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It is back to the
drawing board for the Treasury's proposed $700 billion rescue plan for the
US financial industry. In the meantime stock markets are floundering and
credit markets drying up.
After more than a week of intensive negotiations the bailout bill failed in
a vote in the House early Monday afternoon, Sept. 29. Washington, and the
financial markets, were stunned.
The vote started at 1:30 p.m. and was supposed to have been completed
quickly. And, given the bipartisan support the reworked measure got over the
weekend—with Treasury Secretary Henry Paulson and President George W. Bush
winning the backing of key Democrats like Speaker of the House Nancy Pelosi
and the likely support of Presidential candidates Barack Obama and John
McCain—the House leadership was counting on a positive outcome. But by a
little after 2 p.m., only 205 House members had backed the bill, vs. 228
against. The bill needed 218 to pass.
Most of the shortfall came from the President's own party. This is
remarkable. Only 66 House Republicans voted for the bill, with 132 against.
Congressional leaders predicted they needed at least 80 supporters from the
GOP and at one point hoped to get 100. Among Democrats, 141 backed the bill
and 94 voted against. The legislation, as has been obvious since Secretary
Paulson and Federal Reserve Chairman Ben Bernanke first told congressional
leaders help was needed 11 days ago, lacked support from a rebellious band
of conservative Republicans who are dead set against the plan and the notion
of the government taking such an extensive role in fixing the private
sector's woes.
It is now far from clear how the bill can be revived. Lobbyists from both
sides of the aisle were equally stunned. There is no Plan B. Congressional
leaders held a series of meetings to try to find a way forward, in hopes of
getting a revised deal passed by week's end. But Conservative Republicans,
who see the costly bailout as an affront to their free-market values, remain
the most strongly opposed to it.
The political gamble is significant. Are the Republicans
thinking that they are appealing to Main Street America by opposing
government intervention and a bail out? It is telling that so few
Republicans supported the Bill. McCain found himself in a particularly
awkward position after bragging about his role in building a coalition
behind the rescue package yesterday morning, hours before it was defeated.
There was np coalition.
But McCain and his top aides then accused Obama and the Democratic
leadership in Congress of orchestrating the bill's failure to embarrass
McCain, even though many more House Republicans voted "no" than did
Democrats.
Here is the
problem: Americans are worried, they want Congress to do something, but they
don't trust the Bush Administration plan. And while they're unhappy with
everyone involved, they're more unhappy with Republicans.
Bad news for
McCain; bad news for the economy. Bad news for stockholders. And for anyone
who still though America plays a leading role in the world economy - think
again.
The contagion
spreads
29 September
2008
During the course
of Sunday and Monday European governments stepped up their support for the
continent's beleaguered banking system bailing out four banks, while the
Russian government pledged $50.0 billion to domestic corporations to pay off
foreign debts.
But the steps seem
unlikely to relieve the pressure on the sector, as the seizing up of the
inter-bank lending market showed little sign of slack.
And to add to the
global woes the House of Representatives in the USA failed to approve the
US$700 bail-out package.
Late on Sunday the governments of Luxembourg, the Netherlands and Belgium
said they were pooling $16.3 billion Euros to rescue Fortis while the
British government stepped in to nationalize Bradford & Bingley, a mortgage
lender for landlords that relied heavily on borrowing from other banks to
fund its activities. The German government extended a 35.0 billion euro
($51.0 billion) credit facility for lender Hypo Real Estate (other-otc:
HREHF - news - people ), while the Icelandic government bought a 75.0% stake
in the country's third-largest bank, Glitnir.
This was the same
day that Citi Group acquired the banking assets of Wachovia in the USA.
There are potentially other casualties. We just don’t know who they are.
The focus for European banks has shifted from their exposure to toxic assets
linked to the American mortgage market to one of funding as money markets
have paralyzed as banks have chosen to hoard cash rather than lend to each
other.
The Bank of England pumped 40.0 billion pounds ($72.1 billion) of
three-month funds into the system, while the European Central Bank lent
banks 120.0 billion euros ($172.9 billion) of 38-day funds in an auction.
However their actions did little to quell fears. The three-month euro London
interbank offered rate rose to 5.22250%, its highest rate ever, while for
three-month dollar loans that rate rose to 3.88% from 3.76%.
Perhaps the most spectacular action came from Russia where Prime Minister
Vladimir Putin said that $50.0 billion would be made available to Russian
companies to help them payoff foreign creditors. However here too the move
did little to allay fears, with Russia's dollar denominated RTS index
falling 7.1%.
A rough day !
Tuesday is
first day of Eid Al Fitr in UAE
29 September 2008
Tuesday is the first day of Eid Al Fitr, the UAE Moon Sighting Committee
announced on Monday.
The committee, headed by Mohammad Bin Nakhira Al Daheri, Minister of
Justice, was quoted by WAM as saying that after a number of legitimate
measures, as well as several contacts with neighbouring countries, it was
established that Tuesday is the first day of Shawwal and hence the first day
of Eid Al Fitr in the UAE.
Al Daheri and the committee members extended greetings to President His
Highness Shaikh Khalifa Bin Zayed Al Nahyan; His Highness Shaikh Mohammad
Bin Rashid Al Maktoum. Vice-President and Prime Minister of the UAE and
Ruler of Dubai, Their Highnesses Members of the Supreme Council and Rulers
of the Emirates, and other leaders.
Dubai's stinking beaches
29 September
2008
You will not see
this in the tourist marketing material for Dubai but the Dubai beaches are
in crisis. But it is at least making the local newspapers.
The illegal
dumping of sewage into the sea off Dubai has caused a massive, smelly and
dangerous pollution problem. Dubai has been known for its clean beaches and
for the five star hotels along the UAE’s coastline.
Sewage truck drivers, frustrated by long waits and costs to dump their
loads, are illegally pumping the waste on the beaches or into storm drains
that empty onto the beaches. The extent of the pollution would cause serious
health and safety problems.
The Dubai Municipality has responded swiftly to the issue. It has taken
comprehensive action by drawing upon laws and fines already in place and
increasing its surveillance. The first phase of the new, 300,000 cubic
metre Jebel Ali Sewage Treatment Plant will also help deal with the problem
as it will ease pressure on the overloaded Al Aweer plant.
Contributing to
the problem are made made breakwaters and the new land reclamations of the
Palms and the World. These new land blocks reduce the tidal currents which
would otherwise help wash the beaches clean. Stagnating seawater only makes
the sewage problem worse.
Emirates such as Fujairah also face the problem of illegal dumping of oil
and bilge water damaging coastal environment and affecting tourism.
UA lays off
Thai staff
29 September 2008
All 120 Thai cabin crew on United Airlines (UA) flights based
in Bangkok have been replaced by US-recruited (unionised) staff as part of
major cutbacks due to continuing high fuel prices and a slump in demand.
Another 100 crew recruited in Singapore have also been laid off as the US
airline moves to close its flight attendant bases in Bangkok and Singapore
at the end of next month.
The redundancies reflect a contractual obligation that UA made to its
powerful union in the US that foreign nationals based in Asia would be
discharged before the airline thins the ranks of its US-based workers.
UA's laid-off Thai staff, some of whom have worked for the airline for more
than 20 years and are in their late forties, seem to have accepted
redundancy with regret but no complaints. The airline gave them two years of
free UA flights on top of the legally required severance payments.
Thai staff had been informed about the possible lay-off about six months in
advance as the airline's management negotiated with the UA union.
UA flight attendants recruited in Bangkok and Singapore were reportedly paid
much less and enjoyed fewer benefits than their US-recruited colleagues.
Thai attendants will now be replaced by US-recruited UA staff - a mix of
nationalities including Americans, Japanese and a few Thais - on flights to
Tokyo, Bangkok, Hong Kong and Seoul.
UA currently operates Boeing 777 jetliners, which can carry about 270
passengers, on its daily flights between Bangkok and Tokyo. By the end of
next month it will replace the jetliners on this route with bigger Boeing
747-400s, with about 340 seats, as a result of revised aircraft utilisation
plans and stronger winter-season travel demand.
There will be no change in flight frequency from Bangkok to Tokyo, where
many passengers connect with UA flights to six US cities - Honolulu, Los
Angeles, Washington DC, San Francisco, Seattle and Chicago.
Electing dead officials may be the answer
27 September
20008
The spirit of
democracy may not be present at Government House in Bangkok, but it was
demonstrated by villagers at Ban Nong Ta Ruang in Phitsanulok.
They voted on Tuesday for incumbent Banjong Wangchao-na, 47, to be the
village headman in a local election - even though he was dead. This could be
perfect for political non interference!
The dead candidate won by 111 votes to 88 in the race, which saw a high
turnout of 68% of 291 eligible voters.
The former village headman died of heart failure on Aug 26. But 40
supporters of his could not let him rest in peace and on Monday petitioned
provincial governor Somboon Sriwattanawat to keep him in the competition.
The bewildered governor had to consult the Provincial Administration
Department for help. The department decided the elections could go ahead as
planned but in case Banjong got elected, a by-election would follow.
Without Banjong, the other candidate, Sudjai Taijan, 44, could have enjoyed
a one-candidate race.
Many voters, anxious for the results, hung around for the vote count in the
afternoon. The provincial office was informed of the results. A new round of
candidate registration will be held in the near future.
Should we laugh
or cry?
26 September
2008
I have been
ignoring Thai politics over the last week; and it is time to bring my dear
reader up to date on some of the bizarre goings on in the new government and
in the campaign to become mayor of Bangkok.
Let's start
with the election for Governor of Bangkok
A publicity stunt
by candidate Ms. Leena Jangjanya went terribly wrong when a campaign staff
drowned as they bathed in a canal to highlight the plight of residents who
have no access to clean water.
Thing is: He was crying for help. But staff thought he was putting up a show
for the TV cameras. According to Ms. Jangjanya the 32-year-old Thirasak
Sitanont drowned as she and other staff were showing journalists the rashes
they got from washing in the filthy water.
She told Reuters: “One of my staff saw him waving and crying for help, but
we thought he was pretending and he was far away from us, posing for two TV
crews.
Ms.Jangjanya has herself fallen conveniently into another canal in front of
the TV cameras on Wednesday as she was trying to show her support for
riverboat commuters. to continue to campaign after his death, I would be no
better than an animal," she said.
To continue on
the campaign for governor of Bangkok - there are some interesting new
proposals from the 16 candidates that go well beyond the usual suspects such
as increasing green areas, cleaning up canals, or putting more bins on
Bangkok streets.
How about:
Nappies for dogs, closed-circuit cameras installed at massage parlours to
keep a record of the married men who visit and the setting up of a dedicated
cockroach-busting unit.
"To keep public areas clean from dog mess, dog owners will be asked to put
nappies on their pets," said independent candidate Kriangsak Charoenwongsak,
who enters the race with the slogan "Dr Dan Can Do". He is also promising to
free Bangkok of cockroaches and rats.
Leena Jangjanja vowed to strengthen married life by installing
closed-circuit cameras at the entrances of massage parlours across Bangkok.
"If I become city governor, I will help you keep track of your husband. He
can no longer escape you to enjoy visiting such places," Ms Jangjanya said.
The klong water must have affected her!
Meanwhile in other news three members of the new Cabinet of Prime
Minister Somchai on Friday attended their trial in the two and three-digit
lottery case at the Supreme Court’s Criminal Division for Holders of
Political Office.
The three were Deputy Prime Minister Chavalit Yongchaiyudh, Labour Minister
Uraiwan Thienthong and Industry Minister Pracha Promnok. They turned up at
the court at 10 am. This could ne a new record. The new government was sworn
in officially on Thursday and within 24 hours three of the team are in
a courtroom as defendants.
And for anyone who wants to build a potash mine in Thailand; the Industry
Minister is a policeman. Police General Pracha Promnok.
Bartlet's
advice to Barack
26 September
2008
“West Wing”
creator Aaron Sorkin wrote this advice for Barack Obama as part of a
fictional meeting between Obama and President Jeb Bartlet:
BARTLET: "GET
ANGRIER! Call them liars, because that’s what they are. Sarah Palin didn’t
say “thanks but no thanks” to the Bridge to Nowhere. She just said “Thanks.”
You were raised by a single mother on food stamps — where does a guy with
eight houses who was legacied into Annapolis get off calling you an elitist?
And by the way, if you do nothing else, take that word back. Elite is a good
word, it means well above average. I’d ask them what their problem is with
excellence.
