Monday, December 05, 2011

Brazilian Legend Socrates- Football's Cool Maestro dies

Socrates, one of the true masters of the beautiful game died Sunday, aged 57.

Socrates, captained the 1982 Brazilian national team that included Zico,Falcao and Eder and have often been lauded as "the best team never to win a World Cup."

Paying a tribute to the King of Cool, Henry Winter writes in The Telegraph: Brazil’s captain struck twice in Spain, the first coming against the USSR in Seville. It was a classic, Socrates sidestepping two opponents sliding in despairingly, knowing the venom lurking in that famous right foot. The pain duly came, Socrates rifling a shot past Rinat Dasaev, the highly respected Soviet keeper.

The majesty of many of Socrates’ goals lay in their technical brilliance, the stellar significance of the occasion and often the quality of the goalkeeper condemned to fetch the ball out of the net.

After Dasaev, Socrates also caught out Dino Zoff. It came in one of the most epic contests in World Cup history, a match with Italy played out in the heat of Barcelona. Countless millions tuning in around the world watched transfixed as Socrates strolled through the middle, playing a firm pass to Zico before striding on. Zico stroked a superb return pass for Socrates, who glided into the box before beating Zoff. Sublime.

The ball entered the goal at the near post, a surprising mistake from a keeper of Zoff’s class yet Socrates had advanced radiating such confidence, almost toying with Zoff’s mind with his eyes, that a goal was inevitable. Paolo Rossi’s hat-trick saved Italy, leaving Brazil heading home early, grasping only plaudits.

“To win is not the most important thing,” reflected Socrates. “Football is an art and should be showing creativity. If Vincent van Gogh and Edgar Degas had known when they were doing their work the level of recognition they were going to have, they would not have done them the same. You have to enjoy doing the art and not think, 'will I win?’ ”.

Socrates leaves behind a cherished principle that football should be about artistry. His goals stand as a vivid reminder of that cultured credo.


Socrates has not won the World Cup, but his performances on the world stage make him an all-time great of the game, and he will be remembered as a true gifted footballing icon of the 1980s.

Thursday, October 20, 2011

Europe can learn from Islamic finance, says Luxembourg's Finance Minister

Entering its 6th year, the IFN 2011 Issuers & Investors Asia Forum,(previously known as the Malaysian Islamic Finance Forum) has emerged as the industry’s leading and largest annual event.

Europe can learn and gain from Islamic finance, given that financial institutions under it, have remained stable against the backdrop of the eurozone debt crisis.

Luxembourg's Minister of Finance, Luc Frieden, in a keynote address at the IFN 2011 Issuers & Investors Asia Forum noted that despite the credit crunch that has impacted Europe's banks, Islamic financial institutions had weathered the global crisis and emerged to be the most well managed.

"Therefore, we can learn a lot from Islamic finance and from Asia, as we have much in common.

"The key elements in Islamic finance that we need in the world today, particularly in Europe, are stability, financial partnership, provision of excessive risk and speculation as well as ethical principles," he added.

He said in Islamic finance, the financial relationship between the lender and borrower, had assured the "partnership mentality", which was found to lead to certain stability.

Explaining the need to avoid excessive risk taking place, Frieden said this is among the key goals of Europe and is an important feature found in Islamic finance.

"The provision against speculation and gambling which is prohibited in Islamic finance, is what we can concentrate on," he added.

He also said the element of ethical principles should not be limited to the Islamic finance industry alone. Frieden gave an assurance that Europe would find a solution to the debt-crisis that had led to volatility in the global economy.

"There's no one easy solution and one meeting can't solve the crisis. We have embarked on a step-by-step process to solve the problems.

"We will find a solution to the Greek issue. The Euro will be a currency you can count on in the future and see growth," he said.

He said Asia and Europe must join forces for the development and prosperity of the global economy.

