The document discusses drivers of globalization such as developments in transportation and communications technology which have made the world smaller and allowed faster transfer of information. It also discusses the impacts of globalization including increased economic competition and standards of living but also social impacts like loss of local culture and environmental impacts like degradation. It then provides a case study of strategies adopted by Singapore to sustain economic development in a globalizing world such as diversifying its economy, nurturing small businesses, expanding its market through economic cooperation, and managing its environment and resources.

1. Sustaining Economic Development in a Globalizing World Drivers of globalization

2. Drivers of Globalisation Developments in transportation and communications Transporting products, people, materials and information from one place to another

3. Drivers of Globalisation Transportation Made the world smaller Use of steam engines, jet aircraft, vessels, containerisation Airports, seaports, railways and highways Efficient network and movement

4. Drivers of Globalisation Communications Use of telephone, emails, fax, video conferencing, satelite technology, optical fibre, internet Fast transfer of information Quick access to information about new products and places Better coordination and control to worldwide activities

5. Drivers of Globalisation Transnational Corporations (TNCs) Microsoft Corporation, Toyota Motor Source for bigger market, lower costs Source for components around the world

6. Sustaining Economic Development in a Globalizing World Impact of Globalisation

7. Impacts of Globalisation Economic Impact Improve standard of living Increased competition among nations

8. Impacts of Globalisation Social Impact Increased awareness of foreign culture Loss of local culture

9. Impacts of Globalisation Environmental Impact Environmental degradation Deforestation Global warming

10. Impacts of Globalisation Economic Impact Improve standard of living Increased income levels Yr 2000, $4940 Yr 2004, $5170 Yr 2005, $5400 Increased revenue from foreign investment = improved education, health, defense, housing and transportation Varieties of foreign goods = quality life

11. Impacts of Globalisation Economic Impact Increased competition among nations TNCs looking for more attractive* c’tries for investment

12. Impacts of Globalisation Economic Impact Increased competition among nations TNCs looking for more attractive* c’tries for investment Eg. Dalian, in China (see pg 52) Eg. Danish Maersk Sealand shifting transhipment hub from Singapore to Malaysia’s Tanjung Pelepas, Johor Eg. Bangkok’s airport beating HK and Spore *attractive = well developed infrastructure, sound financial institutions, political stability, accessible transportation routes, low tax rate, encourages R&D, support use of IT and high tech industries

13. Impacts of Globalisation Economic Impact Talent Find employment in other c’tries 2.5% of world’s population live outside their birth c’try Brain drain problem

14. Impacts of Globalisation Economic Impact Widening income gap btw rich and poor Developed c’tries experience rapid growth by drawing TNCs and talents from poor areas Developing c’tries faced trade restrictions, have lowly skilled workers, labour intensive industries, poorly paid by TNCs

15. Impacts of Globalisation Social Impact Increased awareness of foreign culture through travelling, surfing the internet, watching foreign films

16. Impacts of Globalisation Social Impact Loss of local culture Global brands create homogeneous culture Pop culture penetrates to many people

17. Impacts of Globalisation Environmental Impact TNCs set up factories, pollute the air, caused environmental degradation

18. Impacts of Globalisation Environmental Impact Environmental degradation Deforestation Forest cut down to make way for development Eg. Brazil’s success as a beef exporter Eg. Indonesia’s forests cleared for cash crops and development projects Eg. China’s Three gorges project Soil erosion, extinction of flora and fauna, flooding, water pollution, haze

19. Impacts of Globalisation Environmental Impact Environmental degradation Global warming Production of greenhouse gases into the atmosphere Increased global temperature

20. Impacts of Globalisation Environmental Impact Increase in an awareness of Environmental management Want to ensure sustainable development through the preservation of resources Eg. Conserving energy, use of alternative energy sources (wind, solar and geothermal power) Three Gorges Project – building a dam to generate power for industrialisation

21. Impacts of Globalisation Environmental Impact Increase in an awareness of Environmental management Want to ensure sustainable development through the preservation of resources Eg. Conserving energy, use of alternative energy sources (wind, solar and geothermal power) Three Gorges Project – building a dam to generate power for industrialization

22. Sustaining Economic Development in a Globalizing World Case Study: Singapore

23. Case Study: Singapore Challenges in Singapore Transnational terrorism Ageing population Rise of China and India as competitors Outbreak of diseases Economic slowdown in other countries Maturing domestic economy

24. Case Study: Singapore Strategies to overcome challenges Diversifying the Economy to reduce dependency on a single industry/ market Nurturing growth of SMEs to provide jobs and support operations of TNCs

25. Case Study: Singapore Strategies to overcome challenges Diversifying the economy Venture into Life Sciences A*STAR to manage R & D aspects Set up bio-medical research institution, IMCB (Institute of Molecular and Cell Biology) Eg. Diagnostic testkit for SARS antibodies

26. Case Study: Singapore Strategies to overcome challenges Diversifying the economy Attracting TNCs Generate jobs Affirms Singapore’s position Eg. Seagate’s manufacturing activities in Singapore

