Monday, April 13, 2009

Reproduction: Social Welfare Article

A plea was made at the peak of the Oil Crises in 2008 for a new Social Welfare Policy for Malaysia primarily to mitigate the hardship of Malaysians in the lower socio-economic groups from the oil price shock, though other macroeconomic considerations feature prominently as well.

While a few of the assumptions of the writer have clearly changed due to circumstances brought on by the subsequent global economic crises and the collapse of commodity prices, the central plank of social welfare as good public policy holds. If anything, the economic downturn makes such policy rethink all the more pressing. Nations in the Asian region, Singapore, China and Taiwan(China)have all beefed up welfare aid to the economically depressed. Australia on top of its institutionalised super-generous social security , was the first to give out handouts as a driving component of its stimulus package. A second handout is being given out around Easter, benefiting those with incomes of AU$100k per annum and below.

A fresh boost to social welfare in Malaysia, however weak comparative to neighbours, should be on the agenda.

Indeed a measure of the quality of public policy of any nation is the quality of its safety net provisions for the vulnerably disadvantaged. Social security would present a humanising side to mitigate the avariciousness of the unfettered free market.

In today's Malaysian Insider blog comment to an article "Malaysia to push economic reform", Professor Chan Chee Khoon of the Science University of Malaysia has timely called on government to address the wages and incomes issue, and institute minimum wage to spur aggregate demand.

This writer believes that social security is an essential policy tool to boost domestic demand, reduce petty crime, building of truly caring society and other desirable social objectives.

In the "Islamic Welfare State" of PAS, and Khalid Ibrahim's "Merakyatkan Ekonomi", one hopes the first seeds are now been sown which will in time bloom into a decent
Social Security system for Malaysia.

Francis Ngu


TEXT OF REPRODUCED ARTICLE
DR. FRANCIS NGU CALLS FOR MAJOR SOCIAL WELFARE POLICY INITIATIVE.

SUMMARY:

The abandonment of subsidy for fuel and even other subsidies will lead to severe and multi-sectoral repercussions yet to be fully realized, including stagflation, increased unemployment, social unrest, manifold increase in poverty and poverty related crime. At this crucial juncture, a long term social welfare policy programme should be put up, even belatedly, to mitigate quite disastrous spin-offs from the controversial policy of abandoning fuel and other subsidies. The implemention of a social welfare policy is proposed here as a major prong of a social justice reform programme, and to mitigate the effects of local and international economic slow down.

FULL TEXT:

In the midst of social anger and large and small protest actions of various groups, it is incumbent upon social welfare NGOs, political workers, scholars, professionals, leaders in the business and civil service, and legislators to begin an urgent debate and discussion on the medium and long-term socio-economic impact of a possible doubling of petrol price in the near term to around RM4 per litre.

Considering that fuel price would have risen 3-4 fold over a medium length period of 5-10 years, if the pump price approaches RM 4, and all the other essential goods see price rises to compound, the purchasing power of the Malaysian consumer will fast evaporate.

This is well understood and painfully felt by the public at large. The anticipated dive in consumer and investment confidence, and the drop in GDP is reflected in the opening bells of the KLSE on the morning of June 5th.

The concurrent effort in wages reform in the private sector, even though feeble, and the need to scale down foreign labour, add to the difficulties of various business sectors. Job creation will slow down, unemployment will worsen.

All taken together, a stark scenario of rapid inflation and slowed growth, in Malaysia and overseas, sets the ground for the worsening of poverty and increase in the poverty rate towards levels of 1970s, if not earlier. In its wake, social unrest and poverty related crimes. Without political will for reform, poverty eradication will be thrown into the ever distant future.

There is no doubt that Malaysia is facing a severe crisis, which, to the lower socio-economic groups, is far more severe than the 1997, Asian Financial Crisis.

Yet, ironically, the crisis to the average consumer, may not have to be so severe, or there need not even have to be a crisis at all ! This is because we are also in an unprecedented commodities boom! The export price of petrol has increased 10 fold from under US $20 to US $ 140 ! CPO is the mother of all golden crops now at some RM 3500 per tonne.

It only points to the fact that the nation’s wealth distributive mechanisms have failed miserably. The GINI index has risen steadily to 0.47.

