Trump and the Truth About Climate Change


July 22, 2017

Trump and the Truth About Climate Change

by Joseph E. Stiglitz

http://www.project-syndicate.com

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Under President Donald Trump’s leadership, the United States took another major step toward establishing itself as a rogue state on June 1, when it withdrew from the Paris climate agreement. For years, Trump has indulged the strange conspiracy theory that, as he put it in 2012, “The concept of global warming was created by and for the Chinese in order to make US manufacturing non-competitive.” But this was not the reason Trump advanced for withdrawing the US from the Paris accord. Rather, the agreement, he alleged, was bad for the US and implicitly unfair to it.

While fairness, like beauty, is in the eye of the beholder, Trump’s claim is difficult to justify. On the contrary, the Paris accord is very good for America, and it is the US that continues to impose an unfair burden on others.

Historically, the US has added disproportionately to the rising concentration of greenhouse gases in the atmosphere, and among large countries it remains the biggest per capita emitter of carbon dioxide by far – more than twice China’s rate and nearly 2.5 times more than Europe in 2013 (the latest year for which the World Bank has reported complete data). With its high income, the US is in a far better position to adapt to the challenges of climate change than poor countries like India and China, let alone a low-income country in Africa.

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After 6 months in office, Trump has shown that he is incapable of getting his agenda going. He cannot get at the issues which require his leadership.

In fact, the major flaw in Trump’s reasoning is that combating climate change would strengthen the US, not weaken it. Trump is looking toward the past – a past that, ironically, was not that great. His promise to restore coal-mining jobs (which now number 51,000, less than 0.04% of the country’s non-farm employment) overlooks the harsh conditions and health risks endemic in that industry, not to mention the technological advances that would continue to reduce employment in the industry even if coal production were revived.

In fact, far more jobs are being created in solar panel installation than are being lost in coal. More generally, moving to a green economy would increase US income today and economic growth in the future. In this, as in so many things, Trump is hopelessly mired in the past.

Just a few weeks before Trump’s decision to withdraw from the Paris accord, the global High-Level Commission on Carbon Prices, which I co-chaired with Nicholas Stern, highlighted the potential of a green transition. The Commission’s report, released at the end of May, argues that reducing CO2 emissions could result in an even stronger economy.

The logic is straightforward. A key problem holding back the global economy today is deficient aggregate demand. At the same time, many countries’ governments face revenue shortfalls. But we can address both issues simultaneously and reduce emissions by imposing a charge (a tax) for CO2 emissions.

It is always better to tax bad things than good things. By taxing CO2, firms and households would have an incentive to retrofit for the world of the future. The tax would also provide firms with incentives to innovate in ways that reduce energy usage and emissions – giving them a dynamic competitive advantage.

The Commission analyzed the level of carbon price that would be required to achieve the goals set forth in the Paris climate agreement – a far higher price than in most of Europe today, but still manageable. The commissioners pointed out that the appropriate price may differ across countries. In particular, they noted, a better regulatory system – one that restrains coal-fired power generation, for example – reduces the burden that must be placed on the tax system.

Interestingly, one of the world’s best-performing economies, Sweden, has already adopted a carbon tax at a rate substantially higher than that discussed in our report. And the Swedes have simultaneously sustained their strong growth without US-level emissions.

America under Trump has gone from being a world leader to an object of derision. In the aftermath of Trump’s withdrawal of the US from the Paris accord, a large sign was hung over Rome’s city hall: “The Planet First.” Likewise, France’s new president, Emmanuel Macron, poked fun at Trump’s campaign slogan, declaring “Make Our Planet Great Again.”

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But the consequences of Trump’s actions are no laughing matter. If the US continues to emit as it has, it will continue to impose enormous costs on the rest of the world, including on much poorer countries. Those who are being harmed by America’s recklessness are justifiably angry.

Fortunately, large parts of the US, including the most economically dynamic regions, have shown that Trump is, if not irrelevant, at least less relevant than he would like to believe. Large numbers of states and corporations have announced that they will proceed with their commitments – and perhaps go even further, offsetting the failures of other parts of the US.

