Governing Singapore, beyond Lee Kuan Yew


December 3, 2017

Governing Singapore, beyond Lee Kuan Yew

by Cherian George

http://www.newmandala.org

Image result for Lee Kuan Yew the icon

 

One of the late Lee Kuan Yew’s most admirable acts of foresight was to usher out Singapore’s first-generation leaders in order to hasten the rejuvenation of the People’s Action Party (PAP). Giants like Goh Keng Swee, S. Rajaratnam and E.W. Barker retired from the government in the 1980s, when they were still younger than Ronald Reagan and Donald Trump were upon entering the White House. In the short term, this represented a massive underutilisation of talent. But that’s how determined Lee was to make sure that the next generation—Goh Chok Tong, Ong Teng Cheong, Tony Tan, S. Dhanabalan and others—would emerge from the shadow of their seniors to secure the future of the ruling party.

PAP exit management under Lee had one major omission, though. Himself. Lee felt he needed to stick around. Since his designated successor Goh Chok Tong had no objections, Lee didn’t accompany his first-generation comrades to the early retirement he had so strenuously advocated. After 1991, when Singapore got a new premier for the first time in 32 years, various terms were used to describe Lee’s new position. Senior Minister. Minister Mentor. Goalkeeper. Whatever the title, for the next 20 years, the simple political reality was that LKY was still around. At The Straits Times where I used to work, word came from way above my pay grade that we were not to say he stepped down. He stepped aside.

https://i0.wp.com/www.newmandala.org/wp-content/uploads/2017/12/Lee-Kuan-Yew-2-1024x768.jpg

A portrait of Lee Kuan Yew by Chinese painter Ren Zhenyu in an upmarket Singapore gallery. (Author photo)

It could have been much worse. He could have held on to the top job like Cuba’s Fidel Castro, who also won power in 1959 but would only concede it to death, 47 years later. Or like Zimbabwe’s Robert Mugabe, who before he was ousted by the military was saying he’d run for another five-year term in 2018, at the age 94. Or he could have done a Mahathir Mohamad, who never met a potential or actual successor he didn’t eventually consider an enemy to undermine or incarcerate.

If Lee didn’t join this club, it wasn’t because he lacked self-belief or the stomach for undemocratic methods. Perhaps his autocratic tendency was tempered by his hyper-rational, unsentimental view of life. He knew time changes everything, and that people grow old, get weak, and die. So, while convinced that Singapore needed an omnipotent executive branch to run the place, he also knew its personnel would have to be rotated before they succumbed to their mortality. He also differed from the typical dictator in that his family was clean. Corrupt strongmen avoid the exit door because they fear it will lead them and their kin straight to prison. The Lees didn’t have that problem.

Whatever the reasons, Lee Kuan Yew didn’t follow the jealous despot script. Instead, he institutionalised a system of leadership renewal. Therefore, while the PAP as a party is unapologetic about its desire to dominate politics indefinitely, PAP leaders as individuals accept they have to make way for younger replacements.

Things could have been worse; but they could have also been better. Political self-renewal must mean more than replacing older leaders with younger ones. It may require systemic change as well. This is where the PAP fell short. Lee and his junior colleagues failed to adapt their governance model to the post-LKY era. They underestimated how much the system had evolved around Lee’s style and philosophy. After three decades, the state had become like a corporate computer system patched together by a brilliant IT guy who refuses to adopt off-the-shelf solutions used by other firms, and insists on installing his own custom-built software upgrades year after year. He is conscientious enough to train apprentices and write a voluminous troubleshooting guide. But only he knows how to get optimum performance out of his system. Eventually, the company will find out the hard way that it should have adopted more resilient open-source solutions that wouldn’t depend on their champion IT guy being on call 24/7.

Image result for The Brilliant Lee Hsien Loong with Lee Kuan Yew

 

The globally respected operating system that Lee rejected while he was in office was the democratic template of checks and balances to avoid over-concentrated power. Robust institutions insure against the mortality and fallibility of human leaders. Lee placed his bets instead on a conveyor belt of able men unfettered by onerous constraints. This had been Lee’s unique contribution to the founding generation of PAP leaders. The master political strategist opened up space for brilliant policy entrepreneurs like Goh Keng Swee and Hon Sui Sen to work their wonders. He did this partly with his persuasive skills, but also by pushing aside legal, institutional and human obstacles in the way of an increasingly dominant administration.

Lee failed to acknowledge that this formula couldn’t last indefinitely. His miscalculation produced at least two policy innovations that proved costly for the PAP, and for which the party is still paying a price. These were the elected presidency and the ministerial pay formula. Both were the products of a mind obsessed, as it always had been, with the challenge of protecting Singapore governance from the vagaries of public opinion and the popular vote. They were hatched during that period from the late 1980s to the 1990s when Lee was handing over to the second-generation leadership, and anticipating what might go wrong. And both became Frankenstein’s monsters that made his successors’ jobs harder, not easier.

Related image

HE Halimah Yacob,  Singapore’s Eighth President

The elected presidency was Lee’s insurance policy against a so-called freak election that could bring the wrong party into power. The insurgents might only last a single parliamentary term, but they could cause permanent damage in that time, Lee feared. They could raid the country’s financial reserves and replace key public sector appointment holders with incompetent cronies. Lee decided that the office of the president had to be given the power to veto such plans. This new executive role would require the president to be directly elected by the people.

Related imageIn 2011, the PAP’s favoured candidate Tony Tan won the Presidential Election but with only 35% of the vote. Presidential elections have been more contentious than Lee Kuan Yew anticipated.

Lee’s constitutional fix, meant to make Singapore more stable, ironically created one of its main sources of political uncertainty. The freak election scenario remains a whimsical notion; but in the meantime, presidential elections have opened up a new front to challenge PAP dominance. This has forced the PAP to shift more attention away from governance and towards politics—the exact opposite of what Lee spent most of his career trying to do. To address the risk that presidential elections will deviate from the government’s preferences, it has had go through various contortions, including reducing the power of the president in relation to the unelected Council of Presidential Advisers, raising the pre-qualification bar for would-be candidates (including reserving this year’s election for Malay candidates), and lecturing Singaporeans that they must not politicise the presidency. The rancour surrounding presidential elections—and the attendant cost to the unifying purpose of the head of state—had been predicted by Singaporeans who submitted thoughtful feedback during the Select Committee hearings leading up to the 1991 constitutional amendments. Lee had brushed aside their concerns.

The pay formula for ministers and senior civil servants was another radical idea born of Lee’s frustration with an obtuse Singapore public. He was justifiably concerned that skyrocketing private sector pay would weaken the public sector’s ability to recruit top talent. He was correct to conclude that the government could not let its remuneration lag too far behind. Where he went wrong was to decide that, instead of arguing it out in parliament every time it needed to revise its pay structure, the government should create an automatic formula pegging public officials’ salaries to those of top earners such as lawyers, bankers and corporate chief executives.

Singaporeans could see the fundamental flaws in the idea. A league table of top salaries in fields like banking and corporate management would show very high figures year after year, but those salaries were not going to the same people every year. Firms and individuals would enter and leave the list; they were in risky, competitive markets. Like boy bands, they might be at the pinnacle for only a few years. In contrast, the government’s stars would continue to get top dollar for a couple of decades, their pay being pegged to the private sector’s equivalent of Westlife in the 1990s, the Jonas Brothers in the 2000s, and One Direction in the 2010s. This just didn’t smell right. Many Singaporeans also had deep concerns about so explicitly marketising the relationship between leaders and led.

Lee Kuan Yew would have none of it. He was determined to do what he had always done: use his political clout to create a structural fix that, he thought, would put an end to unproductive debates and let the government get on with the job. Concluding his marathon speech during the 1994 parliamentary debate on the formula, Lee declared, “I say I am prepared to put my experience and my judgement against all the arguments that doubters can muster. In five to ten years, when it works and Singapore has a good government, this formula will be accepted as conventional wisdom.”

