The Malay Dilemma Revisited (Updated and Revised Version)–A Strongly Recommended Read


May 23, 2017

The Malay Dilemma Revisited (Updated and Revised Version)–A Strongly Recommended Read

Few countries today have culturally or ethnically homogenous populations, the consequence of colonization, globalization, and mass migrations. Thus, the Malaysian dilemma of socioeconomic and other inequities paralleling racial and cultural divisions has global relevance as it also burdens many nations.

Malaysia’s basic instrument in ameliorating these horizontal (between groups) inequities has been its New Economic Policy (NEP). Its core mechanism being preferential socio-economic and other initiatives favoring indigenous Malays and other non-immigrant minorities, as well as massive state interventions in the marketplace. In place since 1970 in the aftermath of the deadly 1969 race riots, NEP has been continuously “strengthened,” meaning, ever increasing resources expended and preferences being imposed with greater assertiveness.

Malaysia succeeded to some degree in reducing her earlier inequities and in the process created a sizeable Malay middle class. There was however, a steep price. Apart from the marketplace distortions and consequent drag on the economy, those earlier horizontal inequities are now replaced by the more destabilizing vertical variety. NEP also bred a rentier- economy mindset among Malays and other recipient communities. Those preferences now impair rather than enhance the recipents’ (in particular Malay) competitiveness, the universal law of unintended consequences being operative.

Initiated by Prime Minister Razak in 1970, his successor, Mahathir, raised NEP to a much more aggressive level, only to have that initiative today corrupted and degraded by, ironically, Tun Razak’s son, current Prime Minister Najib. By July 2016, the US Department of Justice alleges that “Malaysian Official 1” (aka Najib) illicitly siphoned over US$3.5 Billion from a government-linked corporation, 1MDB. Corruption on such a gargantuan scale was the predictable and inevitable consequence of Malaysia’s New Economic Policy and state interventions in the marketplace.

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The book chronicles Mahathir’s and Najib’s perversion of a once noble endeavor. Najib now adds another volatile mix. Desperate to hang on to power, he adds religious fanaticism to his already corrosive corruption and destructive incomptence. He now cavorts with extremist Islamists, threatening and undermining the nation’s still fragile race dynamics. Malaysia is today still burdened and blighted by Najib’s inept, corrupt, and chauvinistic leadership, with no end in sight. This would inevitably undermone the current fragile but still peaceful racial equilibrium in the country.

Instead of arbitrarily-picked numbers and targets, Malaysia should focus on strengthening Malay competitiveness through enhancing our human and social capitals. Modernizing the education system to emphasize the sciences, mathematics, English fluency, and technical training would address the first. Curtailing royal institutions and other vestiges of feudalism, as well as the regressive form of religion as propagated by the state, would develop the second. It is difficult to wean Malays off the special privilege narcotic when the sultans are frolicking at the top of the heap.

Beyond chronicling the failures of both the Najib and Mahathir Administrations, the author offers these alternative strategies for enhancing Malay competitiveness. Apart from improving the quality of our human and social capital through modern education and responsive institutions, the author advocates removing or at least toning down the stifling influence of official religion.–Dr. M. Bakri Musa

Saving the Global Trading System


May 22, 2017

Saving the Global Trading System

By Editors,  Eastasiaforum.com

International trade and investment lift living standards. The evidence for this is irrefutable. And modern economic development is not possible without opening up to international markets, competition and capital.

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But the world is re-learning the hard way, through Brexit and the rise of Donald Trump, that institutions and policies that protect the immediate losers from trade are needed to realise and sustain the benefits of open markets. Having a healthy and a well-functioning macroeconomic environment — one that delivers what economists call full employment — and a flexible labour market are crucial. So is having an effective social protection system.

When economic growth slows it is harder for the winners from globalisation to compensate the losers. The United States’ slow recovery from the global financial crisis, which hit close to 10 years ago, has brought these underlying structural problems into sharp focus. The social safety net is in tatters with the healthcare system, education system and redistributive policies exacerbating inequality — inequality in both opportunity and outcome — and bringing into question the American dream.

