Categories
Economics Politics & government

[1134] Of Malaysian political parties on the economic spectrum

Within Malaysian politics, I do think economic philosophies have taken a back seat to the point that typical left-right classification of political parties is meaningless. Nevertheless, I would like to classify Barisan Nasional, DAP, Keadilan and PAS accordingly. I will leave the others alone since I do not think the rest are worth talking about at this point.

First stop is the Barisan Nasional, the coalition that has ruled this part of the world for more than 50 years; BN itself is older than Malaysia. Labeling BN is no easy task because, in my opinion, the parties of the coalition band together for power more than anything else. Classification is not made any easier when, the most important party, UMNO for instance, has pursued liberal economic policies as much as it has advocated some left leaning ones. More often than not, UMNO economic policies are ethnocentric which perhaps could fit into typical protectionist policies. UMNO and in my opinion, even MCA and MIC for that matter, are too pragmatic to simply fit into a class. Another component party, Gerakan, on the other hand is pretty liberal. Regardless of Gerakan, given how much central planning is observable in this country and the fact that Malaysia is a mixed economy, I would say BN sits somewhere in the center with slight variation from time to time.

If the act of classifying BN is tough, trying to do the same thing with Keadilan is harder. While BN is a coalition of parties with diverging economic ideals where pragmatism has taken over, at least, if one goes through of the component parties, one might be able to recognize each party’s leaning. The same method unfortunately will not work with Keadilan because Keadilan is a party by itself. Instead of a coalition of parties with different backgrounds, Keadilan is a party of individuals with different backgrounds. They have liberals in classical sense, they have communists, socialists, Islamists; you name it, they have got it. I do not know how Keadilan manages to get liberal and socialists along with Islamist under one roof. A greater mystery is how Keadilan manages to keep them from ripping each other apart. Therefore, I am unsure which direction Keadilan would be taking and I bet Keadilan as a party itself is unsure which path it would want to embark on. The best word I could uses to describe Keadilan is populist. Some people that I know in Keadilan themselves are contented to be mere populists.

Contrary to the two, DAP is easy to label. Without doubt, it is a socialist party. Or, if you like it, a social democrat party.

Finally, PAS. I am happy to say it out loud that PAS has no economic policy; they are too busy policing morality that they have no time for the economy. Nevertheless, Islamic economics does support welfare state arrangement to some extent. Yet, I am hesitant to take that into account as far as PAS is concerned because PAS is pretty clueless about the economy.

Categories
History & heritage

[1133] Of heroes of Ides of March

More than 2000 years ago on this day, Ides of March, Brutus along with several Roman senators stabbed Julius Caesar to death, in hope to prevent Rome, a republic, from falling into authoritarianism. The irony is, of course, the act, which was done to preserve democracy, only accelerated Rome’s journey to dictatorship.

So, who is the hero here?

It would depend on how one look at the event.

Intention-wise, Brutus and the senators would be the heroes. Action-wise, there would be no heroes. Morally, a great dilemma; kill and preserve democracy, let live and kill democracy.

It is a tragedy, no more, no less, even if it is a false dilemma.

Categories
Economics Science & technology

[1132] Of for WiMAX, the winners are…

A big event is expected to occur tomorrow, possibly testing the efficient market hypothesis along the way:

PUTRAJAYA, March 15 (Bernama) — The government will announce the WiMax (Worldwide Interoperability for Microwave Access) licence recipients Friday. [Govt To Announce WiMax Licence Recipients Tomorrow, Bernama, March 15 2007]

Four WiMAX licenses are to be awarded with 17 entities bidding for it in this natural experiment:

The applicants for the Wimax tender include three of the country’s four 3G (third generation) spectrum holders, namely Telekom Malaysia Bhd, Maxis Communications Bhd and MiTV Corp Bhd.

The other bidders are DiGi.Com Bhd, NasionCom Sdn Bhd, MIB Comm Sdn (controlled by Green Packet Bhd), Jaring Communications Sdn Bhd, Asiaspace Bhd, Go Lightspeed Broadband Sdn Bhd, Bizsuft (M) Sdn Bhd, IP Mobility Sdn Bhd, Optical Communications Engineering Sdn Bhd, Celcom Timur (Sabah Sdn Bhd), Fibrecomm Network (M) Sdn Bhd, SGR Capital Bhd, REDTone-CNX Broadband Sdn Bhd, YTL e-Solutions and Electcoms Wireless Sdn Bhd. [Govt To Announce WiMax Licence Recipients Tomorrow, Bernama, March 15 2007]

By looking at the share prices, a lot of people are betting their money on YTL E-Solutions:

Copyrighted by The Star. Fair use.

According to various sources, another two other leading candidates are Greenpacket…:

Copyrighted by The Star. Fair use.

…and Redtone:

Copyrighted by The Star. Fair use.

In economics, efficient market hypothesis states that all information relevant to security pricing is reflected in prices. Let us see whether those prices, as far as the WiMAX bids are concerned, fall under weak, semi-strong or strong efficiency. Or none at all for that matter. If those prices fall under strong efficiency categorization, one has every reason to believe that YTL e-Solutions is going to win one of the licenses.

Let us see if those science fictions I learned at Michigan would bring some quick buck.

Categories
Conflict & disaster Economics Environment

[1131] Of internalizing externality at the Malacca Strait

The Pigou Club would love this:

KUALA LUMPUR: Every ship transiting the Strait of Malacca should pay 1 U.S. cent per dead weight tonnage into a fund to help maintain the world’s most important maritime trade route, regional maritime experts proposed Wednesday. [Experts propose upkeep for Malacca Straits, The Star, March 14 2007]

While I think it is marvelous, we should carefully differentiate the act of internalizing externality and the act of taxing for the sake of generating income. On top of that, the possibility shippers using the Sunda Strait instead of Malacca needs to be considered; a sufficiently high charge would increase that possibility. Further, an improperly implemented Pigovian tax would simply transfer the problems the Malacca Strait is facing to other areas with no Pigovian tax, instead of eliminating it.

Categories
Liberty

[1130] Of road to conscription

The real deal on the Malaysian national service is now one step closer towards its logical conclusion:

A THREE-MONTH stint in the National Service is insufficient to build good character and instil discipline. At least a year is needed, says Datuk Seri Najib Razak.

The deputy prime minister said the government was willing to consider lengthening the programme. [National Service stint ‘too short to instil discipline’, NST, March 13 2007]

The program could be lengthened to two years:

SEOUL: The Government is willing to consider extending national service (NS) to one or two years because three months is not enough to build up character and instil good values in Malaysian youths. [Najib: NS could be extended to two years, The Star, March 13 2007]

The politician opined:

“If you ask me, one year is most ideal, but two years would be better,” he said at a dinner with Malaysian students here in conjunction with his visit to South Korea. [Govt Prepared To Extend NS Training Period, Says Najib, Bernama, March 13, 2007]

We are on the road to conscription. The term “national service” is simply an euphemism.