For over half a century–since the end of the Korean War in 1953 and the Vietnam War in 1975–the U.S. presence in the western Pacific has brought stability and security to the region. This has enabled economic development, with the inherent exchanges in investment and trade. Singapore is a prime example. Since the 1960s it has grown rapidly, its GDP rising from $974 million in 1965 to $223 billion in 2010. During the same period per capita income grew from $516 to nearly $44,000.
But American dominance in the region is now being challenged by China, whose economic rise is the most dramatic event of the 21st century. With the end of the Cultural Revolution (1966-76) the Maoist period of constant struggle to create perpetual revolutionary fervor passed into history. Deng Xiaoping, a pragmatist considered to be the architect of China's economic reform, restored stability and growth to his country. As vice premier of the State Council he visited Singapore in November 1978. The trip was a revelation. Deng saw how an island without natural resources was able to grow by linking up with the developed economies, inviting outside investment from multinational corporations and setting up logistic hubs and the services sector, which included the very important financial services.
Lee Kuan Yew is minister mentor of Singapore.
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