Categories
Politics & government

[2017] Of PAS-UMNO unity must remain dead if PAS is to live

The proposal to form a so-called unity government between PAS and UMNO finally finds its rightful place — in a dustbin. Nothing guarantees any PAS member from rummaging through the trash to rejuvenate the idea however. If the dream still lingers, I am here to offer a dire possibility. If PAS-UMNO unity comes true, PAS may break up as internal and external forces pull the political party in different directions.

Why is it a possibility?

PAS-UMNO unity will significantly affect the status quo balance of power. It will grant BN a proper majority in Perak. Selangor will suffer from a hung assembly. Other notable changes include the weakening of the opposition in many states and the absence of one in Perlis.

In sum, PAS-UMNO unity will be a major setback for Pakatan Rakyat.

That scenario has one caveat: it assumes all PAS members will remain united if the party defects from Pakatan Rakyat to work with UMNO. Given the kind of rift caused by the PAS-UMNO unity talks, that is a big assumption.

It is not every day one can expect Nik Aziz Nik Mat as the leader of PAS to tell off one of his prominent party members — Nasharuddin Mat Isa — to quit the party and join UMNO after Nasharuddin spoke warmly of the possibility of PAS-UMNO unity.

Later, 10 PAS members of Parliament went out to support Nik Aziz and to oppose any pro-UMNO activity within PAS.

The action of the 10 MPs is particularly revealing. For the more liberal members of PAS, or the Erdogans as they have come to be known, they have every incentive to not associate themselves with a pro-UMNO PAS. Many of the Erdogans contested in areas where voters come from diverse backgrounds. These Erdogans understand that they won on March 8, 2009 because they appealed to inclusive politics. They campaigned by convincing voters that PAS is for all and not just for the Muslims or the Malays, i.e. exclusive politics.

To have PAS working in concert with UMNO — as Onn Yeoh writes in The Edge[0] — amounts to betrayal of these voters. The very notion of unity between PAS and UMNO is based on the idea of exclusive politics, running contrary to the kind of campaign the Erdogans ran in the last general election. By the next election if the Erdogans are still part of a pro-UMNO PAS, these voters will not vote for the Erdogans. Hence, the future holds very little prospect for the Erdogans.

These Erdogans can of course undergo a rebranding exercise to adjust to exclusive-based politics that a PAS-UMNO coalition is expected to play. Notwithstanding the very appropriate accusation of hypocrisy that may come, these Erdogans will face stiff competition from the real conservatives within PAS as all compete for smaller pool of seats any exclusivist politician can expect to win. Furthermore, it is unrealistic to expect UMNO to surrender their seats to PAS in order to accommodate the Erdogans-turned-conservatives.

If PAS-UMNO unity happens, the only way for the Erdogans to secure their future is for them to demonstrate their commitment to inclusive politics and, inevitably, Pakatan Rakyat. This may translate into having the Erdogans or more generally the pro-Pakatan Rakyat members of PAS to either eject pro-UMNO members out of PAS, leave PAS in favor of PKR or even form a new party that DAP and PKR can work together under the banner of Pakatan Rakyat. In any case, the result will leave PAS utterly broken.

Only through this can they hope to secure their political future. The existing seat distribution formula within Pakatan Rakyat can continue to be used to accommodate these Erdogans, as long as they remain loyal to the coalition even as PAS finds itself in cahoots with UMNO.

For DAP and PKR, the stake is simply too high that both parties cannot allow PAS to defect so easily. It will in the best interest of PKR and DAP to embolden the Erdogans to mount a revolt against any movement towards PAS-UMNO unity, possibly leading to a breakup as described earlier.

The breaking up of PAS will limit any gain made by UMNO. It may prevent Selangor — the jewel of the crown — from experiencing a hung assembly. If Pakatan Rakyat is lucky, the maneuver can even prevent BN from gaining the coveted two-third majority in Parliament.

For PKR especially, there is an extra motivation to break PAS apart in case PAS-UMNO unity becomes a reality. PKR may enjoy an influx of high-quality members from PAS, especially if the pro-Pakatan Rakyat members of PAS decide to leave the party and not form a new party. PKR may need high-caliber individuals to strengthen its ranks and the Erdogan MPs do just that, if ever the Erdogans have a reason to part from PAS.

