Brunei Government, Politics and Economy
In the 15th century, a sultanate from Malaya was established in Brunei. At the time, he controlled almost all of Borneo. The sultan followed the national philosophy of Melayu Islam Beraja, guiding principles which stretch back to 100 AD. The Brunei Malay monarchy was first established around the 5th century when Islam began to spread around the Malay archipelago, though Islam didn’t become the official state religion of Brunei until its first king, Sultan Muhammad Shah, assumed power in the 15th century.
By the 19th century, the sultan’s power had waned to the point where Brunei declined into a haven for pirates and other miscreants. The British established a protectorate over the sultanate in 1888, and the sultan retained his formal authority. When the Japanese invaded during WWII, Brunei’s modern government began to take its current shape.
A written constitution was drafted in 1959, creating an absolute constitutional monarchy. The sultan remained in charge, but a nominal government consisting of a chief minister, council of ministers, and an elected legislative council advised him. This legislative council was disbanded in 1962 following antimonarchist election victories and a failed military coup.
Brunei signed a treaty with the British in 1979, which led to full independence in 1984. Sultan Hassanal Bolkiah then became the country’s absolute monarch. He used the blend of Malay culture, language, and customs of his predecessors, along with the teaching of Islamic laws and values, to create the core philosophy of his new country. A tolerant approach to other religions has allowed Brunei to develop a unique form of constitutional monarchy, which seems to go over just fine with its residents.
In 2004, the sultan appointed a 21-member legislative council to keep up with the changing times. He signed a constitutional amendment allowing a partially elected council, though these men are still essentially advisers to the sultan. The sultan remains the highest authority, appointing the Supreme Court judges and most of the legislative council. Sharia courts follow Islamic law to settle most matters concerning Muslims, while a more British-style judicial system deals with non-Muslim matters. The sultan is also the self-appointed defense minister and prime minister.
The present sultan is part of the same lineage which was established in the 15th century. He is advised by a number of different councils, and even has a cabinet of ministers to help run the various parts of his country. But in effect, he is the supreme ruler of Brunei, both the head of state and the head of the government. Brunei’s media is very pro-sultanate, and the royal family is treated with extreme veneration within the country. As a part of ASEAN, Brunei keeps good relations with neighbors Singapore and Malaysia.
Education
Although formal education is not compulsory in Brunei, the country enjoys a literacy rate of around 93 percent in adults and 99 percent in children. Education is free for all citizens, heavily subsidized by substantial funding averaging at nine percent of the national budget per year. Any child aged five years or older is offered free government schooling. Everything is covered by the government including tuition, textbooks, supplies, food, transportation and even accommodation for students who come from rural areas. Even if a student is not a citizen of Brunei, they need only pay a small fee for secondary tuition.
The state also helps subsidize several non-government schools if they meet certain requirements. Only three percent of primary school-age children do not attend school. Around 52 percent of young children are enrolled in preprimary schools, and 94 percent of children are enrolled in primary school, with a 100 percent completion rate for primary education. Around 90 percent of children attend secondary school, although five percent more girls than boys are enrolled. At the university level, only 15 percent of students attend. Nearly four times more women than men receive degrees from university.
Economy
Brunei’s economy runs primarily on revenue generated by the export of petroleum and natural gas. These two resources make up 36 percent of the country’s GNP. The government has tried in the past to diversify its economy, but with little success. As the country produces little more than oil and gas, it must import most of its goods. But there is no personal income tax, sales tax or capital gains tax, so workers get to keep nearly all of their pay. This helps to keep inflation low.
Lately, the government has encouraged more foreign companies to invest in Brunei. New businesses which meet certain criteria qualify for exemption of tax on profits for up to five years. With a normal corporate tax of only 30 percent, many foreign investors have been attracted to the country. However, the government’s main priority is to encourage native Brunei Malays to become the leaders of the nation’s industry and commerce.
The government regulates the amount of foreign labor allowed to migrate to Brunei to help keep most residents employed. The nation’s substantial foreign reserves are overseen by the Ministry of Finance, whose purpose is to increase the value and stability of Brunei through diversified investment. Since 2002, Brunei has emerged as an offshore financial center, as well as a major hub for Islamic banking.
Economy make up
Besides the main exports of oil and gas, Brunei has small forestry, agriculture, fishing and banking industries. The bulk of Brunei’s economy relies on oil and gas, however. Although commerce is still in its infancy, a few local industries such as garment production, water-bottling and a soft drink company have become solid businesses. Despite its small size, Brunei has considerable wealth per capita within ASEAN.
Brunei maintains a serious commitment to protecting its natural environment, so all polluting industries are banned. A government-owned cattle ranch in Australia, which is larger than Brunei itself, provides the nation’s beef supply. Chickens and eggs are produced locally, but most other foods must be imported. Thus, agriculture, aquaculture and fishing have become priorities for the government in its effort to become more self-sufficient. Plans are also in the works to create a cyber park to develop high technology.