विद्यार्थी मित्रांनो तुमचा इंटरेस्ट जर कॉमर्स फील्डमध्ये आहे किंवा तुम्ही कॉमर्स घेऊन शिक्षण केले आहे, तर सीए म्हणजे चार्टर्ड अकाउंटंट हे एक चांगले करिअर ऑप्शन आहे. CA होणे ही बहुतेक कॉमर्स विद्यार्थ्यांची इच्छा असते.
सीए शिक्षण करत असताना तुम्ही स्टायपेंड च्या माध्यमातून पैसे कमवू शकता. तसेच झाल्यानंतर मोठ्या पगाराची नोकरीची चांगली संधी उपलब्ध असते.
तुम्हाला जर कोणत्याही कंपनीत काम करायचं नसेल तर तुम्ही स्वतःची फार्म ओपन करून चांगले उत्पन्न मिळू शकतात सोबतच इतरांना जॉब देऊ शकता. मागील पोस्टमध्ये तशी सविस्तर माहिती आम्ही दिलेलीच आहे.
सीए चे काम काय आहे
मित्रांनो आर्थिक विषयांमध्ये सल्ला देणे, फायनान्शिअल अकाउंटिंग करणे, टॅक्स संबंधित कामे करणे, ऑडिटिंग चे काम करणे इत्यादी काम सीएच्या असते. सीए भारतातील सर्वात जास्त डिमांड व रेप्यूटेशन असलेला कोर्स आहे.
सीएच्या कोर्सची डिमांड मार्केटमध्ये कधीही कमी होणार नाही. व्यापारावर संपूर्ण जग आधारित आहे जेवढा व्यापार वाढेल तेवढे सीएची डिमांड वाढत जाणार आहे. सीए असणाऱ्या लोकांना खूप सन्मान मिळतो व चांगला पगार तसेच उत्पन्न मिळत असते.
सीए करिता नोंदणी कशी करावी?
मित्रांनो भारतामध्ये CA EXAM फक्त Institute Of Chartered Accountants Of India मार्फतच होते. तुम्ही ICAI च्या www.icai.org या अधिकृत वेबसाईटवर नोंदणी करून सीए चा अभ्यास सुरू करू शकता.
सीए अभ्यासक्रम किती स्टेप्स मध्ये असतो?
पुढील तीन स्टेप्स मध्ये हा अभ्यासक्रम पूर्ण करावा लागतो
1. CA FOUNDATION
2. CA INTERMEDIATE
3. CA FINAL
CA foundation :- इयत्ता दहावी नंतर तुम्ही सीए फाउंडेशन साठी नोंदणी करू शकता व बारावी पास झाल्यानंतर तुम्ही सीए फाउंडेशन चे पेपर देऊन ही लेवल क्लियर करू शकता. याकरिता फाउंडेशन परीक्षा देण्यापूर्वी चार महिन्यांचा अभ्यासक्रम तुम्हाला पूर्ण करावा लागतो.
सीए फाउंडेशन मध्ये दोन पेपर लेखी स्वरूपाचे असतात व दोन पेपर ऑप्शनल बेसिस असतात. ही परीक्षा पास होण्यासाठी तुम्हाला प्रत्येक विषयात 40 गुण व एकंदरीत 50 टक्के गुण हवे असतात. सीए फाउंडेशन परीक्षा मे आणि नोव्हेंबर महिन्यात वर्षात दोनदा होते.
CA Inter :- सीए फाउंडेशन परीक्षा पास झाल्यानंतर तुम्ही सीए इंटरमिजिएट साठी रजिस्ट्रेशन करू शकता. रजिस्ट्रेशन केल्यानंतर तुम्हाला आठ महिन्याचा अभ्यासक्रम पूर्ण करायचा असतो. सीए इंटरमीडिएट मध्ये आठ विषय असतात जे दोन ग्रुप मध्ये विभागलेले असतात.
या पेपरमध्ये पास होण्यासाठी प्रत्येक विषयात कमीत कमी 40 गुण व सगळ्या विषयांचे नोंद 50 टक्के गुण आवश्यक असतात. जेव्हा तुम्ही एक किंवा दोन ग्रुप क्लियर करता तेव्हा तुम्ही इंटर्नशिप करू शकता सोबतच चार आठवड्यांचा इंटिग्रेट आयटी आणि सॉफ्ट स्केल प्रोग्राम कम्प्लीट करावा लागतो. तेव्हाच तुम्ही तीन वर्षाच्या प्रॅक्टिकल ट्रेनिंग साठी एनरोल करू शकता. ही ट्रेनिंग तुम्ही कोणत्याही सीएफ फॉर्म मधून करू शकता. सीए फॉर्म निवडण्यापूर्वी तुम्ही हे लक्षात घेतले पाहिजे की तुम्हाला त्या फॉर्म मधून भरपूर काही शिकायला मिळेल, कारण या ट्रेनिंग वरच तुमचे भविष्य अवलंबून असते.