In the realm of embarrassing 1990s predictions, this one vies with 3Com founder Robert Metcalfe’s statement the following year:I predict the internet will soon go spectacularly supernova and in 1996 catastrophically collapse.” For instead of depoliticising the question of public sector remuneration, Lee’s formula bequeathed to his successors possibly the era’s single most toxic policy move. Exactly as critics predicted, it infected government–people relations with cynicism and distrust.

The PAP had prided itself on its willingness to make unpopular decisions in the country’s long-term interest, but now when ministers resisted the popular will, their motivations would be questioned—of course they don’t care about the people, they only care about their high-paying jobs. The market-pegged formula also made people contemptuously unforgiving of inevitable mistakes—this is what million-dollar salaries get us? Another serious unintended but predictable consequence was to make the civil service resistant to change, by disincentivising risk-taking among officers earning salaries many know they can’t command elsewhere.

Lee Kuan Yew admitted to making mistakes, especially in pushing zero population growth too aggressively in the 1970s. But he couldn’t really be faulted for that one, since practically every government looking at similar demographic trends arrived at the same policy prescriptions. In contrast, Lee’s ideas to restructure of the presidency and public sector pay in the 1990s were idiosyncratically his own. And they were not cases of random error but systematic error, as scientists would put it. They resulted from his peculiar obsession with protecting the state from the unpredictability of democratic politics. He had more or less succeeded in doing so in earlier decades—like that special IT guy, constantly troubleshooting and tinkering. But he overestimated his ability to design plug-ins for Singapore’s operating system that would continue to function smoothly after he left.

Shamefully, he—jointly with Goh Chok Tong—was allowed to announce his resignation a week after the election, and before colleagues whose presence in cabinet Singaporeans had been querying for years. It was an undeservedly ignominious end to a government career that would be eulogised profusely four years later.

Lee and Goh said they were doing it to indicate “that the PM can and will revise and revamp his policies … to give PM and his team the room to break from the past, and … to make it clear that the PAP has never been averse to change”. When he accepted their resignations a few days later, Lee Hsien Loong allowed their rationale to stand—to “leave it to me and my team of younger ministers to take Singapore forward into the future”—thus throwing out of the window two decades of PAP assurances that Lee Kuan Yew’s presence in cabinet had never been an obstacle to progress, since ministers had minds of their own.

For more than a decade, Lee Kuan Yew had been codifying his beliefs in his memoirs and other books. This exercise was a symptom of the PAP’s understandable anxiety that its unique formula for good governance would not survive him. But it also contributed to the old pragmatism of the PAP giving way to dogmatism. After LKY’s final, emotional exit in February 2015, the depth of his influence became even more apparent. LKYism became a kind of quasi-theology, with members of the governing elite falling over one another to cite his words and acts, and thus show that they were the legitimate interpreters and inheritors of Singapore’s ultimate oracle. Being “against Mr Lee’s values” emerged as a damning label to stick on opponents within the establishment. Lee had long been called the founding father of the republic, but in 2017, Deputy Prime Minister Teo Chee Hean took the quantum leap of declaring that all of us—as individuals, not just collectively—are “sons and daughters” of Lee Kuan Yew. Of course, Teo did not actually possess the power to rewrite everyone’s birth certificate, but the remark revealed Lee’s place in the minds of the PAP’s senior leadership.

Teo’s declaration came during the parliamentary debate on the Lees’ feud over their family bungalow at 38 Oxley Road. This was a debate that engrossed the establishment and most ordinary Singaporeans. It centred on what to do with the building that was Lee Kuan Yew’s private residence during his adult life. The debate missed the point. The question we should be asking is how much room to give to the Lee Kuan Yew that will reside in the Singaporean mind long after his death.

This essay is extracted from Cherian George’s self-published anthology, Singapore, Incomplete: Reflections on a First World Nation’s Arrested Political Development. The book is his first for a general audience since his 2000 volume, Singapore: The Air-Conditioned Nation.

Trumpism and the Philosophy of History


August 22, 2017

Trumpism and the Philosophy of History

by Mark S. Weiner*

https://www.project-syndicate.org

Mark S. Weiner is the author of The Rule of the Clan, winner of the Grawemeyer Award for Ideas Improving World Order. In 2015, he was a Fulbright Scholar in the Department of Legal Philosophy of the University of Salzburg.

Image result for Bannon and Trumpism

Bannon and the destruction of the liberal order

 

Stephen Bannon may be out, but don’t breathe a sigh of relief. His exit poses a new, more fundamental danger for liberals worldwide. With the departure of the Trump administration’s foremost court intellectual, liberals may be tempted to maintain the strategic tack they took during the presidential campaign, when they criticized Donald Trump mainly for his temperament, not his ideas, and by implication characterized his followers on the same basis.

Such criticism is understandable but ultimately self-defeating, because it subverts the very basis of the liberal, open society famously defined by Karl Popper: critical, scientific engagement at the level of ideas.

Image result for karl popper tolerance

What’s more, failing to recognize what Bannon called “the Trump Presidency that we fought for and won” as a philosophical movement means missing an opportunity to develop liberalism’s core values in the context of our own time. Forging a path between elite managerialism and authoritarian populism – the daunting task of liberalism for our age – requires knowing precisely where we are starting.

In this light, now is a crucial moment to reflect upon Bannon’s worldview – especially his philosophy of history. Trumpism, as a hostile takeover of the Republican Party, was built from the start on an elegiac slogan: “Make America Great Again.” Temporality was at the core of its campaign brand, guided by nostalgia for “the good old days.” Bannon has sought to develop this brand into a robust popular historical consciousness, and his exit from the administration will only liberate him from the constraints of actually existing institutions.

Abundant evidence of Bannon’s views about the nature of historical change are found in his documentary film Generation Zero (2010), which in retrospect looks like a playbook for the 2017 campaign.

The film argues that the 2008 financial crisis was caused by the liberalization of American moral values during the 1960s, when the Baby Boomers’ narcissism led to a culture of political graft and economic greed, underwritten by the marriage of government and business elites. These elites socialized the Baby Boomers’ debts and foisted them onto future generations and the forgotten middle class, leading to economic carnage and lost faith in public institutions. From this nadir, Bannon explains, America will be either destroyed or renewed.

The film’s narrative structure, particularly its driving movement toward cataclysm and rebirth, is provided by William Strauss and Neil Howe’s The Fourth Turning (1997), a best-selling work of sociology. Many commentators have noted with alarm the influence of the book’s apocalyptic tone on Bannon’s worldview. But more troubling is the book’s essentially Jungian argument about the mechanism of historical change.

More precisely, the book superimposes Jungian psychological archetypes onto the view, drawn from historians such as Arnold Toynbee, that history follows predictable, recurring patterns. According to Strauss and Howe, a finite set of mythic archetypes characterizes not only individuals but also the generations to which they belong. Their differing qualities provide the engine for inter-generational conflict and historical change.

Just as there are four stages of an individual human life, so there are four stages within a hundred-year era. A “Hero” generation, like that which fought World War II, is inevitably followed by an “Artist” generation, which necessarily gives rise to a moralistic “Prophet” generation that makes way for a “Nomad” generation – which in turn gives birth to a new generation of Heroes.

The balance and interaction between these generations over time leads a society to undergo a predictable set of “turnings,” from an optimistic “High” to a rebellious “Awakening,” and from there through a corrosive “Unraveling” leading to a fraught “Crisis,” which ends with a new “High.” The Crisis stage always hits American society particularly hard, because the United States has so profoundly embraced a linear understanding of time. Yet come it will, and when it does, America will either collapse or be made great again.

