FWIW, I spent two days in Kuala Lumpur (KL) last month.  I got to speak to an 
Indian Malay academic, Cambridge trained, well estblished.  He came from an 
impoverished family, whose goal in life was to become a policeman.  He could 
not because of his eyesight so was encouraged to continue studying.  I also met 
one his students, who represents the Indian community politically.  He was 
linked to Anwar Ibrahim in UMNO (in Malaysia you cannot do damn thing if you 
don't work through UMNO).  Acoording to him there were good prospects under 
Anwar for resolving these ethnic divisions but alas Mahathir (who was 
increasingly becoming insecure) trumped up charges and eliminated Ibrahim.  I 
also talked to an Indian taxi driver (a long one hour ride from the airport).  
I should mention taxi drivers are always a great source of information.  I 
attended a conference (of the Univ of Malay), where 99.9% of
the speakers were Malays.  I did get a sense of tension of such divisions as 
several speakers brought it up.  The conference was on governance issues.

The article is pretty much on target.  Malaysia has become ethnically very 
divided because of discriminatory policies in favor of Malays.  The curious 
thing is that Malays are a massive majority.  In most countries positive 
discrimination is always for the minorities.  But since the Chinese controlled 
the bulk of the Malay businesses such policies were aimed at redistributing the 
wealth.  So Chinese did lose out and so did Indians.  But Indians were not in 
business, they were plantation workers in the countryside.  Their lot continues 
to suffer today.  Today the Malays in small and petty businesses, students, 
borrowers, and some on the religious fundamentalist fringes (for different 
reasons) feel threatended by the prospect of overturning such discrimninatory 
policies.  Many with the support of the state (and the UMNO for party 
followers) have become emboldened.  Consequently such talks about
keeping the Chinese and Indians under control have become louder inspite of the 
fact that there is a sizeable Indian expatriate professional group in KL, along 
with other international professional class.  But yes, social stability in the 
1960s bought with discriminatory policies did work.  Malaysia is quite well off 
from what it was.  And if you go by outcomes, more poor Malays have been lifted 
out of their malaise so it has been more democratic.  But the method has not 
been.  At another level, there is still quite a bit of social decay among the 
poorer Indians and Malays although there has been social mobility among Indians 
too.  So Malaysia might pay for all this down the road since what exactly is 
the Malay state is still being debated. This PM has said that Malaysia is a 
secular and an Islamic state!

Anthony
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Anthony P. D'Costa, Professor           Currently
Comparative International Development   Senior Visiting Research Fellow
University of Washington                Asia Research Institute
1900 Commerce Street                    National University of Singapore
Tacoma, WA 98402, USA                   469 A Tower Block
Phone: (253) 692-4462                   Bukit Timah Road #10-01
Fax :  (253) 692-5718                   Singapore 259770
http://tinyurl.com/yhjzrm               Ph: (65) 6516 8785
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On Mon, 24 Sep 2007, raghu wrote:

Date: Mon, 24 Sep 2007 21:48:39 -0700
From: raghu <[EMAIL PROTECTED]>
Reply-To: PEN-L list <[email protected]>
To: [email protected]
Subject: [PEN-L] Malaise in Malaysia?

Maybe Anthony'd like to comment on this?

http://www.economist.com/displayStory.cfm?story_id=8362605
---------------------------snip
As the country approaches its 50th birthday, racial and religious
tensions are jeopardising its economic and social success

UPROAR is still raging in Malaysia over inflammatory speeches at the
annual congress of the ruling United Malays National Organisation
(UMNO) in mid-November. One delegate talked of being ready to "bathe
in blood" to defend the race and religion of the Malay Muslim majority
against the ethnic Chinese and Indian minorities. The education
minister, no less, brandished a keris (traditional dagger), only to be
urged by another delegate to start using it. The affair has brought
into focus Malaysians' worries that, as their country nears its 50th
birthday next year, its remarkable economic and social success is at
risk from the increasingly separate lives its three main races are
living.

Last weekend these anxieties were voiced by the crown prince of Perak,
one of the country's constituent states. He recalled that in his
boyhood the races mixed far more freely; nowadays most children go to
single-race schools. The prince regretted that some Malay-majority
schools have made girls wear headscarves and even told pupils to avoid
non-Malays' homes. Malaysians' spirit of give-and-take, he lamented,
had been replaced by the idea that progress was a zero-sum game among
the races.

Apart from some deadly riots in 1969, the country has so far done
remarkably well in handling the awkward racial mix it inherited when
the Malaysian peninsula gained independence from Britain in 1957
(Britain's colonies on Borneo joined the union later). The Chinese,
now around a quarter of the population, arrived in colonial times to
work the country's tin mines. The Indians, now around one-tenth,
mainly came to work on plantations. Neither group intended to stay
forever but many did. The Malays' fears of being marginalised in their
own land grew as the Chinese came to dominate business and the Indians
the professions.

At independence, a "social contract" was struck in which the Indians
and Chinese got citizenship while the indigenous peoples received
privileged access to state jobs and education. After the 1969 riots, a
far-reaching positive-discrimination policy was introduced, with the
aim of increasing the indigenous groups' share of business ownership
from just 4% to 30%.

Supporters of this policy say it has kept the peace, enabling Malaysia
to achieve impressive economic growth. Opponents say it has widened
the divide between rich UMNO wheeler-dealers and their less fortunate
Malay brethren. UMNO itself, having led the country's development for
decades, has become perhaps its greatest handicap. The Malay
chauvinism and economic nationalism in its ranks are hobbling progress
towards reforming and privatising the big government-linked companies,
thereby discouraging both domestic and foreign private investment. The
fate of Proton, a carmaker (see article) is emblematic: the government
has dithered for months over whether to risk UMNO's ire by selling it
to a foreign buyer.

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