Wen Jiabao, the Premier of China is one of the most influential international figures of this generation. He is also on Facebook and gave an interview to Fareed Zakaria’s GPS - an hour long program that takes a comprehensive look at foreign affairs and policies shaping our world.
Wen Jiabao discussed several topics of extreme relevance to the global community, showing the man's intellectual prowess and sharp focus.
On a day when the US Congress is feverishly working to unfreeze the free market system on Wall Street by injecting $ 77billion into the market, the advise from the Socialist flag bearer was worth listening to. Asked about the prevailing economic philosophy for Wen Jiabao who did Jiabao quote? Who other than Adam Smith, suggesting that the free hand of capitalism should be balanced by Government regulations to keep things fair and orderly.
Adam Smith is, of course, known as the father of modern day economics, and regularly quoted for his words supporting the free-market and “the invisible hand”: lt is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their selflove, and never talk to them of our own necessities but of their advantages.
A large part of Smith's book - The Theory of Moral Sentiments - deals with ethics, morality, and the role of government, regulation and application of “morality” to free markets - a historical point often lost in debates over free market virtues.
What’s Jiabao reading? Stoic Marcus Aurelius apparently is one of his favorite philosophers, a thoughtful Roman emperor who advocated social responsibility and internal progressive social reforms even as he persecuted wars and treated some dissenters ruthlessly.
Read the full transcript of interview from CNN.
Monday, September 29, 2008
Wednesday, September 24, 2008
From chaos to more chaos
Maldives has finally broken the grip of the single-candidate presidential elections that kept Ibrahim Nasir in power from 1968 to 1978 and Maumoon Abdul Qayoom from 1978 up to now.
When the Egypt-educated politicians took over the presidency thirty years ago, the people were looking forward to a period of spiritual enlightenment. The same folks are now being accused of being greedy for money and power. They have failed to deliver justice according to the Holy Quran they preached. How ironic it is that these people who blame the West on charges of trying to impose Christianity on us have to import their concept of a Human Rights Commission to be the watchdog for justice and human rights.
Now we enter the confusing and murky world of coalition politics. Even the most unlikely bedfellows could come together for political advantage or to seize power. We see such alliances being formed in Maldives between the different political parties, all jockeying to share power in the upcoming presidential elections. The muddling through has begun in earnest.
People are the backbone of any society and their right to assemble and protest which is a constitutional right in a democracy is beginning to work in Maldives. Recently teachers had protested over poor pay and now tourism workers are due to protest in early October. Our Government is run on a deficit budget and every effort is being made to cut down the expenditure. But the members of parliament have increased their own salary by a 500 percent to some rf 67,000 per month setting a benchmark for various members of newly formed independent institutions to be paid similar amounts.
For workers at the lower economic ladder like teachers and airport workers to get a suitable raise, they have to indulge in work stoppages and strikes. Theses are uncharted waters for us but it also reflects badly on the uncaring Government of our country.
In Maldives, we now see a clear trend of religion being replaced by materialism in the same manner as it is happening in other capitalistic countries. Every individual; man, woman and child is a consumer. Companies and corporations have realized that rich consumers are the most attractive targets for marketing their products. The upper class' tastes, lifestyles, and preferences, trickle down to become the standard which all consumers seek to emulate. A consumer can have the instant gratification of purchasing a high-ticket item that will help improve their social status.
Maldives does not have an income tax or corporate tax system. Therefore while the rich continue to get rich, the poor are left behind to fend for themselves often struggling to live a decent life.
Once the campaign for the presidency is over and the first multi-party contested president is elected this year, it will be time to act on the promises that are flying all around us. We will soon learn whether the import of drugs into Maldives will be stopped by taking firm action and treatment provided to all the addicts or will it be more of the same old bluff of greedy and dumb politicians who only seek power for the sake of it.
When the Egypt-educated politicians took over the presidency thirty years ago, the people were looking forward to a period of spiritual enlightenment. The same folks are now being accused of being greedy for money and power. They have failed to deliver justice according to the Holy Quran they preached. How ironic it is that these people who blame the West on charges of trying to impose Christianity on us have to import their concept of a Human Rights Commission to be the watchdog for justice and human rights.
Now we enter the confusing and murky world of coalition politics. Even the most unlikely bedfellows could come together for political advantage or to seize power. We see such alliances being formed in Maldives between the different political parties, all jockeying to share power in the upcoming presidential elections. The muddling through has begun in earnest.
People are the backbone of any society and their right to assemble and protest which is a constitutional right in a democracy is beginning to work in Maldives. Recently teachers had protested over poor pay and now tourism workers are due to protest in early October. Our Government is run on a deficit budget and every effort is being made to cut down the expenditure. But the members of parliament have increased their own salary by a 500 percent to some rf 67,000 per month setting a benchmark for various members of newly formed independent institutions to be paid similar amounts.
