KUALA LUMPUR (Jan 30): The Institute for Democracy and Economic Affairs (IDEAS) urged political parties and policy-makers to consider “social market economy” and to stop talking about the dangerously unsustainable “welfare state”.
Its chief executive Wan Saiful Wan Jan said on Monday that giving handouts and one-off payments to the rakyat was clearly not sustainable, and was irresponsible in the long run.
“With many welfare states in the West being forced to reassess their situations, there is need for looking beyond these populist measures and quick fixes,” he said.”Before the race to become more ‘welfarist’ bankrupts Malaysia, we urge politicians to look at this model as a potential alternative.”
Wan Saiful said a social market economy was a more sustainable liberal economic model as it might provide a liberal economic solution that would ensure the rakyat’s welfare without increasing the national debt burden.
“Best value for money is achieved by maximising the potentials of non-state providers, such as civil society, autonomous non-governmental organisations, and the private sector,” he said.
Wan Saiful pointed out social market economy was one of many schools within the larger scope of liberal economic ideas. Essentially, the basic principles of competition, free choice and limited state were shared by everyone in the liberal family.
“The difference is in the details – that is the exact mechanisms how to implement the shared principles and how much weight should be given to the role of government,” he said.
What the social market economy model aimed to do, he said, was to create an integrated economy where individuals are able to flourish in a free market, but the poorest are protected by a clearly defined social safety net.
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