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| ON THE OTHER HAND |
| Malaysia �s Success
By Antonio C. Abaya Written Oct. 24, 2007 For the Standard Today, October 25 issue Our neighbor Malaysia celebrated its 50th anniversary of independence last August 31 and the months-long festivities that marked that event were highlighted by the launch into space of its first cosmonaut, Sheikh Muszaphar Shukor, a 35-year old medical doctor and practicing Muslim. �Muszaphar was chosen from thousands of hopefuls in a nationwide competition that generated tremendous excitement in Malaysia ,� wrote the French news agency, AFP. He was launched into space on Oct. 11 (while Malacanang was bribing governors and congressmen) from Russia �s Star City cosmodrome, with two others: an American women astronaut and a Russian cosmonaut. The trio spent 11 days in space, including a sojourn in the International Space Station, and returned to Earth on Oct. 22. A historic moment for Malaysia , said its deputy prime minister, Najib Razak, that made his countrymen �stand a few inches taller.� �This is a very momentous and historic occasion for Malaysia . It will go down in the annals of our history because this is a first for Malaysia in space and he has returned safely,� gushed the understandably ecstatic Najib. Now, how come the Philippines � national leaders never ever thought of sending a Filipino astronaut into space? I know I made such a suggestion to one of President Aquino�s lieutenants sometime in 1990. But either the suggestion was not passed on to her, or she did not think the idea was worth the bother. She had just survived Gringo Honasan�s two coup attempts against her, in 1987 and 1989, and she was probably too engrossed in trying to prevent a third coup to think about sending a Pinoy into space. A pity. I did mention that suggestion to a subsequent US Ambassador, Dick Solomon, and he thought it was a good idea that he would have endorsed to Washington if a request had come from the Philippine government. And he took a small notebook from his vest pocket and made a note of it. But the Philippine government obviously never made such a request, and that was the last I ever heard of it. About ten years ago, a Fil-Am woman in her late 20s came here and announced that she was making representations with the Russian government to enlist in Russia �s space program. Obviously she was looking for financial backing from the Philippine government: it would have cost several million dollars But such backing never materialized, so she went back to the US , her dreams of orbiting in space discarded into her mental trash can. Perhaps the post-Arroyo government will re-consider my suggestion. A Filipino orbiting in space would be a boost to our sagging national ego. After decades of almost endless defeats and humiliation, a Filipino astronaut in space would be a much needed victory and morale-booster that we all need to restore our sanity and self-esteem.. It would give Philippine media something worthwhile to focus on, aside from its almost exclusive concentration on scandals, predatory trapos, mercenary coup plotters, showbiz fornicators and tiresome communists. And it could trigger a paradigm shift in our national psyche. Such as, for example, inspiring more Filipino students to take up Science and Engineering, rather than Law. I know it did something like that in the US when the Soviets launched their first Sputnik satellite 50 years ago last October 7. I was a student at Northwestern then, and the success of the Soviet launch plunged American leaders, media and the public into much soul-searching and breast-beating, about how they had been overtaken by the Soviets, how their education system was inferior to the Soviets�, even to Western Europe�s and Japan�s, how they were not producing enough scientists and engineers etc. Americans also became more cosmopolitan. I was enrolled in a Russian language course. When the course started in September, we were only six in class. But after the Sputnik launch in October and the subsequent soul-searching and breast-beating, our class ballooned to more than 60 and had to be divided into several sections. The soul-searching did much good. The Americans were able to rebound from their collective depression and, prodded on by President John F. Kennedy (who was to be assassinated in 1962), went on to beat the Soviets in landing the first men on the Moon, in 1969. We Filipinos have undergone years of soul-searching. What we need is a major symbolic triumph to lift us out of our depression. Manny Pacquiao is not adequate: his ill-advised detour into politics, his obvious lack of education, do not make him a good role model. A Filipino astronaut in space would be a more compelling symbol of our aspirations. (OK, OK, Some wise guys will suggest that we send GMA and her husband into space, and leave them there. But to be fair, we have to include some senators and congressmen, as well as some bureaucrats and generals. It would be too expensive, guys.) But to get back to Malaysia , Boo Chanco emailed me a short article titled The Malaysian Miracle, written by Joseph Stiglitz, former chief economist of the World Bank and outspoken critic of free trade and globalization. It can be accessed at www.project-syndicate.org. Stiglitz writes that at independence 50 years ago, Malaysia was �one the poorest countries in the world,� Its GDP then �was comparable to that of Haiti, Honduras and Egypt and some 5% below that of Ghana. Today, Malaysia �s income is 7.8 times that of Ghana , more than five times that of Honduras , and more than 2.5 times that of Egypt . In the global growth league tables, Malaysia is in the top tier, along with China , Taiwan , South Korea and Thailand . �Moreover, the benefits of growth have been shared. Hard-core poverty is set to be eliminated by 2010, with the overall poverty rate falling to 2.8%. Malaysia has succeeded in markedly reducing the income divides that separated various ethnic groups, not by bringing the top down, but by bringing the bottom up. �Part of the country�s success in reducing poverty reflects strong job creation. While unemployment is a problem in most of the world, Malaysia has been importing labor. In the 50 years since independence, 7.24 million jobs have been created, an increase of 261%, which would be equivalent to the creation of 105 million jobs in the US �.