, 30). Goals are something Singapore holds dear. Among them are "the diversification and upgrading of industry while developing the island into a center of regional services and international finance." Skill-intensive and high-tech industries are encouraged (Buchanan, 164). Among the main industries that have made Singapore successful are as follows. Manufacturing is responsible for about 25% of the GDP. From 1965 to 1980, manufacturing grew at an annual rate of 13.3%. Other major activities are petroleum refining, and machinery and appliances (including the large electronics industry). Interestingly, agriculture is responsible for the employment of only about 1% of the labor force (Wood, 139-40). This is a drastic difference to many of its neighbors and the reason will be introduced shortly. Though Singapore is a capitalist society, their monetary policy hardly takes a laissez faire approach. In their commitment to monetary stability, the government sets economic goals and "unhesitatingly interferes with market forces to achieve those goals" (Wood, 30). Examples of how the government accomplishes its goals are discussed briefly below. Because land space is so limited, the government steps in to make sure it is used in the most efficient way. Road construction is kept to a minimum by a 225% tax on new automobile purchases, cremation is encouraged, outlying villages are destroyed and its inhabitants transferred to urban high-rise housing, and agriculture has been nearly eliminated. The logic behind reducing agriculture is that it is very land intensive and cheap food is available from the nearby agricultural communities. This effectively leaves room for the ...