For Strauss and Howe, history is cyclical, its content is mythic, and its study leads to prophesy. This perspective, they argue, offers a number of concrete personal benefits, assuming that readers can unlearn the teachings of linear history (including, bracingly, “obsessive fear of death”). Most important, it offers readers “a more personal connection with the past and future,” and the feeling of being “active participants in a destiny that is both positive and plausible.” It offers readers a sense of control.

Image result for karl popper tolerance

Popper had a name for such predictive historical thinking, so contrary to the scientific method. He called it “historicism.” His foundational contribution to modern liberalism, The Open Society and its Enemies (1945), is an analysis of historicism’s roots and implications for liberal democracy. In other words, our use today of the very term “open society” derives from a withering critique of the philosophy of history Bannon embraces.

Popper viewed Hegel as the main source of historicism in the modern era. But he traces the historicist attitude back to Plato, whose anti-democratic ideologies of permanent social hierarchy he interprets as a reaction to the breakdown of Greek tribalism – an effort to recover lost certainties.

Indeed, Popper views all forms of contemporary historicism, even the “remarkable” work of Toynbee himself, as an effort to resuscitate tribalism’s “closed society.” For Popper, prophetic history represents a misguided philosophical reaction against freedom, change, and individualism.

In the midst of World War II and the fight against fascism, Popper offered an alternative to the neo-tribalism of historicism: science and rationalist philosophy, or “the tradition of challenging theories and myths and of critically discussing them.” And he provided a view of historical change that rejects inevitability. Only this humane response to tribalism’s breakdown, he asserted, could set the world free and maintain its liberty.

Popper’s analysis is as important today as it was in his own time. Following Bannon’s departure, the worst thing liberals could do is to ignore Trumpism’s animating principles – for by doing so, they will subvert their own.

Cambodia Update–Hun Sen maintains firm grip on power


August 3, 2017

Cambodia Update–Hun Sen maintains firm grip on power

by Dr. Sorpong Peou

http://www.eastasiaform.org

Image result for Hun Sen

 

After 25 years of global peacebuilding efforts that began with the UN intervention early in the 1990s, Cambodia is still far from achieving a stable peace based on genuine democracy and respect for human rights. Government threats to, and sometimes violent crackdowns on, critics and power contenders continue unabated. After more than 30 years in power, Prime Minister Hun Sen still shows no signs of wanting to retire from his political struggles.

 

Before the 4 June 2017 commune elections, Hun Sen ramped up diatribes and displayed acts of intimidation against members of the opposition Cambodian National Rescue Party (CNRP). He rang alarm bells by saying that opposition victories would bring the country back to chaos and instability. He threatened to seize the personal property of CNRP President Sam Rainsy (who was still in exile for political reasons) and ‘burn down’ the houses of his opponents.

The threats Hun Sen issued against his opponents aimed at sending a clear message that they would not be allowed to win in future elections. Defence Minister General Tea Banh also warned that the military would ‘smash the teeth’ of those who protested a Cambodian People’s Party (CPP) win.

Even after the commune elections, in which his CPP won a majority, Hun Sen escalated the war of words, warning the opposition against taking any action that would undermine the election result. Most shocking was when he told his opponents to prepare their coffins and expressed his willingness to ‘eliminate’ between 100 and 200 of them.

There is no reason to think that Hun Sen, now 64, is beginning to mellow out and get tired of politics. Age is never a good determinant of leaders’ political lifespans in countries like Cambodia, and neither is political unpopularity or personal fatigue.

There are several reasons why Prime Minister Hun Sen will not call it quits any time soon. The first is that he cares about his political legacy, beginning with the overthrow of the murderous Khmer Rouge regime in 1979 and the progress he thinks his party has since brought to the country. After all, he has presided over one of the fastest-growing economies in Asia. High economic growth rates continue to provide him with a source of legitimacy.

The second reason is that Hun Sen thinks that he has enough bullets to keep his opponents at bay. Since the violent putsch he led in 1997 that resulted in the downfall of his then co-Prime Minister Prince Norodom Ranariddh (leader of the royalist party that won the UN-organised election in 1993), he has emerged as the country’s dominant political leader. The multiparty system has been turned into a hegemonic party system. State institutions, particularly the armed forces and the judiciary, have become more personalised and politicised than ever before. Opposition officials are correct when admitting that they have no means of violence to wage any war against the ruling party, and Hun Sen knows this to be true.

Image result for cambodia land of wonder

 

Still, what Hun Sen covets most is not absolute power — he is smart enough to know that seeking it would be self-destructive — but rather achieving enough security to remain in power comfortably. Speculation about the possibility of the CPP’s attempt to eliminate the opposition, for instance, is contradicted by the fact that the CNRP was allowed to compete in elections and win seats.

What Hun Sen fears most is the ultimate power of political democracy — the third reason why he will not retire from politics. His bellicose speeches and unstatesman-like manner reveal a great deal of truth about his insecurity rooted in hidden political weaknesses.

What makes the CPP elite feel less secure now is that their powerbase is much shakier than they want it to be. An election loss might result in greater factionalism within the party — and possibly intra-party violence. The armed forces are weakly held together at the top by Hun Sen, without whom the institution might even engage in factional warfare.

The ruling elite also think they cannot afford to lose power in a political environment where Hun Sen — and his family, as well as loyalists — feel that an election loss might subject them to prosecution, despite assurances from their foes to the contrary.

The trouble with countries like Cambodia — long afflicted by the persistence of weak state institutions, as well as a lingering history of betrayal, retribution and bloodshed — is that good intentions alone can never be a good enough foundation for trust-based peacebuilding.

The blood politics of survival is still evident in Cambodia and the hegemonic party system remains prone to tension and violent conflict. In this fragile environment, democracy is unlikely to survive or thrive unless the ruling elite’s insecurity is addressed and their powerbase begins to implode to the point where their weak domination ends.

Dr.Sorpong Peou is a Professor with the Department of Politics and Public Administration at Ryerson University, Toronto.

 

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/

 

Image result for Open Up Japanese companies or perish

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.

Image result for Tiger

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. 

 

Unveiling Donald J. Trump – the Revolt against the Establishment


February 25, 2017

The HUFFINGTON POST.

 

Unveiling Donald J. Trump – the Revolt against the Establishment

Joergen Oerstroem Moeller, Visiting Senior Fellow, ISEAS-Yusof Ishak Institute, Singapore

http://www.huffingtonpost.com/entry/unveiling-trump-the-revolt-against-the-establishment_us_58accad3e4b0598627a55e1a

Image result for donald trump phenomenon

Why are people turning their backs on the ‘Western’ model? The Reason: Donald J Trump making America Great Again

Why are people turning their back on the ‘Western’ model? How could it happen and even more so in such a short time span? While most of us associate the recent string of events to failed regimes or fictional story plots, it now haunts the U.S. – playing out like a reality show except the consequences are real and cannot be tuned out by a press on the remote control – however tempting that might be[1].

The elite has cut the link to the people, who retaliate by turning against the elite. A revolt!

Image result for The Enlightenment Economics

Conceptually industrialization was anchored in enlightenment, science, rationality, and logic. Ethically a higher degree of decency followed. The nexus was check and balances, which not only framed economic prosperity, rising equality and fairness, but also opened the door for the majority of people to influence political decision making.

Now, negative side-effects start to overrule the positive side of the model. Polls show that a majority of people in industrialized countries feel that their children will NOT live in a better world. Consensus and coalition building – the mainstay of the check and balances system – is no longer the plinth of our world order – world view, weltanschaung. Political correctness emphasizing tolerance and respect and crafted to block a repetition of 1914 to 1945 is now rejected yes ridiculed and cast aside. It is legitimate, in some places even laudable to vilify other people and advocate discrimination on the basis of ethnicity and religion.

Subjectivity has replaced objectivity blurring the difference between truth and non-truth. Between facts and made up figures. Today any viewpoint is legitimate. ‘My point of view is as good as yours!’ No insistence on evidence.