While you’re at
it, I want the word “patriot” back. McCain can say that the transcendent
issue of our time is the spread of Islamic fanaticism or he can choose a
running mate who doesn’t know the Bush doctrine from the Monroe Doctrine,
but he can’t do both at the same time and call it patriotic. They have to
lie — the truth isn’t their friend right now. Get angry.
Mock them
mercilessly; they’ve earned it. McCain decried agents of intolerance, then
chose a running mate who had to ask if she was allowed to ban books from a
public library.
It’s not bad
enough she thinks the planet Earth was created in six days 6,000 years ago
complete with a man, a woman and a talking snake, she wants schools to teach
the rest of our kids to deny geology, anthropology, archaeology and common
sense too? It’s not bad enough she’s forcing her own daughter into a
loveless marriage to a teenage hood, she wants the rest of us to guide our
daughters in that direction too?
It’s not enough
that a woman shouldn’t have the right to choose, it should be the law of the
land that she has to carry and deliver her rapist’s baby too? I don’t know
whether or not Governor Palin has the tenacity of a pit bull, but I know for
sure she’s got the qualifications of one. And you’re worried about seeming
angry? You could eat their lunch, make them cry and tell their mamas about
it and God himself would call it restrained. There are times when you are
simply required to be impolite. There are times when condescension is called
for!"
Please, please,
please - on November 4th - vote for Barack Obama. There is no credible
alternative.
Opening Up the
airways
26 September
2008
A free-for-all is
about to kick in on the lucrative Singapore-Kuala Lumpur route, with budget
airlines Tiger Airways and Jetstar Asia significantly bumping up flights
between the two cities from Dec. 1.
Jetstar Asia has
announced that from Dec-08, they will be increasing their services between
Singapore and Kuala Lumpur from 7 times weekly to 19 times weekly.
Tiger Airways will
add 400% more capacity on the Singapore–Kuala Lumpur route, which means that
the currently daily service will turn into a five-daily service.
The extra capacity will be spread throughout the day, from early in the
morning to late at night. Departing Singapore the flights leave at 06:10,
13:10, 14:30, 17:10 and 20:50.
The Singapore and Kuala Lumpur routes used to be one of the most heavily
regulated. Historically Singapore to Kuala Lumpur has only been serviced by
legacy carriers Singapore Airlines and Malaysian Airlines. But as of the 1st
of February this year, budget airlines have been granted limited rights to
start operations.
From liberalisation, Tiger Airways, Jetstar Asia and AirAsia have all raced
for a market share on this lucrative route.
Tiger Airways
first flight was to Bangkok on 15 September 2004; the airline is now
carrying over 6 million passengers across the group and importantly trading
profitably.
China's Capricorn One
25 September
2008
The question is
whether the Sinonauts are already in space. Because in a sublime error
China’s state news agency earlier today published an "in space" conversation
among the trio even before they left Earth.
The foul-up by the Xinhua news agency involved an article posted on its
website well before the launch this evening of the Shenzhou VII space craft
that described the vessel in orbit and quoted entire conversations from the
crew.
The story, titled “Sleepless Night on the Pacific, Sidelights on the
Observation and Control of the 30th Lap of the Shenzhou 7 Spaceship”, had
disappeared by the end of the day and was described as a technical error.
But it was great evidence of China’s frequent manipulation of the media and
the readiness of Communist Party officials and propaganda mandarins to
resort to sleight of hand, if not fakes, to ensure perfection in the public
image.
With a burst of flame and smoke, China really did send into orbit this
evening the riskiest mission so far of its fledgling space programme, seeing
off three astronauts on a voyage whose highlight will be the country’s first
space walk.
President Hu Jintao was on hand at the desert launch centre with some
parting words of encouragement for the three air force colonels who were
blasted off at 9.10pm (1310 GMT) on China’s third manned space venture.
Standing in front of the three astronauts – or taikonauts as they are known
in China from the Mandarin word for space – President Hu said: “This will be
a major step forward for our country’s aerospace technology. You can
certainly fulfil this glorious and sacred task. The motherland and its
people await your triumphant return."
The space walk, essential if China is to fulfil its extra-terrestrial
ambition to build a permanent space laboratory, is expected to take place on
Friday or Saturday and to be carried out by the team leader, 41-year-old
Zhai Zhigang. But the Xinhua story, dated September 27, was able to report
conversations that Mr Zhai and his two fellow astronauts would hold in two
days.
Whether the
reported conversation will actually take place, and whether it will be
reported again verbatim by Xinhua, the world may now have to wait until
Saturday to find out.
The spacecraft is due to land somewhere on the grasslands of Inner Mongolia
later that day.
Singapore leaders enjoy predictable win
25 September
2008
The Singapore High
Court has ruled that the publisher and editor of the Far Eastern Economic
Review (Feer) defamed Minister Mentor Lee Kuan Yew and Prime Minister Lee
Hsien Loong in a July 2006 article in the magazine.
The Lees were awarded damages, which will be assessed at a later date.
Review Publishing and Mr Hugo Restall are also restrained from publishing,
selling or disseminating the libellous allegations in Singapore.
There was no trial. Instead the rulling, released this week by Justice Woo
Bih Li, four months after he heard an application by the Lees' lawyers for a
summary judgment. This is an application made for a court ruling without the
need for the case to go to trial because the applicants are of the view that
the defence arguments are baseless.
The lawyers for the Lees said, among other things, that the article was
calculated to disparage both leaders. They argued that it suggested that
they were corrupt and unfit for office, and would sue and suppress those who
question them as the questions would expose their corruption.
In its defence, the Hong Kong-based magazine argued that the article, titled
"Singapore's 'Martyr', Chee Soon Juan," was based on facts and fair
comment, concerned matters of public interest and was a neutral report.
But Justice Woo said Feer's defences failed or did not apply in Singapore.
Public interest and what is and is not fair comment have always had a rather
different interpretation in Singapore whenever there is a perceived
criticism of the leadersip.
In a 234-paragraph written judgment, he said there was no doubt that the
defamatory words in the article referred to both the Lees.
Meanwhile The Wall
Street Journal Asia, another Dow Jones publication, and two of its senior
editors are defendants in an application for contempt proceedings initiated
this month by Singapore's attorney general. The action is related to two
editorials and a letter to the editor written by Mr. Chee. A hearing in the
case has been set for Nov. 3-7.
Singapore's political leaders have won damages against a number of foreign
news publications for defamation. Indeed, it is unlikely that they have ever
lost a case.....
Michael Palin
for President
21 September
2008
Did John McCain pick the wrong Palin. OK, the British passport might be a
problem, but he is intelligent, witty, well-travelled, debonair and has a
strong support base. So why not vote for Michael Palin for US president?
Sure, Sarah Palin has generated a lot of headlines for the Republicans, and
put some fizz in John McCain's campaign, but has he picked the wrong Palin?
Hundreds of thousands of people have been watching a YouTube video pushing
the case for the former Python. As the Sunday Times notes, you can interpret
Palin's policies from his Python ouvre, such as a stance on the environment:
"I'm a lumberjack and I'm okay."
See below:
Looking after
no 1.
21 September
2008
I don’t know how
or where this financial meltdown will end, and neither do any of the
experts.
The Bush solution
is a US$700 billion buyout with tax payers money. We don't have that luxury
so what should we do? The temptation is to either make drastic changes in
your financial life or do nothing and hope that the impact is not too
severe.
So here’s another idea, a middle path of sorts. Consider a few modest but
concrete things you can do that could reduce your exposure to four of the
big areas of risk — investments, job security, your mortgage and insurance —
that have been front and center this week.
Some of these suggestions may have more impact for you than others, but they
all can help you feel as if you’ve taken back some measure of control.
Investments
Before you do anything with your portfolio, ask yourself this: Do you still
believe in capitalism?
Several financial planners I spoke with felt the need to stop and reaffirm
the fact that companies will still need to raise money from investors — any
quasi-Socialist, short-term federal government intervention aside.
Index funds allow investment across multiple companies that seek to generate
earnings and pay dividends. This is just a part of protecting yourself
against the biggest investment risk of all, outliving your savings. Unless
you’re saving a huge chunk of your income in cash, you’ll need consistent
exposure to more risky investments like stocks to produce a suitable
retirement balance. Keep your stock allocation lower if you must for a few
months to sleep at night, but don’t get rid of it altogether.
Most people get back into stocks once you explain this. A bigger challenge
now is the one facing those who are in or close to retirement and whose
portfolios have declined in the last year.
Even if you can’t
bring yourself to make big changes to your portfolio, spending just a bit
less money in retirement may make a huge difference. Just look for the small
changes in retirees’ cash burn rate will affect them far greater than what
the market will do today. Spending on grandchildren is often a huge item for
retirees. If you can’t bring yourself to cut back there, consider the cost
of eating out. He says he is often surprised by the amount people spend on
that.
Job Security
Aside from the job losses at financial services companies in the news, there
was also concern the economy could slow significantly and ultimately affect
employment levels everywhere.
This week, people who work for themselves seemed to feel better about their
prospects than those who work for large companies. Use skills and experience
to develop a sideline business. Second sources of income are important in
uncertain times.
Mortgages
A fixed-rate mortgage means no risk that the rate will rise. If you have an
adjustable-rate mortgage and have enough equity in your house to refinance,
get a fixed-rate loan.
Here’s another certainty for those skittish about investing: If you put
extra money beyond the minimum toward the monthly payment on a 6 percent
mortgage, you’re effectively earning 6 percent by ridding yourself of that
extra debt (though the number may be a bit less if you’re taking advantage
of the mortgage interest tax deduction).
A few caveats here. Given the tightened policies among home equity loan
providers, you may not be able to easily get this money back out of your
house anytime soon. Also, it makes more sense to first pay down 18 percent
plus credit card debt even if you’re parking the money in cash.
Insurance
A.I.G.’s crisis suggests one simple tactic to reduce your exposure to
troubled institutions: Split your life insurance policies and annuities
among more than one provider.
And that's about
it for now; diversify; stay reasonably liquid, spend cautiously.
The cost of
bailing out the markets
21 September
2008
Financiers in New
York and London's Square Mile have enjoyed an extraordinary decade of global
dominance; bonuses have been huge and their expenditure lavish. Convinced of
their own invincibility, they also blinded politicians into believing the
alluring myths of the unfettered market.
But while the
banks were chalking up impressive profits, and driving growth, they were
selling Western consumers cheap credit to fund an unparalleled spending
spree. The UK piled up the biggest debts in the G7 group of industrialised
nations, sending up the price of homes nation-wide; Britsh consumers were
saving less than at any time since the 1950s.
The events of the past week may have played out among the larger-than-life
characters of Wall Street, but on a smaller scale they have finally slammed
down the shutters on the era of cheap credit. For Britain and America the
buy-now-pay-later, shop-till-you-drop economy is now in for a major
correction.
In the USA as
Greenspan keeping the cheap money flowing, the banks became increasingly
creative. Not content with the old-fashioned banker's job of taking in
savers' deposits, and handing them out to worthy borrowers, they devised
ever more ingenious methods of channeling billions of dollars of investors'
cash, much of it from overseas, into high-risk loans to unsuspecting members
of the public.
Now the banks are paying the ultimate price for this frenzied growth; merger
or nationalisation.
In the USA the very financial masterminds who have spent the past decade
urging governments to set free the 'wealth creators' and safeguard their
'competitiveness' have been brought under the control of Washington. And the
government most associated with free-market capitalism and suspicion of
state intervention has been forced to undertake the most costly
nationalisation programme in living memory.
The recovery package is estimated to cost $700 billion. This is in addition
to an $85 billion agreement on a bailout of the insurance giant American
International Group, plus $29 billion in support that the government pledged
in the marriage of Bear Stearns and JPMorgan Chase. On top of all that, the
Congressional Budget Office says the federal bailout of the mortgage finance
companies Fannie Mae and Freddie Mac could cost $25 billion.
And who pays for this; the American taxpayers. Maybe the final cost will be
less than $700 billion. After the Treasury buys up those troubled mortgages,
it will try to resell them to investors. The Treasury’s involvement in the
crisis and the speed with which Congress is responding could generate
long-range optimism and raise the value of those mortgages, although it is
impossible to say by how much.
What is happening here is that Americans who are neither rich nor reckless
are being asked to rescue the people who were. No one is running to
save responsible homeowners of modest means who might be forced out of their
homes.
People who cannot tell soybean futures from puts, calls and options are
being asked to clean up the costly mess left by Wall Street. The government
argues that action is better than inaction which could imperil the
retirement savings and other investments of Americans who are anything but
rich. Elected officials in both US parties are convinced that, while a
couple of venerable investment banks could fade into oblivion or be absorbed
by mergers, the entire financial system could not be allowed to collapse.
