Malaysian Maverick: Mahathir Mohamad in Turbulent Times by Barry Wain (fantasy novels to read .TXT) 📕

that a RM10 billion "land bridge", comprising a road, railway and a gas pipeline, between Malaysia and Thailand would go ahead. Anwar's measures, announced on 5 December, included more curbs on government spending and mega-projects, specifically reversing Dr. Mahathir's stand on the land bridge.[31]

Soon after, Dr. Mahathir took steps to dilute Anwar's voice in economic policy formulation. He created a National Economic Action Council to oversee the country's recovery and brought back Daim Zainuddin, the former finance minister and his most trusted lieutenant, to head it with the title of executive director. Dr. Mahathir became chairman and Anwar deputy chairman. The prime minister made it clear that Daim would exercise full power to carry out the council's directives.

Facing rare criticism in the local media over his controversial response to the worsening economic conditions, Dr. Mahathir sought to consolidate his leadership with a strong resort to nationalism. In addition to suggesting a Jewish conspiracy linked to American investor George Soros to block the progress of Muslims, he repeatedly warned that Malaysia's independence was threatened and appealed for unity. If Malaysia were forced to follow Thailand and Indonesia and go to the International Monetary Fund (IMF) for help, he said, the government would be compelled to increase taxes on an already impoverished people, charge higher lending rates and close most of the banks and finance companies. And foreign capitalists would be free to enter the Malaysian market and scoop up bargains, amounting to re-colonization of the country, he said.

After their breach, Dr. Mahathir blamed Anwar, aided by Bank Negara, the central bank, for having made "a bad situation worse" by slavishly following standard IMF prescriptions and adopting tight monetary and fiscal policies. Dr. Mahathir said they implemented a "virtual IMF without the IMF loans", pushing already suffering banks and businesses into "dire distress".[32] But as prime minister, and a particularly powerful one, Dr. Mahathir always had the final say in policy making and no course could have been pursued without his acquiescence at least. In reality, Malaysia's economic policies were worked out in consultation with the IMF until about the middle of 1998.[33] Internal discussions and disagreements, reflecting a wider international debate, resulted in austerity being gradually abandoned. Even the IMF adopted a more flexible stance. Along with others, Anwar modified his views, describing interest rates at the end of June as "prohibitively high".[34] A 200-page recovery plan, prepared by the National Economic Action Council and released in July, reflected the move towards looser monetary and fiscal policies, "but within a framework that economic commentators acknowledged as prudent".[35]

If there was one area in which Anwar sought to distinguish himself from Dr. Mahathir, it was over the meaning of the Asian economic crisis and what it portended for regional societies. Where Dr. Mahathir saw it purely as tragedy, it represented opportunity as well for Anwar, a chance to promote the idea that the old order should give way to a new and better one — code for fresh leadership. In an address to the Council on Foreign Relations in New York, Anwar described the contagion sweeping through East Asia as "creative destruction".[36] He said, "The pressure has been building up in recent months in the region itself and we are aware that unless we reform the system from within, changes will be imposed from without." While Dr. Mahathir initially accepted the logic of domestic reforms and an end to crony capitalism, his attitude changed after Indonesian President Suharto was driven from office on 21 May 1998 amid economic and political chaos. With Anwar and his supporters adopting the slogan of the Indonesian Reformasi movement, opposing korupsi, kronyisma and nepotisma — corruption, cronyism and nepotism — Dr. Mahathir had no doubt they were out to topple him.

As the June 1998 UMNO General Assembly loomed, Dr. Mahathir again took steps to restrict the possibility of being challenged, though party leadership elections were not due until 1999. He blocked moves for change by getting UMNO to limit contests for heads of divisions, each of which sent delegates to the assembly. Contests were prohibited where a Supreme Council member was a divisional head, while Supreme Council members who were not divisional heads were prevented from seeking the post. As a result, there were only 24 new faces among the 165 divisional chiefs, who were key operatives in the assembly.[37] The status quo was a positive outcome for Dr. Mahathir, a number of whose supporters otherwise would have had to defend their positions against Anwar's highly-organized machinery.

Additional measures were proposed by Dr. Mahathir's followers to protect his leadership in the form of resolutions to be considered at the assembly on 19-21 June, one a re-run of the "no contest" for president and deputy of three years earlier. If it were carried again this time, Dr. Mahathir would be insulated until 2002. But as the balance of power in the party shifted to Anwar, with public support for a change after 17 years, pressure built on Dr. Mahathir to allow competition. After Zahid Hamidi, the UMNO Youth chief and a prominent Anwar ally, decried the "no contest" idea as inimical to democracy, Anwar welcomed Zahid's willingness to face challenges in the 1999 elections to preserve "the spirit of the constitution as well as the democracy and the healthy culture in the party".[38] Their coordinated comments fuelled renewed speculation that Anwar would challenge Dr. Mahathir the following year.

Dr. Mahathir, however, was convinced that Anwar was intent on unseating him immediately. Less than two weeks before the 1998 assembly, Anwar told an UMNO meeting in Johore that without reform Malaysia faced the same fate as Indonesia. Zahid and other followers joined in, picking up the Indonesian battle cry against corruption, cronyism and nepotism. Anwar's campaign was intended as a "message" for Dr. Mahathir, to get him to "understand the undercurrents in the country...we should either make adjustments now or let a smooth transition take place eventually".[39] True, Dr. Mahathir had said in 1995 that he would not stay on if UMNO