� Stigltz�s short article did not go into some details. In the 1980s, Malaysia followed the examples of South Korea , Taiwan , Singapore and Hong Kong and geared its economy to the export of manufactured goods. The Philippines did not, until the presidency of Fidel Ramos in the 1990s. In 2005, Malaysia �s exports totaled $147.l billion, compared to the Philippines � $41.3 billion., or $105.8 billion more than the Philippines .� Malaysia has been actively selling itself in the global tourist market since the 1990s, as anyone who watches cable TV can see from the ubiquitous �Malaysia Truly Asia� ads in CNN and the BBC. The Philippines had an ineffectual �Wow Philippines � campaign which, mercifully, was withdrawn about three years ago, but has not been replaced since. In 2006, Malaysia drew in 16 million tourists, the Philippines not even 3 million, or 13 million more than the Philippines . If you convert into jobs Malaysia�s surplus over the Philippines of $105.8 billion in exports and 13 million in tourist arrivals, the result would be millions of jobs that Malaysia generated, and the Philippines did not, in just two sectors alone. This would explain why the Philippines has had to export its people (8 to 9 million of them) and Malaysia does not. Another key ingredient in Malaysia�s success, which Stiglitz only briefly touched on, is the effective and total exclusion of Communists from its national life, through the Internal Security Act, which gives the Malaysian (and Singaporean) state the legal and constitutional right to throw them in jail indefinitely and without trial. Unlike in the Philippines where Communists are and have been allowed to organize fronts among workers, peasants, fishermen, students, academics, public school teachers, government employees, medical workers, feminists, migrant workers, priests, nuns seminarians, religious superiors, etc; to edit newspapers, write columns, host radio and TV programs; to become presidents of state universities; and even to run for Congress. Guess which country has had more domestic peace and stability, and which country is always bogged down in endless conflicts.. Stiglitz acknowledged that, �during the financial crisis of 1997, Malaysia did not adopt IMF policies � and as a result had the shortest and shallowest downturn of any of the afflicted countries � What Malaysia has been doing, even before 1997, was to require foreign investors to leave their money in Malaysia for minimum periods of time, or pay penalties for early withdrawals, thus discouraging currency speculators and hot money manipulators from playing with the value of the Malaysian ringgit. It was in effect a form of fixed rate of exchange. But Stiglitz did not mention in his article that much of the entrepreneurial activities in Malaysia came and come from its large Chinese community, estimated at 24 to 30% of its population (compared to only about 3% of the Philippine population). Without its large Chinese community, it is doubtful if Malaysia would be where it is right now. ***** Reactions to [email protected]. Other articles in www.tapatt.org and in acabaya.blogspot.com. OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO Reactions to � Malaysia �s Success� East Asia�s Miracle Economies: South Korea and Malaysia Dear Tony, After reading your spaced-out column on Malaysia successfully sending an astronaut to space, I felt even lower than I have been today. Remember, today is also the day that Gloria let Erap off the hook, probably thinking that she can make the Erap supporters love her, too. Big mistake. Some people may still adore Erap, but not in the numbers that did when he was being tried for looting the National Treasury and making the Central Bank his Piggy Bank. So the poor woman yet again makes the wrong move. It seems that she has been feeling more and more out of touch, everyday, the result of which called for a solution like "release Barabas", "Crucify Democracy!" sort of battle-cries. Of course, she released Barabas. It's incredible that she can't realize that she won't, can't and will never be a popular President. Maybe Mahar should run a survey these next two weeks. His people just need to go to the cemeteries and memorial travels to find answers to survey questions. Let's see what effect releasing Erap had on the masa. Wala na, Manong Tony, we are hooked, screwed and tattooed. Gerry Kaimo, (by email), Oct. 26, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Hi ACA, This is my third attempt to send you the following message. The first two bounced back with a message that your mailbox is over-quota. ***** I am probably one of the "Last of the Mohicans", to borrow that expression, to believe that there is still hope for moral redemption in GMA, but the shameless undue haste with which she gave executive clemency to an unremorseful and unapologetic scoundrel was the last straw. I tried to hold on to the few clutches of straws, but I cannot anymore. GMA says her political resolve is not to fear making hard unpopular decisions. Will someone please tell her she's got that resolve all messed up no wonder she continues to be mired in scandals and controversies one after another and the most recent one is giving clemency to an undeserving felon because she has just made a mockery of justice. That much ballyhooed reconciliation with Erap is nothing more than a feeble attempt to save GMA's sagging acceptability and to make up for having driven the scoundrel out of Malacanang in 2001. Marcos had done far worse atrocities but the call for reconciliation among Filipinos was unnecessary except for the Marcoses themselves. They never apologized for their collective sins in abusing and exploiting the people and wealth of the country. Now how does GMA expect Erap to reconcile with the people when even he and his spiteful lawyer Rene Saguisag make a mockery of the law and the justice system by repeatedly claiming there is no hope for justice even from the Supreme Court just because its Chief Justice ruled against Erap's return to Malacanang. I agree ACA, let's send these impudent scalawags to outer space and let's begin with the idiots in both Houses of Congress. I'm just fed up with these people. Cesar M. de los Reyes, (by email), Oct. 27, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Malaysia, try to look at Ireland Dear Mr. Abaya, That really won't work.