Oleh/By		:	DATO' SERI DR. 
			MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	NEW YORK, USA 
Tarikh/Date 	: 	29/09/99 
Tajuk/Title  	: 	THE 54TH SESSION OF THE UNITED 
			NATIONS GENERAL ASSEMBLY 


   
  
       Allow  me,  firstly, to congratulate  you  on  your
  election  as the President of this 54th session  of  the
  United  Nations  General Assembly.  It  gives  me  great
  pleasure to see the international community honour  both
  you  and your country through your election to this high
  office.   I am confident that given your vast experience
  and  diplomatic  skills you will be able  to  steer  the
  proceedings   of   this   Assembly   to   a   successful
  conclusion.
  
  2.    I  join other speakers in expressing our gratitude
  to  your  predecessor, His Excellency Mr. Didier Opertti
   Baden,  for the dedicated and effective manner in  which
  he  had  guided  the  work of the last  session  of  the
  General Assembly.
  
  3.    I  would  also  like to take this  opportunity  to
  commend  the Secretary General for his great  dedication
  to  the  Organisation and the many contributions he  has
  made in the service of the international community.
  
  4.    Malaysia  would  also like to  join  other  member
  states  in  welcoming,  most warmly,  the  Republics  of
  Kiribati  and  Nauru and the Kingdom  of  Tonga  as  new
  members  of  the  United Nations and  looks  forward  to
  working  closely with them, particularly  on  issues  of
  common  interest to the Asia Pacific region  from  where
  we come.
  
  5.    The  20th Century is coming to an end.  Before  we
  enter  the  21st  Century it is  useful  to  review  the
  events  of  the  20th Century so we may learn  from  our
  experience  and  hopefully we will know how  to  conduct
  the affairs of the 21st Century.
   
  6.    The  20th  Century saw the most  destructive  wars
  which  destroyed  billions of dollars  of  property  and
  killed  millions  of people.  It saw  the  most  inhuman
  dictatorship  in  Germany where six  million  Jews  were
  tortured  and  killed.  It witnessed the  first  nuclear
  bombs  that  killed hundreds of thousands instantly  and
  many more due to the after effects.
  
  7.    When the greatest war in human history ended, this
  august  body,  the  United  Nations  was  founded.    We
  thought  there would be peace as the great  powers  work
  together   in   the  United  Nations.    But   not   so.
  Immediately the victors divided themselves in two  camps
  and  initiated the cold war.  However it was the  threat
  of  a  hot war that kept the war cold.  Each side  built
  huge  arsenals  of nuclear and non-nuclear  weapons  and
  glared   at   each   other   across   deep   chasms   of
  misunderstanding  as they threateningly  fingered  their
  nuclear triggers.
   
  8.    For the colonies of European nations there was  an
  up-side.   Fear of defections to the other  side  forced
  the  two  camps  to relax their grips on their  colonial
  territories.   Countries gained independence  but  their
  survival depends on their skills in playing the  Western
  bloc against the Eastern bloc.
  
  9.    Unfortunately this choice to defect to  the  other
  side   did  not  last.   Suddenly  the  Communist   side
  collapsed.  Lured by the apparent wealth of the  Western
  free-market   liberal  democracies,  the  Eastern   bloc
  jettisoned   their   authoritarian   centrally   planned
  economies  and  adopted  the  liberal  democratic   free
  market  overnight.   They thought that  since  they  now
  have  a  similar system as the Western bloc  they  would
  get  the  friendship,  cooperation  and  help  from  the
  Western  countries.   They were na.ve  enough  to  think
  that   after  seventy  years  of  command  economy   and
  dictatorship  they could overnight switch  to  the  free
   market  economy  under  the liberal  democratic  system.
  They soon found out that they knew nothing about how  to
  make  the  system work and that they would get  no  help
  from  the Western nations.  Instead the Western  nations
  saw  in their incompetent floundering an opportunity  to
  destroy  the  Eastern bloc, in particular the  principal
  flag-bearer, forever.
  
  10.   Even  as  the inability to manage  a  free  market
  resulted  in galloping inflation, destruction  of  state
  enterprises  and massive unemployment, the  hedge  funds
  and  the  Western  financial institutions  moved  in  to
  devalue the currencies and make debt defaulters of  this
  once  powerful enemy.  Despite knowing that these people
  could  not  manage  a free market liberal  democracy  at
  all,  they  were nevertheless urged and threatened  into
  continuing  anyhow.   There was no going  back  for  the
  Eastern bloc countries.
  
