Singapore: political stability, economic development and pragmatic justice

1. Introduction
To a certain extent, Singapore's legal system can be regarded as a servant to political stability and economic development. Taking an instrumental perspective, 'efficiency, certainty and procedural fairness provided by the judicial framework buttress aspirations towards being an international trade and financial center'. (1) The Singapore government regularly cites laudatory reports about its legal framework in facilitating commercial transactions; for example, the World Competitiveness Yearbook consistently ranks Singapore first for legal framework. (2) P.H. Yong sharpens focus on the compelling link between Singapore's legal system and its excellent economic performance in the post-independence years. He states that the rule of law guarantees a certain environment giving local people, multi-national corporations and other foreign investors the confidence to invest in Singapore's physical, industrial as well as social infrastructure. (3) In order to promote economic development, the Singapore government also uses the judicial framework to maintain its desirable form of political stability. There is no doubt that political stability is one of the main prerequisites for economic development. (4) In the following discussion, I will examine the role played by Singapore's judicial system in achieving the political and economic goals of the government.

2. Pragmatic justice
2.1 Pragmatic conception of the rule of law
According to Albert Chen and Anne Cheung, there is a difference between fundamentalist and pragmatic conceptions of the rule of law. The former believes that 'certain principles that form integral components of the rule of law are sacred and inviolable, and cannot be sacrificed even if there are weighty policy considerations that suggest otherwise.'(5) The latter, on the other hand, takes a more flexible interpretation of the principles of the rule of law. According to the pragmatic approach, 'whether an action should be criticized as a violation of the rule of law should not be determined exclusively by reference to these principles, but should be determined after the other considerations have been fully taken into account.'(6)

2.2 Is the Singapore judicial system a pragmatic one?
Whether the Singapore judicial system is a pragmatic one remains a highly controversial issue in Singapore. The behavior of the ruling elites gives us the impression that the judicial framework is an effective instrument of the government. The leaders do not seem to pay adequate attention to civil liberties. Veteran opposition leader J.B. Jayaretnam criticized the Singapore judicial system for its inadequacy regarding deficient workers rights legislation. (7) Instead of assigning a high priority to rights protection, 'the judicial interpretation of constitutional liberties prioritizes statist over humane values by expansively constructing derogation clauses to curtail individual rights to serve public 'goods' relating to order, health and morality. (8) For example, the 1989 Clean Public Toilet Law fines a person up to US$300 for failing to flush toilets in restaurants, theatres or department stores. (9) This Law clearly shows that public health takes precedence over civil liberties in Singapore.

In fact, Singapore's courts often dismiss international and comparative civil liberties standards as unsuited to local social conditions. (10) Lee Kuan Yew tries to provide an ideological justification for the pro-communitarian slant manifested in the judicial interpretation of constitutional liberties. Placing stress on the virtues of individual subordination to the community, (11) Lee argues that the communitarian, organic and corporatist social order is believed to have underpinned the political stability and economic development of Singapore. Apart from paying inadequate attention to rights protection, the Singapore judicial system is criticized for its pro-government bias in politically sensitive cases. As the UN Special Rapporteur has correctly pointed out, 'the perceived judicial bias favoring the government could have stemmed from the very high number of cases won by the government or members of the ruling party in either contempt of court proceedings or defamation suits against government critics, whether media or individuals. (12) The protracted legal battles have bankrupted Singapore's opposition leaders such as J.B. Jeyaretnam and Chee Soon Juan. (13) Christopher Lingle, the defendant in one of the famous libel cases in Singapore, argues that the 'judges' loyalty to the regime is stronger than their dedication to the rule of law.' (14) Amnesty International, the International Commission of Jurists and the New York City Bar Association also strongly criticized the judicial processes of Singapore. (15) The above criticisms give us the impression that the Singapore judiciary is a pragmatic one.

3. An evaluation of the role played by the judiciary in achieving the political and economic goals of the government

3.1 Pragmatic justice and political stability
It is an unassailable fact that the Singapore judiciary has played an important role in maintaining political stability in this tiny city-state. Political stability has put Singapore in a position to develop its economy and legitimize the authoritarian rule of the People's Action Party (PAP). But assuming that political stability is a free lunch is a forlorn dream. It is worth noting that Singapore was clouded in political uncertainty in the early 1960's. If Singapore had not retained colonial preventive detention laws, it would have failed to silence government critics and combat communist insurgents. The Operation Cold Store in 1963 succeeded in breaking down the organizational structures of the Barisan Sosialis (BS). From then on, the BS could no longer challenge the PAP. (17) In response to harsh criticisms of the detention laws, Lee Kuan Yew argues that the Internal Security Act (ISA) serves Singapore's political stability and that subversives could not be allowed to escape simply because the government could not prove a case in accordance with strict rules of evidence in a court of law against them. (18) Following the attacks of September 11th, the ISA allowed the Singapore government to detain 15 terrorists of Jemaah Islamiah (JI) in December 2001. It is fair to say that Islam fundamentalism is a potential source of instability for Singapore. (19) Like Singapore, the US has detained some suspected terrorists at Guantanamo. These 'terrorists' could be held until the end of the war on terrorism without charge, indefinitely and forever if necessary. (20) It is hard to dispute the fact that preventive detention law is an effective weapon against terrorism in the post-9/11 period.

