Categories
Politics & government Society

[2580] Opposing the proposed SABM-HAKAM Social Inclusion Act

Saya Anak Bangsa Malaysia (SABM) and the National Human Rights Society (HAKAM) have proposed to introduce something called the Social Inclusion Act.[1] The general idea behind the proposal is noble but if this act somehow finds itself in a queue for debate in the Parliament (which I think is unlikely given how private member bills are typically ignored in favor of government-sponsored bills), the act does give too much power to a commission that it seeks to establish.

I am against the act, at least in its current form.

The proposed commission has too much power because its functions have been defined so broadly and the act grants the commission the ability to implement its own recommendation.

Furthermore, the commission can also compel the government, federal or state, to implement its welfare program if the commission believes such program is warranted. In other words, it can dictate government policy, which I think is unreasonable. It transfers debate on such social policy which can be controversial from the public sphere to within the commission’s four walls. The commission can also exclude members of the public from participating in any discussion held by the commission. So, not only it transfer the venue of debate from the public sphere to the private space funded with public money and public authority (yes, it can compel anybody to appear before the commission, which I find odd and coercive, but this is a small issue), there is transparency worry.

In clearer terms, I find the non-transparency as unreasonable as the commission can compel the government to implement its suggestions whatever the commission sees fit, notwithstanding what other laws state that may curb the commission’s powers. There is too much authoritarianism in that. I do hope, if the proposed Social Inclusion Act is taken up in the Parliament and eventually passed, there are such laws that limit the powers of the commission.

Now, what are the functions that I find too wide?

The commission has the power to develop social inclusion policies and also, the power to implement it. The exact boundary of such policies is unclear but it can be so extensive that it may require a whole ministry or two to do it. Social inclusion, based on what are listed as the functions of the commission, includes but not limited to reduction of real poverty, reduction of income inequality, provision of social safety net and prescription of intervention model. I wrote the functions of the commission are not limited as to those stated in the act because social inclusion can mean a lot of thing and it is ill-defined.

It is ill-defined because it is based on the definition of marginalization, which in turn is defined as the exclusion of a person or a community’s economic, social and political rights that prevents the person or the group from realizing their full potential and from participating fully in society.

Those rights are controversial, if you understand the existence of negative and positive rights. Given the individuals behind Anak Bangsa Malaysia, I think I will quickly disagree with a number of ideas that they may consider as rights. I subscribe to negative individual rights and more often than not, I am oppose to positive rights, which compel others to intervene another person’s life to help achieve the latter’s potential. In doing so, it is a violation of the former’s individual rights, which demand the former to not be coerced into doing something.

Define these rights as positive rights, then the size and role of government will quickly expand at the expense of individual liberty.

I think the act can be improved by making it more transparent and more inclusive in its decision making (which is ironic because this is a so-called Social Inclusion Act but its discussion and decision can be exclusive) by allowing the commission to recommend first, and then have the Parliament debates and then on approve or reject the recommendation. If the Parliament approves it, only then the commission should be allowed to implement directly or compel the necessary existing ministry to implement the recommendations. Or better, let the commission be the implementer of whatever relevant laws the Parliament proposes and passes. Take away the recommendation power of the commission.

I think having the lever at the parliamentary level is important at guaranteeing a more inclusive act. It also puts a bump on effort to expand the role of government. The membership of the proposed council can be biased and unrepresentative of the wider society. Having the Parliament has the decision maker partly solves the problem of bias and representation.

Here are some example of excessiveness of power the proposed commission has. Consider this: the power to introduce a social safety net is entirely in the hands of the commission. Such introduce is a major policy, require major expenditure and in the US, the expansion of public insurance, or the Obamacare, was a major public debate. It will be outrageous to give the commission such power. That decision should be decided by both the Cabinet and the Parliament and the wider Malaysian public, not the Commission exclusively.

Consider this also, the stated function of the commission is to reduce income inequality. This potentially include tweaking with the taxation system. To provide the commission with such power is too much.

So, I reject the act. I see the current proposal as a way to ram through certain way of thinking about social issues without check and balance. It is a request for free pass to expand the role of government, without accountability.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved
[1] — An Act to provide for the development and implementation of an integrated plan of action to address serious marginalization within Malaysian society [Social Inclusion Act 2012. SABM, HAKAM. Extracted August 17 2012]

Categories
Economics

[2579] Far higher potential output for Malaysia?

Both the GDP and the CPI numbers for Malaysia were released yesterday.

Real GDP growth grew by 5.4% in the second quarter from a year ago. Although I suspected that growth would be strong due to strong showing in the industrial production index, I found 5.4% as surprising still. It was too strong for whatever the production index was showing.

The strong growth, along with low unemployment rate, provides a puzzle when it is considered together with inflation trend. Inflation in Malaysia, both headline (1.4% in July from a year ago) and core (1.3%) inflations, has been decreasing since the beginning of the year. Typically, strong growth creates demand-pull inflation. That demand-pull inflation has been absent in the second quarter despite strong GDP showing.

