FACULTY OF ECONOMICS AND

ADMINISTRATION

Introduction to Political Science

EIX1001
Semester 1, 2016/2017

Name : Noorul Azreen binti Abdul Aziz

No. Matric : EIA 160108
Lecture : Profesor Madya Dr. Yeoh Kok Kheng
Introduction

My task is Examine three states of your choosing that can fit into the categories of effective,
weak, and failed states. Compare and contrast these states and place them into the respective
categories with an explanation of why you made those choices. Further, speculate as to why
these states by focusing on the institutional choices made and your application of the
concepts surrounding notions of state power. The institutional choice that we are going to
focus on is what kind of government of the state, How is their electoral system, what is
their economic structure and How is their tax system. Among these four institutional
choices we are going to elaborate, compare and contrast them by related to the concept of
state power.

Concept

What are nation and state? Nation is a cultural-political community that has become
conscious of its coherence, unity, and particular interests. Next, the word State carries
multifold meaning as it is a noun, an adjective and also a verb. Thus, the meaning state
refers to a nation or territory considered as an organized political community under one
government in this context. Besides, we can also separate state into three different categories,
which is effective, weak, and fail state. Next power is important to a political system. Power
mean ability of one person get another to do something. Without power a political system
cannot be run because power is the ingredient and enabling tool for political system. Hence a
power is important to the government to run the political system .

EFFECTIVE STATES
Effective states control and tax their entire territory. Laws are mostly obeyed. Government
looks after the general welfare and security. Corruption is fairly minor. Effective states tend
to be better off and to collect considerable taxes (25 to 50 percent of GDP). Effective states
include Japan, the United States, and Western Europe. Some put the best of these states into a
highly effective category.

United Kingdom

History

The history of the United Kingdom as a unified sovereign state began in 1707 with
the political union of the kingdoms of England and Scotland into a united kingdom called
Great Britain. On this new state the historian Simon Schama said "What began as a hostile
merger would end in a full partnership in the most powerful going concern in the world... it
was one of the most astonishing transformations in European history." A further Act of Union
in 1800 added the Kingdom of Ireland to create the United Kingdom of Great Britain and
Ireland.

The early years of the unified kingdom of Great Britain were marked by Jacobite
risings which ended with defeat for the Stuart cause at Culloden in 1746. Later, in 1763,
victory in the Seven Years War led to the dominance of the British Empire, which was to be
the foremost global power for over a century and grew to become the largest empire in
history. As a result, the culture of the United Kingdom, and its industrial, political,
constitutional, educational and linguistic legacy, is widespread.

In 1922, following the Anglo-Irish Treaty, Ireland effectively seceded from the United
Kingdom to become the Irish Free State; a day later, Northern Ireland seceded from the Free
State and became part of the United Kingdom. As a result, in 1927 the United Kingdom
changed its formal title to the "United Kingdom of Great Britain and Northern Ireland,"
usually shortened to the "United Kingdom", the "UK" or "Britain". Former parts of the
British Empire became independent dominions.

In the Second World War, in which the Soviet Union, Nationalist China and the US
joined Britain as allied powers, Britain and its Empire fought a successful war against
Germany, Italy and Japan. The cost was high and Britain no longer had the wealth or the
inclination to maintain an empire, so it granted independence to most of the Empire. The new
states typically

joined the Commonwealth of Nations.[4] The United Kingdom has sought to be a leading
member of the United Nations, the European Union and NATO. Since the 1990s, however,
large-scale devolution movements in Northern Ireland, Scotland and Wales have brought into
question the degree of unity of this constantly evolving political union.

Type of government

Her Majesty's Government commonly referred to as the British government, Welsh:

Llywodraeth Ei Mawrhydi, is the central government of the United Kingdom of Great Britain
and Northern Ireland. The government is led by the prime minister, who selects all the
remaining ministers. The prime minister and the other most senior ministers belong to the
supreme decision-making committee, known as the Cabinet. The government ministers all sit
in Parliament, and are accountable to it. The government is dependent on Parliament to make
primary legislation, and since the Fixed-terms Parliaments Act 2011, general elections are
held every five years to elect a new House of Commons, unless there is a successful vote of
no confidence in the government in the House of Commons, in which case an election may
be held in short order. After an election, the monarch selects as prime minister the leader of
the party most likely to command a majority of MPs in the House of Commons.

Under the unmodified British constitution, executive authority lies with the monarch,
although this authority is exercised only by, or on the advice of, the prime minister and the
cabinet.[5] The Cabinet members advise the monarch as members of the Privy Council. They
also exercise power directly as leaders of the Government Departments. The current prime
minister is David Cameron, the leader of the Conservative Party, which was elected to
government in its own right in the general election on 7 May 2015. Prior to this, Cameron
and the Conservatives led a coalition government from 2010 to 2015 with the Liberal
Democrats, in which Cameron was prime minister.

Constitutional Monarch

The UK is a constitutional monarchy in which the reigning monarch (that is, the King
or Queen who is the Head of State at any given time) in practice does not make any political
decisions. All political decisions are taken by the government and Parliament. This
constitutional state of affairs is the result of a long history of constraining and reducing the
power of the monarch, beginning with the Magna Carta in 1215.

Parliament is split into two houses: the House of Lords and the House of Commons.
The House of Commons is the lower house and is the more powerful. The House of Lords is
the upper house and although it can vote to amend proposed laws, the House of Commons
can usually vote to overrule its amendments. Although the House of Lords can introduce
bills, most important laws are introduced in the House of Commons - and most of those are
introduced by the government, which schedules the vast majority of parliamentary time in the
Commons. Parliamentary time is essential for bills to be passed into law, because they must
pass through a number of readings before becoming law. Prior to introducing a bill, the
government may run a public consultation to solicit feedback from the public and businesses,
and often may have already introduced and discussed the policy in the Queen's Speech, or in
an election manifesto or party platform.

The British monarch, currently Queen Elizabeth II, is the head of state and the
sovereign, but not the head of government. The monarch takes little direct part in governing
the country, and remains neutral in political affairs. However, the legal authority of the state
that is vested in the sovereign and known as the Crown remains the source of the executive
power exercised by the government.

In addition to explicit statutory authority, in many areas the Crown also possesses a
body of powers known as the Royal Prerogative, which can be used for many purposes, from
the issue or withdrawal of passports to declaration of war. By long-standing custom, most of
these powers are delegated from the sovereign to various ministers or other officers of the
Crown, who may use them without having to obtain the consent of Parliament. The head of
the government, the prime minister, also has weekly meetings with the monarch, when she
"has a right and a duty to express her views on Government matters. ... These meetings, as
with all communications between The Queen and her Government, remain strictly
confidential. Having expressed her views, The Queen abides by the advice of her ministers.

The government's powers include general executive and statutory powers, delegated
legislation, and numerous powers of appointment and patronage. However, some powerful
officials and bodies, are legally more or less independent of the government, and government
powers are legally limited to those retained by the Crown under Common Law or granted and
limited by Act of Parliament, and are subject to European Union law and the EU
competencies that it defines. Both substantive and procedural limitations are enforceable in
the Courts by judicial review.

Nevertheless, magistrates and mayors can still be arrested for and put on trial for
corruption, and the government has powers to insert commissioners into a local authority to
oversee its work, and to issue directives that must be obeyed by the local authority, if the
local authority is not abiding by its statutory obligations.

The United Kingdom doesn't have a single, written constitution (a set of rules of
government). But this doesn't mean that the UK has an unwritten constitution. In fact, it is
mostly written but instead of being one formal document, the British constitution is formed
from various sources including statute law, case law made by judges, and international
treaties. There are also some unwritten sources, including parliamentary conventions and
royal prerogatives.

Electoral System

There are six types of elections in the United Kingdom: United Kingdom general
elections, elections to devolved parliaments and assemblies, elections to the European
Parliament, local elections, mayoral elections and Police and Crime Commissioner Elections.
Elections are held on Election Day, which is conventionally a Thursday. General elections did
not have fixed dates, with a necessity for them to be called within five years of the opening of
parliament following the last election, before the passing of the Fixed-term Parliaments Act
2011. Other elections are held on fixed dates, though in the case of the devolved assemblies
and parliaments early elections can occur in certain situations. Currently, six electoral
systems are used: the single member plurality system (First Past the Post), the multi member
plurality system, party list PR, the single transferable vote, the Additional Member System
and the Supplementary Vote.

Elections are administered locally: in each lower-tier local authority, the actual polling
procedure is run by the Acting Returning Officer or Returning Officer and the compiling and
maintenance of the electoral roll by the Electoral Registration Officer (except in Northern
Ireland, where the Electoral Office for Northern Ireland assumes both responsibilities). The
Electoral Commission only sets standards for and issues guidelines to Returning Officers and
Electoral Registration Officers, but is responsible for nationwide electoral administration.
 Economy

The United Kingdom has the fifth-largest national economy (and second-largest in
Europe) measured by nominal GDP and tenth-largest in the world measured by purchasing
power parity. The UK has been the fastest growing economy in the G7 for 3 consecutive
years as of October 2015. In 2014 the UK was the ninth-largest exporter in the world and the
fifth-largest importer, and had the second largest stock of inward foreign direct investment
and the second-largest stock of outward foreign direct investment. The UK is one of the
world's most globalized economies. The UK economy comprises the economies of England,
Scotland, Wales and Northern Ireland.

The service sector dominates the UK economy, contributing around 78% of GDP; the
financial services industry is particularly important and London is the world's largest
financial Centre (tied with New York). The British aerospace industry is the second- or third-
largest national aerospace industry depending on the method of measurement. The
pharmaceutical industry plays an important role in the economy and the UK has the third-
highest share of global pharmaceutical R&D. The automotive industry is also a major
employer and exporter. The British economy is boosted by North Sea oil and gas production;
its reserves were valued at an estimated 250 billion in 2007. There are significant regional
variations in prosperity, with the South East of England and southern Scotland the richest
areas per capita. The size of London's economy makes it the largest city by GDP in Europe.

In the 18th century the UK was the first country to industrialize and during the 19th
century had a dominant role in the global economy.[36] From the late 19th century the
Second Industrial Revolution in the United States and Germany presented an increasing
economic challenge, and the costs of fighting World War I and World War II further
weakened the UK's relative position. However, as of 2015 it still remains a great power with
global strengths and an influential role in the world economy.

In 2008, the UK entered a recession during the financial crisis of 200708, it first for
nearly two decades, and initially experienced a deeper downturn than all of the G7 except
Japan. However, since 2013 the UK has been in a nascent economic recovery and is firmly in
expansion territory. The UK economy is now 6.4% bigger than its pre-crisis peak and 12.3%
bigger than in 2010. The UK was the fastest growing economy out of the G7 members in
both 2013 and 2014 and as of 2015, still continues to be the fastest growing. Since 2010, the
Government has been pursuing an austerity program aimed at cutting the budget deficit. In
the financial year 20092010 this was 11% of GDP, it is now 3.9%.

Source: http://www.tradingeconomics.com/united-kingdom/gdp-growth

Government involvement in the British economy is primarily exercised by HM

Treasury, headed by the Chancellor of the Exchequer, and the Department for Business,
Innovation and Skills. Since 1979 management of the UK economy has followed a broadly
laissez-faire approach. The Bank of England is the UK's central bank and its Monetary Policy
Committee is responsible for setting interest rates. The currency of the UK is the pound
sterling, which is also the world's third-largest reserve currency after the US dollar and the
euro, and also the fourth-most-valued currency in the world, behind the Kuwaiti Dinar,
Bahraini Dinar, and Omani Rial, and the most valued currency outside the Middle East. The
UK is a member of the Commonwealth of Nations, the European Union, the G7, the G8, the
G20, the International Monetary Fund, the Organization for Economic Co-operation and
Development, the World Bank, the World Trade Organization, Asian Infrastructure
Investment Bank and the United Nations.

Tax system

Taxation in the United Kingdom may involve payments to a minimum of two

different levels of government: the central government (Her Majesty's Revenue and Customs)
and local government. Central government revenues come primarily from income tax,
National Insurance contribution, values added tax, corporation tax and fuel duty. Local
government revenues come primarily from grants from central government funds, business
rates in England and Wales, Council Tax and increasingly from fees and charges such as
those from on-street parking. In the fiscal year 2014-15, total government revenue was
forecast to be 648 billion, or 37.7 per cent of GDP, with net taxes and National Insurance
contributions standing at 606 billion.

United Kingdom source income is generally subject to United Kingdom taxation no

matter the citizenship nor the place of residence of the individual nor the place of registration
of the company. For individuals this means the United Kingdom income tax liability of one
who is neither resident nor ordinarily resident in the United Kingdom is limited to any tax
deducted at source on UK income, together with tax on income from a trade or profession
carried on through a permanent establishment in the United Kingdom and tax on rental
income from United Kingdom real estate.

Individuals who are both resident and domiciled in the United Kingdom are
additionally liable to taxation on their worldwide income and gains. For individuals resident,
but not domiciled in the United Kingdom, foreign income and gains have historically been
taxed on the remittance basis, that is to say, only income and gains remitted to the United
Kingdom are taxed. However, from 6 April 2008, a (long term non-dom wishing to retain the
remittance basis is required to pay an annual tax of 30,000.

United Kingdom domiciled individuals who are not resident for three consecutive tax
years are not liable for United Kingdom taxation on their worldwide income, and those who
are not resident for five consecutive tax years are not liable for United Kingdom taxation on
their worldwide capital gains. Anyone who stays in the United Kingdom for 183 or more days
per year is resident.
 Domicile here is a term with a technical meaning. Very roughly (and this is a
considerable simplification) an individual is domiciled in the United Kingdom if he was born
in the United Kingdom or if the United Kingdom is his permanent home, and is not a United
Kingdom domicile if he was born outside of the UK and does not intend to remain
permanently. A company is resident in the United Kingdom if it is United Kingdom-
incorporated or if its central management and control are in the United Kingdom (although in
the former case a company could be resident in another jurisdiction in certain circumstances
where a tax treaty applies). Double taxation of income and gains may be avoided by an
applicable double tax treaty - the United Kingdom has one of the largest networks of treaties
of any country

Conclusion

In conclusion, the type or government in United Kingdom is a constitutional

monarchy with a parliamentary of government representing constituencies. Where there is a
clear separation of power among the legislative, executive, and judiciary. Each of them have
their own power in regulate in each related matter and there is no interrupt among them. Next
the electoral system in UK is single member plurality system, In UK most of the power is
mainly come on two parties, which is Conservative and Unionist Party and Labor Party
because every election this two parties won the most seat in parliament. In addition, in the
aspect of economy structure government of UK has almost fully control on the economy
where the government set up the state ownership enterprise and state investment to control
the economy. Furthermore the government also makes many policy to regulate the economy
activity of every sector in order to improve the performance and to attract more foreign
investor invest in their country. Next, for the tax system in UK, the government has set up an
authority to collect tax from people. Hence from here we can say that the government in
Singapore has almost fully power to collect tax from people. This can be proved by where the
tax collection from people in UK is keeps increasing year by year

WEAK STATES

Weak states are characterized by the penetration of crime into politics. You cannot tell where
politics leaves off and crime begins. The government does not have the strength to fight
lawlessness, drug trafficking, corruption, poverty, and breakaway movements. Justice is
bought. Democracy is preached more than practiced and elections often rigged. Little is
collected in taxation. Revenues from natural resources, such as Mexicos and Nigerias oil,
into privates pockets. Much of Asia, Africa, and Latin America are weak states

Malaysia

History

Independence Day in Malaysia is on 31st august and celebrating it as a national

holiday. Heres a little quick info about the Independence Day. The independence of Malaysia
was a peaceful independence attained by holding talks with the British. On August 31, 1957,
Malaysia gained her independence from the United Kingdom. The European Colonization of
Malaysia started in year 1511, when the Portuguese captured Malacca. The Portuguese were
in turn defeated in 1641 by the Dutch, who colonized until the advert of British in 1824.
During the World War II, Japanese had colonized Malaysia too in 1941 1945. These left
many European and Japanese influences in Malaysia later on.
 The first Prime Minister of Malaysia, Tunku Abdul Rahman Putra spearheaded the
effort for independence, leading a delegation of ministers and political leaders of Malaya
(now Malaysia) in negotiations with the British in London for Independence. Agreement was
reached on February 8, 1956, for Malaya to gain independence. Then the official
proclamation of independence was made the next year, on August 31, 1957, at Stadium
Merdeka in Kuala Lumpur. It was the day we got our freedom which was lost back in 1511. It
was obtained after great struggle and long patience.

On the glorious day, crowds gathered to witness the handover of power from the
British. The Queens representative, the Duke of Gloucester presented Tunku Abdul Rahman
with the instrument of independence. Tunku then proceeded to read the Proclamation of
Independence, which culminated in the chanting of MERDEKA (Independence) seven
times with the crowd joining in. The new Flag of Malaya was raised as the national anthem
Negaraku (My Country) was played.

Type of government

The Government of Malaysia refers to the Federal Government or national

government authority based in the federal territories of Kuala Lumpur and the federal
executive based in Putrajaya. Malaysia is a federation of 13 states operating within
constitutional monarchy under the Westminster parliamentary system and is categorized as a
representative democracy. The federal government of Malaysia adheres to and is created by
the Federal Constitution of Malaysia, the supreme law of the land. The federal government
adopts the principle of separation of powers and has three branches: executive, legislature and
judiciary. The state governments in Malaysia also have their respective executive and
legislative bodies. The judicial system in Malaysia is a federalised court system operating
uniformly throughout the country.

Electoral system

A government cannot be called democratic simply because its electorate can

participate in general elections, Malaysian Bar president Christoper Leong says.

Elections in Malaysia exist at two levels: federal level and state level. Federal level
elections are those for membership in the Dewan Rakyat, the lower house of Parliament,
while state level elections are for membership in the State Legislative Assemblies. The heads
of executive branch at both the federal and state levels, the Prime Minister and Menteri
Besar/Chief Ministers respectively, are indirectly elected, usually filled by a member of the
majority party/coalition in the respective legislatures. The electoral system may look perfect
on the tip of the iceberg but if we dig deeper, it might contain more flaws that you expect.
Recently, Constitution (Amendment) Act of 1962 increased the governments powers of
control over the Election Commission (EC) by empowering Parliament to determine the
terms of office of EC members EC other than their remuneration. Besides, it is critical to
understand that the implication of this provision is that it completely removed the specific
constitutional limits to rural weightage. EC to take steps to correct the existing flaws in the
system, and aim to achieve the best practice of one person, one vote, one value . These
concerns have to be taken seriously in order to ensure the democracy of the election and thus
the democracy of a state.

Economy

Let us look from the perspective of the economy of the state by looking into our Gross
Domestic Product (GDP). GDP estimates are commonly used to measure the economic
performance of a whole country or region, but can also measure the relative contribution of
an industry sector. This is possible because GDP is a measure of 'value added' rather than
sales. As we can see in the recent research that Malaysias GDP has been stable and is
growing.

Figure 8: GDP of Malaysia

 Source: http://www.tradingeconomics.com/malaysia/gdp

Malaysia is a developing economy in Asia which, in recent years, has successfully

transformed from an exporter of raw materials into a diversified economy. The largest sector
of the economy is services, accounting for around 54 percent of GDP. In political science
context, Malaysia has not been fully relied on the invisible hand or market to move the
economy about. There has been partly government intervention is terms of setting price
policies as well as fiscal and monetary policies to control the economy of the nation
especially the New Economic Policy According to The Economist, the policy which favour
ethnic Malays and other indigenes at the expense of Malaysias ethnic Chinese and Indian
citizens are an oddity in the realm of state discrimination. It is not unusual that they favour a
majority, the two-thirds of the population known as the bumiputra, or sons of the soil. But it
is peculiar that their Chinese and Indian targets have never ruled Malaysia. Their presence in
the country, though, was encouraged under British colonial rule without the consent of native
Malays.

After independence this became a source of grievance, one exacerbated by the

minorities wealth. In 1969 mob burned Chinese shops, killing hundreds. The government
responded with a New Economic Policy (NEP) aimed at improving the lot of the bumiputra
with preferences in university admissions and for civil-service jobs. Billed in 1971 as a
temporary measure, the NEP has become central to a system of corrupt patronage. Supporters
of the NEP argue that, without such assistance, Malays will not catch up economically or
academically. The opposition argues for colour-blind affirmative actionthat is, policies
that favour the poor in general, rather than the bumiputra specifically. But are enough of the
sons of the soil ready to make the change? The opposition argues for colour-blind
affirmative actionthat is, policies that favour the poor in general, rather than the bumiputra
specifically.

