Categories
Conflict & disaster Politics & government

[2193] Of choosing between Iran and the US

The Nuclear Security Summit in Washington D.C. suggests that Malaysia is siding with the United States with respect to the issue of Iran and nuclear proliferation. Apparently, even before the meeting between Prime Minister Najib Razak and President Barack Obama, Petronas, the state petroleum enterprise of Malaysia, has ceased shipping of gasoline to Iran in early March, anticipating an international, or at least a US-led trade sanction on Iran.[1] I say apparent because the Prime Minister claims the report is incorrect, stating it is only a spot sale instead of a stop of some long term contract.[1a] I am unsure what is the truth at the moment.

Notwithstanding the accuracy of the report, I seriously doubt the effectiveness of economic sanctions. I am not a fan of wide-ranging sanction and it is easy for me to rationalize this position.

I am also not a fan of the Iranian government for far too many reasons but if the proposed sanction is as wide ranging as I think it will be — adding gasoline into the list is a big thing — it is likely to hurt ordinary Iranians in Iran more than hurting Ahmadinejad government.

While the possible hardship may provoke popular Iranian sentiment against the Iranian government, such tactic appears too pragmatic — too realpolitik? — for my liking. Furthermore, the large protest immediately after the election in Iran demonstrates how hard it is for such sentiment to prevail.

This thinking of mine is a product of observing both Myanmar and North Korea. What exactly has trade sanction achieved there? Both regimes are still in power. In fact, their policies have hardly changed.

Sanctioning Iran may potentially further isolate Iran like how Myanmar and North Korea have been isolated without any real success in achieving the expressed goal of the sanction.

This has not even considered the fact that for the sanction to work — work in the sense that Iran will not be able to get its supplies from alternative source — the whole world must work together. A sanction by only the US and its allies will benefit others who refuse to participate, at the expense of countries like Malaysia. China for instance is dragging its feet in joining such sanction. If it refuses, the US-led sanction will be worthless.[3]

Despite this, I do appreciate Malaysia’s position and the reality on the ground. Malaysia has a lot more to gain by cooperating with the US than with Iran. Total trade between Malaysia and the US far exceeds that between Malaysia and Iran. Thus, I personally rather have Malaysia be diplomatically closer to the US than with Iran. I for one support better relationship with the US although, I can agree with Tunku Aziz that it should not be done “at any cost”.[4]

Still, ideally, I would prefer to have Malaysia to work with both the US and Iran. To have to choose between the two is an unfortunate choice to have.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

[1] — Petronas, the Malaysian state oil company, said on Thursday it had stopped selling petrol to Iran. The move follows growing pressure from the US to shut off Tehran’s access to refined oil products.

The company, which is a long-term supplier of Iran, said it had not shipped petrol to Iranian ports since the middle of March. Petronas refused to give any further details on its decision to put an end to sales. [Petronas halts petrol sale to Iran. Kevin Brown. Financial Times. April 15 2010]

[1a] — NEW YORK, April 17 — Foreign news reports quoting Datuk Seri Najib Razak as saying that Malaysia had cut off gasoline supplies to Iran are incorrect, the prime minister said.

The prime minister said Petronas was involved in a spot sale to Iran in mid-March under a third party deal but since then there had been no requests. [Report On Gasoline Cut To Iran Incorrect, Says Najib. Tham Choy Lin. Bernama. April 17 2010]

[2] — Petronas gave no reason for the pullout but an industry source in Dubai said the company wanted to safeguard its business exposure in the United States.

On Monday, Malaysian Prime Minister Najib and US President Barack Obama agreed on the importance of Iran strictly abiding by its obligation under international nuclear non-proliferation pacts. [Petronas halts fuel sales to Iran as sanctions loom. Reuters via The Malaysian Insider. April 15 2010]

[3] — Companies around the globe have been reducing ties with Iran ahead of possible new U.N. sanctions against Tehran’s controversial nuclear program. But a Chinese-owned company is taking a different approach on trade with Iran.

Traders from Singapore say China’s Sinopec oil company is sending more than 200,000 barrels of gasoline to Iran. The move comes as more and more Western nations have cut or reduced business with the Islamic Republic fearing international sanctions. [Chinese Companies Pursue ‘Talk Now, Invest Later’ With Iran. Carla Babb. Voice of America. April 16 2010]

[4] — [The cost of Malaysia-US relations. Tunku Abdul Aziz Ibrahim. The Malaysian Insider. April 17 2010]

Categories
Economics Liberty Society

[2192] Of embrace a more holistic view on development

There is much stress on economic freedom these days. This is clear by the fact that the New Economic Model is advocating less government in various aspects. So excited are the document authors about the idea of free market that at its rhetorical climax, they highlight the phrase ”market-friendly affirmative action”, never mind the apparent contradiction that the phrase invites. That phrase is perhaps the hallmark of contradiction of the document in terms of economic freedom. The latter part of the document suggests various government interventions that do not tally with its rhetoric. Yet, the document does begin from a liberal point and that is a good starting line. It has to begin somewhere after all.