For some 2 decades, government has resisted any notion of meaningful wage reform, including a minimum wage as a start. A systematic social welfare net has been denied to the lower socio-economic groups, even during the 1997 Asian Financial Crises. Such an institutionalised social safety net is not mentioned even as we face paying the full price of fuel on world markets.

The promoters of the denial mentality paint a glowing picture of pristine economic health against a fictitiously low unemployment and poverty rate.

The most prosperous nations of the world have poverty rates of 10-12 % against Malaysia’s poverty rates of 2-3 %. Unemployment rates of 4-5 % only occur in intolerably booming western economies. The claim that Malaysia has one of the lowest prices for fuel and essential goods should at least be balanced by the fact that wages in those other high cost countries are 5-15 times Malaysian wages. Again, in those high cost countries, annual income of RM 150K and below is considered low income in public policy debates; an annual income of RM 50K may already entitle a family to receive welfare assistance. The monthly social welfare payment to a poor family overseas may be 4-5 times the starting wage of a professional in us “lucky” Malaysia!

When we face the reality of prices in a globalised world, when subsidies are being dismantled, it is hoped that the denial and feel-good mentality will fade away. Otherwise, there can be no meaningful debate on public policy.

It is hoped that meaningful public policy debate will lead to meaningful public policy within the short term. We are now moving painfully away from a distorted market economy with multiple subsidies, but we are faced with a market economy where eventual removal of price controls is leading to inflation at a pace threatening the livelihood of many. Nearly all the first world free-market economies have solid social welfare systems put in place 50-100 years ago, both as a principal of social justice and also as an essential policy to safeguard social stability.

A Malaysian Social Welfare System must be set up soonest, and should be running before any further price rises in fuel and further removal of other subsidies. The compensation to vehicle owners is a queer cabinate invention, which does not address the rising cost of living for all consumers, especially the poorest who obviously may not even own a motor vehicle. A long-term social welfare programme must proceed alongside a more vigorous wage reform drive in the private sector and regulation of foreign labour. Personal tax cuts and refunds by significant elevation of the lower thresholds should also be considered.

Welfare as a social policy principle.
When the livelihood of a large segment of society is threatened to a level affecting social stability, the arguement for and against individual charity vs institutionalized charity becomes academic and should be put aside. The basic dignity of living is too serious a matter to be left to charitable whims of individuals, but must be effectively addressed by institutionalized welfare. Individual and community charity initiatives continue to grow ever stronger in countries with matured social welfare protection.

In these countries too, there is no proof of generalized economic malaise as a result. Fine tuned welfare programmes are nowadays tied together with skills re-training and with employment search for the healthy unemployed.

Social welfare recognizes the right of citizen to have a basic dignity of living and belonging to society, something so important to social peace and cohesiveness. It is further an instrument for providing a level playing field for all, and for individuals and families to realize their full potential. Human creativity and initiative may be suppressed and trapped by grinding poverty.

Last but not least, social welfare is an integral part of the programme of major political parties promoting people’s welfare using different terms such as social justice, democratic socialism, welfare state and others. It is now more apparent than ever before that a dose of welfarism is needed to survive the disaster caused in part by the globalised and ailing free market.

Social welfare is affordable. Although Malaysia is a mid-range developing country, the present commodities prices boom alone enables Malaysia to put in place a robust social welfare programme soonest. The present petrol price rise is saving the nation of a massive “subsidy”, which is really increased profit to Petronas. When the pump price is floated at international market prices, the profit increase to Petronas is RM 50 billion, more if world crude rises further. All other subsidies, if finally withdrawn, is estimated to save government another RM 50-80 billion. All leakages of subsidies, and to undeserving sectors, would have been plugged.

Certainly, much of the RM 50 billion or RM 100 billion earned by Petronas or saved by government, should be set aside for economic investment, especially public transport infrastructure. It is immediately obvious that even 10% of either sum is sufficient to launch the programme, 25 % of either will establish a good programme and 50% will send all the street protestors praising the government. Thus welfare aid is institutionalized at a level consistent with the economic strength of the nation.

