The mission of the World Bank is "to help developing countries and their people reach the goals by working with our partners to alleviate poverty." By focusing on six strategic themes used by the World Bank to support their mission "...the Bank delivers technical, financial and other assistance to those most in need and where it can have the greatest impact and promote growth. These themes are focusing efforts on the poorest countries, post-conflict and fragile states, middle-income countries, global public goods, the Arab world, and knowledge and learning. (WorldBank, 2011) The key to successful economic development is to implement strategies that include "a market economy, a high saving rate, and investment in infrastructure and in human capital". (Rittenberg, & Tregarthen, 2009)
Hong Kong and Singapore were considered newly industrialized countries (NIC's) during the 1970's and 80's. Since it is not possible to become an industrialized nation without a market economy, that strategy needs to be the first priority in a NIC. To have a market economy there must be "a division of labor in which the prices of goods and services are determined in a free price system set by supply and demand". (Altvater, 1993) The methods applied were to bring about industrial stability by dismantling the communist party and fostering discipline in employer-employee relations, to attract multi-nationals companies with existing technologies that were looking for new opportunities to expand globally, and to maximize the potential of its people so they can contribute the most to economic growth of the country. ("How singapore came," 2010)
By dismantling the communist party and fostering discipline in employer-employee relations these countries began to recognize property rights of the individuals. Without the consumer having the power to own property, the will be no free market systems. By implementing the second and third strategies, Hong Kong and Singapore were able to attract the necessary capital, technology and training necessary for a free market economy.
Altvater, E. (1993). The Future of the Market: An Essay on the Regulation of Money and Nature After the Collapse of "Actually Existing Socialism
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How singapore came to develop its high tech industry . (2010, June 20). Georgian Business Week
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Rittenberg, L, & Tregarthen, T. (2009). 19.3. Keys to Economic Development. Principles of macroeconomics
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WorldBank, . (2011). About us
. Retrieved from http://go.worldbank.org/5TU8IISQ50