Thursday, April 9, 2009

Spiritually or materially rich?

Spiritually or materially rich?

“Everything in moderation,” counseled Aristotle.

Much discussion has occurred recently regarding the revelation of the pay-scales of several religious and charity figureheads. Particularly, topping the pay-scale is the $500,000 annual salary paid to an undisclosed individual of the New Creation Church. Venerable Ming Yi, the former head of the Ren Ci charity organization, draws home a relatively meager salary of $16,000 a month, a fact disclosed during the processes of his recent trial.

Indeed, the familiar ring of “pegging income” to the highest earning CEOs or executives comes sounding again. Detractors argue that there is nothing really wrong in paying these religious/charity figureheads a 6 figure annual salary, given the amount of extensive contributions they make to the organization. Without these individuals, they contend, the organization in question may potentially profit only a smidgen of what they do now. Furthermore, within the broader context of the multi-million net worth of these organizations, what these individuals ultimately take home may only be less than 1 percent of its total worth.

These declamations may be specious however, on several counts.

Firstly, it is not entirely clear how one may quantitatively arrive at a conclusion that in the absence of these individuals, the organization in question may profit only a fraction of what they do now. It may not be an exaggeration to say that charity or religious organizations that have a predilection to pivot their success upon one particular individual should seriously reconsider their approach. As history has shown, most poignantly in the case of NKF, when too much power is concentrated in the hands of one particular individual, issues of accountability and transparency may manifest, even with an auditing presence. Coming from either a charity or religious background, the organization must have strength in depth that will enable them to splay their individual roles and responsibilities as evenly as possible. One individual should not make or break the success of a church or charity.

The issue at hand here is not justifying the pay of these individuals within the broader context of the ultimate net-worth of the organization as a whole. This misses the point altogether. The fact is that religious and charity organizations are inherently different from the fundamental purpose of multi-national co-operations, as well in terms of how they both operate and function. While the multi-national co-operations are intrinsically profit-driven, the same cannot be said of religious organization or charities. A CEO of a multi-billion company may justify his high-paying wages from the company’s extensive yearly profits, but such a justification may be in tatters when applied equally to a religious or charity figurehead.

Austerity is a common thread through most religions. Jesus had famously said that it was easier for a camel to pass through the eye of a needle than for a rich man to enter heaven. Buddha was known to renounce his worldly life as a wealthy prince for that of an ascetic. Although donations and tithes are given in accordance to one’s own volition, it is to the purpose of a church or charity in which these donations are made, not to a particular individual. A salary is derived in part from these donations to ensure that the individual who run the organization are not shortchanged financially, but this does not immediately warrant them getting paid an equivalent amount of salary of the top CEOs in the country.

A salary cap should be imposed on the individual figureheads of religious or charity organizations to ensure that their salaries are kept in check. While a religious or charity organization may claim to spearhead altruistic motivations, it is ironical that their figureheads need to have gold-plated bathrooms or to be paid in the extremes. The retort that a good part of their salary goes back into the organization through their own donations begs the question: why not simply skip the complexities and direct that portion of his salary straight into increasing the organization’s budget?

The salaries of certain religious or charity figureheads may be initially beyond the ken of the individuals who commit to a regular donation to these organizations; but now that it is known clearly to the general public, it is indeed seriously time to question if the emphasis of these organizations is on being spiritually or materially rich.

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The economics beyond our dialects and languages

The economics beyond our dialects and languages

So the dust has now settled over Minister Mentor Mr Lee Kuan Yew’s provocative call to Singaporeans to focus on learning mandarin instead of their dialects. From a personal perspective, I didn’t find Mr Lee’s call surprising, given the fact that he has always championed Singapore’s role as the gateway to China. There has been exhaustive discussions on the cultural impact of Mr Lee’s remark but little attention is paid to the economics beyond the dialects and languages.

As the fallout from the current global credit crisis continues, there has been some talk of America losing its superpower status as it reels from a double whammy - the collapse of its financial system and the overstretching of its military in Iraq and Afghanistan. And naysayers have further rubbed salt into the wound by predicting that the US dollar will lose its world currency status. The writing is already on the wall when OPEC (Organization of the Petroleum Exporting Countries) countries started dumping the dollars. Iran transacts in Euros with Venezuela following suit. And after the dollars hit its lowest against the yen, the likelihood of the former being knocked off its pedestal seems closer to reality.

There could be a shift in the balance of world power, a transition from one dominant entity to a few powerful entities. The BRIC (Brazil, Russia, India and China) nations seem the likely candidates. China is poised to overtake America in terms of GDP by 2040. For ASEAN nations, trading volume with China is set to rise with the establishment of the ASEAN-China Free Trade Area by 2010. The value of ASEAN-China trade was forecasted to hit $200 billion in 2008.

The Kra canal project, which is the planned waterway link between the Indian ocean and the South China sea and cutting across the Isthmus of Kra is in its revival stage. The Chinese will be providing assistance for the project, and it is a move to increase Chinese presence within the Southeast Asian region, particularly in facilitating trade.

So the geopolitics shift and anticipation of increased trade links with China within the region might make learning mandarin an attractive posposition, no? Perhaps, there is use for learning mandarin after all. However, wouldn’t it seem a little premature to place the learning of our dialects into the backburner?

Those who speak cantonese amongst us might have a strong case for arguement here. The cantonese make up 15% of the chinese Singaporean population. Cantonese is spoken as a medium of communication in Guangdong, a major business center in China. And it will come in useful when interacting with business people from Hong Kong too.

However, it is a fallacy to think that being chinese and able to speak mandarin would eventually lead to a comparative advantage. The initial failure of the Suzhou Industrial Park (SIP) serves as an important reminder to all of us. SIP was initially conceived to be the epitomy of Singapore-style industrial township - a showcase of Singapore’s way of managing an industrial set-up. That wasn’t to be, and Singapore transferred a major part of SIP’s ownership back to the Chinese. What happened was that SIP was outgunned and outfoxed by the Suzhou New District, despite the former enjoying advantages ranging from political support from the Communist party to freedom over planning and land use. Turned out that the experiment to clone Singapore in China failed.

Thus, what Suzhou has taught us is that what works in Singapore may not necessarily work elsewhere. Undoubtedly, learning the language or dialect involved in trade communications is important, but the key to survival is to be able to adapt to the prevailing business conditions. This is the basic rule of evolution.

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Responding to China’s Charm Offensive

Responding to China’s Charm Offensive

Joshua Kurlantzick | June 1, 2007

Editor: John Feffer

In a short period of time, Beijing has proven that it can shift its foreign policy quickly and woo the world, often focusing on countries America has alienated. China has drastically changed its image in many parts of the world from dangerous to benign. It may already be the preeminent power in parts of Asia, and it could develop China-centered spheres of influence in other parts of the globe, like Central Asia or Africa. Even longtime American allies like Australia have moved closer to Beijing.

China also, however, may not be able to build its soft power indefinitely. As we have seen, greater familiarity with China will expose many countries to the People’s Republic’s flaws. China’s promises of aid and investment could take years to materialize, yet Beijing has created heightened expectations about its potential as a donor and investor in many countries. China’s exportation of labor, environmental, and governance problems alienates average people in Asia, Latin America, and Africa. China’s support for autocratic rulers in countries like Zimbabwe and Sudan angers civil society leaders and opposition politicians. If Beijing seems to be dropping its preference for noninterference and “win-win” relations, it will spark fears in countries like Vietnam already suspicious of China. It also could reinforce the idea that despite Beijing’s rhetoric of cooperation, when it comes to core interests, China, like any great power, will think of itself first.

