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Wednesday, 20 April 2011

Corruption: The biggest threat to developing economies

By Geoff Colvin, senior editor at large
 



FORTUNE -- "We're thinking of pulling out of Brazil," the CEO of a large American corporation told me a week ago. The company has been operating there for a few years, doing several million dollars of business. The problem? A series of court judgments so inexplicable, and so crushingly expensive, that the CEO doubts his ability to manage the business. He doesn't see how the rulings can be honest -- even former President Luiz Lula da Silva called Brazil's judiciary a "black box" that's "untouchable" -- and if the system doesn't work, this CEO is bailing out.



This is corruption, a problem we'd rather not think about that now threatens the ascension of developing countries into the top tier of world economies. Given its history, optimism on the subject would be foolish. But while the media and Wall Street focus on more tractable issues like inflation and exchange rates, world leaders seem perfectly clear on the greatest threat to the future of the BRICs and other emerging economies. Corruption is the "biggest threat to China," Premier Wen Jiabao told the National People's Congress in March. When U.S. Vice President Joe Biden visited Russia recently, he cited corruption as the No. 1 impediment to better economic relations and pointedly mentioned Sergei Magnitsky, a lawyer who died in custody in 2009 after accusing the police of corruption.

The Rakyat knows the truth:


Selepas Tsunami (After the Tsunami) from Pusat KOMAS on Vimeo.

http://www.africaeconomicanalysis.org/articles/gen/corruptiondikehtm.html
A warning to us in Malaysia!

The problem is not just the petty palm greasing that's common worldwide, though that has its own corrosive effects. Developing-market corruption has reached staggering dimensions. India's telecom ministry apparently siphoned $30 billion from various projects over the past few years. A Russian activist posted online documents apparently showing a $4 billion fraud in a state-run company's trans-Siberian pipeline project. In China a minister overseeing the new high-speed-rail network is accused of skimming $152 million (and maintaining 18 mistresses). The threat is broader than it may seem: Corruption discourages the investments needed for economic progress. In India "high-level corruption and scams are now threatening to derail the country's credibility and [its] economic boom," says a report from KPMG.

The societal effects are subtler and arguably worse. Initiative and ambition shrivel: Why try hard when effort isn't the source of success? Respect for authority evaporates. Anger and resentment build, especially as a society becomes richer and the gulf between ordinary citizens and the officially tolerated crooks grows wider. When Premier Wen declared corruption the biggest threat to China, he wasn't talking about its effect on foreign investors; he's worried about "social stability." He knows that while massive corruption isn't the only grievance of the revolutionaries in North Africa and the Middle East, it's a big one.

Many people shrug at corruption because they figure it's eternal and incurable. Not so. England was deeply corrupt in the 17th century, Sweden in the 19th, notes professor Michael Johnston of Colgate University, a corruption expert. Singapore and Hong Kong virtually eradicated corruption in a generation. Still, reform is extraordinarily hard, he says, especially in big economies where "huge stakes are on the table." Reform "can degenerate into political payback" by the reformers. Where to begin? "One of the best predictors of whether a society will do well on corruption is the strength of property rights," Johnston says. "That's not a bad place to start."

An insidious feature of corruption is that it's hard to talk about. I can't identify the CEO who's thinking of leaving Brazil because doing so could imperil his company's ability to operate there. More generally, accusing people in power is inherently dangerous. Graft operates in the dark. So, like the man looking for his keys under a lamppost not because he lost them there but because the light is better, we focus on economic issues that are rich with statistics and susceptible to math. But we're missing a giant danger. It's naive to think the recent official attention to corruption will amount to much. If it doesn't, the progress of the emerging economies could turn ugly.  To top of page

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Biting demand over dog attack; keep stray dogs off the street!






Victim’s hubby wants RM88,000 paid to SPCA as ‘compensation’

By S. ARULLDAS north@thestar.com.my

NIBONG TEBAL: The husband of the dog bite victim has demanded that RM88,000 be donated to the Society for the Prevention of Cruelty to Animals (SPCA).

Dr Lim Ching Syong, 51, through mediators had told the German Shep-herd owner to pay the amount, which signifies fortune and good luck to the Chinese, to the SPCA or face legal action.

“I do not want to accept the dog owner’s offer to settle my 43-year-old wife’s hospital bill, but I want the money to be paid to the SPCA so that abandoned and stray animals could be taken care of.

“I will not compromise with the dog owner as he had been told many times to chain up his pets,” he told reporters at a press conference after his wife Lee Boon Chen lodged a report at the Simpang Ampat police station yesterday.

Also present was Seberang Prai Municipal Council (MPSP) councillor Francis Ong Koon Liak.

The 16-month-old black German Shepherd had allegedly attacked the housewife when she took her pet Shih Tzu to a playground near her house in Taman Bukit Tambun here.



Lee, who was admitted to a private hospital in Bukit Mertajam following the incident on Friday, was discharged on Monday with a bill of RM6,500. She received 12 stitches to close the wounds on her chest.

She said she was still traumatised by the attack, adding that this would take her a long time to recover.
“The owner was accompanying two German Shepherds when one of them attacked me.

