Sunday, 2 March 2014

Sustainable advantage?

Till today, I have found the tennis scoring system intriguing. First, the numbers are not in sequence nor follow any discernible arithmetic progression. Then there is this business of "advantage", where you can only win a "deuce" point after you have earned the "advantage" to do so. I don't understand it but I must say it certainly prolongs the game and adds real excitement. Then again, is it that to comprehend? Aren't victories won after one had secured an advantage over a rival?

I flew in last Friday night from Bangkok into Singapore. Bangkok is in a political mess. The street protests seem to be petering out (there was hardly any protesters left). There are now just barricades that the authorities have not/dare not remove for fear of inflaming the situation. As a result, the roads are still blocked and causing much unnecessary inconvenience. 

Still, Bangkok will continue to grow economically. The last time there was such an impasse, the economy managed to notch 5% growth. Why? There is such a thing as sustainable advantage ... And once attained it is really not easy at all to lose it. Bangkok's private sector, astutely controlled by a handful of elite families continue to produce goods and services that people want. And despite the logistical difficulties, these goods and services are still finding its way to customers and hence the economy. [Besides, it has been postulated that the protests are sponsored by these tycoons anyway and so they are merely paying for it themselves, directly or indirectly]. 

The Thai economy, or any econmy for that matter, will really suffer when the capacity to produce is fundamentally affected... And that won't happen anytime soon, though the way country's education system is run (it's been reported that the teachers there can't even pass their own national exams), I imagine the next generation will not be as productive as this.

If the don't fix it, Thailand's advantage won't be sustained and once lost, it's just as hard to rebuild. Just ask the current President of Myanmar, U Thein Sein. I can imagine freeing Aung San Suu Kyi took real political will but that will pale in comparison to the challenges ahead in rebuilding the economy. He will need a lot more fortitude. I was in Myanmar last year (Nyapidaw for a WEF event and then Yangon to fly out from) and even in these major cities there were no street lamps. This essential public good will need to be put in place, and it won't be cheap. Myanmar needs to find the money to do so and until it does it just won't be as efficient as it's neighbours. It's richer neighbour, Singapore, for instance is most brightly illuminated as seen from my flight a site as landing.

Yet behind the bright lights, Singaporeans are facing some blues as the nation tries to adjust to high costs afforded by its high living standards. But for the moment, it's advantage as the most efficient, best managed capital in Southeast Asia gives it an advantage that should see it still in pole position for years to come. 


The question though is how long before this advantage starts to erode. I fear that the seeds have already been planted. As Singapore, for political reasons, put Singaporeans first, it has started going down the path of mollycoddling the society and any mollycoddled people, be it a race or an entire country, will start to lose their drive, and ultimately their capacity. Just ask Malaysia and Saudi Arabia. 

So, there you have it: two ways to sustain national advantage... Give your citizens the best education your money can buy and help them to help themselves. Easier said than done. 'Nuff said!

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