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Showing posts with label Lee Kuan Yew School of Public Policy. Show all posts
Showing posts with label Lee Kuan Yew School of Public Policy. Show all posts

Saturday, 10 May 2014

Asians can and must think strategically, not to be dominated by the West

Can Asians think?

CAN Asian Think is a provocative book written in 1998 by the dean of the Lee Kuan Yew School of Public Policy at the National University of Singapore, Kishore Mahbubani, a prolific and brilliant thinker.

The book is a combative rebuttal of the idea that the dominant Western (read American) ideas are universalist, arguing that the Rest (of the World) has a lot to teach the West.

Re-reading it after more than 16 years, the questions raised by Mahbubani are as relevant as ever. Personally, I found the title rather condescending – of course Asians can think! The real issue is whether Asians can think strategically in their own interest, or whether they think that the dominant Western philosophy and values are so comfortable and relevant that they simply accept that the West is best.

The intellectual tide is going full circle. Since 1998, we have experienced two full-scale crises – the Asian financial crisis of 1998-1999 in which some Western polemicists gloated over Asian hubris, and the Great Recession of 2007-2009, when even Western intellectuals questioned whether unfettered capitalism was a dead end.

As one Asian leader said, when our teacher stumbles, what does the student do? This strategic question has not been completely answered, or at least the answers are different for different Asian countries.

Now that the West has begun to recover, we are going through a reversal of fortunes. Emerging economies are going to bear the brunt of global adjustment. At least three Asian economies are counted among the Fragile Five (India, Indonesia, Turkey, Brazil and South Africa), and there is considerable worry that China may be going through a hard landing.

President Obama’s trip to Asia was a belated personal confirmation of his “Pivot to East Asia” policy, first articulated in 2012 by then Secretary of State and Presidential wannabe Hillary Clinton. As the United States began to withdraw from Iraq and Afghanistan, and its discovery of shale oil making it less dependent on the Middle East, the Pivot strategy involved strengthening bilateral ties with allies in East Asia, and working relationships with emerging powers, such as China. The immediate unintended consequence of the Pivot policy was the eruption of the Ukraine crisis, whereby Russia took advantage of European weakness and diversion of US attention to effectively bring Crimea back to the Russian sphere of influence.

All of a sudden, the Cold War, defined as the struggle between Big Powers, re-emerged into the global risk equation.

Russian soldiers march at the Red Square in Moscow during a Victory Day parade. Thousands of Russian troops marched in Red Square to mark 69 years since victory in World War II in a show of military might amid tensions in Ukraine following Moscow’s annexation of Crimea. -AFP

The word “pivot” originally arose from a paper “The Geographical Pivot of History”, delivered exactly 110 years ago by Sir Halford Mackinder (1861-1947), then director of the London School of Economics. In his second book in 1919, Mackinder, considered the father of geopolitics and geostrategy theory, enscapsulated his theory of the Heartland in a dictum: “Who rules East Europe commands the Heartland; Who rules the Heartland commands the World Island; Who rules the World Island commands the World.”

The Heartland is of course Central Asia, previously part of the Soviet Union, and the World-Island is the largest landmass of Euroasia, from Atlantic Europe to the East Asian Pacific coast, which commands 50% of the world’s resources. Many of today’s areas of geopolitical risk are at the frontiers of the Heartland – Ukraine, Syria, Afghanistan, Iraq, Iran and the South China Sea.

Mackinder’s innovation was to examine national strategy on a global scale, recognising that the British empire must use geography and strategic policy to its advantage against competing great powers.

Former British colonies understood very well the British strategy of “divide and rule”, playing off one faction against the other, so that Britain could rule a subcontinent like India without expending too much resources. But Britain did not hesitate to apply gunboats or cannon to maintain the strategic balance. Similarly, Britain played off one European power against another, until weakened by two world wars, her former colony, the United States emerged as the global superpower.

Seen from the long lens of history, we are in the second Anglo-Saxon empire, with America being the new Rome. Just as the Roman empire shifted its capital from Rome to Constantinople (now Istanbul) in the 20th century, power shifted westward from London to Washington DC.

In the 20th century, two island economies, Britain and Japan, played leading roles in intervening in the continents of Europe and Asia through maritime power, but by the 21st century, air and technological power through size and scale changed the game in favour of the United States. The United States is a continental economy defended by two oceans, the Pacific Ocean and the Atlantic, without a military rival within the Americas.

In contrast, Asia has been historically riven by war and territorial disputes.

In his new book, the Revenge of Geography, geostrategist Robert Kaplan argued how politics and warfare were determined throughout history largely by geography.