“Fortunately, two women with sticks came to my rescue and managed to chase the dog away. I do not blame the dog at all, it is the owner who should be held responsible,” she said in between tears.

Ong, who advised pet owners to obtain licences for their dogs from the MPSP, said pet dogs should always be chained up and not allowed to run free to prevent such incident from recurring.

The German Shepherd has since been taken into custody by the state Veterinary Department for observation. Its behaviour would be noted and the dog also checked for symptoms of rabies such as foaming at the mouth.

The dog will be returned to the owner after 10 days if there’s no sign of the disease.



Council: Keep your pet stray dogs off the streets

By CHRISTOPHER TAN christan@thestar.com.my

GEORGE TOWN: People who take in stray dogs as pets should confine them or face the possibility of the animals being shot or put to sleep.

A spokesperson from the Urban Services, Public Health and Licensing Department said that under the council’s dog licensing by-laws, the council could take action by shooting stray dogs or putting them to sleep if they were found roaming the streets and if there were complaints from residents.

“It is not a problem if people want to take in stray dogs as pets, but these dogs should be confined to the house compound and not cause a nuisance in the neighbourhood,” the spokesperson said.

She was commenting on a complaint to The Star by a college student who was unhappy with several council workers who had removed a six-year-old stray dog and her puppy from his home in Jalan Sungai Emas, Batu Ferringhi, on April 11.

K. Keshure, 19, said both dogs were outside his house when the workers took them away.
He claimed that he had gone to the council to lodge a complaint but was told the dog and the puppy, believed to be three months old, were causing a nuisance in the neighbourhood.

“How can the council take action based on this because I cannot believe that a three-month-old puppy could harm anyone?” he asked.

The council spokesperson said the council workers had gone to the house following complaints that the dogs were chasing motorists in the neighbourhood.

Upon checking, the spokesperson confirmed that both dogs were put to sleep on the same day.

“We are also sure that the puppy was more than three months old as the workers had tried to fit it into a cage made for puppies that age but it was much bigger.

“We would have definitely not put the puppy to sleep if it was three months old or less but sent it to the SPCA (Society for the Prevention of Cruelty to Animals),” the spokesperson said.

SPCA administrator Lily Leng when contacted said dogs which are three months old and above should have a licence.

“The authorities have the right to act if there are any complaints of stray dogs roaming the streets,” she said.

Tuesday, 19 April 2011

Malaysians of differing global views



CERITALAH By KARIM RASLAN newsdesk@thestar.com.my



Many Malaysian Chinese have aligned themselves with international trends and developments, especially as Mandarin has been transformed into a global standard challenging the English language.

AS the results of the Sarawak election trickled in on Saturday evening, it became clearer that nothing much was going to change. A solid Barisan Nasional government was returned, with Tan Sri Abdul Taib Mahmud still in control.

Despite the early tweets and SMSes which flew around town implying Pakatan Rakyat was en route to forming the government, Barisan held on to its two-thirds majority, charging in over the last week, thanks to Prime Minister Datuk Seri Najib Tun Razak leading the campaign on the ground.

However, the victory confirmed one trend – racial polarisation, especially in the political sphere, is on the rise. Support for Sarawak’s Chinese party, SUPP, collapsed as the DAP made a near total sweep of the urban seats.

Of course, Malaysia has always been more an amalgam of tribes and peoples rather than a unified citizenry. We’ve retained our various ethnicities while also being Malaysian.

However, now the differences – especially across the racial divide – are becoming more pronounced, and there is a growing reluctance of the non-Malays to live with and accept Barisan’s version of the “social contract”.

Whether we realise it or not, the gap between us – especially the Malays and the Chinese – is steadily widening, despite our ability to still sit down and talk with one another over lunch or dinner, discussing heated issues such as education and corruption.

However, the common ground is fast disappearing, so much so that when we do talk – and I mean heart-to-heart – many in the Malay community are bewildered and exasperated by the seeming recalcitrance of the Chinese community.

Indeed, I’ve been asked many, many times: “What do the Chinese really want?”

Normally, I find myself answering by saying that I think it’s about dignity, equality and belonging.

Generally, I’ll add that the issues of language and religion will become less heated when we all share the same level of rights.



However, this is not a popular message and I can assure you that it’s difficult for many in the Malay community to accept such a proposition. Luckily, I’m not a politician.

More often than not, I find myself citing the example of the Indonesian Chinese and how, since having been given equal rights, they’ve become extremely proud of being Indonesian.

So what’s behind the hardening of the lines? Why are we drifting apart? Is there a way of bringing the communities back together once again?

First off, we need to acknowledge the extent of the gap between our different world views.

On the one hand, there is the conventional Malaysian Malay perspective which has been shaped by recent political history.

May 13 and the NEP are its totems, and these views have hardened over the years.

On the other hand, many Malaysian Chinese have aligned themselves with international trends and developments.

Mandarin has been transformed into a global standard – arguably challenging the English language’s hegemony, which has made the Chinese community far less isolated and more connected globally.