But, at the end of the day, the most preferable solution for DAP and PKR is to have PAS as a committed member of Pakatan Rakyat. Both DAP and PKR will want work to keep PAS within the young three-party coalition to build on the existing momentum. As we have seen, this is exactly the path taken by DAP and PKR.

As long as the most preferred option works, there is no need to resort to the second most preferred option. This is something everybody who wishes to see a strong PAS must understand.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

First published in The Malaysian Insider on June 24 2009.

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[0] — The much-hyped, but now abandoned, unity-government concept, first touted by PAS President Datuk Seri Hadi Awang in March, and welcomed by all and sundry within Umno is a betrayal.

From Pakatan Rakyat’s perspective, it is a betrayal of voters’ trust. Malays who voted for PAS did so because they preferred it over Umno. Non-Malays who voted for PAS didn’t do so because they wanted PAS but because they rejected Umno. In either case, PAS teaming up with Umno is the last thing these Malay and non-Malay voters want. [Unity govt a betrayal all around. Oon Yeoh. The Edge. June 22 2009]

Categories
Economics Politics & government

[2013] Of regretfully, fiscal deficit is a non-issue

The consistent fiscal deficit the federal government currently experiences is an issue far removed from everyday life. For many, it is an abstraction without concrete consequences. Hence, it is highly unlikely that the issue will be able to capture public attention and directly become a determinant in any election. This gives the federal government too much free hand in managing its fiscal position.

Despite the lag in effect, the persistent fiscal deficit presents real challenges to the economy and perhaps, more tangibly, to all taxpayers. It is so because the idea of scarcity is not something that is only valid within the theoretical world of economics.

It is because of scarcity that the concept of deficit exists. It is also because of scarcity that any deficit requires financing.

As far as the fiscal deficit of the Malaysian government is concerned, it is being financed through borrowings. The government issues debts in which market participants — be they individuals living within Malaysia or financial firms based abroad — purchase in return for greater payoff in the future.

So far, the federal government is fulfilling its existing debt obligations by issuing more debts. The situation on the ground at the moment allows that to happen but it does not take a leap in imagination to understand how a snowball may cause an avalanche. Argentina in 2001, for instance, defaulted from fulfilling its debt payments; it borrowed to finance its deficit for the longest time until its repayment requirement became too big for it to comply.

Malaysia still has a long way to go before that happens. Nevertheless, eventually, our deficit has to be attended. There are at least three ways to address the deficit: increase revenue, decrease government spending or default.

For any self-respecting government, defaulting is not much of a choice. The Argentine economy was in ruinous state after it defaulted on its payment; capital fled and dried up, bringing the economy to a screeching halt. Regardless of preference, the current local scenario that includes the maintenance of strong foreign reserves by Malaysia makes the likelihood of default very small.

Decreasing government spending is the policy path that libertarians favor because it necessarily reduces the size of government. Unfortunately, this will not occur anytime soon. Even during the Abdullah administration when the fiscal deficit finally saw relaxation, government spending continued to rise. Keynesian thinking meanwhile reigns supreme in the Najib administration; the government has expressed its intention to spend to stimulate the economy. The two factors set the momentum for the federal government’s fiscal position in the near future.

The third way is to increase revenue. This can happen by having enough growth in either non-tax revenue, tax revenue or both. With a healthy economy, those items can help in balancing the fiscal position. Without a sufficiently healthy economy, however, taxes simply have to increase to meet the gap eventually.

A tax increase is the clearest credible solution because it is increasingly clear that the fiscal deficit is structural in nature, and not cyclical. It is structural because it is arguable that we may have seen or are seeing the completion of a business cycle. In that cycle, the federal government has been running on a persistent fiscal deficit. Year 2009 will be the 12th consecutive year that the government has either failed or refused to close the gap and there is no reason to believe why year 2010 will not be registered in red ink.

A tax hike, however, is an unpopular policy, even when it is a potent tool in arresting the runaway fiscal deficit. Under the current political atmosphere where the Barisan Nasional-led federal government faces a considerable number of hostile voters, raising taxes is committing harakiri. The political situation demands spending.

