Fuel Hike: Humane Alternatives between Politics & Economics
Almost every serious “intellectual” or “economist” I know bemoans fuel subsidies - the gist being it simply doesn’t make economic sense to subsidise fuel.
Having heard the arguments, I can lend some sympathy to this view; efficiency, after all, has always been something I’ve found sexy.
I did a brief survey of what’s been written while I was away on the topic (some entries of note: Hafiz, John, Tirath, Tony), and I hope to contribute a little with regards to bridging political and economic approaches to this problem. Allow me to stress that this is a personal (read: not party, etc) view.
Once again, unqualified as I am, I find it hard to argue against such thoroughly intelligent people who insist that long term economic prosperity is better guaranteed by eventually abolishing all subsidies. Add to that environmental arguments and such, and we have a case that is more than compelling.
All that said, I think this is a good time to explore the ‘humane’ side of humane economics - ridiculous though the term may be to some.
Although much of the economic reasonings against subsidies are perfectly sound, I think it’s important to remember that we are dealing with actual people and vividly real and debilitating financial woes here.
Beyond the economic theory, there are real Malaysians who are hit hard - hard in a way many of us fortunately enough will probably never truly understand - by this sudden and drastic fuel hike.
For some Malaysians, the hike means the difference between eating at Secret Recipie or the mamak.
But for others, it could be the difference between the mamak and rice with boiled eggs; the difference between walking a kilometer to school versus taking the bus, or of going to school at all versus helping with the family business.
One can continue to imagine more of such sad litany, but the simple truth is that Malaysians out there still live in poverty. We may be prosperous enough as a whole not to see that much of it in our sanitised, everyday lives, but they are out there - take a walk away from your regular route, and I think you’ll see it.
As we weigh the options before us, I feel it’s important to be aware of the very real suffering that innumerable Malaysians will have to endure as reprecussions of our policies.
So, if economic logic with a clear and singular voice demands that we one day eliminate fuel subsidies, then so be it - let’s move towards that direction.
I will not be easily persuaded however, that the best steps in said direction to take at all resemble what the Umno/BN administration has just done.
As of yet, I have not yet heard arguments disputing the fact that rising oil prices mean greater profits for Malaysia, a net exporter of oil (if there are any though, please feel free to enlighten me).
I personally hate all things limited, and love all things renewable. One day, as sure as the day is long, we will run out of oil. For now though, as I understand it, we’re reaping it in and enjoying unprecedented profits.
While it lasts, perhaps we can ease Malaysia off oil subsidies at a gradual pace, stretched out over time - set amounts over regular intervals.
While it lasts, perhaps we can stop being half hearted about public transport (anyone notice any ‘improvements’ since the last fuel hike?), stop subsidising loss making car industries, and most importantly, kick out a government that has probably squandered more than half of the true financial prosperity Malaysia is meant to enjoy via endemic wastage and brutally vampiric corruption.
While it lasts, can we not subsidise forays into solar, wind or other renewable energies and lead the region in industries that may be difficult now, but are unquestionably (in my mind anyway) the way of the future? It’d sure as hell beat subsidising Independent Power Producers (IPPs) tied to the Francis Yeoh’s and other cronies.
In summary, I do respect the well considered views of those who argue so passionately against oil subsidies; they make it sound inevitable, and I don’t have the wherewithall to object. I’m also perfectly fine with all the other imaginative ways many have come up with to ease the financial burden of the poor.
Nonetheless, surely there must be some middle ground with regard to petrol prices; some way we can achieve economic efficiency without wrecking the unthinkable damage to so many low income earners that this sudden fuel hike has engendered.
If so, let’s not be too harsh against those calling for a lowering of the price of petrol (at least for now) - we can support them while still sketching out a sustainable master plan.
ps- Here’s a conspiracy theory as to why fuel prices were raised here and now: so that Umno can fund its campaigns in the upcoming Umno elections! :P :)
Tags-Economy