To my mind, there are parallels between the Malaysian Chinese’s retreat from Barisan and these differing mindsets.

They also suggest a fundamental shift in mood within the community – a shift which has been prompted by global events and sense of confidence arising out of the same events.

In the past, there was a sense of having no options and no alternatives – Malaysia, for better or for worse was stable, secure and safe.

However, times have changed and so have perceptions. It’s not that Malaysia is any less attractive, it’s just that there are now more alternatives.

Separately, the same story also applies for Malaysia as an investment destination – investors can afford to give Malaysia a miss, since there are now other alternatives.

We have to work so much harder to earn the returns we managed back in the 90s. Furthermore, the 2008 global financial crisis has shaken up the global balance of power between the East and West.

China is now the rising power, challenging the post-Cold War dominance of the US. Twenty years ago, Beijing and Shanghai were dingy backwaters.

Now, we are exhorting our children to learn Mandarin, and these two cosmopolitan cities are thriving with powerhouse banks and corporations.

Indeed, Malaysia is not separate and distinct from global trends. China’s extraordinary economic might and increasing global prominence is having an impact not just on our domestic economy but our socio-dynamics too. Similarly, with India.

Therefore, we need to embrace the change and the opportunities instead of rejecting them. Besides, we may have no choice.

Many fall for Aussie job scam



 Women swindle RM25,350 from 19 victims by promising highly paid work


By Ivan Loh, The Star/Asia News Network

BATU GAJAH: A chance to work in Australia and earn about RM9,000 monthly seemed too good a deal for a labourer to ignore.

It was, however, all a scam as a 26-year-old man from Batu Gajah, who only wanted to be known as Heng, found out when he was cheated of his money by two women.

Fong holding up the police report made by one of the victims of the scam at the Batu Gajah police station
 
Heng said he was introduced to the women who promised him a job as a sheep wool collector in Australia last month.

“One of the them, known as Ann, told me that I only had to pay RM1,650 as deposit for the airfare and they would find me a job there,” he said.

“As they were introduced to me by a friend, I trusted them and paid the money,” he told reporters after lodging a police report on Sunday.

Heng said that Ann later confirmed his flight on April 30. However, she subsequently informed Heng that his flight had been postponed to another date and he was told to wait.


Heng, a renovation worker, said he was later contacted by Ann, saying that the deal was off and his money would be refunded.


“I tried calling her again to enquire when I could get back my money but the calls went unanswered,” he said.

Heng said he hoped the police would look into the matter and pick up the two women for questioning.


“I only want justice to be served on these unscrupulous people. If I can’t get back my money, so be it,” he said.

Heng was among six people, accompanied by Batu Gajah MP Fong Po Kuan, who lodged a report.

Fong said she believed there could be more people who had fallen victim to the two women.

“I was told that 13 others had lodged similar reports earlier this month,” she said, adding that the two women had swindled about RM25,350 from the 19 victims.

“Most of them were promised jobs to work in factories, orchards and farms in Australia.”

Some of the victims were from Sungai Siput, Menglembu, Gopeng, Sitiawan and Chenderong, she added.




Monday, 18 April 2011

When in trouble, tap family power




I REFER to “Ruthless Ah Long ‘hunting down’ families of defaulters” (The Star, Apr 13). My sympathies to the victim harassed by the Ah Long. She’s already 65 years old and still trying to earn a living selling vegetables.

Her adopted daughter owed the Ah Long around RM100,000. We have all heard how ruthless the Ah Long can be.

I remember the police ran a “Say No to Ah Long” campaign not long ago.

The various municipal councils have also acted by taking down illegal advertising banners and posters put up by Ah Long.

MCA Public Services and Complaints Department head Datuk Michael Chong has warned the public many times. I sincerely hope one will think thrice before taking a loan from an Ah Long.

During bad times like the current economic meltdown, financial difficulties arise and affect many.

It’s time to go home. Never underestimate the power of home. As one opens the home door, gradually one can see and feel the power of family.

One’s family members are pillars of support and strength. Family bonds cannot be broken. It runs in our blood forever from generation to generation.



Discuss things with them. Be open. Don’t keep them in the dark. They may be able to help.

Let’s go down the family tree. We see immediate and close relatives. They, too, may be able to assist. Another avenue will be approaching close friends.

Pride, ego and face are not important. Financial problem solving is.

One should never think negatively, that one will lose face or will be looked down on if one needs to borrow money from family members, close relatives and close friends.

Just be grateful if they are willing to help. It’s a crucial option.


One should never take the risk of borrowing from Ah Longs. What if one fails to pay? One can hide forever but what about one’s loved ones?

I recall the song You Are Not Alone. More heads are better than one. Being alone invites hopelessness and helplessness.

EDWARD WONG,
Ipoh.



Sunday, 17 April 2011

Sarawak election - BN Victory not all that sweet, implications & changes for Malaysia's next election




Victory not all that sweet
Analysis By Joceline Tan

Tan Sri Abdul Taib Mahmud was returned to power in the 10th Sarawak election but it was a bittersweet win because it came with unprecedented losses in the Iban and Chinese seats.

