ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)
Financial System
SINGAPORE: THE ROLE OF FINANCIAL SYSTEM IN THE ‘ECONOMIC MIRACLE’
Karina B. BAKHTARAEVA
Primakov Institute of World Economy and International Relations of Russian Academy of Sciences,
Moscow, Russian Federation
kainka@mail.ru
Article history:
Received 20 August 2015
Accepted 3 September 2015
JEL classification: G28, N25,
O16, O23, O24
Keywords: financial system,
financial development, economic
modernization, financial market
Abstract
Importance Whereas the Russian economy should be modernized to ensure its further growth
and attract investments, it would be reasonable to consider the economic miracle of Singapore,
identify key drivers of its robust economic and financial development, including the role of the
financial system.
Objectives The research determines the key factors of Singapore’s economic miracle, especially,
the role of the financial system and the financial development policy as part of Singapore’s
economic modernization.
Methods Using methods of systems, comparative and statistical analyses, I reviewed the basic
milestones and found key factors of Singapore’s economic modernization.
Results The article presents the preconditions for Singapore’s economic miracle, i.e. the
development strategy drawing upon the unique geographical location of the country, and goals of
transforming the country into a global trade, transportation and financial center. The strategy also
provides for the economy to be flexibly and manually steered; arranging for rapid growth of the
financial system and economy, i.e. the financial development policy; supporting the high level of
savings and savings ratio during modernization; focus on foreign investments and export-oriented
manufacturing.
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