CA Final :- जेव्हा तुम्ही अडीच वर्षाची Internship पूर्ण करता तेव्हा तुम्ही सीए फायनल साठी पात्र होता. CA FINAL मध्ये आठ पेपर असतात जे चार चार विषयांमध्ये विभागलेले असतात. यामध्ये देखील पासिंग साठी तुम्हाला प्रत्येक विषयात 40 टक्के गुण व एकंदरीत 50 टक्के गुण असणे आवश्यक असते. सीए फायनल पूर्वी तुम्हाला चार महिन्याचा IT & SOFT SKILL PROGRAM पूर्ण करावा लागतो, तेव्हाच तुम्ही CA FINAL साठी पात्र होऊ शकतात. Internship व फायनल चे दोन्ही ग्रुप्स पूर्ण पास होतात तेव्हा तुम्ही सीए बनता.
स्टाईपेंड किती असतो?
जेव्हा तुम्ही Internship करायला लागतात तेव्हा तुम्हाला स्टायपेंड
मिळण्यास सुरुवात होते. कोणत्या फॉर्म मध्ये तुम्ही काम करता यावर तो अवलंबून असतो त्याचे रक्कम साधारणपणे पाच ते पंधरा हजार एवढी असू शकते.
सीए चा कोर्स करण्यासाठी किती कालावधी लागतो?
जर तुम्ही प्रत्येक परीक्षा वेळेवर पास झाला तर तुम्ही पाच वर्षात सीए बनू शकता, परंतु असे फार कमी विद्यार्थ्यांच्या बाबतीत घडते. कारण सीए हा कठीण कोर्स आहे. सीए मध्ये तुम्हाला येथे ट्रेनिंग पूर्ण करावे लागते व त्यासोबतच अभ्यास व पेपरही द्यावे लागतात. त्यामुळे अनेक विद्यार्थ्यांना CA बनण्यासाठी थोडा जास्त कालावधी लागतो.
सीए झाल्यानंतर तुम्हाला जॉब कुठे मिळेल?
सीए पूर्ण झाल्यानंतर तुम्हाला जॉब साठी जास्त पहावं लागत नाही कारण सी ए फायनल नंतरच तुम्हाला जॉब करायला सुरुवात होते आणि ICAI सुद्धा जॉब प्लेसमेंट करतात जिथे देशातील मोठ्या मोठ्या कंपनी येतात व तुम्हाला चांगल्या पॅकेज व जॉब ऑफर करतात.
The NGOs or "not for profit "or "non profit entities" and associations like public trust established under Charity laws, society formed under the societies Registration Act, companies formed under section 25 of the Companies Act, 1956 etc., form part of the NGO sector in the country.
NGO may be defined as an association having a definite cultural, educational, economical, religious or social program registered with the Central Government. It is also useful to consider what not for profit actually means. Many non commercial organisations may make a profit in basic financial terms on their business transactions. School fees may cover cost and allow emergen of "profit". However, the concept of not for profit is related to the organisations for all orientation and long term goals. The school may use the margin of profit to develop its facilities and enhance educational quality levels while a golf club which makes a profit on its membership fees may use the proceeds to benefits its members by providing a subsidized bar and social events.
1. Definition of NGOs by the World Bank
The World bank defines NGOs as" private organisations that pursue activities to relieve suffering, promote the interest of the poor, protect the environment, provide basics social services or Undertake community development. "
2. Areas in which NGOs work
Age care (Care for the aged/ old persons)
Agriculture
Animal welfare
Art and craft
Child education
Cities or Urban Development
Community development
Culture and heritage
Drinking water
Education
Poverty removal
Science and technology development
Waste management
Housing and slums
Rural development
Environmental issues
Health and hygiene
HIV / AIDS
Disability
Women
Tribal people
3. Types of NGO or not for profit organisations
There are many different types of non commercial organisations ranking in size from small local concerns to large International Group. Generally, however, these fall into several main categories.
Cultural - Opera, ballet, theater, and other performing arts, museum, historical Society's, zoos and conservation societies.
Educational - private schools and colleges, Universities, business schools, other educational establishments.
