Income inequality has always been a hot topic among Singaporeans. It is something that the ordinary folks in Singapore can relate to, particularly if you are an older citizen. We see our country prosper and enjoy economic success in multiple areas.
Yet at the same time, we feel we are being left behind. Jobs are being created in sectors that we cannot possibly hope to enter. Assets in the country such as property climb astronomically in price during the boom years, and continue to stay stubbornly high even during economy slowdown. Year after year, our salary remain stagnant and in spite of that, we still witness our colleagues losing their jobs, as the company moves its operations overseas, or find a way to introduce technology that does not require as many people to perform.
If that sounds like something you are able to relate to, you are not alone. We want to welcome you to life in a fast growing nation.
South Korea, The One Country That Might Have It Worse Than Singapore
We want to introduce you to South Korea. The one country in the world where people actually study harder, work longer and endure more stress than Singaporeans.
In Korea, kids study so hard that the government has to implement a curfew to stop them from doing so. Incentives are even given to citizens who report on any “hagwons” (i.e. tuition centres) that are found operating after 10pm.
It doesn’t get any better once Koreans join the workforce. Koreans are known to work incredibly long hours. This article from Forbes back in 2008 reported that a typical civil servant in Korea would start work at 8.30am (not withstanding the two hour-commute required) and end about 9pm. We doubt the situation had got any better since.
Not surprisingly, South Korea has been one of the fastest growing economies within the world in the past few decades, with top brands such as Samsung, LG, Kia and Hyundai. And let’s not forget, the Korean dramas that every other Singaporean seems to be hooked onto.
This is the same Korea that was decimated by the Korean War from 1950 to 1953.
Growth At A Cost
Even while a country enjoys success, economic growth usually comes at a cost. And that cost would be borne by the people of the country. But who exactly pays it?
According to this OECD article published in 2014, Korea has one of the highest education gaps between the young and the old, with a 52 percentage point differences between tertiary attainment rates among those who are 25 to 34, and those who are age 55 to 64.
Findings also showed that while 1 in 3 15-year old in Korea reached the highest level for mathematics in PISA, the older people in the country actually fared poorly compared to their peers in similar age group in other countries.
This shouldn’t come as a surprise given the fact that the older Koreans in the country grew up in the 60s and 70s when education opportunities were limited. With an export-oriented strategy, many Koreans find themselves earning their keep in the manufacturing sector, fuelled by the rapid industrialisation of the country.
However as the country becomes more expensive due to the higher cost of labour, industrialisation quickly gave way to technology and outsourcing. Operations that could be done more cheaply in other countries were moved out. Technology became a key component of any operations that were remaining within the country. But not everyone in Korea had a place in that economy.
One Person Doing The Job Of 10 People
Technology combined with capitalisation is an interesting concept. Here is a simplified example of how it works in developed nations.
Supposed a piece of work, let’s imagine assembling a car, used to be done by 10 people in one week. With the investment in the right technology, we can reduce the same work to just one person doing it in one day. Such a technology is worth the investment. Most venture capitalists would agree.
But would that be good for the people in the country? What happens now is that instead of 10 jobs being required, we just need one person. Yes, we will pay the person more so average salary would increase, but we no longer need the rest.
And now, we are stuck with 9 older workers who have little chance of reinventing themselves. Heck, we might even have 10 workers; since there is a great chance that the one person needed is probably a fresh graduate joining the workforce.
Is this a win for the owners of the companies? Yes. A win for the country? Probably. A win for the young people of the country? Maybe, if they could get the job. A win for the older people in the country? Probably not.
Taking Care Of Our Earlier Generation
A simple statement would summarise the premise of our explanation. It is difficult for a fast growing nation NOT to leave behind a good bulk of its older citizens. Cost of living going up quickly coupled with technological advancement forces that issue.
On the other hand, in non-growing countries such as what Greece, Italy and Spain are today, it is the younger people who are falling into the dangerous gap of a lack of opportunities. Critics call it, the forgotten generation, but that’s a discussion best left for another day.
There is no easy solution to fast growth in a country. The train is quick and we must make a deliberate effort to ensure that our older generation are not left behind.
Top Image Credit: DollarsAndSense.sg