Social welfare payments may be implemented within months.
Emergency Implementation.
Should it be necessary to reduce public panic, emergency implementation may be necessary, with all the pitfalls fully realized.
With the progress in electronic banking, there should not be difficulty to effect payment to all IC card holders with a bank account. Payment to minors should be through parents.
Payments to the poorest of the poor without bank accounts, may have to be separately dealt with, as well with some Sarawakians with no IC cards. Without means testing, this may mean a significant leakage to the small wealthy segment of society; however it should be a tolerable price to pay for staving off social unrest.

Long term Implementation.
Fine tuned long term programs will have to be based on Legislative Framework, Means Testing, Welfare Fraud Detection and Judicial Sanctions. If we can embark on space age ambitions and mega-projects, can we not establish an efficient and effective implementation network nation wide for social welfare within 1-2 years?

Social welfare to mitigate economic slow-down.
Malaysia is said to have negotiated its way out of the 1997 crisis by pump-priming the economy by spending on infrastructure, among other measures. The economic slow down this time round is dictated by rising cost of production and severely damaged consumer and investor confidence and anticipated dipping of export demand for manufactured goods. Tourism and related services may also be affected. A social welfare system spending of RM 20-30 billion alongside infrastructure spending will help maintain domestic retail and services demand and restore part of the business confidence.

Thus a social welfare system is justifiable in terms of public policy, affordable , technically feasible and even economically sound.

OBAMA; PAX GRANDE UNIVERSALIS?

OBAMA STRIKES: PAX GRANDE UNIVERSALIS ?

In the midst of global Recession and on-going campaign against terrorism, President Obama has in recent days reinforced himself as a statesman ready to rewrite USA foreign policy, and paint a new international relations landscape for the new century.

Recapitulating, his "Change we can" campaign slogan not only fired up Americans, but inspired all those around the globe yearning for a better social and world order. His inaugural " -- history is not on their (dictators') side--" gave the needed confidence to those engaged in democratic and human rights movement; his outstretched hand softened public opinion in staunchly anti-American countries, including Iran. He has delivered on some major policy provinces, of which there are two which are perhaps the most far-reaching to date.

ABOLITION OF NUCLEAR WEAPONS

The president is on record to have called for the abolition of the entire nuclear arsenal in the world, the first US President to have committed to so. He also announced an immediate return to the 1972 Nuclear Test Ban Treaty which his predecessor had so recklessly abandoned and one which had underpinned international nuclear non-proliferation efforts.

One would have thought his declaration would have delivered a seismic shock to nations shielded by the US nuclear umbrella, like Japan, S. Korea and Australia.
On the contrary, in a article in the Melbourne Age on March 8th, several Australian luminaries led by former Prime Minister Malcom promptly call on Australia to seize the Obama moment and play a proactive role in the abolition of Nuclear Weapons.They point to the catastrophic geo-political, social, health and economic fallout from even a "minor" nuclear conflagration. The same broadsheet has on Easter Monday given a generous endorsement of the President’s foreign policy overtures as well.

It is now incumbent upon leaders of nations possessing nuclear weapons to engage positively with President Obama on nuclear non-proliferation, test ban and abolition of the entire arsenal. Nearer home, Wisma Putra and the ASEAN Secretariat, should add their voices in line with the ZOPFAN principle. Credit also should be given to Dr. McCoy and others in Malaysia who have campaigned for years on the issue, though drowned out by national political problems.

END OF ISLAMOPHOBIA ?

Following an enchanted tour of Europe, Obama not only declared to the Turkish Parliament " --we will not fight war with Islam--", but must have stunned many by stating that Islam has enriched the culture of USA. He will undoubtedly be slammed by many on the far right; but here is a statesman, Christian at that, who marvels at the magnificence of a Turkish mosque and gives meaning to the “out-stretched hand” of his inaugural speech. . In one stroke, he has not only tried confidence building, but has really started a civilizational dialogue, as essential to world peace as it is presidential.

Islam-bashing following 911, much of the non-Islamic world will now have to reorientate itself to a new language of trans-cultural reconciliation; an that of course would include the print and electronic media.

Home in Malaysia, may we credit a towering Malaysian leader who authored "The Asian Rennaisance", and made an impassioned plea for civilisational dialogue over a decade ago. He would have been pleased with the Obama initiatives, like some of us, but even more pleased that, even as Obama spoke those re-assuring words to Muslim sisters and brothers, many non-Muslim Malaysians (voters) showed they are able to cross the cultural and religious divide and seem poised to embark on the noble road of ethnic reconciliation.