The risk is that
good money is being poured after bad money. It is a hard sell that the
governments of the USA and Britain are having to bail out the very people
who have lived off a decade of excesses and that somehow propping up the
failings of capitalism is somehow good for the majority of decent hard
working folk.
China's sour
milk
21 September
2008
The world is still
applauding the successes of the Beijing Olympics and Paralympics. Yet
the scandal of China's poisonous milk has demonstrated another and quite
shocking side of Chinese life — the drive to profit, whatever the social or
welfare costs.
At the heart of
the poisoning of powdered milk for babies and at least 10 percent of all
China’s liquid milk from its three biggest dairies, lies the deliberate
mixing in of the industrial chemical melamine used in the production of
plastics.
The substance was
added to milk that had been deliberately watered down, to boost its nitrogen
content, thus allowing it to pass protein quality-control tests. What is so
remarkable is that food scientists who were smart enough to come up with
this scam, presumably with the approval of their bosses who must have signed
off payment for large shipments of melamine, were not also aware that this
was a poison which would end up killing and damaging people who bought the
products.
At what point did those in charge consider the reputational damage not just
to their own companies but, as it turns out, to China’s international
commercial standing as well? Malaysia and Singapore have banned Chinese
dairy imports and other countries will follow.
China has some of the most comprehensive health and safety and food hygiene
laws in the world. The problem is that such regulations are not worth the
paper they are written on unless they are enforced.
Part of the problem is that throughout its history China has been careless
of individual as opposed to communal rights. This is China’s way, as it is
in a subtly different fashion in Japan and Korea. But this outlook will
challenge China’s assumption of its new place in the world, as well as
fostering further disasters like the poisoned milk.
The more that
emerges about China's tainted-milk crisis, the worse it appears - the more
widespread and dangerous its effects, and the more deliberate and deceitful
the perpetrators. But at least the crisis is unfolding much more publicly
than used to the case in such matters.
As always, the coverup outrages people as much as, or more than, the
offence. One major milk company ordered distributors to remove its baby
formula from stores in early July, but the Chinese public learned of the
contamination only Sept. 11.
Not so long ago, outrages like this were hushed up in China. Public outcry
(however late) and stern punishments will go a long way toward preventing
the next such debacle.
EK's 2009 plans
19 September
2008
Emirates has
the following plans under review for 2009:
GRU (sao Paulo) -
to be increased to double daily nonstop flights i.e. daily B 772LR + daily A
345. The new daily flight using an A 345 is expected to be a same plane
service originating from NGO-Nagoya, Japan. This is because a majority of
EK's passenger on board the GRU-DXB-GRU flights are bound for China and
Japan.
LTN - new daily flights to London Luton are expected to be launched using a
2 class A 332. This would be Emirates third London destination - and
reflects the good loads that Silverjet was able to generate from Luton
during its short all business carrier life.
CPH - new daily flights expected to Copenhagen to be launched using a 3
class A 332.
PER - capacity confirmed to Perth from February 1st 2009 to daily B 773ER +
daily A 345.
BKK - 4th daily nonstop flight using a 2 class A 332 to be launched.
CGP - new flights to Chittagong, Bangladesh are expected to be launched.
CAI - an additional daily flight to Cairo (a crew favourite - not !) is
planned to commence from Summer 2009.
BHX - capacity to be increased to daily B 773ER + daily B 772ER.
NGO - in-flight product to be upgraded from daily A 343 to daily A 345.
Watch this space
for confirmations.
A New
Architecture for the Financial World
By Neil Irwin and David Cho
Washington Post Staff Writers
Monday, September 15, 2008; 12:26 PM
The U.S. financial system this weekend faced its gravest crisis in modern
times, as regulators resorted to triage on Wall Street to contain the
spreading damage from a meltdown in the housing and mortgage market.
Two of the world's biggest investment banks, Merrill Lynch and Lehman
Brothers, were disappearing, Merrill into the arms of banking behemoth Bank
of America and Lehman into bankruptcy. American International Group, once
the country's largest insurer, was seeking a financial lifeline. This came
just seven days after the government took over housing finance giants Fannie
Mae and Freddie Mac.
For all the drama of the weekend, these were the first steps -- but far from
the last -- in finding a fundamentally new architecture for the financial
world. The titans of Wall Street have, over the past 72 hours, been forced
to reckon with the reality that the financial sector they built is, in its
current form, too big, uses too much borrowed money and creates too much
risk for the broader economy.
In a weekend of intensive and almost nonstop meetings behind the massive
stone facade of the Federal Reserve Bank of New York, Treasury Secretary
Henry M. Paulson Jr. and New York Fed President Timothy F. Geithner oversaw
a series of meetings that essentially forced the chief executives of every
major firm to grapple with a crisis of their own making.
The work proceeded along parallel tracks. Paulson and Geithner were trying
to find a buyer for Lehman Brothers. But from the beginning, they were also
running meetings to try to game out the problems that could result if Lehman
did fail. This morning will offer an acid test of whether that contingency
planning was enough.
However things go on Wall Street and financial capitals around the world
today, the reworking of the global financial system will continue apace.
Among the issues likely to be scrutinized: How much of a day-to-day role
should the government and regulators take in financial markets? Which
agencies should oversee financial institutions? Should the basics of the
financial world be rethought?
Paulson has offered a blueprint to overhaul this financial regulation, and
Congress plans to take it up next year. The deepening of the financial
crisis will almost certainly make that effort more pressing.
Wall Street firms have been allowed to grow with relatively few
restrictions; the regulator that oversees their financial soundness, the
Securities and Exchange Commission, is historically more focused on
protecting investors than preventing a run on a bank. Indeed, the investment
banks -- there were, as of March, five major ones, but after this weekend
there now appear set to be only three -- agreed voluntarily to that
"prudential supervision."
The Federal Reserve, the agency that has more explicit focus than any other
on rooting out risks to the financial system, has little authority over
institutions that aren't commercial bank holding companies.
Regulators of all stripes have had difficulty getting the information they
need to fully understand the risks that financial firms are taking. The $50
trillion corporate derivatives market is a model of obscurity. The same
could be said of many structured debt products, which slice up mortgages,
credit card debts, or corporate loans in such ways that understanding how
risky they are requires a PhD in mathematics.
Indeed, it is increasingly clear that Wall Street chief executives
themselves didn't fully understand the risks they were taking on during the
boom years of this decade; they have seemed as blindsided as any regulator.
The problems on Wall Street may go deeper. Financial firms have expanded
vastly in the past decade, hiring tens of thousands of bright business
school graduates to engineer new financial products, find ever more
complicated ways to manage other peoples' money, and dream up new ways to
combine, divide, and recombine corporate America.
Some large portion of that work, it now appears, wasn't really creating any
value for the company's clients or for the U.S. economy. No matter how many
times crummy mortgage loans are recombined into clever packages, they're
still crummy.
In a perfect world, those excesses would be corrected by a gradual, orderly
decline, in which a few firms get bought out by competitors, some modest
layoffs occur, and Wall Street cuts back on its hiring for a few years.
In the real world, that correction is occurring before our eyes, through a
series of convulsive weekends in which the entire financial world appears at
risk of coming off the rails.
So far, the conflagration has only singed the broader U.S. economy. Gross
domestic product grew at a 3.3 percent annual rate in the second quarter,
and the unemployment rate has risen sharply this year but, at 6.1 percent,
is not as high as it has been in past bad economic times. The question that
remains is: How much more of Wall Street's problems can the rest of America
take?
Wall Street woes - global implications
15 September
2008
It is bad on Wall
Street; and it hurts global financial markets. Over a single weekend the
great names collapsed led by the failure of Lehman Brothers, the shock sale
of Merrill Lynch, and the revelation that AIG, the world's largest insurance
firm, may need to raise as much as $40bn
With massive real-estate-related losses, Lehman Brothers on Monday filed for
Chapter 11 protection after a feverish weekend of negotiations to attract a
potential buyer. But the two most likely suitors, Bank of America and
Barclays PLC, walked away after the U.S. government said it would not
backstop Lehman's troubled assets to facilitate a sale.
Meanwhile Merrill Lynch, in a rushed bid to ride out the storm sweeping Wall
Street, agreed to be taken over by Bank of America in a $50 billion
all-stock transaction. Through the weekend, federal officials strongly
encouraged the deal, fearing Merrill would be the next financial house to
approach the brink after Lehman. But the deal may do little to resolve the
problems faced by both firms, which are heavily mired in the US sub-prime
home debacle.
AIG is hobbled by credit default swap investments that have gone sour and
spent the weekend trying to raise $40 billion to avoid a credit downgrade
which would let counterparties pull their capital from deals with the firm.
U.S. regulators
Sunday announced a series of steps - including an expansion of the Federal
Reserve's credit facilities - in hopes of stabilizing financial markets
after a tumultuous weekend. The moves are designed to make it easier for
banks to gain access to emergency credit.
There was no US treasury bail out as the treasury has reached the limit of
taxpayer funds it is willing to gamble on propping up investment banks. US$6
trillion was committed last week to saving Fannie Mae and Freddie Mac. If
they had failed, the mortgage market in the US would have collapsed and
hundreds of banks around the world that invested in US property would suffer
huge losses.
Speculation on who
is next: Washington Mutual is named by several analysts as the next to find
itself in serious trouble. It was the subject of a rescue led by private
equity firm Texas Pacific group in the spring. But the billions poured into
its coffers no longer look sufficient to satisfy investors and they are
taking flight. It is possible shareholders will also flee Bank of America,
if they consider Merrill Lynch a bad buy.
Another victim could be the US mono line insurers, so called because they
only insure the bonds of large companies, including mortgage lending
institutions. Like AIG, the insurance cover they provide could be invoked by
customers and simply overwhelm their finances.
In the UK, mortgage banks such as Halifax owner HBOS, Alliance & Leicester
and Bradford & Bingley, could suffer further if investors switch to safer
havens. Expect credit card defaults to grow quickly as well. HBOS saw an 18%
fall in its share price today.
What does it all
mean for the economy: The USA, UK and Europe have seen five years or
so of reckless lending. People have spent money they don't have and when
they stop it will spell the end for many jobs in retail, hospitality and may
other industries. A fall in the value of US, Pound and Euro currencies may
help exporters and that will offset the worst of the economy's problems. But
without banks willing or able to lend money to millions of people, except at
sky-high interest rates, a long and deep recession could be inevitable.
Thaksin's dynasty
15 September
2008
The People Power
Party's has nominated Somchai Wongsawat as Prime Minister but he does not
have the full support of the ruling party. More than 70 PPP MPs vowed to
veto the nomination led by influential Newin Chitlob, another political
dinosaur!
Somchai is the brother-in-law of self-exiled Thaksin Shinawatra through
marriage to Thaksin's younger sister, Yaowapa! Predictably the People
Alliance for Democracy has declared its rejection of his nomination. The PAD
rejected Somchai's nomination on grounds that he is too close to former
prime minister Thaksin. That was predictable!
The Constitution Court disqualified Samak as prime minister on September 9
for violating the constitution. Somchai then became acting prime minister
and he has scored a major political point by lifting the state of emergency
which was imposed by Samak. Parliament is scheduled to meet Wednesday to
vote on the next prime minister.
Anti-government protesters initially said their goal was to remove Samak.
Now they are saying they will not accept any successor from his party or any
successor considered an ally (or worse still a relative!) of Thaksin.
Meanwhile Wyncoast
Industrial Park Plc and MLink Asia Corp Plc stocks, companies that are
politically connected to Somchai Wongsawat, the acting prime minister,
jumped significantly on speculation that he would become Thailand's next
prime minister.
MLink stock prices jumped 21.48 per cent at the end of the first trading
session to close at Bt1.64, while Wyncoast stock rose dramatically by around
40 per cent to Bt0.99.
The two stocks enjoy strong price surge despite collapsing stock markets
following the collapse of Lehman Brothers.
The Wongsawat family has earlier sold out Wyncoast stocks but many still
believe the stock is related to the family. The family still has majority
stake in MLink. So help me here; the constitution will not let Samak host a
cheap tv cooking show; but the family assets of the new Prime Minister
designate can rise on massive speculation that the companies will somehow
benefit from Somchai's new responsibilities.
Amazing Thailand!