(WHAT won�t work? ACA) Look at what happened to Richard Harris when he won the best actor award in Cannes many decades ago when Ireland was still a third world country. ( Ireland was never a Third World country. It was/is a First World country, but with a per capita income lower than those of the UK , Sweden , Germany etc ACA) The London papers had headlines of British Actor wins at Cannes . Richards and his friends celebrated at a bar in Cannes . Richard Harris gets into a fight and is arrested by the French police and spends the night in jail. The next day, those same London papers had headlines of Irish actor gets arrrested in BAar Brawl in Cannes . At that time, several irish americans have already won several Nobel prizes, James Joyce is already considered one of the greatest writers, an irsh american catholic by the name of Kennedy was president. But since |ireland was a thrid world country, the irish jokes pervaded and the phrase, well they're irish was a common explanation. (Can�t you tell an ethnic joke from a statement of fact? ACA) When Mary Robinson became president of Ireland things have changed. When she took office in 1990, ireland was just like the philippines . They were migrant workers and immigrants to egverywhere. After Robinson, the catholic church power in ireland was destroyed. She chasee dtaht bishop Casey out of town. The molestation cases of priest were exposeed everywhere in Ireland . By 1998, the Irish were able to reach fper income parity with the British. Since then they are essentially a first world country. In 1998 a survey showed that only 5 percent of irish catholics went to church. Today it even lower. Before the irish used to export labor. Today they import labor. The only ones who go to church in ireland are the immigrants to ireland . The polish, lithuanians, nigerians and filipinos. (According to the 1992 World Almanac and Book of Facts, the per capita income of Ireland in 1988 was $6,200 versus $667 for the Philippines . So Ireland was not �just like the Philippines .� Ireland became prosperous after it joined the European Union , not because Mary Robinson �became president� - you mean �prime minister.� ACA) A Filipina nurse complained to her mother recently that her irish co workers in ireland are making fun of her because she is a devout catholic and goes to church. She should try to understand why these irish catholics hate the catholic church and faith. Funny, they are the ones who are capable of giving her a job that pays more than what an executive in makati makes. How come her devout catholic filipino brethren can't give her a job in the philippines with the same pay and benefgits as in ire;land where the average irish parewnts now are no longer even having their babies baptized by the church? Can you tell me that and don';t give me any fairy talkes of yorucatholic religion. (What makes you think I�m a Catholic? Do you always jump to conclusions without making sure of your premises?) francisco p/ viri, (by email), Oct. 26, 2007 (Next time, please take the trouble and courtesy of checking your post for spelling, punctuation, capital letters and grammar � aside from factual errors and flaming religious bigotries � before sending it. ACA) wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Joseph Stiglitz wrote:: "�Moreover, the benefits of growth have been shared. Hard-core poverty is set to be eliminated by 2010, with the overall poverty rate falling to 2.8%. Malaysia has succeeded in markedly reducing the income divides that separated various ethnic groups, not by bringing the top down, but by bringing the bottom up."" Well obviously not in RP-- and you still wonder why there are people still joining the NPA's? Alexander Po, (by email), Oct 26, 2007 (I do not wonder why there are people still joining the NPA. I wonder why Communists still believe that they, and only they, can bring about prosperity, when the empirical evidence is that they could not, without the help of Capitalism and the profit motive. ACA) wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Malaysia 's success today owes much to the British-run counterinsurgency campaign during the late '40s and early '50s. It is the best example of a successful COIN campaign ever. I was struck by the fact that they even had a title/position of Food Denial Officer at the municipal level and practiced collective punishment on entire towns which supported the CTs. Draconian as it may have seemed back then, no one in Malaysia today is complaining of the "human rights violations" then. We have to remember that whatever measures we take today vis-a-vis the insurgency can only be judged 20 years from now. Failing that, our COIN campaign will continue to flounder. Brig. Gen. Dick Morales, (by email), Oct. 26, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Dear Tony, Unfortunately, Filipino politicians are more concerned in filling up their bags with cash bribes, pork barrels, and intelligence funds. Sending a Filipino astronaut in space would be a big drain to the pockets of those politicians. It's the last thing Malacaniang and Company have in mind. Marlowe Camello, (by email), Homeland, CA, Oct. 26, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Dear Tony: At first blush, yes, sending a Filipino astronaut into space, whether in an American or Russian or Chinese space ship, could "lift the pall from our dark spirits," to borrow a felicitous phrase from an English poet. But I am afraid that the euphoria expected to be experienced by millions of Filipinos is bound to be short-lived because nothing much will really change as far as their poverty-stricken lives are concerned. Let me just venture to suggest an idea--admittedly one which is surprisingly unorthodox and probably utopian--which has very good prospects of turning the country around for good within the space of from 20 to 30 years and enable it to join the ranks of Asia's economic "tigers." Prime Minister Mahathir it was who has been primarily and largely responsible for the economic "miracle" that is Malaysia . Malaysia 's is veritably a story of from rags to riches--it was Mahathir's