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I didn't want to go to Malaysia. The Malaysian government would surely expect me to deliver a stronger endorsement of its heterodox economic program than I was prepared to offer. And, of course, it would try to use me politically--to provide a veneer of respectability to a regime that has lately developed the habit of putting inconvenient people in jail. But sometimes an economist has to do what an economist has to do. Since I had been the only high-profile economist to advocate the economic heresy that Malaysia had put into practice, sooner or later I would have to face the music. And so last month I agreed to spend a day--including a 90-minute "dialogue" with the prime minister--at the Palace of the Golden Horses, a vaguely Las Vegas-style resort outside Kuala Lumpur.
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Mahathir can therefore claim a partial vindication for his economic heresies. That is not a political endorsement. Some right-wingers have claimed that anyone with a good word for Malaysian capital controls (me in particular) is also in effect an accomplice in the imprisonment, on what certainly sound like trumped-up charges, of Mahathir's former heir apparent Anwar Ibrahim--an advocate of more conventional policies. Well, I still remember the days when left-wingers used to claim that anyone with a good word for Chile's free-market reforms had bloodstained hands, because he was in effect endorsing Gen. Augusto Pinochet. The point is that economics is not a morality play. Sometimes bad men make good policies, and vice versa. And the job of economic analysts is, or ought to be, to assess the policies, without regard to who makes them.
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