Political - political parties, political candidates, political organisations, trade unions.
Public Interest - organisations campaigning for or against social issues such as fitness, health, drug abuse and smoking. Organisations offering a public service such as the Youth Hostels Association, marriage gardens services and the family planning Association.
Social - Chamber of Commerce, social clubs and organisations such as the scouts Association, golf clubs and other membership groups.
Religious - churches, religious movements.
Healthcare - nursing homes, hospitals, health research bodies, cancer support groups, AIDS Research and care trust, hospices.
Charitable and philanthropic :- local and international charities, Save the Children fund, the national Society for the prevention of cruelty to children, Rotary International.
These categories do represent, in the main not for profit organisations, Aldo there are operators within many of the categories who do operate businesses designed as profit making concerns. Desh Mein include health clinics specialising in cosmetic surgery on a full fee basis, and Independence secretarial colleges and training organisations.
4. Classification of NGOs by the World Bank
The World bank classified NGOs into two main categories :
1. Operating NGOs :- who's primary purpose is the design and implementation of development related projects.
2. Advocacy NGOs :- whose primary purpose is to defend or promote a specific cause and who seek to influence the policies and practices of the World bank.
The World bank classifies operations NGOs into three main groups
a) community - based organisations ( CBO'S), which serve a specific population in a narrow geographic area.
b) National organisations which operate in individual developing countries, and
c) International organisations, Vichar typically headquartered in developed countries and carry out operations in more than one developing country.
5. Organisation structure
The following forms of associations May act as NGO :
a) a trust of two or more persons as trustees there in. The trust maybe registered under the Indian trust act, 1882.
b) a company registered under section 25 of the Companies Act, 1956. Usually clubs, Association of professionals to get registered under this provision of the Companies Act,1956.
c) Society of persons registered under the provisions of the societies Registration Act, 1860 with the registrar of the society is with aims and objects and structure as laid down in the side act.
d) a statutory body consisting membership of persons constituted by or under a statute, having a structure as laid down in the statute by which it is constituted.
Business Finance refers to funds availed by business owners to meet their needs that may include commencing a business, obtaining "top-up funds to finance business operations", obtaining finance to purchase capital assets for the business, aur to deal with a sudden cash crunch faced by the business.
Profit planning and cost controls
Since the basis of a business is to make a profit
It only makes sense that finans would play a major role in finding ways to improve profitability. This might involve determining the profitability of individual products and weeding out the losers and promoting the winners.
"Importance"
You use Finance to purchase assets, goods and raw materials. Essentially anything that will push your business forward. This is why finance and funds are known as the lifeblood of any business. You simply cannot function properly unless you have an adequate amount of money accessible to you and your business.
सीए म्हणजे काय? काय करतात सीए? सीए ला पगार किती मिळतो? CA course information in marathi
सीए नक्की काय असते?
CA म्हणजे चार्टर्ड अकाउंटंट
CA ही अकाउंटिंग क्षेत्रातील सर्वोत्तम डिग्री मानले जाते. सीए करण्याकरिता कोणत्याही महाविद्यालयामध्ये प्रवेश घेण्याची आवश्यकता नसते. Institute of Chartered AccountantsOf India ( ICAI) मार्फत हा कोर्स पूर्ण झाल्यानंतर मेंबरशिप दिली जाते.
परीक्षा आणि अभ्यासक्रम
सीए च्या तीन पायऱ्या असतात या तीन पायऱ्या पार पडल्या नंतर तुमच्या नावासमोर तुम्ही CA लावू शकता.
पहिली पायरी- CA Foundation
यामध्ये चार पेपर असतात. ते पुढील प्रमाणे....
1. Principles and Practice of Accounting.
2A. Business Laws.
2B. Business Correspondence and Reporting.
3. Business Mathematics and Logical Reasoning & Statistics.
4A. Business Economics.
4B. Business and Commercial Knowledge.
दुसरी पायरी- CA Intermediate
यामध्ये दोन ग्रुप्स असतात, प्रत्येक ग्रुपमध्ये प्रत्येकी चार पेपर्स असतात.