"Therefore, Asian investors should look at Europe for trade and investment purposes, going forward," he added. Link the star

Sunday, October 02, 2011

Another "Black Swan" Approaching

According to a forecast from the Economic Cycle Research Institute(ECRI) as reported on CNN Money the US economy is heading for another double dip recession. "It's either just begun, or it's right in front of us," said Lakshman Achuthan, the managing director of ECRI. "But at this point that's a detail. The critical news is there's no turning back. We are going to have a new recession."

This new crisis comes just three years after the global financial and economic crisis. As opposed to the 2008 crisis that started in the US with the collapse of Lehman Brothers, this time Europe is at the centre of the crisis- the Euro Zone in particular has rocked the financial markets because their sovereign debt crisis.

Nassim Nicholas Taleb, author of the best-selling book “The Black Swan,” said he’s more concerned about prospects for the U.S. than Europe because the country lacks awareness of its fiscal woes.

“The difference between Europe and the U.S. is the consciousness of the problem,” Taleb, a New York University professor, said at a news conference in Tokyo organized by Bank of America Corp. “There’s no consciousness in the U.S.” about the fiscal deficit, he said.

Global financial-market turmoil intensified this quarter as Europe’s sovereign debt crisis deepened and the U.S. economy showed signs of slowing. Standard & Poor’s cut the U.S.’s credit rating for the first time in August, criticizing lawmakers for failing to cut spending or raise revenue enough to reduce record budget shortfalls.

Demonstrations have been taking place in Greece, Spain and Portugal against austerity measures and joblessness since early this year. Now the Wall Street of the US has also been hit by the waves of protest- the protesting issues include the 2008 bank bailouts, and high unemployment. Wall Street protesters carried posters which read “Protesters have rights defend 'Occupy Wall Street'” and chanted slogans including, "Stand up. Fight back," "We got sold out. Banks got bailed out" and "We are the 99 percent."

The term “Black Swan,” popularized by Mr. Taleb refers to a statement of impossibility, or to an event so unlikely that it defies comprehension.

In the past decade, there are quite a few examples of financial “Black Swan” events. Among them are the housing bubble and sub-prime mortgage crisis that derailed the banking system, the demise of Lehman Brothers in 2008, the BP oil spill and the Dow Jones flash crash, which had the Dow reeling with a 1000 point move on May 6, 2010.

Since events of these magnitudes are all previously unheard of in history, their repercussions ripple for years to come.


Now we need to heed to the warning that another Black Swan is unfolding.


As Nassim Nicholas Taleb,the author of The Black Swan wrote:

“We have never lived before under the threat of a global collapse. The financial ecology is swelling into gigantic, incestuous, bureaucratic banks — when one fails, they all fall. We have moved from a diversified ecology of small banks, with varied lending policies, to a more homogeneous framework of firms that all resemble one another. True, we now have fewer failures, but when they occur . . . I shiver at the thought.”

America's laissez-fare ideology of capitalism practised during the subprime crisis and the European state welfare model that has gone so wrong in Greece are under pressure to redefine and create a new social compact. Capitalism is the system that has created the extraordinary wealth and enabled the modern development of the western civilisation. But the free market has also created the biggest wealth gap between the rich and poor. If states have to intervene to bail out banks deemed too-big-to-fail and save countries from bankruptcy as in the case of Greece, then a new balance between the state and market is needed.

Q&A: Greek debt crisis. link
Late -2000s financial crisis. wikepedia

Sunday, September 25, 2011

Cartoon Network aims to create growth in Arabic

In Oct 2010, the American children's channel Cartoon Network launched a Cartoon Network Arabic channel- a free-to-air children's channel hoping to reach 35 million homes in the Middle East and North Africa. The free alternative to the subscription based Cartoon-Network is operated by the Turner Broadcasting offices in Dubai.

The world's first Cartoon Network Academy(CNA) in Abu Dhabi has now rolled out its inaugral batch of 12 graduates. The Academy is central to the development of local talent needed for the animation industry. The animation and gaming industry still in its nascent stage is one of the fastest growing industry in the region.


