Singapore’s Tharman calls for ‘activist’ policymaking over big government post-pandemic

Debt-fuelled crisis spending by governments may not last and the wealthy must share the burden to help the less well-off

Focus on ‘what matters most rather than everything’ says ex-finance chief Tharman Shanmugaratnam

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Tharman Shanmugaratnam, pictured with then-director of the International Monetary Fund Christine Lagarde in 2013. Photo: EPA

Published: 9:46am, 23 Jul 2020Updated: 9:46am, 23 Jul 2020

Massive state spending and loans may be keeping the world economy afloat amid the coronavirus crisis, but this does not mean that a global rebirth of big government is inevitable, according to Singapore’s ruling party heavyweight Tharman Shanmugaratnam.

Instead, the 63-year-old politician – one of Asia’s most keenly followed economic voices – said policymakers should adopt an “activist” approach whereby governments remain lean but pour resources into activities where state intervention is most effective.

Embracing such an approach means policymakers “re-centre government and fiscal policy on the provision of public goods” such as quality education and health care, Tharman said.

“So you don’t necessarily have to be very large, but you have to be very good at the most important things you should be doing, and go about it in the spirit of an activist.”

More contributions will have to come from those who are better off and wealthier in future, Tharman says. Photo: Roy Issa

Rather than a return of big government, Tharman suggested going back to “a sense of moral purpose in government, having the confidence to convince the population that these are the right things to do, and we’re all going to have to organise ourselves together to achieve it, and an ability to focus the resources of the state on what matters most rather than everything.”

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