Tag: Australia

Categories
Economics

[2045] Of unemployment targeting? That is new…

Today in The Sydney Morning Herald:

THE dollar soared and financial markets began pricing in interest rate rises after the Reserve Bank governor declared that he will soon have to push up rates and that he might do so without waiting for unemployment to stop climbing.

The bank is thought to have never before lifted interest rates while unemployment was rising.

But yesterday the governor, Glenn Stevens, told a business audience in Sydney that he did not regard himself bound by such a convention.

”˜”˜I’ve never seen written down, or I have never heard in discussion in the institution, some rule of thumb that says we wait until unemployment has peaked before we lift the cash rate,’’ he said. ”˜”˜It depends what else is happening, and also depends how low we went. [Rate rise looming, warns top banker. Peter Martin. The Sydney Morning Herald. July 29 2009]

I am not quite sure if the reporter is right when he writes “[t]he bank is thought to have never before lifted interest rates while unemployment was rising”.

Maybe, I am just not familiar with Australian thinking but central banks — that is, independent central banks — typically target inflation and not unemployment rate.

Central banks may incorporate other factors like economic growth, for instance, but the primary factor, as I understand it through my pre-2008 crisis economics lesson, is always inflation.

Categories
Personal Society

[2039] Of ghost unseen in a cold Sydney

While I am excited to see the constellations above my head change yet again, I had some consternation about living in Australia for an extended period. Weeks prior to actually first setting my feet Down Under and even days after my arrival, allegations of Australian racism and xenophobia constantly kept my enthusiasm in check.

I would like to think that my reaction is only natural after Indian students not too long ago alleged that they were victims of racism in Australia. Who would not feel so especially if one is unfamiliar with Australian society?

For those who kept abreast with news aboard, they would surely be aware that Indian students in Australia several weeks ago organised several protests — with the largest in Sydney — to highlight what they felt as racially motivated attacks against the Indian community. It was so well highlighted that the whole issue amounted to a minor diplomatic row between Australia and India. It was big enough a brouhaha that the prime ministers of both countries contacted each other, with Kevin Rudd trying to assure Manmohan Singh of the safety of Indian students.

With respect to the protests, the Rudd administration said all the right things and it was a comfortable thing to here. Yet, that is mere politics and it may not necessarily reflect the reality on the ground. As a Malaysian who has lived through one of the most disappointing administrations in Malaysian history, it is easy for me to be sceptical of the words of any government; that attitude only doubles whatever scepticism against the state I have that stems from libertarian tradition.

To be fair, the issue faced by Indian students may be slightly more complex than a simple case of racism. Considerable number of Indians stayed in unsafe areas and this probably contributed to the occurrence of crime that they suffered. There is plethora of other factors too but all of it seems to be specific to the Indian community. And so, I thought, perhaps it was best that I should not be overly worried about the matter.

Yet, anecdotes from friends forced me to rethink about my concern.

During one of those late-nights meet-up with what now to me yet again feels like food served in heaven meant for the gods on our tables, a Malaysian friend of Chinese ethnicity complained how Australia is unbelievably racist. Undergoing his undergraduate studies in the United States, it was the summer holidays and he spent his time visiting his sister in Australia. While I do think he enjoyed his visit, he was clearly disturbed by what he believed was the worst racial abuse he had ever received. A six-year old Australian called him a chink.

Or as he vividly put it, ”A six-year old! Imagine that!” with arms in the air.

He went on to warn me to prepare myself. Among friends in a familiar environment, which was one of Kuala Lumpur’s popular suburbs, I could afford to laugh it off. Now that I find myself in the middle of Sydney and strangers, I am beginning to think it was not as funny as I found it first to be.

Perhaps, it is gross generalisation but a new friend of mine that I met in Sydney suggested that Australians have issues with Chinese from China in particular. He stated that the unfriendly attitude that that Chinese Malaysian friend of mine suffered in Australia was probably due to the inability of Australians to differentiate between overseas Chinese and Chinese from China. I am quite unsure why some Australians have issues with Chinese citizens but I will surely learn more about it later.

Amid that, it calls to mind a racially motivated riot in Cronulla that occurred in 2005 when I was an undergraduate student in the United States. And then, there is Pauline Hanson in the 1990s, a politician who perhaps symbolises not just racism but xenophobia at large in Australia.

All that was enough to convince me to keep my guard up the minute I stepped out of Sydney Airport.