The Mekong River offers an obvious example. Though China promises to cooperate peacefully with other countries, in the development of the river, China has proven both uncooperative and meddling. It has meddled by refusing to join the multilateral group monitoring the river and by injecting itself into other nations’ domestic politics to get politicians to support China’s damming of the river.

China could further alienate other nations if it seems to be using multilateral institutions as a cover, without jettisoning Beijing’s own more aggressive, even military aims. Despite signing a deal with the Philippines and Vietnam for joint exploration of the disputed South China Sea, Beijing has not retracted its claim to large swaths of the water. Any Chinese decision that appears arrogant or targeted toward Chinese domination of the region will cause a backlash. Even as officials in Vietnam signed the joint exploration deal, they privately warned that they still could not trust their Chinese counterparts enough to share the most important data with Beijing.

Similarly, if China drops its rhetoric of “win-win” relationships and makes more aggressive, unilateral demands, it could provoke a backlash in Asia, which is relying on multilateral institutions to restrain China from regional dominance. Some Chinese officials have begun to act more assertively. In 2003 one former Chinese ambassador to Singapore warned that Beijing would no longer bow to other nations; as she told a business forum, Singaporeans had to lose their “air of superiority” if they wanted to continue dealing with China. “The Chinese diplomats I’ve dealt with have become increasingly sure and proud of their status, and disdainful of Southeast Asian nations,” says one Singaporean diplomat. As the Chinese diplomats abandon their style of appearing to listen to every nation’s concerns, he says, they will lose some of their appeal. In Singapore, China’s growing diplomatic assertiveness has suggested to some Singaporean officials that China’s charm is merely a facade. Fear of China, along with mistrust of Chinese charm, in fact, explains in part why Singapore has boosted defense cooperation with the United States in recent years.

China’s trade relations, too, ultimately could limit its soft power. If China builds the kind of trade surpluses with the developing world that it enjoys with the United States, it could stoke local resentment. Eventually, Beijing could wind up looking little different to people in Asia or Africa or Latin America than the old colonial powers, who mined and dug up their colonies, doing little to improve the capacity of locals on the ground. Whole regions could become trapped in a cycle of mercantilism, in which they sell natural resources to China and buy higher-value manufactured Chinese goods.

Latin America faces the greatest danger of mercantilism, but other regions could face a mercantilist trap. In Thailand companies now export $3.9 billion in electronics to China and import more than $6 billion worth. In Malaysia one study of local manufacturing found that the country is rapidly losing its ability to compete with China in manufactured goods. “To compensate for the decline,” the study concluded, “Malaysia is turning towards resource-based exports [like] oil, petroleum products, liquefied natural gas, and wood-based products [that] are top exports to China.”

Beijing also may fail in its efforts to persuade diaspora Chinese to return. After years of Chinese officials traveling across the world wooing ethnic Chinese organizations, many diaspora Chinese are shocked by the welcome they get when they finally travel to the People’s Republic. In Malaysia, Indonesia, Thailand, and many other countries, local ethnic Chinese businesspeople constantly complain about China. Many of these diaspora Chinese made investments in China expecting some kind of preferential treatment on the mainland. When their Chinese business partners squeezed them, or mainland Chinese looked down on them because they did not speak Mandarin, some found that being in China just emphasized how little they had in common with people in Beijing or Shanghai.

“Ethnic Chinese in Indonesia go back to China and find they don’t like China,” said Ong Hok Ham, an Indonesian Chinese historian. “They are disappointed in how different they are from the Chinese.” Conversely, mainland Chinese do not necessarily see the diaspora Chinese as brothers and sisters. Phillip Overmyer, executive director of the Singapore International Chamber of Commerce, says that the chamber conducted research on issues Singaporean businesspeople face in China. According to Overmyer, “The [mainland] Chinese management said they had trouble dealing with Singaporeans because Singaporeans didn’t understand Chinese culture, even if they spoke Mandarin.”

Even diaspora Chinese companies with the closest links to China sometimes can feel alienated. Charoen Pokphand, the Thai conglomerate that invested so much time over the years cultivating Chinese leaders, found in the mid-1990s that Beijing had denied it valuable telecommunications concessions. Most famously, in the early 1990s China allowed Singaporean companies to build an enormous industrial park in the eastern Chinese city of Suzhou. Lee Kuan Yew, the founder of modern Singapore, took a personal interest in the industrial park. Despite this high-level support, the Singaporeans still came away angry. They complained that their Chinese partners backed a rival industrial park. They alleged that their partners were piling up wasteful spending, resulting in tens of millions in losses. Finally, the Singaporeans just gave up, selling majority ownership in the park to mainland Chinese developers.

When these countries have concerns about China, the obvious place for them to turn is the United States, the other great power. Asian nations are always “playing the United StatesS off of the Chinese -- dangling what the Chinese will offer in order to get the United States more interested in them,” one senior American policy maker told me. Washington should be prepared to simultaneously leverage Beijing’s charm on issues of interest to both the United States and China, like preventing disruptions in global energy supplies, while rebuilding America’s soft power so that the United States has the ability to confront China on issues where American and Chinese interests diverge. To accomplish this, America first has to understand Chinese soft power.

The United States needs to comprehend exactly how China exerts influence. In part, this can be accomplished through efforts like Congress’s U.S.-China Engagement Act, which would create more American missions in China. But Washington also should take a page from its Cold War policy. During the Cold War, Washington had at least one person in each embassy who studied what the Soviets were doing on the ground in that country; today the United States should have one person in each embassy examining that nation’s bilateral relations with China -- China’s aid policies, Chinese investment, China’s public diplomacy, Chinese leaders’ visits.

As anyone who has worked for a large organization knows, if your boss tells you to do five tasks, you will try to finish all five. But if your boss hires you to do only one job, like studying China’s charm offensive, you will be more likely to produce great work, since you have no subsidiary responsibilities. After all, Chinese embassies closely monitor U.S. relations with each nation, even as Chinese diplomats cooperate with their American peers on topics of mutual concern. Surely, the world’s greatest power should be able to figure out what China is doing while also dealing with Chinese diplomats on issues both Washington and Beijing care about, such as drugs, HIV, and nuclear weapons proliferation.

With a better understanding of China’s soft power, Washington can more systematically set clear limits — for itself, for China, and for other nations — and establish where it believes China’s soft power possibly threatens American interests. As we have seen, tThese U.S. interests include other nations’ territorial integrity; support for the United States in case of a conflict in regions like Southeast Asia; control of sea lanes and waterways; access to resources; formal alliances with foreign nations; and, perhaps most important, the promotion of democratization and good governance.

To protect these interests, the United States must focus on rebuilding its soft power. Otherwise, it will face even more situations where citizens of democratic nations put pressure on their leaders not to cooperate with the United States. Indeed, unlike during the Cold War, as the world has become more democratic, America’s core interest — its national security — increasingly relies on wooing foreign publics.

Joshua Kurlantzick is a visiting scholar in the Carnegie Endowment’s China Program, a special correspondent for The New Republic,and a senior correspondent for The American Prospect. This article is excerpted from his book Charm Offensive: How China’s Soft Power is Transforming the World (http://yalebooks.com/kurlantzick/) published in May 2007 by Yale University Press. Copyright©2007 by Yale University Press. Reprinted by permission.

