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The political economy of Malaysian federalism: economic development, public policy and conflict containment

Author

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  • Jomo K. S.

    (Applied Economics Department, University of Malaya, Kuala Lumpur, Malaysia)

  • Wee Chong Hui

    (Universiti Teknology Mara, Kuching, Sarawak, Malaysia)

Abstract

Conflicts within the Malaysian federation have been rooted in socio-economic disparities and the struggle for control of natural resource rents, which state governments previously had exclusive control over, as originally provided for by the federal constitution. The advance of fiscal centralization since then has also aggravated federal-state tensions, which have been relatively ignored due to the long-standing Malaysian pre-occupation with inter-ethnic tensions. Inter-regional resource transfers and central fiscal and political dominance have been used to undermine the more independent state governments, especially those held by opposition parties. While the federal government is clearly dominant, central control over the state governments has varied, especially in Sabah and Sarawak, with the continued hegemony of the national ruling coalition depending on successfully combining the carrot with the stick. Copyright © 2003 John Wiley & Sons, Ltd.

Suggested Citation

  • Jomo K. S. & Wee Chong Hui, 2003. "The political economy of Malaysian federalism: economic development, public policy and conflict containment," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(4), pages 441-456.
  • Handle: RePEc:wly:jintdv:v:15:y:2003:i:4:p:441-456
    DOI: 10.1002/jid.995
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    Cited by:

    1. Nor Farizal Mohammed & Zuraidah Mohd Sanusi & Fahdah Sultan Alsudairi, 2017. "Corporate Governance and Malaysian Politics: Theoretical Framework for Accounting Quality," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 188-195.

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