Tuesday, May 19, 2009

Matthias Chang's Gravy Train analogy...

So the much quoted 'gravy train' is not a myth, but a fact, though not described as such. Matthias's analogy gives a clear idea to laymen like myself, in understanding our national politics and economy... especially the reasons why politicians behave the way they do.

Prime Ministers can make or break a person's career in politics as well as in business. That's how billionaires are created and even crumbs can be in terms of millions that ordinary folks can only dream of. Whether Pakatan, if given a chance, can rule without being sucked into the same corrupt manner remains to be seen.

What struck me most was the admission, though he is not one of the BN politicians, just a former advisor to Tun Dr. Mahathir, that the comparatively small amounts (in finance) and small number of states in control (initially one state, increased to five since March 2008, including one now in suspension pending court decisions) within a much shorter period ruled by Pakatan, could threaten BN's hold at federal level which span over more than 50 years! On the face of it, this shows Pakatan should be able to rule more efficiently!

Malaysian Economy In Gridlock - Have You Wondered Why After The RM75 Billion Ringgit Stimulus, The Gravy Train Is Pulling At 5 MPH? - By Matthias Chang (18/5/09) (excerpts):

Beginning of last week, the New Straits Times reported that the President of the Federation of Malaysian Manufacturers said that exports have picked up and that Malaysian businessmen may have overestimated the severity of the impact of the financial crisis on the Malaysian economy.

However, on the very same day, the same newspaper quoted the Governor of Bank Negara, the Malaysian Central Bank, that she had underestimated the severity of the crisis and that Malaysian exports contracted in the first quarter of 2009 by 16 per cent.

Since March 2008, the gravy train could not stop at five stations because they have been taken over by new station masters who have different ideas as to how the cargo would be distributed. This is the cause of the gridlock

When the Barisan Nasional was in control of both the Federal and state governments, the Menteri Besars (i.e. Chief Minister of each state and by analogy the “station masters”) could be counted upon to implement policies in accordance with the directions of the Federal Government and to ensure that everyone had a fair share of the economic cake, provided they are members and supporters of the Barisan Nasional. Securing two-thirds of the parliamentary seats is indicative that the majority of the people supported the Barisan Nasional and the electorate was duly given its share of the economic cake.


This state of affairs lasted over fifty years.

In the result the Barisan Nasional Federal government is no longer willing to share the economic cake with the opposition controlled state governments as it would mean giving the opposition governments the financial means to mount a more serious challenge in the next General Elections.

Fancy yourself in Najib’s position. Are you willing to share the RM75 billion with the likes of Anwar Ibrahim of the Keadilan Party, Lim Kit Siang and Lim Guan Eng of the Democratic Action Party, and Hadi Awang of the Islamic Party (PAS), knowing that any allocations would merely enhance their political war chest

Hence, the gridlock that has stalled the country’s efforts to overcome the effects of the global financial tsunami!

And everyday, the opposition is getting stronger as they have the keys to the state vaults, notwithstanding the loot is much smaller than the Federal vaults.

With the resources of one state government – the state of Kelantan and the stupid policies of the Badawi regime, the Opposition was able to topple the Barisan Nasional and secured an additional four states. Their political war chest has now multiplied by five times. And any attempt by the Barisan Nasional Federal government to by-pass the state machinery in the allocation of funds would be very difficult.


The gravy train just cannot stop at the Selangor, Perak, Penang, Kedah and Kelantan train stations.

The struggle for control of the state of Perak must be viewed in this context.


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