IT was not quite the perfect storm that some people had predicted but the Sarawak election is a signal that the political landscape in the state has shifted in a way that its leaders had not foreseen.

Chief Minister Tan Sri Abdul Taib Mahmud was returned to power with a two-thirds majority but his victory was punctured by unprecedented losses.

A total of 16 seats fell in the rural heartland where Barisan Nasional used to hold sway while Deputy Chief Minister and SUPP president Tan Sri Dr George Chan's 30-year political career came to a crunching halt.

Dr Chan's stunning defeat by a young DAP lawyer topped the trail of losses of other SUPP candidates, leaving the party with a big question mark over its future.

Taib's party PBB remained on top of the game, retaining all the 35 seats it contested.

But even before the night was out, it was evident that Sarawak's politics would never be the same again.

Taib's coalition crossed the two-thirds margin shortly after 6.30pm, by which time five seats were confirmed to have fallen to DAP and PKR.

Before that, tweets from opposition politicians claimed they were on the way to smashing the Barisan's two-thirds majority.

A Perak leader tweeted that he had received a call to ask Pakatan Rakyat to get ready to form the Sarawak Government. But it was one of those “Sept 16” claims.

However, there has been a Chinese tsunami of sorts in the urban centres where DAP took 12 of 15 seats contested.

The DAP was the big winner in Sarawak and scored astonishing victory margins in several seats. DAP also made a clean sweep of all the seats it contested in the capital.

The Chinese in Kuching have made themselves heard loud and clear. In fact, Dr Chan's defeat was a metaphor of the Chinese rejection of SUPP which they see as too much of a yes-man to Taib.

But the earth-shattering reality for Taib and his government was the erosion of support in the rural Iban seats.

Barisan not only lost Iban-majority seats but saw its victory margins in other Iban seats slide to an all-time low.

Politics in the rural hinterland is no longer what it used to be. The Iban support can no longer be taken for granted.

Ba'Kelalan fell to Baru Bian, the indigenous lawyer who has been such a thorn in the side of Taib's administration.

PKR's win in Ba'Kelalan was expected but the party's win in Krian, another Iban seat, was a big blow because the defeated incumbent Datuk Peter Nyarok Entrie is the deputy president of SPDP, a Barisan component party.

DAP's ceramah in Kuching, Miri and the central basin of Sibu, Sarikei and Lanang had drawn massive crowds night after night.

Their Ubah mascot, a cute soft toy in the form of the Sarawak hornbill, was sold out and every night, there were more and more people wearing the signature red T-shirts at their ceramah.

Their grand finale in Kuching was the biggest rally that local folk had ever seen and the opinion that night was the Chinese tsunami would reach the shore the next day.

It was not the da xuan or big change that the party was hoping for but it has been DAP's most successful outing in Sarawak.

SUPP, the party that has represented Chinese interest all these years, will have to do a lot of soul-searching on how to recover and remain relevant.


Voter turnout has been quite low in the last few elections. It was no different this time around despite the most intense electioneering in Sarawak history. Some saw the low turnout as a form of silent protest.

The perception was while many voters did not want to vote for Barisan, they were also not keen on voting for the opposition DAP or PKR and definitely not for PAS which lost all the seats it contested.

This election has been all about Taib or Pa Mao the name by which he is known to all and sundry.  His 30 years in power, unfortunately, coincided with the ouster of Egypt's Hosni Mubarak.

His overstaying became such an awkward issue for his coalition government that he could not even celebrate his three decades in power.

The results suggest that the power transition will definitely take place. Taib may even have to bring forward his transition plan to perhaps next year when PBB, of which he is president, is scheduled to hold its party election.

Taib has seen how he was openly criticised and ridiculed throughout the campaign, something which had never happened in any state election.

There is no denying the groundswell and it is not only against him but also those around him who have overstayed their welcome.

The Iban change of heart is also a slap in the face for PBB deputy president Tan Sri Alfred Jabu who represents the indigenous Pesaka wing of the party.

Jabu, who won narrowly, is the only top leader of Taib's generation who has yet to indicate whether he is making way after the polls. Regardless, he will be under great pressure to go after this.

In overstaying, Taib had given the basis for others to cling on. Those who have overstayed are what is known as the Ming Court generation, the group which came to power with Taib in the 1980s.

The signs of what would happen last night were already in the 2006 election and the Sibu by-election but those in power chose not see it.

The outcome in Sarawak is not exactly a disaster for Barisan but it spells trouble in time to come. The political transition after this becomes more crucial than ever to Barisan's hold on Sarawak. How Taib handles the transition which will impact the coalition's ambitions in the general election.


SUPP needs to rise from the ashes

KUCHING: Failure to carry out party reforms, internal squabbling and ineffective representation in the ruling coalition government have been cited for SUPP’s worst defeat in its 52-year history.

Such views were shared by Federation of Kuching and Samarahan Division Chinese Association’s president Dr Chou Chii Ming, former city and municipal councillor Dr Gregory Hii and University Malaysia Sarawak (Unimas) political scientist Associate Professor Dr Andrew Aeria.