Besides that Malaysia also promote an economy system, which called as privatization.
Although the federal government promotes private enterprise and ownership in the economy,
the economic direction of the country is heavily influenced by the government though five
years development plans since independence. In Malaysia, government is more emphasize on
privatization. The Malaysian government summed up its five arguments for privatization in
its Guidelines on Privatization (EPU, 1985). Firstly, it was supposed to reduce the financial
and administrative burden of the government, particularly in undertaking and maintaining
services and infrastructure. Secondly, it was expected to promote competition, improve
efficiency and increase productivity in the delivery of these services. Thirdly, privatization
was expected to stimulate private entrepreneurship and investment, and thus accelerate
economic growth. Fourthly, it was expected to help reduce the presence and size of the
public sector, with its monopolistic tendencies and bureaucratic support. Fifthly,
privatization was also expected to help achieve NEP objectives, especially as Bumiputera
entrepreneurship and presence have improved greatly since the early days of the NEP and
they are therefore capable of taking up their share of the privatized services. In other words,
privatization was supposed to accelerate growth, improve efficiency and productivity, trim
the public sector, reduce the governments financial and administrative role, and redistribute
wealth to the Bumiputera.

Tax system

In Malaysia we have different type of tax. Firstly is personal income tax. Any
individual who has income accruing in or derived from Malaysia or received in Malaysia
from outside Malaysia for a year of assessment is liable to tax in Malaysia. A resident
individual is subject to tax on income accruing in or derived from Malaysia; and income
received in Malaysia from outside Malaysia, while a non-resident individual is subject to tax
on income accruing in or derived from Malaysia. However, with effect from the year of
assessment 2004, income received in Malaysia by an individual for a year of assessment that
is derived from sources outside Malaysia is exempted from tax.

Next let move on to corporate tax. Resident companies are subject to tax on income
accruing in or derived from Malaysia. Income received in Malaysia from outside Malaysia is
exempt from tax, except for companies carrying on the business of banking, insurance or sea
or air transport. Assessable incomes for companies includes gains from a business, dividends,
interest and rentals, royalties, premiums and other gains and profits. Non-resident companies
are subject to tax only on income accruing in or derived from sources within Malaysia.
Foreign income is exempt, whether received in Malaysia or not. Business income of non-
residents derived through a permanent establishment in Malaysia is subject to tax. Figure 10
show the corporate tax rate in Malaysia, where start from 2009 until 2015, the government
charge the maximum corporate tax rate of 25% from the income of company.

Next in Malaysia, there is an agency that had been set up by government to collect
tax. Is called Inland Revenue Board Of Malaysia The Inland Revenue Board of Malaysia
(IRBM) is one of the main revenue collecting agencies of the Ministry of Finance. IRBM was
established in accordance with the Inland Revenue Board of Malaysia Act 1995 to give it
more autonomy especially in financial and personnel management as well as to improve the
quality and effectiveness of tax administration. The Department of Inland Revenue Malaysia
became a board on March 1, 1996, and is now formally known as IRBM. The agency is
responsible for the overall administration of direct taxes.

To act as agent of the Government and to provide services in administering, assessing,

collecting and enforcing payment of income tax, petroleum income tax, real property gains
tax, estate duty, stamp duties and such other taxes as may be agreed between the Government
and the Board; To advise the Government on matters relating to taxation and to liaise with the
appropriate Ministries and statutory bodies on such matters; To participate in or outside
Malaysia in respect of matters relating to taxation; To perform such other functions as are
conferred on the Board by any other written law; May act as a collection agent for and on
behalf of any body for the recovery of loans due for repayment to that body under any written
law.

Conclusion

In conclusion, the type of government in Malaysia is federal government where it

adopts the principle of separation of power. But in Malaysia case is kind of difference
because the power of executive did not mention clearly where it can influence the legislative
to make law and the executive can also influence the court decision. Hence we can say that
instead of separation of power, we can say it is a fusion of power among the three branches.
Next is the electoral system. In Malaysia it adopts the system of single-member districts
where the people vote the candidate in House of Representative. Recently the Constitution
(Amendment) Act of 1962 increased the governments powers of control over the Election
Commission (EC) by empowering Parliament to determine the terms of office of EC
members EC other than their remuneration. Besides, in the aspect of economy structure of
Malaysia. The government done imposed some policy to regulate the economic activity for
example price control to protect the welfare of people. Besides, the government also imposed
a policy called privatization where the government let go some power to the private to do
activity economic where this can help to reduce the financial burden of the government. But
in overall the economy reform in Malaysia mainly want to help the poor people especially
contribute wealth to some poor races. In addition, in term of tax system, there is an agency
that had been set up by government to collect tax. Is called Inland Revenue Board Of
Malaysia. Hence from here we can know that the government in Malaysia has the power to
tax and to collect tax from the people.

FAILED STATES

Failed states have essentially no national government, although some pretend they do.
Warlords, militias, and opium growers do as they wish. There is no law besides the gun.
Territorial breakup threatens. Education and health standards decline (as in the increase of
HIV/AIDS). Many count Afghanistan and Somalia as failed states. Pirates make their home
in Somalia because there is no state power to stop them (and no jobs for young men). Only
outside assistance and pressure keep these two countries from disappearing altogether. Some
fear Yemen, home to Islamist fighters, could become failed state.

Somalia

History

Somalia is a country that has experienced excessive amounts of political instability

during the past decade. It located in the Horn of Africa and has a population of around
10.5million. Around 85% of residents are ethnic Somalis, who have historically inhabited the
northern part of the country. Ethnic minorities, Bantu and Arabs make up the remainder and
are largely concentrated in the southern regions. The official languages of Somalia are Somali
and Arabic. Most people in the country are Muslim, with the majority being Sunni. Somalia
was colonized by European nations during the late 1800s.

