Oleh : YAB DATO SERI DR
MAHATHIR BIN MOHAMAD ]
Tempat : MAPUTO, MOZAMBIQUE
Tarikh : 21-8-2000
Tajuk : AT THE OFFICIAL DINNER IN
CONJUNCTION WITH THE
MEETING ON GLOBAL 2000
INTERNATIONAL SMART PARTNERSHIP
Penyampai : PM
"SMART PARTNERING FOR NEW ECONOMY"
I note that the theme of this year's dialogue is global
trends and emerging economies. I would like to take
this opportunity to touch on a few aspects of
globalisation.
2. Let us be reminded that globalisation is not
merely a process but has also become an ideology. From
one international forum to another, the proponents of
unbridled, supposedly `unstoppable' forces of
globalisation and trade liberalisation continue to sing
their song of "the ticket to a better life for
everyone". This ideology is preached to us as being
full of glorious benefits. I continue to look long and
hard for evidence that this may in fact, be true. But
all around, the arrows point in the opposite direction.
Sadly, the number of downturns and negative aspects of
globalisation which many of us have actually
experienced are seldom mentioned or discussed. If they
are, they are not attributed to globalisation but to
things like bad governance, lack of democracy, cronyism
etc.
3. In nation building, when caution is not exercised
and care not taken; when the interest of people and
nations are gambled upon on the basis of an `ideology',
when decisions are not grounded in reality and the hard
facts are ignored, there will be calamity. The
promoters of the ideologies are of course to blame.
But we who make the decision to convert cannot be
totally blameless. How many times have we seen
ideologies destroy nations and yet when a new ideology
is promoted we accept it as the perfect and infallible
solution to all our problems.
4. The man in the street may be oblivious to the
forces of globalisation. Yet it will affect him with as
much intensity, as it will the heads of Government and
captains of industries. The reactions of Governments
and industries to globalisation will bear finally on
the ability of individuals to enjoy economic freedom
and empowerment; and whether individuals live in a free
land and be master of their own destiny. Globalisation
merits serious thinking and we need to strategise our
responses to the major issues ranging from business
globalisation and trade liberalisation, sustainable
development, the knowledge-driven economy and the socio-
political concerns such as democracy, the rule of law
and human rights.
5. If the amount of money circulating around the
globe is anything to go by, we are trading more now
than at any other moment in human history. Financial
liberalisation has certainly been extensive, and the
world has borne witness to massive financial flows and
market penetrations. The volume traded in the world
foreign exchange market has grown from a daily average
of 15 billion US Dollars in 1973, to over 900 billion
US Dollars in 1992, and the number today far exceeds
1000 billion US Dollars a day.
6. But where does all this money go? What productive
and essential economic activities does it support? The
hard reality is that a mere two per cent of foreign
exchange traded is used for trade payments. The rest of
the transactions are all speculative in nature. And
speculation is non-productive. In fact it is truly
destructive, as the East Asian economies learnt to
their cost in 1997-1998 financial and economic turmoil.
7. Who benefits from all of these so called 'trade
liberalisation'? The beneficiaries are clearly a select
and privileged group. The top fifth of the world's
population in the richest countries enjoy 82 per cent
of the expanding export trade and 68 per cent of FDI --
the bottom fifth barely more than one per cent. Between
the periods 1980-1996 only 33 countries managed to
sustain three per cent annual growth. For 59 countries
mainly in sub-Saharan Africa and Eastern Europe and the
CIS, GNP per capita had in fact, declined.
8. Twenty per cent of the world's population in the
developed countries receive 82.7 per cent of total
world income, while the 20 per cent of the world's
population in the poorest countries receive only 1.4
per cent. In 1989 the average income of the 20 per
cent of people living in the richest countries was 60
times higher than that of the 20 per cent living in the
poorest countries. What is more alarming is that this
ratio has doubled, from 30 times in 1950.
9. The glorious promises of globalisation have yet to
materialise. A reckless approach to trade
liberalisation without due consideration for one's own
ability to cope will only contribute to a vicious cycle
of trade and balance of payments deficits, financial
instability, debt and recession, not to mention the
social costs of dumping and general economic erosion.
A misstep carries with it a cost no less than
catastrophic for nations and people. A blind acceptance
of an ideology that to date stands as just that -- an
ideology -- is unacceptable, naive and downright
dangerous.
10. To equate globalisation with a guarantee for
economic advancement is a gross oversimplification of
the realities that surround international trade.
Despite the best intentions and most progressive macro
economic policies of developing nations, better trade
performance does not necessarily translate into
increases in living standards. Given the international
division of labour, where high-priced goods are
produced by the advanced nations of the world, and the
production of low-value items are relegated to
developing nations, the terms of trade for developing
countries are almost always unfavourable.