Australia, Japan, and many other countries have been able to avoid the retreat from globalisation thanks to well-functioning social protection systems. There may have been an inclination in many countries to adopt US institutions since it is the richest, most advanced and powerful economy in the world, but the lesson from Trump’s rise is a clear warning that now is the time to double down on the social safety net when embracing free and open markets.

When times are tough in any country there is immense pressure to put up barriers to foreign competition as a way to protect domestic producers. Protection may bring short-term relief to some parts of society and have short-term political appeal but is a cost to society as a whole, as well as to other countries.

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The global trading system has been stopping countries from committing self-harm for 70 years. The General Agreement on Tariffs and Trade (GATT) which later became the World Trade Organisation (WTO) was created in response to countries’ retreating to protectionism after the Great Depression. Countries voluntarily signed up to be bound by the rules and norms of that system and to have disputes with other countries settled within that system.

The 153-member WTO is far from perfect but it has underpinned successful globalisation. The large membership and diverse interests of the WTO have frustrated the completion of the Doha Round of trade negotiations. The WTO does not cover foreign direct investment and many other issues relevant to commerce in the 21st century. But its dispute settlement mechanism continues to function well and has resolved trade frictions that in an earlier time may have escalated into trade if not military conflict. High profile, geo-politically charged disputes such as the alleged Chinese rare-earth metal export embargo against Japan have been resolved peacefully in the WTO with China accepting the ruling against it.

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Three Amigos from of WTO, World Bank and IMF

In this week’s lead essay, Director General of the WTO, Roberto Azevêdo, reminds us that a ‘strong, rules-based trading system is essential for global economic stability’ and explains how that system can be re-energised.

Multilateral trade deals required all members to sign on to the entire agreement, called a single-undertaking, that made it harder to complete the latest round of negotiations, the Doha Round, as the issues became more complex and the number of countries increased. Azevêdo explains the WTO is ‘learning to be ambitious, but also to be pragmatic, realistic and flexible’, as well as ‘creative, finding innovative solutions and engaging in flexible formats’.

That is all good news for making progress on freeing up trade and reviving slumping global trade growth. But the bigger risk is that the WTO itself could be under threat from the United States, the very country that led its creation and which has underwritten the rules-based order for the past 70 years. The United States and Europe have provided a tailwind for the global economic system but have now turned to become the headwind against its forward movement.

President Trump has not carried through on many of his campaign promises and the world holds its breath in the hope that continues. While he withdrew the United States from the 12 member regional trade agreement the Trans-Pacific Partnership, he has not acted on tearing up existing trade agreements, starting a trade war with China or Mexico, or withdrawing from the WTO. But if jobs do not return in the American rust belt — perhaps as US interest rates rise and the dollar strengthens, or just because many of those jobs are gone for good — and Trump needs to demonstrate action on trade, the world will need to be ready to hold the line against following suit and to save the entire system.

Azevêdo explains that East Asia and the Pacific have a key role to play in boosting trade for jobs, growth and development. Asia will play the key role in saving the global trading system and global economy, if it is to be saved.

China is the world’s largest trader, a remarkable story only made possible with its accession to the WTO in 2001. The world, including the United States, has benefited greatly from China’s success. China’s economy is now the second largest in the world and still depends on open markets for development and its pursuit of prosperity. But China alone cannot lead the global fight against protectionism if the United States turns its back on globalisation.

South Asia and many countries in Southeast Asia need open markets to bring millions out of poverty and into the workforce. Japan and South Korea need open international markets to execute difficult reforms to manage shrinking populations. Asia is now a major growth engine in the global economy and has the interest, ability and responsibility to save the global rules-based order.

The EAF Editorial Group is comprised of Peter Drysdale, Shiro Armstrong, Ben Ascione, Amy King, Liam Gammon and Jillian Mowbray-Tsutsumi and is located in the Crawford School of Public Policy in the ANU College of Asia and the Pacific.

Japanese companies need to open up or shut down


May 21, 2017

Japanese companies need to open up or shut down

by  Alicia Ogawa, Columbia University

http://www.eastasiaforum.org/2017/05/16/japanese-companies-need-to-open-up-or-shut-down/

 

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Corporate governance has long been a hot topic for investors worldwide, but it is still a new concept in Japan. The increasing number of Japanese corporate scandals points to the need for a new approach to management. Many once-prominent companies seem to be unable to adapt to the pace of global change. The domestic market no longer offers much growth potential, so Japanese firms need to actively engage with the world or perish.

