Categories
Liberty

[979] Of to the Dutch: stay true to liberal tradition

I’m disappointed to see that the Dutch society has decided to turn their back on liberal tradition of tolerance. I used to envy the Dutch society as the most liberal there is the world. Not so after the ban on burqa:

AMSTERDAM (Reuters) – The Dutch government agreed on Friday a total ban on the wearing of burqas and other Muslim face veils in public, justifying the move on security grounds.

The ban as a necessary violation of liberty and therefore, I disagree with the ban. I’d like to make it clear that I’m against the ban not because I’m a Muslim, but rather, because the ban violates liberty. I’d like to identify myself with a value that rises above petty differences.

The Dutch model used to seek to build an open multiracial society. It was a society that celebrated differences rather than a society that succumbed to xenophobia every time new social challenges arose. The ban turns an once open society to a society hostile to differences. To me, the ban is an effort to forcefully assimilate minority Muslim group into the mainstream culture. To me, the ban threatens to make the Dutch society more like what the Indonesian society used to be, where assimilation is a must, where distinct cultures have to rigidly conform to a state-sanctioned way of life.

A forced assimilation makes the Dutch society one step closer to conservative ideas that are ever so hostile to liberal values.

I do however understand why the majority within the Dutch society is eager to encourage its Muslim minority to assimilate – an assimilation that at least demands everybody to adhere to an implicit social contract of liberty, where basic rights such as free speech are guaranteed – into the Dutch culture. I also fully appreciate the difficulty the minority faces in accommodating to that social contract.

Interaction between the two groups has been hard and that contributes to the current tension seen within the Dutch society. The killing of Van Gogh certainly doesn’t aid to tone down the conflict. In a larger scale, what seems to be a clash of civilizations between the West and the Muslim worlds creates and strengthens mistrust between members of the Dutch societies.

Regardless, I offer no solution and I sincerely regret that. But I fail to see how the ban could solve the problem of mistrust. In fact, I’m in the opinion that the ban only amplifies the mistrust. Worse, as I’m made clear earlier, it violates liberty. Two wrongs don’t make a right.

The Dutch society — and the EU at large — should roll back on its support for the ban if it plans to stay true to liberal value and also have the moral authority to advocate liberalism. Or at least, whenever such liberalism concerns civil liberties.

Categories
Economics

[978] Of Golden Sime Guthrie

One word: whoa!

Nov. 23 (Bloomberg) — Malaysia’s government may combine Sime Darby Bhd., Kumpulan Guthrie Bhd. and Golden Hope Plantations Bhd. into the world’s top palm-oil producer, analysts said after the companies received notice of an approach.

But if it had involved real private entities, it would’ve been this: WHOA!

Categories
Economics

[977] Of the Malaysian economy in 2007

How would the Malaysian economy perform in 2007?

It would most likely depend on several major issues.

First, in no particular order, is the spur of government spending due to the Ninth Malaysia Plan.

Second, the Visit Malaysia Year.

Third, a slowdown of demand for electronics.

I can’t think of a fourth factor but I’d be grateful for reasonable suggestions.

Here, I’d like to make a connection between government spending and the reduction in demand for electronics good.

The Malaysian government spending, which includes the second Penang bridge, a number of highways as well as a new city nearby Port Tanjung Pelepas, should provide students of economics some interesting natural experiment. Why?

It will test the Mundell-Fleming model.

According to the model, an increase in government spending has a negative effect on the net export component of the GDP. Let me explain.

A government spending increase will temporarily increase the GDP. This makes sense because government expenditure is one of the four components of GDP and as such, it directly affects the GDP. That increase however will cause the local interest rate to go above the world interest rate. Higher local interest rate vis-a-vis global interest rate will cause capital to flow into the local economy. That inflow will make the local currency, the Malaysian Ringgit in this case, to appreciate. Such appreciation will encourage import and discourage export. In other word, net export should see a reduction once the economy reaches some sort of equilibrium.

