Let me now illustrate the framework by briefly applying it to five case models.
Case 1: Singapore
In 1985, Lee Kuan Yew and the People’s Action Party were politically dominant and would rank as high (authoritarian) on the Y axis. However, after rapid growth and near full employment, Singaporeans’ confidence suffered a major blow in the shock 1985 recession. While objectively, Singapore might have been judged to be still in a very healthy economic state, years of annual warnings by Prime Minister Lee in his televised National Day address that Singapore faced an existential threat to its existence allowed this leader, then unchallenged, to take decisive and nationally supported action.
While we shall not go into detail, the immediate actions included the creation of a high-level public-private National Economic Committee.
In less than a year, the committee and its various subcommittees had developed both analysis and a range of far-reaching policy prescriptions that were rapidly approved by Parliament and rapidly rolled out. This resulted in a rapid and sustained return to growth. Lee Kuan Yew later referred to this report as a “turning point” in Singapore’s development.