest potential, which, due to their availability of resources, can easily compete with world leaders in this industry, selling them raw materials and allowing them to extract resources from their own wells. It is worth noting that many global TNCs have their branches on the territory of the Russian Federation.

Fuel TNCs

According to Russian experts, the most promising ones are fuel transnational corporations. List of leaders in this field:

• Exxon Mobil (USA).
• PetroChina (China).
• Petrobras (Brazil).
• Royal Dutch Shell (UK).
• Chevron (USA).
• Gazprom (Russia).
• Total (France).
• BP (UK).
• ConocoPhillips (USA).
• CN00C (Hong Kong).

The presence of a Russian company among the world's largest TNCs definitely increases the likelihood of other corporations, such as Transneft, for example, moving to this level, which is already one of the richest companies in the world, although it has not yet reached the international level.

Difficulties of TNCs

But is everything so smooth with TNCs? Yes, expanding their target markets allows them to receive maximum profit from the sales of their products, but at the same time, isn’t such dispersion their weakness? What challenges do multinational companies face?

The list of these obstacles is huge, ranging from constant competition with local manufacturers who know their market much better, to political games, due to which a product, seemingly already adapted for a certain country, cannot reach store shelves.

TNCs in new markets are faced with a lack of local specialists (lack of suitable qualifications among potential personnel), as well as with their high requirements for wages with performance equal to other regions.

No one has canceled the policy of the state, which can oblige a transnational company to pay huge taxes on profits or ban some kind of production in a particular region: representatives of TNCs coming to Russia, for example, note that due to bureaucracy, the opening of branches is delayed for many years. month.

Thus, even the powers that be, in the form of TNCs, in this case, have certain problems; one should not think that their power opens all the doors for them.

Development prospects

Well, what development prospects do the world's transnational corporations have? The list of their spheres of influence, as has already been mentioned several times, is truly enormous. About half of industrial production, almost 70% of trade, almost 85% of inventions and 90% of foreign investments depend on them.

Trade in raw materials belongs to TNCs: under their authority is the purchase and sale of wheat (90%), coffee (90%), corn (90%), tobacco (90%), iron ore (90%), copper (85%), bauxite ( 85%) and bananas (80%).

In addition, in America, more than half of export-related operations are controlled by TNCs; in the UK, the number of such operations is 80%; in Singapore, which was basically built with money from foreign investors, it is 90%. 30% of world trade is directly or indirectly related to the activities of TNCs.

And in the future, with the development of globalization, the power of transnational corporations will only increase.

Despite all sorts of difficulties, they are not going to give up on expanding into new territories, and there are still a lot of markets where not all possible space belongs to TNC products.

Therefore, the only thing that now remains for most states targeted by TNCs is either to assist them, receiving a certain profit from the arrival of a new entrepreneur in the country, or to defend themselves by introducing a policy of protectionism, thereby possibly causing discontent among citizens who will be forced to purchase the products of transnational companies. corporations in other markets.

Conclusion

It is impossible to deny the enormous role of transnational corporations in the global market. The list of spheres of their influence, projects in which they take part, and markets available to them is truly enormous..

But still, it is impossible to say unequivocally that the future belongs to them - the competition from the national manufacturer is too strong. Yes, a modern economy without TNCs will not exist in the form in which it exists today, but at the same time it will not completely succumb to them.

S. is an industrially developed state. GDP 90.27 billion US dollars, GDP per capita 24.7 thousand US dollars (2001). It ranks 4th in the world in terms of well-being. The number of unemployed is 25 thousand people. Inflation - 1%.

The service sector plays the most important role - 65.5% of GDP, followed by manufacturing - 34.4%, agriculture - 0.1%. 35% of workers are employed in the service sector, including finance and business, 21% in industry, 13% in construction, 9% in transport and communications, and 22% in other sectors.

The leading dynamically developing sector of the economy is financial, accounting for more than 1/3 of GDP growth. In the 1990s. S. has become one of the world's leading financial centers, taking 4th place after London, New York and Tokyo in terms of the volume of transactions with foreign currency. It is the most important financial center of Asia, the market for “Asian dollars”. Initially created as a partner in the Eurodollar market, it has transformed into a regional center for convertible currency transactions, a center for lending, issuing securities and managing financial funds. K con. In the 1990s, despite the monetary and financial crisis in Pacific Asia, the volume of transactions (over $500 billion) was almost 3 times higher than that of the national banking sector. IN monetary and financial terms Switzerland has become for the neighboring countries of Southeast Asia the same “promised land” as Switzerland is for the rest of the world: the most important source of international credit and the most reliable savings bank in the region.