Apart from using preventive detention laws to quench political dissent, the government often sues its political enemies for defamation. Chee Soon Juan complained that 'Singapore has defamation without trial when it involves opposition politicians'. (21) In order to maintain political stability, Singapore has been extremely sensitive to racial and religious issues. Following the racial riot in Malaysia in 1969, the subject of racial harmony became a minefield of complexities in this multi-racial state. In response to the complicated racial and religious problems, Singapore introduced the Maintenance of Religious Harmony Act (MRHA) to maintain social harmony. The MRHA allows the minister to issue pre-emptive 'restraining orders' to 'gag' politicians or religionists thought to be mixing an incendiary cocktail of religion and politics. (22)

3.2 Pragmatic justice and economic development
When the PAP assumed power in 1959, they explored all possible means to attract foreign investors to come to Singapore. In order to attract multinational corporations to invest in Singapore, the government has tried to reduce opportunities for corruption and create a neutral playing field for investors. On the whole, the Singapore legal system is capable of handling commercial laws fairly. In fact, the legal system has played an indispensable role in the development of Singapore's financial markets. It is worthy to note that the recent development of sophisticated fee-based financial services has exerted great pressure on Singapore's legal system. (23) The introduction of new financial products may weaken the existing regulative regime. In spite of this challenge, the Singapore legal framework is capable of adapting itself to new changes in the financial markets. Since 2002, the Securities and Futures Act and the Financial Advisers Act have strengthened the operations of the financial system in Singapore.(24) Although some scholars argue that law has not played a significant role in promoting economic development in Singapore, we cannot turn a blind eye to the close ties between law and business confidence. Finally, law is likely to play an even greater role in the future as the Singapore economy becomes entrenched in the global economy.

4. Conclusion
The above analysis has shown that the Singapore judicial system has played an important role in achieving the political and economic goals of the government. On the economic side, the legal system deserves credit for creating a business-friendly environment in Singapore. However, a functional legal system is not sufficient for economic growth. Other factors may be more important, including sound macroeconomic fundamentals and management; a stable business environment with low inflation; prudent fiscal policies; exchange rates to support exports; high savings and investment rates; high-quality human capital; merit-based bureaucracies; low income inequality; export promotion; success in attracting foreign direct investment and political stability. (25) Foremost amongst these factors is political stability. Seen through the utilitarian prism of the economists, political stability is the most important prerequisite for economic development. Since 1959, the PAP has consistently used its judicial framework to maintain political stability in Singapore. In the past 40 years, the ruling elites have performed well in making Singapore less vulnerable to internal and external sources of instability.

The End
June 2006

Notes

1. Li-ann Thio, 'Rule of law within a non-liberal 'communitarian' democracy: the Singapore ecperience,' in R. Peerenboom,(ed.), Asian discourses of rule of law (London: Routledge, 2004), p.209.
2. Ibid., p. 185.
3. Chief Justice, P. H. Yong, Speech. Legal Service dinner, 6 April 2001 (available at the Singapore Supreme Court website: http://www. supcourt.gov.sg/speeches/speechesindex.htm).
4. For example, Malcolm Gillis argues that political stability is one of the major prerequisites for economic development (Malcolm Gillis, et.al., Economics of development (New York: W.W. Norton, 1987), p. 23-26).
5. Albert Chen and Anne Cheung, 'Drafting rule of law in the Hong Kong Special Administrative Region, 1997-2002,'in R. Peerenboom, op.cit., p. 274.
6. Ibid.
7. Li-ann Thio, op.cit., p. 185.
8. Ibid., p. 184.
9. Irene Chow, et.al., Business strategy in Asia-Pacific focus (Singapore: Prentice Hall, 1997), p. 556.
10. Li-ann Thio, op.cit., p. 198.
11. Mark T. Berger, 'The triumph of the East? The East Asian miracle and post-Cold War capitalism,' in Mark. T. Berger and Douglas A. Borer, (eds.), The rise of East Asia (London: Routledge, 1997), p. 270.
12. Li-ann Thio, op.cit., p. 189.
13. Garry Rodan, 'Lion City baits mousy opposition,'in Far Eastern Economic Review (FEER), May 2006, p. 12. In AG v. Lingle, the AG adduced evidence that between 1971 and 1993 there had been 11 cases of opposition politicians who had been made bankrupt after being sued. Seven of these lawsuits are filed by Lee Kuan Yew (Christopher Lingle, The rise and decline of the Asian century (Hong Kong: Asia 2000 Limited, 1997), p. 157.
14. C. Lingle, ibid., p. 156.
15. FEER, op. cit., p. 17.
16. Garry Rodan, 'Preserving the one-party state in contemporary Singapore,' in Kevin Hewison, Richard Robison and Gary Rodan, (eds.), Southeast Asia in the 1990's (Australia: Allen & Unwin Pty Ltd., 1993), p. 80-81.
17. The BS boycotted the general election in January 1968. As a result, the PAP returned unopposed in 51 constituencies and won the remaining seven with 80 percent of valid votes cast (Lee Kuan Yew, From third world to first: the Singapore story: 1965-2000 (New York: HarperCollins Publishers, 2000), p. 111.
18. Straits Times, 5/6/1987.
19. Li- ann Thio, op.cit., p.205.
20. Philippe Sands, Lawless world: making and breaking global rules (England: Penguin Books, 2006), p. 144.
21. FEER, op.cit., p. 17.
22. Li-ann Thio, op.cit., p. 204.
23. These fee-based financial services include: fund management, risk management, capital markets, financial and commodity futures, financing third-country trading, and reinsurance and captive insurance (Irene Chow, op.cit., p. 557).
24. South China Morning Post, 9/8/2005.
25. R. Peerenboom, Asian discourses of rule of law (London: Routledge, 2004), p. xviii.