Hardest part of democracy: Creating beneficent state<\/p>\n
Peter Milne, Jakarta<\/p>\n
Few can doubt the historic importance of the peaceful and
\ndemocratic passing of executive power to Indonesia's first ever
\ndirectly elected president later this month -- with the former
\ngeneral-turned-democrat, Susilo Bambang Yudhoyono as the winner.<\/p>\n
Indonesia and its citizens deserve a standing international
\nround of applause for this achievement in just six years since
\nformer president Soeharto stepped down in disgrace in May 1998.
\nNot only is this transition towards political democracy of
\nimmense significance for the future of Indonesia and its people,
\nbut it also sets a major precedent for the rest of the Muslim
\nworld, if not most of the developing world.<\/p>\n
However, before we allow ourselves to be carried away on a
\nwave of euphoria similar to that witnessed after the country's
\nfirst free-and-fair general election in 1999, it is worth
\nreflecting on what still remains to be done on the journey
\ntowards fuller liberal democracy.<\/p>\n
If the long-term goal of democracy in Indonesia is prosperity
\nand personal freedom, then increasing political democracy through
\ndirect presidential elections is only one, albeit important,
\nsmall step. Only a deeper liberal democracy, complete with a
\nwealth-creating liberal market, can nurture prosperity and
\npersonal freedom. Liberal democracy is only half-baked where
\npersonal freedom exists in the absence of a liberal market.<\/p>\n
One of the hardest steps for Indonesia in moving towards a
\ndeeper democracy in the next few years is likely to be in
\naccepting and embracing a truly liberal market economy. But while
\nmany may beg to differ, it is this democratic relationship
\nbetween politics and the market that will create full democracy
\nin the sense of prosperity, equality and the best use of the
\nstate's resources -- not to mention the protection of the very
\ndemocratic processes that this transformation rests upon.<\/p>\n
For so long, Indonesians have been imprisoned by the idea that
\nsomehow their indigenous wealth was being taken from them --
\neither by devious foreigners or by each other. This mindset is
\nthe antithesis of a democratic and liberal quest for creativity
\nand opportunity. What Indonesians need to focus on now is not
\nfighting over how much of the cake they can each lay claim to;
\nafter all, this is a zero-sum game in which what one person takes
\nanother must forfeit.<\/p>\n
Instead, if a culture of liberal democracy (and the creation
\nof a liberal market) is channeled into making the cake bigger,
\nthen all Indonesians stand to benefit. This is just as much an
\nindispensable component of liberal democracy as directly electing
\na new leader.<\/p>\n
So, what are the main characteristics of this beneficent
\nliberal democratic state liberal democratic state that can both
\ncreate wealth and ensure that it is distributed more fairly?<\/p>\n
Using three qualities suggested by Martin Wolf, associate
\neditor of the Financial Times suggests three in his recent book
\nWhy Globalization Works,let's look at the Indonesian situation.<\/p>\n
First, Indonesia needs to develop a new morality as it moves
\naway from the predatory state of the past, typified by the latter
\nSoeharto years, on its journey towards a successful advanced
\nliberal democracy. This requires the establishment of the rule of
\nlaw, administered by honest judges and, most crucially, a state
\nin which the military finally accepts to work under civilian
\nleaders.<\/p>\n
There are three components to this new morality. Indonesia has
\nalready largely achieved the first component, namely providing a
\ngovernment elected by popular consent. The second component is
\nthat some of the state's prosperity must be used to pay the
\nmilitary adequately. In return the military must, over time,
\naccept either to bring all its off-budget finance on-budget, or
\nto return those sources to state control. Third, a symbiosis
\nneeds to be achieved between two cultures that are innate to the
\nstate: a commercial culture and a guardian culture.<\/p>\n
The commercial culture depends on the sanctity of contracts,
\nhonesty in business, innovation, openness towards foreigners and
\nthe assets that they can bring, and the acceptance of dissent.
\nConversely, those who uphold the guardian culture of the state
\nmust eschew the world of business and instead focus on issues of
\ndiscipline, honor and professionalism in protecting the state's
\ninstitutions and integrity.<\/p>\n
The second component of a secure liberal democracy is a fully
\nconstitutional system that entrenches individual freedoms and
\nestablishes representative parliaments. But while the relatively
\nfree-and-fair electoral process in Indonesia is a huge step
\nforward, it is worth noting that only the 128- member of the
\nRegional Representatives Council (DPD) was directly elected.<\/p>\n
Furthermore, the new parliamentary rules of "recall" give
\ninordinate power to political party bosses, who can replace
\nmembers of the House of Representatives (in their party) on a
\nwhim. This prevents legislators from voicing their own opinions,
\nfar less the concerns of their constituents.<\/p>\n
One further attribute of a constitutional democracy is that
\nthere should be constraints placed upon the power of the
\nexecutive through a system of checks and balances, together with
\noversight and the monitoring of legislature. Only through such a
\nsystem can the rule of law be ensured and abuses avoided.<\/p>\n
Furthermore, for democracy to remain secure, and to protect
\nthe sanctity of contracts and private property, there must be
\nlimits on the extent of inequality in society. Failing this, the
\nspecter of populism arises, whereby poor majorities are tempted
\nto seize wealth from rich minorities.<\/p>\n
Therefore, governments must be sincere in addressing the
\nconcerns of the majority, while also explaining the realities.
\nThe third component of a beneficent state is allowing regulatory
\ncompetition, something that many in the Indonesian elite have a
\nstrong aversion to. Regulatory competition is just as important
\nin allowing the market to function optimally in searching out
\nopportunities, measuring risk and creating wealth.<\/p>\n
Susilo has been elected by a truly democratic process. This is
\na crucial first step, but only that. Far harder hurdles will
\nfollow in seizing the moment and maintaining the momentum by
\npushing for the implementation of a fuller expression of liberal
\ndemocracy in Indonesia.<\/p>\n
The author is freelance writer on Indonesian politics.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/hardest-part-of-democracy-creating-beneficent-state-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }