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The Role of Government in East Asian Economic DevelopmentComparative Institutional Analysis$
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Masahiko Aoki, Hyung-Ki Kim, and Masahiro Okuno-Fujiwara

Print publication date: 1998

Print ISBN-13: 9780198294917

Published to Oxford Scholarship Online: January 2007

DOI: 10.1093/acprof:oso/9780198294917.001.0001

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Rents and Development in Multiethnic Malaysia

Rents and Development in Multiethnic Malaysia

Chapter:
(p.342) 12 Rents and Development in Multiethnic Malaysia
Source:
The Role of Government in East Asian Economic Development
Author(s):

K. S. Jomo

Edmund Terence Gomez

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198294917.003.0012

This chapter discusses the trade-offs involved between two types of rents in the context of resource-rich, ethnically diverse Malaysia: one primarily generated for postcolonial industrial development and the other generated for redistributive goals, mainly along interethnic lines. How the two types of rents have interacted with each other, alternated in influence, and affected the efficiency of the development process is discussed. It is shown that while redistributive policy has enhanced human capital accumulation among Malays or Bumiputras and reduced political tension, redistributive rents have induced various unproductive renter behaviours.

Keywords:   redistributive policy, government policy, economic policy, industrialization

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