genius, determination, integrity, incorruptibility and drive that did it. Now that Malaysia is an economic and social success, I would strongly suggest that Filipino leaders in and out of government seriously consider engaging Mr. Mahathir as an Extraordinary Consultant to both the President and the heads of the Senate and the House of Representatives. His job is to advise these Filipino leaders on what economic, political and social measures they will need to put in place--given the circumstances the country is in now--which are designed to turn the country around for good within the span of from 20 to 30 years. It should be made clear to Mr. Mahathir that all of the economic, political and social measures he recommends will be accepted and implemented fully and not subject to debate by those Filipino leaders. What are the chances of Mr. Mahathir agreeing to be engaged as such an Extraordinary Consultant to the Philippine Government?. Nobody knows, but Malaysians and Filipinos share common Malayan roots, and it is just possible that the appeal to this commonality in ancestral roots will resonate and strike a sympathetic chord in Mr.Mahathir. Another commonality is that Malaysia was once also a poor country, like the Philippines is now. It is just possible that Mr. Mahathir can sympathize with the aspirations of Filipinos to free themselves from the dehumanizing shackles of poverty and the tyranny of systemic corruption. The Philippines has been drifting aimlessly all these years since "independence" in 1946. It has gone nowhere all these years and the prospects of close to 90 million Filipinos reaching the "land of milk and honey" anytime soon--as Malaysia , Singapore , Taiwan , and South Korea have successfully done--are quite grim and remote. Something surprisingly bold and unorthodox, such as the suggestion I seriously advance here, will need to be tried. To use a well-worn cliche, "nothing ventured, nothing gained." Mariano Patalinjug, (by email), Yonkers , NY , Oct 16, 2007 (But the ingredients of Malaysia�s success are not a secret: industrialization, robust tourism marketing, the Internal Security Act to neutralize the Communists, limited press freedom, a fixed rate of exchange, 24-30% Chinese population, plus strong visionary leadership and symbolic gestures to boost national pride, such as sending an astronaut into space. Hiring a foreigner to oversee our government is not necessary or possible, since it will be seen as an insult to the national honor and an admission of insurmountable incompetence. ACA) wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww SENDING A FEW POLITICIANS INTO SPACE IS A CAPITAL IDEA. David L. Sherrill, (by email), Nashville , Tennessee , Oct. 26, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Tony, How can our country move forward when the people in power are focused on themselves and what they can benefit from the positions they're holding? Sending a Filipino into space is a great idea, but I'm sure our government officials will laugh at the mere suggestion because their priority does not hinge on what's good for the Philippine image. Most Filipinos I've talked to have lost faith in our government. The Philippines is in the nadir of Asian progress. Best, Yett Montalvan, (by email), Oct. 26, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Tony, On the unsuccessful side, open and free opinion polling on issues of politics, governance and democracy has not yet gotten off the ground in Malaysia (or in Singapore for that matter) - unlike in Thailand, Taiwan, South Korea, and even Indonesia. The ISA is at least partly to blame. Mahar (Mangahas), (by email), Oct. 26, 2007 President, Social Weather Stations wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww You wrote: �We Filipinos have undergone years of soul-searching. What we need is a major symbolic triumph to lift us out of our depression. Manny Pacquiao is not adequate: his ill-advised detour into politics, his obvious lack of education, do not make him a good role model. A Filipino astronaut in space would be a more compelling symbol of our aspirations.� Tony, as I was reading your "Filipino astronaut" suggestion, I also thought of Manny Pacquiao as a potential ...since he has the stamina plus his successful grasp and execution of his techniques....but yes, it is so true that without some discipline in study habits and not having any background in science, math, technological matters or concerns, the whole idea will just remain a forever dream. More important to bear in mind: it will be difficult for him to build up or improve on his comprehension of the English language and too, other basic aspects in the use of it such as good grammar and skills in expressing his thoughts and acquired knowledge.....and etc.. .BUT he could be a great "mover" of your idea of how we can come out with our own astronaut......How about his getting the ear of GMA. Some observation: Manny is in numerous advertisements and this way he can also convince the different companies that consider him their fast money-maker. Surely, they will get behind him in pushing for this "astronaut" search........... it could be another sensational "pakulo" (as you know how Filipinos join in this way).............................Hello to you, Tony. ...... Rose Bulahan, (by email), Oct. 26, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Right On! Jose Luis Yulo, Jr., (by email), Oct. 26, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Dear Tony, Why Malaysia is more successful? Because we have an IMMORAL government led by an IMMORAL President. And all the other officials that surrounds her are all IMMORAL. Even the so called new leaders. Proof? Just look at the recent events. Convicted criminals can go scot-free as long as they have money and connections in the high place. And a giant network which calls themselves a Kapilmya has the gall to show his homecoming on cable TV. That is proof on why we become a spoof!!!! Regards, Marvin Valido, (by email), Oct. 26, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Dear Tony: Reading your article about Malaysia 's success saddens me obviously. The Philippines has missed far too many chances and opportunities and at the same time not doing the right thing. It is not that we are short of brain