The federation is an umbrella body for some 110 member associations. Chou said the people had lost their patience as the SUPP had not carried out the reforms it promised after its defeat in the 2006 polls.

The Chinese-based party then lost eight seats – six to DAP and one each to PKR and an independent.

The promised reforms included reorganising the party to rejuvenate itself, the setting up of branches in all 71 state constituencies to serve more people and spread its influence and limiting the terms of its ministers, deputy and assistant ministers, MPs and assemblymen.

Chou, who had expected SUPP to win about 10 seats, said the party lost out to the DAP which had an effective polls campaign and well-organised ceramah.

“The DAP speakers, especially those from the peninsula, were very convincing in their speeches which were backed by facts and figures. It was difficult for SUPP to rebut,” he said.

According to Hii, party infighting was a serious problem in SUPP and the people were losing confidence as it had failed to address its internal problems.

The recent much-publicised fight among its senior leaders over the formation of the party’s Dudong branch in Sibu dented its public image.

The party is yet to resolve internal squabbles in its Bintangor branch which have have been dragging on for more than a decade.

Aeria said that while the leaders were fighting among themselves, the Chinese were watching and pondering: “when is SUPP going to address our interests?”

To revive the party, Hii suggested that SUPP be inclusive and appoint community leaders such as penghulus, pemancas and kapitans from non-governmental organisations and non-party members as councillors for local authorities.

Chou said that SUPP’s immediate task was to restructure and carry out a renewal process by bringing in professionals and young blood.

“As the party has lost so badly, there must be something very wrong with its leaders and the organisation.”

Aeria said the party should groom young leaders and undergo a generational change to renew itself.
“I think the veteran politicians who lost in the polls should retire and leave with dignity,” he added.



Barisan has lost its fixed deposit, says DAP


KUCHING: Barisan Nasional has lost its fixed deposit in Sarawak after the coalition lost 16 seats to the Opposition and independent candidates, said DAP adviser Lim Kit Siang.

“This is the biggest electoral defeat suffered by Barisan in Sarawak and this is a setback to Barisan president and Prime Minister Datuk Seri Najib Tun Razak,” he said. “Sarawak is no more the fixed deposit for Barisan and this will have far-reaching implications in the next general elections,” he said.

“The polls results showed a great awakening among Sarawakians and was a big step for Pakatan Rakyat towards the general election,” he told a press conference here yesterday.

DAP secretary-general Lim Guan Eng thanked Sarawakians for supporting Pakatan candidates, particularly DAP. He said DAP broke a record for having the most seats in Sarawak.

He said the votes garnered by the Opposition were very encouraging compared to the 2006 and 2008 elections.

”The people have spoken today that they believe there is hope for Sarawak achieving a clean and fair government for all, and a two-party system,” he said.



Who will step into Taib’s shoes? 

Insight  By Joceline Tan

The Sarawak election is over. Tan Sri Taib Mahmud has said he will retire and the transition is about to begin. The big question now is who will be the next Chief Minister of Sarawak.

THE venue was the newest hotel in Kuching and Tan Sri Taib Mahmud was just about to go into a closed-door meeting when he decided to make a toilet stop.

To everyone’s amazement, he suddenly jogged off in the direction of the men’s room along the red carpet which had been rolled out in his honour.

It was quite a sight to see the Chief Minister, in his business suit and tie, sprinting off as his bodyguards tried to keep up with him.

<<  Big step: Taib was the number one issue in the Sarawak election that saw him having to assure voters again and again that he is going to retire. – RICKY LAI/ The Star
It was, apparently, the first time any of the Sarawak reporters had seen him do that. It was quite uncharacteristic behaviour for Taib, but these have been unusual times for Sarawakians.

Taib has virtually been cornered into declaring his retirement in the middle of the fiercest election that Sarawak has ever seen.

Not many people had believed him when he first talked about calling it quits a couple of months ago but he has repeated it so many times over the last one week that it has become quite believable.

  Moreover, given the way his 30 years in power was parodied throughout the election campaign, there is no way he can refuse to go. 
  »It’s hard to predict his next move although he has said he is going. Even his ministers cannot predict what he will do << DR JENIRI AMIR
The big question now is who will take over?

Potential successors have come and gone. After all, Taib, who turns 75 next month, has been in power longer than even Tun Dr Mahathir Mohamad.

But the succession has finally boiled down to three names – Datuk Awang Tengah Ali Hassan, Datuk Abang Johari Tun Abang Openg and Datuk Seri Adenan Satem.

But try approaching any of them to suggest that they could be a future Chief Minister and they look as if they want to run off faster than their Chief Minister had done in the hotel.

It seems that being identified as the future Chief Minister has been like some sort of kiss of death in the past, and none of the three want to be kissed that way. It is safer to keep one’s head low until things are clearer.

Just a couple of months ago, Taib had said that his retirement was delayed because he had not groomed a successor. Then earlier this week, he said he had identified a successor whom he had groomed for 20 years.