S. has firmly taken its place among industrialized countries, becoming one of the major centers of such high-tech industries as electronic and electrical engineering, oil refining, shipbuilding, and aircraft manufacturing. It has a leading position in Southeast Asia in the production of electronic components, precision instruments and computers (half of the total industrial production and 1/3 of those employed in the industry), in shipbuilding and ship repair, and is 3rd in the world (after Houston and Rotterdam) oil refining center. The share of advanced technology enterprises accounts for St. 72% of added value and more than 1/2 of employment in the industrial sector.

Characteristic for the development of industry and the economy as a whole is the active role of the state, acting through equity participation and budget financing. The impetus for the creation of a modern industrial base was the widespread involvement of transnational corporations, primarily American ones, which initially received “pioneer status.” Nowadays in the city-state there are St. 5 thousand foreign companies, including 3 thousand branches of TNCs. They account for 3/4 of manufactured products and 90% of industrial exports.

S. is the only ASEAN country with its own developed military industry. The state fully or partially controls this sector of the economy. Within the Singapore Technologies holding, military-industrial companies are grouped into four groups: Singapore Technologies Industrial, general-purpose products in the interests of the Ministry of Defense; Singapore Technologies Ordance, small arms and artillery weapons, as well as armored vehicles; Singapore Technologies Airospace, aviation and space technology; Singapore Technologies Marine, naval technology.

Much attention is paid to the development of military R&D. The main focus here is the development of our own and the adaptation of foreign weapons and military equipment to local needs, the modernization of certain types of military equipment and components, the improvement of technological processes, and the introduction of high-tech technologies into production.

The created capacities cover the needs of the Armed Forces. For this reason, a significant share of military products, especially small arms and artillery weapons, ammunition, aircraft equipment, and spare parts, is exported. Annual arms sales are estimated at $350-400 million.

Emphasis is placed on the development and implementation of dual-use products. To a large extent, the production and scientific-technical base of the military industry stimulates the development of civilian industries.

Agriculture does not play a significant role in the formation of GDP. Farmland occupies only 1.6% of the territory. There are livestock farms, the products of which are used for domestic consumption. The bulk of food is imported, primarily from Malaysia. The fishery is based at Jurong Port.

S. is the largest seaport in the region and one of the largest in the world. Up to 700 ships and about 240 million tons of cargo are processed annually. The largest container and bunkering terminal (7.6 million containers). Shipping lines are connected to 800 ports around the world. Shipbuilding and repair is concentrated at the Keppel shipyards on the south coast of the island. Merchant Navy- 876 ships, including those registered under a foreign flag, with a total tonnage of 20.7 million tons.

A railway (38.6 km) runs through the island from north to south, owned by the Malaysian state company. The length of highways is 3,150 km, including 150 km of expressways. 9 airports, of which Changi is of international importance. Every year serves St. 70 thousand aircraft. There is an urban high-speed railway (metropolitan) with a length of 83 km, 48 stations. The telecommunications infrastructure includes 3 satellite ground stations, submarine cables connecting to Malaysia, Indonesia and the Philippines, and microwave radio communications. About 2 million telephone lines, 2.7 million mobile phones, 2.1 million Internet users.

Every year St. visits the country. 6 million foreign tourists, mainly from ASEAN countries (about 30%), Japan, Taiwan, China, Australia and the UK. The average length of stay is 3-4 days. This sector of the economy is supervised by the State Council for the Promotion of Tourism.

Over the 35 years of independence (1965-2000), S. has transformed from a re-export trade port into a modern state with a high-tech economy. Nowadays, a course has been taken to transform it into an “island of human and electronic intelligence”, connected by the most modern information and telecommunication channels with similar centers in North America and Europe, as well as with neighboring Asian countries.

