{"id":309323,"date":"2024-03-16T19:50:18","date_gmt":"2024-03-16T18:50:18","guid":{"rendered":"https:\/\/climatescience.press\/?p=309323"},"modified":"2024-03-16T19:50:20","modified_gmt":"2024-03-16T18:50:20","slug":"singapore-a-tale-of-two-ieas","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=309323","title":{"rendered":"Singapore: A Tale of Two IEAs"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Watts Up With That?<\/a><\/p>\n\n\n\n

By Tilak K. Doshi<\/a> Peter A. Coclanis<\/a><\/p>\n\n\n\n

Singapore gained attention<\/a> in the world press last week as reports emerged of neighboring countries accusing the city-state of paying Taylor Swift to engage in a series of concerts exclusively, without allowing other concert venues in Southeast Asia to vie for the superstar\u2019s services on her worldwide Eras Tour. But two recent events that went unnoticed carry far more momentous consequences for the city-state and the Southeast Asia region.<\/p>\n\n\n\n

On February 15, the London-based Institute of Economic Affairs tweeted<\/a> a link to a new Fraser Institute study<\/a> of Singapore\u2019s economic miracle. IEA<\/a> \u2013 Britain\u2019s oldest free market think tank \u2013 argues that economic freedom was key to the approach that turned Singapore from an impoverished Third World backwater on the eve of its independence in 1965 to one of the world\u2019s richest countries.<\/p>\n\n\n\n

Just two days earlier, the Paris-based International Energy Agency announced<\/a> the establishment in Singapore of an IEA Regional Cooperation Centre, \u201cwhich will work with all countries in Southeast Asia and beyond to enhance energy security and accelerate clean energy transitions.\u201d This will be the energy agency\u2019s first office outside of its headquarters in Paris, France. IEA (Paris), quite unlike its London-based acronym-sake, subscribes to the climate change agenda<\/a> that calls for massive government intrusion into energy markets \u201cto save the planet.\u201d<\/p>\n\n\n\n

Will Singapore and its Southeast Asian neighbors continue to hew toward free markets to promote economic development, or will they follow the examples of countries in Europe and North America in pursuing \u201cclean energy transitions\u201d by policy mandates which curtail the use of fossil fuels? The livelihoods and prospects of hundreds of millions of people in the region depend quite literally on the answer to this question.<\/p>\n\n\n\n

Free Markets, or Collectivist Net Zero?<\/strong><\/p>\n\n\n\n

The Fraser Institute report examines the island-nation\u2019s remarkable economic rise over the past sixty years, which surpasses in some measures even the records compiled by the likes of South Korea, Taiwan, Hong Kong, and Japan. It explores what other nations can learn from Singapore\u2019s story. It also sheds light on matters other than economic growth, such as healthcare, education, and social welfare.<\/p>\n\n\n\n

A few key themes emerge out of the report: the emphasis on personal responsibility; the vital importance of markets, incentives, and free trade; and the government\u2019s flexible, open-minded, \u201cpragmatic\u201d approach to public policy, promoting policies that worked without getting hung up on labels.<\/p>\n\n\n\n

The report\u2019s authors see Singapore\u2019s rise not as a simple textbook case demonstrating how \u201cfree market\u201d or \u201claissez faire\u201d capitalism was responsible for the island nation\u2019s success. The government\u2019s role was too prominent in many social and economic sectors for that argument to work. Yet it is hard to deny that the government\u2019s overall approach<\/a> to economic policies was informed by certain abiding beliefs in basic capitalist principles: economic freedom (and with it, self-reliance), the rule of law, private property rights, competition, openness, and the efficacy of material incentives. It was this basic orientation more than anything else that enabled Singapore\u2019s world-leading growth record since the late 1960s. This was \u201ccapitalism, with Singaporean characteristics.\u201d<\/p>\n\n\n\n

And that\u2019s what makes the news regarding Singapore\u2019s partnership with IEA Paris rather incongruous. Singapore\u2019s partnership will be a \u201cstrategic asset<\/a>\u201d for the agency, according to Tan See Leng, the Republic\u2019s Second Minister for Trade and Industry. Dr. Tan believes that the partnership will \u201cenergize the region\u2019s decarbonisation journey, while continuing to provide advice on energy security and resilience.\u201d<\/p>\n\n\n\n

The policy posture that IEA Paris recommends for its members would cause Lenin much envy. IEA Paris would have governments cease all investments<\/a> on coal, oil, and gas projects, and recommends <\/a>government support for investments in \u201cclean\u201d energy industries such as wind, solar, and electric vehicles. Its \u201cnet zero by 2050\u201d mantra would make European agriculture \u201csustainable<\/a>\u201d by reducing hydrocarbon-based fertilizer use, keeping increasing amounts of land fallow, and convincing people to eat less meat. It also would have governments bet taxpayers\u2019 money on hydrogen<\/a> and carbon capture and storage<\/a> \u2013 unproven technologies that have yet to achieve commercial viability despite huge investments over recent decades.<\/p>\n\n\n\n

