Japan and the Gulf crisis: Still searching for a role

Neither the major assumptions of developmental statist theories nor their revised arguments (e.g. network and internal organization theories) can persuasively elucidate the South Korean state's strong autonomy vis‐à‐vis the capitalist group in establishing and implementing economic/ industrial policies. A more relevant elucidation can be made by attending to the following three points: 1) one can more clearly show the former's autonomy in relation to the latter by examining discordant rather than amicable aspects of the relationship between them; 2) the strength of the East Asian state's autonomy lies not in its inherent, absolute cohesiveness but in its ‘political integrating power'; 3) in interpreting the state's strong autonomy vis‐à‐vis society, more research on political and administrative factors (rather than economic ones) need to be conducted. Also important are the behaviour of political and administrative agents who operate institutions and various interactions among them. To enforce these points, this article analyzes the political aspects of the state‐capital relationship while the South Korean government established anti‐chaebôl policies to restrict economic concentration via big businesses.     

Unintended consequences: social policy,state institutions and the ‘stalling’ of the Malaysian industrialization project

Abstract

This paper examines the relation of particular forms of social and labour market policy to economic development. Taking the history of Malaysian industrialization as its empirical case, the paper assesses the unintended consequences of redistribution policy, on the one hand, and migration policy, on the other, for the limited upgrading of the country's electronics industry. It argues that, while the former has been central to social harmony in Malaysia's multi-racial society, it has contributed to the underdevelopment of small and medium-sized firms capable of linking with the TNCs on the basis of knowledge-intensive and higher value-added operations. Migration policy, on the other hand, has allowed manufacturers to have continued access to supplies of low-cost, lower-skilled labour that have released the pressures that would otherwise have been there for technological and skill upgrading in the electronics industry. Only in Penang, where regional state institutions have intervened to encourage SME upgrading, has the national picture been moderated. Malaysia's industrialization project emerged at time when export competition in manufactured commodities was less intense than it is now. Largely as a result of federal government priorities and for other reasons explored in the paper, advantage was not taken of this ‘window of opportunity’. As a consequence, the country's industrialization project – exemplified by its electronics industry – is now ‘stalling’ in the sense that it remains locked into low- to medium-technology operations. With the rise of China as a manufacturing exporter, this is a dangerous situation for a country's principal industry to be in.     

The political economy of education and skills in South Korea: democratisation,liberalisation and education reform in comparative perspective

The success story of Korean economic development is intimately linked with the so-called developmental state; and education policy, as part of centrally orchestrated industrial policy, played a critical role in the country's rapid industrialisation, which allowed for high employment rates, relatively modest social inequality and remarkable social mobility. However, the Korean success story has started to show ‘cracks’ – with labour market dualisation, rising inequality and ‘over-education’. While acknowledging the importance of the East Asian financial crisis as external shock for the Korean political economy, we suggest more fundamental problems in the socio-economic and socio-political underpinnings of the developmental state and its education and skills formation system for understanding how Korea's economic and education miracle turned into ‘education inflation’, skills mismatch and social polarisation.     

Taiwan and the geopolitics of late development

Abstract

Through a case study of Taiwan, this paper seeks to address recent debates surrounding the transformation of developmental states in East Asia. Whilst a number of authors have cited the Taiwanese state as being both cautious and resilient in the midst of global restructuring, this paper seeks to critically engage with such arguments by highlighting the dynamic and mutually constitutive relations between the forms of social relations that underpin late development and the wider geopolitical system in which such development occurs. Specifically, Taiwanese industrialisation can be viewed as an outcome of the US intervention in the Chinese civil war and subsequent exclusion of China from the regional political economy in the period between the Korean and Vietnam Wars. The Kuomintang (KMT)'s retreat to Taiwan established the basis for the autonomous developmental state, and the US underpinned this state through military protection, aid and access to its own domestic market. However, the relative decline of US hegemony and the readmission of China into the international system have posed significant challenges to Taiwan's developmental state. The US sought to redress its trade imbalance with East Asia by placing pressure on Taiwan to liberalise its political economy. Furthermore, the very process of development itself served to undermine the autonomy of the state as it came under pressure from new social forces. Taiwan has more recently been faced with a dilemma of closer integration with the mainland or the maintenance of its de facto economic and political independence at the risk of becoming isolated from the global trading system.     

Renewable energy and East Asia's new developmentalism: towards a low carbon future?