  11.   The  destruction of the Eastern bloc was complete.
  It  could  never again militarily challenge the  Western
   liberal democratic free marketeers.  Now there would  be
  only one choice for the world and no defection would  be
  possible  for the countries of the world, big or  small.
  With  this the liberal democratic free market capitalist
  see  no  more  need  to  be gentle  in  spreading  their
  systems  or  in profiting from them.  No  one  would  be
  allowed  any  other political or economic system  except
  what  is prescribed by the sole dominant bloc.  The true
  ugliness  of Western capitalism revealed itself,  backed
  by   the   military   might  of  capitalism's   greatest
  proponent.
  
  12.   For  the small countries the demise of the Eastern
  bloc  is  a  major disaster.  Now they  are  exposed  to
  pressures  which they cannot resist.  And  very  quickly
  they  learnt  that the free marketeers  intend  to  milk
  them  dry.   As  for their politics, the instability  of
  the liberal democratic system that comes with a lack  of
  understanding of its intricacies by the leaders as  well
   as  the people, meant that they would stay in a state of
  continuous turmoil, verging on anarchy.
  
  13.   A  few  countries apparently managed to  grow  and
  prosper.   But  not for long.  The currency manipulators
  and  short-term investors of the rich soon  impoverished
  these  countries through devaluing their currencies  and
  share  prices.   Impoverished and  politically  unstable
  they  were  forced to borrow from the IMF.   Whether  by
  design  or  through  sheer  lack  of  understanding  the
  economic  regime  imposed  by the  IMF  destroyed  their
  economies  further.   Soon their political  freedom  was
  also   subverted  and  many  had  to  accept   political
  direction  by  the IMF or the loans would  not  be  made
  available.    For  practical  purposes  there   was   no
  independence.
  
  14.   And so for the small independent countries of  the
  world  the future looks bleak.  They are now being  told
  that  the  world  should  be borderless,  that  capital,
   goods   and   services   should  flow   freely   between
  countries.  There should be no discriminatory  taxes  to
  protect  local  industries or  products.   Local  banks,
  industries  and  products  must  compete  on  the   same
  footing  as  imported  products  and  their  banks   and
  industries   must   compete  with  foreign   banks   and
  industries  set  up in their countries.   No  conditions
  must  be attached to foreign banks and businesses  which
  want  to  set  up  operations in their countries.   They
  must  have  national status like those  given  to  local
  businesses.  This way it is said, a level playing  field
  will be created and competition will be fair.
  
  15.   But can competitions between giants and dwarfs  be
  fair  even  if  the playing field is level.   The  giant
  banks,   corporations  and  industries  from  the   rich
  countries  with  huge local markets can afford  to  lose
  money  in  a small foreign country when they  make  huge
  profits at home and elsewhere.  The small businesses  in
   the  small countries will go bankrupt if they lose money
  repeatedly.   In the end they will have to sell  to  the
  giant foreign companies or close down altogether.
  
  16.   There will be no more big local companies.   There
  will  only  be  branches of large foreign companies  who
  will  indulge  in transfer pricing, and will  repatriate
  most of their profits.
  
  17.    The  efficient  giants  may  produce  better  and
  cheaper  goods but if a country does not export its  own
  products  to earn foreign exchange it will not  be  able
  to  pay  for  imports.  Cheap high  quality  goods  mean
  nothing  if  you  have no money to pay  for  them.   The
  markets  of  the  poor countries  may  not  be  big  but
  impoverishing  them would result in lost sales  for  the
  rich.
  
  18.   That  was what happened when the currency  traders
  impoverished   the  countries  they   attacked.    These
  countries  could not buy the products of the  rich  i.e.
  the rich lost their markets and world trade contracted.
   
  19.   Free  unrestricted  flow  of  goods  and  services
  across  borders may be good for a while.  But eventually
  it  will  destroy markets and result in  contraction  of
  world  trade.   The world would actually  become  poorer
  because of free trade.
  
  20.    After  the  last  World  War,  the  confrontation
  between  East  and  West lead to most  of  the  colonies
  being  liberated  and  becoming  independent  countries.
  Being  independent  meant  the  right  to  govern  their
  countries themselves.  Unaccustomed to wielding so  much
  power  many  of these Governments failed.   They  became
  hopelessly  indebted to the banks of the rich countries.
  Their  people  suffered from incompetent and  frequently
  oppressive rule.
  
