Priorities of development and growth of regions and countries of Black Sea Basin. By Tony Siddique

SPEECH BY SPECIAL ENVOY TO

UKRAINE, H.E. AMBASSADOR

TONY SIDDIQUE, AT THE

INTERNATIONAL BLACK SEA

ECONOMIC FORUM,

CRIMEA, UKRAINE

Session Topic: Priorities of Development and Growth of Regions and Countries of Black Sea Basin, 7

October 2011, 3.00 pm to 4.30 pm

Where in the world is Singapore?

Introduction

“Small countries perform no vital or irreplaceable

functions in the international system. Singapore

has to continually reconstruct itself and keep its

relevance to the world and to create political and

economic space. This is the economic

imperative for Singapore.”

Mr. Lee Kuan Yew, First Prime Minister to Singapore

Charting Progress

Independence on 9 August 1965 – uncertain place on

the world stage (failure to gain international recognition

originally)

Population of 2 million with no natural resources in a

uncertain environment.

Against formidable odds, Singapore is now a vibrant

international city.

From 1960-2010, GDP increased 41-fold to more than

US$220 billion.

World’s 2nd largest container port and fourth-largest

financial centre.

Here and Now:

How and Why?

Good strategic location helps but not sufficient in itself.

Adopting a pro-business, pro-foreign investment

economic policy.

Government sets up the Economic Development Board

(EDB) to moderate and attract foreign capital.

Offering of a politically stable country with a well-trained

English-speaking workforce (increases accessibility)

Overseas corporations provided with a manufacturing

base to operate in Government developed industrial

towns and ready-to-move-in factories.

Reaping the benefits

Corporations came with technology and expertise which

Singaporeans could learn from.

Providing incentives and encouraging Multi-National

Companies (MNC) means that Singapore now houses

more than 7,000 MNCs from the developed world.

This leads to an expertise spill-over from foreign capital

to local workers, leading to Singapore’s ability to develop

industrial parks in places such as Bangalore

(India), Suzhou and Tianjin (China).

To maintain the rhythm:

Crucial to maintain continuous development of

infrastructure, as industrialization and growing population

means that poor infrastructure will impede economic

development.

Workforce must be upgraded in its employment level to

enable country to move out from labour-intensive to

capital-intensive to knowledge based economy.

Focusing on legal

architecture, security, transportation, power, water, food,

health and education – all key sectors for modernization.

Multilateral Engagement:

“No Man is an Island” – John Donne

Stability and prosperity are inevitably tied to that of its

immediate neighbourhood. This is even more important

in a globalized world.

In 1967, against the backdrop of the Cold War, ASEAN

was born.

ASEAN is now 44 years old.

Regional Integration matched by strong economic

potential and a combined market of 600 million people.

Ten different countries, different skill-sets, variety in

resources – Nissan’s model of capitalization in SEA

What are the ASEAN countries?

Progressive Integration:

ASEAN Free Trade Area (AFTA) and ASEAN

Investment Area (AIA)

Further FTAs with other regional countries – China,

Japan, South Korea, India, Australia and New Zealand

are some examples

Building up people-to-people linkages through cultural

exchange and regional community projects.

The emergence of a common ASEAN identity.

Target of an ASEAN economic community by 2015 –

one common market and production base.

Why ASEAN?

As a necessity to survive.

Rise of China and India transformed the strategic landscape and created new dynamics.

Companies and Investors paying attention to Asia but focusing on these two particularly.

A need to stay in the game and remain relevant, ASEAN offers to be a strong and effective grouping to partner India and China effectively.

Singapore has helped link up major powers through forums like ASEAN+3, ASEAN Regional Forum (ARF) and East Asia Summit.

Security and Economic cooperation come hand-in-hand.

In Summary:

Each country and region has different dynamics and

historical experiences.

But certain hard and fundamental truths translate across

national and regional boundaries.

At national level, critical role of investment

promotion, infrastructure and education is undeniable.

Workforce and economic development strategy must

work in tandem.

At regional level, multilateral organizations such as

ASEAN can provide the necessary external conditions

for economic prosperity.

Thank You:

Looking at recent developments in each Black Sea

country, with natural endowments and competitive

advantages, there is much potential to be harnessed.

All conditions are ripe for countries around the Black Sea

to benefit from, through working together and building a

region of economic opportunities, not conflict.

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And finally, Good Luck!

We will follow your developments with great interest and

wish you well in your efforts to secure your place in the

world, and a brighter future for your peoples.