Jamus wants us to be more generous.
4 d ·
When I was studying in California for my doctorate, I was (like most graduate students) living hand-to-mouth. Lots of bulk-purchased frozen dinners, ramen, and McDonald’s dollar menu meals (for 4 bucks, you could get stuffed on two double cheeseburgers and 2 McChickens). Knowing my propensity to consume cheap junk food, my American family (basically my landlord) would routinely give me MickeeDees coupons for Christmas or my
birthday, which I would happily spend. More McMuffins! Who could complain? But now that I’m in the workforce (and they’re happily retired), I’ve since bought my American parents meals aplenty (they still occasionally treat me, too). I now joke with them is how the little gesture all those years ago was probably one of their better “returns on investment.”
In my view, the moral behind this little story applies to virtually all cultural relations, and to international relations as well. Social relations between humans are heavily reciprocal in nature, a behavior we see in other primates, too (see:
https://doi.org/10.1098/rspb.2013.1615). That’s why our commitments to other countries, in terms of foreign aid, is so important. We aren’t just doing so because it is a moral imperative (which it should be; we are a small, open economy that has benefited immensely from the international system). Such assistance can also rebound back to us. When we help vault our neighbors to the next stage of their development journey, their consumers become more able to afford the higher value-added goods and services that are now a mainstay of our export basket. But more generally, we also build a mutual sense of reciprocity. Should we run into economic or security difficulties in the future, countries that we’ve helped may feel a greater impetus to help, since we’ve helped them before.
So there is a strong case for why we should be willing to offer aid. But are we able? Some may say it isn’t obvious, since our people have many needs, too, especially with rising costs of living and slowing economic growth (and as the saying goes, generosity begins at home). But after COVID-19, the international community agreed on a mechanism for development assistance: a new issuance of Special Drawing Rights (SDRs). SDRs are a form of international currency, issued by the IMF, that can be redeemed for regular hard currency (like dollars, euros, or yen). There’s no need to go too much into the weeds of how the SDR mechanism works, but it’s sufficient to point out that Singapore received a generous allocation, a significant amount of which we committed to reallocate to poorer nations, to support their pandemic recovery.
The government has previously claimed that our aid commitments are “commensurate with our size.” This seems intuitive; surely, as a small country, we can’t be expected to give out too much. That’s reasonable, but it’s useful to have a benchmark. Most rich countries shoot for around 0.7 percent of GDP in foreign aid (many fall short, but there’s at least the aspiration). For us, meeting this target would require us to give away most of this new SDR allocation. But our commitment turns out to be a tiny fraction of this: less than 1 percent. This is pretty stingy stuff, and in my view, doesn’t satisfy any reasonable interpretation of “commensurate with our size.” Perhaps more damningly, we are currently falling short of even this very modest target: we’ve reallocated less than a third of our original commitment thus far (to this, the government’s response is akan datang; supposedly more is to follow).
As a small country with our own unique needs, we shouldn’t automatically expect to have much global financial influence. But we don’t say the same thing when it comes to other aspects of international finance: we want to be a global wealth management hub, and pride ourselves that we are a major financial center. Why not foreign aid? Other small nations have wielded disproportionate soft power by being generous. We can do the same, build our global social capital, and beget much goodwill as a result.
#makingyourvotecount