There is strong global interest in Japanese corporate governance for two key reasons. First, from the point of view of investors, the fact that rates have been low or negative in virtually all major developed economies has encouraged a sharper focus on equity markets for real returns, and Japanese companies fall woefully behind their global competitors in terms of profitability.

Second, as the pace of global competition accelerates, management is under constant pressure to react quickly to changing opportunities, such as the development of new technologies or the consolidation of capacity in maturing industries. Dialogue with outsiders, from shareholders to independent directors, is a prerequisite to navigating this terrain safely.

Japanese companies are at a distinct disadvantage in this new world because of key features of their organisational structures that served them very well in the past, such as lifetime employment. Decision-making is slow and dominated by consensus-seeking groups of senior men who have never worked outside their own firms, who rarely have specialised expertise and whose loyalties are first and foremost to each other.

The first of the major traumas at Toshiba, which came to light in 2015, involved the 152 billion yen (US$1.33 billion) deliberate overstatement of earnings between 2008–2014. This scandal illuminated the unspoken trade-off inherent in a lifetime employment contract: staff must not question decisions made by top management.

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Japan is No Longer a Tiger Economy

An independent investigation into Toshiba’s overstatement of earnings revealed that no CEO during that period directly instructed anyone to falsify the accounts. Rather, there was a long-standing corporate culture which mandated that managers ‘couldn’t refuse’ the profit targets set by the CEOs, no matter how unrealistic. Nevertheless, after the first accounting scandal, Toshiba chose Shigenori Shiga as the new chairman after his predecessor resigned in disgrace. Not only was Shiga yet another lifetime company man, but a former head of Toshiba’s subsidiary Westinghouse — which is now in the process of Chapter 11 bankruptcy in the United States.

Many Japanese companies have raced to create better governance on paper — Toshiba was in fact a trailblazer in this respect, having chosen to replace a traditional Japanese system of governance with US-style executive committees, including independent directors on the board. But despite appearances, an inability to encourage and respect independent thinking has led to the collapse of the former world leader in high-tech products.

Failure by Japan’s corporations to embrace both the letter and the spirit of Prime Minster Abe’s new governance reforms will jeopardise Japan’s future prosperity. CEOs must encourage challenges by their subordinates and aggressive supervision by their independent directors.

Investors are the other key class of outsiders who need to be welcomed into the discussion. The traditional silence of friendly shareholders is yet another wall that insulates management from outside competition.

Much attention has been paid to the unwinding of friendly cross-shareholdings by banks. But most of these shares have been transferred from friendly banks to friendly corporations, who will likely never vote against management; to the Government Pension Investment Fund (GPIF), whose size makes it ill-equipped to exercise any positive influence; and to the Bank of Japan, who cannot be a force for better governance. The protection afforded by acquiescent shareholders does not seem to have changed very much.

A survey undertaken by GPIF indicated that 21 per cent of executives regarded investors’ increasing scrutiny of capital efficiency to be a positive development, while 32 per cent regarded this as a very negative trend. Clearly, Japanese managers are a long way away from being comfortable discussing fundamental strategies with investors who own shares in their firms, or with their junior staff. But they had better hurry up.

In the case of Toshiba, lawsuits have been brought by several foreign investors, the world’s largest public pension fund GPIF, and several of the largest domestic banks. Refusing dialogue with your outside stakeholders can carry a devastating price when mistakes are made. It’s better to choose an openness to new ideas and critiques from your independent board directors and your investors, and thereby reap the benefits of dynamism and sustainability.

Alicia Ogawa is Director of the Program on Corporate Governance and Stewardship at the Center on Japanese Economy and Business, Columbia Business School. 

 

Book Review: Dr Shankaran Nambiar –Malaysia in Troubled Times


May 11, 2017

Book Review: Dr Shankaran Nambiar –Malaysia in Troubled Times

by Tricia Teoh

“THE absence of good institutions and transparency in public undertakings, government procurement, and … the design of public policy has the potential to shake investor confidence” is how economist Shankaran Nambiar sums up the macroeconomic conditions of Malaysia.

