Brunei is a small but wealthy country located on the northern shore of the island of Borneo in Southeast Asia. It has a population of less than 500,000 and is ruled by the Sultan, making it a constitutional absolute monarchy. While Brunei is not officially a socialist country, it exhibits some characteristics of a socialist society, providing its citizens with extensive welfare benefits. The country's wealth is derived from its substantial oil and natural gas reserves, which allow the Sultan's government to finance social programs such as free education, healthcare, and housing subsidies. This has led to Brunei being referred to as the richest little country and having one of the highest standards of living in the world.
Characteristics | Values |
---|---|
Population | 455,858 as of 2023 |
Official Language | Malay |
State Religion | Islam |
Government | Constitutional absolute monarchy ruled by the Sultan |
Legal System | Fusion of English common law and jurisprudence inspired by Islam, including sharia |
Education | Free |
Healthcare | Free |
Housing | Free or subsidised |
Income Tax | None |
GDP per capita | 9th in the world |
Economic Growth | 56% between 1999 and 2008 |
HDI Ranking | 2nd highest among Southeast Asian nations |
Oil Production | 167,000 barrels per day |
Natural Gas Production | 25.3 million cubic metres per day |
What You'll Learn
Brunei's standard of living
Brunei is a tiny state with one of the world's highest standards of living, thanks to its bountiful oil and gas reserves. The country's wealth is derived from its extensive petroleum and natural gas fields, which make up 99% of its exports. Brunei's standard of living is so high that it has been described as a welfare state.
The country's standard of living is financed through its oil and gas wealth, with the government paying for education, healthcare, and most other living expenses of its citizens. Bruneians pay no income tax, and the Sultan regularly allocates land lots and housing to deserving residents under various government schemes. The country's GDP increased by 56% between 1999 and 2008, and it is ranked ninth in the world by gross domestic product per capita at purchasing power parity.
The cost of living in Brunei is relatively low compared to other countries. For example, the cost of living in Brunei is, on average, 27.0% lower than in the United States, and rent is 56.0% lower. A family of four's estimated monthly costs are 3,004.7$ (3,970.5S$) without rent, while a single person's estimated monthly costs are 826.3$ (1,091.9S$) without rent.
Brunei has a population of less than 500,000, and its society is arguably the closest any nation has gotten to a total welfare state. The country provides free or heavily subsidised housing, healthcare, and education for its citizens. It ranks "very high" on the Human Development Index (HDI), second only to Singapore among Southeast Asian states.
However, Brunei's standard of living is largely dependent on its oil and gas wealth, and the country will likely face serious difficulties when these resources begin to run out. In addition, Brunei's standard of living has been impacted by corruption and low oil prices in recent years.
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The country's wealth and economy
Brunei's economy is almost entirely dependent on its exports of crude oil and natural gas, with revenues from the petroleum sector accounting for over half of its GDP. Brunei is the third-largest oil producer in Southeast Asia, producing around 180,000 barrels per day, and the ninth-largest producer of liquefied natural gas in the world. The country's wealth is derived from its extensive petroleum and natural gas fields.
Brunei's gross domestic product (GDP) soared with the petroleum price increases of the 1970s, reaching a peak of $5.7 billion in 1980. However, its GDP declined in subsequent years due to sharply lower petroleum prices and voluntary production cuts. In recent years, Brunei's GDP growth has been modest, with a 3.5% increase in 1996, 4.0% in 1997, 1.0% in 1998, and an estimated 2.5% in 1999. The country's per capita GDP is high, and it ranks ninth in the world by gross domestic product per capita at purchasing power parity.
The petroleum industry generates more than half of Brunei's GDP, although it employs a very small portion of the labour force. The country's energy is generated almost entirely from fossil fuels. Oil was first produced in 1929, while the natural gas industry was developed after the discovery of large deposits in the 1960s. Intensive exploitation of natural gas in the 1970s included the construction of a liquefaction plant, and liquefied natural gas (LNG) has since become a major source of export earnings. Brunei is the fourth-largest exporter of LNG in the Asia-Pacific region.
Brunei's substantial income from overseas investment supplements its income from domestic production. The country's substantial foreign reserves are managed by the Brunei Investment Agency (BIA), an arm of the Ministry of Finance and Economy. The BIA's guiding principle is to increase the real value of Brunei's foreign reserves while pursuing a diverse investment strategy. The government provides for all medical services and subsidises food and housing.
Brunei's leaders are concerned about the potential impact of increased integration into the world economy on internal social cohesion. They have taken steps to diversify the economy away from oil and gas, with limited success. The government has encouraged the development of other sectors, such as agriculture, fisheries, tourism, and financial services.
Agriculture, once a mainstay of Brunei's economy, declined in importance after the discovery of petroleum resources. Recognising the need to reduce dependence on food imports, the government embarked on a program to develop the agricultural industry. By the early 21st century, Brunei had become self-sufficient in poultry and egg production and was approaching self-sufficiency in vegetable production. However, locally grown rice still falls short of domestic needs.
Brunei is among the largest consumers of fish per capita in the world. To curb imports, the government implemented programs to stimulate local fisheries, and within a decade, domestic fish production exceeded imports. Overfishing has become a growing concern, despite the government's emphasis on sustainable development.
The country's trade is heavily dependent on imports, as only a few products other than petroleum are produced locally. Singapore is the largest point of origin for imports, accounting for 25% in 1997, followed by Japan and Malaysia. Brunei's principal trading partners are in Asia and include Japan, Singapore, Malaysia, China, South Korea, and India.