For workers at the lower economic ladder like teachers and airport workers to get a suitable raise, they have to indulge in work stoppages and strikes. Theses are uncharted waters for us but it also reflects badly on the uncaring Government of our country.
In Maldives, we now see a clear trend of religion being replaced by materialism in the same manner as it is happening in other capitalistic countries. Every individual; man, woman and child is a consumer. Companies and corporations have realized that rich consumers are the most attractive targets for marketing their products. The upper class' tastes, lifestyles, and preferences, trickle down to become the standard which all consumers seek to emulate. A consumer can have the instant gratification of purchasing a high-ticket item that will help improve their social status.
Maldives does not have an income tax or corporate tax system. Therefore while the rich continue to get rich, the poor are left behind to fend for themselves often struggling to live a decent life.
Once the campaign for the presidency is over and the first multi-party contested president is elected this year, it will be time to act on the promises that are flying all around us. We will soon learn whether the import of drugs into Maldives will be stopped by taking firm action and treatment provided to all the addicts or will it be more of the same old bluff of greedy and dumb politicians who only seek power for the sake of it.
Wednesday, September 17, 2008
Worrying extremes of the free market
The US Federal Reserve announced that it will lend AIG (American Insurance Group) up to $85bn in emergency funds in return for a government stake of 79.9 per cent and effective control of the company - an extraordinary step in the bastion of the free market capitalism, meant to stave off a collapse of the giant insurer that plays a crucial role in the global financial system.
Of AIG's 116,000 staff in 130 countries, almost half are reportedly in Asia, where wholly-owned subsidiary American International Assurance Company Limited (AIA) manages most of the operations in Southeast Asia, China and Australia.
Even after the US Federal Reserve rescued AIG, hundreds of worried and nervous customers converged on the company's Singapore subsidiary on Wednesday, many looking to end their contracts -- some having flown in from abroad.
Singapore's de facto central bank, the Monetary Authority of Singapore, said AIA has enough assets to meet liabilities to policyholders, who should "not act hastily to terminate their insurance policies".
The AIG crisis unleashed another day of turmoil on global markets on Tuesday sparked by the weekend failure of Lehman Brothers, a leading US investment bank and the rushed takeover of Merrill Lynch by Bank of America.
In March, the Fed helped JPMorgan Chase buy Bear Stearns, one of the world's largest investment banks by providing a $29bn credit line. Earlier This month, the Treasury seized control of troubled US mortgage giants Fannie Mae and Freddie Mac.
These are unprecedented steps but we are also living in unprecedented times.
In a global world, what happens in the USA quickly affects other markets all round the world as we have witnessed in the stock markets losses this week. We have also seen that no country is practising unrestrained capitalism- i.e, the economic system governed by free market than by state regulation. The US Regulatory Authority, the Fed decided to bail out AIG, Bear Stearns, and Mortgage Houses Fannie Mae an Fredie Mac because they involved huge public investments and their collapse would result in untold global financial losses and loss of public confidence.
Like most other countries, Maldives follows the capitalistic model of economy with oversight by the state regulatory authority, the Maldives Monetary Authority(MMA). The important question for Maldives in the ever changing global capitalistic system is; " Is Maldives ready and prepared to react timely to give the warning signals to its investors about the financial health of publicly traded companies like the Bank of Maldives Plc (BML), State Trading Organization Plc (STO) or the Maldives Tourism Development Corporation (MTDC) to avoid financial hardship and chaos in a small community?"
Of AIG's 116,000 staff in 130 countries, almost half are reportedly in Asia, where wholly-owned subsidiary American International Assurance Company Limited (AIA) manages most of the operations in Southeast Asia, China and Australia.
Even after the US Federal Reserve rescued AIG, hundreds of worried and nervous customers converged on the company's Singapore subsidiary on Wednesday, many looking to end their contracts -- some having flown in from abroad.
Singapore's de facto central bank, the Monetary Authority of Singapore, said AIA has enough assets to meet liabilities to policyholders, who should "not act hastily to terminate their insurance policies".
The AIG crisis unleashed another day of turmoil on global markets on Tuesday sparked by the weekend failure of Lehman Brothers, a leading US investment bank and the rushed takeover of Merrill Lynch by Bank of America.
In March, the Fed helped JPMorgan Chase buy Bear Stearns, one of the world's largest investment banks by providing a $29bn credit line. Earlier This month, the Treasury seized control of troubled US mortgage giants Fannie Mae and Freddie Mac.
These are unprecedented steps but we are also living in unprecedented times.
In a global world, what happens in the USA quickly affects other markets all round the world as we have witnessed in the stock markets losses this week. We have also seen that no country is practising unrestrained capitalism- i.e, the economic system governed by free market than by state regulation. The US Regulatory Authority, the Fed decided to bail out AIG, Bear Stearns, and Mortgage Houses Fannie Mae an Fredie Mac because they involved huge public investments and their collapse would result in untold global financial losses and loss of public confidence.