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Charm Offensive: How China’s Soft Power Is Transforming the World

Charm Offensive: How China’s Soft Power Is Transforming the World

By Joshua Kurlantzick

August 2007

Joshua Kurlantzick is special correspondent for the New Republic and a visiting scholar at the Carnegie Endowment for International Peace. He has covered Southeast Asia and China as a correspondent for US News and World Report and The Economist, and his writings on Asia have appeared in Foreign Affairs, the New York Times Magazine, and many other publications. This essay is based on the BookTalk he gave at FPRI on July 25, at which copies of his new book, Charm Offensive (Yale University Press), were sold by Joseph Fox Bookshop, 1724 Sansom St., Philadelphia (www.foxbookshop.com), where the book is also available.

As a correspondent for The Economist in East Asia, based in Thailand, one of my reporting assignments was covering the first visit of a Chinese president, Jiang Zemin, to Cambodia in November 2000. This was the first such visit in thirty years–China and Cambodia have had a generally disastrous modern history. (China was the major foreign patron of the Khmer Rouge, and after the genocide in Cambodia there was much lingering anger at all sorts of actors, including China.)

Jiang received a strong public response in Cambodia, not only from local officials whose job it is to do nice things for visiting dignitaries, but from a huge number of schoolchildren who came to welcome him, from the local business community, and from thousands of local officials from all over the country who came to greet him. The Chinese government had done a great deal of preparatory work for this visit. They had invested a lot of money in language schools and cultural programs in Cambodia, built a kind of Peace Corps program there, gave out scholarships for children who would go on to study in China, and created a huge aid program. China had done similar things in other countries. But there was very little coverage of this in the global media, which tended to focus on high-level diplomacy. Accordingly, for the book project I went to China to speak with Chinese officials about how they see their power in the world emerging, particularly in developing parts of the world—Asia, Africa, Latin America—and then went to a number of countries in these regions to look at what China was doing on the ground in these areas. I also wanted to find out what if any results the Chinese had gotten from what we call soft power.

How China’s Soft Power Strategy Emerges

There are many definitions of soft power, but basically, when the Chinese government talks about its new soft power in the world, it means all power outside of the military sphere, including diplomacy, aid, investment, and economic tools.

One reason for this new relationship with the world is that China has experienced great domestic changes within the past fifteen years. By the 1990s, you saw the growth of a more confident, patriotic, even nationalistic public in China, that, seeing how China had grown significantly, began to talk about China’s playing a larger role in the world, a subject that was verboten fifteen years ago . The Chinese leadership also has become much more engaged with the world, with their own think tanks and universities to draw on to develop a more sophisticated foreign policy. These leaders have a more sophisticated view of the world, travel more, and are able to play a larger, more confident global role.

Here in the U.S. we often talk of how difficult it is for the government to change tack when something is perceived as a mistake. This was not the case in China, which in the mid-1990s was somewhat more adventurous militarily, launching missiles into the Taiwan Strait and creating disputes in Asia over islands that China and other countries have made claims to. Beijing recognized that this adventurism was really failing them and that they were alienating countries, some of whom were coming back and restoring their relations with the U.S.

Finally, there was the Asian financial crisis. The U.S. was widely criticized for responding slowly to that crisis, and you saw the beginning of the decline of America’s image in that part of the world. At the same time the Chinese government was fairly proactive. They resisted devaluing their currency and did a lot of good PR for this. Whatever this may have contributed to solving the crisis, they really hyped up that they were standing up for other countries in Asia and got a lot of goodwill from this decision. It was the first time they saw the benefits of promoting their economic activity in the world as a benefit to other nations.

Chinese Goals

China has new goals as it has become more engaged in the world. First, it desperately needs access to resources. It has a high level of industrial development, but is a vast consumer of resources. If China was to develop at the same pace as the U.S. and consume the same amount of resources, it would be on a scale unprecedented in the world. As a result, the Chinese government worries desperately where it is going to get oil and gas. The government doesn’t have the kind of legitimacy that comes from elections; its legitimacy comes from delivering economic growth. Every time that growth declines or if there’s an electricity blackout or the like, the government worries. The Chinese also have been overly dependent on too few oil and gas suppliers in the world. They now look to places they can get oil and gas where they won’t be in direct competition with the U.S. or Japan, places like Sudan and other countries where Western nations either can’t go because of sanctions or fear to go because the environment is dangerous.

Also, as Chinese companies start to become internationally active, they want to have places they can sell their goods. Again, they often want to go to places where there’s less immediate competition with the U.S — places where the environment is difficult for business.

As they get more influential, the Chinese want more partners in international organizations such as the UN, the WTO, etc.

Isolating Taiwan has been a Chinese goal since the U.S. and the rest of the world recognized China, and in the past few years, as China has become more proactive and internationally engaged, they have sought more to isolate Taiwan, which has informal links with many other parts of the world.

China’s strategy since the late 1990s shows recognition that in the U.S. its image will likely be mixed. Therefore, if it could change its perception in other parts of the world and reduce fears of its economic and military power in other parts of the world , it could play a much greater role on the global stage. This is actually quite sophisticated thinking.

Finally, the Chinese leadership to some degree desires in the long run that China be the regional leader in Asia. It feels that the U.S. is an unnatural actor in Asia, owing from the legacy of WWII, when the U.S. was the only country that had the power to play peacemaker role, to guarantee stability in the region. In the long term, they feel, that role would naturally be China’s.

Components of China’s Strategy

Since the late 1990s, China has shifted its foreign policy away from just worrying about the U.S., as it had been doing to a large extent since Kissinger and Zhou Enlai first met, to a much broader focus. The time they spend in Africa, Latin America, and other parts of the world is evidence that Chinese leaders are putting a much higher priority on those regions, recognizing that because China is also a developing nation, it possibly can build relations with some of these other parts of the world more effectively than the U.S. can. China’s leaders can suggest that their country stands on the side of these other countries on issues like trade and technology transfer. Whether or not this is actually true, as a rhetorical device it’s quite effective.

China sometimes focuses on countries where the U.S. bilateral relationship is faltering. An extreme case is Uzbekistan. About two years ago there was a significant crackdown on opposition in that country in which hundreds of people were brutally killed. The U.S. has had a closer relationship with Uzbekistan since 9/11, since it wanted bases there. We still have some bases there. But at the time of the crackdown the relationship was downgraded. Immediately after, the Chinese government invited the leader of Uzbekistan for a state visit in Beijing.

You see this at a lower level, too. A good example is the Philippines. The U.S. had long had a good relationship with that country. But in July 2004 the Philippines took its troops out of Iraq, probably in order to save a Filipino hostage. The Bush administration criticized them, and immediately after that the Chinese government announced an enormous aid package for the Philippines and aggressively stepped up its relationship. China recognizes that it can benefit when the U.S. slips. It seeks to convey that unlike the U.S., it does not interfere with other countries’ domestic affairs. It won’t tell any country–Sudan, Myanmar, or France–what to do. China has won some praise in some countries for this.

China has also become more pragmatic. It does not want to directly antagonize the U.S. or poke a finger in its eye; it wants to still have a good relationship with the U.S. but pursue these other strategies at the same time. For instance, China has a very good relationship with Venezuela, whose Hugo Chavez has made stridently anti-U.S. statements in many forums, including the UN. When he did the same in Beijing, China’s ambassador to Venezuela immediately told the local press that China did not want to associate itself with those statements.

Finally, within political systems, China is far less ideological than in the past. Forty years ago, China chose its relations within political systems based on ideology. There’s very little of that any more. After rebels in Nepal who took their philosophy directly from Chairman Mao began a war against the king, China’s government had to decide who they were going to support. They decided to support the king against the Maoist rebels.