powers and intelligence but we fail to not seize the moment when opportunity presents itself. The problem is in the leadership and mind set. I wonder if the Philippines has a five year plan or for that matter, any plan? It would be interesting to learn what are countries priorities. (The Arroyo Administration�s midterm development plan identifies its priorities as tourism, agriculture and information technology. Not a word about manufacturing and industrialization. ACA) As you say, while Malaysia sends its first man into space, our corrupt leaders were busy planning to justify bribery. And too the rest of the countries of the world were busy planning and doing something monumental and productive. I do agree with you that the country needs a catalytic event to occur and perhaps infuse pride and serve as a turning point to our people and the country to make a monumental leap and go about life differently. Looking from outside of the box I am personally affected with every little thing happening in my homeland. I should not, but that's just it; I love our country nevertheless. This is true with all expatriates like me. We do care. My wife and I have visited the Philippines every year since we retired. We rent a condo and spend a great deal of dollars in a month. I would think by now the Tourist Department should have developed and produced a countrywide program for returning Filipinos by consolidating all services related to hotels, airlines, restaurants, tour operators, shopping malls, places and other points of interest, etc. By doing this there will be job creation, improved tourism, efficiency, discounts, repeat businesses, new industries created as off shoots, revenues, etc. Offer such program to OFW. Think of the pride this would create. Many people living in Foreign countries will return home over and over again. Do you have the stat? Develop homes, condos and places for visiting Filipinos. Build a Christmas Island . We love Christmas. Start a development in all the islands of affordable retirement or second homes for us expatriates with good medical facilities, amenities and security. Why are the cruise ships bypassing the Philippines ? That is a huge revenue the country should harness. Oscar Apostol, (by email), Roseville , CA , Oct. 26, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Good Day to you, Mr. Tony Abaya. Just want to let you know hanga ako sa mga articles mo. Marami akong napupulot. By the way, Tony, Maybe you can help me and other OFWs facing financial decision difficulty. If you are in my shoes, where should I put (assuming I have) my dollar and peso deposits, and current business and salary earnings in an economy wherein the peso is strong against the dollar only but not its purchasing power? Should I convert all my deposits to peso? Hindi rin namin matiyak kung tuluyan nang manghihina ang Dolyar. I know you can not predict all these, but with your external factors exposures and research, you may be able to arrive at some very important pointers for us to further evaluate. Thank you very much. Pong de Leon, (by email), Saudi Arabia , Oct. 27, 2007 (The Trade Union Congress of the Philippines or TUCP advises its members to move their dollar deposits to pesos. Many Japanese depositors move their low-yield yens to high-yield Australian or New Zealand dollars. The Saudi rial is probably also appreciating. But there are risks all over. ACA) wwwwwwwwwwwwwwwwwwwwwwwwwwwwww BTW, if you happen to be in Malaysia , you will meet a lot of names using Rizal. It can be their first name or trade name. Just google the name Rizal , Malaysia and you will have thousands of entries in it. I believe that there are some academics who devote part of their time in studying the life of Rizal. They call for a whole day conference and invite participants from the Philippines . AL Jose Leonidas, (by email), Quezon City , 30, 2007 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Yes, Tony. I read about this space shot the morning before I made a presentation before the 11th meeting of the ASEAN Regional Forum Heads of Defense Universities, Colleges and Institutions in Canberra, Australia on 11 October, and made the Malaysian delegation proud when I congratulated them for the achievement prior to my presentation. We have all the attributes to be able to replicate Malaysia, notwithstanding the fact that Malaysia has the following great advantages over us: (1) It has oil, in no uncertain terms one of the major engines of growth of the country; (2) It has a small population with a large land area-- Sabah alone is larger than Mindanao -- thus enabling it to benefit, without straining its resources in the same way ours have been affected by our large population, from exploitation of forest resources and other agricultural products (palm oil, tea, rubber) that we did not exploit ; (3) It has laws that effectively deal with insurgency, that are implemented well enough to control and check it; and (4) Its leaders have been relatively untainted, perhaps due to the fact that their political system works to the advantage of growth and development. The key is leadership, but that is not all. That leadership must be able to deliver without depending upon the support of corrupt political interest groups. One conclusion from a national security forum we conducted is that it must not be constrained by linkages to the two major opposing groups (both with political clout and both with a following consisting of a certain segment of the masses) in the Philippines today, since both have major issues militating against them that continuously divide this country. Thus the middle class must unite against the traditional politicians -- and we are back to square one, the conditions prevailing immediately after EDSA I and II. Chuck Carlos L Agustin, (by email), Oct. 30, 2007 President, National Defense College of the Philippines wwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Hi Tony: Just a minor correction and a major question: JFK was assassinated on November 22, 1963 (not 1962). Re- my question: I would like to read something about Malaysia 's and Thailand 's population policies and their contribution to both countries' growth. Thanks. Mari Javier, (by email), Oct. 31, 2007 (According to the 2007 World Almanac and Book of