In his latest book, Malaysia in Troubled Times, which compiles Nambiar’s articles in newspapers between 2014 and 2016, he deftly articulates his positions on issues. He grapples mainly with the question of “where is the economy headed towards”, which he asks numerous times across his pieces, an evident sign of his deep concern over the trends taking place in the country.

Nambiar articulates what many observers of Malaysian issues have struggled with: despite our economy not hitting negative growth, not being in danger of defaulting on sovereign debt and the fact that the central bank having adequate reserves to cover shortfalls, he states clearly that yes, indeed, we should still exercise great caution with respect to the Malaysian economy.

And why so? Various pieces indicate why observers should be worried – an outflow of foreign funds, the sharp decline of oil prices, which has in turn led to a growing federal fiscal deficit, and … “doubts on the efficacy of government linked companies”.

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When Malaysia is in trouble, follow Idris Jala and play the Guitar

The challenges facing Malaysia stretch beyond our borders, and here Nambiar wades through regional waters to help readers understand the dynamics behind the now-dead Trans Pacific Partnership Agreement, the Regional Cooperation Economic Partnership, and the Free Trade Area of the Asia-Pacific, which he highlights is indicative of China flexing its muscles in the region.

Malaysia, he says, “has a special, valuable relationship with China, which places it in an excellent position to help establish a stable security landscape in the region”. Of course, the “special relationship” we have with China would now be interpreted in a very different light today, given the many bilateral deals Malaysia has now signed with China. Apart from arguing for how ASEAN can build itself up as a stronger regional pact, it is also refreshing that he brings in Asean-India economic ties and goes on to push for greater Malaysia-India improvements in trade and investment, which apparently our neighbours Singapore and South Korea have put a lot more effort in than we have.

Above all, Nambiar is a faithful believer of Keynes, whom he quotes several times in the book, saying that “positive expectations and ‘animal spirits’ spur aggregate demand and economic growth”, and that “at the moment it seems that the animal within the economy is wounded”. He cleverly works his critique of the economy through metaphors such as these, but stops short of blatantly dismissing any efforts being made by policymakers to improve the economic conditions of the country. He could also have done more in providing solutions to what he considers to be ailing our economy.

Despite the nuanced tone of his writings, it is clear that he harbours silent frustration with public policies and their implementation in Malaysia. Although the book focuses mainly on technical economic matters, Nambiar also ventures into “getting the big picture right”. He questions Malaysia’s dismal performance in the Programme for International Student Assessment (PISA) and Trends in International Mathematics and Science Study (TIMSS). He emphasises the importance of good public transport, education, human resource development and healthcare. And perhaps most importantly, he questions whether our politicians and policymakers are truly connected with the economy “as experienced by traders, technicians, taxi driver and executives”.

It is now almost two years after one of Nambiar’s pieces titled “Do we need to create scenarios for a future Malaysia?” and yet it seems even more imperative to do so today. With the elections near, this is what policymakers ought to do. And if they are not, then citizens ought to instead, and demand that their representatives pave the way for the right future to actuate.

An imagined future has to be one that, Nambiar argues, goes beyond motherhood statements like “being united in diversity and sharing a common set of values and aspirations” that he considers merely “dreamy visions of the future”. One has to concretely build scenarios based on concrete issues such as income distribution, incorporating input from a “constraint approach” (what are the stumbling blocks?) as well as a “global basis approach” (how does Malaysia fit into this matrix based on global trends?).
It is on this note that the book hits the nail hard on its head. Nambiar’s voice that constantly urges and pushes for the creation of the “spirit of this big picture” reminds us that simply, there is none of this presently that so inspires. His is a thoughtful, objective and incisive perspective of a nation that could be much more – and his desires for a better, more productive, wealthy Malaysia are evident.

Policymakers and politicians serious about addressing challenges to the Malaysian economy would benefit from a thorough reading of Nambiar’s book. They should also take heed of his advice that in thinking of the long-term, they must be “realistic about the present state of affairs”. This would be a good first starting point.

Comments: letters@thesundaily.com

The ASEAN Community: A Lofty Historical Challenge


May 11, 2017

The ASEAN Community: A Lofty Historical Challenge

by Michael Heng

“As an economic power, ASEAN is small by international standards. Given the level of development and technological base, ASEAN is unlikely to make a big impact on the global economy.” Do you agree with Professor Heng’s observation)?

http://ippreview.com/index.php/Home/Blog/single/id/433.html

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The Association of Southeast Asian Nations (ASEAN) was founded in 1967. Its 50th anniversary this year is a good time to take stock and to look ahead. ASEAN was established with the goal of preserving long-term peace in region at a time when the First Indochina War was raging, even though its explicitly stated goals were economic growth, social progress, and cultural development. One of its guiding principles is to abide strictly by the modern international system of sovereign states where countries do not interfere in each other’s internal affairs. ASEAN’s leaders have chosen to make decisions by consensus, and to avoid airing their differences in the public.

ASEAN has scored significant success as an economic community, due largely to the activities of global production networks in the region. In the assessment of a senior Chinese official speaking at a workshop in 2009, ASEAN is the healthiest and most integrated regional organization in Asia and it should be the center and platform to promote Asia’s economic integration.

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However, one cannot ignore the failure of ASEAN to resolve significant intra-ASEAN problems such as the Thai-Cambodian border dispute, the annual haze originating from Indonesia, and the blatant violation of human rights in Myanmar. Such problems cannot be resolved within ASEAN because of the strict non-interference policy in each other’s internal affairs. But conditions in the international arena today are different from when ASEAN was formed half a century ago. Environmental pollution, climate change, epidemics, terrorism, and transnational crime cannot be solved without close international cooperation. In the event of large scale violations of human rights, sovereignty cannot be used as a cover for the state to fan off interference by the international community. With the doctrine of Responsibility to Protect, the concept of state sovereignty in the past few decades has acquired subtle but important new interpretations. ASEAN’s strict insistence on non-interference is out of sync with prevailing international norms.

Before the 1997 Asian financial crisis, global capital had focused on gaining market access and investment in Southeast Asia. In the wake of the crisis, it began to be disenchanted with the region’s failure to respond effectively to the crisis. Meanwhile, critical examination of the financial meltdown revealed some serious flaws among the political leadership in most ASEAN member states. This period also saw the rise of China and India as new economic powers next door. Between them, these events prompted soul-searching within ASEAN.

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Driven by internal and more so by external developments, ASEAN has strived to deepen and widen its integration and has set its sights on becoming a community of nations. To do so, it has to look beyond the geopolitical and economic dimensions, and widen its scope to include the social and cultural dimensions. Though some progress has been made in this direction, especially in their agreement to the terms of the ASEAN Charter, it remains to be seen whether the member states will be able to live up to the ideals as enshrined in this document. Even if they do so, they need to go further than this document in order to be in tune with prevailing international norms as adopted by the United Nations.

Unity in Diversity

One of ASEAN’s achievements has been its ability to group together ten member states with different political systems, population sizes, geographical sizes, languages, religions, historical backgrounds, and stages of economic development. It should come as no surprise that the ASEAN Charter has adopted as its principle the concept of “unity in diversity.”

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Unity in diversity is the concept of “unity without uniformity and diversity without fragmentation” — thereby moving and raising the focus from unity based on mere tolerance of physical, cultural, linguistic, social, religious, political, ideological and/or psychological differences towards a more complex unity based on an understanding that differences enrich human interactions. One should add that this understanding should go beyond the utilitarian aspect to one founded on the basis of appreciating and cherishing differences. No wonder that unity in diversity is said to be the highest possible attainment of a civilization, a testimony to the noblest potential of the human race.

ASEAN Socio-Cultural Community Blueprint

Just like unity in diversity, the concept of social justice is found in many ASEAN documents. For example, the ASEAN Socio-Cultural Community Blueprint of 2009 claims that “ASEAN is committed to promoting social justice and mainstreaming people’s rights into its policies and all spheres of life, including the rights and welfare of disadvantaged, vulnerable and marginalized groups such as women, children, the elderly, persons with disabilities and migrant workers.” The reality in the ASEAN countries however shows clearly that there is a wide mismatch between such lofty statements and what the people experience.

A close reading of the ASEAN Charter will reveal that it has some lofty and high sounding concepts. For example, ASEAN and its Member States shall act in accordance with, among others, the principle of “adherence to the rule of law, good governance, the principles of democracy and constitutional government.” This sounds hollow when its member states undermine the independence of their judiciaries, allow corruption to run wild, pay scant attention to protect their environment, indulge in gerrymandering, and harass their political opposition.

Same Journey but at Different Speeds

ASEAN may be seen as a fine example of unity in diversity. But to strive towards the goal of a community of nations, they must live up to the goals and aspirations as written in their own official declarations. One way to do so is to emulate the best among them in a given area. For example, Indonesia has made significant progress in democratic transformations, and can fairly be said to be the most democratic of the ten. While Indonesia should continue to make progress, the other nine should be inspired by the success of Indonesia and follow its example. Similarly, Singapore’s achievement in economic development and clean government should spur the other nine to do the same.

The common struggles of the ASEAN peoples across the region will be a firm foundation for the growth of ASEAN solidarity, shared consciousness, sense of common interests, and an ASEAN identity.

It is of special importance that Indonesia can carry out democratic reforms, and Singapore can practice clean government. It means that these institutions and practices are not alien to Southeast Asia or in a wider context to the non-Western world.

Unity in diversity here may take on additional meanings: united in pursuing the goals of social justice, economic prosperity, clean government, human rights, democracy, etc. but with different member nations proceeding at different speeds. Those moving ahead should nudge and help those trailing behind.

Promoting Knowledge at the People-to-People Level

According to the Charter, community building is to be intensified through enhanced regional cooperation and integration via the means of the security community, economic community, and socio-cultural community. The first two have enjoyed the lion’s share of official attention. The third deserves to be given its due attention.

A recent study reveals that the general public in cities in Indonesia, Malaysia, and Singapore perceive the formation of the ASEAN Community as beneficial, but they see the formation as elitist and state-centric as it did not involve the people. This is a disturbing finding. City residents are generally more well-informed and involved in the political life of their countries. If they do not feel so involved in the formation of the ASEAN Community, one can imagine how low the sense of involvement can be in the rural areas. Much more must be done therefore to create and nurture a sense of participation by the citizens.

There is a useful role to be played by ASEAN’s professional bodies, like the ASEAN Associations of Lawyers, Engineers, Doctors, Accountants, Architects, Journalists, Writers, Teachers, etc. Through their regular contacts and sharing, we have new channels for evolving ASEAN styles of landscaping, architecture, paintings, music, and so on. The Association of Doctors could also be a good forum for them to develop a teaching program on traditional medicine based on research and as practiced by their ancestors.

In additional to the above are regular exchanges of cultural troupes. Their works should be featured on national television channels, and tickets should be subsidized by sponsors. For those more inclined to intellectual discussions, their interests can be served by local think tanks hosting talks and seminars by public intellectuals and thinkers on topics concerning the broader and long-term future of the region.

Looking Ahead

From its humble beginning, ASEAN has grown into a regional body that is courted by major world powers. Given the different historical backgrounds, cultures, political systems, and their lack of complementary economic activities, its endurance and success might come as a surprise. Credit must be given to its political leaders for being able to respond well to the emerging challenges and opportunities.

The success of ASEAN can also be seen as a clever response to the challenges posed by globalization. This is clearly seen in how the Asian financial crisis prompted ASEAN to speed up and deepen its integration. The same was again seen in the aftermath of the 2008 financial crisis. The latest is how global production networks have integrated the ASEAN economies with that of China, forming the basis for the ASEAN-China Free Trade Agreement.

But the imperatives for regional integration need to be combined with an awareness of the limitations arising from inter-state competition and divergent domestic capabilities within its member states. Here there is a need to work for the greater common good and with a long-term perspective. There are at least four areas where this approach is needed. The first concerns industrial policy. The member states need to sit down and formulate industrial policies which are complementary to each other. Doing so will increase intra-ASEAN trade, which currently constitutes only 25 percent of ASEAN’s trade. The second concerns protection of the environment, a point that was touched on earlier. The third concerns supporting local cultures and intellectual activities, so that Southeast Asia can boast its own world-class writers, painters, thinkers, musicians, and architects. The fourth and arguably the most difficult, is to translate into real practice the paper commitment of ASEAN member states to democracy and social justice. It includes protecting and respecting the rights of minorities, appreciating the political opposition as assets of the countries, and guaranteeing freedom of the press and association.

As an economic power, ASEAN is small by international standards. Given the level of development and technological base, ASEAN is unlikely to make a big impact on the global economy.

Perhaps the most important area which ASEAN can contribute to the world is to bring about the ASEAN Community with cultures and historical backgrounds different from those of the European Union. The new global conditions present Southeast Asia with opportunities and challenges. The greatest opportunities are the big avenues for economic growth in the region, and long-lasting peace. Territorial contestation leading to war is for most countries a thing of the past. Some challenges are persistent — nationalism, ethno-religious parochialism, discrimination against women, massive natural disasters, diseases, and poverty. Some challenges are new — climate change, environmental degradation, depleting natural resources, transnational crime, and terrorism. The challenges call for political, religious, opinion, and business leaders to re-orientate their courses of action toward the greater common good of the people in the region.

What is more crucial and effective is for the citizens of ASEAN countries to render support to each other in their struggle to realize the ideals of the ASEAN Charter such as environmental protection, rights of migrant workers, human rights, and social justice. It would be difficult for the governments to suppress these struggles because these are struggles inspired by a document crafted and endorsed by the government leaders themselves. The common struggles of the ASEAN peoples across the region will be a firm foundation for the growth of ASEAN solidarity, shared consciousness, sense of common interests, and an ASEAN identity.

Like other historical processes, the journey to the formation of the ASEAN Community will take time and will not be easy. There is still a wide gap between the deeds and words of the government leaders of ASEAN. If and when the realities on the ground are in line with the lofty proclamations of the ASEAN documents, then and only then will the ASEAN Community be no longer a dream but a reality. It will be an ASEAN with a new identity, for it will represent a new moral and political order, able to articulate global issues in international forums with moral authority and coherence.

France rejects Le Pen


May 10, 2017

France rejects Le Pen in favour of Euro-centric Macron–Huge Challenges Ahead

by John Cassidy

http://www.newyorker.com/news/john-cassidy/the-huge-challenges-facing-emmanuel-macron-frances-new-president?mbid=nl_170508_Daily&CNDID=49438257&spMailingID=10976418&spUserID=MTg4MDU2MzU5MDA5S0&spJobID=1160695595&spReportId=MTE2MDY5NTU5NQS2

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As Emmanuel Macron and his supporters celebrated his big victory in the French Presidential election outside the Louvre on Sunday night, you could almost hear the sighs of relief from other parts of Europe, and also from this country. After a long and fractious campaign, which saw the two parties that have run France for decades humiliated, and the far-right National Front enjoying record levels of support, the center ultimately held. Which is good news all around.

Last November, it looked as if Donald Trump’s election, which followed the Brexit vote in Britain, might herald a wave of successes for far-right nationalist parties across Europe. That hasn’t happened. First in Austria, then in the Netherlands, and now in France, the spiritual home of European democracy, the extremists have been defeated in national elections. For now, at least, it looks as if Trump’s success may have marked the crest of a right-wing wave, rather than the upsurge.

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Victory for the Macronites as Europe sighs in relief–Ensemble, La France

In Sunday’s election, Marine Le Pen, the leader of the National Front, virtually doubled the share of the vote that her father, Jean-Marie, received in the 2002 Presidential election. But she didn’t get close to the forty per cent that she had breached in some opinion polls. Surveys taken in the past couple of weeks indicated that Macron would win by somewhere between twenty and twenty-five percentage points. In the event, his margin of victory was about thirty-one percentage points—65.5 per cent to 34.5 per cent. (This according to the French exit poll, which is much more reliable than its American counterpart.)

The endorsements Macron received from politicians of the center-right and center-left after he came out on top in the first round of voting helped his cause a lot, as did the critical coverage that almost all of the French media meted out to Le Pen. But, even allowing for these factors, the final result represented a stirring victory for a thirty-nine-year-old former technocrat and investment banker who had never run for office, and who only founded his independent political movement, En Marche!, last April.

