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It is often said that democracy is not so much about the building of new political institutions, but having the right kind of human agency operating within those institutions. Therefore, the most important thing in the process of democratization is the transformation of the attitude of the political actors in order to achieve noble goals in politics and economy. After all, what is the point of taking pride in a series of successful elections if, at the same time, there is a deteriorating quality of our law enforcement institutions?

Some millenia ago Aristotle considered democracy to be the worst political system. He understood democracy as rule by many, but in an irresponsible way. Different groups cared only about their respective interests at the expense of the well-being of society as a whole. If we look at the setbacks in new democracies, such as Thailand, the Philippines or our own country; Aristotle’s negative assessment was not entirely without merit. If political institutions, like parliament or political parties, are used as exclusive arenas for political bargaining, democracy loses some of its meaning.

The cost of the recent deterioration in political and bureaucratic institutions should not be underestimated. Unreliable law enforcement and corrupt bureaucracies are bad advertisements for Indonesian democracy. Unfortunately, the first months of President Susilo Bambang Yudhoyono’s second term have been characterized by this declining quality of bureaucratic institutions. How can Indonesia become a major economic power in Asia if our political leaders continue to waste their time and energy criminalizing each other in the media?

We just hope that both the chairman of the Golkar Party, Aburizal Bakrie, and Finance Minister Sri Mulyani can immediately stop their quarrel so it will not send negative signals to the markets. The ongoing investigation of the Bank Century scandal by the House special committee was never meant to be a political witch hunt. The investigation should be a search for the real story behind the bailout: what happened to the money?

As we get closer to the end of 2009, let all parties reflect on the tough challenges Indonesia will face in the years ahead. Asia has played a significant role in the recovery of the global economy. There will, however, be sharp competition among Asia’s major economies, such as China, Japan, India, Vietnam and Indonesia. We cannot realize our economic ambitions with the corrupt institutions we have.

Recent media reports that Indonesia is not prepared to implement the Asean- China Free Trade Agreement in 2010 are stoking fears that Indonesia will be disadvantaged. This is a clear indication of a gulf between our ambitions and the way we structure our economic policies and institutions in reality. This is precisely the difference between Indonesia and India, where democracy can also be messy and noisy. Yet India’s spectacular rise has surprised even industrial countries.

India has managed to create a perfect synergy among three important institutions: government bureaucracy, private enterprise and higher education. No wonder that in a relatively short period of time, India’s multinational corporations have become global players in information technology, steel and pharmaceutical industries.

Many people remain optimistic about Indonesia’s future, looking at this country as a glass half-full. But without clean government and responsible bureaucracies our democracy will be reduced to a pointless exercise of political freedom.

We need to have the right kind of political and economic institutions that produce a positive impact on the whole structure of our economic growth.

Clean and professional bureaucracy will attract foreign investment, which is inherently interested in our domestic market and abundant natural resources. The global market economy is no respecter of nation. If our economic competitiveness is low, the market will punish us like a father does his lazy son.

Last but not least, India’s experience has told us that an extraordinary economic success is the result of team work. Three strategic institutions— the government, the private sector and higher education— should go hand in hand to take this nation to a higher level. It is hard enough for us to face the external challenges, but if our leaders continue to fight against each other, it is the people who will suffer.

Aleksius Jemadu is acting dean of the School of Social and Political Sciences at Pelita Harapan University.