The Real World Intrudes<\/strong><\/p>\n\n\n\n

Since 1870, Singapore\u2019s development path<\/a> has incorporated oil storage and trading, and over time the island-state gained its status as the \u201cEast of Suez\u201d hub for oil refining, petrochemicals manufacturing, and trading. But in October 2022, turning its back on its investments in oil and gas \u2013 accumulated over more than a century \u2013 Singapore committed<\/a> to \u201cnet zero emissions by 2050\u201d as part of its long-term low-emissions development strategy. How will it fare a quarter century from now when the utopia of \u201cnet zero\u201d arrives? And will Southeast Asia \u2013 comprised of 700 million inhabitants living in eleven extremely diverse countries, some at very low levels of economic development \u2013 follow its example?<\/p>\n\n\n\n

We can already see where the \u201cdecarbonization\u201d path recommended by IEA Paris will lead. In a report<\/a> published last week, Gordon Hughes \u2013 a former adviser to the World Bank and professor of economics at the University of Edinburgh \u2013 puts it unambiguously: the plan is simply \u201cposturing about targets that are patently not achievable and might be economically ruinous.\u201d As one commentator<\/a> observed, \u201c[t]he idea that hydrocarbons \u2013 a natural resource whose use from medicines to reliable energy is ubiquitous in modern industrial society \u2013 can be removed within less than 30 years is ridiculous.\u201d<\/p>\n\n\n\n

Professor Hughes clearly articulates the fundamental tensions between energy transition and energy security. He goes on to state that \u201cChina, India and Indonesia are among the many countries in the rest of the world whose leaders are not fools and can draw their own conclusions about the realism and consequences of the energy transition as currently pursued.\u201d<\/p>\n\n\n\n

Singapore\u2019s partnership with IEA Paris may well be a regrettable decision. Ironically, its Southeast Asian neighbors<\/a> are more likely to emulate Singapore\u2019s historic \u201cpragmatism\u201d and decide their own destinies along Adam Smith\u2019s path of free markets and human flourishing \u2013 the one described by IEA London.<\/p>\n\n\n\n

Dr. Tilak K. Doshi is an energy consultant, a fellow at the Global Research Institute at the University of North Carolina-Chapel Hill (USA), and a Forbes contributor.<\/em><\/strong><\/p>\n\n\n\n

Dr. Peter A. Coclanis is Albert R. Newsome Distinguished Professor of History and director of the Global Research Institute at the University of North Carolina-Chapel Hill (USA).<\/em><\/strong><\/p>\n\n\n\n

This article was originally published by RealClearEnergy and made available via RealClearWire.<\/strong><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Will Singapore and its Southeast Asian neighbors continue to hew toward free markets to promote economic development, or will they follow the examples of countries in Europe and North America in pursuing \u201cclean energy transitions\u201d by policy mandates which curtail the use of fossil fuels? <\/p>\n","protected":false},"author":121246920,"featured_media":309326,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"Will Singapore and its Southeast Asian neighbors continue to hew toward free markets to promote economic development, or will they follow the examples of countries in Europe and North America in pursuing \u201cclean energy transitions\u201d by policy mandates which","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691818056,691827641,691820835,691818154,691827640],"class_list":{"0":"post-309323","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-climate-change","9":"tag-economic-miracle","10":"tag-international-energy-agency-iea","11":"tag-net-zero","12":"tag-singapore","14":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/03\/0328442.jpg?fit=2560%2C1600&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1it5","jetpack-related-posts":[{"id":264789,"url":"https:\/\/climatescience.press\/?p=264789","url_meta":{"origin":309323,"position":0},"title":"The IEA\u2019s \u2018Net Zero\u2019 Roadmap Analyzed","author":"uwe.roland.gross","date":"01\/07\/2023","format":false,"excerpt":"Tilak Doshi analyzed energy economics and related public policy issues.","rel":"","context":"In \"CO2\"","block_context":{"text":"CO2","link":"https:\/\/climatescience.press\/?tag=co2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/07\/06840060930_010da67607_b-1.jpg?fit=1024%2C787&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/07\/06840060930_010da67607_b-1.jpg?fit=1024%2C787&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/07\/06840060930_010da67607_b-1.jpg?fit=1024%2C787&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/07\/06840060930_010da67607_b-1.jpg?fit=1024%2C787&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":421832,"url":"https:\/\/climatescience.press\/?p=421832","url_meta":{"origin":309323,"position":1},"title":"Southeast Asia Continues Hurtling Down the Net Zero Suicide Track","author":"uwe.roland.gross","date":"17\/01\/2026","format":false,"excerpt":"Net Zero may be on life support in the US and Europe, but Southeast Asia doesn\u2019t appear to have got the note. 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