There is little doubt that the Pakatan Rakyat coalition is in trouble. In comparative terms, the BN has a more solid foundation. It has a decent track record of 57 years, has maintained peace in the country, and has brought significant economic and social development. In short, it has governed the country quite well and should expect continuous support from the rakyat.

But the facts on the ground do not support this scenario. Even though PKR is in crisis in Selangor, there is strong evidence that if a snap election were called, BN is not likely to win. This seems to be a paradox, given the BN track record of relative success. What would explain this paradox? What should the political strategists in BN be looking at? In the last election, BN lost the popular vote to the Pakatan coalition.

In my view, the paradox is the result of BN’s very success. Major changes have occurred in the country in the last 57 years. People are better off, they are better educated, they are better informed, they know their rights and they now can compare with the rest of the world.

The environment has changed, but BN has not. BN is still operating within the old mould. What brought BN success in the past is not working now. The hallmark of any strategy is the ability to adapt to the changing environment and find new solutions to new problems. But BN still dishes out old wine in new bottle. To understand the paradox, BN must realise that its old success formula is no longer relevant and cannot work.

What are the new challenges that BN must address if it wants to continue to govern?

Economic development is not enough

While it is important for any government to grow the economy, create jobs, increase income, and improve the quality of life, this alone is not sufficient. Initially this may work to keep people happy and support the government in power, but as economic development progresses and people get above the poverty line, they want more.

They make new demands on the government - greater personal freedom, more transparency and accountability in government policies and decision making, greater access to education, equity in distribution of national wealth, justice in enforcing national laws and the constitution, and respect for diversity in religion, language and culture.

These are the aspirations of people in countries that are in transition to becoming fully developed. You cannot placate them by giving them more  bread.

The BN government, if it wants to remain in power, must recognise these new and emerging aspirations of the people. Any attempt to ignore them or suppress them will be to the detriment of  BN. Presently, BN seems to be unable to deal with these new aspirations and unable to break out of its old mindset of command, control and suppression. Subsidies and giveaways like BRIM will no longer work in the new environment.

Managing a plural society

Perhaps the greatest challenge facing the BN government is how to manage a plural society. It will break or make it on this alone. How well the BN government can manage the religious, cultural and language diversity in the population will determine its future success. Its capacity to rein in the forces of extremism and strengthen the forces of moderation and collectivity is the paramount challenge for BN.

At the moment, this appears to be the Archilles’ heel of the BN government.

The divisive forces are growing and there is much discontent among the races and ethnic groups in the country. Sabah and Sarawak present unique problems in this context. The BN government needs to find answers to these problems quickly, lest they become insurmountable.

Some people think  the solution is for minority groups to assimilate themselves into the majority, as it has happened in Thailand, Indonesia and the Philippines. But this is not likely to work in Malaysia for historical and other reasons. In any event, diversity is a unique asset of Malaysia. It only becomes a liability when we don’t know how to manage it and exploit its potential.

The BN government has to decide how it wants to deal with diversity - as an asset or liability. If it thinks diversity is an asset, then it has to fully commit itself to it and manifest it in all its policies, institutions, structures and decisions. If it thinks diversity is a liability, the BN government can  expect to have some serious setbacks in the future.

All it needs to do is look at what is happening in many countries around the world that are unable to manage pluralism.

Leading democratic reforms

Constitutionally, Malaysia is a democratic country, but the practice of democracy in the country falls far short of the expectations of the rakyat, especially the better educated and informed who live in the urban areas. The rural Malay heartland on which the BN government has relied heavily all these years is dwindling in size with urban migration.

The urban Malay is a different Malay, with different values, needs and expectations. He is better informed and better educated. He wants a government that is more open, accountable and democratic. The BN government labels these Malays as “ungrateful” when they support the opposition. This is being shortsighted. BN should be asking why the support from the urban, educated Malays is eroding and why some of them are even joining DAP.

Despite its many weaknesses, democracy, as a form of government, is spreading globally. Even in communist and totalitarian regimes, the demand for more democracy is growing. Democracy does not mean free for all. It is the delicate balancing of control and freedom. At present, the balance is clearly tilting on the side of control. BN seems to fear democracy.

The challenge for BN is to democratise its administration and still maintain order in society. The present policy of suppressing dissent and individual freedom and weakening institutions that can check and balance the powers of the government will only frustrate the voter and reduce support for BN. This is especially so in a plural society like ours with clearly defined racial, religious and cultural identities.

There is need to strengthen the impartiality and professionalism of institutions that are crucial for decmocracy, such as the judiciary, the police, the armed forces, the mass media, schools and universities, and the government bureaucracy. Democracy is more than just holding elections and majority rule.

It is about justice, equality, freedom and accountability of the government in power. In the long run, no government that ignores this or suppresses the clamour for more freedom can hope to win the support of the voter. This is a challenge that the BN government should not take lightly if it wants to remain in power.

Good governance

Malaysia is lucky because it has many natural resources, including oil. But we cannot really say we have managed these resources well, in a cost-effective way. The government is still heavily dependent on oil money from Petronas. There are just too many leakages.

Corruption is rampant and embedded in the government machinery. All one needs is read the reports of the Auditor-General to understand the magnitude of the problem. There are too many subsidies and bailouts. One may call the proposed injection of RM6.0 billion into MAS “investment” rather than “bailout” but it is symptomatic of how the taxpayers’ money is being used.

Economies need to be managed prudently, and for the long-term benefit of the people. No country has unlimited resources. Sustainable development of national resources is of crucial importance. Here the report card of BN is wanting. It can expect more scrutiny of finances and financial management from the people in the future. This is clearly an area of concern for BN if it wants to retain the support of the voters.

Part of the reason for the high cost of government is the New Economic Policy (NEP) and the way it has been implemented. The cost of NEP has been high. There is clearly a case for affirmative action to uplift socially and economically disadvantaged groups, but these programs need to be carefully monitored to ensure that only the intended groups benefit.

At present, there are just too many rent-seekers who are benefitting from affirmative action and adding to the cost of government. The BN government has to find a solution to this problem, especially because there is a growing demand to broaden the defination of affirmative action.

The danger is that affirmative action can feed on itself and become all-consuming, to the detriment of the country. One can already see this in the arguments against meritocracy. These are symptoms of serious problems lurking underneath. The BN government has to sort out the balance between affirmative action and bumiputra rights on one hand and meritocracy and equity for all on the other hand.

The economic and political future of the country depends on how well the government deals with these two opposing forces, for they will affect political and social stability, investments (both domestic and foreign), public sector productivity, and national competitiveness.

The BN government has 57 years of experience in governing. If it can effectively deal with the four issues raised above, it may well have the opportunity to continue to enjoy the support of the rakyat. Is the BN up to the task?