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Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	BANGKOK 
Tarikh/Date 	: 	03/03/96 
Tajuk/Title  	: 	THE ASIA BUSINESS LEADERS: THE 
			BANGKOK DIALOGUE 



           SHAPING A BETTER WORLD: ASIA AND EUROPE
                      AS EQUAL PARTNERS
                              
    
          Once  upon a time, not so long ago,  Asia  was
    merely a place to be exploited by the Europeans.  In
    a  Euro-Centric world, `East Asia' was the Far East,
    distant,  mysterious and hopeless.   Yet  today,  we
    meet  immediately after the first meeting  in  world
    history  between East Asia and Western Europe.   Ten
    years  ago, or even five years ago, this would  have
    been  unthinkable.  Today we meet almost as  equals;
    almost because some of us in Asia are still overawed
    by  the  West.  We still feel colonised or defeated.
    And  indeed we are justified in feeling so, for  new
    forms    of    colonisation,    including    thought
    colonisation, have replaced physical occupation  and
    the gunboat.  The control of the international media
    by the West renders independent thinking impossible.
    
    2.    Perhaps  this is a rather strong statement  to
    make.   But  then  for  the past  100  years  or  so
    European  thoughts  and values embodied  in  various
    ideologies  had  dominated  the  world.   Socialism,
    Capitalism, Communism and various mutations of these
    originated  in Europe as a result of the  political,
    economic and social problems faced by Europeans.
    
    3.    But  having taken root in European  societies,
    these  ideologies were exported to the rest  of  the
    world,  including  the East.  Because  the  imperial
    powers   were  largely  capitalist  free-marketeers,
    resentment   by   the  subject  peoples   or   those
    threatened  by  Europeans  rendered  communism   and
    socialism,  with their egalitarian principles,  very
    attractive.   On  the  other  hand,  the   Communist
    imperialism of the USSR tolerated no other  ideology
    or system.
    
    4.    And  so  most  of the countries  colonised  or
    dominated by the capitalist free-marketeers and  the
    Communist  opted  for  or  were  forced  to   become
    Socialist and Communist.  By the middle of the  20th
    century  Western or European thoughts dominated  the
    whole world.  Even the religions of the world, which
    mostly  originated  from the East,  had  to  explain
    their  teachings  in terms of Western  thoughts  and
    ideas, about the equality, fraternity and liberty of
    the human soul.  Not to conform to these ideas would
    make  even  religions less than  acceptable  to  the
    dominant cultural values of the world.
    
    5.    And so when it is said that Western control of
    the international media renders independent thinking
    almost impossible, it is really not too far fetched.
    
    6.    When  society accepts a certain set of  values
    and  regards  these as universal,  then  to  deviate
    would  be heretical. At any given time, it is  safer
    to  conform  than  to reject or deviate.   But  then
    values  change, cultures change and even  ideologies
    change with time.  Today Socialism and Communism are
    no longer the ideologies that anyone would fight and
    die   for.    Indeed   they   are   almost   totally
    discredited.
    
    7.     We  know  now  how  Socialism  and  Communism
    destroyed  the economies of prosperous  nations  and
    impoverish  and  even  made slaves  of  the  people.
    There  was  not  even  equality  of  poverty.   Some
    Socialists and Communists were privileged and  rich,
    while  the  majority  languished  in  poverty.   The
    egalitarian society these ideologies promised  never
    really  materialised.  Worse still, the citizens  of
    Socialist  and Communist states were almost  without
    exception  poorer than the workers in the capitalist
    free-market countries.
    
    8.    And  so after three-quarters of a century  the
    people  who  conceived the Socialist  and  Communist
    theories  and  practised  them  decided  that  these
    ideologies  were wrong and they should be discarded.
    It  was  all a big mistake.  The massacres  and  the
    brutalities  perpetrated  were  all  a  waste.   The
    indoctrination  and  the thought  control  had   not
    brought about a worthwhile culture and value system.
    
    9.    We need not discuss why the greatest Communist
    country  and  the  many Socialist fellow  travellers
    gave  up  their beliefs.  What is important is  that
    Western  thinking was faulty, western  intellectuals
    had  made  the  wrong analysis of  what  ails  their
    societies  and  had prescribed the  wrong  remedies.
    The  cost  had been high but more important  is  the
    fact  that these Western intellectuals were  totally
    wrong.
    
    10.   Now if they could be wrong at such great  cost
    before, can they not be wrong again?  Can we believe
    that  the  present Western thinkers  are  absolutely
    right?   Is it not possible that they may  again  be
    wrong, at least to some extent; to some degree?
    
    11.    Eastern  people  are  more  concerned   about
    spiritual  things.   Westerners are  more  concerned
    about  material things.  Capitalism,  Socialism  and
    Communism  are  all materialistic  ideologies.   The
    basic  idea is that if you have material well-being,
    you  must be happy.  And if the material things  are
    distributed equally, then all must be equally happy.
    