In the meantime, the world must protect itself against rogue states. Climate change poses an existential threat to the planet that is no less dire than that posed by North Korea’s nuclear ambitions. In both cases, the world cannot escape the inevitable question: what is to be done about countries that refuse to do their part in preserving our planet?

Trump Family Values and America’s Diminished Global Leadership


July 18, 2017

Trump Family Values and America’s Diminished Global Leadership

Amid revelations of Donald, Jr.,’s misguided meeting with two Russians, the President shows once again where his only loyalties lie.

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In the September 11, 1989, issue of The New Yorker, a twenty-eight-year-old writer named Bill McKibben published a lengthy article titled “The End of Nature.” The previous year had been especially hot––the country suffered one of the worst droughts since the Dust Bowl, Yellowstone was ablaze for weeks––and some Americans, including McKibben, had taken note of the ominous testimony that James Hansen, a NASA climatologist, gave before a Senate committee, warning that, owing to greenhouse gases, the planet was heating up inexorably. McKibben responded with a deeply researched jeremiad, in which he set out to popularize the alarming and still largely unfamiliar facts about climate change and to sharpen awareness of what they implied for the future of the planet and humankind:

Changes in our world which can affect us can happen in our lifetime—not just changes like wars but bigger and more sweeping events. Without recognizing it, we have already stepped over the threshold of such a change. I believe that we are at the end of nature.

By this I do not mean the end of the world. The rain will still fall, and the sun will still shine. When I say “nature,” I mean a certain set of human ideas about the world and our place in it. But the death of these ideas begins with concrete changes in the reality around us, changes that scientists can measure. More and more frequently these changes will clash with our perceptions, until our sense of nature as eternal and separate is finally washed away and we see all too clearly what we have done.

Last week, a hunk of Antarctica the size of Delaware, weighing a trillion metric tons, hived off from the Larsen C ice shelf and into the warming seas. Such events now seem almost ordinary—and harbingers of far worse. It is quite possible, the environmental writer Fen Montaigne wrote recently, in the Times, that, should the much larger West Antarctic Ice Sheet thaw and slip into the ocean, sea levels across the globe could rise as much as seventeen feet. This would have devastating implications for hundreds of millions of people, disrupting food chains, swamping coastal cities, spawning illnesses, sparking mass migrations, and undermining national economies in ways that are impossible to anticipate fully.

Around the time that this event was taking place, Donald Trump, who has lately detached the United States from the Paris climate accord and gone about neutering the Environmental Protection Agency, was prowling the West Wing of the White House, raging Lear-like not about the fate of the Earth, or about the fate of the Chinese dissident Liu Xiaobo, who was dying in captivity, but about the fate of the Trump family enterprise. In particular, he decried the awful injustice visited upon him and his son Donald, Jr., who had, in a series of e-mails last June, giddily advertised his willingness to meet with Natalia Veselnitskaya, a Kremlin-connected lawyer, to receive kompromat intended to undermine the reputation and the campaign of Hillary Clinton. He did not mention another participant in the meeting: Rinat Akhmetshin, a Russian-born lobbyist, who admitted to the A.P. that he had served in the Soviet Army, but denied reports that he was ever a trained spy.

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Natalia Veselnitskaya (L) and Donald Trump Jr.

The President argued that his son, “a high-quality person,” had been “open, transparent, and innocent.” This was a statement as true as many, if not most, of the President’s statements. It was false. Donald, Jr., had concealed the meeting until he could do so no longer. Social-media wags delighted in reviving the Trump-as-Corleone family meme and compared Donald, Jr., to Fredo, the most hapless of the Corleone progeny. This was unfair to Fredo. On Twitter, Donald, Jr., had spoken in support of cockeyed conspiracy theories and once posted a photograph of a bowl of Skittles, writing, “If I had a bowl of skittles and I told you just three would kill you, would you take a handful? That’s our Syrian refugee problem. . . . Let’s end the politically correct agenda that doesn’t put America first.”

