Showing posts with label Malaysia. Show all posts
Showing posts with label Malaysia. Show all posts

Saturday, October 16, 2021

Economics, Malaysia, and Economic Growth

Economics is broken because other than Hernando de Soto's work, it fails to account for politics and sociology. One of the field's most egregious mistakes is assuming protectionism always equals failure within a globalized trading paradigm--or that slower economic growth is necessarily inferior to faster growth. Post-WWII, debt within allied Western nations created an interdependent system facilitating common goals and knowledge transfers. Meanwhile, in formerly colonized countries, most residents remained poor during as well as after colonization, and the Asian financial crisis of 1997-1998 confirmed a distrust of Western finance. 

When judging formerly colonized countries like Malaysia, one must remember just how poor the natives were. According to Tun Dr. Mahathir, "The country's per capita income in 1957, the year of Independence, was less than USD350. Under British colonial rule more than 70% of the population lived below the poverty line... there were only about 100 university graduates in the whole country." If an Asian country associated Western influence with mismanagement--not an illogical conclusion after the Vietnam War--then it would prefer homegrown businesses over FDI, even if slower growth resulted. 

Why so much misunderstanding? When globalized trade focuses on things rather than people, cross-cultural understanding cannot succeed except on a superficial level. In a debt-soaked world, will the 22nd century be different?

© Matthew Mehdi Rafat (2021)

Thursday, May 14, 2020

Travel in Muslim Countries: To Go or Not to Go

Most Westerners are inundated with negative images of Muslims, making excursions east of Switzerland seem foolhardy. As a U.S. citizen at an American hotel in Muslim-majority Kuala Lumpur, Malaysia, I'll offer my own perspective. 
Seen April 2021
First, tourism is a trillion dollar industry, and all significant economic sectors include aggressive competition.
While almost everyone has learned governments use fake news and intelligence operations (aka propaganda) against each other, not many of us realize corporate espionage is just as active. For example, during a major sporting event in the United States, a Chinese company's website went down after one of its commercials aired, depriving it of both revenue and reputation. Was it a case of too much online traffic, or something else? More recently, TD Ameritrade's website became inaccessible shortly after the United States assassinated an Iranian military leader on Iraqi soil. Coincidence? Or part of a proportionate response? 
And what of Huawei's acceptance woes internationally? 
From Huawei CEO Ren Zhengfei's Lessons from Battle
Most Americans will never know the details behind such machinations; as a result, they tune out public affairs, leaving the corporate and governmental worlds to persons with more passion than common sense and no guarantee of extraordinary moral fiber. Over time, such disconnect leads to a casual acceptance of almost any kind of news relating to foreign affairs--even if the news has no basis in fact. 

Second, negative news is an effective economic weapon because it is cheaper to issue a press release that biases consumers against foreign products than it is to spend money on positive advertising (aka building a consistent brand). Whatever the proclaimed political platform, every government has the same goal: attracting investors and deposits in order to expand the economy and to lower unemployment. Malaysia in particular has received bad press because its leader, Tun Mahathir Mohamad, is unapologetically pro-Asian, pro-Malay, and nationalistic. 
From A Doctor in the House (MPH Publishing)
Some examples of negative news involve Malaysia's hotel policy prohibiting unmarried couples from staying together. Setting aside the fact that states like Sarawak and Sabah are known to be fiercely independent from authorities in Kuala Lumpur and Putrajaya, people fail to read the fine print: such policies are applicable only to Muslims and no one else. Since no front desk hotel clerk has ever asked me to state my religion, one can see obvious enforcement problems. In fact, none other than Tun Mahathir has said, "Islam does not ask us to find fault in people to the extent that you breach into other people's homes. That is not Islam." Why, then, do such policies exist? 

