The world has encountered a crisis several times. In facing a crisis, every nation’s leader will need to strive to prevent the existing disaster from having a major impact on the country’s economy. This is because the economic crisis can have consequences for the reputation and the stability of the political regime itself.
Unlike the crises caused by unregulated economic practices such as during the Great Depression in 1929 or the Global Financial Crisis in 2008, the catastrophe that the world currently confronting today is prompted by the COVID-19 virus. This new type of disease has eventually sparked into the global pandemic and already created tremendous negative disruption toward economics and businesses around the world.
Of course, the panacea for this problem is not easy since it takes the extraordinary capability of the state to bear with a load of health costs and prevailing economic burden to its society.
Most of the countries having a really hard time coping with this ‘black swan’ event. While, for some emerging economies with weak public health capacity, and slow policy process has already struggled with the socio-economic impact of the virus.
In this backdrop, although countries in Southeast Asian (SEA) regions have already made an impressive economic achievement post-Asian Financial Crisis in 1997, they have to swallow the bitter pill again as their economy agonized from this significant blow.
The countries within the ASEAN have suffered a great economic loss due to the pandemic. According to the latest forecasting report by the Asian Development Bank (ADB),the GDP growth rate of Indonesia and Laos has been contracted to minus 1 percent and 2.5 percent respectively. Other nations such as Cambodia, Malaysia, and Singapore have been predicted to befall averagely under minus 4 percent. While the Philippines and Thailand have even major severe shocks as their economy sharply contracting in excess of minus 7 percent. Only several states such as Vietnam, Brunei Darussalam, and Myanmar have performed slightly better.
This phenomenon is indeed very upsetting, especially because these countries are highly dependent on foreign investment, trade, and the tourism sector as the main engine to drive economic growth respectively.
The tricky part comes when the state cannot provide its citizen with adequate support and accountability. Apart from the debate about which ideological system is best in dealing with a pandemic, we need to understand well that political turmoil is often triggered by the inability of the state to meet the needs of its people. The public health emergency coupled with the economic crisis, and problematic policy selection can swiftly turn into unrest since the society vigorously looking for justice and protection over their wellbeing.
Compared to other ASEAN member states, Vietnam and Singapore are effectively tolerate the impact of turbulence because of their impressive management of public health systems. While other nations in the region seem to have different stories.
In Indonesia, regime stability has been affected by COVID-19. From the beginning of the outbreak, among other ASEAN member states, Indonesia was the latest one who got struck by the virus. But it turns out that Indonesia becomes a country with the largest infected cases in the region. The lack of government coordination and assistance in tackling the pandemic has made the economic condition of the country worsen. In addition, the most recent enactment of the omnibus law of job creation that predominantly in favor of businessmen and investors has triggered the wide-spread protest toward the government across the archipelago since early October.
Likewise, the Philippines also has to face the fatal economic damage caused by the pandemic as the unemployment number and poverty rates have significantly risen. Despite the government’s extreme militaristic measures to contain the pandemic, the number of infected cases and death ratio still upsurging, second only to Indonesia. Yet, this has sparked both national and international criticism on President Duterte’s repressive approach.
In Malaysia, the government must engage with the second wave of the pandemic. After generally succeed in the first attempt to tackling the outbreak, the infected rate has steadily increased particularly in Sabah, after holding local elections on 26 September. Apparently, the political upheaval began to appear when Prime Minister Muhyiddin Yassin insist to put the country under a state of emergency. Although in the end the proposal was later rejected by Malaysia’s King Sultan Abdullah, the declaration to suspend the parliament was roundly condemned by opposition figures in the country and also mounted concern among Malaysians.
Amongst other countries in the SEA region, Thailand currently in the state of a serious political crisis mode provoked by a series of anti-government demonstrations. The Thai people demanding to reform the Thai constitutional monarchy and removal of Prime Minister Prayuth Chan-ocha from his office. This situation has made Thai authorities announced the country to entered the emergency decree. Though the protester vigorously attacked the government solely for the political reform motives, the issue of the economy has virtually played a quite larger part. Previously, the country’s strategy in responding to the outbreak of the disease domestically had relatively efficacious. However, the long period of the lock-down policy has brought down deep frustration on the government since the economic inequality, poverty rate, and desperateness for the job among the young generations have ominously increased.
Conclusively, the pandemics of COVID-19 have become an interesting setting for testing the stability of the political regime in ASEAN. The virus has considerably contributed as a catalyst for the economic crisis. Clearly, the pattern of political turmoil and civil disobedience has gradually begun to appear as the countries started to be overwhelmed by the collision of the crisis.
It’s no doubt that Indonesia and the Philippines will deeply fall into another economic recession which can potentially ignite another massive civil unrest toward the regime. Malaysia similarly could face another heated political situation. Yet, the country’s capacity to handle the crisis still can make the regime to be relatively stable. While Thailand on another hand will face difficult circumstances. As the public has already tired of their flawed constitutional system, civil unrest will most likely continue to take the place. Consequently, the future political-economic outlook of Thailand in the near future will somewhat look worrisome.