Abstract

East Asia's renewable energy (RE) sector has grown faster than any other region's since the mid-2000s. It is argued that renewables formed an integral part of the region's new industrial policies and new developmentalism, which are founded on new configured forms of state capacity shaped in response to various challenges, primarily climate change, energy security, globalisation and global neo-liberalism. By studying the recent progress of East Asia's RE sector, we gain useful insights into these key developments in East Asia's political economy and the region's prospects for transition towards low carbon development. This analysis considers how and why different approaches to RE policy emerged in East Asia, to what extent the promotion and expansion of East Asia's RE sector is part of a new industrial policy paradigm and new developmentalism, and what the study of East Asian policies on promoting renewable energy can tell us about the region's broader approach to low carbon development. Although the promotion of renewable energy has been a fundamental part of East Asia's recent macro-development plans and new developmentalism generally, these same plans suggest that East Asian states will simultaneously continue to significantly promote high carbon and ecologically damaging industrial activities, thus undermining the low carbon credentials of East Asia's new developmentalism. The path to meaningful low carbon development will be very long and will take many decades to achieve. However, it is contended that by maintaining and improving their various forms of state capacity over time, the East Asian states will be well positioned to sustain the significant growth of their renewable energy sectors and thereby further strengthen the low carbon development orientation of their new industrial policies, macro-development plans and strategic economic thinking.     

Citizenship rights in Malaysia: the experience of social and institutional discrimination among ethnic minorities

This article examines the experience of political, social and cultural rights for Malaysia's ethnic minorities. Using a survey method, our research finds that while Malaysia has made substantial economic progress, lack of attention to political, social and cultural rights for ethnic minorities in Malaysia has meant that ethnic minorities have become increasingly dissatisfied with their experience of citizenship. Experiences of institutional and social discrimination within Malaysia's ethnically differentiated model of citizenship are common. Such experiences can lead to low levels of confidence in Malaysia's national institutions and have the capacity to undermine the kind of political support that is necessary for good governance and national stability.     

State intervention and neoliberalism in the globalizing world economy: lessons from Singapore's regionalization programme

The recent 1997-98 Asian economic crisis has thrown Asia's divergent pathways to development into serious question. Protagonists of neoliberalism argue that their agenda is now becoming a global orthodoxy when several ailing Asian economies have accepted IMF packages which come with neoliberal economic programmes. Drawing on lessons from Singapore's regionalization programme, this article contends that it is far too early to conclude that Asian developmental states are giving up their governance of domestic economies. Instead, there is evidence that these Asian developmental states are re-regulating their domestic economies to ride out of the economic crisis. The article first starts with the debate between neoliberalism and state developmentalism in our understanding of global political economy. It then examines the political economy of Singapore's regionalization programme through which Singapore-based transnational corporations are strongly encouraged by the state to regionalize their operations, followed by a critical discussion of the impact of the recent Asian economic crisis on the re-regulation of the regionalization programme by the state in Singapore. Some lessons for Asian emerging economies are suggested in the concluding section.     

Malaysia 13th General Election: A short note on Malaysia's continuing battle with ethnic politics

Malaysia's Barisan Nasional (a coalition of mainly ethnic-based parties) secured a narrow win in the country's recent election. Reacting to the dismal result, Malaysia's Prime Minister Najib Abdul Razak blamed his party's losses on the “Chinese Tsunami”, which he described as the overwhelming support of Chinese voters for the opposition party – the Pakatan Rakyat (PR). This note believes that the debates on “Chinese Tsunami” highlight a larger imperative; Malaysians' constant struggle with race relations and what constitutes the character of Malaysia's political economy. Improving Malaysia's ethnic relations in the next five years remains daunting. The BN's weaker mandate and the PR's eagerness to assume leadership threatens to recycle more populist policies that can do more damage to Malaysia's ethnic relations.     