Turner’s ambition to expand the network in the Middle East and invest in local talent is necessary in order to grow the business. The diversity of the spoken Arabic dilects across the region poses challenges and creates opportunities for the animation industry.


According to a statement from Turner, Cartoon Network is available in 22 languages, across 27 separate feeds, in 166 countries and in 248 million homes worldwide.

This is not the first time that an American children' s TV show has been traslated to Arabic. Thirty years ago a local version of Sesame Street was braodcasted.

Saturday, September 24, 2011

Einstein's Law of Physics May Change

This is the cornerstone of physics since Albert Einstein dreamed up his theory of relativity.

Einstein's Law of Relativity is one of the few scientific equations most people know -- and it's a pillar of modern physics and fundamental to the way that the universe works.

The equation states that nothing is faster than the speed of light, but one of the world's foremost laboratories says they've found subatomic particles called neutrinos that travel even faster. If their findings are proven true, it may alter our understanding of the universe.

In Einstein's famous equation, E=mc2, the constant "c" is the speed of light, which is the same everywhere in the universe: c = 186 thousand miles per second, and there is nothing faster. The constant been accepted for more than a century.

Scientists were baffled by the research findings.

As the international team which conducted the experiments puzzled over what is potentially one of the biggest upsets in history, less rigorous minds turned their attention to the possibility of time travel and visiting distant planets.

Even Professor Alvaro De Rujula, a theoretical physicist at CERN, was not immune to the excitement.

He acknowledged that if the readings proved correct, and were not the result of some human error, it created unlimited possibilities.

The average person, said Professor De Rujula, "could, in principle, travel to the past and kill their mother before they were born".

Yesterday, the scientists whose findings have force a rethink on the make-up of the universe, officially informed colleagues and asked them for help in uncovering any flaws. Link

Friday, September 23, 2011

India's Last Nawab Mansur Ali Khan Patudi Passes Away

He was the Nawab of Pataudi, an inspirational cricket captain, especially considering that he overcame the loss of an eye to forge a successful career- an illustrious life came to an end Thursday marking end of an era for Indian cricket.

He was born into royalty, educated in England, transformed the Indian cricket and became it's youngest caption at the age of 21. He was India's first cricket superstar.

He is survived by his wife Sharmila Tagore, his actor son Saif Ali Khan and his two daughters Soha and Saba Ali Khan. His entire family was at his bedside when the end came at 5.55pm this evening. "He passed away around 5.55pm. His condition had deteriorated since yesterday. He was suffering from interstitial lung disease (interstitial pneumonitis) which worsens rapidly inspite of the best treatment available," Dr S. P. Byotra, Department of medicine in Sir Ganga Ram Hospital, where Pataudi was admitted, said. (Link)

"He was unable to maintain his oxygen level in spite of maximal treatment. He continued to remain in the ICU for nearly a month. He had this disease, which had been static since the last three months and worsened very acutely over the last four weeks,” the doctor said.


Tributes to Patudi on ESPN cricinfo

Tuesday, September 13, 2011

CIMA's Islamic Finance Certificate

Bait al-Mashura, a specialised company in providing Islamic finance consultations, has been authorised by Chartered Institute of Management Accountants (CIMA) to hold exams and grant certificates in Islamic finance. Bait al-Mashura managing director and CEO Dr Osama Q al-Derae’i said certificates of CIMA are based on self-paced study and distance learning principle.
More of this article on Gulf Times.

The 'CIMA Certificate in Islamic Finance' was officially launched in December 2007 in the UK and Bahrain, followed by Malaysia and Singapore in 2008.

Islamic finance is a trillion dollar industry and has become part of the global financial system. Educating financial professionals on Islamic finance has become a business priority for many countries, given that the Islamic finance industry is growing at an estimated 15-20 per cent annually.