Facts, the latest population growth rates are: 0.68% for Thailand , 1.78% for Malaysia , and 1.95% for the Philippines . In the 1970s, Thailand and the Philippines had more or less the same population size: about 45 million. But because of an aggressive population management program, Thailand in 2007 has 65 million, while the Philippines has 88 million. In predominantly Muslim Malaysia , birth control is prevalent only among the non-Muslim Chinese, whose share in the total population has dropped from 32% to 24%. ACA) wwwwwwwwwwwwwwwwwwwwwwwwwwwwwww (Forwarded to Tapatt by Misael C. Balayan) East Asia�s Miracle Economies South Korea and Malaysia Source: http://arabnews.com/?page=9§ion=0&article=101997&d=6&m=10&y=2007 &pix=community.jpg&category=Features%22 South Korea Emerging as One of the World�s Largest Economies M. Ghazanfar Ali Khan, Arab News RIYADH, 3 October 2007 � Over the past three decades, South Korea has enjoyed an annual average economic growth rate of 8.6 percent and has emerged as the world�s 12th largest trading nation. The economy of South Korea is the third largest in Asia and the twelfth largest in the world in terms of market exchange nominal GDP as of 2006. In the aftermath of the Korean War, South Korea grew from being one of the world�s poor countries to one of its richest with more capital and resources. From the mid to late twentieth century, it has enjoyed one of the fastest rates of prolonged economic growth in history. The nation�s per capita gross national product [GNP] has grown from only $100 in 1963 to $24,500 in 2007. This phenomenon has been referred to as the �Miracle on the Han River .� The economy began to reach maturity in the 1990s as exponential growth slowed to a robust rate averaging 6.5 percent. The rapid economic growth of the late 1980s was further boosted by hosting the 1988 Summer Olympics in Seoul , as well as the 2002 World Cup with Japan . Furthermore, the service sector has grown to comprise about two-thirds of GDP. During this period, Korean workers� wages increased considerably, leading labor-intensive industries to move elsewhere, such as China , Vietnam , and Indonesia . In 1996, South Korea became a member of the OECD [the �Rich Man�s Club�], a milestone in its development history. At the start of the 21st century, predicting that the Internet would become an important factor in the global economy, the government sought to make South Korea the world�s leading IT nation in just 5 years. With public funds, Seoul began to actively support its native IT industry, led by flagships Samsung Electronics and LG Electronics. Success was seen at home in following years with the development of DMB and WiBro technology and abroad with Korean IT products and services capturing market share in key sectors such as semiconductors. With this technological background, South Korea has been termed one of the �Next Eleven� economies and at its current rate, is expected to be equal in size to the economies of the United Kingdom and France by 2025. In addition to its advanced IT infrastructure, the government is now beginning to invest in the robotics industry. With the aim of becoming the �World�s Number 1 Robotics Nation� by 2025, there are plans to put one robot in every household by 2020. There are other ambitious plans to expand or create other sectors of the economy, including the financial, biotechnology, aerospace and entertainment industries. Not only this, in less than two generations, the nation has established itself as one of the world�s leading industrial nations, especially excelling in the fields of shipbuilding and manufacturing of electronics, semiconductors and automobiles. International financial markets positively regarded Korea �s economic achievements, including sustained high growth, moderate inflation, high national savings, nominal external deficits and significant government budget surpluses. Korea has been rapidly integrating itself into the world economy since the onset of the 1997 crisis. The government has advanced a new paradigm that involves upgrading business practices to international standards, promoting human resources and technology development and enhancing institutional efficiency. The timing and strength of the economic recovery will depend largely on the pace of corporate sector restructuring, household adjustment to reduced job security and investor confidence in Korea . The government remains strongly committed to reform and will continue to implement financial and corporate restructuring while pursuing flexible macroeconomic policies conducive to growth. In fact, Korea �s goal is to solve the problems rooted in its past and create an economic structure suitable for an advanced economy meeting the challenges of the 21st century. Following the change of government in 1998, Korea renewed its resolve to work with the IMF to fully implement comprehensive reform measures. As such, Korea was determined to adopt stringent adjustment measures to overcome economic crisis. The new leadership took steps to promote reform in the financial, corporate, public and labor sectors with a view to restoring and strengthening foreign investors� confidence as well as maintaining a commitment to a free-market economy, restructuring of the chaebol-based system, and increasing flexibility in the labor market. Korea�s foreign currency reserves that totaled a mere $8.9 billion as of the end of 1997 rose to $215.9 billion as of February 2006 and the nation has been able to repay all the $13.5 billion rescue loan from the International Monetary Fund (IMF). To this end, it is important to mention that the macroeconomic policy pursued by Korea aimed and still seeks to achieve stabilization by requiring acquisition of sufficient foreign reserves, reforming the corporate and the financial sectors, and laying a foundation for enhancing the country�s long-term growth potential. The Bank of Korea maintained a tight monetary policy stance since 1997, reflected in the market interest rate hike that at one point reached as high as 20 percent. In the public sector, a stringent government budget was implemented with a 3.8 percent growth rate, which is lower than the nominal GDP growth. The organization and staff of government agencies were reorganized and paired down while local government budgets were reduced. As a result of structural reforms in the economy following the 1997-98 upheavals, Korea was able to build a strong industrial foundation, especially in the areas of semiconductors, automobiles, shipbuilding, and petrochemicals. For example, Korea �s shipbuilding industry holds 32. 