ANWAR

That Starbuck's incident sent me into a bit of a froth today. It had been building over the past week, with the Russian airliners, the kidnapping of the French journalists and then – especially - the Russian schoolchildren being held hostage and the murder of the Nepalese migrant workers, I had a growing feeling of rage.

The thought of Ali Imron enjoying a frappuccino soured my mood more than it ordinarily would have.

Anyway, because of my exceptionally sour mood, this was an incredibly welcome surprise:

PUTRAJAYA, Malaysia (Reuters) - Malaysia's highest court freed rebel politician Anwar Ibrahim from almost six years in jail on Thursday, overturning his conviction for sodomy in a shock ruling expected to win support for the new prime minister.
The former deputy prime minister, confined to a wheelchair because of a back complaint, used his first few minutes of freedom to urge recently installed prime minister Abdullah Badawi to drive harder on reform.
Wearing a broad smile over his neck brace, Anwar held an impromptu news conference inside the domed Moorish-style courthouse, as hundreds of supporters rallied outside, raising his old battle cry of "Reformasi" - the reform movement he led before his 1999 jailing.

Before his sacking,and later imprisonment, Anwar didn't seem a likely rebel. His major falling-out with Mahathir was over economics, with Anwar backing rather orthodox economic measures for dealing with the 1997 economic crisis.

There are some great old articles at Businessweek and the Beeb, if anyone wants a refresher.

At the time of Anwar's sacking the Beeb reported:

Anwar and the central bank had preferred high interest rates and austerity measures to control Malaysia's sliding currency.

Businessweek, meanwhile, noted:

Perhaps the key difference between the two leaders was their outlook on the world. Anwar quickly realized that the meltdowns of Thailand and Indonesia were caused by excessive borrowing, overbuilding, and big trade imbalances--and that Malaysia's situation was similar. Malaysia didn't yet need an IMF bailout, but he feared its economy would implode without swift action. While this surely would hurt his business allies, Anwar was willing to have Malaysia absorb economic pain first and rebuild for the future.
Mahathir looked at it differently. Unlike the ascendant Anwar, he was in the twilight of his career--and feared for his legacy. While Anwar hinted he wanted to end patronage, Mahathir genuinely thought the system he proudly calls ''Malaysia Incorporated'' was a legitimate model for developing nations. A handful of wealthy businessmen are singled out for privileges and given the role of creating jobs, implementing big projects, and keeping the economy and the ruling party humming. Then wealth trickles down from Mahathir's chosen few to the many.

Anwar had earlier expressed the need for greater transparency in business, more liberalism and an end to cronyism. But these didn't really become central themes until after his sacking.

Anwar didn't deserve the treatment he received, and the sodomy charges were clearly trumped up, but he wasn't a saint. As Businessweek noted in 1998, Anwar was “a central player in the old patronage system”:

Just last year (1997), foreign investors criticized the government's handling of insider deals by Malaysia Resources Corp., a media and infrastructure company controlled by Anwar allies.

Anwar credited his release to the new Prime Minister Ahmad Abdullah Badawi, who - Anwar said - allowed the judges to act independently.

I've been pretty impressed with Badawi since he has taken office. One of his first acts was to cancel some of the pork-barrel infrastructure projects that had been handed to Mahathir's friends. He moved to reconcile strained ties with the US by sending a medical team to Iraq. He has and also reached out to Malaysia's Christian and Chinese communities more than would have been imaginable under Mahathir.

Essentially, he has adopted many of the policies advocated by the 1998, 'Reformasi,' version of Anwar.

The release of Anwar has probably made Badawi some new friends. Mahathir's disappointing result in the 1999 elections – which saw a rise for the Islamic fundamentalist PAS party - was partly attributed to the widespread discontent at his treatment of Anwar. Meanwhile, Badawi's strong showing in last year's election was largely attributed to the fact that he wasn't Mahathir.

With Anwar released and with Badawi adopting many of the most appealing parts of Anwar's agenda, I expect the new PM will be able to steal a large number of supporters from the opposition. Further, as Anwar is still barred from politics for the next four or five years, Badawi should have a decent chance of consolidating this support. That is, of course, if he does seriously push forth a reform agenda.

But nevermind that. It's late and I'm being far too wonkish.

Yes, I've been drinking.

I'm not going to do any forward analysis right now. I don't have a clue what this means for the future.

But it does mean one thing about the past: The Mahathir era is over.

Celebrate!