Saturday, September 10, 2011

The Nation Mourns Death of Hiriyaa Principal and four students

It is shocking and deeply sad to learn of the tragic deaths of Hiriyaa School principal Ali Nazim and students Aishath Saeed of Meenaz Gaaf Alif atoll Dhehvadhoo, Mariyam Naaz of Suvaasaage Haa Alif atoll Hoarafushi (Galolhu Oivaali), Aishath Shaaniha of Handhuvary Villa Raa Rasmaadhoo and Mariyam Shaiha of Maafannu Moisha.

It is reported that Principal Ali Nazim lost his own life while trying to save drowning students who had gone on a fisheries science field trip to Kaafu atoll Huraa.

May Allah grant His blessing on the departed souls. May Allah grant families of the deceased the strength to bear such loss.

This incident is a stark reminder of the perils of the sea.

Thursday, September 08, 2011

Islamic Banking in Nigeria Fraught with Problems

Nigeria has become a battleground for Islamic finance, further dividing Africa's most populated country. Nigeria is one of the world's largest oil producers. The country has a history of bitter civil wars fought on ethnic and religious lines.

Nigeria, the seventh most populous country in the world has some 70 million Muslims. In order to capitalize on the growing popularity of one of the world's fastest-growing financial sectors, the Central Bank of Nigeria has introduced Islamic banking into the country.

CNN's Christian Purefoy discussed the sector's potential with Hajara Adeola, managing director of Lotus Capital, one of the groups helping to pave the way for Islamic finance in Nigeria.

Adeola says there is a growing appetite for this form of banking.

"It is working in Nigeria and there is a lot of interest in doing Islamic banking, in West Africa in particular," she says.

Spread across the Middle East and other parts of the world, a slew of Islamic financial institutions have been offering interest-free services that advocates say can provide a more sustainable alternative to conventional banking practices.

The industry, which exists in more than 50 countries, is estimated to be worth around $1 trillion and has the potential to eventually be worth $5 trillion, according to ratings agency Moody's. The full article.

Monday, September 05, 2011

Amazon's Start Up Challenge goes Global

Amazon Web Services (AWS), an amazon.com company, is aiming to become a billion-dollar-a-year business. It is a startup revolution . As Amazon CTO Werner Vogels said, with AWS all you need is an idea, a credit card and a dream. Amazon holds an annual contest, the AWS Start-Up Challenge, to realise this philosophy.

The AWS Start-up Challenge launched in 2007 is back, sweeping across the planet. Fifteen regional prizes (five each from the Americas, Asia Pacific and Europe/Middle East/Africa) and one global grand prize to be awarded to start-ups with the most innovative businesses built in the AWS cloud. The global grand prize winner will be awarded with $50,000 in cash and $50,000 in AWS credits

Amazon is focused not just on the silicon valley but it wants to reach the global hotbeds to find 'the next big thing.'

Saturday, August 27, 2011

When Politics Gets In The Way of Reform

Prime Minister David Cameron has pledged to fight the “the wrong-headed ideas, bureaucratic nonsense and destructive culture” that led to riots across England earlier this month. David Cameron said a sense of personal responsibility had been eroded over many years by a welfare system that reduces incentive to work and “the twisting and misrepresentation of human rights.”

“The former Labour Prime Minister Tony Blair responded saying the “muddled-head analysis” of the riots risks producing the wrong policy prescriptions. He dismissed the argument that Britain is in the grip of a “moral decline,” saying that problems lie with individuals and communities rather than society as a whole.

Critics of the Cameron Conservative coalition government argue that they want to introduce policies to reverse the welfare system.

Geoffrey Wheatcroft, a British journalist and author wrote:

"For the left, and for liberal papers like Guardian, the culprit was the Tory-led government and its “cuts,” the program of rigorous reduction in public spending in response to unprecedented public debt. But it’s hard to see what effect these cuts can really have made in the little more than 15 months since the coalition government took office under David Cameron.