At first glance unrelated, these two major areas of US policy have in reality considerable inter-relation.With the end of Cold War, a “clash of civilisations” is believed to be the likeliest trigger for a nuclear conflict, such as in the Middle East or in South Asia. Thus the policy re-tuning in the above fields is indeed of visionary wisdom.

GESTURES TO LATIN AMERICA

Again, at the Pan-American Summit, the President lost no time in taking intiative to
reduce hostility to the US from her "traditional sphere of influence" which is Latin America. Declaring "I am not interested in arguements of the past--", he set out to envisioned a new future of cooperation and progress based on mutual respect. His conciliatory message to Cuba will in due course spring us with many surprises and hope for greater stability and social justice in a whole hemisphere. Though US-Cuban
antagonism has long ceased to be a threat to world peace, like it was in 1961, improvement in their bilateral relations would nontheless be consistent to a more peaceful and harmonious world order.

Has a new world millenium just begun, a more enlightened millenium, some 10 years late ? Will the years ahead see peace and goodwill break out in the world? Is it penultimate naivity to dream of a peacefuland harmonious order in world history ever?

It is as much for civil society, as leaders of nations large and small, to press for millenial change in the space that Obama has created.
It may have been the most meaningful pre-Easter message one hears; and shall we conclude with : In God Allah we trust.

Francis Ngu.
(updated 19th April)

Saturday, April 11, 2009

SUNGGUH BESAR ALLAHKU

An attendance at an Indonesian language Christian Easter service today has provided the substance for this post; it throws some reflection for me a Malaysian, in the face of the gazetted ban in Malaysia for Christians to use the word Allah.

The main explicit reason for the ban was that shared usage of the word ALLAH would cause confusion to the majority Muslim population of Malaysia, but this has been firmly refuted by a most respected Malaysian Muslim cleric, Tok Guru Nik Aziz.

During a recent short husting during the Batang Ai by-election campaign in
Sarawak, an Iban (Dayak) showed me the the first lines of the Genesis in the Iban bible where clearly the word Allah was used from the very beginning that the Iban Bible was published. Anyone can figure out the implications of such a legal ban on the word Allah, for Christians in Malaysia using the local language Bible. Enormous distress, to say the least.

Since then I have come down to Melbourne meet my children here.

There is this suburban Uniting Church of Australia (amalgamation of Methodist and Presbyterian churches), which hosts an Indonesian language service for Indonesian Methodists resident in Melbourne. Many of those at the service are of ethnic Chinese origin, but there is also a sprinkling of the Indonesian ethnic diaspora and just a couple of fairer skin Australians among the small congregation. Thus I was able to speak with a Sumatran Batak, who number only 2 million back in Indonesia and of whom 5% are Christians.

Although not a Methodist myself, I nevertheless feel brotherliness with a congregation celebrating in Bahasa Indonesia of which my national language in Malaysia is so similar. There was for me a certain "at home in Malaysia" feeling.

Throughout the service, the mainly ethnic Chinese congregation used the words "Tuhan" and "Allah" in reference to GOD repeatedly. The above caption " Great is the Lord God" was flashed on the projection screen as the hymn to the same title was solemnly sung. Thus in Indonesia, with the largest Muslim population among nations in the world, there is acceptance for Christians to refer to God as Allah.

With the gazetted ban on Christians in Malaysia using the the word Allah, would it follow that an Indonesian Christian would be banned from bringing the Indonesian
language Bible into Malaysia?

Had Malaysian authorities foreseen that the gazetted ban may have extended repercussions beyond its own Christian citizenry ?

Blog master

Easter and a Revisit

On this Easter sunday, the eternal massage is that by the death and ressurection of one, Jesus Christ, God and Man, (add a Palestinian of Judaic traditions), humankind has the prospect of salvation from the eternal damnation from Sin. Following Him and His teachings, people will rise from death and attain the Paradise. Hallelujah! ( I hear Handel's Messiah).

I remember attending religious classes in my days at a Sarawak Catholic LaSallian School, whose Irish brothers I remember with highest respect. They evengelised without coersive orientation, but by combining spiritual humility and enlightened multicultural tolerance and appreciation.

