Hong Kong and Singapore

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Prior to analyzing the situation of Hong Kong and Singapore, it is important to be cognizant of the fact that predictions of the future economic trajectories of these two city-states is certainly not an uncontested arena in the academic world. There are perhaps a few competing explanations for why Hong Kong might lag behind Singapore in terms of development in the long term, but unfortunately they do not concretely and convincingly sway the argument towards their favor. Some scholars argue for low fertility rate as an increasingly troublesome phenomenon for the Hong Kong economy going on into the future. Hong Kong’s fertility rate is one of the lowest in the world, and remains far below the replenishment rate. If fertility rate were low, then the government would inevitably have to divert resources away from long-term economic development projects and towards healthcare for the growingly ageing population. However, the problem with such an argument is that Singapore too is experiencing a similar issue. The average age of brides was 26.8 years old in 1998, and the trend has been upwards ever since. A later marriage means the likelihood of having fewer children increases, and thus family sizes are at risk of shrinkage. In fact, the 2012 figure puts Singapore and Hong Kong at an equal 1.3, meaning 1300 live births for every 1000 female. Consequently, it does not appear that either country has an advantage on this particular front.
Corruption can also be dismissed as a possible explanation after a close scrutiny of the available data. Marie Chêne, a program director for Transparency International, which is a non-profit organization dedicated towards monitoring corruption internationally, has hypothesized a relationship between cor...

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...hrough the straits, and in particular the deep water ports near Singapore’s waters. This belief is concurred by W.G. Huff in that “the importance of geographical consideration in its most recent…development emphasizes the continuity that has run through the island’s history”. For Huff, Singapore has historically been, and in the future likely to, fully utilize the natural advantages of Singapore’s geographical position in the world. It is clear that both countries are endowed with respective geographical advantage, with Hong Kong occupying an important position as the southern door towards Mainland China, and Singapore is positioned at the crossroad between Asia and the rest of the world. Therefore, the “locational advantage” theory cannot concretely conclude whether Hong Kong or Singapore would be more favored in terms of future economic planning and development.

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