I suppose my current path is similar to the one I took back in 2001 when I found myself adjusting to life in the US with the Sept 11 attacks in the background. Many Malaysians warned me to be careful but while the concern was legitimate, and profiling at airports did occur, time spent in the US was the happiest in my life so far. Rather than suffering xenophobic abuse, I found the US a welcoming place where I enjoyed the greatest freedom I have ever had in my life.

I am beginning to feel confident that my same experience in the US will repeat itself in Australia. I am confident because in spite of my fear of becoming a victim of racism or xenophobia in general, I am happy to state that I have not to suffer any racial abuse so far. People have generally been friendly and helpful. New friends, especially, who I have made are warm enough that I think fighting the winter in Sydney will be a walk in the park.

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 July 20 2009.

Categories
Personal

[1992] Of visa approved

Happy!

Categories
Environment Politics & government

[1451] Of welcome Australia to the Kyoto Protocol?

The new Rudd administration vows to ratify the Kyoto Protocol. As far as environmental policy is concerned, I am quietly celebrating the fall of the Howard administration in favor of the incoming one. Nevertheless, I doubt Australian ratification of the Protocol will directly affect global greenhouse gases emissions. That however does not mean having Australia amounts to nothing.

Politically, it puts pressure on the United States to do the same. Furthermore, ratification of the Kyoto Protocol or more importantly, clear directed action to reduce greenhouse gases gives Australia the moral authority to pressure developing countries, specifically China and India to improve their emissions.

There are only 5 more years before the Protocol lapsed and while I do hold high hopes for it, results from the Protocol have been mixed so far. The disastrous handling of emissions permits in Europe is especially disheartening, perhaps suggesting and illustrating how emissions permits-based policy may be practically inferior to Pigovian taxes, despite theoretically being an equivalence. But take hearts for discussion on the son of Kyoto to improve the Kyoto Protocol in already under way. The conference in Bali in December this year is the next important step towards that direction, almost 15 years after the Earth Summit in Rio de Janeiro.

Just earlier this week, the final part of the 4th Assessment Report was released by the IPCC. The key point of the report is that we as a species now are more certain that human is the cause of the current climate change. That has helped steered debate on climate change away from “what caused it?” to “how to prevent and mitigate its effects?”.

On other front, the award of two Nobel Prizes to climate change related topics increases public awareness on the issue. In fact, being a person that loves to go against the flow, with so many people now a green-convert, I think it is now unfashionable for me to be a green. But at least, I could say, I became a green before you became a green. Hah!

Meanwhile, allow me to congratulate all Australians. I, as a citizen of ASEAN, will look forward to embrace a more understanding, cooperative and respectful Australia.

Categories
ASEAN

[1048] Of Australia to apply into ASEAN

Years ago, Israel expressed its desire to join the European Union. I was skeptical of it back then because of one reason: geography. Now, I am expressing similar skepticism on Australian intention to join ASEAN. According to Bloomberg:

Australian Prime Minister John Howard and Trade Minister Warren Truss will attend the second East Asia meeting on Jan. 15. along with leaders from the 10-member Association of South East Asian Nations plus Japan, China, India, South Korea and New Zealand. Australia will also push its application for permanent membership in Asean, analysts said.

Just like how Israel is not geographically Europe, Australia is not part of Southeast Asia.

This does not mean that I do not favor closer integration among nations of the world or within this context, between ASEAN and Australia. I am all for it. I would be delighted if free flow of labor and capital through the borders of ASEAN and Australia were guaranteed. Further, I do not deny that ASEAN and Australia share a number of similar concerns that demand close cooperation.

Yet, having Australia as a member state questions the basis of ASEAN: what is the basis of ASEAN?

I consider ASEAN as a regional grouping. As the name suggests, the region refers to Southeast Asia.

If ASEAN is to grant Australia membership, I do not see why it should stop with just Australia. China, South Korea and Japan should be part of ASEAN. Maybe, even India too. Hence, where would it end?

The admission of these states into ASEAN would possibly dilute the influence the original ten member states. I am sure these current extra-ASEAN states have their own unique interests and they could bring up those issues that at the expense of ours. Take what had happened at APEC for example: because of President Bush’s political goal, terrorism became the focus of APEC despite the fact that APEC was established as a trade forum. The trend was only reversed after several East Asian countries as well as those from Southeast Asia took a stand and said no to the US, saying that APEC is a trade forum, not security.

Furthermore, ASEAN is drafting its charter. The matter of accession will distract ASEAN from the exercise. If we as ASEAN are to admit Australia into the club, or even debate on it, let us do it after the ratification of the charter.

Therefore, I am currently in the position that Australia should remain in the next best thing: the East Asia Summit. I am saying no to Australia, for now.