Group 1
Paper 1 : Accounting
Paper 2 : Corporate and Other Laws
यामध्ये,
Part 1: Company Law
Part 2: Other Laws
Paper 3 : cost and Management Accounting
Paper 4 : taxation
Section A:- Income Tax Laws
Section B :- indirect taxes
Group 2
Paper 5 : Advanced Accounting
Paper 6 : Auditing and Assurance
Paper 7 : Enterprise Information System and Strategic Management
Section A : Enterprise Information Systems
Section B : Strategies Management
Paper 8 : Financial Management and Economics for Finance
Section A : financial management
Section B : Economics for finance
तिसरी पायरी - CA FINAL
CA Final चे परीक्षा देण्यापूर्वी तुम्हाला 2.5 वर्षाची Articleship म्हणजे कामाचा अनुभव पूर्ण करणे आवश्यक असते त्यानंतर तुम्ही CA Final परीक्षेत पात्र ठरता.
CA FINAL मध्ये देखील दोन ग्रुप असतात व प्रत्येक ग्रुपमध्ये चार पेपर्स असतात. ग्रुप दोन मधील पेपर साठी तुम्हाला पर्याय दिलेले असतात त्यामधल्या एका विषयाची निवड करून तुम्हाला पेपर द्यावे लागतात.
Group 1
Paper 1 : financial reporting
Paper 2 : Strategic financial management
Paper 3 : advanced auditing and professional ethics
Paper 4 : corporate and economic laws
Part 1 :- corporate laws
Part 2 :- economic laws
Group 2
Paper 5 : strategic Cost Management and performance evaluation
Paper 6 : Elective paper
List of active papers :
6a risk management
6 b financial services and capital markets
6c International taxation
6D economic laws
6E global financial reporting standards
6 f multi disciplinary case study
Paper 7
Direct Tax laws and international taxation
Part 1 : direct tax laws
Part 2 : International taxation
Paper 8 : indirect tax laws
Part 1 :- goods and service tax (GST)
Part 2 : Customs and FTP
सीएच्या परीक्षा वर्षातून दोन वेळा होतात मे आणि नोव्हेंबर महिन्यामध्ये.
प्रवेश प्रक्रिया
इयत्ता बारावी नंतर सीए करण्याकरिता तुम्हाला सीए फाउंडेशन परीक्षेसाठी नाव नोंदणी करावी लागते. CA Foundation परीक्षा पास झाल्यानंतर CA intermediate व CA Final परीक्षा उत्तीर्ण होऊन तुम्ही बारावी नंतर सीए होऊ शकतात.
CA AFTER GRADUATION ( पदवीनंतर सीए)
पदवीनंतर सीए मध्ये प्रवेश घेण्यासाठी Commerce च्या ग्रॅज्युएट्सना 55 टक्के गुण असणे आवश्यक असते तसेच इतर शाखेतील पदवीधरांना 60 टक्के गुण असणे आवश्यक असते.
जर तुम्ही पदवीनंतर प्रवेश घेतला तर तुम्हाला प्रथम इंटरमिजिएट आणि त्यानंतर फायनल असा प्रवास करावा लागतो. Foundation परीक्षा देण्याची आवश्यकता नसते. Intermediate Exam 8 महिने आर्टिकल शिफ्ट करणे आवश्यक असते.
अमर्याद नोकरीच्या संधी व गले लठ्ठ पगार.....
CA Profession मध्ये तुम्हाला विविध क्षेत्रात काम करण्याची संधी मिळत असते जसे,
Accounting
Auditing
Taxation
Financial Analyst
Statistics
Management
Pay - Roll
इत्यादी. CA हा स्वतःचे Firm चालू करून त्या माध्यमातून द्रव्यअर्थार्जन करू शकतो किंवा प्रत्येक कंपनीला सीए ची गरज असते म्हणून तो कंपनीमध्ये विविध मोठ्या पदावर काम देखील करू शकतो.
सर्वसाधारणपणे CA कोणत्याही अनुभवाशिवाय सुरुवातीस 7,00,000 ते 8,00,000 एवढा पगार सहज मिळू शकतो. तो त्याच्या वाढत्या अनुभवा सोबत वाढत जात असतो.
Blog Writer : Vaibhav Deshpande
विद्यार्थी मित्रांनो तुम्हाला माहिती आवडली असेल तर पोस्ट शेअर करा तसेच तुमच्या मनातील काही शंका खाली नक्की कॉमेंट करा.
CA Foundation Maths Chapter Wise Weightage for November, 2023.
The third paper of the CA Foundation helps students develop an understanding of Basic Maths, Reasoning, and Statistical and their application in business, Finance, and Economics and develop a logical understanding to solve problems. The CA Foundation exam pattern 2023 for maths, logical reasoning and statistics are mentioned below, along with the marks distribution.
Part A: Business Mathematics (40 Marks)
Check the table below to know the CA Foundation Maths Chapter-wise weightage and the marks distribution.
