Brunei's 39th rung on ladder not cause for pride

ON STUDYING the World Economic Forum's Global Competitiveness Index (GCI), one receives it with mixed feelings. Being ranked at the 39th rung out of those 134 nations is not a competitive position one would have felt elated about ("Competitiveness: Brunei is ranked 39 out of 134 nations" and "MIPR welcomes Brunei ranking": The Brunei Times, October 10, 2008).

One swallow does not make a summer. Hearing the sound of a war drum doesn't mean we have won the war.

Thus, judging from the long-standing public groans caused by the excruciating delays in getting necessary government approvals to start and operate businesses, one is perplexed about the expression of positive reception of the GCI ranking of Brunei. The GCI itself has also highlighted, among other attributes, this longstanding bureaucratic insouciance and bane: "burden of government regulation, corporate ethics and accountability..." (Part of GCI findings.)

The vital cautionary caveat in digesting this "GCI index" is that (though we do not doubt their good intention and that as a world pressure group they cannot be accused of having an axe to grind) they are essentially "fleeting outsiders". They can never ever convey an accurate reflection or description of the persistent actual suffering of those numerous "bureaucratic victims".

By their nature, these "fleeting outsiders/observers" are transient: they come, they see, they seek (selected?) contact points, they ask questions, they discuss, they take notes, they ponder in hotel lobbies, they rush to the airport, they go away to compile their materials and findings then make a decision and arrive at a conclusion.

We don't normally have the chance to comment in advance on their positive or negative findings and conclusion and hence the impact of their conclusion. They may have good intentions, but we are constantly reminded by this old proverb: Berat mata memandang, lebih berat lagi bahu memikul (Seeing is believing, but shouldering it really hurts). The shaman can rant his "mumbo-jumbo" but it is the patient who feels the pain of being strangled by the long sturdy red tape. For example, "Red tape hampers Brunei's businesses" (Borneo Bulletin February 20, 2008)

This latest "competitiveness index" further reminds us of the examination experience of our happy-go-lucky primary school days. We were so elated to have been placed in the 8th position out of 31 students in the class. But when someone mature who had first tasted the salt and had a close look at the qualitative angle of the 8th position, the real dismal reality strikes us upon being told that our performance was Singap singap nyawa ikan - cukup cukup makan! (A gasping fish out of water!) (But the carefree mind and feelings still remain passively unaffected!). The sarcastic reprimand directed at our eyes to the bare qualitative comparison as portrayed below:

So we must not prematurely jump over the moon upon being told by outsiders that statistically our position is at the 39th rung out of 134 nations, when in reality our actual socio-economic-bureaucratic performance has been so dismal and worrying.

Thus, we got more confused when one month earlier we had been told by the World Bank's Doing Business 2009 that Brunei's ranking had slipped from 83rd rung to the 88th rung out of 181 economies on the subject of the ease of doing business. ("Brunei slips to rank 88 for ease of doing business": The Brunei Times, September 11, 2008.)

So it is not only misleading but deceptively harmful to use crude numerical figures to evaluate one country's complex "socio-economic-financial-religious-political-demographic-technical" cocktail.

In the context of socio-economic-psychological usefulness, great caution must always be taken in trusting or using statistical indexes. For example, certain students have been told that there is now a deadly virus that may kill 600 people unless something is done quick. So there are two options:

By adopting Option One, 200 lives will be saved. On the other hand, by adopting Option Two, one-third chance of saving every one could be achieved, and two-thirds chance of saving no one. Upon seeing the obvious figure of 200 lives will be saved, those students may feel confident that Option One is preferable. But in fact those who have the matured faculty of being able to think hard would confidently say the two options are the same (ie. 1/3=200/600).

In the words of Andrew Long (1844-1912): "He uses statistics as a drunken man uses a lamp post for support, rather than illumination." Taking a cue from these words, it is essential that we ignore those nebulous indexes and firmly and speedily "illuminate" that anti-business mindset and have it banished for our national common good and survival.

It has been proven in those socio-economically successful economies that "Enabling Pro-Business" bureaucracy is the vital cohesive driving force and catalyst that promotes socio-economic development.

The World Economic Forum also, among other issues, considered Brunei's (small) domestic size as a disadvantage.

Since nothing can be done to "improve" our national disadvantage of diseconomies of scale of being "small", this demographic disadvantage could be harnessed into a National Cohesive Opportunity, because according to one of the renowned economists, EF Schumacher: "Small is Beautiful". (The full title of the popular book: Small is Beautiful: A Study of Economics As If People Mattered (1973).)

His disciple, Joseph Pearce, wrote a book Small is STILL Beautiful (2001). Pearce reiterates the many advantages of being "small".

In a similar argument the many advantages of "being small" are also highlighted by the international authors such as: Robert M Tomasko wrote Bigger isn't Always Better (2006); Bo Burluigham wrote Small Giants (2005); Joel M Shulman wrote Getting Bigger by Growing Smaller (2004); Seth Godin wrote Small is the new BIG (2006).

So our relatively small population of 360,000 plus (with our oil- and gas-based economy) could have been effectively harnessed to our national advantage if only we have been able to mould our national collective mind, effort, energy, determination, care and concern into one solid, cohesive catalyst of our socio-economic development, in a similar way those 300,000+ Icelanders have made their country socio-economically progressive. Iceland's bureaucracy is strongly Pro Business; their education system and materials are fully geared to meet the needs of their socio-economic development: the square pegs for the square holes.

A single stick can be easily broken, a bundle conquers resistances.

So just like in business, we must have a solid cohesive nimble spirit of "we together can succeed".

We must cohesively have "the magic of thinking BIG" to borrow the words of David Schwartz, PhD.

Cohesively, thinking BIG, as in business risk taking, is essential to instil in our national minds, our cohesive outlook, for our national survival, that powerful mental-psychological spur is vital for success.

Niccolo Machiavelli (1469-1527) wrote that if one wants to hit the bull's eye, one must aim one's arrow higher to hit the target.

Yang Dimuliakan Pehin Orang Kaya Lela Raja Dato Seri Laila Jasa Haji Awang Abdul Rahman bin Haji Abdul Karim DSLJ, PJK was formerly Permanent Secretary of the Ministry of Finance and the Ministry of Defence. The views expressed by Pehin Dato Rahman Karim are his own and do not necessarily reflect those of The Brunei Times.