When Malaysia and Singapore separated in 1965, their economic conditions were almost the same. But 50 years after, the economic strength of Singapore is greater than Malaysia. GDP per capital at current price for Malaysia and Singapore was US$10,538 and US$55,182, respectively, in 2013. Singapore is five times higher than Malaysia.
In terms of constant 2005 US$, it was US$1,173 and US$2,915, respectively, in 2013. In purchasing power parity 2001 international dollar, it was $22,589 and $78,237, respectively, in 2013. The graphs below show the distinct differences between the two countries.
Both countries were British colonies and thus inherited with quite similar political and economic institutions at the time of their independence. However, those initial conditions did not warrant a similar economic performances over time. Is this different outcome the result of leadership or the outcome of different economic policies or a combination of these two broadly defined factors?
Most likely, it does not require a genius or a Nobel economics laureate to explain the underlying reason. Instead, it is obvious that the citizens in both countries could explain what made the difference quite easily.
In terms of constant 2005 US$, it was US$1,173 and US$2,915, respectively, in 2013. In purchasing power parity 2001 international dollar, it was $22,589 and $78,237, respectively, in 2013. The graphs below show the distinct differences between the two countries.
Both countries were British colonies and thus inherited with quite similar political and economic institutions at the time of their independence. However, those initial conditions did not warrant a similar economic performances over time. Is this different outcome the result of leadership or the outcome of different economic policies or a combination of these two broadly defined factors?
Most likely, it does not require a genius or a Nobel economics laureate to explain the underlying reason. Instead, it is obvious that the citizens in both countries could explain what made the difference quite easily.
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