In an address at his campaign headquarters, in the Fifteenth Arrondissement, shortly after the result was announced, Macron sought to project an image of himself as a sober and mature leader, someone fully prepared to enter the Élysée Palace. He also recapitulated some of the themes of his campaign, including his defense of liberal values, his support for the European Union, and his embrace of hope and optimism. “I will protect and defend France’s vital interests. I will protect and defend Europe,” he declared. He added, “It is a new page in our long history, and I want that page to be a page of trust and hope recovered.”

After thanking the outgoing President, François Hollande, for his services to the country, Macron said he would seek to overcome the divisions in French society that the campaign had highlighted. His main goal, he said, was to “calm people’s fears, restore France’s confidence, and gather all its people together to face the immense challenges that face us.” He went on, “I will fight against the division . . . With humility but with total devotion and total determination, I am going to serve on your behalf. Long live the Republic, and long live France.”

As this speech indicated, Macron is stronger on generalizations and appeals for unity than specific policy proposals. During the campaign, he pledged to cut government spending, reform the tax code, and loosen up France’s rigid labor markets—all this in an effort to make the French economy more dynamic. But he didn’t spell out many details.

On the French left, he is widely seen as the Gallic equivalent of Tony Blair, a youthful figure intent on forcing trade unions and workers to submit to the rigors of the global market. Skeptical conservative politicians point out that he served in Hollande’s Socialist government for four years, and that he promised not to scrap two pillars of the French welfare state: the thirty-five-hour work week and the retirement age, sixty-two.

It is unclear what sort of mandate Macron will have for carrying out his reform program. To a large extent, his first-place finish in the first round of the election represented a rejection of the traditional parties rather than a vigorous endorsement of his agenda. Hollande didn’t even enter the race because he is so unpopular. The candidate of the center-right Republican party, François Fillon, saw his campaign undone by a corruption scandal.

Similarly, Macron’s victory in Sunday’s runoff may have largely represented a rejection of Le Pen and the National Front, with its record of racism, anti-Semitism, and apologies for Vichyism. According to the exit poll, forty-three per cent of Macron’s voters cast their ballots primarily to keep out Le Pen. Although Macron’s margin was large, turnout was low by French standards, and many ballots were left blank. Clearly, lots of voters didn’t like either of the choices.

Much now depends on next month’s parliamentary elections, which will determine how much support Macron has in the National Assembly, which makes legislation. At the moment, the Socialists and their allies have a sizable majority. Macron’s En Marche! party is planning to field candidates in all five hundred and seventy-seven constituencies, but it’s far from clear how they will fare. Despite his personal victory, his centrist political movement is still young and untested.

Untitled (5)Through Inclusivity, Collaboration and Cooperartion

There is also a great deal of uncertainty about what impact Sunday’s result will have on the future of the E.U. By removing the possibility of a Le Pen Presidency, Macron’s victory lifted the gravest immediate threat to the union: a deeply Euro-skeptic government taking office in Paris, to go along with the one in London. Even before Macron arrived at the Louvre, Angela Merkel, the German Chancellor, had called and congratulated him. “She praised him for championing a united European Union that is open to the world,” Merkel’s spokesman said.

But one election result doesn’t mean that the E.U., which has just suffered through a lost decade in economic terms, can now mobilize enough popular support to survive and prosper. Macron supports open borders, free trade, free movement of labor, and greater efforts to accommodate refugees and assimilate Muslim minorities—all of which are under threat. His big idea is that, by showing that France is capable of serious internal reforms, the country will be able to persuade Germany to shift the E.U. toward a less austere economic policy, one more favorable to growth. Previous French Presidents have harbored similar ambitions that went nowhere in the face of Teutonic resistance. Can Macron do better?

But these are challenges for the future. Right now, it is enough to celebrate the defeat of right-wing extremism and to salute the victor. “What we have done, there is no comparison, there is no equivalent for that,” Macron told the cheering crowd outside the Louvre. “Everyone was saying it was impossible, but they didn’t know anything about France.” After he had finished speaking, the President-elect clutched his hand to his heart, closed his eyes, and led the crowd in a spirited rendition of “La Marseillaise.” Even from afar, it was hard not to join in.