  21.   But  the  principle that prevailed  in  the  third
  quarter  of  the  20th Century was that  no  one  should
  interfere in the internal affairs of a nation.  That  in
  fact  was the essence of independence.  As long  as  the
  world  was  divided into Eastern and Western blocs  this
   principle was respected.
  
  22.   But then a President decided that his country  had
  a  right and a duty to oversee that human rights are not
  abused  anywhere  in the world irrespective  of  borders
  and  the independence of nations.  No one conferred this
  right  on  this crusading President.  But  small  things
  like that was not going to stop him.
  
  23.   The  claimed victory of the West in the  Gulf  War
  was  regarded as a moral endorsement of the right of the
  powerful  to  interference  in  any  country's  internal
  affairs.   Soon  it was not just human rights.   Systems
  of  Government and the administration of justice, of the
  financial   and  commercial  systems  came   under   the
  scrutiny  of  the powerful countries.  They insist  that
  there  must be only one way of administering  a  country
  and  that  is  the liberal democratic way.  They  insist
  that  there  can  be only one economic  system  for  the
  whole  world  and that is the free market system.   They
   insist  that  there  must  be  openness  in  everything;
  transparency,  separation of  the  private  from  public
  sectors,  non-discrimination between ethnic  groups  and
  no   discrimination  against  foreigners  in  favour  of
  nationals.
  
  24.   All  these  and more sound very good.   They  have
  apparently  worked for the developed  countries  of  the
  West,  making  them rich and powerful countries,  giving
  their  people high standards of living.  But  will  they
  work for everyone?
  
  25.    They  seem  to  have  forgotten  that  they  took
  centuries  to make their system work.  Their  transition
  from  feudal  oppressive rule was  bathed  copiously  in
  blood.   Both  rich and poor were massacred  as  reforms
  were  forced  by a succession of uncaring tyrants,  many
  elected by the people.  Even today their system has  not
  brought  about freedom and equity to large  segments  of
  their  people.   Yet they insist that all the  countries
  of  the  world, new or old, must immediately  adopt  the
   only  system of Government, their system, their  liberal
  democratic system.
  
  26.   The  newly independent countries which  knew  only
  the  authoritarian system of Government cannot but fail.
  The  former  Communist  countries  in  particular  found
  themselves   unable  to  cope  with  the   destabilising
  challenges  directed  at  Government  authority   in   a
  liberal democracy.
  
  27.   But  the new countries are not going to be allowed
  time  to learn and operate the system.  They must change
  now,  immediately.  If their countries are destabilised,
  if  their  people suffer, if they regress  economically,
  these are irrelevant.  The important thing is that  they
  must democratise and liberalise.  If they fail to do  so
  they  would  be  forced  to do so through  arm-twisting,
  trade sanctions and military action if necessary.   That
  these  measures are more oppressive than  those  of  the
  disapproved  regimes and systems do  not  matter.   That
  adoption  of  the approved system would destabilise  the
   countries  further, and cause further suffering  --  all
  these do not matter because the most important thing  is
  the  adoption  of  the system, not  the  benefit  to  be
  derived from it.
  
  28.   It  is  the same with economic management.   There
  must   be   liberalisation   and   deregulation.     The
  Government  should not help the business sector,  should
  not  give them any protection.  If they are attacked  by
  outside forces, fairly or unfairly, and they lose,  then
  let  them  die.  They must be inefficient if they  lose,
  and  the  world has no time or sympathy for  inefficient
  losers.
  
  29.    And  so  giant  currency  traders,  their   funds
  leveraged  a  hundred times or more, are pitted  against
  Central   Banks  with  limited  reserves   and   without
  leveraging  rights.   The economies of  whole  countries
  and  regions are destroyed but the cries for  protection
  by  these  countries are ignored.  The fields are  level
  and  the  free movements of capital are a  part  of  the
   sacred   free  trade.   Everyone  must  accept  whatever
  happens  because  it is free trade.   All  the  currency
  traders are doing is to discipline Governments, so  that
  they  conform to the system and do away with  their  bad
  old ways.
  
  30.   In  a  financial crisis Governments may  not  help
  businesses  to recover.  To do that means a  bailout  of
  cronies.  Let them die.  Let there be blood.  Only  then
  will Governments be considered as serious in wanting  to
  reform  their  systems, to adopt best  practices,  world
  standards  and  the  only proper way to  administer  the
  economy.   If the Government becomes bankrupt in  trying
  to  do this, that is alright.  The important thing is to
  do  things  correctly even if the country is  destroyed,
  the  people  starved  to  death,   anarchy  reigns,  and
  Government collapses.
  
