Brunei’s Aim for Greater Influence
A welfare state since before its independence, Brunei has possessed a unique political culture even on the standards of the Association of Southeast Asian Nations (ASEAN), as it has relatively excelled in preserving the interest of most citizens despite its solid top-down approach to governance.
In the World Government Effectiveness Index 2021, Brunei ranked 19 worldwide in terms of government effectiveness. On average, Brunei also scored considerably high in nearly all of the survey’s indicators compared to its neighbours in the East Asia Pacific region and those in Europe and Central Asia. This shows there is an international recognition of Brunei’s governance practice.
On the regional level, Brunei ranks first as a minor power country in Asia thanks to its diplomatic influence during its 2021 ASEAN Chairmanship and its engagement on global issues such as the Myanmar coup and climate change.
As ASEAN Chair, Brunei announced that it would host ASEAN Centre for Climate Change, which is currently awaiting approval from other countries in the regional bloc. The Centre – aimed to be the knowledge hub, strategic coordinator and integrator of climate action initiatives and activities in the ASEAN region – has propelled Brunei into a critical role in mediating climate change issues in ASEAN, especially in the agenda of Sustainability. Brunei has set aside US$2.1 million to fund and maintain the Centre, which will also receive support from New Zealand of NZ$500,000.
Given this fact, Brunei can now be considered an important player in regional climate change governance at local and regional levels. It comes with significant challenges and risks but also opportunities.
Overcoming challenges is necessary to prove Brunei’s capabilities as a small nation and break through its internal challenges by capitalising on its global influence for national agenda, such as its economic diversification efforts and, at the same time, maintaining the status quo as a country that hosts a potentially important ASEAN centre that looks into ongoing climate crisis.
Sustainably Influential
It is important to note that framing “sustainability” in this article goes beyond environmental sustainability and includes social and economic sustainability, as the discourse is often fringed towards ecological protections. There is an assumption that tackling environmental targets rather than social and economic targets is easier due to the complexity of the issues sometimes.
Realizing other aspects of “sustainability” needs a reframing of the issue that incorporates a more holistic view of the concept, which is promoting environmental sustainability as a way to ensure the survival of our society and economy, which are inherently dependent on natural resources. The intertwined relations of all three aspects should not be separated by any means and it should be realized by all individuals and institutions on how they would build a discourse on “sustainability”.
Regarding economic sustainability, Brunei is currently diversifying its economy beyond oil and gas sector in order to achieve a more resilient business ecosystem. The abundance of its oil and gas reserve as well as a small population provide plenty of welfare for its well-content residents. In 2021, the oil and gas sector (both upstream and downstream) contributed to more than 50% of its entire gross domestic product (GDP).
Until 2014, the Bruneian government has consistently had a fiscal deficit due to an oversupply of crude oil in the global market, negatively affecting the country’s overall GDP and government revenue. This economic pressure has pushed the government to look outside and push for private sector development or economic diversification, as communicated by the government through its various iterations of the National Development Plan. This also ensures it can provide a relatively same level of benefit to its citizen and maintain the political stability it can enjoy for decades.
One of the ways Brunei could maintain its status quo is by adopting the green economy. Green economy recognizes that the economic, social and environmental systems are complementary and not in conflict with each other. It is complementary to each other and mutually reinforce these three areas of sustainability’s bottom line. By embracing the green economy, Brunei is taking an integrated approach to foster its economic development, which aligns with its existing essence of a whole-of-nation approach to development, where national development requires all actors in the country to contribute to the systemic changes envisioned by the government.
According to World Bank data, the Brunei forest area has remained intact at around 72% between 2010 and 2020. However, it does not indicate that Brunei is in any way an environmentally-friendly nation, as where this high coverage is only possible as a result of its abundant oil and gas wealth.
However, the fact that Brunei struggled with fiscal deficit in 2014 but managed to increase its GDP afterwards – without expanding its reliance on oil and gas which could result in environmental degradation – suggests that Brunei can steer around systemic challenges and embark on economic diversification. This shows Brunei has the ability to build a more resilient business ecosystem that does not depend on its oil and gas wealth.