A more telling (if not quite logical) response is the good old tu quoque: look who’s talking. How can the poor be condemned for looting household goods while bankers and financiers have been looting from the public on a far vaster scale than any teenage gangsta could dream of? This is a variant of Brecht’s “What is the crime of robbing a bank compared with the crime of owning one?” and it must be admitted that in the age of AIG, the Royal Bank of Scotland, and Madoff, most of us have our Brechtian moments. And all of us here bridle when anyone is upbraided for greed and dishonesty by our Members of Parliament, who turn out to have been pilfering the taxpayer for years with their fraudulent expenses. "

The state has to punish those who break the law- whether they are looters on the street or greedy officials who robbed public finance or made money out of decisions which have had a profoundly damaging impact on innocent people.


The IPPR, the Institute for Public Policy Research, - the UK’s leading progressive thinktank gives an analysis of the ideological differences and outlines the case of the present coalition government's assault to cut the universal benefits and services.


Friday, August 19, 2011

Bill Clinton goes Vegan

Bill Clinton's love for hamburgers, steaks, and french fries has become legendary.

Former President Clinton now considers himself a vegan. He's dropped more than 20 pounds, and he says he's healthier than ever. His dramatic dietary transformation took almost two decades and came about only after he underwent two separate heart procedures and with some advice from a trusted doctor.

Clinton then decided to make profound changes in the way he eats.

"I essentially concluded that I had played Russian roulette," Clinton said, "because even though I had changed my diet some and cut down on the caloric total of my ingestion and cut back on much of the cholesterol in the food I was eating, I still -- without any scientific basis to support what I did -- was taking in a lot of extra cholesterol without knowing if my body would produce enough of the enzyme to support it, and clearly it didn't or I wouldn't have had that blockage. So that's when I made a decision to really change."

The former president now says he consumes no meat, no dairy, no eggs, almost no oil.

"I like the vegetables, the fruits, the beans, the stuff I eat now," Clinton told CNN's Dr.Gupta.

The former president's goal is to avoid any food that could damage his blood vessels. His dietary guides are Ornish and Dr. Caldwell Esselstyn Jr., who directs the cardiovascular prevention and reversal program at The Cleveland Clinic Wellness Institute. Both doctors have concluded that a plant-based diet can prevent and, in some cases, actually reverse heart disease.

The full report from CNN

Thursday, August 18, 2011

Indian High Court Judge Impeached for Corruption

Fighting corruption in India has been a monumental task.

BBC correspondent Soutik Bishwas explores the question. "Is India serious about fighting corruption? Going by some striking data put together by the country's respected, independent watchdog PRS Legislative Research, it doesn't appear so.

India's government officials charged with corruption can be prosecuted only after an approval by the federal or state government. However, by simply sitting on requests from prosecuting agencies, governments can easily slow down prosecutions or make sure that the offenders are never prosecuted."

The revolution in communication – with the 24×7 news channels and instant information sharing on the Internet has liberated content from the control of media houses and governments. The power of civil movements led by activists like Anna Hazare whose hunger strike is turning out to be a hunger fest. In the world's largest democracy, action against political and bureaucratic corruption is painfully slow.

India's upper house of parliament- the Rajya Sabha impeached a High Court justice on corruption charges on Thursday, against a backdrop of mass anti-graft protests across the country.

As reported in India Times, In a first, the Rajya Sabha on Thursday impeached Calcutta high court judge Justice Soumitra Sen on charges of corruption. Justice Sen could go down in history as the first judge to be removed if Lok Sabha gives its consent next week to the motion for his impeachment.

This is first time a sitting judge was found guilty by parliament's upper house of 'misappropriating' large sums of public funds in an abuse of his position as a justice of the Kolkata High Court.



Tuesday, August 16, 2011

Do Beggars Reflect the Plight of the Poor?