Chinese Tools of Influence

With very little fanfare until this past year, China has developed into a significant aid donor in the world. China had given out aid in the 1950s and 1960s, in Mao’s time, but had retreated from this in recent years. Now, in some countries like the Philippines and Cambodia and parts of Africa, China has actually become a bigger donor than the U.S. or Japan. The money is spent in a pretty sophisticated way, not for building big sports stadiums, which is what China was famous for in the past, but for their own version of a Peace Corps. They spend money on local media and bring politicians and officials from other countries to China to trade. They do what we in America would call building people-to-people contacts, which was hard for the Chinese government to understand in the past.

This comes along with more skilled formal diplomacy. When I was first based in Thailand, you never saw the Chinese ambassador. He was invisible. China now has a new ambassador to Thailand who often appears on that country’s equivalent of the Larry King Show. He speaks fluent Thai, and he’s perfectly willing to talk about China’s relationship with Thailand, a dramatic change from ten years ago. You see this across the Chinese diplomatic corps. They’re much more open, much better in English and local languages, and more able to interact with other countries.

This comes along with much increased promotion of cultural and language studies. China has spent a lot of money promoting language studies, funding the first and second year of universities in 100-150 countries.[1] Particularly in poorer countries, they spend a lot of money promoting Chinese studies in primary schools. If you do well there, you can get a scholarship to go on to university in China. Fifteen years ago there were very few foreign students in China–a certain number of Americans who had come on exchange programs, as well as some African students left over from Mao’s time. Now you have 110,000-140,000 overseas students in China. (Some, of course, are students who probably would have liked to study in the U.S. but visas have become more difficult to obtain since 9/11.)

Particularly in Asia, China’s TV and print media also have become more accessible , and China has begun to invest in the world. On trips abroad, Chinese officials are savvy at suggesting the enormous potential of China’s future investment. Right now, China is a pretty small investor in the world. But they talk about huge targets that China’s going to bring in the future–$100 billion in new investment in Latin America, for example . It covers up that China is still just feeling its way in the world as an investor.

Finally, China has become a country that embraces trade agreements, which would shock U.S. trade officials of 15-20 years ago. China is now negotiating between 15-20 free trade agreements all over the world at the same time. If you talk to people in the U.S. who negotiate FTAs, they’d say that’s impossible, it takes a year to negotiate just one FTA. What the Chinese government does is negotiate an FTA that has very little substance in it, sign it, then work out the substance later. Which brings a lot of good will. Obviously in the U.S. context, one could not say to businesses or Congress, “We’re just going to sign a trade agreement, we’ll tell you what’s in it later.”

Matrices of Chinese Success

In a lot of parts of the world where there had been fear of China’s economic growth, particularly in the developing world, you see much less fear today. This is reflected in the media coverage – even, for instance, in the coverage of exports of tainted goods from China. The Southeast Asia media gives this much less coverage than the U.S. media does. This reflects their much higher degree of comfort with China as an economic partner. If you look at both global and local public opinion polls, China is viewed more favorably in a lot of countries as an actor on the global stage than the U.S. Chinese businesspeople and officials also are now getting access to a lot of countries that once they never would have.

Another sign of China’s success is that there’s a lot of interest in China’s model of development. Countries from Syria to Iran, from Vietnam to South Africa feel that China somehow has done something different from Western countries given its staggering growth rate. China probably doesn’t have a substantially different model of development, but the fact that it has developed to be so strong economically without loosening political control is an attractive idea to a leader of an authoritarian country. Vietnamese officials with whom I spoke for my book really want to copy what China has done.

In Asia, local ethnic Chinese historically were viewed as a prism for how to view relations with China. You see this in diaspora communities in many parts of the world. Ten years ago, when I first moved to Southeast Asia, Indonesians were burning down the homes of ethnic Chinese, looting their shops. Now you have an overwhelming celebration of Chinese culture. Indonesia’s president talks about it, and local ethnic Chinese there run for parliament.

China, in fact, has increased its allure to the point that it now plays a quite interesting role for other poor nations on its border. In some ways China is now viewed by some of these nations the way the U.S. might be viewed in Central America, or the EU in Moldova. China is a place you want to get to in order to live a better life. China is still a very poor country, but some of the poorer border countries view China as extremely wealthy. People in Myanmar, northern Thailand, and Laos want to marry visiting Chinese businesspeople, thinking it would get them into China. That’s actually not true, but it shows the dramatic change in China’s image.

As China has increased its access to resources, it’s been able to diversify its suppliers of oil and gas, so that its oil and gas take from Africa has nearly doubled over the past ten years.

Finally, China now has more peacekeepers serving under the UN flag than any member of the Permanent 5 on the Security Council except France. They serve in Africa, the Caribbean, with very little comment or concern, which reflects some degree of comfort with China’s presence in these places.

Why Soft Power Matters

China’s growing popularity broadens its public appeal and allows other countries to cooperate more closely with it, including on defense cooperation. One Filipino defense official put it to me this way: “Ten years ago in the Philippines, which is a vibrant democracy, with a very free press, if the Chinese had come to us and offered us closer defense training or an alliance, it would have been unthinkable, because it would have gotten out to the public and criticized. Now we know it’s essentially acceptable to the public, because China’s image has improved quite well, and so the Philippines has pushed forward with closer defense and economic cooperation with China.”

So public appeal does matter. Conversely, here in the U.S. we often thought it didn’t matter that much, but when it comes to the run-up to the war in Iraq, when you would like cooperation with Turkey, our long-time friend, but Turkey’s a democracy now, and the government of Turkey knows that U.S. public appeal is not so strong in Turkey, and we’re unable to get their support for an incursion from Turkey into northern Iraq. Rumsfeld himself said that was one of the major factors that hindered the war effort at first.

You see the same thing with economic cooperation–countries in Africa, Asia, other parts of the world becoming more comfortable in their relationship with China, partly because it’s easier for them to tolerate China’s public appeal. The U.S. still has a very close relationship with Saudi Arabia, but the Saudi government must necessarily be worried about the public appeal of having a relationship with the U.S. It’s not surprising that the Saudi government has formed close links to China and thought about building China its own strategic petroleum reserve.

As China has become more influential, opinion leaders from all over the world are visiting or studying there. One of the things the U.S. has always drawn upon is the generations of opinion leaders who had come to the U.S. for education, gone home and been the best ambassadors for the U.S. – Margaret Thatcher, Hamid Karzai, President Gloria Macapagal-Arroyo in the Philippines. China is increasingly going to play that role, and that will necessarily impact how other country leaders think of it.

Finally, as China becomes more acceptable economically, it’s going to be able to drive Asia as a more integrating trading region. There will be less fear of it and China can drive trade.

Questions

In the short term, China has wielded a significant amount of power. But in the long term it faces very substantial questions, as long as it remains the kind of country it is. First, is China really a model for other countries like Vietnam, Syria, Iran, South Africa? Yes, it’s developed and has remained an authoritarian state. But do they really have any different model of development?

Second, as China becomes a greater actor in the world, can it provide the kind of positive goods that the U.S. has provided for years – such as security and response to disasters? After the December 2004 tsunami hit Asia, though the U.S. was very unpopular in a number of the affected countries, those countries had to rely on the U.S. because no one else was able to provide that type of disaster relief. (Actually, the U.S. response to the tsunami did improve its public image among those countries.)