11. I am not convinced that the developed nations are
at all interested in this so-called 'level playing
field'. Globalisation as it stands clearly means access
of products of developed nations into the developing
world. And yet, high tariffs still persist in developed
countries in sectors such as agriculture, textiles and
steel in which developing countries may have
comparative advantage. If not tariffs, then it is
standards, subsidies, labour conditions, human rights -
the goal posts keep changing against our favour.
12. This clearly calls for a new way of thinking, for
developing nations to chart a new paradigm in nation
building such that old mistakes are not repeated. Given
the onslaught of voices propagating the good of an open
and liberal economy, sovereignty as a basis for self-
determination and empowerment seems contradictory and
out of place. Yet at no time is it more relevant than
it is now.
13. It is not without a good reason that the last WTO
round in Seattle came to a stalemate. Nation building
is not only about the lowest cost, it is equally about
social justice and a conducive environment for the
development of human dignity. A grain of rice or wheat
or maize or barley is not simply an issue of how much
it cost to produce but does the person planting it make
a decent living? And who ends up eating the produce?
Nation building is about the ability and freedom and
flexibility to make strategic choices in finance, trade
and investment for oneself. If nations are willing to
accept higher prices in order to acquire the
technologies to compete later, that should be the right
of sovereign nations to decide.
14. It is ironic that the very same people who
advocate freedom of speech and rights of expression are
the very same to clamp down hard on what they see as
dissenting views on their brand of globalisation.
Malaysia's rejection of the IMF formula and the
decision to regain exchange rate control and regulate
the flows of short term capital have now been
reluctantly accepted by the international community as
a viable alternative to the IMF prescription. By their
own admission, a 'cure all' for economic ills of the
world simply does not exist. Yet barely are we out of
the crisis, a new 'prescription' is being forced down
our throats. How soon we forget. And what is the price
of such a memory lapse?
15. Developing nations must ask themselves where they
want to go from here. What are the options open to them
and what they intend to do about it. While the
developed world embraces the new knowledge-driven
economy in all eagerness, developing economies, to the
level that is comfortable and attainable, must also
embark on a quest for knowledge in all its forms.
Knowledge is the domain of all the citizens of the
world and cuts across all strata of economic activity.
It is certainly not limited to cutting edge technology
and the ICT sector, as we are commonly led to believe.
16. It is on this premise that Malaysia has embarked
on an agenda for intensification of knowledge use in
all sectors of the economy, new and traditional. This
entails the concerted effort of all stakeholders in the
Malaysian economy to acquire and generate bodies of
knowledge. Coupled with the ability to effectively
translate knowledge into technological and social
advancement that elevates the living standards of the
populace, this is empowerment in its truest sense.
17. `Technology-based economic development' is a
unique phenomenon. Development was once a matter of
accumulating physical and human capital. Within that
process there is what is known as the 'convergence
factor'. This assumes that a well-governed developing
country experiences high returns from investment, which
in turn attracts an inflow of foreign capital, thus
narrowing the gap between rich and poor nations.
18. Technological advancement, however, dances to a
different tune. With increasing returns to scale in
their favour, regions with advanced technologies are
best placed to further innovate, with the gap between
the technological haves and have-nots ever widening.
Innovation requires physical, financial and social
infrastructure -- demanding even to the most advanced
of nations. But a developing country grappling with
limited resources and a multitude of needs will fail to
innovate. Worse still whatever talents they may have
would be enticed away because they lack the facilities
and could not match the terms offered by rich
countries.
19. Emerging economies, therefore, must see the
process of globalisation from all aspects. Most
decision making at the international level seemed to
safeguard the interests of the more matured economies
without regard to national sovereignty, economic
freedom, economic empowerment, socio-economic
programmes, and technology development agenda being
undertaken by developing nations.
20. It is precisely in this context that the Smart
Partnership practice promises to make the most impact.
Smart partnership can help unify concerns and actions
and to formulate a common stand and embark on
cooperative actions in order to counter any perceived
negative forces of globalisation affecting the
emerging economies. The smart partnership dialogues,
such as this, can well serve as focal points to
deliberate and share our views and experiences and to
nurture continued interactions among members and smart
partners in between dialogues.
21. I observe that CPTM, the Commonwealth Partnership
for Technology Management, can assume a catalytic role
in synergising the many different dimensions of the
subject of globalisation with a truly achievable `win-
win' result. `National smart partnership hubs' will
have to come forward, and work closely with CPTM, and
set priorities for action. In this regard, I would
like to offer MIGHT, the `Malaysian smart partnership
hub' to assist whenever we can.
22. I wish all smart partners a fruitful and
stimulating dialogue.
Sumber : Pejabat Perdana Menteri
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