In 1887, Britain became concerned with keeping the route to India open through the
Suez Canal, which was opened in 1869 and as a result Britain proclaimed Somalia as a
British protectorate and named it British Somaliland. In 1910 the British abandoned the
interior of Somaliland and withdrew to the coastal regions. Italy seized the opportunity to
extend its control inland and took over many of the regions that the British had abandoned. In
the aftermath of W.W.II, Italy was forced to relinquish its possessions in Africa and control of
Somalia was given to the United Nations and for 10 years it was a UN trust territory under
Italian administration until July 1, 1960 when Somalia was granted independence and it
merged with the former British protectorate of Somaliland. In 1969 Abdi Rashid Ali
Shirmarke, Somalia's second President, was assassinated and in the following days a military
coup, led by Major General Muhammed Siyad Barre, tgained control of the country.

In 1970 Barre declared Somalia to be a socialist state. Armed domestic opposition to

Siyad Barre arose in 1988 in the Northern part of the country. The Somali National
Movement (SNM), the United Somali Congress (USC), and the Ogadeni Somali Patriotic
Movement (SPM) joined forces to fight against Siyad Barre's government. In 1990 as Barre
began to lose control of the country, the local political and business figures came together to
sign the Mogadishu Manifesto, calling for Barre's resignation. Mohammed Siyad Barre fled
Somalia in January 27, 1991 and Somalia descended into a state of anarchy. After Barre fled
from the country the USC established an interim provisional government, which was headed
by provisional President Ali Mahdi Mahammad. As of September 1991, Somalia is
effectively under the control of as many as 12 rival clans and sub clans.

Government of the state

The last 20 years have seen numerous failed attempts to establish peace and national
reconciliation in Somalia. The August 2012 election of President Hassan Sheikh and the
formation of the government have revived hopes in the countrys ability to move from
fragility towards sustainable stability and improved governance. The President and his
government have embraced the New Deal through the development of an inclusive Somali
Compact, which sets out the critical priorities for stability and sustainable economic
development in the country.

Somalia currently has no centrally functioning government and has a loosely

organized legal system that is virtually ineffective. Somalia is attempting to form a
government so that the country can once again stabilize their internal structure. President
Abdulkassin Salat Hassan and Prime Minister Hassan Abshir Farah are attempting to use the
Transitional National Government that has been established in Somalia as a way of bringing
about unity within the entire country.

Somalis belong to clans and sub-clans. These hierarchical descent groups, each said to
originate with a single male ancestor, are a central fact of Somali life. Understanding how
Somali people relate to one another requires some knowledge of the clan system. In Somali
society, clans serve as a source of great solidarity as well as conflict. Clans combine forces
for protection, access to water and good land, and political power. The Somali clan
organization is an unstable system, characterized by changing alliances and temporary
coalitions.

The society of the pastoral Somalis is fundamentally democratic. Traditionally, decisions

are made by councils of men. These councils are egalitarian, sometimes to the point of
anarchy, although age, lineage seniority, and wealth can have influence. In these councils,
anthropologist I. M. Lewis points out, "all men are councilors and all men politicians."
Somali egalitarianism permeates all aspects of society. In Somalia, it is not at all unusual for a
poor and uneducated nomad to approach a high government official as an equal and engage
him in a discussion about the affairs of state.

Promising events in the political sphere have converged with a period of important.
Military gains in southern Somalia. The new federal government has growing support from
donors who are increasing assistance for further peace building and state building activities
under the compact in the coming year. In 2014, the government developed Vision 2016,
establishing a roadmap for achieving a national political settlement. It is comprised of three
interwoven strands for reviewing and adopting a revised Federal Constitution, federalism and
preparing for national elections in 2016. Despite some progress, Somalia is likely to face
continued instability as new stresses emerge in the coming years.

Electoral System

Currently Somalia's government is in a transitional phase and therefore is in the

process of establishing an electoral process. In Somalia there are many different factions that
are attempting to gain power and this is making the process of creating a governmental
structure very difficult. Elections in Somalia were last held during the tenure of Somalia's
socialist administration in the 1980s. Popular elections were planned for the parliament in
2012, but were not held. The provisional constitution of the country however does provide for
an electoral system. Hence the people in Somalia do not have to vote the party who rule
them, so currently Somalis belong to clans and sub-clans.

Economy

Despite the lack of effective national governance, Somalia maintains an informal

economy largely based on livestock, remittance/money transfer companies, and
telecommunications. Agriculture is the most important sector with livestock normally
accounting for about 40% of GDP and more than 50% of export earnings. Nomads and semi-
pastoralists, which are dependent upon livestock for their livelihood, make up a large portion
of the population. Livestock, hides, fish, charcoal, and bananas are Somalia's principal
exports, while sugar, sorghum, corn, and machined goods are the principal imports. Somalia's
small industrial sector, based on the processing of agricultural products, has largely been
looted and the machinery sold as scrap metal. Telecommunication firms provide wireless
services in most major cities and offer the lowest international call rates on the continent.
Mogadishu's main market offers a variety of goods from food to electronic gadgets. Hotels
continue to operate and are supported with private-security militias. Somalia's government
lacks the ability to collect domestic revenue, and arrears to the IMF have continued to grow.
Somalia's capital city - Mogadishu - has witnessed the development of the city's first gas
stations, supermarkets, and flights between Europe (Istanbul-Mogadishu) since the collapse
of central authority in 1991. This economic growth has yet to expand outside of Mogadishu,
and within the city, security concerns dominate business. In the absence of a formal banking
sector, money transfer/remittance services have sprouted throughout the country, handling up
to $1.6 billion in remittances annually, although international concerns over the money
transfers into Somalia currently threatens these services.