Still, the President, loyal to nothing and no one but his family, argued that “a lot of people” would have taken that meeting. Leaders of the U.S. intelligence community did not whistle their agreement. They were quick to say that such a meeting was, at best, phenomenally stupid and, at worst, showed a willingness to collude with Moscow to tilt the election. Michael Morell, a former acting director of the C.I.A., told the Cipher Brief, a Web site that covers national-security issues, that Trump, Jr.,’s e-mails are “huge” and indicate that the President’s inner circle knew as early as last June that “the Russians were working on behalf of Trump.” In the same article, James Clapper, the former director of National Intelligence, said that the e-mails were probably “only one anecdote in a much larger story,” adding, “I can’t believe that this one exchange represents all there is, either involving the President’s son or others associated with the campaign.” Intelligence officials speculated that the tradecraft employed in setting up such a meeting was possibly a way to gauge how receptive the Trump campaign was to even deeper forms of coöperation. In any case, the proper thing to have done would have been to call the F.B.I. Now the country is headed toward a “constitutional crisis,” Clapper said, and the question has to be asked: “When will the Republicans collectively say ‘enough’?”

Good question. Mike Pence, Paul Ryan, Mitch McConnell, Ted Cruz, business leaders such as Stephen Schwarzman and Carl Icahn, and a raft of White House advisers, including the bulk of the National Security Council, cannot fail to see the chaos, the incompetence, and the potential illegality in their midst, and yet they go on supporting, excusing, and deflecting attention from the President’s behavior in order to protect their own ambitions and fortunes. They realize that Trump’s base is still the core of the G.O.P. electorate, and they dare not antagonize it. The Republicans, the self-proclaimed party of family values, remain squarely behind a family and a Presidency whose most salient features are amorality, greed, demagoguery, deception, vulgarity, race-baiting, misogyny, and, potentially—only time and further investigation will tell—a murky relationship with a hostile foreign government.

In the near term, if any wrongdoing is found, the Trump family member who stands to lose the most is the son-in-law and consigliere, Jared Kushner, who accompanied Donald, Jr., to the meeting with Veselnitskaya and Akhmetshin. Kushner seems to see himself and his wife, Ivanka, as lonely voices of probity and moderation in an otherwise unhinged West Wing. Why they would believe this when their conflicts of interest are on an epic scale is a mystery. But such is their self-regard. It is said by those close to Kushner that, if he fears anything, it is to repeat the experience of his father, Charles, who, in 2005, pleaded guilty to charges of making illegal campaign contributions and hiring a prostitute to entrap his brother-in-law, and spent fourteen months in an Alabama penitentiary.

Meanwhile, as the Trump family consumes the nation’s attention with its colossal self-absorption and ethical delinquencies, the temperature keeps rising. ♦

This article appears in other versions of the July 24, 2017, issue, with the headline “Things Fall Apart.”

 

DJT is Making America a G-20 Pariah


July 11, 2017

Wake Up: DJT is Making America a G-20 Pariah

by John Cassidy

Australian journalist Chris Uhlmann demolishes Trump after G20: ‘biggest threat to the west’

Mr Trump is a man who craves power because it burnishes his celebrity. To be constantly talking and talked about is all that really matters. And there is no value placed on the meaning of words. So what is said one day can be discarded the next.

So what have we learned?

We learned Mr Trump has pressed fast forward on the decline of the US as a global leader. He managed to diminish his nation and to confuse and alienate his allies.He will cede that power to China and Russia — two authoritarian states that will forge a very different set of rules for the 21st century. Some will cheer the decline of America, but I think we’ll miss it when it is gone. And that is the biggest threat to the values of the West which he claims to hold so dear.– Chris Uhlmann

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Just when you think you’ve seen it all, out comes another Donald Trump tweet, or tweetstorm, to prove you wrong. On Sunday morning, America’s forty-fifth President, having just returned to Washington from the G-20 summit in Hamburg, Germany, pronounced his trip “a great success for the United States.”