Industrialization.

Image result for The Enlightenment Economics

Adam Smith’s ‘The Wealth of Nations’ gave birth to economic theory explaining capital formation conducive to growth. The market – economic thinking and behavior – precipitated change and dynamics after centuries of near stagnation. Concomitantly economic policy started to guide the political system (liberal representative democracy) in its endeavors to control the economy and distribute wealth between capitalists and non-capitalists.

It was not a global model, but build around the notion of rich (insiders) and poor (outsiders). Countries could be ‘relegated’ (as was the case for Argentina one hundred years ago), but not promoted. Sometimes around 1975 the outsiders challenged the insiders. Promotion, incompatible with the model, started. The result quickly became competition for jobs, welfare, and resources on a global scale. The industrial age edifice began to crack.

Image result for The Enlightenment Economics

Philosopher  of the Enlightenment– John Locke

http://www.sparknotes.com/history/european/enlightenment/terms.html

Capitalism is a marvelous growth machine especially combined with globalization, but aberrations, distortions and negative side-effects must be kept under control. The challenge from the socialist/communist model did precisely that. When that challenge disappeared in 1991, the self-imposed barriers for egoistic behavior melted away. The dominating perspective became short-term profit defined by pure market economy disregarding potential or real negative societal side-effects – what an economist would label external diseconomies on a societal level/scale.

Globalization introduced economies of scale which:

– Generated enormous profits for multinational companies.

– Opened the door for minimizing tax by shuffling revenue and profits around among countries.

– Suppressed the wage share of Gross Domestic Product (GDP) in rich countries destabilizing and impoverishing their middle class.

– Dislocated manufacturing in rich countries; small-scale plants in local communities disappeared and people felt abandoned, desperate, and without hope.

The upside – enormously important – was that hundreds of millions of people in poor countries were lifted out of poverty.

The political problem gradually suffusing the agenda was that the negative side-effects were mainly, almost exclusively felt in rich and industrialized countries with the upside blessing Emerging Markets and Developing Economies (EMDE). Suddenly the dichotomy between ‘haves’ and ‘have nots’ changed dramatically – a complete reversal of roles.

Technology introduced the skills factor to determine distribution of income. Three groups of “workers” emerged. Those having the skills in demand asked for and got a premium. A thin layer. Those doing repetitive functions, the middle class, were squeezed. Those in lower paid service jobs were forced to accept lower wages under pressure from the middle class above them in the social strata now competing for their jobs and immigrants in social strata below them. In the U.S. wage differentials and inequality was falling 1920 to 1940, stable until the 1970s where after inequality started to explode – almost exactly at the time when Information and Communication Technology (ICT) plus globalization began to put its mark on the economy.

Social losers tried to be heard by voting for the opposition, but the opposition fared no better than the government because there was no answer. In reality government and opposition was the same side of two coins!

Image result for Victims of The Enlightenment Economics

University of Manchester Economics students aim to tear up free-market syllabus

And who are the losers? They are broadly speaking people unable or unwilling to cope with change – not necessarily unemployed or poor. In Europe and the U.S. many of them are found among the middle class being eradicated, disappearing as the stabilizing factor. Year 2000 US, Europe, and Japan accounted for 2/3 of global middle class. prognosis tells that year 2020 it will be about half and year 2050 about 15%. The privileged status built up over the industrial as skilled workers – the hero of industrialization and its main beneficiary – was suddenly taken away from them; other social groups or ethnicities fare better. Since 2007 close to ten million new jobs have been created in the U.S., but whites have lost one million jobs. This discloses the losers as white Anglo-Saxon protestant males powerful during the industrial age fighting almost literally to maintain their privileges.

They constitute a large segment of the population, but they are not the ‘people’. Did the British people vote for Brexit? No. Figuring in the turn out 38% of the electorate did. We read that the American people elected Donald Trump. Wrong. Hillary Clinton got almost 3 million more votes. Figuring in the turn out approx. 26% of the Americans voted for Trump. The depressing interpretation is that a large and growing share of the population does not find it worthwhile to operate inside the system. The system is not theirs! They vote against the system or stay away. The silver lining is that if the system – the establishment – can get the act together and deliver, those people may return. The game is not lost.

The future.

It is fascinating to reflect on how things will turn out, but foolhardy to put forward a picture of the world order to come. Mankind might cut the link to nature and live in a totally artificial environment – mankind may choose the opposite and opt for a return to stronger human relations while respecting the cycle of nature, as our ancestors actually did – or be so confused and bemused under the onslaught of globalization and technology that we end up with some kind of superstition like in the middle ages.

What we can do is to search for some fundamental trends controlling the future development; intercept them to build a system/model strong enough to keep the ship steady until the fog has cleared and a better view of where we are going beckons.

If civilization is a work in progress, we should mobilize discipline and self-discipline to rally people to a common purpose aiming at:

– Societies as a whole instead of egoistic behavior.

– Long term thinking/behavior instead of short-term effects.

– Sustainability instead of throw away consumption.

– A new kind of self-esteem among human beings with people feeling they are a spoke in the wheel contributing to society and receiving something in return.

– Mutual respects leaders – people instead of mutual disrespect and distrust.

The future main thread is common and shared values gradually crowding out economics as the main motivating force. The objective is a new social contract. The vehicle is communication via social networks. The playing field for communication becomes level instead of top/down or down/top or passive only (radio/TV). The social networks should belong to the people and used by the people. Neither commercialized nor allow concentration of knowledge opening for abuse of power.

Political system.

Power distance separates politicians’ values from voters’ values. In many countries, barely 2/3 of the electorate turns up signaling indifference. Membership of political parties tells the same story.

A lower power distance can be sought through roll back of centralization and concentration to lower power distance. Turn local communities into yes LOCAL and small communities; reject increasing returns borrowed from economics for public services. Look for solutions to combine social networks with human contacts. The service provider – welfare, education, and health – must be close to people to cater for their basic needs and not perceived as business.

There are innumerable challenges and opportunities embedded in social networks. In principle, they ‘should rally people to a common purpose’. In reality the opposite happens: Segmentation of public opinion through vociferous and importunate persons/groups hijacking the agenda. Social networks become divisive, disruptive, and increase power distance. Human contacts so vital a glue for unity and coherence fade away.

Segmentation/fragmentation comes into play as people communicate more, but with like-minded people. Those who contact us have analogous opinions. We search, maybe unconsciously, for opinions & views similar to our own ones. A closed-circuit network appears with people reinforcing one another in already held opinions eschewing contradictory information. It is no wonder that extremists’ views have established themselves and got a grip on the political agenda simultaneously with the explosion of social networks.

Using social networks anybody can try to set the agenda. If the message resonates with the public the cascade effect guarantees success irrespective of facts, objectivity, and merit. The ‘newcomers’ are proactive, offensive, snippy, aggressive, using rude/disparaging vocabulary, and dispense with objectivity, facts, and the truth. The establishment appears as reactive, defensive, even boring with politically correct vocabulary which does not strike a chord with the public – and do care about objectivity, facts, and the truth. Studies show that many, maybe most people decide in the split of a second based on instinct, intuition, own experiences and background. We live in a world dominated by a pressure of impression: Catch attention every day and use simple language. The attention span is short so select your audience and appear to be like them. Our ‘self’ is the template for judging others. This opens the door for tailor-made interference in people’s decision making. Recently Alexander Nix, CEO of Cambridge Analytica was quoted saying ‘we have a massive database of 4-5,000 data points on every adult in America’. Allegedly the company helped Trump to win.

The establishment can also use this model! And doesn’t because it has severed the links to the people.

Economic model.

Economics has always loved the idea of general equilibrium, but for the economic system only. Now a kind of societal equilibrium could be the objective.