Civil unrest has been a primary obstacle to economic policy making and development.
Economic policy making has also been restricted due to the country's reliance on agriculture
that is vulnerable to climatic conditions. Prior to the recent conflict, about 60% of the
population in Somalia was pastoralists or agro pastoralists, and about 20% were
agriculturists. Except for a small number of Somalis who rely on fishing, the remainder of the
population was urban dwellers, employed as government workers, shopkeepers, factory
workers, and traders. Pastoralists raise camels, cattle, sheep, and goats. Agro pastoralists, rely
on a mixture of herding and farming. They usually have a permanent home in addition to
their portable huts. The Somali oil industry has been largely disrupted due to the political
unrest and the operating condition of the refinery in Mogadishu has been severely affected.
Agriculture accounts from nearly two-thirds of the GDP of Somalia. The principal food
crops, grown by small-scale farmers, are sorghum, corn, sesame, cowpeas, sugar cane, and
rice. Commercial crops are bananas, citrus (mainly grapefruit and lemons), vegetables,
cotton, frankincense, and myrrh. The growing trade connections that Somalia is creating with
the Middle East may help boost future growth. As we can see from figure 12, the GDP of
Somalia in 2010 is at the lower level and there is no data for the GDP of Somalia after 2011.
This means that the income of this country is very low. Besides from figure 13 we also can
know that most of the GDP of Somalia is come from agriculture. Mean that the government
in the country failed to improve other sector such as banking, manufacturing and so on.

Figure 12: GDP of Somalia (USD$ Billion)

Source: http://www.tradingeconomics.com/somalia/gdp-per-capita

Next in Somalia, the role of government only can be seen in the Central Bank of
Somalia, which is the official monetary authority of Somalia. The central bank responsible in
some matter that in terms of financial management, the process of assuming the task of both
formulating and implementing monetary policy.

Somalias economic freedom remains unrated due to a severe lack of reliable data
caused by ongoing political instability. The last time Somalia was fully graded and ranked
was in the 2000 Index when it received a score of only 27.8. Violence and political unrest
have prevented Somalia from developing a coherent and coordinated domestic marketplace.
The central government controls only part of the country, and formal economic activity is
largely relegated to urban areas like Mogadishu. Progress toward economic normalization is
continuing as the government takes back more land from the rebels. Lack of central authority
makes the rule of law inconsistent and fragmented, with different militias, authorities, and
tribes applying varying legal frameworks. Traditional customs, like Sharia law, have become
more entrenched. Corruption remains high, and a lack of transparency and formal
bookkeeping means that government revenues are easily embezzled. Establishment of
government control and security will be vital for fostering broad-based economic freedom
based on consistent rules and regulations.
 Tax system

The income tax rate in Somalia varies according to your level of earnings. This is the
portion of your taxes that is taken from anything you earn, and is currently not applicable or
unknown depending on your level of income. Permanent employers and contractor
management companies will often pay this for you as you earn (PAYE) and send the
remainder to you.

In addition to income tax, there is social security tax. This is to cover things like a
pension and any unemployment benefits. It requires contributions from employers and
employees. Social Security tax is not applicable or unknown. As with income tax, both
permanent employers and contractor management companies can handle this for employees.
The Somalia sales tax rate (which applies to purchases) is not applicable or unknown.

As in Somalia the authorities that help the government to collect the tax is actually the
local people. Based on a reports news Tax collecting a deadly job in Somalia, five taxmen
killed this year which is published in July 30, 2013 1:21AM. In this news Ali Haji, a tax
collector, say "Some of my colleagues were killed because of their work. Very many people
don't like our work. Furthermore, he also mentions that "In some places, if you go without
security escorts you're going to take risks. Thus from here we can know that the government
has lack of power to collect tax from the people. Because there is no authority that set up
mainly on collect tax.

Furthermore, Somalias central government lacks the ability to administer taxes or

provide basic services effectively. Little effective fiscal policy exists, although some duties
and taxes are collected. Most government expenditures are financed through aid. Warlords
and militias continue to collect levies from the population, particularly in the south of the
country

Conclusion

Somalia is a country that currently has no stable government where the state is being
rule by warlords and militias. Besides in Somalia there is no election since 1980 and the
electoral system is single member restrict. Next is the economy structure of Somalia, where
the economy of Somalia mainly depends on agriculture and the government has no power to
control the economy where the government less impose policy and only one government
authority which is the central bank the regulated the finance of the country. Besides, the state
economy runs by the clan and sub-clan. Where they plant the food themselves and sell it to
gain money from buyer without any government help. Next is the tax system in Somalia
where the government assigned a few people to help government to collect tax. But the
government does not have fully the power to tax people because some of the people can
refuse to pay to government tax collector and sometime the tax collector is being kills by the
people. Besides lack of power in tax people, the government also failed to provide security
for those tax collectors.