The picture on Haveeru yesterday shows a line of people, who assemble in Male' for the month of Ramadan hoping to increase their begging income. This is a very sensitive issue. Most of them are elderly persons. Regardless of whether one agrees with their behaviour or not, they deserve sympathy. That is the goodness in human decency. Most of them may have raised families and contributed to society. In their sunset years, this is a very sad state for them.

While their individual difficulties are not known, nothing suggests that they do it do to sustain a serious drug habit- a deadly addiction widespread in our country. Also it appears that the social welfare monthly payment of rf 2000 for seniors above 65 may not be adequate to sustain a decent living.

Their families, the community and the government will have to step up to help these people in a more effective manner. Government can develop various skills programmes, just like the 'second chance programme' recently introduced, to help these people take up meaningful work that can pay them adequate compensation. That increases their self esteem and gives a sense of pride in belonging to a community. Stronger family bonds will need to be maintained to avoid people having to resort to begging as a means for survival or as a profession to earn money.


Sunday, August 14, 2011

An Economic Storm Ahead

That's the warning given by World Bank chief Robert Zoellick about the global economy on Saturday in Australia.

Zoellick said the eurozone's sovereign debt issues were more troubling than the "medium and long-term" problems which saw the United States downgraded by Standard and Poor's last week, sending global markets into panic.

"We are in the early moments of a new and different storm, it's not the same as 2008," said Zoellick, referring to the global financial crisis.

More of this article here.

Friday, August 12, 2011

Gangs and Looters to Blame

Britain has begun to pick up the pieces of the violent anarchy that took hold of their cities. Terrified communities experienced unprecedented scenes of mob violence, with homes and businesses going up in flames. Senseless looting and theft carried out mostly by young people with no specific demands defies logic and every social value. An 11-year-old girl is among the 1,500 arrested in four days of rioting and violence in Britain, police said Thursday.

Britain is an advanced nation and has a strong tradition of welfare culture. Prime Minister David Cameroon cut short his vacation and recalled parliament from recess. Looking for the root cause of the mayhem, the prime minister told the parliament: "There are pockets of our society that are not just broken but, frankly, sick. For me, the root cause of this mindless selfishness is the same thing that I have spoken about for years. It is a complete lack of responsibility in parts of our society, people allowed to feel that the world owes something, that their rights outweigh their responsibilities, and that their actions do not have consequences."

As reported in VOA News, Geography Professor Chris Hamnett, of King’s College, lives in North London, not far from some of the worst rioting. He said:

"Essentially, what we've seen is rioting for fun and profit. This is not people expressing their anger against an oppressive state," said Hamnett. This is people thinking it would be nice to get a slice of the action.”

In other words, the looters set fire to buildings just to see how it looked like. It seems these youth live in a different world from law abiding citizens. They have no regard for other people's property. It is repulsive to see criminals robbing from and injured person while lying on the road needing help.

The breakdown of the traditional family unit has made it difficult for many single parents to provide the love and discipline children need growing up. These children grow up believing they can do whatever they wish to do without any consequence. This is the result of physical and emotional chaos at dysfunctional homes. On top of the chaos from broken homes, when governments are unwilling or when they fail to take stern action against drug traffickers, drug abusers and criminals gangs who thrive on such chaos- the result is in the words of prime minister David Cameroon, pockets of not just broken but sick society.

A social segment of this first world economy has gone morally bankrupt.

Wednesday, August 10, 2011

Burning with Rage in Britain

A peaceful protest that was staged in Tottenham Saturday by supporters of Mark Duggan, who was shot and killed last week, has now blown into a violent rampage of looting and burning across several cities.

Across the Atlantic in 1992, a similar situation of violence broke out in Los Angeles, in the case of the excessive force used by police on the African American Rodney King.

In each incident, violence that shocked these cities broke out just from the starting point of a single incident. Social media- facebook, twitter and instant communication of the Internet helped flame the passions and gather people.

The use of social media helped to gather and rally people in Egypt, ushered in the Arab Spring and brought down Husni Mubarak's dictatorship of 30 years.