It says something about Trump’s grip on reality that he could reach such a conclusion after a summit in which he and the rest of the U.S. delegation were utterly isolated on major issues such as climate change and international trade. In fact, the only way that German Chancellor Angela Merkel’s diplomatic sherpas were able to cobble together a communiqué that everyone could sign onto was to include a section that noted America’s decision to withdraw from the Paris climate accord, but which added, “Leaders of the other G20 members state that the Paris Agreement is irreversible.” The symbolism here was powerful: in a global forum that the U.S. government, especially the Treasury Department, helped to create during the late nineteen-nineties, Trump’s America stood alone.

Of course, the G-20 is far from perfect: the protesters assembled outside the Messehallen Convention Center, most of whom were peaceful, were right about that. The organization’s membership is arbitrary—Italy is a member, Spain isn’t; South Africa is in, Nigeria is out—and its pronouncements can reflect the sometimes hidebound thinking of finance ministers and central bankers. But the G-20 is also one of the few political forums for tackling global economic problems, such as financial contagion, tax evasion, and climate change (which is ultimately a market failure). And, until Trump’s election, U.S. leadership was widely recognized as an integral part of any G-20 get-together.

The message of Hamburg was that Trump’s “America First” rhetoric—and his inability to see international agreements as anything other than zero-sum deals—have changed that situation, at least temporarily. The rest of the world hasn’t turned its back on the U.S.; the country is still far too big and powerful for that to happen. And, in any case, many foreign leaders harbor respect for the values that the U.S. espouses and the global order that it has helped maintain for seven decades. At the moment, however, they are looking for ways to work around Washington and its rogue President.

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Outplayed by Valdimir Putin of Russia?

Judging by his Twitter comments on Sunday, Trump is proud of having turned the U.S. into a G-20 pariah. But even more revealing, and disturbing, was the readout he delivered on his meeting last Friday with Russia’s Vladimir Putin. Here it is, not quite in its entirety (as, since we’ve heard Trump criticize Barack Obama and the “fake news” media many times before, I’ve left out those bits):

I strongly pressed President Putin twice about Russian meddling in our election, He vehemently denied it. I’ve already given my opinion. . . . We negotiated a ceasefire in parts of Syria which will save lives. Now it is time to move forward in working constructively with Russia! Putin & I discussed forming an impenetrable Cyber Security unit so that election hacking, & many other negative things, will be guarded . . . and safe. Questions were asked about why the CIA & FBI had to ask the DNC 13 times for their SERVER, and were rejected, still don’t . . . have it. . . . Sanctions were not discussed at my meeting with President Putin. Nothing will be done until the Ukrainian & Syrian problems are solved!

In the spirit of generosity, it should be acknowledged that the final sentence here was a welcome one. And Moscow’s many critics in Congress will surely remind Trump of it if he decides, during the coming months, to relax the restrictions that the Obama Administration imposed on Russia following its annexation of Crimea.

But the rest of what the President wrote on Sunday was a mess of confusions and contradictions. Trump didn’t out-and-out confirm the claim made by Sergey Lavrov, Russia’s Foreign Minister, that he had accepted Putin’s denials of any Russian involvement in hacking during the election. But Trump made perfectly clear that he still rejects the view of the U.S. intelligence community that Russia was responsible for hacking and that, for policy purposes, he considers the matter to be closed. Any effort to get to the bottom of what happened—much less impose some real punishment on Moscow—will be subjugated to the imperative of “working constructively with Russia.”

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Sen. John McCain, R-Ariz.and Sen. Lindsey Graham, R-S.C., on Capitol Hill in Washington have criticised the Trump-Putin proposal to create a joint “Cyber Security unit” to safeguard future elections.