CA Foundation Chapter-wise Weightage for All Subjects 2023
CA Foundation Accounts Chapter Wise Weightage
The below table mentions the CA Foundation Accounts chapter-wise weightage and marks distribution.
ChaptersMarks-Weightage
1. Theoretical Framework5%-10%
2. Accounting Process
3. Bank Reconciliation Statement
4. Inventories
5. Concept and Accounting of Depreciation
25%-30%
6. Accounting for Special
Transactions15%-20%
7. Final Accounts of Sole Proprietors
8. Partnership Accounts
9. Financial Statements of Not-for-Profit Organizations
30%-40%
10. Introduction to Company Accounts10%-15%
Accounts is an integral part of the Chartered Accountancy course. Therefore, you need to prepare well for this paper. Now as you know the CA Foundation Accounts chapter-wise weightage, you can make a proper plan for yourself.
CA Foundation Law Chapter Wise Weightage
The second paper of CA Foundation is divided into Two Sections. Section A is Business law, and Section B is correspondence and reporting. The CA Foundation exam pattern for the law subject is one of the most requested by the students. Students can check the CA foundation Law chapter-wise weightage from the following table and start their preparation accordingly.
Section A: Business Laws (60 Marks)
ChaptersMarks-Weightage
1. The Indian Contract Act, 187225%-30%
2. The Sale of Goods Act, 193020%-25%
3. The Indian Partnership Act, 193220%-25%
4. The Limited Liability Partnership Act, 20085%-10%
5. The Companies Act, 201315%-20%
Section B: Business Correspondence And Reporting (40 Marks)
Singapore has leaped from third-world to first in just 53 years.
When Lee Kuan Yew took over the country as the nation’s first Prime Minister in 1965, Singapore’s per capita GDP was about $400 a year, similar to Mexico and South Africa. Today, Singapore has a per capita GDP of about $50,000, well above that of the U.S.¹
From the beginning, Lee Kuan Yew faced tremendous odds. Singapore had an unlikely chance of survival. When it gained independence in 1965, Singapore was a tiny, impoverished nation — an island without its hinterland; a heart without a body.
“Few expected Singapore to survive when it became an independent country in 1965. It was a tiny, impoverished island with a diverse population of recent immigrants. They had little shared history and no natural resources. Singapore had been colonized, occupied, and abused for over a century, and it was surrounded by hostile nations in a region succumbing to pressure by Communist forces.
Singapore’s acknowledged its challenges and embraced its role as a resource-poor city-state. Singapore depended on the outside world for food, energy, and water. Unemployment was close to 9 percent.²
In his quest to improve Singapore’s economic standing, Prime-Minister Lee adopted the following strategy:³
“When I started, the question was how Singapore can make a living against neighbors who have more natural resources, human resources, and bigger space. How did we differentiate ourselves from them? They are not clean systems; we run clean systems. Their rule of law is wonky; we stick to the law. Once we come to an agreement or make a decision, we stick to it. We become reliable and credible to investors. World-class infrastructure, world-class supporting staff, all educated in English. Good communications by air, by sea, by cable, by satellite, and now, over the Internet.”
“At first, Singapore’s small size was considered a major disadvantage. The city-state imported all of its food, energy, and fresh water, and the surrounding region was embroiled in ethnic conflict, nationalist fervor, and Communist insurgencies. However, Singapore’s lack of resources proved to be a blessing in disguise. Its reliance on the outside world forced the country to think in terms of a global network. To survive, it had to focus on being a valuable, stable trade partner.”
Constrained by its geography, Singapore turned outwards. It promoted exports and direct foreign investment. Singapore embraced global markets and sought multinational companies to spur industrial growth and shifted away from import substitution, towards export-led industrialization, a decision at odds with the conventional wisdom of the time. Few other countries pursued these strategies, which benefited Singapore.⁴
SINGAPORE: AN INTERNATIONAL BRAND
Intelligent branding has accelerated Singapore’s success.
With an open-door policy to foreigners, Singapore has created an environment where businesses want to be. They attract foreign investment through world-class infrastructure, a skilled workforce, open trade routes, a well-enforced rule of law, and low taxes.
By focusing on stability, business conditions, and human capital, Singapore’s encouraged foreign investment:
“To succeed, Singapore must be a cosmopolitan center, able to attract, retain, and absorb talent from all over the world. We cannot keep the big companies out of the local league. Whether we like it or not, they are entering the region. The choice is simple. Either we have a first-class airline, a first-class shipping line, and a first-class bank, or we decline. One of the things we did in the early years was to buck the third world trend by inviting the multinational corporations, and we succeeded. Now, we must buck the third world trend to be nationalistic. We must be international in our outlook and practices…Our own talent must be nurtured to come up to world standards by exposure and interaction with their foreign peers. Some of our best have been attracted away by leading American corporations. This is part of the global marketplace.”
