STATEMENT BY MS. CLARICE LI, DELEGATE TO THE 67TH SESSION OF THE UNITED NATIONS GENERAL ASSEMBLY ON AGENDA ITEM 24, ERADICATION OF POVERTY AND OTHER DEVELOPMENT ISSUES, SECOND COMMITTEE, ON 5 NOVEMBER 2012

Thank you, Mr Chairman,

I align myself with the statements by Algeria, on behalf of the G77 and China, and the ASEAN statement on this agenda item.

Many people think of Singapore as a small, modern and densely populated city-state. While this is true of Singapore today, this was not the case several decades back. If we look back to 47 years ago when Singapore first gained independence, we struggled to survive on our own economically and financially, and faced several social challenges such as high unemployment, labour unrest, and inadequate provision of housing and education. Singapore, with the help and cooperation of UNDP and many other UN agencies which helped provide technical expertise along the way, has since ramped up our economic and social infrastructure and has made good progress thus far.

However, 47 years is not a long period of time in a nation’s history, and Singapore still has some way to go as we continue upon our path of development. Take education for example. Based on UN statistics, the average number of years of education received by people aged 25 and older in Singapore, at 8.8 years[*], is still below many other countries globally. While younger Singaporeans are well educated and most have post-secondary and above qualifications, about three quarters of our older resident workers aged 55 and above do not have post-secondary education qualifications.

Mr Chairman,

In the spirit of sharing experiences and lessons learnt, I would like to share some key principles underlying Singapore’s development strategies.

Inclusive economic and income growth is key

As the Secretary General’s report on Implementation of the Second United Nations Decade for the Eradication of Poverty (2008-2017) notes, sustained rapid economic growth is a necessary condition for poverty reduction. Singapore supports the report’s recommendation that the creation of productive employment and decent work should be at the centre of a policy framework for sustained and inclusive and equitable growth.  We believe that the creation of quality jobs and raising productivity are the most sustainable ways in which we can bring about higher wages, and also the best way to help the lower income.  A whole array of economic and tax strategies are implemented in Singapore to achieve these objectives. For example, the Jobs Credit Scheme, which was a one-off counter-cyclical measure, gave employers cash rebates for each local worker who was kept on their payroll, so as to sustain jobs to the maximum extent possible during the crisis.

An approach centered on opportunities, not entitlements

It is well accepted that social cohesion and well-being cannot be left purely to market forces. If left to the free market, incomes will continue to diverge, and so will opportunities. This is why the Singapore Government has to intervene actively, but in a fiscally sustainable manner, and also in a way which complements our economic dynamism and work ethic.

Our approach to helping the lower income is therefore centered on opportunities, not entitlements. We focus heavily on providing opportunities for the lower income through areas such as subsidizing education; supporting employment through workfare, rather than welfare; and subsidizing home ownership for lower income Singaporeans.

What this strategy all adds up to is a progressive fiscal system. Putting the taxes and transfer system together, it is estimated that for every dollar that a low income household pays in taxes over their lifetime, they get back more than four dollars in Government transfers and benefits.

Effective and efficient implementation

Beyond broad policy strategies, it is ultimately effective implementation which will enable the strategies to come to fruition. This is especially relevant for a country like Singapore, where both Government taxes and expenditures are low as a percentage of GDP by international standards. This means that Government expenditures have to be targeted and administration costs of schemes kept low, while still ensuring effectiveness and timeliness. Efficient implementation also means that we sometimes have to sacrifice policy comprehensiveness for efficiency. For example, during the crisis, the Government had also considered providing businesses cashflow relief based on rental costs they were incurring, but had decided against it as we would then have to ask businesses to submit rental information.

Mr Chairman,

Like many other countries, Singapore also faces significant challenges in the developmental road ahead. The forces of globalization, while bringing about economic opportunities and growth, have at the same time caused increasing inequality. The incomes of our lowest income workers have stagnated over the past decade.  A rapidly ageing population will also inevitably stress our social infrastructure and expenditures.

Regional and international partnerships

While each Member State should take primary responsibility for its own development, national strategies against poverty can also be complemented by assistance from regional and international partners. Cross-regional cooperation offers many benefits - the exchange of best practices, the mobilisation of resources and technical expertise, as well as the creation of new economic opportunities. The efforts of ASEAN in this regard have been highlighted in the ASEAN statement.

Singapore also continues to provide assistance to other developing countries through the Singapore Cooperation Programme (SCP) by means of training and sharing of technical expertise in such areas as education, environmental management, economic development and public administration and governance. Since 1992, Singapore has organised training courses for more than 80,000 public officials from 170 countries.

Mr Chairman,

Singapore’s experience of poverty reduction through economic growth is not unique. Many countries have made that transition, and we hope that many other countries can as well. Singapore is committed, and looks forward to continuing our support of the efforts of the United Nations and the international community in helping partner countries in the achievement of the Millennium Development goals.

Thank you.

[*] Based on data from UNDP’s International Human Development Indicators