Privatising electric power in Malaysia and Thailand: politics and infrastructure development policy

Electric power development in Asia until recently has been a monopoly of the state, with the power sector's planning, finance, construction and management being a part of government activity. The surge in demand for power, as well as external pressures, induced Asian governments to allow private sector participation in electric power. The Malaysian and Thailand cases represent different patterns of policy‐making regarding privatisation. In Malaysia, the government divested Tenaga Nacional Berhad in 1992 and awarded independent power producers (IPPs) licences to build and sell electricity to Tenaga for transmission and distribution. The IPPs were awarded without tender to friends of the government and the system has enabled the IPPs to make large profits at Tenaga's expense. In the Thai case, privatisation has been a very slow process as successive governments since 1989 have not had the power to initiate extensive divestment of IPP contracting. Privatisation in Thailand is a very contentious political issue and the employees union of the Electricity Generating Authority of Thailand (Egat) is very powerful. Thus, while Malaysia has had extensive privatisation of the power sector, the system eliminates competition in power supply resulting in a higher price of electricity for consumers. Copyright © 2003 John Wiley & Sons, Ltd.     

The Asian financial crisis and financial reforms in China

Abstract

Although China has avoided the direct attack of the Asian financial crisis, it has suffered secondary consequences leading to an economic slowdown. More importantly, the plight of its neighboring countries has driven home the urgency of financial reforms as China shares many of the problems at the root of the crisis in Thailand, Indonesia, Malaysia, and Korea. This article reviews the reform measures adopted by the Chinese government since the crisis. It analyzes the political dynamics of financial reforms in terms of state preferences and state capacities. In retrospect, the Asian financial crisis may well be seen as a turning point in reforming China's financial system.     

Beyond religious affinity: Malaysia's relations with countries in the Arab Gulf

Abstract

Economic and political changes at the global level have simultaneously shifted Malaysia's interests in the Arab Gulf countries. The economic liberalisation and transformation agenda that emerged in these economies are argued to be contributing factors to Malaysia's interest in expanding its economic relationships with the countries. Although the current cooperation between Malaysia and the Arab Gulf countries is aimed at reaping economic benefits, religious values also constitute an important foundation for these relationships. This article seeks to understand why politics, economics and religion remain the key drivers in determining Malaysia's relations with the Arab Gulf countries. The paper also suggests a future direction for engagement between Malaysia and Gulf Cooperation Council countries.     

When does the multiple principals hypothesis hold? The politics of U.S. agency policymaking autonomy

When the bureaucracy's political principals hold different preferences for policy, does this increase the bureaucracy's policymaking autonomy? Existing theory strongly suggests “yes.” We, however, argue that this pattern will materialize only when the bureaucracy's principals are all on the same side of the political divide. (i.e., unified government). Using data gathered from the American states at two time points, we capture preference divergence by measuring the ideological distance between the bureaucracy's key political principals—legislators, governors, and courts—on the common left–right dimension. We measure policymaking autonomy through multi-faceted surveys of state agency leaders. In keeping with our argument, we demonstrate that greater preference divergence across the bureaucracy's principals is associated with increased agency policymaking autonomy under unified—but not under divided—government. The results shed new light on when, and why, the bureaucracy's political principals may provide an oversight check on the policymaking power of the modern administrative state.     

The rise of China as a constructed narrative: Southeast Asia's response to Asia's power shift

This article examines the rise of China from the perspective of three selected countries – the Philippines, Vietnam, and Malaysia – in Southeast Asia. I argue that their perceptions of China's rise are political constructs: while the objective reality may be an increasingly powerful China, their responses have been far from uniform. They vary in ways that are shaped by their domestic politics. These constructed narratives serve their respective political agenda, from leadership legitimacy to the supremacy of a party faction. Since theories of international relations tend to fixate on power politics between great powers, this article explains how and why small regional powers add to the process of understanding China's rise. In short, regional states’ domestic politics affect their narratives of China, and therefore affect how China's rise is being understood in the region and beyond.     

Ethnic politics,complex legitimacy crisis,and intramural relations within ASEAN

This article examines ethnic conflict and its impacts on intramural relations within the Association of Southeast Asian Nations (ASEAN). It suggests that ethnic politics at home often propels leaders to get involved in ethnic conflict elsewhere. In the ASEAN context, regional institutions, especially the principle of non-interference, mitigate the effects of ethnic politics and preclude the possibility of coercive intervention. The third state is more likely to appeal to facilitation or mediation. On the side of the host state, when the regime faces complex legitimacy crisis, it is more likely to reject the third state's involvement. Ethnic conflict is likely to cause diplomatic tussles between the two states. In contrast, when the regime of the host state enjoys a higher level of legitimacy, it is more amenable to the third party's mediation. Cooperation on conflict management will foster inter-state trust. This article illustrates the above mechanism by examining Malaysia's role in Thailand and the Philippines’ ethnic insurgencies.     