Having actually moved to the stage of post-industrial society, S. began to implement the strategy of “regionalization” of the economy, i.e. to curtail unprofitable production and move them abroad, and acquire large real estate in the Asia-Pacific region. One of the directions for creating a kind of second echelon of the national economy was the creation of “development triangles”. The pioneer in this field was the “triangle” consisting of S., the Malaysian state of Johor and the Indonesian province of Riau. On the island of Batam, part of Riau, the Singaporean corporation Singapore Technologies Industrial, on a parity basis, created an “industrial park” that produces export products, into which by the beginning. 2000, despite the Asian financial economic crisis, $1.5 billion was invested.

In domestic economic policy, the dominant role was still played by a strategy based on three “pillars”: socio-economic stability, “Confucian dynamism” and the maximum development of international cooperation.

However, in 2001, the country's economy experienced a serious decline, caused by crisis phenomena in the high-tech sectors of leading foreign economic partners, primarily the United States. The recession bottomed out in the 1st half. 2002. However, by the end of that year GDP growth amounted to 2.2%. This was largely caused by the revival of the global market situation, fiscal measures of the government, incl. additional budgetary allocations and improvement of monetary and financial regulation. Growth was observed in the electrical and pharmaceutical industries. The banking sector has become active again.

The role of the central bank is performed by the Financial Administration C. It is the lead regulatory body credit and banking system. Its functions include carrying out measures to limit inflation and maintain a stable exchange rate of the national currency. In 2001, due to the worsening economic situation, the Financial Administration took a number of emergency measures, which led to a reduction in gold and foreign exchange reserves to $75.54 billion (2000 - $78.1 billion).

The emission center is the Main Currency Administration. The Singapore dollar is a convertible currency.

St. 130 banks, of which about 80 are commercial. In terms of the number of leading international banks and financial corporations represented, it ranks third in the world after London and New York.

Government revenues amounted to 30.4% of GDP. Shortage state budget 10.1% of GDP (2000). The main sources of budget revenue: income tax on citizens and corporations, real estate tax, customs duties, tax on vehicles. Other income is interest on government loans and high fines.

External debt 8.3 billion US dollars.

The average annual income of a working resident of S., including dividends from contributions to the Central Savings Fund, subsidies for the purchase of housing and education, amounted to 42 thousand US dollars in 2000. According to the forecast of the Japanese Center for Economic Research, if favorable economic conditions are maintained, by 2020 the country can become the richest state in the world with a per capita income of 145 thousand US dollars. The National Tax Administration estimates there were 386 millionaires in the country, with 1,200 taxpayers approaching that level. In 2000, five leading S. entrepreneurs were included in the “golden hundred” of rich people in Asia with a fortune of St. $1 billion. 21st place in the list was consistently occupied by Kwek Leng Beng (real estate, hotel business) - $3.3 billion.

S. is the largest trading power in the region. Volume foreign trade(2001) - about 240 billion US dollars. Export - $122 billion, incl. products of the electronic and electrical industry, consumer goods, natural rubber processing products, petroleum products. Mainly sent to Malaysia (18%), USA (17%), Hong Kong (8%), Taiwan (6%), EU countries (6%). Imports - $116 billion: machinery and equipment, fuel, chemicals, food. Main import partners: Japan (17%), Malaysia (17%), USA (15%), China (5%).

From 1959 to 1990, during the reign of Lee Kuan Yew, Singapore, deprived of resources (even receiving water from Johor in Malaysia), was able to solve many internal problems and made the leap from a third world country to a highly developed country with a high standard of living.

In 1965, Singapore gained independence from Malaysia.

At the time of independence, Singapore was a small, poor country that had to import even fresh water and construction sand. Neighboring countries were unfriendly, and a third of the population sympathized with the communists. Lee Kuan Yew characterized himself and his associates as “a group of bourgeois, English-educated leaders.”

Strategy economic development Lee Kuan Yew's government was built on turning Singapore into a financial and trading center of Southeast Asia, as well as attracting foreign investors. “We welcomed every investor... We simply went out of our way to help him start production,” wrote Lee Kuan Yew. As a result, “American multinational corporations laid the foundation for Singapore’s large-scale high-tech industry” and this small state became, in particular, a major manufacturer electronics.

