Categories
Liberty Society

[2407] Between fictitious and true unity

There is a strong emphasis in unity in Malaysia.

It is easy to rationalize why so. The country has been diverse from the very beginning of its modern history. Each group largely lives differently. While difference and diversity can be sources of strength, it can also be a source of conflict.

For all the myths believed by some that race relations nowadays are worse than yesteryears, the worst race riot of the country happened in Kuala Lumpur in May 1963. Another big race riot happened in Malaysian Singapore in July 1964. Conflict between races itself was part of the reasons why Singapore was expelled from the federation in 1965.

Those conflicts have left behind a deep scar in Malaysian society, even as many Malaysians today have never witnessed a race riot first-hand. These old fears are becoming increasingly irrelevant but it is still part of what describes our society. So entrenched is the fear of history repeating itself that many are mindful of the tiniest possibility of a race riot.

To the mindful and those whom are trapped in the 1960s and 1970s still, they believe in the narrative of unity. They believe in unity being the answer to Malaysian divisiveness.

As the wisdom goes, if everybody were united, there would be no reason to quarrel with each other. Nobody would say anything hurtful to the collective ethnic consciousness. In a united Malaysia, everybody would laugh together while waving the Jalur Gemilang happily.

On the surface, the unity narrative is appealing. The ideal provides a stark contrast to the chaotic Malaysia of the 1960s and a period of time after that. Yet, scratch the skin and it will peel to a rotten core.

Their particular unity narrative ignores differing viewpoints. At best, it considers differing positions as foreign. ”It is not part of our culture,” so the typical response goes. Malaysians holding differing ideals are accused as having their mind colonized by outsiders. Imagine in times of globalization, one talks of neo-colonialism. One has to be either paranoid or stuck in time.

When differing viewpoints becoming too intellectually challenging for the simple narrative, threats are issued. When there is nowhere to go within the realm of pure reasons, talk of feelings. File a police reports when feelings are hurt. In the unity narrative, one is not supposed to hurt anyone else’s feeling.

And some fly the flags because for the government demands so. The government even threatened to do something to remedy the failure to fly a piece of cloth back in 2006. In Ipoh in 2010, businesses had to fly the Jalur Gemilang if business owners wanted to renew their licenses.

One can see how pretentious that unity is.

See how it belligerently pushes aside liberty.

It seeks monotony. It rejects colors. It is either you are with us, or against us.

Unity is not mutually exclusive of liberty of course. In fact, true unity can only arise under free environment, where every person is free. It will be hard to achieve unity under such a set-up because individuals in a free society will have difference but if ever dialogue and understanding will overcome the difference, then everybody will unite out of their own free will.

That is the route to true unity. It is tough but it is the unity that is sincere.

The proponents of unity whom are trapped in the 1960s possibly know of this. They probably realize the tough road to true unity. Too cowardly to trust in individual effort to bridge the gap perhaps, they choose the ersatz version.

That version of unity is one that is shown only because there is a big stick somewhere, waiting to be taken out if someone dares say, no, I am different.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved
First published in The Malaysian Insider on August 5 2011.

Categories
Economics

[2406] Better food stamp and the wider context

The Malaysian government may introduce what seems to be a non-tradable food stamp program to combat high food prices. The goal behind it is noble. While that is so, it must be noted there are at least two ways to improve the outcome of the program. Moreover, the issue of high food prices should be assessed more holistically.

First, tradable food stamp will likely improve recipients’ welfare more than mere non-tradable arrangement can. Tradability will widen the recipients’ choice set and give them the opportunity to smooth their consumption. Furthermore, they may not always require subsidized food. Tradable stamps will allow the recipients to exchange the stamp for other items of need or even cash. Such exchange tradable stamps will widen the welfare-improving effect of the program by implicitly covering those who are not explicitly covered by the program. Whatever the price of sale of the stamp, it is will be lower than the face value of the stamp for otherwise, the stamp will be worthless. This essentially means the uncovered purchasers of the stamps will also be subsidized.

Second and perhaps the natural expansion of the first option is a direct cash transfer. From public finance perspective, this is likely to be the most efficient solution within the restrictive goal of enhancing the welfare of specific group of individuals.

Regardless of the costs and benefits of food stamp, high food prices in general is a wider issue. The wider context is important.

One context is the fuel versus food debate. Government policy on biofuel may have inflationary effect on food prices. As reported by Reuters in March 2010, the biofuel policy was supposed to start in June 2011.

The other more pressing context is monopoly of foodstuffs in Malaysia. Exclusive monopoly and quota granted to specific entities on various foodstuffs cause the very problem that the food stamp program aims address.

There are plenty more examples demonstrating contradictory and convoluted government policy.

Perhaps the problem of high food prices is better addressed by undoing unproductive government interventions in the food market. These interventions benefit only specific parties instead of the wider public. Without these interventions and with a little bit of luck, the rationale for food stamps might disappear. More importantly, public welfare can be improved without spending too much public money.

Categories
Economics

[2405] The end of the world? Not today, Galvatron

Now that we are staring at the possible end of the world — or rather, the possibility of the US defaulting on its payment — I am an optimist (hey, the yield rates are still low. That gotta mean something). In any case, a default would likely be temporary. Never mind that the US can still prioritize its payments to prevent default by suspending some relatively non-essential government operations.

Even if it would be more serious like the one in Greece, I have made my position known: the market can live without government bonds. The short run would be ugly. But in the long run, we will be fine.

Categories
Sports

[2404] So far, shitty offense, shitty defense but great goalkeeping

Any Malaysian who identifies with Malaysia will be watching the Malaysia-Singapore soccer match right now. It is not really about Malaysia trying to qualify for the next round of the 2014 World Cup. It is just Singapore.

The first leg was electric although the Malaysia defense was disappointing. The second leg so far is just disappointing, with the exception of the spectacular Khairul Fahmi Che Mat. I am at a loss at why he was not fielded down for the first leg.

The first half of the ongoing game can be summed up in 6 words: shitty offense, shitty defense but great goalkeeping. Like I said, Khairul Fahmi Che Mat is spectacularly marvelous. If this were Championship Manager, he could get a rating of 8 out of 10, with others between 4, 5 and 6.

I hope the second half is different. Malaysia needs at least 2 goals, given in the first leg, Singapore won 5-3. The only good news are that Malaysia has 45 more minutes, obviously, and is enjoying away-goal advantage. The team better make good use of that.

Categories
Economics

[2403] The world has gone crazy

“…Treasuries have become a form of insurance against their own downgrade.” [Chris Reese. Bonds climb with safety buying as stocks dip. Reuters. July 26 2011]