Oleh/By		:	DATO' SERI DR. 
			MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	HAVANA, CUBA 
Tarikh/Date 	: 	12/04/2000 
Tajuk/Title  	: 	THE SOUTH SUMMIT 




  
  I  would like to congratulate the Government of Cuba,  in
  particular  His  Excellency President Fidel  Castro,  for
  hosting  this important Summit of leaders of  the  South.
  I  would  like  to  thank  you,  Mr  President,  for  the
  generosity  and  the  warm  hospitality  that  has   been
  extended  to  my  delegation and  I.   That  was  a  most
  revealing  dissertation that you delivered this  morning.
  It  highlights the disparities between rich and  poor  of
  this world.
  
  2.    Our  gathering  here today may  be  regarded  as  a
  manifestation  of  our  unity  and  solidarity.   However
  while  it  is  easy  to meet it is not  so  easy  to  act
  together.  Therein lies our weakness.
  
  3.    The rich are apparently more united.  Theirs  is  a
   small  group of only seven countries.  Although they  may
  have  varying degrees of differences between  them,  they
  close   rank   very   rapidly  if  their   dominance   is
  challenged.
  
  4.    Their approach is very simple.  Should there be any
  new  ideas  in  the social, economic or  political  field
  they    would   quickly   come   up   with   their    own
  interpretations,  which  are designed  to  benefit  them.
  Thus  we  see  them  foisting on the  world  their  moral
  values,   their  political  systems  and   now   economic
  globalisation.  The South has no choice but to  react  to
  their  interpretations.  And reacting limits  the  choice
  and is less beneficial.
  
  5.     Presently   the   focus   is   on   globalisation.
  Technological advances is the excuse for doing away  with
  the   independence  of  nations  and  replacing  it  with
  interdependent  nations.   We  are  told  through   their
  propaganda  machine that globalisation is an  idea  whose
   time has come and resistance would be futile.
  
  6.     We  had  welcomed  globalisation  believing   that
  foreign  capital, know-how etc, could help our  economies
  to  grow.   Then in East Asia the rogue currency  traders
  demonstrated  that  simply  by devaluing  our  currencies
  they can make the so-called
  East  Asian Economic Tigers suddently into meowing  cats.
  Millions  were  thrown out of work and  made  destitutes.
  The  international institutions then moved in  ostensibly
  to  help  with  loans but in reality  to  facilitate  the
  takeover of the countries' economy and even politics.
  
  7.    All  these  are  made  possible  because  the  rich
  interpretes  globalisation as the  right  of  capital  to
  cross  and re-cross borders at will.  Capital is the  new
  gunship  of  the  rich.  By coming  in  with  short  term
  investments  they  create an illusion  of  wealth.   Once
  that  has  happened they merely have to  pull  out  their
  capital  in order to impoverish and weaken their  victims
   and force them to submit to foreign dictates.
  
  8.    But  if  globalisation implies integration  of  all
  countries  into one single global entity then why  should
  it  mean  only  the free flow of capital and  capitalists
  across  borders?   Why  should  not  workers,  especially
  unemployed  ones, move across borders freely?   If  money
  is  capital  for the rich, labour is the capital  of  the
  poor  countries.  They should be allowed  to  migrate  to
  the  rich  countries, to compete for the jobs there  just
  as  the powerful corporations of the rich must be allowed
  to  compete  with their tiny counterparts in  the  poorer
  countries.   Just as the big corporations from  the  rich
  can  easily  put out of business the small  companies  of
  the  poor,  the  hard working lower paid workers  of  the
  poor  can  easily displace the high cost  labour  in  the
  rich  countries.   The result would be  lower  production
  cost  and  lower  cost of living for the  rich  and  more
   remittances to poor countries.
  
  9.    This  is a ridiculous idea of course.  How can  one
  expect  a  rich country to let poor people in to displace
  their  highly paid workers?  But if it is right  for  the
  big  corporations  of  the rich to  displace  small  weak
  corporations  of  the poor, why is it so  wrong  for  the
  poor  workers to displace the rich workers  in  the  rich
  countries?
  