This small economic success, which has involved several economic experimentations should be studied extensively and be shared regionally. Hosting the ASEAN Centre for Climate Change will provide Brunei with an outfit to share its economic wisdom regionally. At the same time, it would increase its domestic knowledge capacity through the Centre’s engagement with local think tanks such as the Centre for Strategic and Policy Studies (CSPS), the Universiti Brunei Darussalam Institute of Policy and Studies (IPS), as well as Council for Research and the Advancement of Technology and Science (CREATES). This think tank ecosystem could collaborate to develop mechanisms or strategies for developing countries to tackle the climate crisis and adopt a more sustainable economy.
Furthermore, the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA) is another platform through which Brunei could exercise its regional influence.
Brunei is the only country in the BIMP-EAGA region whose entire territory is situated within the growth area. By using that geographical advantage, Brunei’s adoption of Sustainability-based policy – inspired by the knowledge gained from the upcoming ASEAN Centre for Climate Change – could improve its domestic outlook and serve as basis to inform and influence neighbouring Malaysia, the Philippines and Indonesia on sustainable development.
This is especially pertinent as Indonesia’s upcoming new capital Nusantara could potentially emerge as Brunei’s competition in drawing investment, especially in the field of green economy. Brunei thus must take and clarify its position in this matter today, before it is too late.
Political Culture and Good Governance
Brunei’s political culture, too, is an advantage on the social side of the spectrum in promoting sustainable development. Brunei’s whole-of-nation approach to development functions well due to the continuous welfare and benefits enjoyed by the subject of the states, resulting in a politically stable environment that is vibrant for the emerging sustainable business environment.
Leveraging on this stability and Brunei’s historically top-down approach to governance, implementing sustainable public policy shall be strived for and included in its good governance objectives. The ASEAN Centre for Climate Change could significantly influence other ASEAN Member States (AMS) on these potentially excellent governance practices, such as transparency which is a component in sustainability as well.
Brunei in itself could not easily influence the complex political structures and differences of each AMS. However, the contribution by Brunei on sustainability knowledge and practice – again facilitated by the ASEAN Centre for Climate Change – would be incredibly beneficial for the people of ASEAN. The Centre could be a new forefront instrument to emphasise ASEAN’s commitment to combat climate crisis in the region which affects every aspect of the economic and social layers.
Brunei’s recent introduction of open consultations between the government and the grassroots could be a good example in boosting transparency. These include the Youth Townhall series or policy consultation the government has with Brunei Darussalam National Climate Change Policy (BNCCP). Various topics are freely discussed with the public, providing a much more positive understanding of its whole-of-nation approach to governance, incorporating people’s ideas in state planning and policy formulation, especially in sustainability.
As indicated in initiatives like the above, Brunei has already practiced some forms of good governance principle (participatory and consensus-oriented) but there is still some space for growth. BNCPP, for instance, does not produce reports from the consultation process it had before the policy was formally introduced to the public. This is important to ensure the public can assess to what extent the policy considered public opinion in its formulation and the depth of the procedure before it is introduced and adopted as a law.
Hosting this ASEAN Centre for Climate Change would compel Brunei to embrace the positive principle of sustainability like transparency. It is an opportunity Brunei should adopt to transition its economic state away from oil and gas, to build an attractive green investment destination and resilient economy as well as to maintain a stable political environment.
Conclusion
Overcoming these challenges is crucial for Brunei to establish regional influence and contribute to sustainable development in ASEAN. Brunei’s unique political culture and top-down governance have enabled it to excel in preserving the citizens’ interests. Its high scores in good governance indices and recent engagement in regional and global issues have solidified its role in mediating climate change in ASEAN. Brunei’s push for sustainable development – such as by hosting the ASEAN Centre for Climate Change – could benefit it domestically as it would spur economic diversification and strengthens its claim of internal political stability. Moreover, embracing sustainable development would also leverage its position in ASEAN and build its reputation among the AMS, hence elevating Brunei’s influence in the region.
