Sovereignty and National Security
Sovereignty and national security have always been key concerns for national governments. The need for self reliance and the avoidance of reliance on external parties are natural instincts for countries. In the early days, many developing economies adopted a policy of import substitution to avoid a dependence on foreign goods by creating domestic companies that can meet internal demands. Such initiatives also created jobs within the country to keep unemployment low. While these concerns and fears are legitimate and genuine, in today’s global economy, it does not make sense for every country to produce everything it needs, nor to have domestic companies run every industry.
For example, while steel is important for nation building, steel production is not something that very country can do or need to do. Instead, they buy what they need from whomever offers them the best value for money. Air travel is essential to international commerce, but not every country can produce their own aircrafts. Today’s main producers are Boeing and Airbus, and most airlines buy aircrafts from them. Extensive reliance on purchasing aircrafts from Boeing and Airbus has not limited the competitiveness and distinctive service level offered by globally successful airlines such as Singapore Airlines and Cathay Pacific. In the same breath, although many countries started with national carriers, not many have survived today, e.g. Swissair collapsed and the successor national airline Swiss was bought over by the German Lufthansa. Domestic production does not appear to be not a criteria for success.
What about the ICT sector?
Posted by Seow Hiong Goh at 06:06PM PST





I have just returned from Washington D.C., and it is refreshing to see an era of closer cooperation between the U.S. and Europe, not to mention the rest of the world, on climate change. As the U.S. delayed meaningful action on climate change for the past 15 years, the EU has set an ambitious target to reduce member states’ CO2 emissions by 20% from 1990 levels by 2020 – the so-called 20/20/20 initiative. The EU also created the European Trading System (ETS), the world’s first platform for trading of carbon credits. 



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