Brunei's economy is a mixture of foreign and domestic entrepreneurship, government regulation and welfare measures, and village traditions. The country has a constitutional absolute monarchy, with the Sultan, Hassanal Bolkiah, as the head of state and head of government. The Sultan provides a welfare state for his citizens, with free or heavily subsidised housing, healthcare, and education. As a result, Brunei has one of the world's highest standards of living.
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Brunei's political system
Under the 1959 constitution, the Sultan is the head of state with full executive authority and serves as the state's prime minister, finance minister, and defence minister. The country's unicameral legislature, the Legislative Council, is consultative and its members are appointed by the Sultan. Brunei has a parliament, but there are no elections; the last election was held in 1962.
The country's legal system is based on English common law, although Islamic law (sharia) supersedes this in some cases. There are no political parties in Brunei, and the country has been ruled by the same family for the past 600 years.
Brunei's political stability is maintained by the House of Bolkiah, which provides a welfare state for its citizens, with free or heavily subsidised housing, healthcare, and education. The country has one of the world's highest standards of living, financed through its massive oil and natural gas wealth.
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The country's history
Brunei, officially Brunei Darussalam, is a small country in Southeast Asia, situated on the northern coast of the island of Borneo in the South China Sea. It is one of the smallest yet richest states in the world, with a population of around 450,000 to 500,000 people. The country has been ruled by the same family for the past 600 years and is currently led by Sultan Hassanal Bolkiah, one of the richest men in the world.
Brunei was founded around AD 1400 by Awang Alak Betatar, later known as Sultan Muhammad Shah, who is considered the first Muslim ruler of Brunei. During the reign of Sultan Bolkiah from 1485 to 1528, the Bruneian Empire was at its peak, controlling most of Borneo, as well as parts of the Sulu archipelago and islands off the northwestern tip of Borneo.
In the 19th century, the Bruneian Empire began to decline, and the Sultanate ceded territories to European powers. In 1846, Brunei was reduced to its present size after ceding the island of Labuan to Britain. In 1888, Brunei became a British protectorate, and a British resident was assigned as colonial manager in 1906.
Oil extraction began in Brunei in 1929, and it soon became the country's primary source of wealth. During World War II, from 1941 to 1945, Brunei was occupied by Japanese forces. After the war, a new constitution was written in 1959, declaring Brunei a self-governing state, with foreign affairs, security, and defence remaining under the responsibility of the United Kingdom.
In 1962, a small rebellion known as the Brunei Revolt erupted against the monarchy and Brunei's proposed inclusion in the Federation of Malaysia. With British assistance, the revolt was suppressed, and it influenced the Sultan's decision to opt out of joining Malaysia. This rebellion is considered one of the first stages of the Indonesia-Malaysia confrontation, which lasted from 1963 to 1966.
On January 1, 1984, Brunei gained full independence from the United Kingdom, though its official National Day, celebrating independence, is traditionally held on February 23. Since independence, Brunei has been an absolute monarchy with a unicameral legislature, the Legislative Council, which is appointed by the Sultan. The country's wealth continues to be largely derived from its extensive petroleum and natural gas fields.
In recent years, Brunei has faced international criticism for its adoption of strict Islamic Sharia law, which allows punishments such as stoning for adultery and amputation for theft. Despite this, the country maintains close relations with several international organisations and is a member of the United Nations, the World Trade Organization, the East Asia Summit, the Organisation of Islamic Cooperation, the Non-Aligned Movement, the Commonwealth of Nations, and ASEAN.
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The country's culture
The culture of Brunei is predominantly Malay, reflecting its ethnic makeup, with heavy influences from Islam. Brunei is one of three countries located on the island of Borneo in Maritime Southeast Asia. It has a population of around 450,000, of whom approximately 180,000 reside in the capital and largest city, Bandar Seri Begawan. The official language of Brunei is Malay, and Islam is the state religion. The country's culture has been influenced by its demographic composition: more than two-thirds of the population are Malay, with the remainder consisting of Chinese, Indians, and indigenous groups such as Murut, Bisaya Brunei, Brunei Dusun, and Kedayans.
Brunei's culture has been shaped by several religious periods, including animism, Hinduism, and Islam, which is the current official religion. The social beliefs and customs of Brunei are largely influenced by Islamic teachings, which promote conservative behaviour and modest dress among women. For instance, women are expected to cover their bodies fully in public, with only their hands and face exposed. Additionally, eating and drinking while walking is considered impolite, and it is customary for men to wait for a woman to offer her hand before shaking it.
The arts in Brunei encompass various forms, including painting, architecture, jewellery, textiles, metalwork, and basketry. The government actively promoted art in the mid-20th century, leading to increased art production and sales. Women typically work with textiles and beads, while men tend to focus on metalwork. Brunei is renowned for its silver ornaments and fabrics dyed in the batik style.
Bruneian cuisine is an essential aspect of the country's culture, often bringing people together. Over time, the dishes served in Brunei have been influenced by the culinary practices of neighbouring countries and immigrant communities. As a predominantly Islamic country, Brunei prohibits the consumption of certain foods and drinks, such as pork and alcohol. Rice or noodles are staple components of almost every dish, typically served with vegetables and meat. The national dish of Brunei is 'ambuyat', a sticky dough made from the starch of the sago palm tree, shaped into a ball and dipped into various sauces.
Music and dance are integral parts of Bruneian culture, although Islamic practices do place some restrictions on these art forms. Traditional music is often accompanied by specific dance styles, and several instruments are used, including gongs, coconut shells, rebana tambourines, and dombak drums. One popular music and dance combination is the 'Aduk Aduk', performed by children wearing warrior clothing to celebrate birthdays and the end of the harvest season. Another example is the 'Jipin' performance, originally from Malay culture, where a group of six men and women use percussion instruments and the gambus dan biola, a stringed instrument.
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