Categories
Economics Politics & government

[2890] Second best solutions, democratic compromises and reforms

I do have strong policy preference, and that preference originates from my ideological leanings. But the preference only sets the default position, or more accurately, the initial stance. I am willing to be swayed by data and models but then again, over the years, I have learned data and models can be bent so much even with the best assumptions, it can be interpreted in various ways that make the numbers never quite as objective as it is made out to be. In the end, it is the context of the numbers that is important, not the numbers themselves. Numbers alone can be meaningless in social science, and economics.

I have become less ideological over the years, especially after the 2008 global financial crisis, and my policy preference is driven more and more by empirics. But after a year in the public sector, I find my preference has not quite been assaulted by empirical results. Rather, it has been a lesson on compromise and second or even third-best solutions.

Second-best solution is arrived at when the ideal solution is not possible given some constraints. The best solution is technically possible in the sense that it is technologically or economically possible. However, the challenges from the political or social aspects make it difficult to achieve fully.

For instance, I prefer to have the ECRL be cancelled outright. It does not seem very economically viable, and there are cheaper ways to encourage connectivity across the country while developing the areas outside of the peninsular economic centers. But the need to be careful with China, especially at a time when the global economy is at risk of heightened protectionism with Malaysia dragged into an unwanted trade dispute, means my policy preference is out of reach.

And it is not merely a theoretical concern. After all, China did employ unfair trade practices on the Philippines just to punish the latter over totally unrelated issues involving the overlapping claims in the Spratlys and the Paracels several years back. China can be a big bully, as any big power can be, and Malaysia being a small open economy should not test that proposition by too much. We have been successful in pushing for our case with China, but one has to wonder where is that line that we should not cross.

That is one example of having to land on a second-best solution, with an external consideration.

But more often than not, the challenges are internal in nature.

In a democracy where consensus is absent, the available solutions are frequently second best. There are so many stakeholders to take care, making compromises a must.

Just today, a senior civil servant asked how do I feel about working in the public sector, and how does it compare against the private sector. I answered that professionally, working in the public sector was tougher than in the private sector. In the former, there were so many parties to manage and to satisfy, whereas in the private sector, one could doggedly pursue an agenda, or even bulldozed it all the way through. In a way, achieving the ideal solution is easier outside of government than inside of it.

However, that does not mean the public sector is redundant. Many things do require the public sector to work and cannot be done through the private sector alone. It is the reality of a non-anarchist world, which is true almost everywhere in this world.

This can be linked back to the manifesto of Pakatan Harapan.

The Institute for Democracy and Economics Affairs, a think tank I somewhat have a relation with, today criticized the government for being overambitious with its election manifesto, and for the government’s weak resolve in delivering its promises.[1]

I would say that the manifesto is an example of the ideal solution, and the current situation is a second-best solution.

And this does not yet account for the fact that even the manifesto is a work of compromise, and that a manifesto as an ideal is supposed to be bold (in a good way, not the Brexit shambolic way). Furthermore, many supporters of the government work on having reasonable compromise. I for one is not 100% in agreement with the manifesto. But the urgent need for reforms after years of proliferating brazen grand corruption meant compromise had to be made to achieve a goal of cleaning the country. Second-best solution was what we had, because the ideal was not achievable.

Hafiz Noor Shams. Some rights reservedHafiz Noor Shams. Some rights reservedHafiz Noor Shams. Some rights reserved

But coming back to the criticism leveled by the think tank on the government lacking sufficient resolve to deliver institutional reforms, I think I can come out and say such reforms are still coming and it is not clear whether on its own context that it would be demoted from the ideal to the second best solution. Besides, it is not as if there was no reform at all. All too often, people forget the significant reforms that are already staring them in the eyes, be it the separation of powers between the prime minister and the finance minister, wider application of open tender, greater transparency and freer media.

There are challenges even in the areas I have cited where reforms have happened. But wide-ranging reforms require time, especially in a robust democracy. Mock the line all you want, but you know it is true.

The important thing is that, we must persist. Democracy simply does not end at the ballot box. It is more than just going out to vote. A fancy deck does not a reform make, too.

Hafiz Noor Shams. Some rights reservedHafiz Noor Shams. Some rights reservedHafiz Noor Shams. Some rights reserved

[1] — The government has set a list of unrealistic goals and showcased a lack political will to fulfil other achievable promises made in the Buku Harapan GE14 election manifesto, according to the Institute of Democracy and Economic Affairs (Ideas). Ideas research director Laurence Todd (photo, above) said the think-tank’s ongoing Projek Pantau monitoring of 244 selected sub-promises found little progress made to about 30 percent of the “unrealistic goals” set in areas of education, institutional reforms and the economy. [Alyaa Alhadjri. Report card on Harapan shows ‘unrealistic goals’ in manifesto. Malaysiakini. June 28 2019]

Categories
Activism

[2608] NGOs and foreign funding; a statement by IDEAS

Given the nonsense going on with respect to NGOs and foreign funding, I am glad IDEAS has come up with something:

Press Statement on foreign funding for Malaysian entities

Barisan Nasional MPs should not be so paranoid about the incoming of foreign funds to support NGOs in Malaysia. After all, Barisan Nasional parties also receive American support, with the latest one being just last weekend at a luxurious hotel in Kuala Lumpur. This is not new because, in fact, Barisan Nasional leaders have been receiving foreign support too for many years.

