Friday, 6 July 2012

Applying People Power on Public Choice(1)


We are familiar with the seasonal bargain sales whenever we approach the day of cultural and religious festivities. Even before Hari Raya (the Muslim religious festivities after a month long of fasting), the public is flooded with all sorts of bargain sales. A popular clothing merchant has launched its pre-hari raya sales of fine textiles. Other merchants have also launched their own bargain sales.
These bargain sales however pale   in comparison with the bargain sales offered by the chief snake-oil peddler in Malaysia- the PM. By means of logrolling bargains, he dishes out economic morsels large enough to secure the votes from the public. Logrolling is a term used commonly in USA to refer to the granting of favors by re-election seeking politicians to selected groups in exchange for their support and votes.
Najib’s grant of an advance bribe of RM 15,000 to felda settlers is a logrolling act. Now Felda settlers realize they have been shortchanged. The 15k is a sweetener to lessen the anger at receiving 810 units of share amounting to around RM 600 gross value in profit. Settlers have been used and piggybacked by rent seekers to make a killing at the stock market.
Najib announces the grant of free tyres to cab drivers is another example of logrolling act aimed at getting votes from tax drivers.  The RM 500 assistance after 50 years amounting to RM10 a year of our existence is another sorry ass of a logroller. Why the necessity of giving the RM 500 in the first place unless your policies of ameliorating poverty has failed miserably.
Indeed if one observes carefully, this is how he thinks he solves people’s problems. Providing short term solutions to long term problems. Providing snake oil for short-lived relief rather that long term and longer-living solutions. So he does the entirely opposite to what the second PM of Malaysia resolved to do- by giving people fish instead of providing them the means to fish. So the short term handing out of the fish will allow recipients to eat once. That to Najib is his most effective way of resolving problems.
Public Choice Theory.
I have been receiving comments from one particular individual who has been writing on the subject of Public Choice Theory. I believe this person has done some extensive reading on the subject or he/she is a lecturer at a university teaching that subject.
The issue of Public Choice has also been studied by economists especially in their attempts to explain, how public choices are determined. I am sure readers can read on this subject freely at their own time. I don’t want therefore to impose my own lack of understanding on this subject on them.
Here, I am going to write on my interpretation of one aspect of public choice. Knowing that it’s too risky to allow decisions affecting our lives to be made by a single person or even a legislative body, we need to demand the setting up of institutions to compensate for the inherent weaknesses of the legislator. We must insist on the setting up of institutions and institutionalized rules and regulations and strict adherence to them to establish respect to law and order. We don’t have strict adherence to them now because the snake oil salesman keeps on moving the goalposts. Otherwise we are going to be manipulated by a maverick and a trickster such as the snake-oil salesman.
We need an institutionalized system even if Pakatan takes over to compensate, like I said, the inherent weaknesses and excesses of the legislator. Decisions are made by a committee or the entire legislative body is a myth really. Because decisions are made by individuals and when made by individuals, they reflect invariably their personal motivations and values. Najib’s motives for example are purely to seek re-election and to stay on as the worse half of the first couple.
Contrary to popular thinking, the decisions involving the lives of the public (education, business projects) are not determined by the people collectively. We only have the illusion that the legislators we elected before, give form and substance to what we want. The reality is, the choices that eventually affect the lives of the public are made by the select few because of their own self interests. Here is the upshot of the whole theory- when framing the choices that are made out as choices decided upon by the public; it’s done essentially by the lone or select few decision makers. The choices these people make have nothing to do with the wishes of the general public. They are done mostly to ensuring the longevity of the re-election seeker.
Furthermore, the choices made by the chief decision maker reflect his personal motivations. He is not entirely motivated by the pursuit of public welfare but more by the pursuit of his self-preservation.  He trades favors- by logrolling. Money in exchange for allegiance and support. 
Money to taxi drivers to get their support. The long term solution of giving direct taxi permits will only be implemented in 2 years’ time. By that time, the UMNO division heads and those proximate to corridors of power would have filled up their bellies. The small morsels will be handed to tax drivers. Why not now? In 2 years’ time, some of the taxi drivers may even be dead.

12 comments:

Anonymous,  6 July 2012 14:20  

The aim has always been to control and create dependency,instead of empowering the ordinary people to help themselves.

Anonymous,  6 July 2012 20:55  

A snake oil peddler can only make money when his customers are gullible and stupid.
That is why the Felda settlers are satisfied and jumping with joy because the snake oil gives them a temporary erection.

Anonymous,  6 July 2012 22:12  

Salam Dato,

I doa BN/UMNO akan dihumban kat longkang, PR takes over Putrajaya, and Dato is in the cabinet in charge of reviving the ekonomi Malaysia!