3 percent of the world market share, competing neck and neck with Japan , followed by the People�s Republic of China with 6.8 percent in 2001. Since Nov. 1997, however, the currency crisis and financial meltdown have threatened the remarkable economic growth Korea has achieved over the past three decades. According to a recently published survey, the top 10 export products were: semiconductors, automobiles, computers, wireless telecommunication equipment, ships, oil products, synthetic fibers, visual display devices, steel plates and clothing. Those items accounted for 55.4 percent of the nation�s total export revenue recently. Compared with the top 10 item list made in 1982, only five items � clothing, ships, steel plates, semiconductors and visual display devices remained on top. Semiconductors, automobiles, and communication equipment grew so vigorously in terms of export that it topped the list and replaced other items such as shoes, synthetic filaments, audio equipment, textiles and steel structures. And side by side came the reform process. The corporate sector reforms aimed to achieve two objectives; to reduce the size of corporate debt, and to institute a new corporate governance structure that induced better and more transparent management. Unlike in the past, the government did not intervene directly in the restructuring of the corporate sector. Instead, the government focused on improving legal and institutional environment to facilitate and monitor the process and supported the financial sector to expedite its restructuring efforts by providing funds for recapitalization and liquidate all nonperforming bonds. Big corporations led by Hyundai, Samsung, Daewoo, LG and SK groups agreed to realign their businesses in seven areas � semiconductors, petrochemicals, automobiles, aircraft, rolling-stock, power generating facilities, ship engines and petroleum refining. Their efforts to merge companies in the same line of business to cut the number of companies in each field reduced the number of subsidiaries from 804 in April 1998 to 544 in 2000. This exercise is still continuing during 2007. Comments. South Korea �s average annual GDP growth of 8.6% means its economy doubled in size every 9 years. In 2006, South Korea �s GDP product was estimated at US $897 billion at current exchange rates (US $1 = W914.65 ) or US $1.196 trillion computed using purchasing power parity (PPP). Coupled with a low population growth rate of less than 1% (estimated at 0.394%), South Korea �s population of 49 million people, enjoy one of the highest standards of living in East Asia . Four decades ago, GDP per capita was comparable with levels in the poorer countries of Africa and Asia . South Korea has joined the trillion dollar club of world economies. Today, its GDP per capita is equal to the lesser economies of the EU. South Korea country was badly devastated during the Korean war that ended in the mid-1950s. During the decade of 1950�s, the Philippines was rapidly recovering from World War II. In terms of development and rebuilding their respective war-torn economies, the Philippines had a lead time of more than 10 years compared to South Korea . In the 1960�s, the Philippines was richer than South Korea . The Philippines had a larger per capita gross national product (GNP) and a far larger base of natural resources. By the 1990s, however, Korea 's per capita GNP was three times greater than that of the Philippines . In addition, South Korea 's social indicators have shown greater improvement. According to the U.S. Congressional Budget Office (CBO) study, �A variety of factors contributed to the separate paths that South Korea and the Philippines have taken. As would be true in any case, unique cultural and societal influence played a role. But the political and economic management of each country probably mattered as well. South Korea, for the most part, pursued outward-oriented [export-led growth] economic policies and experienced only moderate corruption; the Philippines pursued inward-oriented economic policies, accompanied by massive corruption.� (source: http://www.cbo.gov/ftpdoc.cfm?index=4306&type=1) @@@@@@@@@@@@@@@@@@@@@@@ Source: http://www.project-syndicate.org/commentary/stiglitz91 The Malaysian Miracle August 31 marked the 50th anniversary of Malaysia �s Merdeka: independence after more than 400 years of colonialism. Malaysia�s peaceful, non-violent struggle may not have received the attention that Mahatma Gandhi�s did in India, but what Malaysia has accomplished since then is impressive � and has much to teach the world, both about economics, and about how to construct a vibrant multi-racial, multi-ethnic, multi-cultural society. The numbers themselves say a lot. At independence, Malaysia was one of the poorest countries in the world. Though reliable data are hard to come by, its GDP (in purchasing power parity terms) was comparable to that of Haiti , Honduras , and Egypt , and some 5% below that of Ghana . Today, Malaysia �s income is 7.8 times that of Ghana , more than five times that of Honduras , and more than 2.5 times that of Egypt . In the global growth league tables, Malaysia is in the top tier, along with China, Taiwan, South Korea, and Thailand. Moreover, the benefits of the growth have been shared. Hard-core poverty is set to be eliminated by 2010, with the overall poverty rate falling to 2.8%. Malaysia has succeeded in markedly reducing the income divides that separated various ethnic groups, not by bringing the top down, but by bringing the bottom up. Part of the country�s success in reducing poverty reflects strong job creation. While unemployment is a problem in most of the world, Malaysia has been importing labor. In the 50 years since independence, 7.24 million jobs have been created, an increase of 261%, which would be equivalent to the creation of 105 million jobs in the United States . There were many reasons not to have expected Malaysia to be a success. Just as Malaysia was gaining its