Furthermore, the unemployment rate has been low and I tend to consider the current rate to be quite close to the idea of full employment.  The latest employment rate, which is for the month of May, is 3.0%. Previously, the rate hovered between 3.3% and 3.1%. Labor participation rate is also quite high given historical standard. The assumption of full employment implies the economy has been working close to its full potential. Any growth stronger than the potential will put upward pressure on prices.

Yet, inflation, especially core inflation, has been decreasing throughout the year.

This may suggest that the potential output is higher than the growth the Malaysian economy has been experiencing so far. It also suggests that the already low unemployment rate can go down further and that we are not really that close to full potential.

So, Malaysia can grow faster still, which is an exciting realization. I heard of the go-go 1990s. Maybe, it is time for the go-go 2010s in spite of everything. Let us just hope things will not go down in flame like it eventually did in the 90s.

Whatever it is, if growth so far has been unsustainable, then inflation should accelerate in the near future. If it is sustainable (i.e. actual growth is lower than potential), we should see only limited demand-pull inflation.

Finally, I previously projected the Malaysian economy to grow by 4.0% for the whole of 2012. I am looking like a fool now and will be looking to upgrade the growth rate soon. Nevertheless, I am ultimately skiddish about that upgrade. Although domestic demand, which grew by 12.0% year-on-year, has proven to be capable of cushioning the adverse impacts from weak exports, the global risk is still there. Trade has not collapsed but it can and if it does, an upgrade will be a very foolish thing to do.

Categories
History & heritage Photography Travels

[2578] 312 kilometers from Phnom Penh

If you want to visit the Angkor temple ruins, Siem Reap is your base. It is less than 20km away from the Angkor Wat and other magnificent temples to the north.

Some rights reserved. Creative Commons 3.0. By Attribution. By Hafiz Noor Shams

I spent nearly two weeks in Cambodia, spending the first week in Siem Reap in the north before visiting Phnom Penh via Battambang in the west. Yes, it was a big detour but it was worth it.

Siem Reap is a cute little town, close to the former capital of the Khmer empire, which is now in ruins. And yes, it is 312km away from Phnom Penh, the capital of Cambodia.

Siem Reap itself means “Siam defeated.” The Khmer capital was captured by Siam in the 15th century. That caused the Khmers to move its capital to Phnom Penh. In the 16th century, the Khmers liberated Siem Reap from Siam in a complete fashion. Hence the name.

Unfortunately for the Khmers, the Siamese were eventually victorious over the Khmer empire. Cambodia remained under Siamese rule until the French came in the 19th century.

Categories
Conflict & disaster Society

[2577] The cost of communism in Cambodia

Between 1975 and 1979, Cambodia came under the communist Khmer Rouge regime. The communist rule exerted considerable cost on the Cambodian society. Just how significant?

Never forget.

Data was obtained from the World Bank.

Categories
Economics History & heritage Photography Society Travels

[2576] Life and commerce in Siem Reap, Cambodia

I have always known about the atrocity of the Pol Pot and Khmer Rouge regime in Cambodia but before I traveled to Cambodia, that knowledge was superficial. I only began to learn more about the conflict when I found myself in Cambodia for two weeks recently. Being there almost made the knowledge into an emotional experience for me.

To fully understand the history, I think one has to read up Cambodian history since its late French colonial days. That is so because each event led to another and finally in 1975, the Khmer Rouge came to power. It was a reaction to yet another reaction but that fact does not justify what the Khmer Rouge did.

Apart from its political desire that also contributed to the massacre of the Cambodian people and those in the Khmer Rouge themselves later, its communist, understanding, forcefully changed the economy and the demography of Cambodia for the worse. It was disastrous, as it was disastrous with the Soviet Union and the People’s Republic of China.

The regime was not ashamed to centrally planned the economy, forcing all to work in the countryside as slaves and victims of communism. Without exaggeration in the case of Cambodia, communism kills. The cities were deserted so that the communists could realize a stupid ideal of “peasant economy”. Doctors, engineers and professionals were all forced to till the land in the countryside. The cities were left to those in power, and those whom were being tortured to satisfy the paranoia of the Khmer Rouge and ultimately, the circle of Pol Pot. The cities became ghost towns.

The Khmer Rouge regime fell in 1979. By that time I visited the country in 2012, what was a rich country has only begun to make its way in this world again.

Cambodia was a rich country. Its temple ruins are evident enough. Phnom Penh the capital has traces of its pre-Khmer Rouge glory.

Some of the Cambodians I talked to rued how Cambodia was richer than Vietnam before the Khmer Rouge period. Now, Vietman is ahead in so many ways. My traveling partner whom has been in Vietnam several times for an extended period, confirmed this. There are more buildings and vehicles in Vietnam than there are in Cambodia.

While that is so, traces of communism are being overwhelmed by its better nemesis.

In Siem Reap up north where most the temples of Angkor are, commerce, the voluntary exchange of goods and services by individuals, is everywhere.

Some rights reserved. Creative Commons 3.0. By Attribution. By Hafiz Noor Shams

Under communism of the Khmer Rouge, that was illegal. Under communism, there was no life.