Even though the arrival of air travel and Internet suggest that the world may become borderless, the reality is that the world is becoming more and more crowded.

When the First World War broke out in 1914, the global population was only 1.7 billion, with a death count of 16 million. By the Second World War, the death count reached as high as 85 million, when world population was only 2.3 billion.

The next World War will be fought over water and energy resources, because there are limits to natural resources even as the global population exceeds 7 billion, going towards 9 billion by 2030.

For the world to avoid global conflict will require great skills and mutual understanding, because the geopolitical risks of political miscalculation and accidents are extremely high in an age of rising tensions due to inequality, chauvinism, religious and ethnic polarisation. As an old African saying goes, when elephants fight, the grass gets trampled. In the next big fight between the nuclear powers, there will be no winners.

Now that is something that not just Asians must seriously think about.


 - Contributed by Tan Sri Andrew Sheng

Tan Sri Andrew Sheng is Distinguished Fellow of the Fung Global Institute. The views expressed are entirely the writer's own.

Sunday, 4 December 2011

Singaporeans earning more


The Star By Cai Haoxiang

Wages are on the rise and so are the number of elderly employees – and the government hopes to cash in on the situation.

THE monthly salaries of Singapore workers went up this year, for the second year in a row.

Their median income - the mid-point in a range - was $2,633 (RM6,410.88) in June compared to $2,500 (RM6,087.05) a year ago, a 5.3% increase, led by economic growth and a tighter labour market.

The rise is even steeper when part-time workers are taken out of the equation, according to a Manpower Ministry report recently on the earnings and employment of residents, including permanent residents.

 
Wealthy lot: Fuelled by strong employment growth and curbs on the inflow of unskilled labour, the monthly income of Singaporeans has seen an encouraging rise this year. – The Straits Times
 
It shows full-time workers’ median income to be $2,925 (RM7,121.85) a month against $2,708 (RM6,593.49) last year - an 8% rise.

After taking into account projected inflation of about 5%, their real wages rose by an estimated 2.8%, said the ministry’s Singapore Workforce 2011 report.

But for all workers, including part-timers, the real wage increase was just 0.1%, said labour economist Dr Hui Weng Tat of the Lee Kuan Yew School of Public Policy.

Noting the Government’s goal to raise real median incomes by 30% over 10 years, Dr Hui said it would require an average increase of 2.7% a year.

“Attention thus needs to be focused on improving the wages and work opportunities of the 194,700 part-time workers, as they are increasing in number, and half of them indicate they want to work longer hours,” he added.

The report also disclosed for the first time median income figures that include the Central Provident Fund (CPF) contributions of employers.

With CPF, the income of full-timers soared to $3,250 (RM7,913.16), which is $250 (RM608.70) more every month than last year.



Explaining the new move, a ministry spokesman said employer’s CPF contributions form a “significant part of compensation, and can be used for housing and health care”.

Hence, it would publish the figures yearly to give “a more complete picture of residents’ income growth”, she said.

The rise in income this year builds on last year’s increase, which was a turnaround from the decline caused by the 2008-09 recession.

Last year, the strong economic recovery lifted the monthly income by 3.3%, from $2,420 (RM5,892.26).

This year, the increase was fuelled largely by strong employment growth, especially in the services sector, coupled with curbs on the inflow of unskilled labour and stricter conditions on employing skilled foreign workers, said economists interviewed.

“Wages were pushed higher with the big projects like the Marina Bay Sands and Sentosa resorts needing a lot of labour, together with the tightening of foreign worker inflows like increased levies,” said National University of Singapore economist Shandre Thangavelu.

These moves pushed the employment rate to a new high of 78% for residents aged 25 to 64.

At the same time, immigration conditions were tightened, causing a decline in the number of permanent residents.

As a result, the resident labour force went up by just 1.6% to 2.08 million, compared to an annual average of 2.6% in the past 10 years.

On the other hand, more older residents and women are working this year. A record 61.2% of residents aged 55 to 64 are working, up from 59% a year ago.

Similarly, with women aged 25 to 54, the number employed rose to 73%, from 71.7% last year.

Labour leader Cham Hui Fong cheered the increases in these two groups, saying they show that efforts of unionists are paying off.

Said Cham, assistant secretary- general of NTUC: “Companies are now prepared to hire and spend time training these workers.”

Also, more government funds were available, she added, citing the Advantage scheme that helped companies redesign jobs for older workers.

Another is the Inclusive Growth Programme, which gives grants to companies to invest in high-tech equipment and redesign jobs for low-wage workers in return for raising their pay.

“We hope these schemes will continue because we need to build up the momentum,” said Cham.