independence, the Nobel Prize winning economist Gunnar Myrdal wrote an influential book called Asian Drama , in which he predicted a bleak future for the region. Malaysia is rich in natural resources. But, with few exceptions, such countries are afflicted with the so-called �natural resource curse�: countries with an abundance of resources not only do not do as well as expected, but actually do worse than countries without such benefits [the Philippines being one of them]. While natural resource wealth should make it easier to create a more equalitarian society, countries with more resources, on average, are marked by greater inequality. Moreover, Malaysia �s multiracial, multi-cultural society made it more vulnerable to civil strife, which has occurred in many other resource-rich countries, as one group tried to seize the wealth for itself. In many cases, minorities work hard to garner the fruits of this wealth for themselves, at the expense of the majority � Bolivia , one of the many rich countries with poor people, comes to mind. At independence, Malaysia also faced a Communist insurgency. The �hearts and minds� of those in the countryside had to be won, and that meant bringing economic benefits and minimizing �collateral� damage to innocent civilians � an important lesson for the Bush administration in Iraq, if it would only listen to someone outside its closed circle. And Malaysia had a third strike against it: for all the talk of the �white man�s burden,� the European powers did little to improve living standards in the countries they ruled. The dramatic decline in India �s share of global GDP under Britain �s rule, as Britain passed trade laws designed to benefit its textile producers at the expense of those in its colony, is the most visible example. The colonial powers� divide-and-rule tactics enabled small populations in Europe to rule large numbers outside of Europe , pillaging natural resources while investing little in the physical, human capital, and social capital necessary for an economically successful, democratic self-governing society. It has taken many of the former colonies decades to overcome this legacy. How, then, does an economist account for Malaysia �s success? Economically, Malaysia learned from its neighbors. Too many of the ex-colonies, rejecting their colonial heritage, turned to Russia and communism. Malaysia wisely took an alternative course, looking instead to the highly successful countries of East Asia . It invested in education and technology, pushed a high savings rate, enacted a strong and effective affirmative action program, and adopted sound macroeconomic policies. Comments. Like other East Asian countries ( Singapore and Indonesia , in particular), Malaysia dealt decisively with their own Communist movement. Like South Korea , Taiwan , and Singapore , Malaysia geared its economy towards an outward-looking, export-oriented strategy (2006 total exports: $158 billion; Philippine exports in 2006: $47 billion). The export-orient approach is both the catalyst and the result of their industrialization. And like most East Asian countries (the Philippines being the exception), Malaysia has a relatively low population growth rate, estimated at 1.76% in 2007. Malaysia also recognized that success required an active role for government. It eschewed ideology, following or rejecting outsiders� advice on a pragmatic basis. Most tellingly, during the financial crisis of 1997, it did not adopt IMF policies � and as a result had the shortest and shallowest downturn of any of the afflicted countries. When it re-emerged, it was not burdened with debt and bankrupt firms like so many of its neighbors. This success was, of course, not only a matter of economics: had Malaysia followed the policies recommended by the IMF, it would have torn apart the social fabric created over the preceding four decades. Malaysia�s success thus should be studied both by those looking for economic prosperity and those seeking to understand how our world can live together, not just with toleration, but also with respect, sharing their common humanity and working together to achieve common goals. ******************************** Source: http://www.philstar.com/index.php?Global%20News&p=54&type=2&sec=146&aid=2007101024 Malaysia to hire maids from South Asia, Laos and Vietnam to fill shortage Wednesday, October 10, 2007 KUALA LUMPUR (AP) - Agencies that supply foreign maids in Malaysia on Wednesday welcomed a government plan to allow recruitment from India , Nepal , Laos and Vietnam to fill a shortage caused by low wages and reports of abuse. "We were waiting" for this decision, said Raja Zulkepley Dahalan, president of the Malaysian Association of Foreign Housemaids Agencies. "Of course we support this." He said Malaysia would need to hire at least 1,000 maids every month to alleviate the shortage. "We have a problem now 94.8 percent of the maids are from Indonesia . We cannot depend so much on one source," he told The Associated Press. He said fewer Indonesian maids are applying to work in Malaysia because salaries here are lower than in other countries, and also because many are scared away by media reports that maids are physically abused by Malaysian employers. Reports have highlighted several abuse cases in past months. In the most publicized case, a maid escaped her allegedly abusive employer's 15th floor apartment with a rope made of towels, sheets and clothes. In August, another maid was found murdered in her employers' home. The employer has been charged with the murder. But Raja Zulkepley said some of the other reports of abuse were exaggerated in the regional media. Malaysian officials have insisted such cases are rare among the country's almost 320,000 foreign maids. Besides Indonesia , about 5 percent of maids come from the Philippines , Cambodia , Sri Lanka and Thailand . Indonesian maids typically earn 500 ringgit (US$147) per month while Filipinos earn about 1,300 ringgit (US$380) per month. On Tuesday, Malaysian Deputy Prime Minister Najib Razak said that as of Sept. 30, there were more than 2 million foreigners working in mainly manufacturing, plantations, homes, construction and service industries. More than half of them come from Indonesia . OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO |