For the next few articles, beginning with this one, I want to see if I can write a series of fictional short stories that illustrate different views of economic development. This is Part I.
All in Economic Growth
For the next few articles, beginning with this one, I want to see if I can write a series of fictional short stories that illustrate different views of economic development. This is Part I.
Does it really matter if Malaysia — or any developing country — hits some arbitrary threshold of “high-income”? Or is it more important that we maintain steady, sustainable economic growth and economic development?
It is just that, for a middle power such as Malaysia, we may get far more bang for our buck by focusing on how well we diffuse technology broadly, as opposed to how well we invent the next big thing
But the point of the devolution of power is to ultimately build a more extremophile political economy that can then serve to ensure a more resilient Malaysia amid greater volatility globally
Tthe countries that can address the political economy of business in Southeast Asia — historically a family affair — will be best placed to capitalise on the investment story of Southeast Asia
But the broader point is that we need more Malaysian companies whose moat goes beyond “cost advantage”
in reality, Malaysia’s main problem is not so much that costs are getting higher — this is true everywhere. Our main problem is that incomes are not rising as quickly and this is where the bulk of our attention should be
As such, as the government prepares for the final round of rationalising RON95 subsidies, it would do well to make “good enough” policy decisions — which is how life and evolution work anyway — rather than technically perfect policy decisions
We must understand that trying new things means that some will fail, and that what is important is that we must fail in a way that allows us to move forward.
So, as we aspire to be “innovative” or “creative”, we must learn to be better at evaluating plausible useful counterfactuals. Playing too safe doesn’t really get us anywhere beyond what may be in textbooks. And being too unanchored just creates arguments as useful as those in YouTube comments.
It isn’t just our national finances that can ill-afford such populist measures, it is our entire development path. Can we come together to better understand our elite social terrain, and make moves towards a more sustainable future?
As such, while I had to watch on in semi-disappointment as The Dark Knight Rises failed to stick its landing, we are not just passive observers watching a movie unfold. The economic vision the prime minister has laid out is a strong start, but it needs to stick its landing.