Beyond the Palin
14 September
2008
Sarah
Palin's nomination has livened up the election campaign in the USA. There is
a risk that rather than focusing on her extreme political and social views
the media and the Democrats are all getting carried away by the colour of
her lipstick and by a family that is a role model for an extreme day time
soap opera. So the UK's Observor newspaper in its leader today asks that he
focus on her politics - and they are not pretty,
Editorial -
The Observor - 14 September 2008
"To many
Europeans, especially of a liberal bent, the emergence of Sarah Palin as one
of the dominant forces in American politics is a cause for dismay.
At first glance she seems to represent the triumph of the personal over the
political. Her looks are remarked upon, her fashions critiqued. For
supporters her status as a mother of five is touted as her greatest virtue.
For others the Palin family is a source of sniping gossip. Her breezy,
straight-talking style is hailed by admirers as a key to unlocking the vital
support of the latest fad in polling demographics: Wal-Mart Moms. Others see
it as a sign of a political ingenue possessing little in the way of
sophistication beyond her background as a small town mayor.
This is to overlook the substance of her beliefs. Palin represents an
extreme form of conservatism. She is not just anti-abortion, she opposes
abortion even in cases of rape or incest. And Palin supports the
introduction of creationist ideas into the classroom, alongside evolution.
She is sceptical of global warming, only recently accepting that human
activities might play a role, flying in the face of vast bodies of
scientific opinion - even the US government's own advisers. She is
pro-drilling for oil in environmentally sensitive areas in a world that
needs to wean itself away from fossil fuels. Her grasp of foreign policy is
limited to a series of hawkish and naive soundbites on Russia, terrorism and
Iran.
America has had eight years of a government that has held similar views. The
result has been to put ideological and emotional distance between it and
large parts of Europe, Asia and Latin America. Apart from isolationist
Republicans, this is bad news both for America and the rest of us. America
needs a friendlier world to do economic and political business. The world
needs an America more in tune with its natural friends and allies.
The political beliefs exemplified by Palin and her fellow religious
conservatives are not the answer, no matter how well presented by her
considerable political skills.
Change is the watchword of the American election. But McCain, in putting
Palin on his ticket, is trying to pull off an audacious con trick. Palin
does not represent change, but more of the same. And then some."
A less
appealing view of Dubai
13 September
2008
Here is my
evening. I drive over from Millennium to Falcon Tower this evening along the
dirt track that passes for access to the two buildings. I park the car by
the side of the building and say a silent prayer that the construction site
next door will not be launching concrete over parked cars.
By the building is
the nightly sewage truck - the smell is a strong and unpleasant as always.
In the elevator
someone has spat on the floor.
The good news is
that my neighbour does not appear to be partying tonight. So I dont have to
listen to all her friends.
The bad news is
that they are pumping concrete on one of the two building site behind
Falcon; either the next door car park or the water cooling plant. Both seem
to have 24/7 building permits. These are TECOM sites apparently so Dubai
Municipality cares not at all for my sleepless nights.
To add insult to
injury every time I take the care out I am now paying at least one Salik.
Salik is meant to make drivers consider alternative routes. There is only
one exit from Business Bay; and that leads right under the Safa Park salik.
And these pictures
are the late evening view outside Millennium Tower where the site in front
of the building has been turned into this very attractive and growing
garbage tip. This is not the Dubai that is shown on Emirates pre-landing
Dubai tourism video. But for many people living here this is reality.
Et tu Samak
13 September
2008
Political
treachery has always been a favourite sport of the governing classes. And
Thailand is no different. When Thai lawmakers turned up at Parliament Sept.
12 to elect a new prime minister, they found they were too few in number to
form a quorum. That was convenient.
The reason for the absentees? The six-party coalition government couldn't
agree on its candidate to replace Samak Sundaravej, who was stripped of his
office by the constitutional court on a half-baked cooking technicality
earlier this week.
Samak's People Power Party, which leads the coalition, had reaffirmed Sept.
11 that it would renominate Samak, as it said it would before the court's
decision was handed down. It has now had to reverse course.
Its partners, and some in its own party, believe that Samak's return would
be too great an obstacle to resolving the impasse between the government and
a group of conservative and mainly middle-class and urban protesters, who
under the banner of the People's Action For Democracy, have occupied the
grounds of the prime minister's office since Aug. 26, forcing the imposition
of a state of emergency.
This is just the latest instalment of the three-year old struggle between
the country's traditional political elite and the populist parties in the
countryside that brought exiled former billionaire and ousted prime minister
Thaksin Shinawatra to power before he was ousted in a military coup in 2006.
The PAP is calling for a curtailment of the country's democracy, which they
say is prone to vote buying and manipulation by populist politicians. Samak
was widely seen by his opponents as a proxy for Thaksin and the PPP as a
descendent of the former prime minister's banned party. Should his
brother-in-law become Prime Minister the PAD will have further grounds to
protest.
Parliament is now scheduled to vote on a new prime minister on Monday.
Whoever ends up with the job will have to persuade both the demonstrators
occupying the grounds of his office to abandon a protest that has paralyzed
the government and driven tourists away, and the crowds of pro-Samak
supporters assembling in the capital to stand down.
With another court battle over election irregularities in the offing that
threatens to throw the PPP out of office Thailand's self-inflicted political
crisis remains acute.
Jetstar Vietnam goes international
13 September
2008
Jetstar Pacific,
the Vietnam-based low-cost carrier, is making its first foray into the
international market with scheduled services from its Ho Chi Minh City hub
to Bangkok and Siem Reap.
The airline, owned partly by the Qantas-owned budget airline Jetstar, will
be competing with Thai airlines already operating on the route including
Thai Airways International, Bangkok Airways and Thai AirAsia.
It will also run against Bangkok Airways on the Ho Chi Minh City-Siem Reap
which is due to begin a daily service on the route on Oct 26, using Airbus
A319 jet, according to industry sources.
The daily Ho Chi Minh-Bangkok service is set to begin on Oct 31 while the Ho
Chi Min-Siem Reap flights, also daily, will start on Nov 3.
These services will initially be operated with a fleet of Boeing 737
jetliners before transitioning to a future fleet of new Airbus A320
aircraft.
Land of trials
13 September
2008
The “Land of
Smiles” has become the “Land of Trials.” And tourists and businesses are
voting with their feet and heading to new destinations.
A combination of
Thailand's southern unrest and continued political uncertainty is making
people question whether Thailand is really as developed as they thought it
is.
Brand Thailand
suffers. It’s all about perception. For most people in Bangkok and in the
country life is no different under emergency law. But in the
international media this does not play out well. There were the murders of
the so called war on drugs, SARS, the tsunami and the 2006 coup. And
since the coup it has been a series of political trials and tribulations.
Thailand enjoys a veil of internationalism, modernity and developed society.
But there is significant polarization across society. Just take the stock
market’s capitalization losses. Political uncertainty has wiped off nearly
1.5 trillion baht this year, reports the Stock Exchange of Thailand.
Where are Thailand’s tourism minister and tourism authority doing about
this. Staying silent. Worse still, Thailand’s tourism body is expected to
slash global marketing spend as the country’s international image continues
to be battered.
XL is latest
failure
12 September
2008
Thousands of
holidaymakers have been left stranded after Britain's third largest tour
operator went into administration overnight. XL Airways fleet of 21 planes
has been grounded.
A total of 85,000 people who booked holidays or flights through XL Leisure
Group are thought to have been affected.
The company blamed the move on volatile fuel prices and the economic
downturn.
All XL Airways flights have been cancelled and customers advised not to go
to the airport.
It estimated there are 50,000 customers abroad who had booked through an XL
tour operator, 10,000 on holiday with XL Airways, and 25,000 with other tour
operators who shared the XL flights.
People who booked package holidays through The Really Great Holiday Company,
Kosmar Holidays, Freedom Flights, and Aspire Holidays are protected under
the Air Travel Organiser's Licenses (ATOL) scheme.
They will be able to complete their holiday if they are already abroad and a
flight will be arranged by the Civil Aviation Authority to bring them home.
Anyone who has booked a holiday with one of the four companies but has not
left yet has been advised to contact their travel agent to make a claim.
But it is estimated that more than 10,000 people are not ATOL protected
because they booked separate flights and accommodation or flights only.
The CAA will be able to make arrangements for stranded holidaymakers to fly
home - but they are not eligible for refunds.
Thomson and First Choice have said they will step in to help those on ATOL
protected flights or holidays. For a stiff price.
XL Airways provided flights to more than 50 destinations in Europe, Africa
and America. It operated via 12 airports in the UK.
Samak stirs the
pot
11 September
2008
The Thai
constitutional court's impeachment this week of Prime Minister Samak
Sundaravej for illegally appearing on a cooking show was always just a part
of the country's political civil war.
On Thursday, as
promised before the court handed down its decision, Samak was renominated
for the post of Prime Minister by the Peoples Power Party, a descendent of
the banned party of his patron, exiled former billionaire and ousted prime
minister Thaksin Shinawatra. Samak could be reelected as soon as Friday,
when parliament reconvenes. The six-party coalition the People Power Party
heads has a sufficient majority to enforce its choice at the same time
directly challenging the constitutional court..
Samak was
dismissed on a legal technicality in what his supporters see as an overtly
political judgment that had not harmed him in their eyes nor convinced them
that any alternative candidate would be a more able leader in this political
civil war, which could included a more substantial legal challenge over
alleged election fraud.
Banharn
Silpa-Archa, the leader of Chart Thai, the largest of the smaller parties in
the ruling coalition, has advised against renominating Mr Samak. He may
still have longer term political ambitions.
Who is pulling the
strings? That became clearer today when a PPP official virtually admitted
that Thaksin Shinawatra, the ousted prime minister who is once again
self-exiled to London, tried to influence yesterday's party meeting.
Before the
meeting, deputy PPP spokesman Suthin Klangsaeng said the party members had
received advice on "a direct line from London" -- a clear reference to Mr
Thaksin.
The acting Prime
Minister is Somchai Wongsawat. Guess what. He is Mr Thaksin’s
brother-in-law. Now that should upset the PAD.
Clinging to power;
confronting the constitutional court. This appears to all be leading to a
showdown. What form that takes and when are the great unknowns.
Menasa to be world's next economic
powerhouse
By Karen Remo-Listana on Tuesday, September 09, 2008
Emirates 24/7
The Middle East, North African and South Asian (Menasa) region is well
positioned to claim a higher stake in the global economy than ever before,
said a new report by McKinsey & Company.
The region – home to about 25 per cent of the world's population – is now in
the midst of unprecedented economic developments and is poised to
dramatically increase its share in the world economy, said the United
States-based international management consulting firm.
The report, Perspective on the Menasa region, said the region is set to
generate nine per cent of the world's total growth in gross domestic product
in the next 10 years, up from its current five per cent share. And during
this period it is slated to achieve real growth rates of six to seven per
cent.
This is still relatively small compared to the US gross domestic product,
which according to the International Monetary Fund, amounts to more than $13
trillion (Dh47.75trn) and constitutes more than 25.5 per cent of the gross
world product. But the ongoing momentum in Menasa and its resilience to the
sub-prime crisis and the burgeoning food inflation is set to give the region
a definite edge in contrast to the slowing down of the world's remaining
superpower.
The report, obtained by Emirates Business, said the growing level of
financial liquidity is increasingly being invested back into the region as
both governments and entrepreneurs witness the need for – and opportunity in
– regional investments. It said $3trn was invested in the development of the
region, amounting to 4.3 per cent of the global investment between 2002 and
2007, and over the next 10 years cumulative investments could exceed $15trn.
The total market capitalisation of the equity markets has also been
increasing significantly in the past four years, with levels approaching
those found in developed Western markets including the US and United
Kingdom. For example, the combined Menasa market capitalisation is 92 per
cent of the combined GDP, versus 117 per cent in the US and 131 per cent in
the UK.
The region – which under the report's scope comprises the six Gulf
Co-operation Council countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia
and UAE – Turkey, the Levant (Jordan, Lebanon and Turkey), North Africa
(Algeria, Egypt, Libya, Morocco and Tunisia) and South Asia (India and
Pakistan) – currently accounts for 29 per cent of international oil
production and 15 per cent of global gas production.
This share is expected to increase as the booming region houses 45 per cent
of the world's proven oil reserves and 28 per cent of the proven gas
reserves.
McKinsey estimates cumulative financial inflows from hydrocarbon exports in
these countries could exceed $9trn by 2020, up from last year's $500
billion.
The region's fortunes – especially in the GCC – have risen and fallen with
the price of and demand for oil over the years. However, recent trends
indicate that the economy of these countries is moving away from the
boom-bust-boom past to a more secure and sustainable economic future.