Short term profits from a purely economic point of view distort the social fabric. Many people look – in vain – for stability and security – human security, economic security, and social security. After disruptive and explosive change over the preceding half century – a burst of activity rarely seen in history – there is a growing preference for calm down, digest, and find out how to use technology and globalization – instead of letting these two big forces, disruptive at that, steer where we go.

Relative prices reflect market perspectives rewarding short-term profit regardless of potentially negative societal effects (inequality, unfairness, and low social mobility), pollution, and depletion of resources. Incorporating societal effects other than economics the scoreboard in its entirety may not be profitable for economic operators – business. So it is not done.

Therefore, they should be changed to reflect these societal aspects. Making it expensive to use resources, punish pollution, and put a price on activities beneficial for society for example care for the elderly and couching children. The immediate objection is that such policies interfere in the market mechanism – the reply is: Yes, that is also the purpose. The market mechanism may have served us well, but can it continue to do so under different conditions? Can the market handle ‘less’ in a socially acceptable way? Doubtful.

Relative factor prices favor technology and robotics. Economically that makes sense. But not for those people losing their jobs. We cannot and should not stop technology and robotics, but provide jobs in labor intensive areas – among other things societal purposes – by remunerating such work.

The theory of the firm dating back to the 1930s explains why it is profitable – short term market economy profitability – to organize production within the firm (concentration and standardization/ uniformization) rather than relying on a multitude of contracts (de-concentration and diversification). Transaction costs become lower. Main advantage is to have the workforce inside the company – figuratively under one roof.

Information and Communication Technology (ICT) has shot that theory down. Now transaction costs outside the firm is cheaper than inside the firm mainly because of savings in overhead costs. Part time work and one person companies are going up – in some cases selling the product to firms instead of doing it inside the firm. It’s odd to read every month about employment and unemployment not taking into account how many people have left companies to do the same work outside companies.

The paradox is that the number of people employed by firms in rich countries goes down while at the same time concentration of finance and knowledge goes up not only shaking the established relationship between workforce and the company, but cutting the bond between firm and workforce, which was the core of the industrial age social contract. They are no longer indispensable for each other.

Conclusion.

The golden days of economic growth and distribution of wealth will not return. The creeping dehumanization and denaturalization is being questioned – is this really what we want? The shift to non-economic values cannot be integrated in the existing political system and economic model.

The challenge now is to keep societies together under burden sharing and adapt to stability and human security. Groups as an alternative framework for organization of societies enter the picture. The risk is that values and social networking break societies into a small number of groups with limited inter-group mobility – are you with us or against us? A kind of social immobility. The group serves as service provider – you cannot live outside the group. ISIL is an illustration of this as was the communist party. You belong to us forever.

The key is a social contract embodying

– The shift in preferences from economics as the dominant element to reflect societal values.

– A reinstatement of confidence and trust between politicians and voters.

– Building a bridge over the rising gap between interests of firms (owners and management) and interests of the workforce.

– Make the service provider visible in daily life, close to the people and increasingly delivering stability, security and peace at mind.

Joergen Oerstroem Moeller is Visiting Senior Fellow, ISEAS Yusof Ishak Institute, Singapore and Adjunct Professor Singapore Management University & Copenhagen Business School. Honorary Alumni, University of Copenhagen.

[1] ‘The Veil of Circumstance’ [ISEAS PUBLISHING, November 2016] offers a deeper analysis of the transformation our societies is undergoing.

(2). ISEAS –Yusof Ishak Institute. PERSPECTIVE. ISSUE: 2017 No. 11 ISSN 335 667

SINGAPORE 21. FEBRUARY 2017.

 “Trump and Brexit:  Some Lessons for Southeast Asia” by Joergen Oerstroem Moeller @ https://www.iseas.edu.sg/images/pdf/ISEAS_Perspective_2017_11.pdf.

Executive Summary

  • Donald Trump’s victory and Brexit illustrate that a considerable share of the population in the U.S. and Britain feel left behind, side-lined and neglected by recent globalising trends.
  • Despite their revolt, the establishment and the existing political systems have a chance to stage a comeback, especially if President Trump fails to live up to expectations of those who voted for him.
  • A surge in migration over the last 15 years in the US and Britain has also put the question of identity on the agenda. Although most countries can assimilate migrants over the longer term, a huge inflow of migrants in a short time span tends to generate serious negative opposition.
  • Rising unemployment in small towns in these countries has reinforced the identity problem, and initiated emigration to cities, undermining what were once stable societies and dilapidating their towns.

    Southeast Asian countries have lessons to learn from this development and should be aware of the risks involved as urbanisation in the region continues unabated.

End of summary.

 

 

Untapped Women Power: The key to a brighter Malaysia


January 12, 2017

Untapped Women Power: The key to a brighter Malaysia

by Dr. Anas Alam Faizli*

Received via e-mail from the writer)

Image result for women empowerment

Free them to pursue their dreams and they will make Malaysia great again

THE High Income Nation ambition or the “number game” has been our central economic discussion for the past seven years. Countless policies have been crafted for this end game but the solution remains elusive.

I have a revelation. The key and the secret to achieve this lies within humanity’s other half; Women. Let me explain.

Women empowerment could potentially unlock an additional income per capita of approximately US$2,300 for the country; which will easily enable an overnight achievement of our target.

The preamble of the Universal Declaration of Human Rights mentioned that: “Whereas recognition of the inherent dignity and of the equal and inalienable rights of all members of the human family is the foundation of freedom, justice and peace in the world.”

However, the world is not ideal. It is true that all humans are equal, but some are more equal than others, and none more unequal than the status of women itself and everyone must be held responsible.

Women form one half of humanity, and are as equal to men in every aspect, except physical strength — hence, weaker sex, and more beautiful to look at — hence, fairer sex. Unfortunately, in this modern and progressive era, gender discrimination and stereotyping is still alarmingly prevalent.

Women in Tertiary Education

Image result for women in universitiesThis is what they do in Iran and Malaysia too is heading in that direction, thanks to our Ulamaks and UMNO salaried  Mullahs

The society at large has always been fast to dismiss women’s achievements. This also include women’s remarkable achievements in tertiary education; where women have shattered a glass sphere that was once only available to men.

This is not surprising considering tertiary education has traditionally been dominated by men throughout the centuries. Some have even argued that this is due to the simple fact that there are more women nowadays compared to men.

Data, however, contradict this. According to the Department of Statistics Malaysia (DOSM), as of 2016, Malaysia’s gender ratio indicates that there are 107 males to every 100 females. That brings the actual figure of 16.4 million males and 15.3 million females in Malaysia. Over the past decade, there has been a big shift in the gender balance; women have begun to outnumber men in university enrollments.

This global trend is seen not only in developed countries such America and Europe, but it also prevails in Asian countries such as Brunei, China, Philippines, and Indonesia; with Malaysia being an extreme case in the region.

Image result for woman graduates of the University of Malaya

In 2015, close to 55 percent of higher education intakes (public and private universities, community colleges, and polytechnics) were dominated by females at 280,296 versus males at 230,858. Females showed a higher domination in public universities’ intake at 106,277; equivalent to 63 percent, versus males at 61,850.

Note: On November 4, Nancy Malkiel, Professor Emeritus of History at Princeton visited Churchill College to give a talk to launch her new book “Keep the Damned Women Out”: The Struggle for Coeducation — exploring the decision in the 1960s and 70s by several Ivy League universities in the USA and colleges in Cambridge and Oxford to ‘go mixed’.

Her research took her to the archives of the three Cambridge colleges that were the first to go co-educational: Churchill, King’s, and Clare.