In a commentary about the rioting in Britain, the Christian Science Monitor writes:

'Whether it is rooted in the ills of urban poverty (20 percent or more unemployment among youths 16-24) or represents simple criminal lawlessness is just one of the soul-searching debates now under way. Like many nations Britain has undertaken austerity measures that will cut welfare payments and thousands of government jobs in coming years. Job prospects for most urban youths are bleak.

Two girls who took part in the rioting Monday night boasted to a BBC journalist that they were showing police and “the rich” that “we can do what we want.”

As is often the case with urban riots, the poor neighborhoods themselves are taking the worst hit. “Tottenham [where Mr. Duggan died] didn’t have much, now [it’s] got a lot less,” said a British journalist who lives in that mixed-race neighborhood.

The rioting also provides yet another referendum on social media. Hooded and masked vandals are using social networks – Twitter and Facebook but especially Blackberry messages, which can’t be traced by police – to coordinate looting of a street. They then are tipped off by message if police are about to arrive and they vanish.

But honest Britons have been using social media for good, too. The Twitter hashtag #PrayForLondon asks people to “Please Pray for the protection of lives and properties in London, and Peace in the UK.” And #riotcleanup has become a rallying point for those who want to help. It has motivated people to take to the streets with trash bags and brooms to tidy up the mess the looters leave behind. '

Sunday, August 07, 2011

Sri Lanka's first Islamic bank: Amana Bank

Amãna Bank, Sri Lanka’s first licensed commercial bank to operate fully under the principles of Islamic banking, opened for business last week.

Amãna Bank will be offering a range of financial products and services including Current Accounts, Savings Accounts, Children’s Savings Account, Term Investment Accounts, Home Financing, SME Banking, Corporate Banking, Trade Services and Treasury Services.
Link: Sunday Times

Wednesday, August 03, 2011

Mubarak's trial: A Victory for Democracy

















A CNN Global public square report on this stunning humiliation for the the former president who was Egypt's military dictator for nearly 30 years.

The sight of Egypt's one-time most powerful man brought on a hospital bed into defendants' cage, made of iron bars and metal mesh was quite a spectacle. With him in the cage were his nine co-defendants, including his two sons — one-time heir apparent Gamal and wealthy businessman Alaa — his former interior minister Habib el-Adly, and six top former police officials.

There is no doubt that these proceedings will be closely watched by the Arab world where there is no tradition of democracy.

Sunday, February 27, 2011

The Two Party-System is Making America Ungovernable

The American model of democracy shows alarming levels of polarisation between the two main political parties.

All government is a compromise, in that it is adopted or created for the purpose of harmonizing the interests of the individual with the interests of the group. The types of government are numerous, varying with the character of the group, and with the particular conditions under which it exists. But we know of no government which is perfect: all have shortcomings, some very serious, others less so. There is nothing to be gained, therefore, by debating whether or not American government is imperfect.

Is this any way to run a democracy

America prides itself on being the oldest continuous democracy in the world. But criticisms of the America system are widespread. Our system is tailored to narrow interests and wealthy elites. Our two parties lock out alternative voices. Our voting procedures discourage participation and lead to unrepresentative outcomes. Is this really the best way to run a democracy?

What is so good about democracy? Ken thinks democracy is the most moral form of government. Is the democracy in the United States working well? Our representatives and senators make most decisions without popular input. John claims California has much more interaction between the people and the government. Is this a good thing? Ken introduces Josh Ober, professor at Princeton. What are the best arguments for democracy? Ober thinks that democracy requires an assumption of equality to get started. John asks what is wrong with a government ruled by a group of experts? Ober counters saying that the experts are not guaranteed to be beneficent. One of the benefits of democracy is that people will try to work out their differences. What about issues on which people cannot agree, such as abortion?