And while some countries are hydrocarbon endowed – the GCC countries,
Algeria, Libya and to a lesser extent Egypt account for 99 per cent and 96
per cent of Menasa's total oil and natural gas reserves – some states are
endowed with large pools of talented labour.
India, Pakistan, Egypt and Turkey account for 92 per cent of the region's
population.
This leads to these countries exploiting their resource richness:
hydrocarbon-rich countries invest in other parts of the region, and workers
from population-rich countries migrate to those parts of the region where
they find opportunities to work. Menasa countries thus received more than
$59bn in remittances of which $16bn originated from the region itself,
predominantly the GCC states, shows World Bank data.
At the same time, the widespread use of English in India, Pakistan and Egypt
and French in Morocco, coupled with these countries' significant pool of
skilled people and the relatively low labour costs, make them attractive
destinations for companies looking to outsource support functions and
value-added services such as legal and accounting services.
Revenues from information technology and business process offshoring in
India alone were $40bn in 2007.
The region's leaders have also been initiating and implementing reforms that
will liberalise the economies of their countries. Governments are promoting
the role of the private sector and foreign investments, while they move
towards more regulatory and monitoring roles.
"Never before has the inflow of financial liquidity into the region from
hydrocarbons and the availability of skilled labour been so large, and never
before has economic development in the region been accompanied by
comprehensive government reforms," said the report by McKinsey.
The total liquid assets owned by institutions and nationals from the GCC and
Egypt alone were estimated to be $3trn in 2006, and are expected to grow to
between $4.5trn and $5trn by 2012.
In addition to hydrocarbon-related inflows and the monetisation of the large
labour force, McKinsey also attributed the wealth creation across the region
to the increased foreign direct investment (FDI).
Increased investor confidence has pushed total foreign direct investment in
the Menasa region from $16bn in 2002 to $128bn in 2007, which is more than
the combined foreign direct investment of China and UK.
India, UAE and Turkey all ranked in the top 20 on AT Kearney's list of
global foreign direct investment index, which was released in July 2007.
Turkey, which currently has the highest foreign direct investment in the
region, has increased its investment eight-fold, from $2.9bn in 2004 to
$23bn in 2007.
The increased financial liquidity and investment of this liquidity into the
economy are fuelling development of other sectors in these countries.
Hydrocarbon upstream expansions in the region are set to account for 34 per
cent of total global planned expansion through 2017. These expansions will
require significant investments. In the GCC alone ongoing and planned
upstream projects are valued at nearly $275bn.
In addition to extraction, these countries are also expanding their capacity
in downstream oil refining, petrochemicals and energy-related products.
Over the next decade the region will account for 36 per cent per cent of the
global growth in refining capacity, 27 per cent growth in the petrochemical
business, and 40 per cent of the planned growth in global aluminum
production.
The region's financial sector has been growing at an average rate of 25 per
cent per year since 2002, with the total value of banking assets in select
Menasa countries reaching $2.3trn in 2007.
Today, these countries account for three per cent of the global assets, and
these assets are expected to grow to $4.9trn by 2012.
According to the Economist Intelligence Unit, between 2007 and 2012, these
countries are projected to account for nine per cent of overall growth in
total worldwide banking assets.
The telecommunications industry is also growing very rapidly. The number of
mobile phone subscribers grew from 62 million to 476 million from 2002 to
2007. Today the Menasa countries account for 15 percent of mobile phone
users worldwide.
By 2017, the number of mobile phone users in the region is expected to
increase to more than one billion, Euromonitor forecasts.
This would represent 26 per cent of overall growth in the number of mobile
phone users worldwide.
The tourism industry has grown from 62 million international visitors in
2002 to 104 million visitors in 2007, accounting for six per cent of the
global tourism market. By 2017, this industry is expected to grow to 167
million. During the next 10 years, more than seven per cent of overall
growth in global tourism is expected to be from the region.
In addition, more industries are expected to increase their international
share, most notably aerospace and aviation, logistics and real estate.
So Far, It Just Isn't Looking Like Asia's Century
By Joshua Kurlantzick
Sunday, September 7, 2008
The Washington Post
Anecdotal,
rather shallow, but rightly focuses on the rise of nationalism - big in
China. Still an interesting read.
"So much for the Asian century. The Thais are bickering with themselves, and
when they're done doing that, they'll bicker with the Cambodians -- again.
China may be Japan's biggest trading partner, but they hate each other
anyway. Malaysia and Indonesia? Two countries divided by the same language.
I've spent a lot of time in Asia over the past decade, as an expat and a
traveler. From where I stand, the place is a geopolitical mess. Hogtied by
nationalism and narrow self-interest, the countries of the East won't be
banding together to replace the West as the seat of global power -- at least
not anytime soon.
Asia's troubles have been on prominent display in recent weeks as
anti-government demonstrations, fueled in part by anti-Cambodian
nationalism, rocked Bangkok. Earlier this summer, Thailand and Cambodia
moved onto war footing because of a dispute over a mountaintop temple -- not
exactly a living example of the Beijing Olympics' motto: "One World, One
Dream."
Of course, an Asian version of the European Union isn't out of reach, as
many Asian leaders know. But today, the continent battles a kind of split
personality. On the one hand, many cultural, economic and political trends
suggest that Asian nations are becoming more integrated than ever before.
But on the other, a virulent nationalism is spreading in the region, one
that feeds on reinterpreted -- or even imaginary -- history to gin up hatred
and push small-minded agendas.
Elites in Asia clearly understand the benefits of integration, and
businesses and officials together are promoting the trend. In 2004, China
replaced the United States as Japan's biggest trading partner. Chinese
yearly trade with the ten Southeast Asian nations will likely surpass $200
billion by 2010.With the expansion of satellite television, Asian airlines
and regional hiring by Asian conglomerates, businesspeople watch the same
news, cool their heels together in a slew of space-age international
airports and mingle at cocktail parties and pan-Asian business summits. Fads
that start in Tokyo or Seoul, such as drinking red wine or dying hair blond,
sweep through the region. At summits of the Association of Southeast Asian
Nations (ASEAN), I've seen packs of diplomats gathered at bars swapping
stories in fluent English about their hijinks during graduate school at
Johns Hopkins University.
Despite all that love, most of the region's multilateral institutions do
little more than meet for the sake of meeting. In Cambodia and Laos, local
officials and fishermen despair that dams built by China on the upper
portion of the Mekong River are blocking water flow -- and ravaging fishing
in the southern stretch of that river that snakes through their countries.
"But when we . . . try to bring this up at ASEAN meetings," Sokhem Pech, a
leading Cambodian Mekong expert, told me, "no one even wants to talk about
it." The committee officially monitoring the Mekong, which doesn't include
China, is so feeble that it rarely speaks out on the issue.
The problem: Calls to nationalism and an obsession with sovereignty are
drowning out calls for cooperation. The passage of time since World War II,
when nationalism led to catastrophe, has allowed politicians to wield it
more freely for short-term gain. "The Chinese are ignorant, so they are
overjoyed," Tokyo Governor Shintaro Ishihara quipped after China launched a
manned spaceship in 2003. "That [spacecraft] was an outdated one. If Japan
wanted to do it, we could do it in one year."
This sort of nationalism isn't the stuff of a few firebrands. Across the
continent, populist politicians have scrubbed school textbooks, whether to
minimize Japan's atrocities in South Korea and China during World War II or
to erase the memory of the Khmer Rouge in Cambodia -- perhaps because Prime
Minister Hun Sen was an officer in the genocidal regime before he turned
against it. Traveling to Cambodia, I meet teenagers who know practically
nothing about what happened in their country in the 1970s. China, too, has
whitewashed the memory of the Tiananmen Square crackdown of June 4, 1989.
When a "Frontline" documentary crew went to Beijing University a few years
ago and showed students the iconic 1989 photograph of the man who stopped a
tank in its tracks, no one recognized it.
Politicians aren't the only ones embracing nationalism. In 2002, when
Thailand was still recovering from its financial meltdown, government-backed
filmmakers produced "The Legend of Suriyothai" to restore their country's
wounded pride. One of the most expensive pictures in Thai history, it told
the story of an ancient Thai queen who died fighting Burmese invaders -- and
compounded Thais' hostility toward Burma, their neighbor to the west.
The Internet has further empowered Asian nationalists, allowing them to air
their vitriol unchecked. On Chinese online bulletin boards such as the
"Strong Nation Forum," which is run by the People's Daily, respondents
compete for the most aggressive stance and ridicule Chinese leaders for
compromising on issues such as relations with neighboring countries or Tibet
or Taiwan. In Japan, the blogosphere helped spark sales of the manga comic
book "Hating the Korean Wave." And in Indonesia, online writers helped fuel
anger at neighboring Malaysia for the use of a supposedly Indonesian jingle
in a tourism campaign and for the mistreatment of an Indonesian karate
referee. These are petty grievances, but the Internet amplifies even the
smallest outbursts, and reactions can be fierce. Just last week, Vietnam's
foreign ministry called in China's ambassador to protest the appearance on
Chinese Web sites of "invasion plans" that purported to detail the
occupation of Vietnam by the People's Liberation Army.
Whenever I visit Asia, I meet young people who detest neighbors they barely
know. "The Thais, all they care about is money. Nothing else," one Burmese
acquaintance told me in Rangoon, despite the fact that he'd never actually
been to Thailand. In one study taken last year by a leading Japanese
nongovernmental organization, two-thirds of the Chinese polled said they had
either a "very bad" or "relatively bad" impression of Japan.
As any politician can tell you, public opinion counts. In an open society
such as the Philippines, rising anti-Chinese sentiment helped force the
government in September 2007 to suspend China-funded projects valued at $4
billion. Even countries that have little history of animosity toward each
other can be swept into a rage by the new nationalists. In 2006, after
Singaporean state investment fund Temasek Holdings purchased Thai
telecommunications giant Shin Corporation, Thai bloggers and online
columnists condemned the deal, arguing that a Singaporean company would have
control over sensitive Thai communications infrastructure. Thousands of
Thais marched to Singapore's embassy in Bangkok -- a move that left urbane
Singaporean diplomats, more accustomed to managing business deals than
bullhorns, a bit flat-footed.
All these problems don't seem to have resonated in the United States, where
an entire industry has developed around predictions that the Asian century
will replace the American one. And maybe it will -- a few centuries from
now."
Joshua Kurlantzick is a visiting scholar at the Carnegie Endowment for
International Peace and a fellow at the Pacific Council on International
Policy
Half baked politics
9 September
2008
Thailands' half
baked politics took the most bizarre turn today; The Thai prime minister,
Samak Sundaravej, must resign in the next 30 days after a court ruled today
that he had breached the constitution by hosting four cookery shows after he
took office.
Its not like he
was running both Shin Corporation and the country. He was getting about
US$500 a show to cover all his expenses and food purchases. Yet the
constitutional court has by a 6-3 verdict thrown the entire government into
turmoil as Samak's cabinet will also have to step down once replacements
have been nominated.
The court ruled
(or were they told?) that "his position as prime minister has ended".
Samak's PPP party and political allies in the six-party coalition said they
would nominate him as prime minister again. The constitution sanctions no
penalty for the breach.
Samak, 73, had been hosting the television show "Tasting, Grumbling" for the
past eight years, while he was the governor of Bangkok. He gave up in April,
two months after he became prime minister.
The popular programme featured the prime minister cooking up traditional
Thai recipes, such as pork leg in Coca-Cola, before indulging in a ranting
monologue on subjects of his choosing. The grumpy right-winger would often
visit restaurants or food stalls offering cooking tips. His other preferred
haunts were Bangkok's food markets, where he would cast an eye over the
produce.
But the money that he received for transport and the purchase of the
ingredients for each of the four shows filmed after he assumed office
constituted his cultivating a business interest, according to today's
ruling.
Samak denied that he been employed by the show's producers, but the judges
ruled that he had breached a clause in the constitution, which was rewritten
after the 2006 military coup that ousted his predecessor, Thaksin
Shinawatra.
In what is bound to be controversial interpretation, the judges said he had
contravened a rule that barred ministers from holding outside business
interests while in office. The clause was designed to eliminate the
conflicts of interest that were part of Thaksin's rule.
The People Power
Party will call an urgent meeting tomorrow to renominate Samak Sundaravej as
prime minister, deputy party leader Kan Thiankaew said on Tuesday following
the verdict to disqualify Samak.