Churchill College is proud of being the first men’s college in Cambridge to decide to admit women. So it is salutary to remember that it was the last Cambridge college to be founded for men only. What was unexceptionable in 1960 had become unthinkable by 1970. A wave of reforms swept through higher education, and coeducation was one element in a multilayered revolution. On the larger canvas, Churchill’s decision in 1969 was unremarkable. In just five years, 1969-74, dozens of colleges on both sides of the Atlantic ‘went mixed’, including Princeton, Yale, Dartmouth, and Vassar, and three Cambridge and five Oxford colleges. The momentous decision at Churchill is set in the wider context in an impressive new book by Nancy Weiss Malkiel, ‘Keep the Damned Women Out’: The Struggle for Coeducation (Princeton University Press).

Nancy Malkiel speaking to a seated audience in the Churchill Archives Centre

Professor Nancy Malkiel speaking at Churchill College, November 4, 2016.

She argues that, on both sides of the Atlantic, the move to coeducation was largely inspired, not by high principle, but a desire for positional advantage. Colleges were worried, as ever, about their competitive edge for the best students. Young people increasingly did not want to be at single sex institutions. In Britain, whereas Cambridge had just 10 per cent women among its undergraduates in 1965, the new universities reached ratios of around 40 per cent. Admitting women was part of a wider move toward diversifying student cohorts. In the USA that typically involved religion and race (Jews, Catholics, African Americans), in Britain it meant school background (grammar instead of public schools). There was little high-minded talk about justice and equality, and, in so far as general principles were expressed, it tended to be the language of national efficiency: avoiding wastage by exploiting a larger pool of young talent. The primacy of the competitive edge expressed itself nowhere better than in Princeton’s chaotic scramble to admit women in 1969 so as not to be upstaged by Yale.

According to Malkiel, the switch to ‘coed’ was more difficult in the US than in Oxbridge. The alumni were far more powerful and controlled purse strings, and the male dining clubs were more intransigent (it took the New Jersey Supreme Court to force the Princeton clubs to open up). Her book is depressingly rich in examples of visceral hostility. A Dartmouth alumnus expressed the sentiment which she uses for the title of her book. Women students experienced condescension from staff and horrendous misogyny from male students, especially in initiation rituals. She argues that the change in Oxbridge was much smoother (though I think she’s too roseate about the lack of sexism there). True enough, Oxbridge had been educating women for a century, and, similarly, Harvard and Radcliffe had been interacting for decades, whereas at Yale and Princeton the change was more abrupt. One thing certainly made things easier at Churchill: nobody could say that the College’s 600 year heritage was being betrayed. (At Clare, the Master wittily and accurately retorted that in 1870 it had been said that allowing Fellows to marry betrayed a 500 year heritage and would ‘distract’ men from scholarship.)

The relative impacts of college heads, faculty, and students varied as drivers of change. In Oxbridge, college heads sometimes set the pace, especially Sir Eric Ashby at Clare College. At Churchill, the decision was forced by the Fellows against the opposition of the Master, Sir William Hawthorne, with the Senior Tutor Dick Tizard leading the way. When Alison Finch became the second female Fellow in 1972 Sir William told her, ‘Well, Miss Finch, I voted against the admission of women’.

In the early coed years, Yale and Princeton maintained caps on female numbers, declaring that the production of ‘leaders’ (which meant men) must not be diminished. There was a cap at Churchill too, with the parallel case that the College had been founded to produce ‘leaders’ for industry and technology. But the quota, like single-sex staircases, and female tutors for female students, soon lapsed.

It is good to see a key aspect of Churchill College’s short career now becoming the stuff of history books. Malkiel’s Ch. 21 takes for its title a remark by Sir John Colville to Sir Winston Churchill when Winston dared to suggest that maybe his new College could have women. That would be ‘like dropping a hydrogen bomb in the middle of King’s Parade’.

 — Mark Goldie, November 2016

_______________

Nonetheless, their male counterparts have balanced out the numbers in private universities; where the ratio is close to 50:50. The same year also saw 169,198 females successfully graduating from higher education versus males at 120,596.

These numbers are showing that women are in the forefront in higher education. With over 50,000 more females whom have managed to graduate as compared to males in 2015 alone, imagine the existing disparity formed over the past decade.

Unfortunately, significant gains by women in tertiary education have not translated into better labour market outcomes. Aside from the teaching industry, women are not seen to be participating dominantly in the workforce nor as leaders in the corporate, legal, academic, economic or the political scene in proportion to the educational gain demonstrated.

Labour Force Participation Rate

In 2015, our women’s labour force participation rate was at a modest 54.1 percent (out of the total 9.9 million potential women labour force), a far cry from the men’s rate of 80.6 percent.

This number has improved only slightly from 47.2 percent in the year 2000.

Aside from the formal sector, women are seen to be prospering in the informal sector where they are offered more flexibility in working hours.

Aside from the formal sector, women are seen to be prospering in the informal sector where they are offered more flexibility in working hours.

Our neighbours are faring better where women’s labour force participation rate for Myanmar is at 75.2 percent, Cambodia 78.8 percent, Laos 76.3 percent, Vietnam 73 percent and Thailand at 75.2 percent.We are left questioning, “Where have the women gone to and where are they now in our society?”

The next set of questions would be, “what are the socio-economic benefits in empowering women?” and “What are the challenges and how should we address them?”

A study by the World Bank on Malaysian women participation in the workforce found a pattern that suggested Malaysian women older than the age of 26 are more sensitive to life-cycle transitions as compared to other countries in the world.

Married women both in urban and rural areas have the lowest participation rate. Additionally, Malaysian women also retire earlier than their male counterparts.

The World Bank attributes this factor to women being caught in a “double burden” syndrome of managing both the home and caring for their children or the elderly. Another contributing factor to the labour force participation rate gap is that women that leave the workforce after the age of 26 will never return.

This is called a “single-peaked” profile. As opposed to other countries in Asia, an example being in Japan and Korea, they have “double-peaked” profiles; where there is a recovery in labour force participation after women hit the age of 35.

These conditions leading to a woman’s decision to remain or withdraw from the labour force must be assessed within the context of Malaysian cultural and social values to determine the appropriate policy environment and incentives to retain a larger number of women in the labour force after marriage.

Aside from the formal sector, women are seen to be prospering in the informal sector where they are offered more flexibility in working hours.

One of the most popular routes taken by these women are by conducting businesses through social media platforms.

Women in Politics, Local, and State Governments

Since our independence, Malaysian women have had the right to vote in elections and to hold public office. Today, women comprise one half of the registered voters and are active in political life. However, instead of being political leaders themselves, a majority of women have continued the trend of only engaging themselves primarily in raising financial support, turning out in full force during elections, carrying out routine tasks related to daily campaigning, and facilitating voter participation during the election process for their political parties.

The old-fashioned gender roles remain where women are adherent of male leaders and retain traditional positions in political parties. The number of women gaining electoral office in the federal and state governments is also dismal. Gender inequality still persist in this sphere, as indicated by the extremely low percentage of women at all levels of political office.

Malaysia ranks number 156 out of 189 countries in the number of women representatives in the national parliament at a dismal 10.4 percent or 23 seats of the total 222 parliamentary seats. The state assemblies also indicate a similar trend at a measly 10.8 percent or 55 seats represented by women, of the total 505 state parliamentary seats.

Perhaps Malaysia should take a cue from our neighbours, Vietnam (24 percent), Lao (25 percent), Singapore (25 percent), and the Phillipines (27 percent) where women have higher levels of political participation.

The same situation in the Executive arm of the Malaysian Government also transpires in the Legislature. Since 1957, the number of women ministers has never exceeded three and that remains as of today where of the 35 members Cabinet; one is a Women Minister and the other two are ministers in the Prime Minister’s Office. This scenario is similar across the board for all state governments while Terengganu and Sarawak have never appointed a female Exco.

The Pakatan Rakyat State Government in Selangor made a breakthrough when they lined up four women of the total ten exco positions in 2008. However, they did not do the same for Perak when they were in power, failing to appoint any female excos despite having the second highest number of women to the State Assembly and Selangor reduced their women excos to two in 2013.

