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SITUATED at the nexus of politics and economics, political economy is an intriguing topic of study. It promotes asking ‘why’ and ‘for whom’ inquiries. It invites critical study rather than accepting economic structures and practices in a passive manner.
The interplay between society, the government and the populace is influenced by political economy. Moreover, in contrast to economics, it outlines the ways in which public policy affects different organisations and takes social and political factors into account.
Owing to the tight interactions and effects between the domains of politics and economics, political economy has a substantial impact on both local and international markets. They are consequently viewed as equally important as they both support the government. This is demonstrated by the experiences of Sarawak and the optimism that has surfaced.
Mutually interactive
When seeing through the prism of political economy, astute observers and critics of development would concentrate on the interactions between the state, the people, society and markets, as well as how the state manages both.
The key words are mutually interactive as public policy in Sarawak requires the relevant departments and agencies, right down to the lowest level in the government hierarchy, to understand and put to practice through planned coordination the policy thrust and initiatives of the government.
They are expected to relate to the core of the government policy in question and be able to translate it in terms and ways that are palatable and implementable at the lower levels.
Due to the mutuality in their functional relationship and the requirement to adhere to accountability to a higher leadership about the success or completion of an integrated development effort, the implementing organisations do not function independently of one another on critical policy topics.
Shared objectives
Taking a path towards attaining desired prosperity, caring for people and ecosystems, empowering communities and identifying shared objectives, is a commendable way to conceptualise sustainable development.
Yes, Minister, Sarawak has embarked on this nuanced approach in an integrated manner.
To enable the spread of all these initiatives, institutional innovation across the public service in Sarawak is being coordinated. In pursuit of this, the Sarawak government has stepped up on increased activation of Local Agenda 21.
Local Agenda 21 is a voluntary community consultation process that aims to produce regional policies and initiatives that support sustainable development. It encompasses awareness-raising, capacity-building, community participation and the formation of partnerships.
This also pertains to the power of political leadership to drive real advances in eco-taxation, audits and indicators.
Yes, Minister. Politics and economics have a big influence on the actual world, much like political economy does. The impact of public policy on society and the individual is determined in part by political economy.
Politics and society are the main subjects of political economy, whereas social and political aspects are not included in economics.
One may need to examine the extent to which sustainable development narrative in Sarawak could be regarded as an energising force in its own right. Numerous institutional adjustments that are not explicitly supported by the sustainable development agenda are necessary to aid in the transition to sustainability.
However, there are certain characteristics of sustainable development that unquestionably bring about significant and ongoing institutional transformation.
Widespread political backing
The widespread political backing for the state government is one feature of the Sarawak sustainable development approach that makes it unique. Changes in political interest in sustainable development have little effect on the established structures and procedures of the state and local governments.
Environmental considerations have been substantially institutionalised in the contemporary political system.
This may be seen, for example, in the individual ministries’ planning and budgetary practices as well as in the steps made to encourage inter-ministerial cooperation on environmental policy matters.
Environmentally-friendly improvements in the business and industrial sector, as well as among non-governmental groups, have been added to this process.
The main ministries and agencies are interrelated and have a mutually reinforcing connection. Their comprehension of the development policy’s fundamental narrative, the ‘VIZ’ objectives, and the framework is evident, and they are aware that their actions must accentuate the coordinated central process to accelerate integrated development.
Yes, Minister. There is evidence that the perspectives of businesses, local governments and various commercial and industrial sectors are progressively shifting towards a sustainable transition.
In addition, businesses and non-governmental organisations are trying to raise awareness of sustainable development.
The primary outcomes of the ‘Rio process or dynamic’ have often been project-specific, occasionally drawing attention to integration-related problems, but seldom providing helpful policy linkages or social mobilisation tactics.
It is possible that studies and assessments will be needed to provide light on the institutional adjustment process as a whole and identify specific problems and solutions that fall within the touchstone, obstacle or contingency categories of Sarawak’s sustainable transition.
Institutional change
This transition has to be assisted by a myriad of institutional changes that are not in themselves directly promoted by the sustainable development agenda. Nevertheless, there are distinctive features of sustainable development that clearly create important and continuing institutional change.
In light of pertinent European Union (EU) initiatives and the decisions made at the 1992 Rio Conference, Sarawak’s commitment to developing and implementing sustainable development strategies is assessed based on the programme’s predetermined standards, which include increasing public awareness, integrating environmental objectives into sectoral planning, coordinating policies, setting accountability goals and using greenhouse accounting.
Yes, indeed, Minister, Sarawak takes a welcoming and inclusive approach to this.
Research and assessment may be necessary to provide light on the institutional adjustment process as a whole and identify specific answers and problems that fall into the categories of touchstones, obstacles or contingencies related to Sarawak’s transition to sustainability.
Political economy review provides us with the opportunity to investigate how political and economic processes interact in any given situation in Sarawak. It focuses on the interests, ideas, values and incentives driving the behaviour of different groups and individuals, the distribution of power and wealth between them, and how these relationships are created, sustained and transformed over time.
These relationships are crucial in explaining how politics work and how economic wealth is created and distributed. As such, they are crucial for understanding how developmental change might happen.
These days, experts in development concur that the political-economic environment has great bearing on development outcomes. Failure to consider it increases the chance of development initiatives not working.
It is standard development wisdom that politics, in addition to formal and informal institutions, are important. The Premier is aware of this and believes there is no justification for making any concessions or putting it on the backburner.
Wisdom and experience
Yes, Minister. With more than 40 years of experience as a seasoned politician, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has a thorough understanding of this and therefore, the wisdom to effectively navigate the challenging political environment in relation to the development agenda.
Complex development problems, such as access to education, or access to water, cannot be addressed by technical fixes. Such fixes will neither be effective nor sustainable if the relevant institutions are lacking and political and administrative processes are failing.
Thus, understanding institutional and political dynamics at work is perceived as an important key for effective development cooperation. This is shown in the way that integrated policies are planned and developed under the leadership of Abang Johari, with the administrative machinery including the guidelines for coordination and execution.
The way the government, society and citizens interact in a complex ecosystem is influenced by political economy and how the latter is structured and managed effectively.
How different organisations are impacted by public policy is also determined by political economy.
Thus, the complex interactions around public and private economic and political interests must be understood by development actors.
Economic and social development is about creating new potentials and changing the distribution of power and resources.
Understandably, political stakeholders aim to frame political and economic development in a way that serves their own interest, or the interests of their constituencies. Sustainable change will depend on who is in power, which interests are at stake, and how the rules of the power game are defined.
The Sarawak experience reveals that the political economy approach has an advantage in that it examines a wider range of realities more methodically than only formal structures, organisations and stakeholders.
By connecting them in a way that is focused on the overarching goal of programming – finding ways to make the political, social, and economic system evolve towards greater responsiveness, social justice, and legitimacy – it seeks to reveal the underlying political and economic driving forces.
Yes, Minister!
* Toman Mamora is ‘Tokoh Media Sarawak 2022’, recipient of Shell Journalism Gold Award (1996) and AZAM Best Writer Gold Award (1998). He remains true to his decades-long passion for critical writing as he seeks to gain insight into some untold stories of societal value.