National Borders Fading: City States Make a Comeback

To tell you that Singapore and Hong Kong are amongst the most innovative cities in the region is one thing. To know why they are held to such a high regard and be able to apply that information to other cities is where the benefit of this study lies. For the purposes of this article a detailed discussion of all the criteria and how the cities ranked would be far too lengthy. There are areas of interest that can be focused on though. The category regarding the cities governance is of particular relevance; in this area Hong Kong ranked 1^st with Singapore in a close 3^rd. Despite the fact that these cities operate under a-typical government systems, they have managed quite well in fostering innovative and progressive qualities.

The conclusions reached from Duhamel’s study should be applied to other non-city states to see where there are gaps in relevant criteria and how they can be addressed. The criterion of governance for example stresses the freedom to conduct business and financial transactions in a stable political and social environment. Being autonomous cities with little to no interference from larger governing bodies certainly lends Singapore and Hong Kong to said freedoms. With proof positive that these policies work, cities across the globe need to create such freedoms in their economies in order to succeed.

This message should not be mistaken for the proposed complete deregulation of markets and laissez-faire policies. The study believes that “The government is also responsible in creating a stable condition (political, economy, social, etc) which majorly affects a city’s amenity and creativity production. Therefore to some extent, government can be seen as the innovation controller.” So there is a fine balance between creating business freedoms while maintaining a stable environment for such activities. As mentioned previously, small scale governance is a much easier endeavour than large scale governance. As a result the challenge of governing city states should be a welcome one in which we strive for the best possible results.

Another area of interest that was measured by the study was global integration, in which Singapore ranked 1^st. Sustainability and competitiveness were two hallmarks of how globally integrated a city can be. In order to remain integrated into the global community and economy a city needs to be able to support itself with limited resources on a long term basis. At the same time they must remain competitive in respect to other criteria such as attracting new talent. Attracting new talent is an essential part of remaining an innovative city.

With an increase in competition at the city level, the nation in which they are found will become less of an indicator as to how attractive a certain city could be for workers and businesses. There is no doubt that national governments still play a role in shaping the city with national laws and regulations. However, should the new city state become a reality they will be able to afford a greater autonomy from a deteriorating national government.

The future for city states looks bright, with the advantages that small scale governance can offer. Furthermore the potential deterioration of national boundaries could see regional differences emerge and create modern city states. Despite these positive elements there are still obstacles. Although a highly regarded city, Singapore has been facing its share of problems.

Roadblocks

Even though it ranked high in global integration and governance, Singapore has faced opposition to its large number of foreign workers. “The main problem, says Ms. Seah [a Singaporean business owner], is a squeeze on margins caused by rising costs—above all, labour.