Singapore, a tiny island city-state within the tropics, is land-scarce and its development is proscribed by restrictions. Meanwhile, in Australia, vast landscapes lie empty and states compete for people. Can each countries meet their needs?
Here is my proposal for “charter cities.”
More specifically, here is the proposal to create a Singapore charter city in Australia.
The idea is predicated on the unique and powerful relationship between the 2 countries and shouldn’t be as strange because it could seem at first glance.
In an essay published in 2015 on what Singapore might seem like in 2065, the managing director of the Monetary Authority of Singapore, Ravi Menon, predicted a future wherein Singapore would have retirement communities in Perth.
Last yr, Straits Timesopinion editor Chua Mui Hoong wrote an article asking whether Australia could turn into Singapore’s hinterland.
In particular, she referred to the strengthening of ties between the 2 countries and the signing of a comprehensive strategic partnership agreement.
She also addressed the Australian Government’s plans to develop northern Australia and envisioned opportunities for Singapore residents and businesses.
I would love to weave these threads right into a concrete charter city proposal.
The idea of a charter city itself is sort of old. This could be seen in 760 BC in Qart Hadasht, the “latest city” or what later became referred to as Carthage – modern Tunis, Tunisia.
You can imagine a twenty first century Carthage within the northern a part of Western Australia.
Under the leadership of Singapore Prime Minister Lee Hsien Loong and Australian Prime Minister Malcolm Turnbull, we could see this charter city turn into a reality inside ten years.
CHARTER CITY
But what exactly is a contemporary charter city and why would it not be of interest to any country?
A charter city is an urban region – a city and its hinterland – regulated in accordance with a statute constituting a global treaty.
In 2009, distinguished American economist Dr. Paul Romer proposed the creation of charter cities in underdeveloped countries.
However, his attempts to create such cities in countries akin to Madagascar and Honduras failed.
The logic of charter cities could be prolonged to situations governed solely by supply and demand dynamics.
The supply is the abundant land under the patronage of a totally fledged democracy – Australia – and the demand is a brand new global city imitating Singapore.
The charter city I bear in mind is a city in-built Australia but with its own rules.
The city stays under Australian sovereignty but can offer separate citizenship that doesn’t result in the correct of abode in other parts of Australia.
Essentially, charter cities – sometimes also called special administrative regions akin to Hong Kong or Macau, or economic zones akin to the Visakhapatnam Special Economic Zone within the Indian state of Andhra Pradesh – enable Singapore and Australia to leverage the facility of assorted legal bodies to stimulate their respective economic development.
Singapore and Australia have many incentives to create charter cities.
These include macroeconomic and microeconomic, short-term and long-term incentives.
Perhaps crucial of those is best illustrated by a hypothetical scenario.
WHAT A CHARTER CITY OF SINGAPORE COULD LOOK LIKE
Imagine that the choice was made to create a greenfield charter town within the north-west of Western Australia.
The charter city was christened Dilga, after the goddess of fertility and growth Karadjeri.
Dilga is to be built by the town’s holding charter company (CCC), a three way partnership of 4 groups of investors, each with 25% of the equity.
First, Western Australia is raising capital by providing 1,000 square kilometers of land on which Dilga is to be built – roughly the dimensions of Hong Kong.
The Commonwealth of Australia gains capital by providing a military base next to Dilga.
Singapore raises capital by providing infrastructure.
The final 25 percent comes from the private sector, in exchange for rights to make use of Dilga’s land and infrastructure.
Dilga increases its capital in consultation with the unique shareholders through the sale of latest shares in CCC, in addition to through debt instruments.
The city makes profits through a mixture of city-owned corporations and tax revenues.
All 4 partners share on this profit.
The 4 partners draft the Dilga structure.
This Constitution, promulgated concurrently by Singapore, Western Australia and the Commonwealth of Nations, shall thereafter be deposited with the United Nations.
During the 10-year transition period, CCC manages Dilga.
The first residents come mainly from Singapore, but additionally from Western Australia and other Australian states.
Later, immigrants gain the correct to a representative and democratic government.
Dilga is currently administered in an identical manner to Hong Kong and Macau, except that its charter city status is guaranteed in perpetuity.
Many people resolve to maneuver to Dilga.
During the transitional period, they don’t pay income tax.
Young persons are attracted by the convenience of obtaining citizenship and the consistently low unemployment rate.
Dilga is becoming popular with tourists, especially from Perth.
They consider that sightseeing is safer. It is closer and friendlier, and the costs are usually not much higher.
They don’t even need a passport to get there.
More tourists are attracted by the unique atmosphere of Dilga, in addition to by their friends and relatives who already live there.
Investors around the globe see this boom and, similar to in Las Vegas within the Thirties, they’re constructing theme parks, casinos and resorts.
Over time, the variety of construction cranes on Dilga’s skyline makes cities like Dubai look flaccid.
Dilga is finally fully functional.
It requires a relentless supply of natural resources akin to iron ore, gas and oil.
Western Australia is benefiting from a brand new market, much closer to the source.
Savings in transportation costs alone create a competitive advantage.
Dilga can also be playing an increasingly vital role internationally, taking on Australia’s refugee quota.
It can also be a showcase of green technologies, especially renewable energy sources and efficient seawater desalination plants.
In fact, Dilga was so successful that over time, Singapore replicated this charter city concept elsewhere.
Singapore is perceived as a trustworthy partner and welcomed by other countries with vast areas requiring economic revival.
Its competent and trustworthy diaspora now has many cities to live in.
The habit of welcoming immigrants and dealing across cultures, so ingrained in Singaporeans’ DNA, is being transplanted to those charter cities.
As Singapore considers its future and prepares for a comprehensive report by the Commission on the Future Economy, it could do with a dose of out-of-the-box fascinated with Singapore’s ability to interrupt the constraints on growth.
Having a network of charter cities could contribute to significant growth in Singapore’s economy and expand the boundaries of growth for its residents.
Source: Benjamen Gussen, Asia One