  31.   There  is a touching concern on the  part  of  the
  West  over  human rights.  But the definition  of  human
  rights  seem limited to an individual's right of dissent
   against  the  Government.   Millions  of  people  in   a
  country  will  be made to suffer through  sanctions  and
  even  bombings in order that a few dissenters may  enjoy
  their  rights of dissent.  Apparently the  rest  of  the
  population,  hundreds  of millions  of  them  sometimes,
  have  no rights.  Their rights are not considered human.
  Thus  the  deprivation of the right to work for millions
  resulting  from  currency trading is not  considered  as
  violation  of  human rights.  In the Western  perception
  only individuals have rights, the masses do not.
  
  32.   The  concern  over  child labour  and  sweat  shop
  factories   is   expressive  of  a  sense   of   caring.
  Unfortunately  the  concern  is  only  shown  when   the
  products  of  child  labour  and  sweat  shops   compete
  successfully  with  the products  of  highly  paid  high
  living   four-day   week  workers   in   the   developed
  countries.
  
  33.   Child  labour  and sweat shops are  not  something
   which  anyone  would  defend but  consider  the  extreme
  poverty  of the people in some countries.  They have  no
  capital,  no  technology  or expertise,  no  markets  at
  home,  no  Harvard-trained managers.  All they  have  is
  low  cost  labour.  For the workers the tiny wages  that
  they  earn is far better than starvation and death.   If
  we  really care, then invest and pay high wages and  the
  sweat  shops will disappear and adults will earn  enough
  to  feed  their  children.  Forcing them to  stop  child
  labour  and  sweat shops will only cause more sufferings
  for  their  people.   Telling  them  to  stop  producing
  children  is  not a solution either.  We know  that  the
  poor  have a higher birth rate than the rich.   To  stop
  the  population  explosion which  the  West  is  worried
  about, enrich these people.  Stopping their sweat  shops
  and  children  from  working will only  impoverish  them
  further and cause them to have more children.
  
  34.   With the end of East West confrontation, conflicts
   have  increased  instead of decreased.  The  Palestinian
  problem  is  still not resolved, but the  sanctions  and
  bombing  of Iraq, sanctions against Libya, the conflicts
  resulting  from  the break-up of the Soviet  Union,  and
  the  stirring  up  of  unrest  and  rebellions  or  near
  rebellions  by  open  supports for insurrection  go  on.
  Before  it  was the Communists who stirred up  rebellion
  everywhere  including  in  Malaysia,  now  we  have  the
  Liberal  democrats doing exactly the same  in  the  same
  manner, complete with supply of arms.  Whether it  is  a
  Communist  or  a  Liberal  democratic  insurrection  the
  people suffer not one bit less.
  
  35.   The United Nations seems helpless.  Indeed  it  is
  often  bypassed  by  the  big  and  the  powerful.   Now
  groupings  of  powerful nations or even  one  nation  by
  itself seems to decide when to step in and when to  step
  out.    While  they  like  to  wield  power,  they   are
  inordinately unwilling to pay the price.  Tele-wars  are
   conducted  using high technology such as  the  so-called
  pinpoint  bombings in order to avoid the body bags  from
  coming  home.   This  unwillingness to  face  the  enemy
  often  results in unnecessary killing of innocent people
  and destruction of wrong targets.
  
  36.   Unfortunately no one should expect any change  for
  as  long  as the United Nations belongs to the Permanent
  Five.    The  structure  of  the  United  Nations   will
  continue  to  reflect  the  glorious  victory  of  these
  nations  fifty  years  ago.   For  the  small  countries
  yearly  speeches and various anniversary  speeches  will
  be  allowed.   Occasionally there will be membership  of
  the  Security Council.  But despite three  at  least  of
  the   Permanent  Five  being  vociferous  advocates   of
  democracy  there  will  be no democracy  in  the  United
  Nations.   The  only saving grace are the  agencies  and
  their good work.
  
  37.   Unfortunately  some  in the  United  Nations  have
   rather  unusual principles.  Normally in order to study,
  report  and pass an opinion or judgement on something  a
  neutral  or  unbiased person would be chosen.   But  the
  United  Nations  chose  a  person  well-known  for   his
  virulent  attacks  against the  Malaysian  judiciary  to
  report on that institution.
  