Should Samak decline his nomination, the main coalition party would advance
the name of its alternate candidate, Kan said, ruling out speculation that
Chart Thai Party leader Banharn Silapa-archa might replace Samak. Dont be so
sure; the six coalition parties have scheduled to meet tomorrow to search
for a new prime minister. Banharn's name is likely to be high on the list.
Under the verdict, Samak is disqualified from his job on grounds for
conflict of interest relating to his involvement in two cooking shows. The
Cabinet is allowed to act as the caretaker administration pending the
formation of a new government.
Truly half-baked.
But just possibly the end for Samak and that start of yet more confusion.
Asif Ali
Zardari: the godfather as president
by Tariq Ali in
The Guardian
September 07
2008
"Asif Ali Zardari
– singled out by fate to become Benazir Bhutto's husband and who,
subsequently, did everything he could to prevent himself from being returned
to obscurity – is about to become the new President of Pakistan.
Oily-mouthed hangers-on, never in short supply in Pakistan, will orchestrate
a few celebratory shows and the ready tongues of old cronies (some now
appointed ambassadors to western capitals) will speak of how democracy has
been enhanced. Zardari's close circle of friends, with whom he shared the
spoils of power the last time around and who have remained loyal, refusing
all inducements to turn state's evidence in the corruption cases against
him, will also be delighted. Small wonder then that definitions of democracy
in Pakistan differ from person to person.
There will be no expressions of joy on the streets to mark the transference
of power from a moth-eaten general to a worm-eaten politician. The affection
felt in some quarters for the Bhutto family is non-transferable. If Benazir
were still alive, Zardari would not have been given any official post. She
had been considering two other senior politicians for the presidency. Had
she been more democratically inclined she would never have treated her
political party so scornfully, reducing it to the status of a family
heirloom, bequeathed to her son, with her husband as the regent till the boy
came of age.
This, and this alone, has aided Zardari's rise to the top. He was disliked
by many of his wife's closest supporters in the People's Party (or the
Bhutto Family Party, as it is referred to by disaffected members) even when
she was alive. They blamed his greed and godfatherish behaviour to explain
her fall from power on two previous occasions, which I always thought was
slightly unfair. She knew. It was a joint enterprise. She was never one to
regard politics alone as the consuming passion of her life and always envied
the lifestyle and social behaviour of the very rich. And he was shameless in
his endeavours to achieve that status.
Today, he is the second richest person in the country, with estates and bank
accounts littered on many continents, including a mansion in Surrey worth
several million. Many of Benazir's inner circle, sidelined by the new boss
(Zardari did rub their noses in excrement by having his apolitical sister
elected from Larkana, hitherto a pocket borough of the Bhutto family)
actively hate him. Benazir's uncle, Mumtaz Bhutto (head of the clan) has
sharply denounced him. Some even encourage the grotesque view that he was in
some way responsible for her death. This is foolish. He is only trying to
fulfill her legacy. He was certainly charged with ordering the murder of his
brother-in-law, Murtaza Bhutto, when Benazir was prime minister, but the
case was never tried. Characteristically, one of Zardari's first acts after
his party's victory in the February polls was to appoint Shoaib Suddle, the
senior police officer connected to the Murtaza Bhutto ambush and killing, as
the boss of the Federal Intelligence Agency. Loyalty is always repaid in
full.
In the country at large, his standing, always low, has sunk still further.
The majority of Pakistan's 190 million citizens may be poor, illiterate or
semi-literate, but their instincts are usually sound. An opinion poll
carried out by the New America Foundation some months ago revealed Zardari's
approval ratings at a low ebb – less than 14%. These figures confirm the
view that he is the worst possible slice of Pakistan's crumbly nationhood.
The people has had no say in his election. parliamentary cabals have already
determined the result. I do not take too seriously the recent revelation
that a psychiatrist had pronounced him suffering from acute dementia,
incapable of recognising his children due to a chronic loss of memory. This
was, as is known, designed for the courtroom had he been prosecuted in
London or Geneva for large-scale money-laundering and corruption. All that
is in abeyance now, since he has been elevated into a crucial figure in the
"war on terror".
A small mystery remained. Why did the US suddenly withdraw support from
General Musharraf? An answer was provided on August 26 by Helene Cooper and
Mark Mazzetti in the New York Times. The State Department, according to this
report, was not in favour of an undignified and hasty departure, but unknown
to them a hardcore neocon faction led by Zalmay Khalilzad, the US ambassador
to the Security Council, was busy advising Asif Zardari in secret and
helping him plan the campaign to oust the general:
"Mr Khalilzad had spoken by telephone with Mr Zardari, the leader of the
Pakistan Peoples party, several times a week for the past month until he was
confronted about the unauthorised contacts, a senior United States official
said, "Can I ask what sort of 'advice and help' you are providing?" … Mr.
Boucher wrote in an angry email message to Mr Khalilzad. "What sort of
channel is this? Governmental, private, personal?" Copies of the message
were sent to others at the highest levels of the State Department; the
message was provided to the New York Times by an administration official who
had received a copy."
Khalilzad is an inveterate factionalist and a master of intrigue. Having
implanted Hamid Karzai in Kabul (with dire results as many in Washington now
admit), he had been livid with Musharraf for refusing to give 100% support
to his Afghan protege. Khalilzad now saw an opportunity to punish Musharraf
and simultaneously try and create a Pakistani equivalent of Karzai.
Zardari fitted the bill. He is perfectly suited to being a total creature of
Washington. The Swiss government helpfully decided to release millions of
dollars from Zardari's bank accounts that had, till now, been frozen due to
the pending corruption cases. Like his late wife, Zardari, too, is now being
laundered, just like the money he made when last in office as minister for
investment. This weakness will make him a pliant president of Pakistan.
The majority of the population is deeply hostile to the US/Nato presence in
Afghanistan. Almost 80% favour a negotiated settlement and withdrawal of all
foreign troops. Three days ago, a team of US commandos entered Pakistan "in
search of terrorists" and 20 innocents were killed. Zardari was being
tested. But if he permits US troops to enter the frontier province on
"search-and-destroy" missions his career will be short-lived and the
military will return in some shape or form. The High Command cannot afford
to ignore the growing anger within its junior ranks at being forced to kill
their own people.
The president of Pakistan was designed in the 1972 constitution as an
ornamental figure. Military dictators subverted and altered the constitution
to their advantage. Will Zardari revert to his late father-in-law's
constitution or preserve its existing powers?
The country desperately needs a president capable of exercizing some moral
authority and serving as the conscience of the country. The banished chief
justice, Iftikhar Chaudhry, automatically comes to mind, as do the figures
of Imran Khan and IA Rehman (the chairman of the Human Rights Commission),
but the governing elite and its self-serving backers in Washington have
always been blind to the real needs of this country. They should be careful.
The sparks flying across the Afghan border might ignite a fire that is
difficult to control."
Dubai to buy into Manchester United - rumour?
7 September
2008
Last week Sulaiman
Al Fahim, the representative of the Abu Dhabi United Group for Development
and Investment, acquired Manchester City football club from the former Thai
Prime Minister Thaksin Shinawatra.
But don't for a
moment think that this purchase was due to a love of the game or a love of
Manchester. It is part of a battle for the future of the UAE after the
oil runs out and also of a competition between two city states.
In 1958 Abu Dhabi
discovered oil reserves worth 9% of the world’s prime energy supply. The
money flowed with the black gold. The first concrete buildings began to
appear and in 1961 the city built its first paved road. Independence from
Britain, of which it had been a protectorate since 1892, followed in 1971.
The surge in oil prices since the US-led invasion of Iraq in 2003 has seen
the emirate’s fortunes soar. Analysts estimate that every time the oil price
rises by $1, Abu Dhabi gains to the tune of $500m a year.
Last month Forbes magazine reported that the current ruler, Sheikh Khalifa
bin Zayed bin Sultan Al Nahyan was the second richest monarch in the world
with personal wealth of $23 billion. Incidentally the King of Thailand came
first.
But it has been
Dubai that has grown fastest. Dubai has less than 1% of the oil
reserves of Abu Dhabi and the wells are projected to run dry in 20 years.
This has led to the ruling Maktoum family sanctioning a massive development
programme. New islands have been built alongside the world’s deepest
man-made port. The world’s biggest airport the 1km-high Burj Dubai tower are
under construction. Add to that 500 hotels being built as part of an
estimated £500 billion spend on new infrastructure.
The cities have copied eachother with their own international airlines and
stockmarket; both are building new transit systems; both are investing
massive amounts globally.
The Premiership is
global and the owners are now as recognised as the players. Briefly
Manchester City is the richest club in football. So what could change that -
the gossip circulating this weekend is that the American owners of
Manchester United will soon receive an offer to buy the club that they
cannot refuse – from the Dubai royal family.
Watch this space......
The Mirror has
60 million faces
7 September
2008
Interesting
commentary from the Bangkok Post
"One night in October 1973, my mother (who was 8 months pregnant with me at
the time) was sitting at home, worrying and crying. My father, an officer in
the riot prevention unit, was trapped in a police station surrounded by
left-wing militants.
He was cradling in his arms one of his subordinates, who had been shot in
the guts. He was bleeding profusely.
There were between 15 to 20 policemen trapped in the station, surrounded by
hundreds of the opposition. The situation was hopeless. Snipers were
everywhere. The policeman who was shot eventually died from blood loss.
Late in the night, my father ordered his subordinates to strip off their
uniforms and put on civilian clothes. Under the cover of darkness, they
escaped from the police station.
A few hours later, my father made it back home to my mother.
Thinking of all the coups, the protests and the bloodshed that Thailand has
been through, I wonder: What have we been fighting for? What have we
achieved?
The majority still live in poverty. Our children still beg in the streets.
Not just politics, but our society as a whole is still corrupt. And we still
have no clue what democracy is.
Coups, protests and conflicts are nothing more than the squabbling between
rich and powerful men, whose fiery rhetoric, fancy tactics and deep pockets
are able to rouse the people to flock to their banners.
I am no fan of prime minister Samak Sundaravej, nor am I a fan of the five
leaders of the PAD. However, I am a fan of everyone who wakes up in the
morning, goes to work, provides for his or her family, lends a helping hand
to the less fortunate and lives an honest life, regardless of the colour of
their shirts.
Getting rid of Prime Minister Samak and dissolving the parliament would make
a lot of people happy, it would make me happy. But then what?
Would there be less corruption? Less social injustice? Less income
disparity? Would it better the lives of the people?
We want to get rid of him because he is corrupt. But is he any more corrupt
than the average Thai person? How many among us never cut corners, go under
the table, use connections, or hand over a hundred baht bill?
We want to get rid of him because we don't want Thaksin-style mega projects.
But then - look at our media, look at our society - why are we so obsessed
with materialism and superficiality?
We don't want him to change the constitution to serve his (or his boss's)
agenda. But then why do we the people each and every day bend the rules and
manipulate the laws to serve our own agenda?
If we want to change Thailand for the better, getting rid of a few
individuals won't do it. The change starts with us.
We march to get rid of one man, but do we march to save the lives of our
children begging in the streets?
We march to get rid of one man, but do we march to save the lives of our
brothers and sisters in the three southernmost provinces?
We march to get rid of one man, but did we march when Thaksin mandated the
murder of innocent men and women on the streets?
If we want to change Thailand for the better, getting rid of a few
individuals won't do it. The change starts with us.
The PAD has the right to protest, and Samak has the prerogative say he was
democratically and overwhelmingly elected.
We can say the election was bought, but which election wasn't? Buying an
election is just a matter of supply and demand, it can't be bought if the
people aren't willing to sell it. And the people is us, the Thai people. It
is us who sell our freedom, our democracy.
If Samak resigns, there are thousands and thousands more Samaks ready to
replace him. The idea and being of the likes of Thaksin or Samak is like the
proverb "fish in the water and the rice in the field".
Yes, like fish and rice, there are an abundance of Thaksins and Samaks in
Thailand, in all level of society, from the poor to the rich.
The jealousy, the factionalism, the close-mindedness, the hate, the
cronyism, the corruption, the politicking, the manipulation, the
exploitation, the selfishness and self-righteousness, the refusal to change
for the better - the things that we see play out in the political landscape,
that we the people never cease to complain about in disgust - are we also
guilty of the same in our families, in our social circles, in our schools,
in our work places?
Samak is merely a reflection of our society, a mirror of who we are - the
writer of this column not excepted.
Finding scapegoats and blaming others is easy. The rich blame the poor, the
poor blame the rich. Failing that, we blame karma or black magic - and of
course, we blame foreigners.
