Sunday, March 25, 2012

The Importance of Aung San Suu Kyi

The opening of Myanmar has been on the news for several weeks, if not months now. Slowly, the world will know more than Aung San Suu Kyi. But for now, let us talk about this lady who is the embodiment of Myanmar itself. I may be wrong in making this conjecture but many people seem to have this question: “If Aung San Suu Kyi was such a threat to the military junta, why did the military never consider eliminating her?” I am sure the military considered this option but never really got to the path of executing it. Why?

First was the domestic consideration. Aung San Suu Kyi is the daughter of General Aung San, who became a strong symbol of opposition to the military after he was assassinated. The military was afraid that if something untoward was to happen to Aung San Suu Kyi as well, it would galvanize the opposition to such a level that even they would not be able to handle despite having the advantage of firepower.

Second was the international consideration. Through the sheer effort of Michael Aris, the late husband of Aung San Suu Kyi, she became and still is the face of Myanmar to the world. As such, the policies of the external powers, notably the Western world, were very much tied to their assessments of how Aung San Suu Kyi was treated by the regime. If they carried things too far, the international pressure could be so strong that their existence itself could not be guaranteed.

Although power has been transferred to the nominally civilian government, there is no doubt that the military still lurks in the background. The chances of them reading this entry is very slim but if they do, I hope they will consider the implications of their action if the thought of eliminating Aung San Suu Kyi ever comes again.   

Sunday, March 18, 2012

How Many Amina Filali(s) Are Out There?

The recent case of Amina Filali brings to the public attention practices that supposedly should not have been around in the current state of the world. It is surprising that people in parts of Morocco still think that it is a dishonour for her and her family if a girl/woman is raped. This is tantamount to saying it is her fault for being raped. So, you have a situation whereby instead of consoling and providing support, people around her are actually blaming and perhaps scolding her for her predicament.

What is more surprising is the law allowing the rapist to marry the girl/woman. This brings the question on the state of mind of the girl/woman to be sharing the same bed with someone who has just inflicted some kind of pain or trauma on her. I wonder how many such similar practices or even worse go unreported.

Saturday, March 17, 2012

Is Race To The Bottom a Valid Reason for Standard Harmonization?

Just as there are many valid reasons against standard harmonization, there are also many credible reasons for it. But there is one reason for standard harmonization that I just can’t get around: the idea of preventing race to the bottom. The argument goes that in the current globalized world where it is so much easier for firms to relocate their production plants to low-cost locations, firms with existing plants in countries with higher standards (higher cost) can easily shift them to countries with lower standards (lower cost), resulting in job losses. To prevent such a move, countries with higher standards will revise down their requirements and spark a race to the bottom, causing lower standards across the world.

My gripe is driven by the fact that there is no clear evidence where countries have lowered their standards in order to prevent job losses. On the other hand, most countries benefiting from FDI appear to have raised their standards, partly driven by the more demanding middle class whose population share has increased. A point of note is a recent article about how Apple has raised the labour standards in China. Although critics may say that it is a one-off event caused by the widespread negative publicity, it is also correct to say that China has come a long way with regards to how it treats its labour force. Among them, the 2008 labour contract law should ring a bell to most people, not to mention the latest promise by China’s Cabinet to raise minimum wage by 13 percent a year until 2015.

Sunday, March 4, 2012

The Intrique of Achieving an ASEAN Community: The Middle Countries

Dr. Surin Pitsuwan, the current ASEAN Secretary General once said that it is countries in the middle that impede the progress towards building an ASEAN community. Why did he make such a remark?

Countries at the top are more than willing to take part in the establishment of community, in particular economic community because they are already highly competitive. A community will allow them better access to the neighboring market and they are certainly not worried that they will lose out in terms of efficiency if they open their borders to freer trade among ASEAN member economies.

Similarly, countries at the bottom are also more than willing to take part in this endeavor because after having been isolated for periods of time, they want to plug themselves into the globalized world and joining the ASEAN community is certainly a good starting point for doing so.

Countries in the middle view things rather differently. Opening their markets to freer trade is bound to benefit some groups but at the same time, is going to hurt some groups and these are not weak groups. Having been protected by their governments, they have grown into strong interest groups capable of influencing government policies. They would definitely prefer to maintain the status quo so as to maintain their current level of wealth and benefits.