  38.   The  United  Nations then  confers  on  him  total
  immunity  against  the  laws  of  his  country   without
  reference  to or consent of the country.  This  immunity
  apparently  extends  beyond his task  of  reporting  his
  findings  to  the  United Nations.  He may  publish  his
  opinions,  defame people and the subject  of  his  study
  anywhere and everywhere.
  
  39.    Is   there   no   limit  to  a   United   Nations
  Commissioners' immunity.
  
  40.   We  are  told that Governments must not  interfere
  with the judiciary.  Yet in this case the Government  is
  expected  to  instruct the judiciary not to act  against
  this  United Nations Commissioner for breaking the  laws
   of the country.
  
  41.   I  am not blaming the Secretary General for  this.
  It  is  the  peculiar system and principles which  guide
  the  choice  of the United Nations Commissioner  that  I
  find unacceptable.  Nor do I think it proper to hint  at
  dire  consequences for the Malaysian nation if this  man
  is  not  freed  from court action for open contempt  and
  defamation.   There is something not  right  here  which
  the United Nations needs to look into.
  
  42.   But  small countries lack a public  forum  to  air
  their   views   freely.   The  Western  media   distorts
  everything  that they say or do.  Again we are  expected
  to  give  immunity  to  western journalists.   They  may
  break  our laws but no legal action may be taken against
  them.   I would like to point out that in Malaysia  even
  the  King  and the hereditary Sultans are not above  the
  law.
  
  43.   This  then is the scenario in the last quarter  of
  the  20th Century.  We will carry this baggage into  the
   21st  Century and the new millennium.  For the poor  and
  the  weak, for the aspiring tigers and dragons of  Asia,
  the   21st   Century  does  not  look  very   promising.
  Everything  will  continue to be  cooked  in  the  West.
  Just  as  Communism and Socialism came  from  the  West,
  liberal  democracy, globalisation, a  borderless  world,
  deregulation,  unfettered  free  flows  of  capital  and
  their   flights   to   quality,  the   disciplining   of
  Governments by the market and by currency traders and  a
  host  of  other ideas all come from the West.  And  what
  is  from  the  West  is  universal.   Other  values  and
  cultures  are  superfluous  and  unnecessary.   If  they
  remain there will be a clash of civilisation.  To  avoid
  this  there  should  be  only one  civilisation  in  the
  world.   Everything should be standardised according  to
  Western  best practices.  They may change  only  if  the
  West change.
  
  44.   Thus the Globalised world will be totally uniform.
   Variety   is  equal  to  being  intransigent  and   must
  therefore be eliminated.
  
  45.   Malaysia  has just gone through a  very  traumatic
  experience.  In a matter of weeks 42 years of hard  work
  to  develop the country was destroyed, in particular the
  affirmative  action  to reduce the enemity  between  the
  races in Malaysia.
  
  46.   We  have  devised  our own formula  for  recovery.
  With  the  blessings of Allah we have now turned  around
  and  we  are on the road to recovery.  But we are  being
  pressured  to abandon our currency control.  We  do  not
  understand.  It has done us a lot of good.  It has  done
  no  harm  to anybody except a few thousand rich currency
  manipulators.   Foreigners doing real  business  in  our
  country  have profited much from the so-called controls.
  But   we  are  still  being  urged  to  conform  to   an
  international  financial system which  has  enabled  the
  unscrupulous to destroy the wealth of many nations.
  
  47.   No  serious attempt is being made  to  change  the
   International  Financial System.  So far there  is  only
  talk  about  intention.  But the  threat  of  financial,
  economic and political destabilisation remains.
  
  48.   Malaysia  only  wishes to  be  allowed  to  manage
  things  in  its  own  way in the  interest  of  its  own
  people.   We  will not harm others.  We are not  turning
  our  backs to the world.  We have always cooperated with
  the  rest  of the world, in particular with  the  United
  Nations.   We  will  continue to do our  bit  for  world
  peace.   As much as we accept criticisms, warranted  and
  unwarranted,  we  hope  others will  also  tolerate  our
  criticisms  of  them.  Free speech would be  meaningless
  if  criticisms can only be directed at the poor and  the
  weak,   but   never  at  the  rich  and  powerful.    In
  criticising others we are only exercising our  right  to
  freedom of expression.
  
  49.   We  are  not  too enchanted by  the  prospects  we
  foresee in the next century.  But I can assure you  that
   we  will  be a responsible nation, friendly towards  all
  who  are  friendly  towards us  and  harbouring  no  bad
  intentions towards anyone.
  
  50.  I thank you Mr. President.
  
  
  
 
 



 
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