Here's the short version: after 1945, Europe could not afford to occupy countries east of the Suez, which it had done since Portugal controlled the Straits of Malacca in 1511, signaling Islam's decline in SE Asia. Despite overreaching--even WWII's "winners" had crushing debt--European leaders believed they could successfully resist or co-opt anti-colonial movements threatening private property interests. In one particularly brazen example, the Dutch, intending to stymie independence efforts, seized the future Indonesian president. (See Operation Kraai/Crow.) Though Westerners are taught WWII ended in 1945, in reality, battles continued worldwide over two additional decades to expel European colonists, especially the British. 
As European influence waned, newly independent countries--eager to counter vestiges of colonialism but with little experience building economies--had to discover new ways of governing diverse populations. In Malaysia and other majority-Muslim countries, politicians decided to restrict full benefits of citizenship to those presumed to be loyal to new governments, which in practice often meant Muslims (rather than Buddhist Chinese or Indians). 
By Tun Mahathir Mohamed
At the same time, Islam's reformation of slavery over a thousand years before similar movements in the West; lack of centralized structure (no Holy See); and absence of racial categories made Muslim-majority countries susceptible to hostile foreign infiltration and fraud, generating an ironic outcome: SE Asian governments, some still under European military protection, used anti-colonialism to justify identifying residents with greater specificity, thus mimicking British colonialists' "divide and govern" strategy. 
Later, Tun Mahathir refers to British colonialists' racialized division of labor.
In the United States, few people are willing to accept identity cards disclosing their religion or race, but such cards are common in SE Asia in order to better administer governance, including minimum diversity levels in government-subsidized housing. Mindful of an Animal Farm outcome in which new rulers become as corrupt as old ones, Muslim-majority governments began drafting laws applicable only to Muslims in order to respect non-Muslim minority residents. An unintentional result of using separate systems and/or governmental hiring preferences--whether in Hindu India, Muslim Malaysia, or now politically-Catholic-dominated USA--is that governments ceded the more dynamic private sector to non-majorities (e.g., Punjabis and Sikhs in India; Chinese in Malaysia, etc.), making themselves less relevant. 
Today, when Christian Westerners discuss sharia law, they bypass historical context: namely, that some religious minorities seek independent legal systems to resolve marriage, divorce, child-rearing, and inheritance issues because of Western colonialism's abuses and a rational distrust of legal systems in which Christian governments made and interpreted rules against politically-powerless minorities without input from non-Christians

Let's fast-forward to modern-day Malaysia. The country continues to struggle with corruption, even as its private sector appears healthy and citizens of all races and religions have experienced steady, sustainable improvements in quality of life. Meanwhile, politics in Malaysia--just like in several Western and Christian countries--has become an arena in which to signal moral purity rather than seek effective solutions. 22 years after opposition candidate Anwar Ibrahim was arrested on allegedly pretextual sodomy charges, former PM Najib Razak will face trial for his alleged role in the 1MDB scandal

Such political jousting isn't novel. When Tun Mahathir became president of Malaysia's now-most powerful political party in 1978, Tun Harun Idris had been investigated for corruption and jailed. After Tun Mahathir rose to power, he helped pardon Tun Harun. Lest you believe Muslim-majority countries are unique in using legal maneuvers against political opponents, you may want to review impeachment proceedings (Bill Clinton, Dilma Rousseff, Donald Trump); corruption convictions (Brasil's Luis "Lulu" da Silva, Spain's José Antonio Griñán); politically-motivated detentions without trial (Singapore's Operation Coldstore); FBI investigations before and during USA President Donald Trump's term; and President Trump's military-related pardons, plus dismissed prosecutions, including one where a lieutenant general pled guilty to lying to the FBI. (The only logical reason for such a lie would have been because statements requesting a foreign country not to escalate were code for an eventual quid pro quo that didn't happen only because of the FBI's investigation.) 
From USA's Mueller Report
In 2020, many voters see democratic elections as a game in which the ruling party uses all available tools to crush political opposition so as to cement power over the common purse, a power it wields to reward friends and destroy enemies. Sadly, they're not wrong. The level of incest--figuratively as well as literally--within political families is so prevalent, one has to wonder why voters didn't catch on earlier. See, for example, Belgium's Anciaux and Spaak families; Bolivia's Siles family; Brasil's Bolsonaro family (and many others);

In Brazil, 20,000 families control 80% of the wealth. -- Clark Winter's The Either/Or Investor (2008), hardcover, pp. 123.

Canada's Trudeau family (and many, many others); Colombia's López family... I could continue, but the list is extensive worldwide, and just the "U" countries (U.S., U.K., Uruguay) could fill a novella. (Note: Americans lived under a Bush or Clinton presidency from 1989 to 2009.) All available evidence indicates politicians are merely stand-ins for ruling families (Rockefellers, Gettys, Vanderbilts, Hearsts, Rothschilds, Morgans, etc.) which hearken back to a time when trading houses, along with their private militaries, ruled trade and therefore the world. 
We may know about the House of Bourbon, House of Bonaparte, and House of Saud, but though we're told "Hong" means "fragrant"--marketing so inapplicable to Hong Kong, one wonders if they're even trying anymore--in fact the "Hong" in Hong Kong refers to British trading houses. 

