Political Change and Consolidation

Political Change and Consolidation

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Political Change and Consolidation Democracy s Rocky Road in Thailand, Indonesia, South Korea, and Malaysia Amy L. Freedman

POLITICAL CHANGE AND CONSOLIDATION Amy L. Freedman, 2006. Softcover reprint of the hardcover 1st edition 2006 978-1-4039-6857-9 All rights reserved. No part of this book may be used or reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles or reviews. First published in 2006 by PALGRAVE MACMILLAN 175 Fifth Avenue, New York, N.Y. 10010 and Houndmills, Basingstoke, Hampshire, England RG21 6XS Companies and representatives throughout the world. PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin s Press, LLC and of Palgrave Macmillan Ltd. Macmillan is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN 978-1-349-53076-2 DOI 10.1057/9780230601901 ISBN 978-0-230-60190-1 (ebook) Library of Congress Cataloging-in-Publication Data Freedman, Amy L. Political change and consolidation : democracy s rocky road in Thailand, Indonesia, South Korea, and Malaysia / by Amy L. Freedman. p. cm. Includes bibliographical references and index. 1. Democracy Southeast Asia. 2. Democracy Korea (South) I. Title. JQ750.A91F74 2006 320.959 dc22 2006043789 A catalogue record for this book is available from the British Library. Design by Newgen Imaging Systems (P) Ltd., Chennai, India. First edition: November 2006 10 9 8 7 6 5 4 3 2 1

This book is dedicated with love to Eric, Alyssa, and Cameron Kopczynski

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Contents List of Tables List of Acronyms Preface xi xiii xv Introduction 1 Theoretical Issues: Democracy 2 Transitions to Democracy 4 Economic Crises and Political Change 5 Consolidation of Democracy 10 Case Studies 12 Conclusion 25 1 Thailand: Successful or Incomplete Democracy? 29 Thai Political History 29 Principal Players in Thai Politics: The Military 33 Popular Protests and Civil Society 35 The 1997 Economic Crisis and the Ratification of the New Constitution 36 Explaining Political Change 42 Internal Factors: Political Infighting, the Role of the Military and the Civil Society 45 External Factors: Pressure from the IMF and Global Capital 46 Connection Between the Economic Crisis and Political Reform 47 Changes Under the 1997 Constitution 48 Status of Democracy Today? 49 Conclusion 58

viii Contents 2 South Korea: The Final Hurdle for Democracy 61 Explanation of Korean Politics 62 Democratization in South Korea 64 The Economic Crisis of 1997 and the Presidential Election of December 1997 65 Did the Elections of 1997 Signify Genuine Change or Further Democratization? 68 Explanation of Success or Failure of Reform Ambitions 70 Consolidation of Democracy? 71 Changes in Security Relations and in Relations with the United States 77 Chaebol Reform 79 Conclusion 80 3 Indonesia: Democratization but Hurdles Still Remain 83 Introduction 83 Background: Indonesian Politics Before 1997 84 Immediate Effects of the Economic Crisis 86 Reformasi 88 Further Changes 89 Elections of 2004 90 Other Lingering Problems 93 Analysis of Successful Reforms 95 The Difficulties in Consolidating Democracy 97 Connection Between the Economic Crisis and Political Reform 98 Conclusion 105 4 Malaysia: Defiance in the Face of Adversity 107 The Events of 1997 1999 108 The Anwar Debacle 109 The 1999 Elections 112 Explaining the Lack of Political Reforms 113 Malaysian Politics Since 1999 118 Prospects for Political Reform? 120 Role of Islam 122

Contents ix Abdullah: Reform-Minded Leader? 124 Other Obstacles to Change 125 Conclusion 126 Conclusion 129 Case Study Conclusions 130 Applicability of Case Studies to Theoretical Material 135 Final Thoughts 141 Notes 143 Bibliography 165 Index 177

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List of Tables 1.1 GNP growth in Thailand, 2000 2003 53 C.1 Real GDP growth in percentages from 1997 to 2005 140

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List of Acronyms ABRI ADIL AMIN ASEAN BA BIN BN CDA DAP DDC DI DJ DJP DMZ DPR EIU ELSAM FEER FPI GAM GDP/GNP GNP GOLKAR IGGI IPPS IMF ISA JI KCIA KKN KL KLSE KMM KPK MCA MDP MIC MMI MOF MP MPR MUI The Indonesian military under Suharto Pergerakan Keadilan Sosial (Social Justice Movement, Malaysia) Angkatan Mujahidin Islam Nusantara (Indonesia) Association of Southeast Asian Nations Barisan Alternatif (National alternative party coalition, Malaysia) The State Intelligence Agency (Indonesia) Barisan National (Malaysia s ruling party coalition) Constitutional Drafting Assembly (Thailand) Democratic Action Party (Malaysia) Democracy Development Committee (Thailand) Darul Islam Kim Dae Jung (commonly referred to as DJ) Democratic Justice Party (South Korea) demilitarized zone Dewan Perwakilan Rakyat (Lower house of Parliament, Indonesia) Economist Intelligence Unit Lembaga Studi dan Advokasi Masyarakat (The Institute for Policy Research and Advocacy, Indonesia) Far Eastern Economic Review Islamic Defenders Front (Indonesia) Free Aceh Movement (Indonesia) Gross Domestic Product/Gross National Product Grand National Party (South Korea) Joint Secretariat of Functional Groups (Indonesia) Inter-Governmental Group on Indonesia Institute for Public Policy Studies (Thailand) International Monetary Fund Internal Security Acts (Malaysia) Jemaah Islamiyah Korean Central Intelligence Agency Korupsi, Kronyisma, and Nepotisma (Corruption, Cronyism, and Nepotism, Malaysia) Kuala Lumpur Kuala Lumpur Stock Exchange Kumpulan Militan Malaysia Corruption Eradication Commission (Indonesia) Malaysian Chinese Association Millennium Democratic Party (South Korea) Malaysian Indian Congress Majelis Mujahidin Indonesia Ministry of Finance Member of Parliament Majelis Permusyawaratan Rakyat (Upper house of Parliament, Indonesia) Council of Ulema (Indonesia)

