Gdp Economics Essay Ideas

Economics Of Singapore Essay examples

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The Republic of Singapore celebrated its 42 years of independence in year 2007. Situated at the southern tip of Malaysia, Singapore currently holds a population of 4.68 million as of June 2007. At 704.0km2, it is ranked 4th in the world for its population density. During the past four decades, the economy as measured by real Gross Domestic Product (GDP), multiplied by over 20 times (Ghesquiere, 2007, p.11). As a small and extremely open economy, Singapore long term survival is very much dependent on the ability to maintain its viable position and remain afloat in the sea of global competition (Mun Heng et al, 1998, p.14).

The discussion of this article (extracted from “The Straits Times” on 29th Dec 2007) focus on the low…show more content…

Next, is the exceptionally strong increased of labour input which account for over a quarter of economic growth. Other contributions came from the improvement in human capital and rising total income of the people.

Economy of Singapore in the past
The Singapore economy had proved its resilience during the worst post-war recession and experience exceptionally high economic growth during the 42 years since its independence. For the period 1966-1973, the economy expanded consistently at a double-digit growth rate in real terms (Kum Poh, 1982, p.1). Gross Domestic Product (GDP) at constant prices continues to rise at an annual rate of 8 percent till 2005. With population growth at 2.1 percent, per capita GDP increased by 5.8 percent on average each year (Gesquiere, 2007, p. 12).

As mentioned by Neo Chian, the education sector has excellent growth prospects and can become a key contributor to our economy. In order to be a premier education hub in the region, the government has poured in millions of dollars to provide quality education for the locals as well as attracting foreigners to be educated here. While the development of Singapore into an education hub is seen as a major economic opportunity, Singapore also targets to be a tourism hub by 2015. Other factors contributing to the success to the economy growth includes the export-oriented economic policy framework, combined with state-directed investments in strategic

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Out of the carnage of the Great Depression and World War II rose the idea of gross domestic product, or GDP: the ultimate measure of a country’s overall welfare, a window into an economy’s soul, the statistic to end all statistics. Its use spread rapidly, becoming the defining indicator of the last century. But in today’s globalized world, it’s increasingly apparent that this Nobel-winning metric is too narrow for these troubled economic times. 

1937:Simon Kuznets, an economist at the National Bureau of Economic Research, presents the original formulation of gross domestic product in his report to the U.S. Congress, “National Income, 1929-35.” His idea is to capture all economic production by individuals, companies, and the government in a single measure, which should rise in good times and fall in bad. GDP is born.

1944: Following the Bretton Woods conference that established international financial institutions such as the World Bank and the International Monetary Fund, GDP becomes the standard tool for sizing up a country’s economy.

1959: Economist Moses Abramovitz becomes one of the first to question whether GDP accurately measures a society’s overall well-being. He cautions that “we must be highly skeptical of the view that long-term changes in the rate of growth of welfare can be gauged even roughly from changes in the rate of growth of output.”

1962: But GDP evangelists reign. Arthur Okun, staff economist for U.S. President John F. Kennedy’s Council of Economic Advisers, coins Okun’s Law, which holds that for every 3-point rise in GDP, unemployment will fall 1 percentage point. The theory informs monetary policy: Keep growing the economy, and everything will be just fine.

Alfred Eisenstaedt/Time&Life Pictures/Getty Images

1972: Upon being named king of Bhutan, Jigme Singye Wangchuck declares his aim is not to increase GDP, but GNH — “gross national happiness.”

June 1978: Writing in Britain’s The Economic Journal,Irving B. Kravis, Alan W. Heston, and Robert Summers compile the first estimates of GDP per capita worldwide, with figures for more than 100 countries.

Marie-France Rouze/AFP/Getty Images 

1990: The United Nations launches the Human Development Index, which measures such factors as education, gender equality, and health. U.N. economist Mahbub ul Haq convinces future Nobel laureate Amartya Sen to create “an index as vulgar as GDP but more relevant to our own lives,” as Sen remembers it.

December 7, 1999: The U.S. Commerce Department declares GDP “one of the great inventions of the 20th century.”

2001: The bursting of the tech bubble and the 9/11 attacks send the U.S. economy into a temporary tailspin. During the subsequent recovery, something unexpected happens: Although GDP rises between 2002 and 2006, personal incomes fall.

September 2006: China creates a new index for “green GDP” — a measure of national economic output that takes environmental factors into consideration. The first report finds that environmental damage, had it been accounted for, would have knocked 3 percent off China’s GDP in 2004.

Manpreet Romana/AFP/Getty Images

2008: The U.S. government begins funding the State of the USA project, designed to create a “key national indicator system” with hundreds of new data points to add nuance to standard GDP stats.


September 14, 2009: The French government releases a report, co-authored by Nobel Prize-winning economist Joseph Stiglitz, that calls for an end to “GDP fetishism.”

November 15, 2010: British Prime Minister David Cameron‘s government announces that it will, for the first time, survey happiness in addition to other economic measures. Who knew austerity would be so warm and fuzzy?

Oli Scarff/AFP/Getty Images

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