In the first half of the 19th century, the largest single industry in the United States, measured in terms of both market capital and employment, was the enslavement (and the breeding for enslavement) of human beings... Over the course of the period, the industry became concentrated to the point where fewer than 4,000 families (roughly 0.1% of the nation's households) owned about 1/4 of this 'human capital,' and another 390,000 (call it the 9.9%) owned all of the rest. -- Matthew Stewart (2018) 

Once one connects political power, military power, and trade (economic power), politicians are exposed as pretenders to a throne established centuries ago and protected by governmental inefficacy relating to offshore tax shelters that utilize complexity to provide anonymity. Within such a landscape, we can understand 1MDB as a misguided attempt to attract foreign direct investment, plus its corollary: zealous enforcement against the rise of patrons, especially in the informal sector, that might inspire unaccountable competitors. Perhaps we can now see some arrests are publicized to rally a political base; harass supporters of political opponents; gain advantages within a trillion dollar industry; or signal moral superiority by casting opponents as insufficiently religious. Admittedly, such a paradigm brooks no winners except would-be conformists and no prizes but internal rot, but if "all's fair in love and war," why not politics also?  

Native-born citizens and Hollywood aficionados forget America is an idea, not a specific place, and much of America's appeal comes from the eternal idea of refuge (including from political instability). In other centuries "America" was called the New World, and though I do not speak enough languages fluently to tell you more names, considering Justice Sotomayor's dissent in Trump vs. Hawaii (2018), Canada may now be more "American" than its downward neighbor. And so, to those Americans and Christians avoiding Muslim-majority countries because of inconsistent executive enforcement, discrimination on the basis of religion, and criminals run amok, rest assured: the United States has become like every other country, but with superior marketing. Welcome! May your children someday experience sunset gates and glows worldwide. 

© Matthew Mehdi Rafat (2020) 

Bonus I: "Tun" is a term of respect placed in front of a distinguished Malay's name. It is similar to "Mahatma." (Gandhi's first name is not Mahatma, but Mohandas.)  

Bonus II: Modern Western politics is in its current miserable state because everyone from Diego Rivera to the Workington Man has realized Western liberal values were mere covers for theft and supplanting of local institutions abroad rather than a sincere attempt to bring Enlightenment to all. -- Matthew Rafat (2019, after Britain's general election)

Wednesday, February 14, 2018

Poem: Pas de Deux: Balletomane in Malaysia


I was nervous when we met. You were a shade of color one finds only in Africa, that continent of a thousand and one dialects, and I'd never seen anyone so slender. Sensing my shyness, you began dancing effortlessly, first ballet, then hip hop, your graceful half-twirl more expert than your elbow pumps. I understood, looking at your naked movements, all seamlessly continuous, why politicians and billionaires build grand theaters.

In the shower, my stiff, pillowy hands moving downwards, I said you were small everywhere—until I reached your feet. At 48 kilograms vs. 220 pounds, our feet were improbable fraternal twins. Feeling a one-sided splendor, I moved backwards as fluidly as possible, washing your long toe while maneuvering to a different position. I offered a plié to demonstrate—and settle—our differences. After a failed attempt to grasp my femur, you made a fist, your second punch more rigorous, more delightful than your first.

When you glissaded to dry yourself, I followed, and we stood face to face. I thought your shoulders, a taut heart shape, were your best feature, but you shook your head. Studying your eyes, I explained they resembled the Eye of Horus, and I knew now why Egyptians believed your ancestors a symbol of good health. After a quick glance upwards--as if on cue--you switched from en face, readied yourself for a finale, and left me wanting to learn a grand reverence. 

© Matthew Mehdi Rafat (2020)

Bonus: "There is more diversity in pigmentation variation in Africa than anywhere else in the world. And yet pigmentation, skin colour, is the key founding principle of race as a social construct." -- Adam Rutherford (2020)
 

Thursday, September 25, 2008

Malaysian Blog re: Racialism

The former Prime Minister of Malaysia, Dr. Mahathir Mohamad, has a blog (www.chedet.com). He recently wrote a post imploring his people to set aside racial issues and work together. It reminded me of Obama's plea to Americans to come together. Malaysia has three major ethnic groups--Malay, Chinese, and Indian--and apparently, segregation is more common than not, and quotas favoring the indigenous Malays have hurt racial relations. See the post here:

http://test.chedet.com/che_det/2008/09/malay-unity-and-malaysian-unit.html#more

America is similar to Malaysia in the sense that we also have three major ethnic groups--Caucasians, Latinos, and African-Americans--and to some extent, de facto segregation, even in diverse cities. Americans should keep an eye on Malaysians to see how they deal with their diverse population. We may be able to avoid making their mistakes and learn from their successful policies.