Like most other countries, Maldives follows the capitalistic model of economy with oversight by the state regulatory authority, the Maldives Monetary Authority(MMA). The important question for Maldives in the ever changing global capitalistic system is; " Is Maldives ready and prepared to react timely to give the warning signals to its investors about the financial health of publicly traded companies like the Bank of Maldives Plc (BML), State Trading Organization Plc (STO) or the Maldives Tourism Development Corporation (MTDC) to avoid financial hardship and chaos in a small community?"
Thursday, September 11, 2008
The bumpy road of reform for Maldives
Maldives has embraced the presidential form of government that is practised in the United States of America. The old Constitution has been amended to separate out the powers; the executive, the parliament and the judiciary - and structure the society as a representative democracy with individual rights protected by law. Thus, for the first time in our history, we begin the arduous task of carrying out multi-party elections to choose our next president who should be sworn in on November 11th of this year according to the revised constitution.
The constitution requires that every Maldivian should be a Muslim and so Maldives is a 100 percent Muslim country. The Maldivian Government and its leaders have always used Islam as a political tool to control and manipulate the 350, 000 citizens living on 200 of the 1192 islands of this country that looks like a dotted chain scattered in the Indian Ocean.
Maldives needs the financial aid and grants from the West and the flow of their tourists to bring in the foreign currency. Therefore, it is not surprising that pressure was made to bear on the Maldivian Government who have been forced to liberalise and bring in the political and social reforms. Thus an autocratic regime is being unravelled with the introduction of the necessary independent institutions designed to create a just society with the appropriate checks and balances of power.
Over the last three decades the GDP of the country has increased from $ 300 to $3,000 per capita. This shows remarkable progress but equally revealing is another more starling aspect. The political and business elites who are resident in the capital Male' and control all businesses and tourism have largely continued to enjoy the benefits of the economic growth and become astronomically rich while the hard working people in the outer lying islands have remained relatively poor. The poor and the needy have become victims of a grossly unfair system and they rely on the benevolence of the rich and powerful in Male' to provide them adequate medical treatment.
Politicians in Male' are not out to serve the nation and its people. They take up a job only to make money and they thrive on the job because of their love for money and power. The Government in Male' is broken and needs to be fixed. It can only be done by a demanding citizenry who knows their rights and will settle for nothing short of what they are due.
As our country faces the first multi-party presidential elections, it is worth remembering that the "majority rule" is often described as a characteristic feature of democracy, but without responsible government it is possible for the rights of a minority to be abused by the "tyranny of the majority".
The presidential contenders contesting for this year's election should know that they must fulfil their promises should they win the election. An inapt Government has taken the citizens for granted for far too long and now their patience has run out. If the politicians cannot inspire the people to unify around common causes to build up a just society and a system for equitable distribution of wealth, then the road ahead will most certainly be a bumpy one for Maldives.
The constitution requires that every Maldivian should be a Muslim and so Maldives is a 100 percent Muslim country. The Maldivian Government and its leaders have always used Islam as a political tool to control and manipulate the 350, 000 citizens living on 200 of the 1192 islands of this country that looks like a dotted chain scattered in the Indian Ocean.
Maldives needs the financial aid and grants from the West and the flow of their tourists to bring in the foreign currency. Therefore, it is not surprising that pressure was made to bear on the Maldivian Government who have been forced to liberalise and bring in the political and social reforms. Thus an autocratic regime is being unravelled with the introduction of the necessary independent institutions designed to create a just society with the appropriate checks and balances of power.
Over the last three decades the GDP of the country has increased from $ 300 to $3,000 per capita. This shows remarkable progress but equally revealing is another more starling aspect. The political and business elites who are resident in the capital Male' and control all businesses and tourism have largely continued to enjoy the benefits of the economic growth and become astronomically rich while the hard working people in the outer lying islands have remained relatively poor. The poor and the needy have become victims of a grossly unfair system and they rely on the benevolence of the rich and powerful in Male' to provide them adequate medical treatment.
Politicians in Male' are not out to serve the nation and its people. They take up a job only to make money and they thrive on the job because of their love for money and power. The Government in Male' is broken and needs to be fixed. It can only be done by a demanding citizenry who knows their rights and will settle for nothing short of what they are due.
As our country faces the first multi-party presidential elections, it is worth remembering that the "majority rule" is often described as a characteristic feature of democracy, but without responsible government it is possible for the rights of a minority to be abused by the "tyranny of the majority".
The presidential contenders contesting for this year's election should know that they must fulfil their promises should they win the election. An inapt Government has taken the citizens for granted for far too long and now their patience has run out. If the politicians cannot inspire the people to unify around common causes to build up a just society and a system for equitable distribution of wealth, then the road ahead will most certainly be a bumpy one for Maldives.
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