Yes, we should take to the streets against corrupt politicians, but not much
good can come of it if we simply huff and puff every few years and then go
back to our daily corruption, apathy and superficialism.
The fact is: Each and every one of us is responsible and accountable for our
country, our society and the future of our children.
Whatever that is wrong with Thai politics and society, we 60 million plus
people all have a hand in it - we are responsible for it.
We make Thailand. Not just Thaksin. Not just Samak. But all 60 million plus
of us.
Samak is not worth one act of violence, not worth one drop of blood, not
worth a single tear. He is not even worth the insults and hates the PAD
throw at him each and every day.
Take to the streets and protest for the right reason: march not because we
hate Samak, rather march because we love Thailand.
What we do in life each and every day, individually and collectively, is
what will change our country, for better or for worse.
We should continue to fight corrupt politicians. But if we truly want better
things for Thailand, the change starts with us, the Thai people."
India's mushrooming nuclear ambitions
6 September
2008
I find India's
nuclear ambitions alarming; that does not mean that the world's most
populous nation should not benefit from nuclear energy; it just worries me
that there are sufficient extremists in the nation that their nuclear
ambition could grow unchecked .
Earlier today
forty-five nations approved a U.S. proposal on Saturday to lift a global ban
on nuclear trade with India in a breakthrough towards sealing a
controversial U.S.-Indian atomic energy deal.
One hurdle remains before the U.S.-India deal can take force - ratification
by the U.S. Congress. It must act before adjourning in late September or the
deal could be left to an uncertain fate under a new U.S. administration.
Assume President Bush will be pushing this deal hard in the next three
weeks.
The U.S.-India deal has raised international misgivings since India has
shunned treaties meant to stop the spread, production and testing of nuclear
weapons and mandate gradual disarmament. India has never ratified the non
-proliferation treaty (NPT).
Washington says the fuel and technology deal would forge a strategic
partnership with the world's largest democracy, help India meet exploding
energy demand in an environmentally sound way and open a nuclear market
worth billions of dollars. See; it is all about trade and influence to the
Americans. If it was not US technology where would India turn to - China ?
Not a situation the Americans want to see.
Nuclear Suppliers Group nations adopted a one-off waiver allowing them to do
business with India after several small NSG states agreed under heavy U.S.
pressure to weaker language than they had sought to ensure India does not
test atomic bombs again. The six holdout states reluctantly accepted an
Indian declaration on Friday reinforcing a commitment to a voluntary test
moratorium. The declaration also said that India would not join any
future nuclear arms race, would permit broader U.N. inspections and adhered
to the NSG anti-proliferation export control regime.
NSG critics and disarmament campaigners fear Indian access to nuclear
material markets will let it tap into more of its limited indigenous
resources, such as uranium fuel, to boost its nuclear arsenal, and drive
Pakistan into another arms race. Given the volatile nature of regional
politics (Pakistan, Sri Lanka and Nepal are all in some form of civil
unrest) the fears are real.
The next step is
with the US senate. India and the USA are the big winners here. There really
is nothing in it for anyone else except fear.
Worse than a
coup
6 September
2008 - from the Economist
An authoritarian
rabble should not be allowed to turf out a deeply flawed but popularly
elected government
STANDING up for democracy sometimes entails standing up for some unappealing
democrats. Thailand’s pugnacious prime minister, Samak Sundaravej, is an
especially hard man to defend. A ferocious rightist, Mr Samak was accused of
inciting the policemen and vigilantes who slaughtered dozens of unarmed
student protesters in Bangkok in 1976. On becoming prime minister following
the election last December that restored democratic rule after a 2006 coup,
Mr Samak chose for his cabinet some of the most unsavoury figures linked to
the government of Thaksin Shinawatra, the prime minister deposed in the
coup. But with the army on the streets of Bangkok again, Mr Samak is for
once, if not in the right, then at least less wrong than those calling for
his head.
His government is deeply flawed. But it would be wrong and dangerous if the
authoritarian rabble who have seized Government House in Bangkok forced it
out of office. After violent clashes between supporters and opponents of the
government, Mr Samak this week declared a state of emergency in Bangkok. The
army chief backed his decision, but by mid-week was still ruling out the use
of force to clear the squatters out. If the protesters, the woefully
misnamed People’s Alliance for Democracy (PAD), do succeed, democracy in
Thailand—not so long ago a beacon, by Asian standards, of pluralistic
politics—will be in grave danger.
Some in the crowds at PAD rallies are liberals, appalled both at the abuses
of power in Mr Thaksin’s government and the sad signs that Mr Samak’s is no
better. The PAD’s leaders, however, are neither liberals nor democrats. A
gruesome bunch of reactionary businessmen, generals and aristocrats, they
demand not fresh elections, which they would lose, but “new politics”—in
fact a return to old-fashioned authoritarian rule, with a mostly appointed
parliament and powers for the army to step in when it chooses. They argue
that the rural masses who favour Mr Thaksin and Mr Samak are too
“ill-educated” to use their votes sensibly. This overlooks an inconvenient
electoral truth: the two prime ministers had genuinely popular policies,
such as cheap health care and credit.
The palace and a Burmese road to ruin
As in the build-up
to the 2006 coup, PAD leaders are trying to oust a popular government on the
bogus pretext of “saving” Thailand’s revered King Bhumibol from a supposed
republican plot. Some of the PAD protesters reportedly believe their sit-in
has the crown’s tacit backing. Almost anywhere else, the police would have
removed them, forcibly if necessary, by now. But it is whispered that the
PAD has protectors “on high”—hardline army generals and possibly figures in
the royal palace (though not the king himself). This may be nonsense; but by
preventing the discussion and hence refutation of such royal rumours,
Thailand’s harsh, much-abused lèse-majesté law has the ironic effect of
helping them spread.
In the official version of modern Thai history, the king is the great
defender of peace and democracy, who comes to the rescue at moments of
crisis. Now would seem to be one such moment: some wise words from the king
could do much to defuse tension. Thais like to believe they are good at
seeking compromise to avoid conflict. But there has been little sign of
compromise in the past three years, and there is now the risk of a bad one.
The elected government might be forced out of office to pacify the PAD’s
demagogues, it might be made to share power with the undeserving opposition
Democrat party, which has shown little leadership while waiting for power to
be handed it on a plate, or, as in Bangladesh, a civilian front might
provide a cloak for de facto military rule.
It is just possible to imagine a decent compromise in which Mr Samak gives
way to a more emollient figure from the ruling coalition—and the PAD and its
supporters in the army, the bureaucracy and (if they exist) the royal palace
accept the verdict of the people. But the PAD’s leaders may well not stop
until they have imposed their own, undemocratic vision of Thailand. In this
sense they are even more pernicious than the coupmakers of 2006, who at
least promised to restore elected government and, under popular pressure,
did so.
Prosperous, modern and open, Thailand has so far inhabited a different era
from the dark ages in which its dismal neighbour, Myanmar, languishes under
a thuggish, isolationist junta. Thailand’s foreign friends should make clear
to the Thai elite that toppling elected governments would be a step
backwards. As Myanmar has found, it might also court sanctions. Foreign
tourists, seeing the unchecked disorder on their television screens,
including blockades of some airports, may soon be imposing a boycott of
their own.
Emirates A380
takes sick leave
6 September
2008
Emirates sole A380
has been returned to Toulouse for repairs by Airbus. The 3 times weekly A380
flights to JFK are currently being operated by 777s.
Their are rumours
that the water heater for the showers burned out an electrical board?
Whatever happened it must be something serious to send the plane back to the
manufacturer for repairs.
This is just
speculation as Emirates and Airbus are managing the story in the media.
Questions for
John McCain
5 September
2008
John McCain, in
his acceptance speech as the Republican presidential candidate last night,
made his capture and imprisonment by the Vietnamese part of the rationale
for his running for the highest office in the USA.
Well maybe there
are some questions that should be answered openly and honesty now that he
has made that time a part of his campaign platform.
Can McCain prove
to the American people that the 5 1/2 years he spent at the mercy of
communist interrogators did not leave him with mental health issues that
could hinder him in making snap decisions "if the White House phone rang at
3 a.m."
Is McCain taking any kind of pain or "nerve" medicines? If so, do the
medicines cause emotional and physical reactions?
McCain was once treated for Posttraumatic Stress Disorder (PTSD) which is
said to get worse over time for former POWs, what is the status of his
treatment?
Does McCain still harbor stress triggered suicidal tendencies?
Where was McCain and what was happening to him during the months he was
missing from the POW camp?
McCain implies that he made only one propaganda broadcast for the
communists, but Senate Foreign Relations Committee staffers say he made over
30. How many did he make and what did he get in return?
Why does McCain still deny that the Soviets were involved in the
interrogation of U.S. POWs in Vietnam?
Does McCain's former interrogators, the communist Vietnamese, Russians,
Chinese and Cubans have anything in their secret intelligence files about
his behavior as a prisoner with which they could blackmail a President John
McCain?
The gloves are off
now. Being an American hero does not allow him to evade the questions. The
pain and suffering must have been terrifying. The memories must be scarred.
McCain wants to America's oldest President. He has to prove he is fit to
govern.
Thaksin's
legacy
5 September
2008
On reason that the
PAD cannot roll back democracy and recreate a feudal Thailand is the legacy
of the economic changes implemented by the Thaksin government after 2001.
Thaksin's economic
policy endures, not just at home but with a widespread appeal across the
developing world. "Thaksinomics" was a plan to to elevate rural Thais from
poverty.
It was simple,
popular and long-lasting. His initiatives quickly reversed the devastation
wrought by the 1997–98 Asian financial crisis and made Thailand's fast
growth the envy of Southeast Asia. Now similar schemes are ramping up across
developing Asia to address the issues that plagued Thailand in the late
1990s and now threaten the entire region: overdependency on export markets,
unequal development at home and yawning rich-poor income gaps.
Critics decried Thaksin's programs as pork-barrel populism, but skeptics
quickly became converts as rural debt holidays and village-level business
loans energized grass-roots manufacturing and services, and improvements to
Thailand's weak social safety net—particularly the creation of a nearly free
system of basic medical care—liberated rural households to save less and
spend more.
Thaksin called it
"dual track" development, building a vibrant local market alongside the
export sector, and it worked.
Public debt rose, but the boost in growth and tax revenues more than
compensated. Thailand's economy expanded by nearly 6 percent a year from
2001 to 2006, dependency on foreign investment and exports decreased and the
country's income gap actually narrowed during a period when the distance
between the haves and have-nots widened virtually everywhere else in Asia.
The logic of Thaksin's approach—that access to capital, employment
opportunities and basic social services can transform disadvantaged regions
into growth engines—is now accepted wisdom. Indonesian President Susilo
Bambang Yudhoyono has followed it in his support for poor households hit
hardest by a rollback in fuel subsidies. India's Manmohan Singh has created
millions of rural jobs; his ultimate growth goals very much echo Thaksin's.
In the Philippines, President Gloria Macapagal Arroyo once declared, "I am
an unabashed disciple of Thaksinomics." And since 2006, when China unveiled
a sweeping plan to redirect state investment to create a "new socialist
countryside" in the hinterland, Beijing has repealed farm taxes, channeled
millions to rural enterprises and otherwise sought to revitalize poor
interior provinces (China reportedly sent a team to Thailand to study
Thaksinomics back in 2003).
Chinese leaders reaffirmed the importance of what President Hu Jintao calls
"harmonious" growth when the National People's Congress met last March, and
in recent weeks Chinese and foreign analysis have suggested that Beijing
soon could unveil a massive fiscal stimulus package targeting disadvantaged
sectors of the economy.
With growing
wealth comes a more educated people and a growing political awareness.
Thaksin changed Thailand. Sure he and others around him used their positions
to create their own wealth. But the PAD and others who attempt to roll back
change do so at their own peril.
Thai impasse
5 September
2008
My reader must know by now that I am very fond of Thailand and saddened by
the continuing political uncertainities; the violence on the south and the
deaths and shootings that have now become a part of the battling mobs in
Bangkok.
What happens next
is far from clear. Prime Minister Samak has proposed a referendum on his
continuing as Prime Minister. This delaying tactic solves nothing. Neither
the resignation of Prime Minister Samak Sundaravej nor the dissolution of
Parliament will put an end to the deadlock.
At the other
extreme the anti-government People's Alliance for Democracy (PAD) appears
determined to establish nothing less than their so-called "New Politics".
Yet in any general
election, the ruling People Power Party (PPP) or its clone appears likely to
gain the most votes and form a government yet again. The PAD's so called New
Politics will automatically reduce every citizen's right to elect their own
representatives and should be rejected in its totality.