xiv List of Acronyms NATO NCCC NCNP NEP NGO NII NIP NKP NMDP NU OECD PAD PAN PAS PBB PD PDI PDI-P PERMANTAU PKB PKI PKS PNI PPP PRM RDP SBY TNI TRT TMB ULD UMNO URI North Atlantic Treaty Organization National Counter Corruption Commission (Thailand) National Congress for New Politics (South Korea) New Economic Policy (Malaysia) Nongovernmental Organization Negara Islam Indonesia National Integrity Plan (Malaysia) New Korea Party New Millennium Democracy Party (South Korea) Nahdlatul Ulama (Indonesia) Organization for Economic Cooperation and Development People s Alliance for Democracy (Thailand) National Mandate Party (Indonesia) Partai Islam se Malaysia Parti Bulan Bintang (Crescent Star Party, Indonesia) Democratic Party (Indonesia) Indonesian Democratic Party Indonesian Democratic Party in Struggle Malaysian Citizens Election Watch National Awakening Party (Indonesia) Communist Party of Indonesia Keadilan Sejahtera, Prosperous Justice Party (Indonesia) Indonesian Nationalist Party Unity Development Party (Indonesia) Parti Rakyat Malaysia Reunification Democratic Party (South Korea) Susilo Bambang Yudhoyono The Indonesian National Military (Tentara Nasional Indonesia) Thai Rak Thai (Thai Love Thai) Thai Military Bank United Liberal Democrats (South Korea) United Malays National Organization Open Our Party (South Korea)

Preface This project began with a summer research project on the connections between economic crisis and political change. With research assistance from Rachel Ellenport and later Stephen Cochi and Vanessa Vincent, I became familiar with the theoretical literature exploring the relationship between economic problems and political consequences. We then dug further into the details of the popular and political reactions throughout Asia to the crisis. The puzzle of why Malaysia s leader Prime Minster Mahathir was able to hold on to power seemed directly linked to his decision not to turn to the IMF for help. But, clearly, the IMF was not itself the agent of change. So, my research continued and I examined popular protests, elite politics, and relationships between leaders in power and opposition forces. As the book details, successful political reform is a result of a mixture of these factors. Of all the countries discussed in the book, Indonesia has clearly been transformed the most. Despite the continued challenges that the country faces, I remain amazed by all the positive changes that have happened there over the last seven years. In the aftermath of Suharto s authoritarian New Order, mostly free and fair elections have been held, the press is no longer muzzled, and a wide variety of civil society organizations articulate and advocate a range of interests. Ultimately, Indonesia, and to a lesser extent Thailand and South Korea, need to wrestle with problems of corruption and the balance of power among political institutions. These shortcomings are not unique to Asia or to new democracies, but they are important elements of the democratization process. It is vital in a democracy that people feel the political and economic systems are fair and transparent. Of course, democracy is not a fixed state, it is always changing and evolving. For Indonesia, South Korea, and Thailand democratization is a process without a predetermined end. Malaysian politics too is an open question. The groundwork is certainly there and if a reform-minded leader or a set of elites comes to

xvi Preface power in the future, I have no doubt but that Malaysian political reform will occur quite rapidly. The promise and possibility of a more fair political system and better economic conditions are what make Asia so interesting to study. I am in debt to a number of people for making this project possible. First, I want to thank Franklin & Marshall College for its generous support. Through the Hackman scholars program the college provided funding for research assistance during the summers, and the college generously granted me a research leave in order to write the manuscript. I appreciate my colleagues encouragement and suggestions on my work and for putting up with my absence during my junior research leave and a subsequent sabbatical. Thanks are due to my friends and contacts in Asia, as well as to conference panelists, discussants, and participants who pointed out shortcomings and made suggestions for improvements. I appreciate my editor Toby Wahl s ideas and feedback on the work as well as the cogent and constructive criticisms of the external reviewers. As always, errors and omissions are entirely of my own doing. Lastly, I want to thank my family Kevin, Eric, Alyssa, and even Cameron they have sustained me with their love and confidence throughout the project.