In fact, the pressure is on Barisan Nasional to continue to spend in order to keep the economy going. More importantly, it has to keep voters happy by shoring up the economy in the short term to push its expiry date farther into the future.

Government spending is not necessarily bad or undesirable even in times of deficit. Yet, unless the government spends the money for the purpose of investment, spending for the sake of spending — as the two fiscal stimulus packages are doing — will further widen the difference between revenue and expenditure. For deficit hawks, the situation is gloomy because between investment and spending, the effect of the latter comes quicker than the former. Naturally, political expediency favors quick wins; quick wins mean the deficit will continue to take a hit.

Given the situation of a structural fiscal deficit, weak economic environment and political unpopularity, the only palatable short-term option is to continue to borrow to finance the deficit.

As a result, the present generation will be free from the burden of increased taxes and so too subsequent generations that are lucky enough to live during times when the economic situation allows the government to keep borrowing to finance its deficit. With the problem being out of sight and out of mind among the current generations, regretfully, there is no pressure to address the issue of fiscal deficit.

Somebody, however, eventually will have to pay those debts. By the time that happens, it is likely that the problem will become too big to handle.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

First published in The Malaysian Insider on June 15 2009.

Categories
Earthly Strip Politics & government

[2012] Of Earthly Strip: Missing courage

Some right reserved.

Categories
Politics & government

[2007] Of fraud in Iran?

ALERT & UPDATE: Death has been reported in Iran. See Tehran Bureau.

There are reports of fraud committed during the Iranian presidential election.

[youtube]0ruCwNPzDRY[/youtube]

Why are there people believing that fraud has been commited?

In recent days, Mr. Moussavi’s supporters were predicting a wide victory, citing voter surveys. And Mr. Ahmadinejad, the hard-line incumbent, had appeared on the defensive, hurling extraordinary accusations at some of the Islamic republic’s founding figures.

Iran’s Interior Ministry said Saturday that final results gave Mr. Ahmadinejad 62.6 percent of the vote, with Mr. Moussavi receiving 33.7 percent. The ministry says turnout was a record 85 percent of eligible voters.

Though there was no word of Mr. Moussavi’s whereabouts on Saturday, statements on his Web site made clear that he was contesting the official line. [Ahmadinejad Re-Elected; Protests Flare. Robert F. Worth. New York Times. June 13 2009]

An article in Wikipedia however states this:

The opinion polls in Iran have been considered unreliable. A number of polls conducted between relatively small voting groups, like university students and workers, have been reported as election propaganda. More general polls reported in the media do not state the polling organization nor the basic facts about the methodology. The results show a high variance and depend heavily on who is reporting the poll.[Iranian presidential election, 2009: Opinion polls. Wikipedia. Accessed June 13 2009]

It is not quite clear to me if it is a case of fraud or a case of where the loser refuses to accept defeat. But in any case, the way the presidential elections are ran in Iran does not command confidence: only candidates pre-approved by a cabal are allowed to contest.[1]

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

[1] — See President of Iran at Wikipedia. Accessed June 12 2009]

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

p/s — after reading the issue and the latest developing closely, I believe this could easily be an opportunity for a liberal revolution in Iran.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

pp/s — Professor Juan Cole of the University of Michigan presents the case for fraud.

Categories
Politics & government

[2004] Of Ms Fui does it again…

This is the kind of use of statistics that I absolutely abhor.

In the 1990 general elections, PAS’ support base stood at 375,867 votes. Last year, it reached 1.14 million, an almost threefold increase in 18 years. The huge increase in PAS’ support in last year’s general elections came mainly from its new supporters — the non-Malays.

By comparison, BN’s votes increased from 2.98 million in 1990 to 4.1 million last year, an improvement of only one-third. [BN vs Pakatan: Chinese reaction to PAS is the key. Fui K. Soong. The Straits Times via The Malaysian Insider. June 8 2009]

It is so bad, I think it is self-apparent. The logical gap is too wide to hide.

Spot the problem. Or problems.

Mind you, this is a CEO of an MCA think tank…

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

p/s — hints.

What was the percentage of Chinese who voted for PAS in 1990? In 2008?

What is the growth rate of total voters?

What about 1999?

Ong Kian Ming more or less raised this question in my Facebook account: how many seats PAS contested in 1990? in 2008?