A LETTER FROM PRISON

At the grass roots, the New Economy is cultivating an Asian civil society. But where are the new leaders?

By Anwar Ibrahim

I PACE MY PRISON CELL here in a suburb of Kuala Lumpur. in the nighttime solitude, my thoughts are on my family. It is quiet, but it is the silence of the sanctioned.

Outside, beyond the prison bars, Asia is in tumult. It is engaged in an epid struggle betweenreactionaries and reformists -- a contest between "Old Asia" autocrats and "New Asia" democrats. The struggle tells us much about the tectonic shift wrought by the economic collapse of the late 1990s. We are witnssing a transition from measurements of progress based on the old "hardware" -- epitomized by glassy office towers, steel mills and flashy cars -- to a new emphasis on "software". In the new generation of Asians, nationalism is giving way to patriotism, in which loyalty to country and principles, not the government of the day, is what counts. Social justice and ethical values are becoming the new measures of success.

Before the crash of 1997, Asia was the "miracle" continent, and foreign investors rushed in. There were voices of caution. But lulled into complacency by a decade of economic success and servile sychophancy, strident Asian leaders sneered at foreign-based critics and shrugged off the warnings from within. As Asia's economices imploed, the foreigners stampeded for the exits. And the gale of creative destruction propelled reformers onto center stage. No single event encapsulates this dramatic tilt more than the fall of Suharto. For three decades, Indonesians were denied their civil and political rights. This, the autocrats argued, was the price to pay for security and stability. Economic activities sponsored by the state fed the political elite than creating the environment for robust competition.

For Malaysia's Mahathir Mohamad, the crisis was an occasion to unleash xenophobic fury. Fearful that the rise of reformists would become contagious, he has tried to galvanize support by whipping up jingoistice nationalist sentiments. Mahathir views the market as a pace to be manipulated. He fails to perceive that the primary trask of government is to create conditions for individual initiative to flourish. Even in countries where democratic forces have prevailed, from the Philippines to Indonesia and even South Korea, the ruling elite often arms friends and relatives with the power to corner the market. In too many countries, corrupt politicians want to skip over reforms by riding on the wave of the current recovery.

Government does have a role to play, of course. It must step in when necessary to corect imbalances. Asia, together with the international community, needs to find ways to deal with unfettered capital flows. A new architecture for the international finance system must be hammered out. But no new system can help Asia avert crisis if domestic problems aren't rooted out. Those who portray globalization as colonialism in a new garb are only seeking to perpetuate opaque governing systems that are threatened by growing demands for accountability. Democratic ideas are spreading with the information revolution. In relatively closed countries like China, the New Economy will spark awareness tha civic rights are enjoyed even by their neighbors in Asia.

Across the region, new economic forces are leaving the politicians behind. A grass-roots political and economic revolution is spreading. The high-tech economy is allowing individuals to free themselves from the smothering embrace of the state. Even as old politicians rail against colonialism, Asia's new entrepreneurs are embracing globalization. A genuine civil society is beginning to emerge. The chemistry between political and economic freedom will bring about a rebirth of Asia. But the struggle between old and new isn't over. It is time for a new generation of modern leaders to step up[ to guide the region into a more open, democratic era.