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.