According to Lee, governments should also provide a stable foundation:
“The business of a government is to…make firm decisions so that there can be certainty and stability in the affairs of the people. The art of government is utilizing to the maximum the limited resources at the country’s disposal… The acid test of any legal system is not the greatness or the grandeur of its ideal concepts, but whether, in fact, it is able to produce order and justice in the relationships between person and person, and between person and the state.”
As the world economy changed, so did Singapore. During its first two decades, Singapore’s economy grew by about 10% per year. It transitioned from trading in spices, tin, and rubber to simple manufacturing such as water fabs, pharmaceuticals, and Asian currency units:⁵
“By 1975, Singapore had established a substantial industrial base, with manufacturing’s share in GDP climbing to 22% from 14% in 1965. The economy was at full employment and it was clear that Singapore had to move up the value chain towards more capital-intensive and skill-intensive activities… By the late 1970s and early 1980s, we saw the emergence of strong clusters in higher value-added electronics, petrochemicals, component and precision engineering. In the 1980s, Singapore became the world’s leading producer of hard disk drives – an early form of memory storage used in computers at the time.”
As Lee Kuon Yew observed, the results were outstanding:
“We have created this out of nothingness, from 150 souls in a minor fishing village into the biggest metropolis 2 degrees north of the equator. There is only one other civilization near the equator that ever produced anything worthy of its name. That was in the Yucatan Peninsula – the Mayan Civilization There is no other place where human beings were able to surmount the problems of a soporific equatorial climate.”
What follows is a collection of observations about America and Singapore from Lee Kuan Yew, the long-time Prime Minister of Singapore.
AMERICA: AN INTERNATIONAL PERSPECTIVE
Lee Kuon Yew’s outside perspective on America gives him an enlightened, international vantage point. Lee identified risks that threaten American prosperity.
Contrasting America with Asia, Lee observed:
“One fundamental difference between American and Oriental culture is the individual’s position in society. In American culture, an individual’s interest is primary. This makes American society more aggressively competitive, with a sharper edge and higher performance.”
Above all else, Lee admires America’s capacity for creativity and entrepreneurship — renewal and revival:
“America’s strengths include no grooved thinking but rather an ability to range widely, imaginatively, and pragmatically; a diversity of centers of excellence that compete in inventing and embracing new ideas and new technologies; a society that attracts talent from around the world and assimilates them comfortably as Americans; and a language that is the equivalent of an open system that is clearly the lingua franca of the leaders in science, technology, invention, business, education, diplomacy, and those who rise to the top of their own societies around the world.”
The United States has a “start from scratch and beat you” culture. America is a frontier society where citizens are encouraged to start new enterprises and create wealth.
“These are the four salient features of America’s entrepreneurial culture: (1) a national emphasis on personal independence and self-reliance, (2) respect for those starting new businesses, (3) acceptance of failure in entrepreneurial and innovation efforts, and (4) tolerance for a high degree of income disparity.”
Due to its culture of entrepreneurship, America is always transforming. However, America’s belief in individual liberty comes at a cost:
“The ideas of individual supremacy…when carried to excess, have not worked. They have made it difficult to keep American society cohesive. Asia can see it is not working. Those who want a wholesome society where young girls and old ladies can walk in the streets at night, where the young are not preyed upon by drug peddlers, will not follow the American model…The top 3 to 5% of a society can handle this free-for-all, this clash of ideas. If you do this with the whole mass, you will have a mess…To have, day to day, images of violence and raw sex on the picture tube, the whole society exposed to it, it will ruin a whole community.”
Individual supremacy creates a multitude of issues in American culture:
“I find parts of [American culture] totally unacceptable: guns, drugs, violent crime, vagrancy, unbecoming behavior in public, in sum, the breakdown of civil society. The expansion of the right of the individual to behave or misbehave as he or she pleases has come at the expense of orderly society…It has a lot to do with the erosion of the moral underpinnings of a society and the diminution of personal responsibility. The liberal, intellectual tradition that developed after World War II claimed that human beings had arrived at this perfect state where everybody would be better off if they were allowed to do their own thing and flourish.”