Third and most important, China has gone far with its idea that it, unlike the U.S., doesn’t interfere in other countries’ affairs. However, the domestic affairs in a lot of the countries with which China has relations are crying out for some kind of resolution. China has said it won’t interfere in Sudan, but many in Sudan would like some sort of interference, because right now the situation is untenable. The government in Myanmar has a close relationship with China. Many people, activists of a movement that was elected 15, 17 years ago, would like China to push the government to recognize them. Noninterference isn’t a policy that can exist in the world over the long term. China has begun to think about this. They’ve sent their own envoy to Sudan, they’ve thought about changing their relationship with Myanmar. They’re realizing that if you’re going to be a real global power, you can’t necessarily stick with this philosophy. But if they’re going to diverge from this philosophy, are they then just going to be like the U.S.? Or can they be somehow something different at the same time?

Notes

  1. See report on FPRI’s Oct. 4, 2006 “China and Free Trade” conference at www.fpri.org/research/asia. [back]

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China's soft power

China's soft power; Dwight H. Perkins reviews Charm Offensive: How China's Soft Power is Transforming the World.


by Perkins, Dwight H.

Harvard International Review • Fall, 2007 •
Much is made today of China's booming economy. US defense secretaries point to China's rising military power and question why China feels the need to build its military might so rapidly. US diplomats work with Chinese diplomats in an effort to defuse the North Korean nuclear crisis. These measures are covered extensively in the world press. In contrast, China's global involvement in a number of other areas tends to receive comparatively little attention from either the press or from US and European political leaders and scholars.

[ILLUSTRATION OMITTED]

Joshua Kurlantzick, who has reported from Asia for journals such as US News and World Report and The Economist, focuses his book, Charm Offensive, on a broad array of China's activities beyond its borders. The book emphasizes what Kurlantznick calls China's "soft power," but he uses the term differently from how Joseph Nye, the originator of the term, defines it. Nye uses the term to refer to the influence that nations exert beyond their borders through everything from their music and cinema to their role as models of freedom and democratic governance. On the other hand, economic and military power represent "hard power."

By contrast, Kurlantzick includes China's trade and overseas investment in his definition of soft power. Furthermore, while much of the United States' soft power comes from the activities of private individuals and media portrayals of the nature of US society, this book is focused on Chinese government activities in Asia, Africa, and Latin America. As Kurlantzick points out, the United States has squandered much of its soft power through its misguided policies in the Middle East and its penchant for unilateralism, while Chinese influence has steadily grown.

But for what purpose is China using its charm offensive? The days when China's interests beyond its borders focused on revolutionary movements against established governments are long gone. Nor in any immediate sense is China threatened by possible military attack from a superpower, as it was in the 1970s from the USSR or in the 1960s from US military involvement in Vietnam. China's response to those perceived threats was not to expand its diplomatic efforts and win friends around the world. Instead, China built a "people's militia" designed to fight a guerilla war on an unprecedented scale, and it invested vast sums to move industry into its mountainous interior where it might resist potential air attacks.

China's current charm offensive focuses on winning friends abroad to achieve several concrete objectives. Its top objective, after securing its territory from external attack, is to isolate Taiwan and eventually achieve the island's political reintegration with the Chinese mainland. China relies on a variety of economic and diplomatic efforts to isolate Taiwan. In Africa and Latin America, China holds out the prospects of investment, foreign aid, and its large domestic market. Taiwan also offers foreign aid and technical assistance to those who maintain diplomatic ties with it, but it has nothing comparable to the lure of the booming Chinese mainland market.

Beyond Taiwan, China's overseas objectives involve a major economic and diplomatic effort to secure natural resources like oil and copper for its booming economy. This involves everything from securing long-term contracts with resource suppliers to directly investing in and owning these suppliers. The diplomatic component, among other actions, involves befriending resource-rich nations that the United States and others see as pariahs. With its policy of "non-interference" in the domestic affairs of other nations, China counters efforts by the United States and others to isolate countries such as Sudan, Iran, and Zimbabwe. China also cultivates friendships with nations such as Venezuela that currently have unfriendly relations with the United States, but in doing so, it is careful not to appear to divert oil supplies from the US market. Relations with developing countries, as China's low-key policy toward Venezuela indicates, do not trump China's high priority needs to avoid military confrontation and keep the US market open to Chinese exports.

A third objective of the charm offensive is to gradually supplant the United States and Japan as major influences around China's borders. Kurlantzick rightly points out the importance of the Shanghai Cooperation Organization, through which China has greatly strengthened its relations with the Central Asian republics that were formerly part of the USSR. His discussion of Chinese influence in Burma, however, may be an even better example of China's success in establishing itself as the dominant player around its borders. The Burma policies of the United States and much of Europe, well-intentioned as they may be, have had the effect of removing most US and European influence from Burma for nearly two decades. As a result, China has had the field largely to itself. Because of China's massive business and diplomatic presence, Burma is not at all isolated in areas where it wants to be open, including the economy. However, it is isolated in precisely those areas where it is happy to eschew foreign contact, notably those of human rights and democratization.

Kurlantznick pays special attention to China's warm relations with Thailand. In its dealings with Thailand, according to Kurlantznick, one sees the full range of Chinese soft power. Thai legislators are regularly invited for tours of China, while the Confucius Institute (China's equivalent of the German Goethe-Institute or the US Information Agency) runs courses in Chinese for Thais. Moreover, overseas Chinese in Thailand--who compose most of the Thai business community and a large portion of the Bangkok population--are often courted to invest in China.

This book does a good job of describing the full range of China's efforts to win friends and gain influence overseas, as it does with Thailand. It is less effective, however, in putting these activities in a more complete context. Thailand, for example, is the one country in Southeast Asia where the ethnic Chinese minority is fully integrated into local society. Thailand also has a nearly two centuries-old policy of balancing foreign powers against each other. In the past, these powers were Britain and France, while today they are the United States and China. The charm offensive has helped China's cause, but, in my opinion, is not the main force behind the strengthening Thai-Chinese relationship.

Elsewhere in Southeast Asia, China's relationship with local Chinese minorities can be a mixed blessing. In Malaysia and Indonesia, politicians sometimes play on the Malay population's fear and dislike of the Chinese minority. Vietnam today has "friendly" relations with China. Yet its history, from a local point of view, is mostly a story of a thousand years of Chinese rule, followed by achieved independence and periodic wars to preserve it; the most recent war of that type was fought in 1979. Kurlantznick does not ignore this fact, but he often depicts the charm offensive in unqualified form and then presents the caveats much later.

Chinese advances abroad, however, are as much a product of US missteps as they are of Chinese accomplishments. For all of China's interests in acquiring natural resources and strengthening ties to its neighbors, dealing directly with the United States in a wide range of areas is China's top foreign policy priority. It is no accident that the current foreign minister and his predecessor had both first been ambassadors to the United States. As Kurlantzick points out, China's successes in weakening US positions around the world are often a direct result of mistakes by the US, ranging from unilateralism to its failure to even try to understand Middle Eastern societies on their own terms. I happen to agree with his generally very negative view of recent US foreign policy, but I doubt that non-partisan readers will find this a balanced critique. Yet his proposed changes to US foreign policy, which range from emphasizing multilateralism over unilateralism to rebuilding the US public diplomacy apparatus, are unlikely to be seen as controversial, except perhaps in neo-conservative circles.

While the points made in this book are not always argued as rigorously as one might hope, this is still the first book to describe in some depth the full range of China's efforts to gain friends and exert influence on the rest of the world. Its descriptions and analyses are readily accessible to the general reader with interest in foreign policy, and specialists will learn from it as well.