Do we have too much democracy in the US? What is allowable as to restrictions on individual freedoms and right in a democracy? If the entire population has one common religion, governing becomes easier. Isn't that good? Would a parliamentary democracy be better than the current form of democracy in the US? Ober doubts that a parliamentary system would solve the problems of American democracy. What role is there between education and democracy? Ober warns against using education as a ticket to voting. What is the relationship between media communication and democracy? Ober thinks that one-way communication will damage democracy. Many institutions that were put in place to aid the fledgling American democracy have now gotten large and unwieldy. Are these institutions to blame for the problems here?



How can we improve our democracy? Ober says that we should push the decision-making mechanism as close to local government as we can. Ken thinks that we need a national level government to assure equality across the country. Does the electoral college diminish the democratic process? Is our two-party system limiting to democracy? Ober worries that small parties tend to be extremist. In ancient Greece, political parties were not viewed as favorable. Do we need them today?


The two party-system is up for debate in America.

Last week's Intelligence Squared debate

Sunday, January 30, 2011

Fixing the Greed of Capitalism

Unfettered greed arising out of the free market capitalistic system is at its worst as we have seen in recent times. Bernie Madoff, a former chairman of the US NASDAQ stock market operated the biggest PONZI scheme, the biggest investment scandal in history. He has swindled thousands of investors of US$ 65 billion. On June 29, 2009, he was sentenced to 150 years in prison, the maximum allowed under the US law.

The 2008 United States financial crisis led to global financial meltdown which evoked fears of another Great Depression like in the 1930s. In this most recent financial crisis that started in the the US, Investment banks and commercial banks lent trillions of dollars for housing purchases to borrowers ill-equipped to repay when the housing prices crashed. There was no 'invisible hand' espoused by Adam Smith to maintain a fair and just order in the market. The driving force of the present free market model - at least in the US is Milton Friedman's theory that business corporations are only to make profit and greed is part of the equation.

With the emerging economies of China, India and Brazil fast catching up with the developed world, there is growing pressure for a new economic world order. Can the Western liberal free market capitalism co-exist with the economic styles of the emerging economies?

Below is an interesting discussion in Davos 2011, on the future of the Business Enterprise. Now we are going back to the roots of business that Adam Smith would have envisaged. Once again business leaders have raised the issue- social responsibility of business corporations is critical to rein in the corporate greed. Business needs to create more than just one value-i.e.,profit for the shareholders.

The new mantra for developing countries that need the assistance of the world financial institutions like the IMF seems to be: public/private sector partnership.

Sunday, January 09, 2011

Hate Speech does have Tragic Consequences

All too often, we hear about gun violence in the United States of America.

The American nation is shocked in horror yet again. Today, a lone gunman opened fire in front of a supermarket called Safeway in the Arizona city of Tuscon. The gunman killed six people (including a nine-year-old girl) and wounded a United States Congresswoman.

It is not clear why the gunman went on this terrifying rampage.

But whatever his reasons, the local sheriff - who is coordinating the investigation with the FBI - believes it is time for America to do some soul-searching.

Sheriff Clarence Dupnik, speaking about Arizona: (Link)

"When you look at unbalanced people, how they respond to the vitriol that comes out of certain mouths about tearing down the government. The anger, the hatred, the bigotry that goes on in this country is getting to be outrageous. And, unfortunately, Arizona I think has become sort of the capital. We have become the Mecca for prejudice and bigotry.

"It's not unusual for all public officials to get threats constantly, myself included. And that's the sad thing of what's going on in America. Pretty soon, we're not going to be able to find reasonable, decent people who are willing to subject themselves to serve in public office."

He later added:

DUPNIK: Let me just say one thing, because people tend to poo-poo this business about all the vitriol that we hear inflaming the American public by people who make a living off of doing that. That may be free speech. But it's not without consequences."

Freedom of speech is a sacred right guaranteed by the First amendment of the US constitution.

For countries that follow this model of the freedom of speech, should hate speech be criminalised in order to deter such horrible crimes?