    12.   The  obsession  with  equality  permeates  all
    European   or  Western  thinking.   This  is   truly
    laudable.  It is just and it is fair.  But  when  it
    comes  to  certain  things, it falls  far  short  of
    justice or fairness.     
    
    13.   It is fine for everyone to be equal before the
    law.   We can uphold that, although in practice  the
    equality is far from the ideal.  For example a  rich
    criminal with the best lawyers can actually get away
    with  murder  while a poor suspect with an  assigned
    third  rate  lawyer  may not be able  to  prove  his
    innocence,  even  though he is  perfectly  innocent.
    The  equality  is only apparent but far  from  being
    truly equal.
    
    14.   But  when it comes to international  relations
    the  big  powers are more equal than the others.   A
    poor country may have equal rights to apply sanction
    against a rich country but in fact it cannot do  so.
    Again the equality is not real or meaningful.  It is
    merely  lip-service.  In practice the  poor  country
    will always be denied equality.
    
    15.   But  equality is always emphasised  in  trade.
    The  World  Trade  Organisation (WTO)  is  urged  to
    create  level playing fields, i.e. equal  conditions
    for everyone in international trade and investments.
    If  the  weaker  economies agree to  open  up  their
    country  to  unrestricted foreign investments,  then
    they  can  have  equally attractive  conditions  for
    their own investments in the rich countries.
    
    16.   Thus foreign direct investments should not  be
    conditional  but be absolutely unrestricted.   Their
    products should be allowed to compete freely in  the
    local market against products of national companies.
    Frankly,  Malaysia would not be able to go into  the
    automobile industry at all but for differential  tax
    treatment.   If  Malaysia does not produce  its  own
    cars, imagine the drain on foreign exchange as it is
    forced  to buy either imported cars or cars produced
    locally  by the powerful, technologically  advanced,
    cash-rich  Japanese  and  Western  countries.    The
    deficit   in  the  balance  of  payment   would   be
    horrendous.
    
    17.   In  fact but for the right and the ability  to
    regulate the economy in favour of locals in  certain
    areas,  while allowing and even providing incentives
    for  foreign  investments  in  other  areas,  it  is
    doubtful that Malaysia would be as prosperous as  it
    is  today.   If  the  Malaysian market  is  seen  as
    attractive today it is because of the judicious  use
    of  the  regulatory  powers  of  the  Government  to
    encourage locals and also to provide incentives  for
    direct foreign investments.  Without these powers to
    give  unequal treatment, it is likely that  Malaysia
    will become another basket case dependent on aid and
    the generosity of others.
    
    18.  If a basket case is expected to accord the same
    treatment to itself as it does to the rich  and  the
    powerful, it will lose every time and all the  time.
    A  level  playing field is fair when the contestants
    are of the same built, but it is totally unfair when
    midgets are pitted against giants.
    
    19.   Yet  at the GATT, the WTO, the ILO  and  other
    fora,  the  stress of the powerful is on unqualified
    equality.   Workers in under-developed or developing
    countries  must be given the same pay  as  those  in
    developed  countries.  Vast sums of  money  must  be
    expended   on   environmental  protection   in   the
    developing  countries as are supposedly expended  in
    developed  countries  for  this  purpose.    Workers
    should stage strikes regularly as evidence that they
    are free etc. etc.
    
    20.   Failure to do all these would result in  anti-
    dumping  measures or countervailing duties  or  just
    plain  economic arm-twisting.  It does not occur  to
    the rich and the powerful that equality can also  be
    achieved  by  their lowering their  inflated  wages,
    benefits and entitlements.
    
    21.  Equality is great but sometimes equal treatment
    results  in aggravating the disparities between  the
    parties    concerned.     On    the    other    hand
    discrimination,  favoured treatment and  affirmative
    action  are  more likely to result in  equality  and
    justice.
    
    22.   A  classic  case  of  double  standards  about
    equality  is  the treatment accorded to  the  mooted
    East  Asia  Economic  Caucus (EAEC).   The  EAEC  is
    proposed  as  a  forum  for  East  Asian  countries,
    developed and developing, to discuss mutual economic
    problems  and to help the development  of  the  less
    developed members.
    
    23.   But  some  East Asian countries were  actually
    instructed  by Western countries, which had  already
    formed  their  own  trade blocs,  that  they  should
    reject  this forum.  Clearly, what is right for  the
    Western   countries   is  not  right   for   Eastern
    countries.  Equality is not the great principle that
    the  Western countries make it out to be.   Equality
    is  only  good if it results in economic  and  other
    gains for the West, but if it is perceived to  be  a
    threat   to  them,  then  equality  should  not   be
    advocated.
    