DWIGHT H. PERKINS is the Harold Hitchings Burbank Research Professor of Political Economy at Harvard University. Charm Offensive: How China's Soft Power is Transforming the World is by Joshua Kurlantznick (Yale University Press, 2007).

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Chinese Soft Power in Southeast Asia (Part II)

Chinese Soft Power in Southeast Asia (Part II)

By Josh Kurlantzick | Tuesday, July 03, 2007

As demonstrated by the worldwide diffusion of Chinese language, culture and policies, China has successfully marshaled its soft power — particularly among developing nations. But as Josh Kurlantzick writes, China must recognize that its growing clout may eventually engender hostility — especially in Southeast Asia.

In the short term, China has enjoyed significant success with its charm offensive. As one Southeast Asian diplomat notes, it is almost impossible now to hear any Southeast Asian leaders question China’s rise, a sharp contrast from ten years ago.

Indeed, polling data (from organizations like the Program on International Policy Attitudes) show publics in most nations now have a positive impression of China — and the country is usually viewed more positively than the United States.

Growing Chinese popularity

And these trends are not limited to the developing world. Even in Australia, a longtime U.S. ally, polls taken by

While Wen Jiabao was toasted during a visit in 2003 to Indonesia with frequent ovations, when President Bush visited Indonesia the same year, many Indonesian cultural and political leaders would not even meet with him.

the Lowy Institute, a respected research organization, suggest that the Australian public now views China as favorably as the United States.

The public sentiment is reflected in Chinese language and cultural studies, which have skyrocketed in popularity in the developing world. Between 2002 and 2004, the number of Cambodian students in China grew by nearly 20%, while the number of Indonesians rose nearly 50% and the number of Vietnamese rose nearly 90%.

Chinese businesspeople and policymakers, meanwhile, are increasingly given the type of welcome and access in developing nations that once was reserved for U.S. and Japanese elites.

Following China's policies

Sometimes they receive grander welcomes. While visiting Indonesia in 2003, Wen Jiabao was toasted with frequent ovations. In contrast, when President Bush visited Indonesia the same year, many Indonesian cultural and political leaders would not even meet with him.

In places like Algeria, Nigeria or Vietnam, meanwhile, local policymakers seem convinced that if they learn from China, they could duplicate China’s success in promoting development and combating poverty.

In Vietnam, for example, younger policy makers study the “Chinese model” of development — the model of slowly opening the economy while retaining control of the political system.

Correct use of power

What will China’s charm offensive mean in the long run?

Still a developing country itself, China could overplay its hand, making the kind of promises on aid and investment that it cannot fulfill.

There are signs China’s engagement with the world will prompt Beijing to wield its soft influence responsibly.

China has begun to mediate other nations’ disputes, as it did when Thailand and Cambodia nearly came to war in 2003. What’s more, some of China’s soft power hardly comes at the United States' expense.

The United States remains the major investor in the developing world, and it stands as the biggest source of foreign film, television, popular music and books around the globe.

Selfish attitude

But as China’s soft power grows, it could begin to encounter blowback against it. As China becomes more powerful, other nations will begin to see beyond its benign face to a more complicated reality.

They will realize that despite China’s promises of noninterference, when it comes to core interests, China — like any great power — will think of itself first.

China could create blowback against itself in other ways, too. Still a developing country itself, China could overplay its hand, making the kind of promises on aid and investment that it cannot fulfill.

China’s exporting of its own poor standards on labor issues, the environment and corporate governance could also foster blowback against Beijing.

Many problems

In one recent ranking of

Despite China’s promises of noninterference, when it comes to core interests China, like any great power, will think of itself first.

eighty nations’ adherence to corporate responsibility, China placed 66th, well below other developing economies like India.

And in the long run, if countries like Burma ever made the transition to freer governments, China could face a sizable backlash for its past support for their authoritarian rulers. “We know who stands behind the [Burmese] government,” one Burmese businessman told me last year. “We’ll remember.”

Editor's Note: This feature is adapted from Charm Offensive: How China's Soft Power Is Transforming the World by Josh Kurlantzick. Copyright 2007, Yale University Press. Reprinted with permission of the author.

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Chinese Soft Power in Southeast Asia (Part I)

Chinese Soft Power in Southeast Asia (Part I)

By Josh Kurlantzick | Monday, July 02, 2007

As demonstrated by the worldwide diffusion of Chinese language, culture and policies, China has successfully marshaled its soft power — particularly among developing nations. But as Josh Kurlantzick writes, China must recognize that its growing clout may eventually engender hostility — especially in Southeast Asia.

In November 2000, Jiang Zemin made his first visit to Cambodia. Arriving at the airport in Cambodia’s capital, the normally stiff Chinese leader offered a brief greeting to his Cambodian hosts. He was whisked into a motorcade that rumbled through the streets.

But on this morning, the cityscape resembled that of a papal visit to a devoutly Catholic nation. Thousands of Cambodian children lined the streets, waving tiny Chinese flags or small photographs of Jiang’s face.

Growing Chinese influence

The kids cheered for Jiang as his open car toured through the city,

In the mid-1990s, China had tried to signal Beijing’s rising military strength to the world by moves like sending ships to disputed reefs in the South China Sea in 1995. This backfired.

chanting like he was David Beckham, rather than an elderly politician with thick glasses and an oily, swept-back hairdo.

China had quietly laid the groundwork for Jiang’s visit. Beijing had become Cambodia’s major provider of foreign aid. Chinese language programs dominated downtown Phnom Penh, and one Chinese-language school alone drew 14,000 students.

Cambodian kids who once would have headed to France or the United States for higher education now looked to universities in Shanghai.

Exerting more power

Cambodia is hardly unique. Since the late 1990s, perceptions of China across the developing world have been transformed, and countries have come to view China as a partner, and even a friend.

This transformation is partly due to a growth in China’s soft power — the attractiveness of China’s culture, diplomacy, businesses and arts.

Bad move

Until the past decade, China exerted minimal soft power. But by the late 1990s, the Chinese leadership seems to have made

In the past decade, China has marshaled its soft power by portraying itself as the natural guardian of developing countries.

a decision that its hard power was still limited. In the mid-1990s, China had tried to signal Beijing’s rising military strength to the world by moves like sending ships to disputed reefs in the South China Sea in 1995.

This backfired. “China’s provocative military exercises … frightened much of Southeast Asia,” argues Rommel C. Banlaoi, a former analyst in the Philippines’ Department of National Defense.

In the past decade, then, China has marshaled its soft power — particularly by portraying itself as the natural guardian of developing countries.

An ideal portrayal

“It was very clear that at meetings of the Asia Pacific Economic Cooperation, that China was looking to be the spokesperson of the Third World countries,” said Federico Macaranas, a Filipino scholar.

Another aspect of China’s appeal to developing nations involves Beijing portraying China as a potential ideal. China utilizes a model of top-down control of development in which political reform is sidelined for economic reform.

Blatant advertisement

And on visits abroad, Chinese officials do not shy away from advertising the benefits of its socioeconomic model.

In addition to a free trade agreement with Southeast Asia, Beijing is negotiating more than fifteen free trade agreements with other nations, all at the same time.

“China … has created a miracle by feeding nearly 22% of the world’s population on less than 10% of the world’s arable land. The living standards of its 1.3 billion people are constantly improving,” noted one white paper issued by the Chinese government.