Malaysia's March 2008 general election: understanding the new media factor

Abstract

The Malaysian general elections held on 8 March 2008 proved to be a historic event. For the first time, the political opposition managed to deny the incumbent National Front coalition a two-thirds parliamentary majority. Attempts to explain the opposition coalition's 2008 success have identified new media as a critical factor that turned the tide in the opposition's favour. The purpose of this paper is to better understand the new media factor at the 2008 elections and its immediate aftermath by analysing its role, advantages proffered, and limitations in terms of advancing democratization and greater political openness in Malaysia.     

Stress testing leadership in Malaysia: the 1MDB scandal and Najib Tun Razak

Malaysia's strategic development fund, 1 Malaysia Development Corporation, has suffered enormous losses. Funds have been traced to the accounts of the prime minister, Najib Razak. Amid the scandal that has followed, Najib's leadership has been challenged. Analysis begins by identifying the institutions that have historically stabilized Malaysia's politics, including a single-dominant party, a fused party-state, an electoral authoritarian regime, a controlled legislature, and a powerful security apparatus. Next, it examines how these resilient institutions fell into the hands of Najib's rivals, converting them into ‘threatening vectors’. Finally, it shows how Najib, in exercising ruthless new leadership, regained control over institutions and turned back challenges.     

Service targets and methods of redress: the impact of accountability in Malaysia

Malaysia's public service has decisively oriented its business activities towards meeting the needs of users. This brief review of what is known as the ‘Total Quality Management Programme’ outlines the four key elements of Malaysia's initiative, namely, the setting of service targets, measures of performance, work improvement, and the ‘service recovery system’, applied to redress grievances. (© 1997 by John Wiley & Sons, Ltd.)     

Legislation against Hate propaganda

Over the last decade there has been much academic and journalistic probing of the Malaysian prime minister's expressed attitudes towards Jews. That attention was renewed in 1997 following Dr Mahathir's recent denunciations of international currency speculation, as personified by George Soros. Yet at the same time that Dr Mahathir and his followers express their adverse views concerning Jews, there has also been evident in contemporary Malaysia, especially among the Malay political elite surrounding Dr Mahathir, a paradoxical fascination with the idea of 'diaspora', a desire to discover and even invent or create a 'Malay diaspora'. Understanding this peculiar 'diaspora-envy' may provide some insight into the modern Malay aspirations towards cosmopolitanism and 'global reach' that Dr Mahathir, with widespread domestic support, projects internationally. This 'diaspora-envy' seems the obverse side of Dr Mahathir's more direct and controversial views concerning Jews, and may throw some fresh light on them. Instead of providing evidence of classical political antisemitism, the views of Dr Mahathir and other leading Malaysians about Jews are the by-product of their views about other issues, especially the residue of a generally traditional religious education.     

How federalism influences welfare spending: Belgium federalism reform through the perspective of the synthetic control method

The question of whether and how federalism influences a country's welfare state has been a longstanding concern of political scientists. However, no agreement exists on exactly how, and under what conditions, federal structures impact the welfare state. This article examines this controversy. It concludes theoretically that the specific constellation of federal structures and distribution of powers need to be considered when theorising the effects of federalism on the welfare state. Using the case of Belgium and applying the synthetic control method, it is shown in the article that without the federalism reform of 1993, the country would have had further decreases in social spending rather than a consolidation of this spending in the years after 1993. In the case of Belgium, the combination of increased subnational spending autonomy in a still national financing system provided ideal conditions for a positive federalism effect on social spending to occur.     

Interest group dynamics in a weak and transitional state: the case of Bolivia

Bolivia's political development has been characterized by elitist control set in an environment of political instability and a weak decentralized state. Since the 1980s and Bolivia's transition to a limited form of democracy, this elitist control has been successfully challenged from the left and, since the early 2000s, particularly by the indigenous population. In fact, Bolivian contemporary politics and interest group activity have been shaped mainly by the rise in political power of the left and indigenous interests. This rise, given a weak state transitioning to limited democracy, has had several consequences for interest group activity that add increasing complexity to the group system. One consequence of Bolivia's course of political development is that, although it exhibits many common elements of interest group activity explained by existing group theories, aspects of its group development are not adequately accounted for by these theories. In addition, there are questions about whether the new configuration of interest groups promotes or undermines democracy. Copyright © 2014 John Wiley & Sons, Ltd.