Truthfully, the goal of the document is development and not the creation of freer market. Without strong conviction to the idea of free market in pursuing its main goal, contradiction is only natural. To criticize the authors of such contradiction is an effort unlikely to impress them and others who share the same view on development vis-à-vis free market.

They primarily believe that the government has a role in development. Such idea is hardly a controversial one. The government can indeed play a role in development even while adhering to the concepts of limited government and free market.

The issue is that the goal of development set by the New Economic Model is unsatisfactorily limited in its scope. The document limits the idea of development to merely economic progress. It ignores the larger meaning of development, just as freedom takes a larger meaning well beyond the realm of business and economics.

Development is not merely about better infrastructures or higher income levels for us all. While income levels do indicate general well-being in many ways, it is not the only factor in development that needs to be taken into account.

Development must empower individuals in a comprehensive manner. More often than not, this means enhancing economic progress as well promoting individual liberty. Indeed, economic progress and individual freedom work hand in hand. Without the other, each feels empty even if each lifts one up from the gutter by a tiny margin. Both are required to catalyze the jump out of the gutter.

Without development as confined within self-limiting definition of economic progress, individual freedom itself is redundant. Individuals living in dire economic condition will be unable to reap the dividend of liberty for they are incapable of understanding virtues of freedom. Without such comprehension, they are unable to make full use of it for their benefits. As the Malay idiom goes, what is a flower to a monkey?

There are so many elementary concerns need to tend to that whatever freedom they have is meaningless. It is the excess capacity that will never be used up. For instance, what is free speech when the stomach growls endlessly? In fact, free speech with an empty stomach can easily descend into anarchy as the hungry and famished knock rule of law essential to the preservation of liberty down to the ground to satisfy their very basic desire while robbing somebody else’s rights and liberty.

Similarly, where there is economic progress without individual liberty, what use of those shinny sedans or overly big four-wheel drives, clean and smooth roads together with tall and richly decorated towers when they are merely a posh prison to keep the prisoners happy? After all, what is economic wealth while one is repressed, living in fear?

They have the all the means but if the means are prevented from reaching the ends by traditions or prejudices, economic progress become meaningless. Life must be one cruel joke if economic progress in the end only comes to naught.

Individuals have to become richer not only in monetary terms but also in terms of themselves. The set of what can be done must be enlarged and the set of what cannot be done must shrink for development to take its holistic meaning. Choices have to expand.

Their choices have to be well informed. That is only possible through the tradition of free enquiry that embedded in it the concept of free speech and free press, among others. They must be able to express themselves and to do so is to practice freedom of expression. We talk about how young graduates lack communication and social skills in general: can we blame them when the avenues for practice are limited and guided paternalistically?

This idea is not new. Nobel Prize Laureate economist Amartya Sen is the vanguard of the idea. Although it must be said that he goes farther than a classical liberal would, he articulated similar view much earlier and wrote Development as Freedom for wider consumption.

Development must focus on both fronts for it to be meaningful. It is in this sense that the New Economic Model is insufficient. Malaysia needs more than economic freedom.

This is not to say that the authors of the document are not doing their jobs. Their terms of reference are clear: focus on the economic front. And they are doing just that. They cannot be blamed for that.

The other focus on the social front where it involves individual freedom is the job of ordinary citizens.

And the government is in the way. Hopefully, the Prime Minister and his Cabinet embraces the wider meaning of development to enable Malaysia to progress at all fronts. Hopefully, they will realize that only a liberal democratic system can bring Malaysia forward in a convincing style.

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 April 12 2010.

Categories
Economics

[2191] Of growth, recession and war

A random thought came to me.

War and recession have the same impact on the economic growth. Growth during wartime and during recession exhibit the same behavior. The same seems to be true for growth immediately after wartime and after recession. Relatively drastic changes happen during and after periods of war or recession.

If one looks at graph of growth without knowing history or context, one basically cannot tell the difference between wars and recessions. They are just dips which are unsuccessful in halting some long run growth trajectory.

Not so brilliant a realization, I will take that. But I am intrigued by it nonetheless.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

p/s — this may have been an overly strong statement. Relooking level of real GDP per capita from the 1860s to this decade, the Great Depression caused deep world economic decline while impacts of war appear relatively minuscule.

Categories
Photography

[2190] Of that is not the US flag

Some rights reserved. By Mohd Hafiz Noor Shams.

Categories
Photography Pop culture

[2189] Of Three Sisters, Blue Mountains

This is an obligatory post after a visit to a World Heritage Site.

Some rights reserved. By Mohd Hafiz Noor Shams.

The whole atmosphere reminded me of the X-Men. Why?

In one of many plots, the X-Men found themselves in the middle of a valley secluded from civilization. I cannot remember the name of the plot anymore but I am sure the cartoon version featured that plot too.

And damn, in my head, I am hearing:

[youtube]VxOQTaLTFrU[/youtube]