At independence, Singapore suffered from high corruption. Lee Kuan Yew described the situation as follows: “Corruption is one of the features of the Asian way of life. People accepted rewards openly; it was part of their lives.” The fight against corruption began "by simplifying decision-making procedures and removing any ambiguity in the laws by issuing clear and simple rules, including the abolition of permits and licensing." The salaries of judges were raised sharply, and the “best private lawyers” were hired to fill judicial positions. The salary of a Singaporean judge reached several hundred thousand dollars a year (in the 1990s - over $1 million). Civil servants holding responsible positions had their salaries raised to the level typical for top managers of private corporations. An independent body was created to combat corruption in the highest echelons of government.

English language became mandatory for study in all schools, universities were transferred to teaching in English. The government spent large sums for the education of Singaporean students at the best universities in the world.

Singapore has state system education, one of the best in the world. English has been adopted as the main language of instruction, with the goal of strengthening the multinational state and quickly joining the global world. There are 6 local universities in the country, including the state-owned National University of Singapore.

The government attached great importance to making the majority of the population homeowners. In the 1960s, a mortgage lending system was created, housing construction increased sharply and by 1996, only 9% of apartments were rented, and the rest were owner-occupied.

Singapore's area is 714.3 km² (2011), an area gradually increasing due to the land reclamation program that has been in place since the 1960s. Through the implementation of land reclamation projects, the area of ​​Singapore was increased from 581.5 km2 in the 1960s to 704 km2 in at the moment; this area could grow by another 100 km2 by 2030. Currently, the state of Singapore consists of 63 islands. The largest of them is Singapore (the main island). Singapore is the second most densely populated country in the world.

Singapore is a parliamentary republic. Executive power belongs to the cabinet of ministers, headed by the prime minister; the president plays a more representative role, but in some cases can veto critical decisions.

The Singapore government has created an extremely efficient and transparent market economic system in the country. In addition, the government has a reputation for being honest and non-corrupt.

Singapore has an effective healthcare system, despite its relatively low budget expenses compared to developed countries. World organization health care places Singapore sixth in the world in its report. Overall, Singapore has the lowest infant mortality rate in the world over the past twenty years. The average life expectancy in Singapore is 79 years for men and 83 for women, according to this indicator the country ranks 15th in the world ranking. Almost the entire population has access to quality water and sanitation.

Lee Kuan Yew wrote about his political credo: “We used the advantages that Great Britain left us: the English language, legal system, an administration devoid of partisan bias. We have carefully avoided the use of welfare state methods because we have seen how the great British people have become mediocre as a result of socialist equalization.” Subsequently, Lee Kuan Yew expressed admiration for Margaret Thatcher, who in turn stated that “Singapore once learned from Great Britain, and now we are learning from Singapore.”

Singapore is a highly developed country with a market economy and low taxation, in which multinational corporations play an important role. The gross national product per capita is one of the highest in the world (in 2008 - $38.9 thousand). Singapore's economy took 3rd place in the WEF competitiveness ranking in 2009.

Singapore is a low tax country. A company's taxable profit (income minus expenses) is taxed at a flat rate of 17%, regardless of whether the company is local or foreign (Chapter 134 of the Laws of Singapore).

Singapore is considered one of the East Asian tigers for its rapid economic growth to the level of developed countries. The country has developed electronics production (many well-known European, American, Japanese companies, as well as Singaporean ones, for example Flextronics), shipbuilding, and the financial services sector. One of the largest manufacturers of CD drives. Large-scale research is underway in the field of biotechnology. Singapore is one of the largest international centers for breeding ornamental fish for export. Singaporean holding Raffles owns the international hotel chain Swissotel. The port of Singapore is one of the largest ports in the world, and in many respects it holds first place.

Since 2008, the Formula 1 night stage has been held in Singapore. The 2008 Singapore Grand Prix was the first night race in Formula 1 history.

The economy is heavily dependent on exports, especially in the areas of consumer electronics, information technology, and pharmaceuticals. (Source: Wikipedia)

Question 1. Does a country's economic development model affect the standard of living in that country? Or is the expression that “everything depends on each individual person; prosperity can be achieved in any country” true?

Thesis. The standard of living in a country depends by 50%, if not more, on the chosen economic development model.

Example 1. South and North Korea.

Example 2. USA and Argentina, USA and Cuba.

Example 3. Germany and the GDR.

There are quite a lot of similar historical examples and analogies.