Everyone’s mental calculator immediately switched on – 20 years in the grooming could mean either Awang Tengah, 55, or Abang Johari, 60.

Awang Tengah entered politics in 1987 whereas Abang Jo, as he is known, contested his first election in 1981.

< Adenan: Grown old waiting to be Chief Minister.
The third man, Adenan, turned 67 in January and looks his age, unlike Taib who has been looking quite sprightly since marrying a beauty half his age.

Passing the baton to someone just three years short of 70 is not what one might call succession. But Adenan’s ratings went up after he was assigned to announce Barisan Nasional’s candidates before the election.

Taib has always taken charge of this important announcement but this year he walked out of the meeting room just before the press conference and left his lieutenants to deal with the media circus.

Some claimed he was peeved that Putrajaya had tweaked his original list and that names he had dropped had been reinstated.

One of those whose name had been dropped was an attractive lady called Simoi Peri.
When Taib entered the meeting room that afternoon, he had called out loudly, “Is Simoi here? Where is Simoi?”

< Abang Johari: Respected for his track record.
It was said in a rather sarcastic tone and it was Taib’s way of saying, “I know how you got back in.”

Adenan is a rather polished man who speaks English as though it is his native tongue. He is the only one among the three who has served in both state and federal posts.

Unlike the other two, he does not hold a government post and is only the information chief of the ruling PBB party.

But he has something to his name that the others do not have – he used to be married to Taib’s younger sister. Family ties in politics would be known as nepotism anywhere else but it is quite rampant in Malaysian politics.

Some think that Taib would not mind a relative of sorts taking over and he could be what one Kuching-based editor calls an “interim chief minister”.

But speak to any Sarawak politician and the money seems to be on Awang Tengah, a tall and rather good-looking Second Minister of Resources Planning and Management. It is a key ministry, as the First Minister of the portfolio is none other than Taib.

He is also PBB’s senior vice-president I, a significant post in the party. As a result, Awang Tengah has become widely known as Taib’s blue-eyed boy and has grown quite powerful over the years.

It is good to be loved by the boss, but there is an anti-Taib sentiment running through the state at the moment. That is what Awang Tengah may have to contend with in the months ahead.

< Awang Tengah: Seen as Taib’s blue-eyed boy.
He would be seen as too subservient to Taib, a yes-man rather than his own man. Ordinary citizens who want to see a genuine transition and real change in conduct of the business of government may not take well to it.

But with power being very seductive, even people who do not like you now can suddenly like you once you are up there, so Awang Tengah need not be overly worried.

The third candidate, Abang Jo, is neither in the good nor bad books of Taib. But he is definitely in the good books of many ordinary folk.

He has one of the best track records among the Sarawak ministers, is diligent and takes his work seriously.
His performance has impressed journalists, people who are in the best position to assess politicians. They talk about how he was “cold-storaged” after he contested the PBB deputy president post against the wishes of Taib.

In a cabinet reshuffle after that, he went from the important industrial development ministry to tourism.

Instead of sulking, he rolled up his sleeves and did well in his new portfolio. He has since been redeemed. He was appointed Housing Minister in 2004 where he again delivered. His portfolio was recently expanded to housing and urban development.

He is very result-driven and, more important, does not have much baggage to his name. Sarawak could do with more of this type of politician.

The Prime Minister has definitely noticed him. On Wednesday night, Datuk Seri Najib Tun Razak, who was in Abang Jo’s Satok constituency, called him “brother Jo” throughout his speech. That was the first hint of his regard for his host.

The second hint was when Najib spoke of how “brother Jo” had come to see him for a RM65mil development project in Sarawak. He said it was a big request but he had told the Sarawak leader: “OK, Abang Jo, lulus (approved).”

Everyone in the audience thought: Wow, PM wants Abang Jo. But the next day, Najib went to Lawas where it was Awang Tengah’s turn to play host. There was no “brother” thing going on with Awang Tengah but Najib was his usual civil self.

Najib is sending very mixed signals on his preference for Sarawak. The man is getting as hard to read as Dr Mahathir.

But the reality of Sarawak’s politics is that the next Chief Minister will be largely determined by the sitting Chief Minister. He has been badly mauled but he is still very powerful and the people around him are terrified of him.

At the same time, the aura of invincibility around him has been shattered especially after the way he and his family were criticised so openly during the election. A point of no return has been reached in his long political career.

Those familiar with him say he would not want to stay on for long after what has happened. His concern would be to formulate an exit plan of his choosing and that would include picking a successor.

Party insiders say Taib had quietly called Adenan, Awang Tengah and Abang Johari for discussions and told them they must work together after he goes. He did not give any hint about whom he wanted but his desire was that these key leaders should accept whoever he picks and not mount a challenge for the party leadership. Like in Umno, whoever becomes president of PBB becomes Chief Minister.

The person who takes over will first have to be endorsed as PBB president. Given this, many think the transition will be put in place by the middle of next year when PBB is scheduled to have its election.

But for PBB to stay cohesive, the man Taib anoints must also have the support of the party which comprises two wings – the indigenous Pesaka wing and the Muslim Bumiputra wing.

