Oddly enough, I have lived there for a year as well.
I agree that the government is incompetent, partly because of cronyism and largely because of terribly applied affirmative action.
However, I did think that the enormous international support combined with international pressure would have helped mitigate this. They seem to respond well to international pressure - I always believed that most of their best achievements (of which there are a few) have come as a result of the perpetual pissing contest with neighbouring Singapore (not that I am sure Singapore even cares!).