As China’s engagement with the developing world has become more sophisticated, its tools of soft power have become more sophisticated as well. In the past decade, China has upgraded its public diplomacy.

Upgrading public diplomacy

China’s public diplomacy efforts reinforce the concept of peaceful development — efforts like museum exhibits in Malaysia to celebrate the 600th anniversary of the voyages of Zheng He, a Chinese admiral who sailed across the world, encountering but never conquering other nations.

Beijing also has created a Chinese version of the Peace Corps to send young Chinese on long-term volunteer service projects to developing nations like Laos.

Better diplomatic corps

China has upgraded the newswire Xinhua and expanded its output in languages other than English and Chinese — and has expanded the international broadcasting of CCTV, Chinese television.

China’s public diplomacy efforts reinforce the concept of peaceful development.

As China has upgraded its public diplomacy, it also has invested in improving its diplomatic corps. Over the past fifteen years, the Chinese Ministry of Foreign Affairs has begun to retire older diplomats, replacing them with a young generation of envoys who speak better English and local languages.

One 2005 study suggested that one-half of the country’s 4,000 diplomats are less than thirty-five years old. Consequently, top Chinese diplomats in nations like Thailand now often have done multiple rotations in those countries before rising to the rank of ambassador, developing extensive local contacts.

Encouraging Chinese culture

Promotion of Chinese culture and language are major components of this public diplomacy. Beijing now funds Confucius Institutes, Chinese-language schools created at leading local universities.

Beijing also has tried to push instruction in Mandarin and in Chinese culture in overseas primary schools, partly by signing agreements with countries like Thailand to help integrate Chinese into public schools’ curricula.

Economic influences

China’s economic tools of soft power also have become more sophisticated.

The Chinese Ministry of Foreign Affairs has begun to retire older diplomats, replacing them with a young generation of envoys who speak better English and local languages.

According to a study of Chinese aid by Henry Yep of National Defense University in Washington, in 2003, China’s aid to the Philippines was roughly four times greater than U.S. aid to Manila, China’s aid to Laos was three times greater than U.S. aid — and China’s aid to Indonesia was nearly double U.S. aid.

And China’s embrace of free trade also bolsters its image. In addition to a free trade agreement with Southeast Asia, Beijing is negotiating more than fifteen free trade agreements with other nations, all at the same time.

Migrating Chinese

Finally, over the past decade the Chinese government has not only lifted restrictions on migration within China but also made it vastly easier for Chinese to leave the country for business and tourism.

Partly as a result, Chinese migration is transforming the demographic makeup of northern mainland Southeast Asia, from northern Burma to northern Vietnam. Because of outmigration, ethnic Chinese now dominate entire towns in places like Luang Namtha, in northern Laos.

Editor's Note: This feature is adapted from Charm Offensive: How China's Soft Power Is Transforming the World by Josh Kurlantzick. Copyright 2007, Yale University Press. Reprinted with permission of the author.

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The Bloated Singapore Government Bureaucracy

The Bloated Singapore Government Bureaucracy

Much talk has surfaced about the PAP’s decision to create yet another unnecessary cabinet post in the form of a Second Senior Minister position along with all its attendant office entourage, and multimillion dollar budget and Minister salary. This is just another step in the long existing aim of creating new departments and positions to feed the growing legions of PAP loyalist and faithful and to reward them for past service.

Here are some other examples:

- Health Promotion Board – Exactly why was this statutory board created in the first place? Its stated goals of health promotion, disease prevention, and patient education were all handled by MOH for decades. Individual hospitals had staff on hand to do all this. At the very most, this should have been a department within the MOH. Instead, it now has its own building, staff, and Board of Directors. An examination of members of its Board of Directors shows only 2 medical professionals, and the board is populated by PAP luminaries such as Oon Jin Teik (Singapore Sports Council), Lucas Chow (Mediacorp), Wen Khai Meng (Capitaland), etc. Yet another total waste of taxpayer money.

- Health Sciences Agency – See above for the same reasons.

- DSTA – This is indeed a huge mystery as to why this organization was even set up to begin with. Its stated goal is to acquire weapons systems for the SAF, like the Boeing F-15SG fighter plane. Is the govt. telling us that the RSAF is so incompetent that it cannot evaluate aircraft for itself, and that it needs an organization like the DSTA to do so? It’s also supposed to develop military infrastructure. Why? Is the SAF not able to do that itself? DSTA also provides engineering and related services in defence areas. Are they saying that SYT Engineering is not capable of doing this? In fact, for every stated mission of the DSTA, some organization is already doing the same mission. I know of no other country in the world that allows a civilian agency to evaluate, dictate, and purchase what weapons its military would use. The only other conclusion that I reach is that is yet another PAP feeding trough.

- Workforce development Agency – This to me should be just another Ministry of Labour department. Helping people to get job, upgrading their skills, etc. is what the Ministry of Labour is supposed to do anyway. This should be under the umbrella of the MOL and should be eliminated. It’s just duplicating infrastructure and overlapping with the MOL’s aims and objectives.

These are just some of the glaring examples that I see. There are many more. The PAP always harps about how Singapore should be more competitive. Yet, by having in placed this bloated bureaucracy, they are sending the wrong message…

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Dr Allan Ooi’s case: MINDEF’s second letter still did not answer key questions

Dr Allan Ooi’s case: MINDEF’s second letter still did not answer key questions

In a report published on Straits Times titled “MINDEF clarifies SAF doctor’s scholarship bond“, the ministry said it would have preferred to keep such exchanges private out of respect for Capt (Dr) Ooi and his family. However, it said an earlier letter by the family had raised ’several issues’, and it was necessary to clarify them. (read article here)

It appeared that MINDEF is insinuating that the open letter sent to the media by the Ooi family was inappropriate. I believed that the family of Dr Allan Ooi would have preferred to keep such exchanges private too. If MINDEF has been open and upfront with them in the first place, would they resort to such a desperate measure?

MINDEF said a board of inquiry was convened on 11 March 2009 and it concluded that matters related to Capt (Dr) Ooi’s service ‘were managed appropriately’. I am surprised at the swift conclusion reached by the board of inquiry.

May I ask MINDEF the following questions:

1. Who make up the board of inquiry?

2. How long did they take to reach the conclusion?

3. What was the conclusion?

4. How were the matters relating to Dr Ooi’s service “managed appropriately”?

5. Was the family informed of the result of the inquiry.

The impression given by MINDEF is that the board of inquiry was staffed by its own officers whose aim is to clear Allan’s superiors of any wrongdoings rather than to investigate the matter thoroughly.

Straits Times’ title is both misleading and untrue. Nowhere did MINDEF clarify Allan’s scholarship bond at all other than to justify the actions taken in response to Allan’s request to quit SAF.

The crux of the entire matter is this: Allan wrote in to SAF expressing his intention to quit and MINDEF has persistently refused to answer the key question as to why Allan was not allowed to break his bond?

What constitutes “early release” under MINDEF’s operating guidelines? If Allan was allowed to break his bond, he would have to serve out one year of his mandatory national service as a SAF medical officer after which he would be allowed to join the civil sector to complete his remaining 3 years of bond.

There are many interpretations of “early release” and MINDEF should come clean with the public on its definition instead of hiding behind vague military jargons to evade public scrutiny. Does “early release” mean the officer can only allowed to leave SAF after a period of time? If so, how long is the duration - 2, 3, 5 or 10 years?

For an officer who is determined to quit SAF, is it fair to coerce him to wait for his “early release”? All MINDEF needs to do is to tell us truthfully if Allan was allowed to break his bond.