Example 1. South and North Korea. In 1948, on the Korean Peninsula, the once united state of Korea was divided into two parts - South and North Korea. The first formed a market model of the economy, the second - a planned command-type model. After 65 years, the result is as follows. Today, South Korea is an economically developed country with a high level of per capita income. The country ranks 13th in the world in terms of GDP (at parity purchasing power) and 15th in the world by nominal GDP. Gross national product per capita increased from $100 in 1963 to $23,000 in 2012. As in others high developed countries, by the beginning of the 90s, the service sector became dominant in the country’s economy, and now it accounts for 2/3 of the total GDP. At the same time, North Korea is one of the poorest countries in the world and periodically faces famine and shortages of essential goods. The country has a backward economic structure, agriculture accounts for 30% of the GDP (collectivization was carried out in the country in 1958, collective farms were formed). The majority of North Korea's working population earns money unofficially in the private sector due to low wages in state-owned enterprises. The country constantly receives significant humanitarian assistance in order to avoid famine. Source: Wikipedia.

Example 2. Argentina and the USA. A century ago, the United States and Argentina were quite comparable countries in terms of development. In the last years of the 19th century, Argentina's per capita GDP was slightly higher than that of France, and a third higher than that of Italy. Millions of European migrants at the beginning of the twentieth century seriously thought about the question of where to go - to Buenos Aires or New York (according to statistics, from 1857 to 1950, 7 million Europeans moved to Argentina, while 25 million moved to the USA. ; this despite the fact that the territory of Argentina is 3.5 times smaller than the territory of the United States). Today such a choice may seem like a joke. One state became a superpower (6th in terms of GDP per capita), while the other became famous as a serial defaulter. At the end of 2012, Argentina experienced another severe economic crisis. There were store robberies in the country, which escalated into mass attacks on supermarkets.

Why has Argentina failed to realize its potential? Argentina fell into a long “Populist tailspin” or, in other words, fell into a “Dead Loop” (the expression American economist Rudy Dornbusch) or into the “Loop of Populism” (the expression of the Belarusian economist Leonid Zlotnikov). Argentina is a classic example of economic populism, which was characteristic of almost all Latin American countries in the twentieth century. However, some, such as Brazil and Chile, have escaped dead loop(or in other words, "loops of populism"). Argentina has not managed to do this so far. Every time the population brings a new populist to power. Moreover, it is traditionally believed that Argentina is a country with highly qualified personnel. The capital of the state, Buenos Aires, is home to 35% of the country's population. And now the Kirchner family is in power. The current president of the country is Cristina Kirchner, who is the wife of the former president of the country, Nestor Kirchner. Both of them belong to Peronist Party "Front for Victory" (Juan Peron is the former president of Argentina who ruled from 1943 to 1955, and his period of rule has gone down in economic history as a classic example of economic populism).

Reference. The politics of populist and demagogue Juan Peron. Juan Peron completely isolated Argentina from the outside world. As a result, by 1960 the average level of import tariffs reached 84%, while in developed countries it dropped to single digits.

Juan Peron had a love for high technology and declared that his state would be the first to conduct a thermonuclear fusion reaction. The colonel saw the reason for the troubles in the fact that the country had turned into an economic colony, exporting cheap raw materials and importing expensive industrial goods.

He relied on redistribution rather than development, namely he supported urban population to the detriment of development rural population and agriculture. He pursued a policy that focused on the redistribution of resources between different groups of the population with inattention to inflation and fiscal risks. The consequences of such a policy hit everyone. Workers went on strike, demanding more handouts, the budget deficit grew, and inflation spiraled out of control.

The standard sequence of populist economic policies in Latin American countries, including Argentina:

Phase 1. The government accelerates economic growth by transferring resources from donor export sectors to sectors of national pride, usually engineering (in our case, agriculture and construction). And at the same time stimulating demand through increased wages. The economy and welfare begin to grow, and with it the popularity of the government.

Phase 2. Macroeconomic imbalances appear. There is a deterioration in the balance of trade and payments, a reduction in foreign exchange reserves, an increase external debt, budget difficulties are growing. However, against the backdrop of economic growth, few people care about these little things.

Phase 3. The commodity deficit in the state-controlled sector is rapidly increasing, the growth of free prices is sharply accelerating, attempts to freeze prices lead to a worsening of the commodity deficit, and the inevitable devaluation of the national currency results in an explosion of inflation. Tax collection is deteriorating, the budget is falling apart, and the level of well-being of the people is declining.