  10.   The  economic turmoil in East Asia has resulted  in
  the  rich taking what belongs to the poor.  As the  banks
  and  businesses of the former Asian tigers  collapse  and
  as  their share prices plunge, the rich have moved in  to
  buy  the devalued shares and acquire the companies.  They
  could  have  bought at normal prices during normal  times
  but  they  preferred to emasculate us  before  they  take
  over  at  a fraction of the cost.  Backing this move  are
  the  international  institutions, which  insist  that  we
  open  up our countries so that the predators can move  in
   to  take  over everything.  Governments may  not  protect
  local  businesses.  Market-forces must prevail and  since
  money  equals force in the market, those with money  will
  dominate.
  
  11.    We  admit  that  we  are  not  perfect.   We  have
  corruption,  cronyism  etc.   But  so  have   the   rich.
  Despite  our alleged corruption etc we had developed  our
  countries  and given our people a good life.  The  market
  forces,  which want to eliminate corruption  etc  in  our
  countries  have  had  no noticeable success  despite  the
  high  cost to us.  But they have certainly  made fortunes
  by  their manipulations of the currencies and the  market
  and  now  by  their acquisition of the banks,  industries
  and businesses.
  
  12.   Globalisation  should stress  results  rather  than
  methods.   Presently we are being told that globalisation
  must be espoused and practised even if it destroys us.
  
  13.   We are falling into the old trap of believing  that
  systems  on their own can solve human problems.  When  we
   put  too  much  faith  in a system  we  will  forget  the
  reasons   why   the  system  was  initially   formulated.
  Systems are devised because they are believed to be  able
  to  right  current  wrongs  and  bring  benefits  to  the
  practitioners.  Unfortunately once a system is  accepted,
  it  becomes  so  sacred  that  even  if  the  results  it
  delivers are worse than the situation it was supposed  to
  remedy,  it must still be upheld, defended and practised.
  At  that  stage if anyone dares to go against the  system
  he   will  be  regarded  as  a  heretic  and  universally
  condemned.
  
  14.  Globalisation has already shown signs of becoming  a
  religion  that  tolerates  no  heresy.   This  is  rather
  unfortunate,  for globalisation, if properly  interpreted
  and  regulated,  can bring about a great deal  of  wealth
  and  benefit to the world, the rich as well as the  poor.
  The  important  thing is to focus on the  results  rather
  than  dogma.  If the results are good then by  all  means
   implement it as currently interpreted and practised,  but
  if  the  results  are bad for anyone, then  globalisation
  must  be  reinterpreted and modified until  the  expected
  results are achieved.
  
  15.  It is a mistake  to  exclude  the weak  and the poor
  from   participating in the formulation of globalisation.
  They have a great deal of experience. We have seen in the
  East how Foreign Direct Investment  (FDI),  technological
  transfers and   opening up of the markets of the rich has
  resulted in the poor countries becoming enriched. We have
  also seen how  nations   can be made poor suddenly.   Our
  experience can help shape a   globalisation that benefits
  all.  So let us in.
  
  16.   There is no doubt that if globalisation is properly
  interpreted  and  practised  it  can  result  in a   more
  equitable  world  order  where  wealth  is  more   evenly
  distributed   between   the   rich  and  the poor.  Badly
  interpreted it can  destroy the  poor  especially and  by
   extension stifle the growth of the rich.
  
  17.   This  is  a Summit of the countries of  the  South.
  There  are  many  of us and each one of us  is  poor  and
  unable   to  influence  international  policies  in   our
  favour.   But weak though each of us may be, our combined
  strength   is   very  considerable.   It   is   therefore
  imperative  that  we  act  together  if  we  want  to  be
  effective.
  
  18.   Today  political or ideological  interests  are  of
  less   importance  than  economic  growth   and   greater
  material wealth for our people.  Most of us believe  that
  free  trade  and  private investments  can  help  achieve
  these.   We believe that globalisation can contribute  to
  more  rapid growth through free flows of goods,  services
  and capital.
  
  19.   But  we  also know that the best run economies  can
  run  into  deep trouble.  We the poorer countries  cannot
  afford  the  recessions.  We believe  we  can  contribute
  towards avoiding recessions.  Therefore our views  should
   be   taken   seriously   in  the   formulation   of   the
  international financial and economic systems.
  
  20.   I am pleased that the draft Final Declaration which
  we   will be adopting at the end of our Summit Conference
  is a  succinct forward-looking document, which will guide
  us in our   collective approach towards the attainment of
  our  common goals.
  
  21.  The  programme  of action which will also be adopted
  will   supplement the collective strategy to attain those
  goals.