CONCLUSION FOR ALL THREE STATES

In this part we are going to make a conclusion by category the three states, which is
United Kingdom, Malaysia, Somalia into the respective state which is effective, weak, and
fail. First and foremost, as far as we concerned nation is very important to the people.
Because with nation people can live in prosperity where they can enjoy the economic
resources own by that nation. But nation cannot be function by itself, it required a
government to control it. So that why we need state, where there is a complete structure of
government that has the power to control the state. But not all state is consider effective, there
are some state that do not have government or have government but in a weak condition. So
now a question comes to our mind that why and what factor contribute to a successful or fail
state? Hence our task here is to identify the three state either is effective, weak or fail by
comparing their institutional choice. Institutional choice can be further divided into type of
government, electoral system, economy structure and also the taxation. This 4 type of
institutional choice is very important to develop a state.

Types of government, means the political system in the state. If the government of the
state is unitary form, there will be no separation of power and hence the power will be
centralized in one person and this may lead the country to tyranny. Just as Aristotle
explanation about the six type of government. Furthermore Lord Acton also said that power
tend to be corrupt, absolutely power corrupt absolutely. Next is the electoral system,
electoral system is very important to a state. Without election, it cannot help a rise of a
political leader. And without political leader, a government cannot be formed, policy cannot
be made and the power will be decentralized. Hence with the decentralization of power
everyone in the states also own power. They can control the economy of some area, they can
against the country law and even can control the military. Hence electoral system is important
to make the power to be not so decentralized by the rise of a political leader. In addition
economy structure, if a state has the power to control the states economy effectively. It can
help contribute to the development of the country where increase the GDP contribution and
also provide welfare to the people. Lastly, is the tax system, if states do not have the power to
tax the people, how the country gain income to help the country development? Hence tax
system also important to decide the state is considering effective, weak or fail.

From our analysis we can conclude that United Kingdom is an effective state. The
reason is because the type of government in UK is constitutional monarchy with a
parliamentary of government representing constituencies.UK is not administered by
politicians, but by bureaucrats, in a meritocracy where power is gained through skill,
performance, and loyalty to the nation and its policies. Hence it gains the legitimate form the
people. Next in term of electoral system, although the Conservative and Unionist Party won
almost every election but the government in UK has no power to control the Election
Commission. So from here the government of UK can maintain their transparency where the
EC is an independent unit. Furthermore, we discuss about the economy structure, In UK, the
government has almost fully power control over the economy where the government set up a
state enterprise to regulate firm in the country and also set up a state investment. With an
effective of management on the state enterprise and investment, UK able to improve their
other sector for example banking system to be more world class so that can contribute to the
growth of the gross domestic product (GDP). Lastly is the tax system, the government of UK
has set up and authority to collect tax from people. Hence the power to tax people is remain
in the government of United Kingdom.

Next we more on to Malaysia, in this analysis we consider Malaysia is a weak state.

In term of government, although it adopts the concept of constitution monarchy, but we can
find out that there is fusion of power in some matter between the legislation and executive.
Where this can make the power to be more centralized and may lead the country to tyranny.
Next is the electoral system, in Malaysia, the constitution recently granted the power to the
government to control the election committee. This can decrease the legitimate from the
people because the transparency of election cannot be maintained because there are some
powers to control the election. Furthermore in term of economy structure, Malaysia adopted
the concept of privatization. Where part of the economy ownership is on private sector.
Theoretically the private done a good job where they help to reduce government financial
burden but does they promise to take care the welfare of the people? The answer is No,
thus this can further larger the gap between the poor and rich people. In addition, tax system
is discussed. Malaysia also has almost full power to collect tax from people where (IRBM) is
one of the main revenue collecting agencies of the Ministry of Finance of Malaysia. IRBM
was established in accordance with the Inland Revenue Board of Malaysia Act 1995 to give it
more autonomy especially in financial and personnel management as well as to improve the
quality and effectiveness of tax administration.

Lastly Somalia we consider as a fail state in this analysis, in term of type of

government, Somalia currently has no stable government and many of the areas of the
country continue to be under self-rule with control held by local leaders since President Siad
Barre fled in 1991, leaving the country at the mercy of its numerous warring factions and
where clan or Islamic Syariah law rule. Hence without government the state cannot be
function well because there is no authority that has the power to regulate the economy of the
country as well as policy making and welfare protection to the people. Next is the electoral
system, Next in Somalia, elections in Somalia were last held during the tenure of Somalia's
socialist administration in the 1980s and there is one election is planned to do at 2012 but fail
to do it. Furthermore, the provisional constitution of the country however does provide for an
electoral system. In addition economy structure is discussed, where the economy structure in
Somalia is more likely to be a laissez-faire ( free market). Where the government has no
power or little power to control the economy and let the economy regulate itself by the theory
of invisible hand. Hence in term of state ownership, the government of Somalia only has
one central bank to regulate financial management.

Furthermore, in Somalia the government do not has the full power to tax the people where
there is no authority and even law to tax the people. The state government do assign some of
the people to help them to collect tax from people, but the security of these people is not
provided where the tax collector may be kill by the people. Because there is no law or even
authority that required the people pay tax, hence the people can refuse and even can kill the
tax collector.

In a nutshell, in this analysis we conclude that United Kingdom is an effective state,

Malaysia is a weak state, and Somalia is a fail state.