Earlier this week, the New Straits Times talk about the possibility of a bull run. In its reports, several analysts predict that the Kuala Lumpur Stock Exchange would hit 1,300 in 2007:

The KL Composite Index is expected to hit 1,300 points next year — a high last reached in 1994. Analysts say the stock market can sustain its rally on the back of a positive economic outlook, implementation of the 9MP projects and a stable interest rate…

What do I think of that?

I haven’t made up my mind yet but I’m more interested to see how the Malaysian net export component would behave in 2007 and 2008. According to Mundell-Fleming and keeping in mind that there’s a demand slowdown for electronics — Malaysia is a big export of electronics — we are set to see a reduction in Malaysian trade balance. Ceteris paribus, of course.

p/s – somebody pointed out to me that instead of just testing Mundell-Fleming, it would also test a variety of other things. True. But here, I’m interested in this particular subject.

Categories
Politics & government

[976] Of when unvarnished means distorted

Deputy Prime Minister Najib Razak takes Orwell to heart:

PUTRAJAYA: Future Umno general assemblies may not be telecast live, given the flak the party has received over this year’s proceedings.

Party deputy president Datuk Seri Najib Tun Razak said many people felt that the telecast was an inappropriate thing to do because it gave a distorted view of Umno proceedings.

Dear sir, how could such speeches be distorted when it were directly heard by all Malaysians that cared to listen and personally uttered by the speakers, the representatives of UMNO?

Unvarnished truth is never a distorted view.

If the representatives in UMNO speak like what they spoke, in one way or another, it reflects the party, whether a person likes it or not. Those representatives, after all, represent the party’s grassroots. So, when a majority of those representatives spew hatred, then it shows something is wrong. The sooner we all realize this, the easier we as Malaysians could treat our disease that plagues us all.

Well, theoretically, at least.

Categories
Economics Environment

[975] Of 300 MV coal power plant versus 2400 MV hydroelectric dam

Yesterday, The Star reported that there’s an opposition to a plan to construct a coal power plant in Sabah:

LAHAD DATU: A coal-fired power plant in an area earmarked for eco-tourism in Silam is yet to get off the ground but already it is stoking up anger among several groups in this part of east coast Sabah.

The most vocal opponents to the 300MW plant, said to cost between RM1.2bil and RM1.3bil, are a group of environmentalists, social activists and local businessmen in this booming agriculture town.

They fear the plant will do more harm than good for them and the environment stretching from Darvel Bay to the pristine Danum Valley forest, some 80km away.

According to officials, the power plant would utilize clean coal technology:

KUALA LUMPUR: The technology used for coal-based power plants is different compared to that used previously, Deputy Energy, Water and Communications Minister Datuk Shaziman Abu Mansor said.

There has been a lot of talk of clean coal technology for the past few years in Malaysia but I’m still skeptical on how clean the power plants, including the one in Sabah, would be. Furthermore, I’m unsure how the power plant plans to store the carbon byproduct, i.e. waste.

Regardless the technology used, I wonder though, why do we need a 300 megawatts power plant when we are going to have a 2,400 megawatts Bakun hydroelectric dam soon? Why do we need another 300 MV coal power plant when most output of the 2,400 MV dam would not be used?

Not too long ago, the Sarawak state government wanted to build a metal smelter plant as an economic justification of the construction of the mightily huge Bakun dam. Without the smelter, the state government believes that the construction of the dam wouldn’t be justified, especially when the plan to connect the Malay Peninsula with Borneo via an underwater cable was scrapped due to the Asian financial crisis of the last decade. If the operator of dam really couldn’t find a buyer for its electricity, surely the Bakun dam could accommodate whatever the Sabah coal plant would accommodate. By the way, the Bakun dam is expected to become operational by mid-2009.

Perhaps, certain engineering issues regarding electricity transmission between Bakun, Sarawak and Sabah necessitates the construction of the new coal power plant in Malaysian Borneo?

If there’s none, then somebody better explain.