A president who is not well accepted by both wings would be a weak one and unable to hold the party together. And with the new political landscape unfolding in Sarawak, a weak PBB could mean trouble for the state Barisan.

Given that, Taib will have to listen to the sentiments in his party as well as that in Putrajaya.
His successor must also be someone who can help redeem the Barisan’s prestige especially among the Chinese and win back their confidence. The state Barisan cannot be stable without the Chinese support.

There are also some who think that Taib might be persuaded to accept the Governor’s post. The incumbent’s tenure will end in December.

But a close relative of Taib indicated that he would not be interested in occupying the Governor’s mansion even though it has a lovely view of the Sarawak River and the beautiful State Legislative Assembly.

Taib, according to the relative, would prefer to retire overseas where he can be free from public scrutiny.
The chief fear among many Sarawakians is that his successor would not share his courage on cultural and religious issues. This has been Taib’s strength through the years. Many Chinese, even while they were preparing to vote for DAP, were concerned that if Taib goes, his successor would not be as open-minded and as multi-cultural.

Taib, they noted, is the sort of leader who openly admits that he had studied Bible knowledge in school, is not afraid to enter a church and whose late father raised funds to build churches.

He even officiated at the opening of a Catholic church at the height of the election campaign. Which Muslim leader would have dared do that, let alone during an election? The church officials say he had even suggested they build a bigger church.

For all his faults, Taib stands head and shoulders above Muslim leaders in other states on the question of religion.

Sarawakians are against Umno coming in because of the religion factor. They saw Umno go into Sabah during the 1980s and blame the party for the “Umno-isation” of Sabah.

They look dimly upon Datuk Seri Anwar Ibrahim whom they see as the architect of Umno’s entry into Sabah. They are also highly suspicious of PAS. They equate PAS and Umno with the politicisation of religion.

In that sense, the next chief minister would have to take a strong stand on this. Had Taib gone off earlier, the choice of successor would have been completely his. But so much has changed in the last few months and he is now deciding from a much-weakened position.

But Taib, said Sarawak political expert Dr Jeniri Amir, should not be underestimated. “It’s hard to predict his next move although he has said he is going. Even his ministers cannot predict what he will do,” said Dr Jeniri.

The way Taib defeated his uncle’s attempt to topple him back in the 1980s was the first hint of what a survivor he would turn out to be.

He is a first-class tactician.  But 30 years is a long time and Taib became too comfy in his ivory tower. That was why he did not sense the Chinese tsunami approaching even though the siren had sounded in the 2006 election. He is now paying the price for that.

An era is about to end. But he can still make it up by choosing someone whom the people really want and who can deliver what Sarawak needs to progress. That way, Sarawakians will remember him in a better light.



Utusan tells BN to ignore Chinese vote after Sarawak polls

April 17, 2011

KUALA LUMPUR, April 17 — Utusan Malaysia has told Barisan Nasional (BN) to ignore the Chinese community for not supporting the ruling coalition during yesterday’s Sarawak elections.

BN’s Sarawak United People’s Party (SUPP) lost more than two-thirds of the 19 seats it contested in a snub by the tiny but vociferous China commuity.

In its weekend edition Mingguan Malaysia, columnist Awang Selamat stressed that re-elected Sarawak chief minister Tan Sri Taib Mahmud’s new cabinet will reflect the “reality of the ballot box.”

The average Chinese voters have rejected BN and supported DAP. Therefore the BN state government can no longer be too generous to give place to representatives from the community. Sarawak cabinet must be reflective of the decisions and attitude of the voters.

Clear message must be sent. Taib must show gratitude to those that supported him and BN government,” said Awang in his article “New Reality.

The columnist, whose pseudonym is used by Utusan editors, said that BN leaders must learn from the state election when preparing for the national polls.

“Once again, the attitude of the Chinese voters is clear in rejecting BN. Awang believes that sentiment of Chinese voters in the peninsular is also the same. The reality is that after dominating the economy for so long, the Chinese community wants to have greater influence and become a dominant political force.

“The campaign to change the state government seems to only be accepted by a majority of the Chinese voters. The Bumiputera community still remains strong with BN,”

He said that BN must formulate a new strategy without depending on the support of the Chinese voters.

Awang said the ruling coalition must not fall into a trap of granting every demands of the community if they continue to vote for DAP. 

“Let the support come naturally. If the Chinese voters continue to reject BN then we should not worry as there will be a way out,” Awang said.

The columnist also said that BN can still win in the general election without the support of the Chinese community.

“What is important is to empower the voters that are already loyal supporters. We should not pursue what we cannot get. The potential for BN to win is still huge with the growing support of the Bumiputeras, Malays, Indian and other ethnic communities.

“If there is additional support from a small percentage of Chinese voters then that is a bonus. All parties must be ready with the new reality,” said Awang.

Last night BN managed to keep its two-thirds legislative majority in Sarawak but the results have shattered the coalition’s invincibility and the notion of a fixed deposit in future elections.

The DAP doubled its presence to 12 in Chinese-majority seats while PKR tripled its representation although the Pakatan Rakyat (PR) lynchpin had contested in 49 seats. PAS lost in all five seats it contested while Independent George Lagong took one seat.

The number of state seats to the Opposition pact will spell danger for BN as it could help them win more parliamentary seats when the general election is called by Prime Minister Datuk Seri Najib Razak. PR now has 75 MPs but the Sarawak win could translate into more in the future.

Saturday, 16 April 2011

The ghosts of Bretton Woods

THINK ASIAN By ANDREW SHENG



LAST week I attended the second annual meeting of the Institute for New Economic Thinking (INET) in Washington Hotel, nested in a beautiful snow-capped valley in Bretton Woods, New Hampshire.

In 1944, the historic meeting on the international monetary system was held there. The British delegation was led by Lord Keynes, the foremost economic thinker of his day. The US delegation was effectively led by US Treasury adviser Harry Dexter White. Even though all the Allies attended the meeting, including China and India, it was essentially a debate between the declining super-power, Britain, and the rising superpower, the United States.

Keynes understood full well the problem that Britain faced as the issuer of sterling. Since Britain was running large current account deficits because of the two world wars, it was having a tough time maintaining sterling as the main reserve currency. By the end of the Second World War, the United States emerged as the dominant global power, since it ran large current account surpluses by supplying food and raw materials to Europe in exchange for gold. To avoid the Triffin dilemma, Keynes argued for the creation of a new international currency, called Bancor, that would not be related to the issue of a national reserve currency.



The Triffin dilemma is the problem that the issuer of the global reserve country had to continually run large current account deficits to meet the liquidity needs of the world. In the short run, the reserve currency role benefits from an “exorbitant privilege”, since the issuer country could pay for its imports by printing more currency, whereas non-reserve currency countries could only import by paying in foreign currency.

However, Harry Dexter White rejected the idea of the Bancor, because he did not like the idea of the issuance of global currency by a global central bank. Instead, the idea of the Special Drawing Rights (SDRs) was adopted, where the SDR was a reserve unit of account, which could only be created through the exchange of national currencies with the issuer, the International Monetary Fund (IMF). As the dominant IMF shareholder, the US could reject the issuance of SDRs, thus ensuring the US dollar remains the dominant reserve currency.

There is common confusion that the SDR can eventually become a reserve currency to replace the US dollar. It is a unit of account between the IMF and member countries, but it cannot be used for international payments. Currently, it is issued to member countries to increase their foreign exchange reserves. However, when the member country needs foreign exchange, it must exchange its holdings of SDR with the IMF in four component reserve currencies, namely the US dollar, the euro, sterling and yen.

Thus, the components of the SDR can change, but the reserve currency role remains national, not global.

Keynes was right. Sixty-seven years later, the US had become the leading global borrower, whereas the net lenders are Japan, China, Germany and the oil producers, creating what is now called the Global Imbalance.

Last year, Italian central banker Tomaso Padio-Schioppa gave a speech about the international monetary system, called the “The Ghost of Bancor”, because the idea of Bancor was killed in Bretton Woods 67 years ago. Padio-Schioppa, who had a major role in the creation of the euro and became a member of the board of the European Central Bank, unfortunately died early this year.

Interestingly, he equated Bancor with Banquo, the Scottish king who was murdered by Macbeth, in the famous Shakespeare play “Macbeth”. As is well-known, Macbeth met three witches in the forest who predicted that he would murder his king, Banquo, and become king, but he would be succeeded by Banquo's successors.

Keynes conceived the idea of Bancor as the steward of the king (gold). But the replacement SDR has yet to emerge as an effective replacement for either gold or the US dollar. At the heart of any global currency (issued by one country, a number of countries or the IMF) remains the Triffin dilemma: what is the hard budget constraint to prevent the global currency issuers from printing too much money and therefore creating global inflation?

The Ghost of Bancor basically says that no national central bank or a global central bank can resist the temptation of printing too much money. Currently, the deficit countries blame the surplus countries for saving too much and the surplus countries blame the deficit countries for printing too much money. The reality is that it is the current international monetary system that is flawed. We cannot return to the gold standard, but a fully flexible system of fiat money is also not desirable.

We are in a global collective action trap, where everyone must share a burden of being part of the global game. The difficulty lies in how to allocate that burden in a fair manner.

My humble opinion is that the crisis of fiat money is due to excess consumption financed by excess leverage. That excess consumption is also the fundamental cause of global warming, as natural resources are depleted, while fiat money keeps on increasing. No one likes to use gold, because there would be price deflation which would automatically cut down excess consumption. That is too painful, so everyone still keeps on printing money by passing the pain to savers and future generations.

If there is more and more quantitative easing (money printing) and less and less natural resources in a shrinking world, should we be surprised that gold and oil prices keep on going up?

Who speaks the truth, the Ghost of Bancor or his successors, the current reserve currency issuers?
Perhaps it is the witches in the misty forest, the shadow banking system. That story will be revealed in the next article.

Andrew Sheng is author of “From Asian to Global Financial Crisis”.

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