Women are also observed to be given limited appointments as local authority council members where they are only appointed to 362 (14.1 percent) of the total 2,567 positions.

Women Leaders in Civil Service and Corporations

As of 2015, there are 718,044 (57.1 percent) women civil servants from a total of 1,257,166 civil servants in professional and support services (Grade 1-54), however in the top management tiers (Grade Jusa C and above), only 1,498 (37.1 percent) women made it from the total of 4,041 government servants.

Subsequently only 5 (11.4 percent) were appointed as director of government’s statutory bodies, 13 (31.7 percent) as deputy secretary-general and 7 (29.2 percent) as secretary-general.

While in corporations, according to Bursa Malaysia for the year of 2015, women held 26.3 percent of top management positions across public listed corporations. However, women only form 15 percent of the total members of Board of Directors in MOF (Incorporated) companies.

Women have previously held high positions as the Bank Negara Governor, Chairman of the Securities Commission, Managing Director of a Bank, Bar Council Chairman, Chief Executive Officers of Air Asia X and SME Corp, and many others. Women remain an exception in these positions and not the norm.

Women as Educators and in the Legal System

There are 421,828 teachers in Malaysia and close to 72 percent of them are women. However, only 3,580 (37.2 percent) women made it as the primary school master, or secondary school principal or the residential school principal out of the total 9,615 positions. There is a sizeable gap here considering the number of women teachers who made it into decision-making positions.

The same disparities persist in Universities, while there are 11,931 (56.6 percent) women lecturers of the total 21,077, and only 13 (19.12 percent) of 68 are appointed as deputy vice-chancellors and four (20 percent) of 20 are appointed as vice chancellors.

Women in the legal system are growing in numbers, which hopefully will be the key to inducing reforms that will improve the legal status of women. Women represent 3 (27 percent) out of the 11 judges in the Federal Court, 12 (41.4 percent) judges from a total of 29 judges in the Court of Appeal and 29 out of the 58 (50 percent) judges in the High Courts.

The Syariah courts are lagging behind where women represent only 8 (10.8 percent) out of the total 74 judges. In the legal practice, women form 8,551 (51.7 percent) of the total 16,537 lawyers.

Like teachers, there still persists a disparity in the gender ratio between junior and senior lawyers as opposed to female lawyers in partner positions and even in the executive committee of Bar Councils in the country. More women should be placed in decision-making positions.

Empowering Women for Socio-Economic Benefits

A study by the Organization for Economic Cooperation and Development (OECD) on Gender Inequality found that increasing the share of household income controlled by women changes spending in ways that benefit children and family as a whole. The study also found that increasing women and girls’ education contributes to a higher economic growth for about 50 percent in OECD countries over the past 50 years.

Additionally, another study by Dr Emmanuela Gakidou from University of Washington found that; for every one additional year of education for women of reproductive age, child mortality is decreased by 9.5 percent (based on historical data from 219 countries from year 1970 to 2009).

McKinsey & Company (2014) deduced that women’s economic equality is good for businesses. Companies reap bountiful benefits in terms of organisational effectiveness by increasing leadership opportunities for women.

Companies with three or more women in senior management functions score higher in all the measured dimensions of organizational effectiveness.

Women are able to perform better in this particular arena as they generally have higher aspirations and emotional intelligence.

If we are to be on par with the women labour participating rate of Singapore which is at 63 percent; an additional 1.4 million more women in the workforce are needed and if we are to use Canada as a model at 74 percent; that’s an additional 2.3 million women needed in the workforce. That’s only half from the total missing women in action of 4.5 million.

The World Bank estimated that the 2.3 million women missing in action from the workforce can leapfrog our income per capita by 23 percent from entrepreneurial activities (six percent) and “absent” women workforce (17 percent) translated to about US$2,300 per capita, which will enable an overnight achievement of the high-income status for Malaysia.

Image result for Working Graduate Mothers

Working Mothers Produce Better Sons and Daughters

A comprehensive study of 50,000 adults from 25 different nations by the Harvard Business School inferred an interesting result contrary to popular and admittedly traditional beliefs. The study found that growing up with a working mother improves future career prospects for daughters and sons and is unlikely to harm children socially and economically when they become adults.

Women growing up with working mothers show better performance in the workplace. They are more likely to hold supervisory responsibility at those jobs, and earn higher wages than women whose mothers stayed home full time.

But the study found no effect to their sons’ performance at work as men are naturally expected to work. However, sons of working mothers do better in domestic duties and spend more time caring for family members.

The study also found that sons who have working mothers spend nearly twice as many hours on family and child care as those hailing from more traditional households; a weekly average of 16 hours compared to 8.5 hours.

Barriers and Challenges in the Workforce

Where do we rank in the gender inequality charts? Malaysia ranks 111 out of 145 in the World Economic Forum’s Global Gender Gap Index. In contrary, based on the UNDP’s Gender Inequality Index (GII), Malaysia did better; coming in at 62 out of 188 countries. Regardless, there is still much to be improved.

A study by the United Nations have found that women bear disproportionate responsibilities for unpaid care work. Women devote one to three hours more a day to housework than men; two to 10 times the amount of time a day to care (for children, elderly, and the sick), and one to four hours less a day for paid labour.

This is similar to Malaysia. These differences, deeply rooted in gender roles, reduced women’s leisure, welfare, and well-being. As a result of these different domestic responsibilities, men and women have different patterns of time usage; periods of leisure and high activity.

These patterns have implications for women’s ability to invest in education, their ability to take up economic opportunities and entrepreneurship, and to participate more broadly in current economic, political, public and social life.

In Malaysia, 67 percent of women cite care and other familial and personal responsibilities as the reason for not being in the labour force, versus only two percent of men. This is a wide difference from EU’s 25 percent. This directly and negatively impacts women’s participation in the labour force in Malaysia.

Women are also more vulnerable to economic shocks considering a majority of women are employed in low and semi-skilled positions.

Salary disparity between men and women is still prevalent in Malaysia where women earn less than men in all occupational sectors, notably in elementary occupations in the range of between 10-40 percent compared to men. (Source: Salaries & Wages Survey, 2014)

Additionally, a safer environment for women to commute to work is also a challenge considering crimes, especially snatch thefts, are on the rise; with women being their primary target.

Discrimination against Pregnant Women

The Women’s Aid Organisation (WAO)’s Workplace Discrimination Survey found that 40 percent of women polled have experienced job discrimination due to their pregnancy.

The survey revealed that the top five ways used by employers to discriminate pregnant women are by making their positions redundant, denying them promotions, placing them on prolonged probation, demoting them, and terminating their jobs.

The survey also showed that about 20 percent of women have had their job applications rejected or job offers revoked after they disclose their pregnancy.

Survey results indicate that 30 percent of women are likely to delay their pregnancy plans because they fear losing their job or promotion. But only about one in eight women who have lost their jobs or have been looked over for promotions due to pregnancy, have actually lodged formal complaints.

Majority of women do not know their rights or fear backlash and harassment for speaking up. Additionally, both the Employment Act 1955 and the Industrial Relations Act 1967 provide very minimal relief, if any at all. Existing legal safeguards are insufficient and there are no specific laws in Malaysia that deal with pregnancy related discrimination.

Sexual Harassment against Women

Sex-based discrimination takes on many forms at the workplace and in public. Sexual harassment may include verbal, non-verbal/gestural, visual, psychological, and physical harassment.

As with pregnancy discrimination, there is no specific law in Malaysia that deals with sexual harassment. Currently, women can lodge a complaint under The Employment (Amendment) Act 2012 which has expanded the definition of sexual harassment and put into place legal ramifications for sexual harassment at the workplace.

Unfortunately, the law only applies for harassment in the workplace; which is, at most, limited. The act only covers women in employment and excludes those working in the informal sector.

