Goh Chok Tong: Sharing some perspectives on growth Speech Mr Goh Chok Tong, Senior Minister and Chairman of the Monetary Authority of Singapore, at the Group of Thirty(G-30) International Banking Seminar and Lunch, Singapore, 18 September 2006. *  *  *  The good, the bad and the ugly Let me first bid you a warm welcome to Singapore. I was recently invited by the World Bank to be a member of the Growth Commission chaired by Professor Michael Spence. So today's topic "Sharing Some Perspectives on Growth" fits me like a glove. In offering my perspectives, I shall draw heavily on the experience of Singapore. Forty years ago, soon after I started work in the Economic Planning Unit of the Finance Ministry, I was sent to do a post-graduate course in Development Economics at Williams College in the US. The course was designed for young officials from developing countries. There were 20 of us from 16 countries spanning four continents - Asia, Europe, Africa and Latin America. The countries included the Philippines, Pakistan, India, Yugoslavia, Egypt, Tanzania, Liberia, Honduras, Colombia and Mexico 1 The 1960s was dubbed the "Decade of Promise". An unprecedented number of colonies had just gained independence. My fellow students and I were taught the latest development theories. Brighteyed and bushy-tailed, we were full of hope. But 40 years later, history tells a different story. Only a few had our hopes fulfilled; most had their dreams dashed.
Good institutions help to accumulate experience, knowledge, expertise and resources to further build capacity, thereby sustaining growth. Poor institutions, on the other hand, could be exploited by those in power for their own benefit. Corruption can easily shave off a country's potential growth rate by a few percentage points. I should emphasise that having good institutions does not presume or argue for any particular political system. What is important is that the political system must work for the country based on its own history, cultural context, national conditions and the support of its people. 2  BIS Review 86/2006  The third pillar of effective implementation is ensuring social cohesion and forging social consensus. As policies impact on the people directly, it is important that there is social consensus and trust between the government and society, and between different ethnic and social groups. This can be achieved only if people are given equal opportunities to learn and work, progress according to merit and rewarded based on performance and contribution. The government and the more able must also help those less able, so that no one is left behind. Sustained growth often requires trading short-term pain for long-term gain. Even the best policies can be undermined if the people are not united behind their leaders. When there is social cohesion, the different groups in a country look beyond their immediate differences and co-operate to achieve their shared vision.