And many bodies close to the government have also received foreign funding. For example, I have in front of me evidence that a think tank close to the government receives support from a foundation linked to a Christian Democratic party from abroad.

Foreign funding is a norm for many NGOs. Just like the government is working hard to bring in foreign investment, we too work hard to attract foreign funds to help grow the country. Surely the foreign support received by Barisan Nasional parties last weekend is not meant to weaken but to strengthen the institutions of government. These support should be cherished, not condemned.

Note: For details of funding received by IDEAS, please see our Annual Report here: http://ideas.org.my/?page_id=2625 [Institute for Democracy and Economic Affairs. Press Statement on foreign funding for Malaysian entities. October 5 2012]

Categories
Economics Personal

[2418] Clarification about me and IDEAS

Last Monday, the Sun published a report on food stamp. They interviewed me for that report. The authors of the report quoted me as “a member of the Institute for Democracy and Economic Affairs (IDEAS) and is responsible for its economic studies arm.”[1]

While I spoke to one of the authors on behalf of IDEAS, I would like to clarify that I am not responsible for the “economic studies arm” of the institute.

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

[1] — Hafiz Noor Shams, a member of the Institute for Democracy and Economic Affairs (IDEAS) and is responsible for its economic studies arm, said: ”Food stamps are not the best idea, but not the worst either. It is a short-term solution to an immediate need.” [Pauline Wong. Michelle Chun. Experts: Food stamps only ‘short-term solution’. The Sun. August 22 2011]

Categories
Liberty

[2379] The spread of libertarianism in Malaysia

I just had a conversation with Delphine Alles, a PhD student at Sciences Po today. She is researching about libertarianism in Southeast Asia. I thought it was an interesting conversation because it forced me to straighten up my own thoughts on the history of libertarian movement in Malaysia.

One question: how did it happen? How did libertarianism spread in Malaysia?

I struggled with that. Here is my opinion nonetheless.

The spread of libertarianism — the free market kind obviously — is a recent phenomenon in Malaysia. I thought it seeped into Malaysian consciousness through Malaysian graduates from the US and UK universities. I admit that there might have been individual libertarians much, much earlier from other sources but as far as popular discourse is concerned, it is a recent phenomenon.

That is primarily thanks to the Institute for Democracy and Economic Affairs. IDEAS despite being a small grouping of libertarians has certainly punched above its weight. What made IDEAS a revolutionary force was that before them, libertarianism was confined almost exclusively to the blogoshere. Today, libertarian ideas are everywhere. Switch on the TV and there is a good chance you will see a libertarian speaking. Ditto for popular printed and electronic newspapers.

Did any tradition underpin the spread? Was a particular school of thought responsible for the spread?

I think not. If Malaysian libertarianism was spread by any particular tradition, then it was only through those engaged in popular discourse. Their understanding of libertarianism may be traced to certain traditions, but I think it is such a hodge-podge collectively that in the end, it is hard to see which tradition prevails. So, it is easier to say that it is due to these individuals. In some ways, these libertarians are the first generation libertarians in Malaysia.

Libertarianism has been popularly spread through issues. To put it another way, popular libertarianism in Malaysia is issue-based libertarianism. Delphine reframed it as pragmatic libertarianism. I have trouble with the term pragmatic because it alludes to cafeteria libertarians (ersatz libertarians to put it politely). Yet in a limited sense within local context, it is pragmatic libertarianism.

When I said issue-based, I meant libertarianism in the popular sphere. In the media, it is very rare if at all there is a case where libertarianism is written or explained explicitly by citing big names like Mises, Hayek, Rothbard and Friedman, or done axiomatically in the way Nozick did in Anarchy, State and Utopia.

Rather, it is the application of the first principles that made the spread of libertarianism possible. When issues arise, libertarian solution is offered. For instance, in the case of fuel subsidy, the virtue of free market is put forward. In case of religious conflict, freedom of conscience is offered as justification for a more liberal treatment of the issue. In education where the quality of public education is hotly debated, private initiatives are suggested as the solution to improve education outcome.

Because of this, popular libertarianism tend to be deficient compared to pure libertarianism. Questions that do not arise frequently in Malaysian society do not get answered. Malaysian libertarians in the popular arena are silent when it comes to right to arms for instance. Or a libertarian foreign policy.

Delphine asked about self-determination, i.e. what would local libertarians think about Pattani, Mindanao and the likes. A proper libertarian would have strong position on the matter but popular libertarianism gives it a shrug because it is not a concern to Malaysians, never mind a local libertarian consensus is likely hard to achieve, making a summary impossible. Whatever it is, the shrug leaves the general public unaware of the systematic view of libertarianism, which at the individual libertarian level is possibly well-argued.

In fact, it can only be well-argued and understood in intimate sessions, like in small discussion groups and such. Any full-blown discussion about libertarian in the public sphere would quickly bore laypersons, who are more interested in issues, not first principles.

The deficiency is not a problem by itself because popular libertarianism is meant for public consumption. It is meant to increase public aware of the libertarian alternatives. What is satisfying about this is when some strangers speak of an issue, he or she uses libertarian argument without realizing that argument is a libertarian implication.

That of course may create ersatz libertarians, but for a philosophy that began with a penny in its pocket here in Malaysia, it is a start.

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

p/s — there were some self-proclaimed classical liberals earlier but I think I have come to discount them because I distrust them from one reason or another. I have concluded that they are liberal only in superlative sense. In a conservative society like Malaysia, it does not take much to be a liberal superlatively.