Provisions in the Act also excludes many sections of the female community, such as Member of Parliament (MP)s who are sexually harassed by fellow male MPs, domestic workers by employers, students by teachers, nurses by patients, patients by doctors, and passengers by bus drivers.

The Federal Court in June 2016 made a landmark ruling paving the way for sexual harassment suits to be heard in civil courts beyond the current narrow limits dictated by the Employment Act and the judges too agreed that the Employment Act is insufficient.

Barriers and Challenges in Politics

There are five major obstacles that stand in the way of women who wish to participate in politics, namely, social perception of women’s leadership abilities, role conflicts, religious and cultural constraints, structural constraints within political parties, and finally, limited financial resources.

Structural constraints within political parties exist, where the existence of women are in subordinate status modes confined to the women’s wing within the parties; being only party auxiliary. The real power remains within the firm grasp of men who hold the gate to party positions and electoral candidacy.

Parti Keadilan Rakyat is paving the way for change with its woman party president and one woman vice president who is also in charge of its electoral candidacy. For supreme council members, Parti Keadilan Rakyat and Parti Maju Sabah are leading at 26.7 percent and 23.1 percent women representation while BERSATU, UMNO, MIC, DAP behind at 13 percent, 11.7 percent, 10.3 percent, 10 percent respectively and both PAS and MCA at 8.6 percent. AMANAH and UPKO most behind at 6.9 percent and 4.5 percent.

Furthermore, in politics, women face the same problem as in the workforce, carrying “double burden” which remains an inhibiting factor to their full political participation. These challenges result in lower women representatives in both federal and state legislature; providing direct causal effect to the number of executives in the government. So how do we move forward to face all the barriers and challenges in women empowerment?

Women’s Institutions and Decision Making

The Malaysian government in 1975 introduced the National Advisory Council on the Integration of Women in Development (NACIWID) as a machinery to mobilise women’s participation in development. It was tasked with advising the entire government on women’s issues.

In 2001 the Ministry of Women’s Affairs was formed with Datuk Seri Shahrizat Abdul Jalil acting as the Minister to solely focus on the development of women.

Three years later, the scope of the Ministry was widened to include family development and social welfare and the name was changed to its current name, Ministry of Women, Family and Community Development.

NACIWID has then been placed under this ministry and is called as Majlis Wanita. Instead of advising the entire government, it now only advises this one ministry.

To begin addressing women’s challenges and spearheading a way forward, the “toothless” Majlis Wanita must be revamped as the National Women’s Commission given the prime authority and power to direct, oversee, and monitor national implementation of Gender Equality and Woman Empowerment.

In accelerating women’s political leadership, an independent, non-partisan Women’s Political Institute must be set up to flourish and nurture women leadership abilities. More studies and institutes for women like the Kanita (Institut Kajian Wanita) at USM and the Gender Studies department at UM must be established and supported.

More women should be placed in decision-making positions in all spheres of life; politics, civil service, corporations and the general public.

The current simplistic target of having at least 30 percent women in decision-making positions in both the government and the private sector is beneficial. Unfortunately, we end up with an hourglass structure.

Women’s participation is observed to be heavy on top management (within the 30 percent target) and entry-level positions with hollow participation in between. More measures are required to strengthen the occupational pipeline.

Unleashing Women for a Brighter Future

While current initiatives to leverage and highlight women’s talent are laudable, other policy options must be explored, evaluated, and tailored, to enable Malaysian women to fully contribute to Malaysia’s transformation towards a high-income, inclusive, and sustainable economy.

Initiatives must be taken to end all forms of discrimination against women, to eliminate all forms of violence against women, to ensure women’s full and effective participation in all political, corporate and public affairs, to undertake reforms to equal rights to economic resources, and most importantly, to recognise and value unpaid care and domestic work.

Women are leading both in class and extracurricular activities over their minority men cohort within the higher education environment and it is pertinent for this to continue after leaving universities. A change in the stereotype of women as only housewives and child bearers must take a paradigm shift.

The status quo has been broken. Women are fast becoming income earners and providers equivalent to men but at the same time unpaid care work is not recognised. Women are tasked to work and at the same time no efforts are made to lessen their care burden. This is not healthy and is not sustainable.

In the long-term, prevailing social norms need to evolve for gender gaps to be bridged. A social re-engineering and going back to the drawing board is required to formulate the best solution for this new emerging social dynamic.

Gender sensitive education must start from school, enforced by the legal system, engendering government institutions, and also the authorities; including the police force.

Legal Support for Women

The Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), adopted in 1979 by the UN General Assembly, is synonymous as an international bill of rights for women.

It has a prominent preamble and 30 articles, defining what constitutes discrimination against women and measures to end such discrimination.  As a ratifying member to CEDAW, Malaysia must integrate these articles into domestic legislation and enact the Gender Equality Act.

A revisit on existing legislation must be conducted to amend legislations which are discriminatory against women. Subsequently, every state must establish its own Gender Policy guided by pressing national concerns.

This will ensure Gender Equality will be mainstreamed in all policies and programmes from federal to state governments. Comprehensive laws must be in place to protect women from sexual harassment by enacting the Sexual Harassment Act.

Gender discrimination must be halted at all cost by penalising government departments or companies found to condone such acts and its perpetrators.

We need to protect pregnant women by adopting the Pregnancy Discrimination Act. Both Acts will provide legal protection to women and ensure that they feel secure at their workplace and in society, as a whole. Remember, anything that makes a woman feel inferior and takes away her self-respect is abuse.

Making Work Family Friendly

The existing tax relief for enrolling children aged 6 years and below to registered nurseries and preschools is not enough. Free nurseries at all government agencies and linked companies are severely required to assist in reducing the burden of childcare and to assist families in achieving work-life balance. This must be implemented in achieving a family friendly workplace.

As of 2015, there are 3,193 registered private child care institutions, and on top of that there’s 118 government offices and 24 private offices that provided child care. This illustrates a huge demand of private child care institutions that the government and private offices should be providing.

The government sector is slightly ahead compared to the corporate sector. Both are lacking in initiative and is largely failing to provide working mothers with better access to child care, flexible working hours and longer maternity and paternity leaves.

Childcare is a shared responsibility; which means that the attitude and treatment towards fathers will also need to change. More measures must be undertaken to ensure women have more social protection in the informal sector. This would drastically reduce the number of women leaving the workforce. Support must also be given to inculcate more women entrepreneurs.

To address the different needs between women and men, these issues have to be reflected in public transportation policy, healthcare delivery, women in politics, and strengthening corporations in promoting gender diversity.

Stakeholders’ Responsibility

All of the above calls for every stakeholder to relentlessly push for changes with full support from the government; including the agencies and the private sector.

Third party players from the civil society must be supported as they will be able to dive deep into the grassroots level, increase the awareness of Malaysians at large, and will be supplementing both the government and the private sector.

A prime example would be The Joint Action Group for Gender Equality (JAG), formed in 1985, a coalition of 12 non-governmental organisations that work towards gender equality by the Association of Women Lawyers (AWL), Women’s Aid Organisation (WAO), All Women’s Action Society (AWAM), Women’s Centre for Change (WCC), Tenaganita and others.

JAG must be credited for spearheading multiple campaigns and legal reform efforts, leading to the enactment of the Domestic Violence Act 1994 and the inclusion of “gender” under Article 8(2) of the Federal Constitution in 2001.

Emerging NGOs such as Lean In Malaysia, Women: girls, The G-Blog, and also a social media initiative like the Leading Ladies of Malaysia and others must also be supported and sustained.

There exists a huge socio-economic benefit of tapping into and unlocking women’s potential that this country badly needs.

*Anas Alam Faizli holds a doctorate in Business Administration. He is a construction and an oil and gas professional, a concerned Malaysian and is the author of Rich Malaysia, Poor Malaysians and tweets at @aafaizli‎