You have such clarity of mind, thoughts and actions.

I learn something from each and every of your article. You are such a great educator ......in the course of you revealing nothing but the truth.

I doa for your safety and that you stay vigilant and be protected from harm.

A faithful visitor to your blog

Suci Dalam Debu 6 July 2012 22:22  

Sir,

A++ for Najib for giving away wealth that he does not own.

F for Najib for failing to generate wealth.

Malaysia currently has a good-for-nothing PM.

bruno,  6 July 2012 23:48  

Dato,it is high time the people take responsibility of the people they elected into government.No more special privileges for the crooks,their cronies and their two sets of laws.No tolerating the Perkasa goons and the Umno youth gangsters aka the mat rempits.

It is time to put the public institutions back on the right track.No more of public officials sucking up to the asses and bolas of the politicians.If the public officials want to please their political masters,they should do it on their own time,and in the bedroom only.

Bribing the Felda settlers by the money stolen from them,is not going to help them this time.If the Felda settlers still vote for the people who have been riding on their piggyback to super riches,from the recent FGVH IPO while getting less than RM500 in return,then they deserved to get banged from their behind for free forever.

Five hundred ringgit to bribe the taxi drivers when Umnoputras can afford RM200,000 a pop with their mistresses.They must have think that the people are so much more stupidier than them.Fools only think that others are more foolish than them.

It is time for the people to come together.Stay united,kick out the Umnoputras and their running dogs then come back and settled your own differences.That includes Anwar's blue eyed boy,the never more than stupidiest Azmin.

tbh,  7 July 2012 12:04  

100% in agreement with your article.

101% support for your call "to demand the setting up of institutions to compensate for the inherent weaknesses of the legislator."

1000% support on "We need an institutionalized system even if Pakatan takes over to compensate, like I said, the inherent weaknesses and excesses of the legislator"

Get this movement started, I'll gladly join any NGO formed to pursue this cause.

bruno,  7 July 2012 12:28  

Dato,looking at how things are going,there is a possibility of the GE being held from August 15th-Oct 15th.Look at how the big boys and girls are playing with themselves,and 'shioking sendiri' themselves.

Soon the Fgvh will be trading around RM6.After the GE is called it will pop much higher and topped after the GE.Umno will not want to have the GE near or after the US presidential elections,because of the possibility of the markets tanking.

And instead of the opposition going after Umno/BN's hide,some are going after an MB's political secretary.These politicians are too chicken to fight with Umnoputras so they go trying to scare a lady out of her job.With such friends PR and PKR do not need Umno as enemies.

Anonymous,  7 July 2012 12:59  

bruno,

Didn't i say that the FVGH was the best thing that has ever happened for felda settlers.Even Pirates will lose the betting this coming friday by closing the blog if price go below IPO this 13 July.
Thank you for predicting price to go to even RM6-00.
I thought as much. See you buddy.

Anonymous,  7 July 2012 17:39  

bruno,
I will not be easy to oust umnoputras.Malaysia is not just about them, it is about all of Malaysians being united under a proven govt.You may wish the PR to govern but yhst will not materialise for now.You need credible leader to lead the PR.Good day.

Anonymous,  7 July 2012 19:35  

Suci dalam debu,

I havr to disagree.Najib is our PM.He works really hard for you and me.Not until he is votef out he is our PM.I will let the voters decide who they esnt as PM,Najib or Anuar ok.Cool it man.You got nowhere eith that hatred.

bruno,  7 July 2012 20:27  

Anon 7 July 2012 12:59

well,I would not really agree with you that FGVH was the best thing that has ever happened to the Felda settlers.But I would agree with you if you said that it was the best thing that ever happened to Umnoputras.

Just look at the meagre less than RM500 the settlers made,if they sold their shares on the first day.Considering that well connected people who has never shed a sweat working on the fields,made over tens and hundreds of thousands and some even millions.I guessed you have to figure it out if the listing was good for the settlers or Umnoputras and their cronies.

Just remember that the accumulation of the FGVH shares are done with public money.When they are finally sold for a profit/loss will the money go back to the people or the crooks pockets.And if it ended with a loss,it is the people who ended up losers.

Either way the crooks win.Maybe you are too young to remember Maminco or the forex ventures that Umnoputras took.That was a major contributing factor to the start of the cronies syndrome and the bleeding of MAS till today.Once the rot starts there is no stopping until the head gets chopped off.And FGVH is another add-on the long list of soon to be casualties.

Anonymous,  7 July 2012 22:57  

Pop's is clsng dwn.Nw wht is gng to hpn to qd & kg mn.Thy gt no mre plc to go nw.Bk to Sk's bg.The last lgh on thm.hehehe.

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