In that enlightened Catholic Christian context, the classes I refer to were introduced to simple texts "One God Many Paths".

In the belief that I have subsequently evolved, the book title is quintessentially Christian, and "Catholic" at that. Mark however, the notion of "One God Many Paths" may be contested by not people of other faiths but by many new found Christians. It is comforting though for one to hear on BBC on Easter, from the lead Anglican cleric in Bagdad, who believes that good followers of Judaism and Islam may be saved just like good Christians.

Back to Easter. The passage from death to life, from darkness to light or from evil to goodness resonates through different faiths of course: the Hijrah of Islam (Alhamdullilah!), the Passover of Judaism, the Buddhist enlightenment under the Bodhi Tree celebrated at Wesak, the Deepavali of the Hindus, even the scientific humanism of the atheist. Thus a conscious and spiritual search for the Truth and Goodness, whether the faith is polytheist, monotheist or nontheist, much of it also embodied in a relatively new faith of Bahai.

The great faiths, and would one dare to say scientific nontheist faith, are Divine gifts to humanity, different in form to suit different cultures, at different times of history. They are however very similar in substance, in the shared core values of love and humanity, and they should be universally shared in the globalised confluence of digital age civilisation.

That apparent differences in faiths may not lead god-created communities, and indeed the entire world, to self-destruction in nuclear-age conflicts, but that the shared universal values be the driving force bonding humankind, divinity and divine-created Planet Earth.

Hallelujah!

Francis Ngu


Friday, April 10, 2009

Harnessing the talent in Pakatan

A statement of concern for the "Dearth of talent in PKR--" by Muaz Omar has appeared 0n the Malaysian Insider blog today. PKR may count itself lucky to be singled out among Pakatan parties, or for that matter all other parties for criticism; it challenges PKR national leadership to conduct its own assessment of the truth or otherwise of the writer's assertion.

While one can fairly easily dispute Omar's contention, one may more critically question Keadilan if it has adequately and optimally harnessed available talent in the party. I think there are qualified people in numerous professional fields, business people and experienced NGOs among its membership nationwide, many of them, thuough second to Khalid Ibrahim's profile, have not emerged to the front at this stage of the struggle. Nor should all of them be in the frontline in future; it is however of critical importance for them to begin playing co-ordinated supportive roles to Pakatan/Keadilan legislators, even in the backrooms.

Even in the late- on- board East Malaysia, among its indigenous leadership there are a couple of PhDs., MBAs, lawyers and medical doctors, and numerous other graduates. A few newly retired civil servants of profile may also be in the pipeline. These would be readily overwhelmed by highly qualified professionals among the membership in Peninsular Malaysia, though some more would be undoubtedly welcome.

It has to be appreciated that many young professionals with high "market worth" would hardly think it a wise choice career-wise to join a movement which in its heydays was lambasted by some for its determined presence on the streets. To most of the middle and upper middle class,an association with the "Reformasi " mould was just not "in". Even if they did come in, professionals may not generally be the ones most effective in mobilising the masses in the all important electoral battles past, present and to come.

Going forward it may be time for the party to start co-ordinating its intellectual base and harnessing their full potential for the better governance of future federal and state governments.

And here it is for management consultants, such as Muaz, to contribute. Correct me, if with my meagre experience in human resource management, if I were to recommend the following basic measures to the party for a start:

1. Start a HR electronic databank for the party, separate registers for Diploma, degree, masters and PhD; electronic sorting by public-sector or business and industry experience or both should be possible, among other characteristics ;

2. An HRM national team of the party to identify key people for designated public policy areas;

3. Assigning public policy teams to State Excos, related shadow cabinet, and other state and federal YBs;

4. Public policy ad-hoc briefings, seminars, work camps for shadow cabinet and Pakatan legislators (could BN legislators be invited too?);

5. Public forums on public policy for confidence building by Pakatan parties

A voluntary contribution from Muaz and others would be undoubtedly welcome by the party.

Francis Ngu,
MBBS (Mal.), MHP(UNSW)
LATE ON BOARD

A near IT-illiterate, I chance upon a blog invitation to set up my own blog, so here I am trying to navigate the blogger's jungle. I have said a few things on other's blogs; so now I try say more on my own tool.

Welcome on board the late sail out of exotic Borneo !

Francis Ngu