That brings us to the nuttiest part of the tweetstorm, perhaps the nuttiest thing an American President has said in decades: the proposal to create a joint “Cyber Security unit” with Moscow to safeguard future elections. Whether Trump himself came up with this ingenious proposal, or whether it was Putin’s idea, the Tweeter-in-Chief didn’t say. But it drew instant ridicule from both sides of the political divide.

“It’s not the dumbest idea I have ever heard but it’s pretty close,” the Republican senator Lindsey Graham told NBC’s “Meet the Press.” Representative Adam Schiff, the top Democrat on the House Intelligence Committee, said on CNN, “If that’s our best election defense, we might as well just mail our ballot boxes to Moscow.”

What was Trump thinking? As ever, we have to consider the possibility that he wasn’t thinking at all, and what he says doesn’t mean anything—not even when he is reporting on his dealings with the leader of a rival nuclear power. “Donald Trump is a man who craves power because it burnishes his celebrity: to be constantly talking and talked about is all that really matters,” Chris Uhlmann, the political editor of the Australian Broadcasting Corporation, said, in remarks about the G-20 summit that went viral. “And there is no value placed on the meaning of words, so what’s said one day can be discarded the next.”

The other reading is a darker one, and it involves taking Trump at his word. For whatever reason, he still appears to see Putin as a potential partner—maybe even one who can be trusted with some of America’s most sensitive secrets, such as the workings of its voting systems. If this is indeed the case, it matters little whether Trump is a Russian dupe or a Russian stooge: he needs to be stopped.

On Sunday night, Trump disavowed part of what he had said earlier in the day, writing in another tweet, “The fact that President Putin and I discussed a Cyber Security unit doesn’t mean I think it can happen. It can’t-but a ceasefire can,& did!” This message illustrated Uhlmann’s point about the half-life of Trump’s utterances, and also confirmed the truth of the Australian journalist’s over-all conclusion about the President’s trip to the G-20 meeting: “So what did we learn? We learned that Donald Trump has pressed fast forward on the decline of the United States as a global leader.”

Managing The Trump Phenomenon with Prudence


June 17, 2017

Managing The Trump Phenomenon with Prudence

by Jorge G. Castañeda

https://www.project-syndicate.org/columnist/jorge-g–casta-eda

Professor Jorge G. Castaneda was Mexico’s Secretary of Foreign Affairs from 2000-2003, after joining with his ideological opponent, President Vicente Fox, to create the country’s first democratic government. He is currently Global Distinguished Professor of Politics and Latin American and Caribbean Studies at New York University, and is the author of The Latin American Left After the Cold War and Compañero: The Life and Death of Che Guevara.

Trump’s domestic opponents should be careful what they wish for, and America’s allies should try to find a way to engage with his administration more effectively. Like it or not, the world’s best option is to ensure that the next three and a half years are as successful – or at least as resistant to disaster – as possible.–Jorge G. Castaneda

The world’s view of US President Donald Trump’s administration is changing for the worse. In fact, the chaos and controversy that have marked Trump’s short time in office have deepened doubts, both inside and outside the United States, about whether his presidency will even survive its entire four-year term.

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Europe’s perspective was articulated most clearly by German Chancellor Angela Merkel. After a contentious NATO summit and a discordant G7 meeting, she concluded that the US, under Trump, can no longer be viewed as a reliable partner. “The times in which we could rely fully on others,” she stated pointedly, “are somewhat over.”

Merkel’s statements were driven partly by disagreement between Trump and Europe on climate change, trade, NATO (particularly Article 5, its collective defense clause, which Trump refused to endorse), and relations with Russia. But disagreement on such issues reflects divisions within Trump’s own administration, raising questions about who, if anybody, is actually in charge.

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White House Director of Strategic Communications Hope Hicks, chief of staff Reince Priebus, chief strategist Steve Bannon and policy adviser Stephen Miller | Getty

Consider Trump’s decision to withdraw the US from the Paris climate agreement. The move was advocated by Trump’s chief strategist, Steve Bannon, and his speechwriter, Stephen Miller. But Secretary of State Rex Tillerson, as well as Trump’s daughter, Ivanka, and his son-in-law, Jared Kushner – both of whom are official White House advisers – also may not have supported withdrawal from the accord, despite Tillerson’s public defense of his boss’s decision.