Phase 4. The government falls, and the new authorities, as a rule, continue to follow the policies of centuries-old economic populism, based on the romanticization of the relationship between the people and the government.

The Republic of Singapore has gained popularity in the world as the fourth “Asian Tiger”. At its core, Singapore is an island located near such an entity as the Malaysian Peninsula. Although Singapore is an offshore tax haven and thousands of companies see it as a tax haven, the state has not been included in any of the blacklists.

In the distant past, Singapore was part of the British Empire, and in 1963 it joined the Federation of Malaysia, and two years later it declared full independence.

Even today, Singapore continues to maintain contacts with Great Britain, and its Constitution is largely based on British law. English is the key language for both commerce and administration in this cosmopolitan country where Chinese culture stands out. Today, Singapore is inhabited by more than four million people.

As we can see, the population of Singapore is relatively small, but there are many corporations on the island with a market capitalization exceeding several billion dollars.

One of the largest companies in Singapore today is Wilmar International Limited. It was founded in 1991. Initially, the company specialized in oil production and trade with China. The company radically changed its business in 2006, when it acquired palm oil production from Robert Kuok for $4,300 million. Today the company grows and sells food products, and has about 400 industrial enterprises in Asia. The company also operates in Asia, where it has 160 thousand hectares of cultivated area. The stock currently trades at S$3.11 per share, has 6.4 billion shares outstanding and has a market capitalization of S$19.91 billion.

Singapore Telecommunications is renowned for serving more than 290 million customers. This company operates not only in Singapore, but also in Europe, Asia and the USA.

Market value This company is currently worth S$60 billion, with approximately 15,900 million shares issued at SGD 3.81.

The DBS Group holding unites a huge number of banking and credit institutions, employing more than 14 thousand people. This corporation enjoys great interest and serves customers not only in its homeland, but throughout Southeast Asia. Today, the market value per share is SGD 18.52, and the market capitalization is SGD 45.65 billion, with approximately 2.4 billion shares outstanding.
Also popular banking institutions United Overseas Bank and Oversea-Chinese Banking, each employing 20 thousand people. These companies have approximately the same market capitalization (S$36 billion and S$38 billion respectively). United Overseas Bank's share price is S$22.56, while Oversea-Chinese Banking's share price is S$9.75. This discrepancy in share prices for companies with the same market capitalization is explained by the large difference in the number of shares. Thus, United Overseas Bank issued approximately 1.6 billion shares, and Oversea-Chinese Banking almost 4 billion.
Keppel Corporation is also known in Singapore as a company engaged in a wide range of activities. The company provides financial services, is engaged in oil production, has its own fleet, and produces equipment for all industries. As you can see, even if one or more areas of activity become unprofitable, the company can always focus its efforts on another. This is evidenced by the company's capitalization, which amounts to SGD 19.17 billion. To date, the issuer has issued nearly two billion shares priced at S$10.52.
An overview of the corporations of the Republic of Singapore would not be considered relevant if the article did not mention the national carrier. Singapore Airlines was founded on May 1, 1947. Initially, its name sounded like Malayan Airways. According to the audit firm Skytrax, Singapore Airlines receives five out of five stars every year, which is due to a good approach to organizing its business. Singapore Airlines flies to 40 countries. It has an extensive fleet of aircraft, most of which have a three-class configuration - first, business, economy. The company was named SIAL on the Singapore Exchange. The company's market value was S$11.96 billion. There were 1.175 billion shares outstanding, currently priced at SGD9.95.

Singapore may have made the transition from industrial to post-industrial production, but today there are quite a lot of companies on the island that produce a wide variety of electronics. This is what Flextronics International Ltd does. The company produced components for computers, televisions, and smartphones. It was this company that produced the Xbox and Xbox 360 consoles, which are wildly popular. Today the company owns more than 130 sites involved in the production of software and components. They are located in more than thirty countries around the world.
The shares of this company are listed on American market. The price of one share is 10.35 US dollars, the market capitalization exceeded 6.18 billion US dollars. To date, the issuer has issued more than half a billion shares.

As you can see, the activities of Singapore companies are very diverse. Among them you will certainly find a corporation, investments in which will pay off and bring you significant dividends