What transpired between Allan and his superiors? Was he told in no uncertain terms that he is not allowed to break his bond? What is the rationale of offering him an alternative posting within SAF when he had no desire to remain with the organization? These relevant and important questions can only be answered with an independent panel vested with the power to haul up the officers involved for questioning.

MINDEF should stop obsfucating the issue by using a moral compass to denounce Allan’s intention to break his bond. While it is true that Allan has the moral obligation to complete his bond, he had the means to compensate MINDEF financially for the resources they had spent on him.

On the other hand, MINDEF also owes a moral obligation to its scholarship holders to ensure they have a fruitful and rewarding career in the SAF. Why continue to keep a scholar whose heart is no longer with the organization? Is it fair for taxpayers to continue paying the salary of a soldier who is dying to get out of the army?

MINDEF has also failed to disclose the original terms of Allan’s contract with the SAF: is there a clause in the bond that he is NOT PERMITTED to break his bond at any time in the course of his service?

An unbreakable bond is tantamount to modern slavery. If there were no such clause initially, why should Allan be refused his basic human right to leave his current employment in search of a better one?

Until MINDEF manage to answer these questions satisfactorily, Allan’s scholarship bond will never be clarified. MINDEF should have heeded the family’s wishes to allow an independent panel to be set up to investigate the matter a long time ago. Its reluctance to do so will only lead to more baseless speculations about its role in Allan’s fateful decision to go AWOL and turning this sorry episode into a protracted fracas.

If MINDEF truly have any respect for Allan and his family, it should address their concerns immediately instead of continuing to play a cat-and-mouse game with them. There can be no closure without answers.

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Concerned about procedures for reporting food poisoning cases

Concerned about procedures for reporting food poisoning cases

Thursday, 9 April 2009

Gerald Giam

I am very concerned over what seems to be a lack of efficient procedures in place to avert mass public health tragedies like the recent Geylang Serai rojak stall food poisoning incident.

Three lives have been lost (including one unborn baby), and 146 people have been affected by the food contamination, 48 of whom were hospitalised.

CNA reported that stall patrons started to fall sick between April 2nd (Thu) and 4th (Sat) with food poisoning symptoms such as severe abdominal cramps, vomiting, and diarrhoea. However it was only at 8 am on Sat April 4th that officials from the National Environment Agency (NEA) arrived to shut down the stall.

In another CNA report, a 44-year old woman said she and her mother stopped at the rojak stall for lunch on Friday, and less than six hours later, both women were vomiting and had stomach cramps so severe an ambulance rushed them to Changi General Hospital (CGH). They said it was “mayhem” there and that “there was a huge crowd, many of them holding their stomachs and appearing in pain… I asked around whether they also ate rojak from that stall. They all said yes.”

The woman who miscarried had eaten at the stall on Friday afternoon. She said the rojak smelled unusual, but carried on eating it.

Why did it take so long for NEA to shut down the stall? If people started to fall sick on Thursday, why was the stall allowed to remain open for the entire Friday?

The NEA graded the stall’s hygiene with a “C” grade back in December. While I do not expect NEA officers to check on the stall every day, given the barely passing grade the stall achieved, I feel it deserved tighter scrutiny from health officials.

One 54-year old housewife said that “environment in the centre (Geylang Serai temporary market) is not very clean. Sometimes there is rubbish around and it is very near to the wet market.”

More importantly, surely there should have been a more efficient mechanism to alert NEA of a stall selling contaminated food. Did the doctors that the victims visited on Thursday report the food poisoning cases to NEA immediately after attending to their patients? Is there even a mechanism to do so?

This serves as a lesson that all cases of food poisoning should be taken very seriously. Victims of food poisoning will almost always know the source of their infection. If doctors are required by law to inform the Ministry of Health when they diagnose infectious diseases like SARS, they should also be required to report any cases of food poisoning to the NEA immediately.

The moment a report is made, NEA officers should be activated immediately to investigate the stall or restaurant, and shut it down if necessary to prevent further cases of poisoning. While this could be quite a strain on resources, it is a necessary investment in the interest of public health.

At the same time, there should be an efficient way for consumers to report contaminated food. Not all food poisoning victims visit doctors, and many would detect bad food from its smell before consuming it. There should be a website or hotline for people to report such incidences easily. A general number or website feedback form does not really suffice, given the urgency in which such reports must be acted upon.

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Gold ain't what it was in Goldfinger

Gold ain't what it was in Goldfinger

Gold is no longer what it used to be when Ian Fleming wrote Goldfinger or Sean Connery starred in the film with Honor Blackman playing Pussy Galore in 1964.

Consider the plot: Goldfinger plans to steal the gold in Fort Knox.

What's at stake is the entire world economy.

For Fort Knox contains the American gold pile that underwrites the global monetary system.

That was really true back then.

The price of gold was fixed at $35 an ounce.

The US government was committed to converting dollars into gold at that price. That was part of the Bretton Woods international monetary system introduced at the end of the Second World War. There were fixed currency exchange rates pegged to the dollar and gold.

Goldfinger's plan to steal the gold from Fort Knox threatened to wreck the international monetary system. Of course, he was in league with the nefarious SMERSH, the Soviet counterintelligence agency.

Now the Russians along with the Chinese want the dollar replaced with a new global reserve currency.

But that's another story – for the dollar is no longer what it used to be, nor is the gold.

The Nixon revolution

The man who changed it all – President Richard Nixon.

He is now remembered for the Watergate scandal and pingpong diplomacy bringing America and China together.

But Nixon also changed the Bretton Woods international monetary system in 1971. He "decoupled" the dollar from the gold, abandoning the commitment to convert gold into dollars at $35 an ounce.

That affected the entire monetary system.

Why did Nixon do it?

Because US gold reserves were down and America was on the verge of running its first trade deficit in more than 75 years, says Wikipedia. The US dollar was overpriced and other currencies such as the Japanese yen undervalued. The fixed exchange rate did not reflect the strength of currencies such as Japan's which had flourished on trade with America.

The former Economist editor Bill Emmott describes the background – the Vietnam war, political friction between America and Japan on trade matters – that led to the change and its effect on Japan.

Bill Emmott writes in Rivals: How The Power Struggle Between China, India and Japan Will Shape Our Next Decade, published last year:

In 1970 Japan's investment rate was at its peak at 40% of GDP; its rapid industrial growth was causing severe problems of pollution; its current account surplus grew to more than 2% of GDP, and its currency came to look especially undervalued. That surplus sounds small by today's Chinese standards. But at the time, exchange rates were fixed against the dollar and gold under the system agreed at Bretton Woods at the end of the Second World War, and capital did not move as freely as it does now, making surpluses and deficits as large as China's and America's of 2000-2007 simply impossible. But, in 1968-71, Japan's surplus and America's deficit still caused a considerable amount of political friction, as America struggled to finance its war in Vietnam.

It was in 1971 that Japan's enjoyment of a fixed and undervalued yen came to a sudden end when President Richard Nixon unilaterally abandoned the Bretton Woods system and forced other countries to negotiate revaluations of their exchange rates with the dollar. That shock for Japan was followed by a second blow, the sharp hike in oil prices thanks to the Arab oil embargo in 1973, which also caused inflation in Japan. The combination of those two shocks forced a change: investment gradually came to play a smaller part in the Japanese economy, industry moved upmarket and out of low-tech goods, and a sizeable public deficit was used to support the economy during the transition.

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