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Anwar was born in Cherok Tok Kun, a village on the mainland side of the northern Malaysian state of Penang to a hospital porter. He was educated at the Malay College Kuala Kangsar and the University of Malaya, where he read Malay studies.
In 1971, as a student, Anwar founded a Muslim students organisation, Persatuan Kebangsaan Pelajar Islam Malaysia (PKPIM). He was also elected President of the Malaysian Youth Council or Majlis Belia Malaysia (MBM).
In 1974, he was arrested during in relation to student protests against rural poverty and hunger. There were rumours at the time that farmers in the village of Baling were experiencing famine; however, they were never substantiated. Anwar was imprisoned under the Internal Security Act which allows for detention without trial. He spent twenty months in the Kamunting detention camp for political prisoners.
In 1982, Anwar, the founding leader of a youth Islamic organisation called Angkatan Belia Islam Malaysia (ABIM), shocked his liberal supporters by joining the United Malays National Organisation (UMNO), led by Mahathir who had become prime minister in 1981.
He moved up the political ranks quickly: his first ministerial office was that of Minister of Culture, Youth and Sports in 1983; after that, he headed the agriculture ministry in 1984 before becoming Minister of Education in 1986. It is worth noting that all Prime Ministers of Malaysia after the first have been Education Minister at one time or another.
Meanwhile, he also became more important in the party. In 1984, he was elected Leader of UMNO Youth and in 1986, became a Vice-President of UMNO.
In 1991 he became Minister of Finance. In 1993, he became Mahathir's Deputy Prime Minister after winning the Deputy Presidency of UMNO against Tun Ghafar Baba .
In the early 1990s, he was being groomed to succeed Mahathir bin Mohamad as prime minister. Mahathir frequently alluded in public to his 'father-son' relationship with Anwar; for several months in early 1997, Mahathir appointed Anwar to be acting Prime Minister while Mahathir took a two-month holiday. Towards the end of the 1990s, the 'father-son' relationship between Mahathir and Anwar began to deteriorate, triggered by their conflicting views on governance. Issues such as how Malaysia would respond to a financial crisis were often at the fore-front of this conflict.
During the Asian financial crisis in 19971997 was a common year starting on Wednesday (see link for calendar), and was designated the International Year of the Reef''. Events January January 3 NBC's Today Show Bryant Gumbel signs off for the last time January 8 Mister Rogers receives a star on t Anwar, in his capacity as finance minister, responded to the International Monetary FundThe International Monetary Fund IMF is an international organization responsible for managing the global financial system and for providing loans to its member states to help alleviate balance of payments problems. Part of its mission is to help countries (IMF) plan for recovery which meant a restructuring of the economy involving opening up to greater foreign investment and competition. He also instituted an austerity package that slashed government spending by 18%, cut ministerial salaries and deferred major investment projects. Large-scale infrastructure development projects known as "mega projects" were set back as well, despite being a cornerstone of Mahathir's plans for developing the nation. These measures aroused bitter opposition from Mahathir. It also angered many affected business figures some of whose business empires had developed through exclusive government contracts, cheap credit from public funds or commercial sources backed by government guarantees, non-transparent concessions and various other forms of rent seekingIn economics, rent seeking takes place when an entity seeks to extract uncompensated value from others by manipulation of the economic environment often including regulations or other government decisions. The word rent in this sense is not directly equiv. In particular, Tun Daim Zainuddin , the powerful Treasurer of UMNO and Executive Director of the NEAC, owned large holdings of Malaysian banks and other businesses that would be vulnerable to such actions. Daim was a close confidante of Mahathir (both being from the same town) had been the Finance Minister before Anwar. Daim was targetted by Anwar's proxies as a means to discredit Mahathir.
Although many Malaysian companies faced the threat of bankruptcy, Anwar declared: "There is no question of any bailout. The banks will be allowed to protect themselves and the government will not interfere." Anwar advocated a free market approach, sympathetic to foreign investment and trade liberalisation, whereas Mahathir favored currency and foreign investment controls, blaming unchecked speculation, George Soros and an international Zionist conspiracy (among other things) for the shrinking economy.
In 2004 Mahathir admitted that 'I have always been able to stand up against the people who challenge my leadership and I have won. And I believe that even against Anwar, I would have won'. He stated at the same time that he had sacked Anwar for moral reasons and the sacking had nothing to so with disagreements over IMF issues. [Straits Times, Singapore 12Oct2004]
In 19981998 was a common year starting on Thursday (see link for calendar), and was designated the International Year of the Ocean''. Events January January 1998 A massive ice storm, caused by El Nino, strikes New England, southern Ontario and Quebec, resulting Newsweek magazine named Anwar the "Asian of the Year." That year, matters between Anwar and Mahathir came to a head around the time of the quadrennial UMNO General Assembly, in June. The Youth wing of UMNO, headed by Anwar's associate, Ahmad Zahid Hamidi (also a member of ABIM), gave notice that it would initiate a debate on 'cronyism and nepotism'. In light of the recent fall of President SuhartoGeneral Suharto (born June 8, 1921) was an Indonesian dictator and military strongman. He was the second President of Indonesia, from 1967 to 1998. During the 1980s, Suharto was an adherent of the concept of Asian values, but the Asian financial crisis of of Indonesia, known for embezzling money from the Indonesian treasury, this was widely interpreted as a proxy attack on Mahathir and his tenure as Prime Minister. The response was swift, Mahathir issued lists of 'cronies' who had benefited from government share allocations and privatizations. To the chagrin of Anwar and his allies, several of them were on the list, including Anwar and Zahid.