Americans believe in the supremacy of their own culture and rarely question this assumption. Most Americans see America’s dominance as an absolute fact, not an accident of history. This American attitude poses a severe risk. As China expands its influence on the global stage, Americans will have to revise their thinking:
“The sense of cultural supremacy of the Americans will make this adjustment most difficult. Americans believe their ideas are universal—the supremacy of the individual and free, unfettered expression. But they are not—never were. In fact, American society was so successful for so long not because of these ideas and principles, but because of a certain geopolitical good fortune, an abundance of resources and immigrant energy, a generous flow of capital and technology from Europe, and two wide oceans that kept conflicts of the world away from American shores.”
Americans have a quasi-religious belief in the power of popular democracy. The system, however, is imperfect. The problem with popular democracy is it incentivizes a short-term mentality. In search of re-election, leaders avoid essential discussions and topics that may divide the voting populous.
“Contrary to what American political commentators say, I do not believe that democracy necessarily leads to development. I believe that what a country needs to develop is discipline more than democracy. The exuberance of democracy leads to undisciplined and disorderly conditions which are inimical to development…
When you have popular democracy, to win votes you have to give more and more. And to beat your opponent in the next election, you have to promise to give more away. So it is a never-ending process of auctions—and the cost, the debt being paid for by the next generation. Presidents do not get reelected if they give a hard dose of medicine to their people. So, there is a tendency to procrastinate, to postpone unpopular policies in order to win elections. So, problems such as budget deficits, debt, and high unemployment have been carried forward from one administration to the next.”
Lee believes that popular democracy, especially in today’s media environment, leads to problems. For example, the best marketers — not the best governors — get elected.
“The presidential system is less likely to produce good government than a parliamentary system. In the presidential system, your personal appearance on TV is decisive, whereas in a parliamentary system, the prime minister, before he becomes the prime minister, has been a member of parliament, and probably a minister, and in Britain the people have sized you up over a period of time…and they have come to certain conclusions as to what kind of a person you are, what kind of depth you have, what kind of sincerity you have in what you say… Your presidents, I mean, like Jimmy Carter… my name is Jimmy Carter, I am a peanut farmer, I am running for president. The next thing you know, he was the president! Security, prosperity, and the consumer society plus mass communications have made for a different kind of person getting elected as leader, one who can present himself and his programs in a polished way… I am amazed at the way media professionals can give a candidate a new image and transform him, at least superficially, into a different personality. Winning an election becomes, in large measure, a contest in packaging and advertising… A spin doctor is a high-income professional, one in great demand. From such a process, I doubt if a Churchill, a Roosevelt, or a de Gaulle can emerge.”
Elected officials take the easy way out. But by borrowing to give higher benefits to the current generation, officials pass on the costs to future generations who are not yet voters, which results in budget deficits and high public debt:
“American and European governments believed that they could always afford to support the poor and the needy: widows, orphans, the old and homeless, disadvantaged minorities, unwed mothers. Their sociologists expounded the theory that hardship and failure were due not to the individual person’s character, but to flaws in the economic system. So charity became “entitlement,” and the stigma of living on charity disappeared. Unfortunately, welfare costs grew faster than the government’s ability to raise taxes to pay for it. The political cost of tax increases is high.”
Lee saw America’s debt as part of a broader issue — “Buffet Syndrome.” Lee believed that the West’s real mistake has been to set up “all you can eat” welfare states. When benefits are free, people consume them voraciously. In Singapore, families — not government — are the ultimate safety net. Singapore’s government has run budget surpluses almost every year for five decades.⁶
“Realism and pragmatism are necessary to overcome new problems. Only those basics that have proved sound in the past should not be changed unless absolutely necessary. Amongst them are honesty and integrity, multi-racialism, equality of opportunities, meritocracy, fairness in rewards in accordance with one’s contribution to society, avoidance of the buffet syndrome where, for a fixed price, you can take or eat as much as you want. That is why welfare and subsidies destroy the motivation to perform and succeed.”
As economic influence shifts east, towards the Pacific, America must maintain its stronghold over the region:
“What does the U.S. need to do to maintain global primacy? The 21st century will be a contest for supremacy in the Pacific, because that is where the growth will be. That is where the bulk of the economic strength of the globe will come from. If the U.S. does not hold its ground in the Pacific, it cannot be a world leader. America’s core interest requires that it remains the superior power on the Pacific. To give up this position would diminish America’s role throughout the world.”
When I hear stories about trips to Singapore, people are always impressed by the knowledge of Singapore’s citizenry. They seem to have an unparalleled understanding of economic, engineering and public policy.
