the __earthinc

While I am happy with a new path made possible by the recent general election, I am slightly disappointed at the way DAP and PKR are dismissing the outmoded New Economic Policy. Prior to the election and the campaigning period, I was impressed at how the two parties leaders were rejecting the NEP at the policy level. During the campaigning period however, there was a subtle change in reasoning. Suddenly, the NEP is being rejected because of its flawed implementation.^[1] While obviously annoyed at the change of approach, I kept mum throughout the contest; there is time for a debate and there is time to bite one’s tongue. When there is an enemy in front of oneself and the situation is pressing, one does not conduct a debate with one’s compatriots on how to outmaneuver the enemy. Instead, one pulls his knife out and march forth. But now with the enemy vanquished, the time for the debate has arisen yet again.

The NEP is an outdated policy because it fails to adapt itself to new reality of freer global market. At one time given the landscape of the 1970s, it was a suitable policy but now, it is clear that the NEP is one barrier the Malaysia must overcome to realize a freer market and achieve greater prosperity. Another reason is that there are better policies out there that seek to eradicate of poverty or more realistically, provide social mobility compared to the NEP. The NEP assumes that only the Malays are poor whereas in fact, the Malays are not economically homogeneous and neither are other ethnic groups in this country. In other words, the NEP is a blunt policy. A better policy with the intention of providing social mobility and equality of opportunities are the ones that are conscious of socio-economic indicators — meritocracy.

The NEP is being exploited exactly because it is a blunt policy. With its flawed or outdated assumption that all Malays are economically backward, the well-off Malays are undeservedly receiving aid despite the fact that they can effort to live comfortably without any kind of affirmative action. Due to the way the policy is designed, benefits meant for the poor are now enjoyed by others. This rationale parallels the thinking that fuels the awfully badly designed fuel subsidy policy in Malaysia.

Observe how the flaw is at the policy level and not at the implementation stage. When the policy is flawed, its innate handicap is merely being executed at the implementation stage.

Rejecting the NEP because of its flawed implementation is a flawed thinking. Economist Mahani Zainal Abidin said several days ago something to the effect that if the implementation of the NEP is flawed, then policy should be retained with only its implementation processes modified to make it more effective. She is absolutely right.

If the NEP is to be rejected, its rationale has to be deeper than mere flawed implementation.

^[1] — Demikian penegasan Menteri Besar Selangor, Tan Sri Abdul Khalid Ibrahim mengenai pendiriannya mengenai pelaksanaan Dasar Ekonomi Baru yang dikatakan akan dihapuskan di bawah pentadbiran DAP di Pulau Pinang.

“Apabila tahun 1990-an, kita dapati DEB telah disalahgunakan yang hanya mementingkan segelintir masyarakat Melayu dan segelintir masyarakat Cina dan India yang mempunyai hubungan dengan Umno,” katanya dalam sidang akhbar yang diadakan di Kediaman Rasmi Menteri Besar, di sini, hari ini. [“DEB disalahguna, diselewengkan” – Tan Sri Khalid. HarakahDaily. March 17 2008]