    24.   And  so for years now the East Asian countries
    have  not  been allowed to talk to each other.   The
    East Asia-Europe meeting just held barely managed to
    get the participation of the East Asian countries as
    a  loose  group, though not all.  But already  there
    have  been indications that in future such  meetings
    should include non-East Asians as well.
    
    25.   Asians are often accused of being racist.  But
    what is one to make of this objection against Asians
    talking  to each other when the objectors themselves
    have  done  more  than  that,  formed  trade  blocs,
    cartels and have in fact taken unilateral action  to
    block  specific East Asian goods from their  markets
    without even giving a fair hearing?
    
    26.   Freedom  is another sacred cow which  everyone
    must  worship.   Asian countries are  forever  being
    accused of not giving freedom to their own peoples.
    
    27.   What  about  the freedom of independent  Asian
    countries?   If they are not allowed to  form  their
    own association, then can they be really free?  What
    is  the  difference  between the Russian  action  to
    force  the Czechoslovak Republic or Hungary to  stay
    within  the  Communist bloc and the  denial  of  the
    freedom of association of East Asian countries?   At
    least, Russian imperialism has been curtailed.   Can
    one say the same of other hegemonic powers?  Or will
    double standards prevail with freedom as it prevails
    with equality?
    
    28.   East  Asia  is  set for  a  renaissance.   The
    process   that  began  with  the  Japanese  economic
    miracle has now spread to North East and South  East
    Asia.   The  prosperity of nations should contribute
    to   the  development  of  other  nations.  Malaysia
    prospered  because of Japanese investments  largely.
    Japan  would  not have invested in Malaysia  and  in
    other countries if it had not itself prospered.
    
    29.   Today South East Asian countries have  already
    begun  to  invest  in  other  developing  countries,
    helping them to create jobs and to develop.  At  the
    same time they, the South East Asian countries, have
    become  good  markets  for the developed  countries.
    Obviously, it is a win-win situation which beggaring
    your neighbour will not result in.
    
    30.  It is not an accident that the countries of the
    Association of South East Asian Nations have  almost
    uniformly  prospered.  They have  learnt  from  each
    other the right formula for development.  They  have
    all  opened  up  their countries to  foreign  direct
    investment.   In  Africa  and  Latin  America  where
    socialist  ideas  were spread,  nationalisation  and
    rejection   of  foreign  investment  have,   without
    exception,  undermined their economies.  Socialistic
    centrally-planned economies are to be found in  East
    Asia  too.   But ASEAN has acted as a counterbalance
    and   today,   even  if  Communist   and   Socialist
    ideologies are still upheld by some, the free market
    economy, as pursued by ASEAN, has become universally
    accepted.
    
    31.  If the EAEC is given free rein, the free market
    system  will  be   truly   propagated.   The  weaker
    economies  in the regions will
    benefit.   East Asia will prosper and  will  act  as
    supplementary engines of growth for the rest of  the
    world.
    
    32.   The  EAEC is an idea whose time has come.   It
    can   speed  up  the  rebirth  of  East   Asia.    A
    rejuvenated  East Asia practising  the  free  market
    system will eventually lay to rest the last vestiges
    of Communist and Socialist economic theories, if not
    ideologies.  If indeed the Europeans and  the  North
    Americans  believe  in  the  free  market  and   the
    associated  democratic system, the best  thing  they
    can do is to support the formation of the EAEC.
    
    33.   Blocking  it  or  being suspicious  of  it  or
    diluting it with non-East Asians will only slow down
    the  march  to East Asian prosperity.  It may  cause
    bitterness  and  it will antagonise countries  which
    really want to be friendly with the West.
    
    34.   The  East-Asia Europe meeting just held  is  a
    good beginning.  It will help dispel the unwarranted
    fears  of  a  resurgent East Asia.  East Asia  wants
    fair  trade  as much as the European  Union.  If  we
    differ  in  our views, it is because we are  looking
    from  our  own  viewpoints; from our  own  stage  of
    development.   But  some  discussions  can  help  to
    dispel suspicions on the part of both parties.
    
    35.   The East-Asia Europe meeting is an example  of
    near-equality.  Not only is the playing field level,
    but  the  contestants too are fairly evenly matched.
    No  one can bully or be bullied.  Only good can come
    from this dialogue.  When East Asia is fully reborn,
    it will not be a bitter East Asia wanting to get its
    own  back  on  the nations which tried to  delay  or
    prevent  its  renaissance.  East Asia will  remember
    who helped and will contribute when required.
    
    36.  Let there be no Boston Tea Party.  Let there be
    full  or  meaningful representation.  Let  there  be
    democracy in the management of world trade.  Let  us
    remember that poor nations and  poor regions help no
    one, not the prosperous nor the impoverished.Prosper
    thy neighbours and thou shall prosper thyself.     

 

 



 
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