Malaysia's Prime Minister, Dr Mahathir Mohamad, may be best known outside his country for erratic attacks on free capital markets and acting as the self-appointed spokesman for the developing world.

But inside Malaysia he is still associated most with creating a middle-income country during his two decades in power, and avoiding the ethnic turmoil that has occurred in neighbouring nations.

That essentially positive image played a big part in the return of his National Front coalition Government at the last election, despite unprecedented public dismay over the treatment of his one-time protégé, Datuk Anwar Ibrahim.

But having become Asia's elder statesman and with some considerable achievements behind him, Dr Mahathir appears intent on destroying his record before he leaves the political stage. Last week's arrest of several opposition figures turned the clock back a decade to 1987, when many dissident political figures were arrested under the cover of threatened ethnic unrest. This imposed a long period of reserve on opposition politics.

Indeed, last week's action is even more significant, given Malaysia's economic development since 1987, the lack of ethnic unrest there now and the advance of more democratic attitudes across much of Asia.

In analysing the Malaysian crackdown, it is worthwhile recapping how much change has occurred across the rest of Asia, with democracy strongly reaffirmed or introduced to South Korea, Taiwan, the Philippines, Thailand and Indonesia.

There is a forlorn repetitiveness about the Malaysian arrests. The man once seen as the soft face of the United Malays National Organisation, Datuk Abdullah Badawi, has taken over the Home Ministry which controls the police from Dr Mahathir in a sign that he is the anointed successor.

The arrests have blooded him in one of the thuggish traditions of Malaysian politics using laws left over from the British period to strike fear into the opposition.

The arrest of prominent lawyer Mr Karpal Singh, who represented Datuk Anwar, continues perhaps the most disturbing political trend of recent years the steady degradation of the judicial system. In this instance, a lawyer's ability to defend his client fearlessly is being called into question.

The arrest of the editor of the Muslim newspaper Harakah, Mr Zulkifli Sulong, underlines another major difference between Malaysia and its more developed Asian neighbours; its media has always been more beholden to the Government. Harakah should be a beacon for the rest of the Malaysian media in the way it has turned itself from a moribund political organ into a lively and relevant publication.

Last week's arrests are much less extensive than those in 1987 and may be more intended to warn dissident members of UMNO, rather than the official or public opposition, from seeking change.

This underlines another disturbing trend. UMNO has long filled the void in Malaysia's official public politics by allowing a vigorous internal democratic debate. But in Dr Mahathir's twilight years it has become subject to constant manipulation by party leaders to prevent genuine elections and debate.

Datuk Abdullah was effectively appointed to the party's number two position recently by virtue of his deputy prime ministership, even though he has not been elected to either position. Even UMNO members should be embarrassed by this constant manipulation.

Dr Mahathir's most positive legacy has been his ability to discourage religious tensions by growing the cake and sharing it more. But he now seems inclined to inflame tensions by driving the opposition towards more radical Islamic positions in the hope that that will encourage non-Muslims and more secular Muslims to stick with him.

His vicious campaign against Datuk Anwar has tended to encourage opponents to use the Muslim religion as a shelter from intimidation. Last November saw a multi-religious and multi-ethnic coalition campaign under the leadership of Datuk Anwar's wife, but it was the strongly Muslim Party Islam which won the most support, including control of two State governments.

Dr Mahathir has now fostered a particularly volatile political climate, with some of his Malay vote lost to a potentially radical Muslim party and secular opposition groups under assault from the police.

It is time for the more enlightened members of UMNO to realise they are embarked on a downward spiral with the return to the politics of the Special Branch. They should hold a genuine election this year and find a new leader for the future.