Trade is another internally disputed issue. Bannon opposes the existing order of global openness, as does Peter Navarro, who heads the White House National Trade Council. Secretary of Commerce Wilbur Ross supports open trade, but not without reservation. Similarly, US Trade Representative Robert Lighthizer would prefer bare-knuckle negotiations to disruption, though he is already in a spat with Ross.

On NATO and Russia, Tillerson has echoed Trump in pressuring the Alliance’s European members to increase their defense spending. But he has also taken a harder line on Russia than Trump, calling for a strong and united approach by the US and Europe. While National Security Adviser H.R. McMaster agrees with Tillerson in theory, turf battles between the two posts’ occupants – a time-honored tradition – have already begun.

Such infighting has raised concerns far beyond Europe. As one Latin American foreign minister told me recently, “Apparently everybody is fighting with everybody over everything.” Add to that the investigation into the Trump campaign’s relationship with Russia, as well as the administration’s plummeting approval ratings, and it is easy to understand why some are doubting whether they should bother to engage with Trump at all. Mexico’s President Enrique Peña Nieto has postponed meeting with Trump indefinitely, and other countries, too, are placing ties with the US on hold.

With a premature end to Trump’s presidency becoming less farfetched by the day, it is worth asking how it could come about. There are three possibilities.

The first and best-known route is impeachment: a majority in the House of Representatives would indict Trump for “high crimes and misdemeanors,” and a two-thirds majority in the Senate would convict him, removing him from power. Such an outcome – which would require the support of 20 Republican representatives and 18 Republican senators, plus all Democrats in both houses – remains highly unlikely. But everything could change if the investigation into Russia’s attempts to influence the 2016 election and the possibility of collusion with Trump’s campaign reveals a smoking gun.

The second option, per Section 4 of the 25th Amendment to the Constitution, would require the vice president and the cabinet or Congress to declare the president “unable to discharge the powers and duties of his office.” This seems even more unlikely than impeachment, unless some of Trump’s behavior – like his middle-of-the-night tweets or private rants against his aides (most recently, Attorney General Jeff Sessions) – clearly indicates neurological dysfunction or psychopathology.

The third option, which some have called the “Nixonian solution,” is the most intriguing. In 1974, President Richard Nixon resigned before Congress could vote to impeach him. Weeks later, Nixon’s successor Gerald Ford granted him a full and unconditional pardon for all possible crimes.

In Trump’s case, such a resignation could be spurred by the desire for a similar pardon. While Trump cannot be indicted on criminal charges while president, he can be prosecuted for illegal behavior after he leaves office.

Moreover, both Kushner, who has been accused of attempting to set up a back channel for secure communication between the White House and the Kremlin, and Ivanka would be subject to prosecution if they were found to have engaged in illegal communications or activities with Russian agents or officials. Trump’s two eldest sons, who run his business empire, may also be liable for misdeeds. If this threat becomes salient, Trump may prefer to resign and secure a pardon for all involved, rather than endure an impeachment process that may well end with him losing the presidency anyway.

But while Trump’s opponents might like to remove him from power, any of these scenarios could be highly damaging to the US and the rest of the world. American participation, if not leadership, is indispensable to international cooperation in areas like global trade, climate action, and responses to all manner of crises, whether natural, humanitarian, or nuclear. Moreover, Trump’s isolationism doesn’t imply US irrelevance or passivity; a distracted or disrupted America could be much worse.

Given this, Trump’s domestic opponents should be careful what they wish for, and America’s allies should try to find a way to engage with his administration more effectively. Like it or not, the world’s best option is to ensure that the next three and a half years are as successful – or at least as resistant to disaster – as possible.

Malaysia Practises KorekEconomics


June 12, 2017

Malaysia Practises KorekEconomics (Dig-Economics)

by Rais Hussin Mohamed Ariff

http://www.malaysiakini.com

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Finance Minister Najib Razak–The Proponent of KorekEconomics

COMMENT | The history of taxation is synonymous with the rise of the state. When kings and warlords could not go on plundering and pillaging the people, they switched to taxation to prevent the farmers and settlers from avoiding the punitive measures.

By soft pedalling on the extraction, the state was born. Mancur Olson, an economist, referred to the state as the evolution from the “stationary bandit”. Paul Collier, at Oxford University, spoke of the logic of using the state to collect rents systematically, rather than to steal sporadically and in a spurious manner too.

In Malaysia, under the current administration, the two concepts that separate stealing from collecting taxes have been collapsed into one. Both are two sides of the same coin.

By introducing the tourism tax, for example, it seems to be aimed at foreign tourists. Yet, does anyone remember “Cuti-Cuti Malaysia?” This is an ongoing campaign that encourages Malaysians of all ages to travel within the country.

Yet, the moment you do, any five-, four- or three-star hotels you stay in means you would incur an additional cost that will go to the current administration. This ranges from RM 20 per night in a five-star hotel to RM 5 per night in a three-star hotel.

Thus, it doesn’t matter if you are a high-end traveller or a low-end traveller. The administration of Prime Minister Najib Abdul Razak is there to extract a portion of your hard earned income that you have set aside for a family holiday.

Digging deep for ‘korek economics’

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In other words, in addition to the goods and services tax (GST), your income tax and potentially the service tax too, the government wants to put its hands into your pockets. And they will dig deep to get what they want, in what can only be known as “korek economics”.

“Korek economics” is not based on collection. It is driven by the degree to which the Malaysian economy has become ruined, or “koyak” in Malay, the lingua franca of Malaysia.

In 1MDB, Malaysians are now saddled with, allegedly, a debt in excess of RM44 billion. When the debt of other government-owned companies are taken into account, the debt is easily more than 80 percent of the GDP.

Not forgetting the on-budget and off-budget debts. Off budget debts are debts created through bond issuance by an entity wholly owned by the government, with guarantees by the government.

Debts like the astronomical ECRL project, which is priced at an inflated price of RM55 billion and funded through debts from China. With an estimated three percent interest rate, seven years deferred payment and 240 months of repayment instalment, it will cost the government or the taxpayers a whopping sum of RM99.6 billion!

If we use the East Coast passenger load to find the breakeven ticket price one way from KL to Kota Bahru, it will cost a whopping RM3,586 one way, the same price for a return economy class air ticket to Siberia, Russia. Get the point?

Not happy with the revenue drawn from GST, the Malaysian government has offered a mere 15 percent discount to more than half a million graduates who remain unable to pay back their PTPTN loan. This harms the ability of the graduates to live an ordinary life. Given the youth unemployment is three times the national average, they seem to resign to the fact that they are in hopeless zone.

Thus, the process to “korek” Malaysia has not merely happened in the heart of Kuala Lumpur, where a hole is dug deep, without any structures on it, but it is proliferating across the whole country. Welcome to Curi-curi Malaysia.


RAIS HUSSIN MOHAMED ARIFF is a supreme council member of Parti Pribumi Bersatu Malaysia (Bersatu). He also chairs the Bersatu Policy and Strategy Bureau.

 

The Costs and Benefits of SOCIAL INCLUSION


June 10, 2017

The Costs and Benefits of SOCIAL INCLUSION

by Dr. Lim Teck Ghee@www.malaysiakini.com

COMMENT | Amongst inclusion, integration, affirmative action, ethnic preference or similar policies implemented to redress perceived socio-economic differences or imbalances in social groups, probably the longest lived and arguably most successful of those pursued by the world’s nations have been those of Malaysia in the field of education.

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The beginnings of this achievement in education can be traced to active measures undertaken by the British colonial government to upgrade the economic progress of Malays in 1950 through the establishment of the Rural Industrial Development Authority (Rida).

According to an official history account, Rida had first opened its doors to some 50 students to help in the training of rural Malays in 1956.

Following independence and the May 13 racial violence, Rida morphed to become Majlis Amanah Rakyat or Mara as everyone today knows it.

Since then, this modest educational component of Rida/Mara has grown to become the largest higher education institution in the nation.

Today, Universiti Teknologi Mara (UiTM) comprises one main campus, 13 state campuses and 22 satellite campuses. With 17,000 academic and non-academic staff, UiTM offers over 500 programmes ranging from foundation to postgraduate level.

It has some 170,000 students – all bumiputeras and a small number of international students – and teaching is fully conducted in English.

There is no disputing the benefits and advantages that ethnic preference policies in higher education have had for the Malays. UiTM can be said to have spawned an entire generation of the Malay middle and upper class. It has also been the catalyst to the rapid proliferation of Malays in key targeted professional and high income groups during the New Economic Policy (NEP) and post-NEP era.

Putting UiTM under the microscope

The Economic Planning Unit does not appear to have updated a key table showing the racial proportion of professional and high income groups for some years now.

This is probably because Malays have comprised the largest number among accountants, architects, dentists, medical doctors, lawyers, veterinary surgeons, engineers and surveyors in the country for at least one decade, if not longer now.

Less easy to assess are the costs and the impact of this racially structured affirmative action education and training agency on the country’s manpower needs and talent pool. The most contentious issue relates to the closing of the university’s doors to non-Malay students.

Although the university’s Pro-Chancellor, Arshad Ayub, in 2015 called for opportunity to be given to non-bumiputeras to study there, so as to encourage healthy competition and produce more intellectuals among students, his proposal – even though he qualified it by stating that these opportunities should be opened at post-graduate levels and not at diploma and bachelor’s degree levels – has proven to be a political minefield and non-starter.

Contentious issues aside, it is also unclear today the extent to which the Malay poor – indeed, the entire bumiputera poor – are the prime beneficiaries according to the mission objectives of the institution.

Or whether the institution is catering to a privileged Malay middle and upper class which can well afford to meet its educational needs in the same way that the rest of the country’s citizenry are doing. If the latter is happening, not only are non-Malays being marginalised, but also poor Malays and poor non-Malay bumiputeras.

According to a recent report, 3,000 Sijil Pelajaran Malaysia (SPM) and Sijil Tinggi Pelajaran Malaysia (STPM) school-leavers who failed to pursue further studies despite obtaining excellent results were offered placements at UiTM in 2016.

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Vice-Chancellor Professor Emeritus Hassan Said said the opportunity was being given to to students from poor families and rural areas who could not continue their studies due to various factors, among them financial constraints. This total – even if increased greatly – will be a miniscule of the total number of 200,000 students envisaged for the year 2020.

A stand alone comprehensive and independent review of UiTM is not only necessary. It is overdue for at least three reasons.

One is the dominant role of UiTM in the country’s higher education and manpower planning system.

The second is the very large amount of public expenditure that has been spent during the past four decades on the institution. According to the latest data, the operating budget for UiTM alone in 2016 came up to RM2.23 billion of the total RM7.57 billion allocated to all 20 public universities in the country, or nearly 30 percent.

Even after the latest round of budgetary cutbacks, UiTM is slated to receive an allocation of RM1.67 billion of the RM6.12 billion allocation for all public universities in 2017.

 

Finally, a rigorous assessment is necessary because the government is continuing to position Mara and UiTM as the crucial driver of bumiputera economic and educational development for the coming decades.

Meanwhile there should be concern about the quality of higher education provided by UiTM. In the current Wikipedia article on UiTM, the table below shows that hardly any progress has been achieved by the university in its standing among universities in Malaysia, the region and world.

What is preventing UiTM from living up to its self characterised description of being “a research-intensive entrepreneurial university’ leading the way for Malaysia to become an innovation-based and knowledge-based economy are just two of many questions that need to be asked by all concerned Malaysians, not just politicians and the university’s staff and alumni.