Climbing the ladder to democracy, economic strength

Climbing the ladder to democracy, economic strength

By Patrick Schwarz

SEMARANG (JP): Under a dictatorship, ethnically and
religiously diverse people left each other alone because they had
been forced to do so. In a democracy, they have to learn to be
tolerant on their own. Democracy is indeed probably the most
disciplined, and hence the most difficult, form of governance. It
is a fact that the more democratic a nation is, the more
disciplined and self-restrained are its citizens and its public
servants.

Democracy is not enough. What is required is liberal
democracy. Holding elections and putting someone in power whose
major task is to pacify bickering splinter groups that have
sprung to life with the newly-found liberties is not enough.
People must be enabled to participate in democratic processes at
every step of the way, protected by the rule of law that assures
their individual rights.

Corrupt, collusive and nepotistic practices must be weeded out
with a vengeance. The nation's top legal body has to guarantee
that, before the law, every citizen is indeed equal. It is
alright for this legal body to try and prove that it means
business by prosecuting past abusers to deter potential new
corruptors, but its top priority must continue to be the
assurance of equality before the law for each and every citizen,
regardless of rank, status, financial means, ethnic background or
religious affiliation.

Looking at the workings of democracies elsewhere, one can find
three truisms. First, countries that are most successful
economically are those with the most political freedom. Second,
countries that are economically free are also politically free.
And, finally, countries whose economic freedom is limited also
have limited political freedom.

Let's compare the gross national product per capita of 25
randomly selected countries, going from the top (the most
liberally democratic) towards the middle (struggling or
relatively new democracies) to the bottom (countries and
economies that are not free):

GNP per capita in US$: Switzerland 37,748.00, Japan
34,715.00, USA 33,799.00, Germany 25,488.00, Britain 24,770.00,
France 24,018.00, Hong Kong 23,597.00, Singapore 22,710.00,
Italy 20,272.00, Canada 20,242.00, Australia 20,142.00, Taiwan
13,248.00, Brazil 8,418.00, Mexico 7,930.00, Malaysia 3,248.00,
South Africa 2,979.00, Thailand 1,949.00, Philippines 1,046.00,
China 783.00, Indonesia 617.00, Pakistan 492.00, India 452.00,
Vietnam 370.00, Nigeria 310.00, Afghanistan 150.00

True, statistics are something relative. Economists and
political observers alike would say: "Ever heard of economies of
scale? What about earning ratio and purchasing strength? Isn't it
much easier to make a dollar in a rich country? But doesn't one
dollar buy much less in Washington and Saugatuck than it does in
Jakarta and Gilimanuk?" Correct.

If one adjusts the GNP dollar numbers to their relative buying
power, one does get considerably different figures. But the rank
remains the same. Other arguments would go like: "Yes, but isn't
Switzerland so rich because it holds most of the world's money in
its bank vaults, including that of most of the world's dictators?
Isn't Japan's government in the firm hands of a secret-society-
like old man's club? Are Singaporeans really free? Hasn't Taiwan
seen most of its phenomenal economical growth under an oppressive
nationalistic regimen?"

The answers to such arguments exist, but that would go beyond
the scope of this article. Instead, let's do a quick-step through
this GNP/freedom statistic from the country at the top of the
list with the highest GNP per capita, to one in the middle with
an average GNP, to the one at the bottom with the lowest GNP of
all.

Observers who are familiar with the political systems in the
countries listed will agree that the case-in-point remains:
Switzerland is probably not only the world's richest, but also
its most liberal and civil society. Taiwan is putting up a real
fight for its relatively newfound liberties. Afghanistan finds
itself on the express lane back to the stone age, compliments of
religiously fanatic zealots.

But now, what about India? Isn't India the world's largest
democracy? Yet it ranks almost at the bottom of the GNP/freedom
statistic. Does this mean India has failed as a democracy? It has
not. Here is why.

India gained independence from the British in 1940. It has
been a democracy ever since. Its relatively young history as a
democracy shows an enormous contradiction: political triumph
versus economical disaster. Democracy in India prevails until
today, despite the fact that economic development never took off.
The reason may be found in socialism, which India had written
into its constitution.

We know from past experiences in the former Soviet Union and
eastern Europe that socialism is a fertile breeding ground for
corruption and a hindrance to economic development. India's
resources for basic education were wasted through Soviet-style
economic mismanagement and were not available to the majority of
the country's large population. Illiterate people are unable to
participate in democratic processes.

Low literacy levels have been the reason for India's failure
to develop into a liberal democracy. On the occasion of India's
50th anniversary, journalist Shekar Gupta wrote:

"If the choice of socialism is to be mourned, the choice of
democracy should be celebrated. Contrary to what India's socio-
economic indicators show, in fact, democracy has been very good
for India. Most of all, it has been the fundamental reason the
country has held together as a reasonably strong union despite
decades of internal discord, insurgencies and divisions of caste,
religion, language and ethnicity.

"A secular, federal constitution, however imperfect, has been
essential in giving this ethno-linguistic salad bowl of 16
official languages, a stake in a common identity. This
explanation is not one that those coming from ethnically
homogeneous societies easily understand."

Despite dismal economic circumstances, India today has strong
fundamentals. It has earnestly begun economic liberalization. A
legal system is in place that protects foreign investors and a
political system exists that is able to cope with social and
economic changes.

Foreign investors are starting to react. Before long we will
see India climb up the GNP/freedom statistics ladder.

Similarly, Indonesia gained independence from Dutch rulers in
1945.

Historical fate saw it fall under authoritarian rule.
Although, at least initially, it was not regarded as such and
disguised in terms like "guided democracy", it was authoritarian
just the same, and continued for the remainder of the century.
Indonesia has only just become a democracy.

Not yet liberal, but there's no socialism either. And, to give
credit where credit's due, under Soeharto Indonesia fared better
in educating its people. Demographically, ethnically and
multiculturally, India and Indonesia have many similarities.
Indonesia -- without implying that it should copy India --
nevertheless could look at the achievements of India's democracy
in the last half-century, while at the same time try to avoid
India's pitfalls.

So where does all this relativity leave today's Indonesia and
its current sorry state of affairs? The truth is, things are not
all that bad. Although there is no justification for the
Indonesian people's current sufferings, these are the pains of
building a free nation. The basic fundamentals are in place:
Indonesia is a democracy. Now it has to learn how to deal with
this democracy. It may look at and learn from others that have
already gone down the same path, while attempting the all-
important next step of becoming a liberal democracy.

It may not be much consolation to suffering Indonesians, but
something that one has to bear in mind when looking at long-
established world democracies is that it took, for instance, the
United States and Switzerland over 200 years (about eight
generations!) and many, many trials and errors, including wars
(the American Civil War, primarily about race; Sonderbund War,
about religion), to develop democracies that eventually made
their citizens the world's top earners.

Once Indonesia finds its path toward a liberal democracy we
will see it climb up the GNP/freedom statistic scale a lot faster
than others.

The writer is managing director of ANP Corporation, Semarang.