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Showing posts with label subsidies. Show all posts
Showing posts with label subsidies. Show all posts

Wednesday, June 11, 2008

Our Malaysia, Our Folly



Our Malaysia, Our Folly

It is high time that we face up to the fact that Malaysians are paying the price for their folly, and more distressingly, their vanity.

We were fools for believing in political rhetoric that left us divided, distrustful and wholly vulnerable to exploitation. We were bigger fools for having allowed our vanity to persuade us to that cause. As we clamoured and argued amongst ourselves about not very much to begin with, the Government we should have all been watching like hawks – for which government is it that has been capable of refraining from giving in to temptation – was on a frolic all of its own.

I drove into Putrajaya this morning. Once again, I was reminded of the colossal waste of money that Putrajaya was and continues to be. Leave aside the fact that most of us go to Putrajaya not because we want to but because we have no choice. Consider instead how much it cost us. Some speculated, almost reverentially, that it had cost some RM4 billion, a fearful sum beyond imagination. Some said it was far less, others insisted it was far more. Last month, under pressure from a more sizeable opposition presence in Parliament the Prime Minister disclosed that it had cost the nation to date a staggering RM11.83 billion

The Malaysian experience does not allow for any justification for that sort of expenditure. Rural and urban poverty is still a reality just as not having meaningful access to electricity and water is in some parts of the country. Those of us lucky to have access to these utilities are obliged to pay dearly for the privilege, just as we do for a range of other services. Our public healthcare and education systems need a major overhaul to get them to even acceptable levels and so on and so forth. The average Malaysian spends a great deal of time worrying about the fact that there is not very much left over at the end of the month and what that means.

The potential real development and essentials, from schools to dialysis machines to vaccines, that RM12 billion could buy is mind-boggling and the Government spent it all on Putrajaya. Did we need it? I do not think so but then, judging by the pontificating we have been hearing as of late, it would appear that the Government considers an ivory tower a prerequisite to it being able to function.

We are not without blame. We were stakeholders in the Government we voted in, it is what we allowed it to become. We let ourselves be seduced by its pied-piper tune of race and religion, privilege, supremacy and power sharing, stability and prosperity. We clapped our hands gleefully as it stroked our collective ego, some would say lobotomized us, with Malaysia Boleh.

Worlds best, truly Asia, everyone loves us. We are Malaysian.

We cheered as we were told that we were sending a Malaysian into space, even though it was costing a us a great deal of money, directly and indirectly – there were submarines in the mix, after all – and even though we really did not need a man in space, particularly one who was interested in making teh tarik and playing congkak.

We cheered as the petro-ringgits were spent as if they were going out fashion on the trinkets for us, and the big ticket items for a small elite. We cheered as we were told, over and over again, that we were the finest at this and the greatest at that, even as standards across the board were declining rapidly. University ratings, corruption and rule of law indexes, we slid down all of them without discrimination. Did we care? Apparently not, like that Emperor with his new clothes we were more interested in the lies.

The reality is that the Government does not have an explanation for the use of the billions of ringgit of oil revenue that has been generated since 1974. Though some of it has been ploughed back into the nation, a great deal of it has been applied without thought to the future or has been allowed to dissipate through unaddressed corruption, cronyism and sheer incompetence in an orgy of reckless and unnecessary spending. As the Malays say, bagai kera dapatkan bunga.

The question is what do we do about it now that rocketing crude oil prices have allowed us to see how mismanaged this nation has been, still is.

The veil has been lifted. As we stare out at the approaching storm clouds, we must be resolute, firm in our understanding and belief that inflation and hardship do not recognize race and religion, they cut into all of us. And we must recognize that it only as a united force, as Malaysians, that we can do what it is that needs to be done. Demanding our just dues.

(Malay Mail; 10th June 2008)

MIS

Wednesday, June 4, 2008

Of Subsidies And Corruption



Of Subsidies And Corruption

Subsidies are on everyone’s minds these days. Even as the rakyat is faced with the bleak prospect of a more difficult future as the reduction of subsidies impacts on their lives, the government has to figure out how to go about unraveling subsidy frameworks that though attractive when introduced are now threatening not only the competitiveness of the nation but also its sustainability. There are risks – social, political, economic – that need to be confronted in an environment not necessarily conducive to objective and rational consideration of the very crucial issues involved.

Though complaining, and vehemently at that, is tempting, it will not get us very far. The fact that to a large extent the subsidy problems we face today are the result of poor economic management in the past does not help address the situation. Political consequences will follow, we have to deal with the issue. As in other countries, change is necessary. The question for us really is what changes should be made and how they are going to be managed.

We pay taxes in various forms, they are the principle source of revenue of the nation. It is mainly these funds that are used to pay for the operating costs of a given year. In the social democratic framework that we are supposed to have, some of this money is to be used to provide for basic needs such as healthcare, schooling and essential infrastructure such as a reliable police force, efficient and effective regulatory frameworks, electricity, clean water and roads. This is not just about building the hospitals and schools, it is also about maintaining them and ensuring that the services provided are a sufficiently high standard. The same goes for roads, water and so on.

This is how it is meant to be in theory. If implemented, many of the basic needs of an average household would be taken care of, without the need for additional expenditure. A significant amount of the monthly earnings of the average householder would be freed up, making it easier to face the prospect of increased prices from the reduction or even elimination of subsidies.

The reality is however very different. Those who can choose private schools and private hospitals, use toll roads, and employ private security guards or live in gated communities. Do not just take my word for it, ask the average Minister what his or her lifestyle choices are.

These choices are not necessarily prompted by elitism. It comes down to confidence, or the lack of it. The truth is that the public services are worryingly deficient, if not in levels of competence then in resources, to an extent that for many they are no longer a viable choice. This is especially true where children are concerned. Parents want to give their children the best, often at great personal sacrifice.

In some cases, there is no question of choice. The privatization of water, electricity and energy production and the steady increase in their pricing have had a domino effect that have left many having to manage increasing expenditure on shrinking earnings. Too slowly, Malaysians have woken up to the painful realization of how everything happening on the macro level around them has a direct bearing on their lives. The widening poverty gap is leaving us poorer by the day.

Which is why being able to depend on public services is so crucial. As we have however seen, that is not something we can do. What we are paying taxes for then?

It is indisputable that corruption has to a large extent pushed us into the corner we are. We are paying the hidden costs. Things are that much more expensive or that much more inefficient because somewhere, at our expense, someone is making a gain or someone who was not good enough is being given a contract. And the reality is that when someone makes a corrupt gain in the millions of ringgit, that is our money being handed over. That is our right to development that is being denied.

It is a sad truth that many of us will suffer the impact of a removal of subsidies, and suffer badly for it, because we have been robbed of the means to face these challenges by endemic corruption. We stand alone purely because the money we invested over the years to weave our safety nets has been stolen from us. There are not nets.

Managing change as such must involve increasing integrity, accountability and transparency. Corruption cannot be a part of the equation. Improving public service, regulating effectively and efficiently where it is needed and ensuring that things are priced based on their value rather than the private needs of a fat-cat official, will make it easier for Malaysians to deal with increased prices where those are really needed.

That is the least this government can do for us. It will save a staggering amount of money from cutting back on subsidies, money that can be deployed more effectively and equitably. Money that leaves no room for excuse.

(Malay Mail, 3rd June 2006)
MIS