In addition, the New Economy creates new challenges. In the old production economy, Singapore's rational regulations, impressive infrastructure as well as a highly trained and docile workforce enticed foreign investors to locate their factories or their regional headquarters in the island republic. But the Internet, coupled with the forces of globalization, will pose new challenges to governments and civil servants, politically and economically. How will the mandarins of Singapore impose taxes, let alone regulate corporations operating in cyberspace? Progress in business or science requires a willingness to challenge established beliefs and the existing order. Culled from the very best and the brightest, Singapore's mandarins have a tendency to adopt a "we-know-best" attitude, an attitude that has helped to label Singapore a "nanny state." Nannying gets much more difficult when the child is out on the Internet. A society dominated by mandarins is vastly different from one that venerates its entrepreneurs. Singapore, an example of the former, springs to mind, while the US, an example of the latter, provides an illuminating counterpoint. A case in point: If the Wright brothers had adhered to the conventional wisdom that flying machines belonged to the realm of myth, aviation would never have been discovered.

Readers may recall the markedly different response in the 19th century between the mandarins and the Manchu emperors of imperial China on one hand, and on the other hand the Japanese daimyo or feudal lords and their samurai. Faced with overwhelming Western military power and a humiliating defeat in the Opium wars, the response of the mandarins and the Manchu emperors was sulky retreat, punctuated by occasional bursts of activity mixed with xenophobia. Confronted by a similar challenge and an equally demoralizing defeat, the daimyo and their samurai acted in characteristic military fashion: speedily and decisively. The Tokugawa Shogun was overthrown in 1867; effective power was handed back to the Meiji emperor; and a massive campaign of modernization was launched, aimed at ensuring Japan would equal the Western powers in every field of activity.

Some analysts argue the failure of the Manchu emperors and their mandarins stemmed from their insularity. In contrast, a global orientation and a deeply ingrained awareness that the island republic is a speck of stability in a regional sea of instability characterise the Singapore mandarins. Awareness, however, may not be enough. Occasions may arise that call for a bold and radical overhaul like the Meiji restoration. Confronted with a similar challenge, will the mandarins of Singapore have the capacity to emulate the daimyo and their samurai?

             This article reflects the views of Ms Tan and not those of any institution with which she is associated.