Tyler Cowen called Singapore’s distinguished polity and “one of the best and most interesting sights of the contemporary world, more interesting than most natural wonders.” Singapore’s intellectual society is the result of a collection of traits that are encouraged by the government.
Singapore’s intellectual society is a result of a collection of traits that are encouraged by the government.⁷Lee believed that Singaporean citizens should cultivate three qualities:
1. A striving, acquisitive community. You cannot have people just striving for a nebulous ideal. They must have that desire to improve… You must equate rewards to performance, because no two persons want to be the same. They want equal chances in order that they can show how one is better than the other.
2. We want forward-looking good management. The old family business is one of the problems in Singapore.
3. Easy social mobility. One of the reasons contributing to Japanese and German recovery was that their defeated capitalists, managers, executives, engineers, and workers…were fired by a singleness of purpose: to put their country back on its feet.
Singapore is one of the best functioning bureaucracies in the world.
From an American perspective, Singapore has achieved the impossible. The country spends on about 5 percent of GDP on the medical sector but delivers some of the world’s best health outcomes. Even education only consumes 3.3 percent of GDP.⁸ In contrast, America spends roughly 17 percent of its GDP on the health sector but suffers from worse outcomes. Singapore’s entire government spending (17 percent of GDP) is approximately equal to America’s spending on the healthcare sector. Singapore’s government is relatively small. Taxes are low, and there are no additional state and local government taxes.⁹
Singapore’s citizenry has an ethos of public service. As Tyler Cowen remarked:
“Strikingly, Singapore is one of the few countries where there is brain drain into the public sector. This stems partly from the high salaries paid. Top bureaucrats typically receive more than their American equivalents, and cabinet-level pay may exceed $800,000, with bonuses attached that can double that sum for excellent performance.”
Lee saw a clean, efficient, rational and predictable government as a competitive advantage. He sought order and justice in the relationships between citizens and the state. Singapore’s government officials rank among the highest paid in the world. Singaporeans believe that high pay for government officials will reduce — or even eliminate — corruption. The salaries of Singapore’s judges, ministers, and top civil servants resemble the salaries of leading professionals in the private sector.
As the country developed, Lee didn’t just focus on the government; he also molded habits and social customs. Inspired by American ideals, Lee encouraged Singaporeans to accept immigrants — no matter where they originated.
Lee’s top three priorities were cultivating (1) a determined leadership, (2) an efficient administration, and (3) social discipline:
“When I started, the question was how Singapore can make a living against neighbors who have more natural resources, human resources, and bigger space. How did we differentiate ourselves from them? They are not clean systems; we run clean systems. Their rule of law is wonky; we stick to the law. Once we come to an agreement or make a decision, we stick to it. We become reliable and credible to investors. World-class infrastructure, world-class supporting staff, all educated in English. Good communications by air, by sea, by cable, by satellite, and now, over the Internet.”
Singapore’s social discipline points to a fundamental difference between American and Singaporean culture: Americans believe in the primary rights of the individual while Singaporeans prioritize the interests of the masses over the interests of the individual. Inspired by this philosophy, Lee instilled a belief in thrift, hard work, filial piety, loyalty in the extended family, and most of all, respect for scholarship and learning.
“Habits that make for high productivity in workers are the result of the values implanted in them at home, in school, and at the workplace. These values must be reinforced by the attitudes of society. Once established, like a language a society speaks, the habits tend to become a self-reproducing, self-perpetuating cycle.”
A common language makes social cohesion much easier. Singapore’s schools focused on teaching English. Due to its English-speaking populous, Singapore can collaborate with the most influential multi-national corporations.
“To optimize our opportunities, we must retain the vigor of our multi-racial-lingual-cultural-religious society. We have the advantage of all being educated in English in an age when English is the common language of the world and the Internet. However, we must not lose our basic strengths, the vitality of our original cultures and languages.”
There are stark cultural differences between Singapore and America — East and West. America is democratic, while Singapore has an authoritarian bent; Singapore focuses on the collective, while America focuses on the individual; Singapore’s government operates with lean efficiency, while America is a bloated, inefficient bureaucracy.
As American productivity has stagnated and its citizens have become complacent, Singapore’s seen remarkable growth. Americans cannot copy Singapore — only draw from their experience. That, though, is an intelligent decision.
² The British government withdrew its troops from Singapore in 1968. Thousands of workers immediately lost their jobs. As much as 1/5th of the economy risks coming to a halt.
⁴ According to Wikipedia, Import Substitution Industrialization is trade and economic policy which advocates replacing foreign imports with domestic production. ISI is based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products.