27. Case Study: Singapore Strategies to overcome challenges Diversifying the Economy Attracting TNCs Generate jobs Affirms Singapore’s position Eg. Seagate’s manufacturing activities in Singapore

28. Case Study: Singapore Strategies to overcome challenges Diversifying the Economy Focus on service industry – education Regional hub for education through the set up of branches of international universities to attract talents Eg. University of Pennsylvania's Wharton School of Business, University of Chicago Graduate School of Business, Shanghai Jiao Tong University, Stanford University

29. Case Study: Singapore Strategies to overcome challenges Diversifying the Economy Focus on service industry – tourism Need for Singapore to be innovative in offering man-made tourist attractions Compete with other countries with natural attractions and man-made attractions Eg. IRs (Integrated Resorts in Marina Bay and Sentosa) to generate revenue and create jobs

30. Case Study: Singapore Strategies to overcome challenges Nurturing growth of Small and Medium Enterprises (SMEs) What are SMEs’ role? Providers of jobs Support operations of the TNCs Enhance Singapore’s attractiveness Eg. Polar Café – a successful SME

31. Case Study: Singapore Strategies to overcome challenges Nurturing growth of Small and Medium Enterprises (SMEs) Shortcomings of the SMEs Lack of resources Lack of expertise in using advanced technology Lack of skilled professionals to manage company – more family-run Lack of capital to venture to overseas market

32. Case Study: Singapore Strategies to overcome challenges Nurturing growth of Small and Medium Enterprises (SMEs) Government’s role in supporting SMEs Loan schemes from banks ASME (Association of Small and Medium Enterprises) to provide assistance Tax exemption up to three years

33. Case Study: Singapore Strategies to overcome challenges Venturing abroad - regionalization Investing in countries with abundant land, lower labour costs and new market Provide expertise and capital to develop industrial parks in return for land and labour for Singapore companies

34. Case Study: Singapore Strategies to overcome challenges Venturing abroad – regionalization Ensures Singapore’s economic growth is maintained Investment opportunities are spread Investing in countries with abundant land, lower labour costs and new market Provide expertise and capital to develop industrial parks in return for land and labour for Singapore companies

35. Case Study: Singapore Strategies to overcome challenges Venturing abroad - regionalization Examples Suzhou Industrial Park = collaboration between China and Singapore Singapore Tech Park = collaboration between India and Singapore SingTel has investments over 20 countries Singapore government invests in new markets such as Middle East, Latin America and Central and Eastern Europe

36. Case Study: Singapore Strategies to overcome challenges Venturing abroad - regionalization Shortcomings Less attached to Singapore Brain drain

37. Case Study: Singapore Strategies to overcome challenges Expanding market through economic cooperation Problem Small domestic market

38. Case Study: Singapore Strategies to overcome challenges Expanding market through economic cooperation Solution Sell products to bigger market

39. Case Study: Singapore Strategies to overcome challenges Expanding market through economic cooperation How to do it? FTAs (Free Trade Agreements) ASEAN, NZ, Australia, USA, India, Jordon and South Korea SEZ (Special Economic Zones) Less stringent economic laws Tax and business incentives Revitalise the islands of Batam, Bintan and Karimun

40. Case Study: Singapore Strategies to overcome challenges Managing resources efficiently Develop people by Promoting local entrepreneurship and technopreneurship Willing to take risks Coming up with new products Amending bankruptcy laws Giving recognition to outstanding local entrepreneurs Eg. Kenny Yap of Qian Hu Fish Farm

41. Case Study: Singapore Strategies to overcome challenges Managing resources efficiently Promoting continuous learning among workforce WDA (Workforce Development Agency) to ensure workforce remains competitive Skills upgrading ESS (Employability Skills Systems) to help workers adapt to new jobs SDF (Skills Development Fund) provides financial assistance for skills upgrading

42. Case Study: Singapore Strategies to overcome challenges Managing resources efficiently Attracting Foreign Talent To meet manpower needs Bring in overseas contacts More business opportunities, create more jobs Diversify cultural landscape of Spore Eg. Engineers, Doctors, Craftsmen, artists, chefs etc.

43. Case Study: Singapore Strategies to overcome challenges Managing the Environment - land To sustain growth and enjoy good quality of life Eg. Marina Bay will be integrated as a financial hub with quality housing, recreational and leisure facilities Eg. Jurong Island is a chemical hub Eg. Sungei Buloh Wetland Reserve, Chek Jawa are preserved nature sites Eg. Pulau Semakau used for waste disposal

44. Case Study: Singapore Strategies to overcome challenges Managing the Environment – Cooperation with organizations To sustain growth and enjoy good quality of life Eg. Cooperation with ASEAN to fight haze Eg. Signed international agreement that restricts the use of harmful ozone depleting substances (eg. CFCs)

45. Case Study: Singapore Strategies to overcome challenges Managing the Environment – Public Education To sustain growth and enjoy good quality of life Recycling in schools Clean and Green Week Exhibitions, seminar, workshops Beach cleaning Planting of trees “Bring Your Own Bag” day at supermarkets