Peripheral Capitalism and Urban Order: ‘Informal Sector’ Theories in the Light of Singapore’s Experience

Abstract

Of the various forms which the new international division of labour has taken, that of peripheral capitalism is one of the most interesting, but least understood. Peripheral capitalism in this context refers to secondary (i. e non-metropolitan) economic centres in which capitalism is the primary mode of production, but which are themselves in a relationship of considerable dependency on fluctuations in the world capitalist markets for their viability. This is frequently because they are manufacturing and assembling centres for that market, have relatively small (affluent) internal markets, are not centres of ‘R and D’ and whose capitalisation is largely in the form of foreign funds. Such centres are heavily export oriented and, although they may serve as financial and servicing points for their own regional hinterlands, are inescapably integrated into the world system. Of such peripheral capitalist economies in Asia, one of the best examples is that of Singapore. The purpose of this chapter however is not to explore the economic dimensions of peripheral capitalism, but to explore some dimensions of its impact on urban social patterns and especially the fate of the ‘informal sector’, which in most Asian economies plays a major part in the generation of incomes, employment and services. Singapore provides an especially interesting case study of this because of the high degree of urbanisation and equally high degree of state intervention in all areas of social life.