The rural and urban poor are the largest block of voters, that is a fact.
But why should they be returned to feudal times and be made to accept rule
by a small group of self-righteous elite. Feudalism died in the 18th
century.
The PAD advocates rule by the few - which could easily degenerate into rule
by the fewer for the fewer. The solution for the Thai media appears to be
the re-education of the rural poor about the meaning and mechanism of
elections and democracy. Dont underestimate this group. They understand only
too well that their vote has given them a say in the country's wealth.
The longer the "educated" middle class and elite continue to fail to see
that an election does not ensure an honest and morally upright government -
but it does ensure that every voter has a say in choosing their own
representatives - the longer the political crisis and confrontation will
linger.
The current drama
could take years, if not decades, to resolve itself.
Thailand is
embarking on a class war with two opposite groups of elites backing their
respective sides. No referendum will solve that.
Doha flight
will be first departure from new terminal
5 September2008
Dubai's new airport terminal will open on 14 October 2008 and passengers
flying with Emirates Airline to GCC countries and the Americas will be the
first to use the new Terminal Three.
From October 14, Emirates will fly 40 flights a day, about 15 per cent of
its total services, from its new home, including services to New York’s JFK
Airport.
Flight EK843 to Doha, an Airbus A330-200, will be the first scheduled
Emirates flight to leave the US$4.5 billion (Dh16.5bn) terminal, which will
have five gates specifically designed to accommodate the airline’s upcoming
fleet of 58 Airbus A380 superjumbos.
The airline said it was unable to give firm dates for the start of the
remaining three phases, revealing only that a new phase would begin once the
previous one was running smoothly.
Phase two will include flights to the airline’s remaining Middle East
destinations and Africa, increasing operations to 99 flights every day, or
37 per cent of all flights.
Flights to Europe will take off in the next phase, escalating operations to
168 daily flights, or 60 per cent of all Emirates’ services.
The fourth and final phase will include flights to the Indian subcontinent,
East Asia and Australasia and bring the total to 269 flights every day.
The new terminal has a built-up area of 515,000 square metres, with more
than 250 check-in counters, including 126 for economy class passengers, 32
for first and business classes and 60 self-service kiosks for those with and
without baggage.
In addition, 10 counters will be dedicated to Skywards premium members and
18 will be set aside for oversized baggage.
Despite a huge investment in the new terminal, it is still regarded as
a stopgap until the much larger Al Maktoum International Airport in Jebel
Ali opens in the next decade.
SQ crew detained in Abu Dhabi
4 September
2008
A Singapore
Airlines (SIA) steward has been held in Abu Dhabi on suspicion of raping a
colleague at a hotel there.
The airline yesterday said a member of its cabin crew was detained by the
authorities in the United Arab Emirates, following allegations made against
him by another crew member.
The victim is said to have been a relatively new recruit, although the
suspect is supposedly more senior and in a supervisory role.
The man and his alleged victim are said to have served on the same route
between Singapore and Abu Dhabi, but arrived in the city one day apart.
The incident is said to have occurred last Saturday and the victim made a
police report there.
According to Chinese evening newspaper Lianhe Wanbao, the man is married
with a young child and his wife is pregnant.
It is believed a hotel worker let the suspect into the victim's room, where
he then raped her.
The Straits Times understands the victim arrived back in Singapore soon
after the alleged rape was reported. The accused is still in remand in Abu
Dhabi.
'Singapore Airlines is providing both the crew with the maximum possible
support,' said the airline's spokesman Stephen Forshaw.
United closing Asian bases -again
5 September
2008
United Airlines
has announced its intention to eliminate 1,550 flight attendant jobs
effective October 31, 2008. This is as a result of management's decision to
reduce domestic capacity in the fourth quarter by approximately 14 percent
compared with last year and to cut flight attendant staffing onboard United
aircraft.
United is obliged to offer a voluntary redundancy first and also to lay off
its "Foreign Nationals" who are based in Singapore and Bangkok prior to any
redunancy of an AFA Member.
The Singapore and
Bangkok based crews have been given notice and will be released no later
than October 30, 2008.
Almost exactly
seven years ago; after the 9/11 attack on the USA, United went through
exactly the same closures of its Asian crew bases.
Many of the
originally laid off crew were re-employed and will now be laid off for the
second time.
These crews almost
made United a decent airline; at least in Asia.
Bangkok Post show its true colours
5 September
2008
The Bangkok Post
does not like; forget that he was democraticaly elected.
The Post published
yesterday its strongest attack on the country's Prime Minister:
"Step down,
now!
SANITSUDA EKACHAI
If you did not know then, you should know by now. The man who died in a pool
of blood during the free-for-all when your supporters attacked the
protesters at Makkhawan Bridge was your man.
There was little information about him when you held the press conference to
defend your decision to declare a state of emergency.
When reporters asked you about the dead man, you shot back belligerently:
"Whose side was he on?"
Your eyes tell all. The heartlessness. The cruelty. When you started
dividing even among the dead, we knew we could not let you carry on.
For your information, the dead man was Narongsak Kobthaisong from Korat,
Nakhon Ratchasima, a Thaksin supporter. And since you are Mr Thaksin's
proxy, he supported you.
Narongsak was a nobody in your eyes. He was just a pawn in a larger ploy to
incite violence so the state of emergency could bring in the military to
eradicate the protesters.
Say what you like. Deny all you can, that you had nothing to do with your
supporters attacking the protesters.
But who will believe it?
The violence may very well be the work of Mr Thaksin's other generals whom
you cannot control.
But you still cannot deny responsibility.
One man has died, and the game isn't going according to plan.
The military has refused to carry out your order to crack down on the
gathering of the People's Alliance for Democracy (PAD) at Government House.
So what's next?
Allowing Mr Thaksin's men to send their thugs on a killing spree, so you can
hold on to power over a country in ruins?
Indeed, couldn't you see the blood ahead when you allowed the protesters
from both sides to become confrontational, or when you ordered the military
to do the dirty job for you?
Why do you have no qualms in dispensing with other people's lives?
Don't you believe in heaven and hell?
You might think you are in a different league from your pawn, the late
Narong-sak. But haven't you, as a Buddhist, ever been taught that we are all
equal in birth, ageing, illness and death?
Haven't you been taught that we all die, and we cannot take anything with us
after we die but our karma?
That our next life is crucially determined by the last thoughts and feelings
when we take our last breath?
Narongsak's life was cut short by violence. What could possibly have been
the last thing on his mind when anger and physical pain from the wounds
subsided and darkness entered?
Happy, carefree moments in childhood before the harsh reality of poverty and
violence in life set in?
The warm embrace of his mother?
Ironically, the nation owes much to him.
Because he was treated just like a pawn by his masters, he died in
obscurity. Had he been a PAD supporter, he could have been turned into a
martyr for the PAD leaders to whip up more anti-government anger.
Can you imagine what could have happened?
You know the PAD wants to see blood spilled so the military can intervene.
Why did you fall into the trap?
Is the anger and greed too blinding?
The whole country is hanging precariously by a thin thread because of your
stubbornness.
You might sincerely believe that you are protecting a democratic system, but
history will remember you for puttting yourself first before the country.
That is a very expensive price to pay for being a Thaksin lackey.
Is it worth it?
You can turn things around.
If you haven't already taken that step - or have already been forced to do
it - do it now.
Forget the PAD. Its leaders have their own karma to answer to.
If you do the right thing, it will not only save the country, it can also
save your soul when your time comes.
Step down.
Before it is too late."
Sanitsuda Ekachai is Assistant Editor (Outlook), Bangkok Post.
Is Samak about
to resign?
3 September
2008
from The Nation
newspaper
"Prime Minister Samak Sundaravej is expected to address the public on
national radio this morning, with high prospects that he will step down.
A well-informed source said Samak's resignation would pave the way for three
possible scenarios, all of which will take place within the current
constitutional framework.
1. Samak could dissolve Parliament.
2. He could resign to pave the way for a new coalition government.
3. Samak's resignation could result in the formation of a national unity
government.
In the third scenario, Parliament will need to support an amendment of
Article 171 of the Constitution, under which the prime minister must be a
Member of Parliament, the source added.
Samak has been driven into a tight corner, suffering two blows in a row
yesterday. The first blow came when Army chief Anupong Paochinda told Samak
that he would not use force to disperse anti-government protesters from
Government House despite Tuesday's declaration of a state of emergency.
The second blow for Samak yesterday came when Foreign Minister Tej Bunnag
resigned. Anupong's tough stand and Tej's resignation plan spawned intense
rumours last night that Samak was ready to call it a day. However, Samak's
booking of a Public Relations Department radio network at 7.30 am for a
public address this morning was later played down as an effort to "explain"
the current situation, including Tej's resignation, to the people.
Army chief Anupong told Samak that he will not use force to crack down on
the People's Alliance for Democracy (PAD) protesters, according to First
Army Region Commander Prayut Chanocha. "It is difficult to use military and
police forces against the people. Using force could worsen the situation. It
would go step by step and take time. Please don't expect that the state of
emergency could finish everything quickly. The officials need time to work,"
Prayut quoted Anupong as saying to Samak. Samak had expected tough action
against the protesters. But the soft approach of the military gave Samak no
sword to bring down the PAD.
Meanwhile, members of the Privy Council yesterday reportedly were granted
royal audience with His Majesty the King to report on the situation. People
Power Party MP Panya Sripanya said it is possible that his party would press
Samak to step down rather than dissolve the lower House. The party's MPs
from the northeastern region will hold a meeting today to take a stand over
the situation. But another MP, Kan Thiankeow, said the option to dissolve
the house of representatives was likely but it was the prime minister's
decision.
Democrat Party leader Abhisit Vejjajiva said he only had information that
Samak would be on radio this morning to clarify the political situation.
Abhisit turned down the suggestion that he could be proposed as new prime
minister if Samak resigns, and also declined to comment if he would accept
the proposal. However, Abhisit said even if Samak resigns, the passing of
the 2009 Budget Bill would not be affected as the deliberation belongs to
the Parliament, not the government."
Lese-Majeste
charge for Aussie
3 September
2008
An Australian
writer has been arrested in Thailand and faces a lese-majeste charge for
publishing a novel deemed defamatory to the country's royal family, police
and the Australian embassy said on Wednesday.
An embassy official identified the man as a 41-year-old from Melbourne and
police named him as Harry Nicolaides, who was unaware there was an arrest
warrant out for him when he tried to fly out from Bangkok to Australia on
Sunday.
"An arrest warrant was issued in March for a book he wrote in 2005 deemed
defamatory to the crown prince," Police Lieutenant-Colonel Boonlert
Kalayanamit told Reuters.
He has been charged with lese-majeste, a crime that can carry a 15-year jail
sentence in Thailand, and was being held at a remand prison pending further
interviews, Boonlert said.
Nicolaides, a regular visitor to Thailand and briefly a resident, when he
taught English and wrote for Australian newspapers, had not been granted
bail, police said.
Police identified the novel in question as "Verisimilitude", described in
publicity dated June 2005 on the phuket-info.com website as a "trenchant
commentary on the political and social life of contemporary Thailand".
Tyranny of a minority
1 September 2008
In other civilised
countries, provocation and occupation of the seat of government would bring
swift enforcement of the law. The PAD's revolting rampage has been met with
tame official responses.
By Thitinan Pongsudhirak Bangkok Post
The writer is Director of the Institute of Security and International
Studies, Faculty of Political Science, Chulalongkorn University.
Over the past three years, Thai politics has degenerated from the
tyranny of a majority under former prime minister Thaksin Shinawatra to that
of a minority led by the People's Alliance for Democracy (PAD).
Prior to the military coup in September 2006, Mr Thaksin exploited his Thai
Rak Thai party's electoral successes to abuse power and monopolise political
outcomes, reaping rents and rewards for businesses of his family and
associates and lining pockets of his cronies. But now his erstwhile
opponents have abused their unelected power from a different direction,
holding the entire country hostage to their demands and revealing their
distrust and disdain for the majority of the electorate.
The ongoing political crisis took a turn for the worst on August 26 when PAD
demonstrators moved from their regular street protests to arbitrarily take
over a state TV station, several ministries and Government House. They
resorted to physical force by breaching and tearing down the fences and
walls of these state agencies, and have since encamped at Government House.
These unlawful efforts were an unprecedented provocation.
In other civilised countries, such a provocation and occupation of the seat
of government would have been met with a swift and complete enforcement of
the law to regain the state properties. Instead, the PAD's revolting rampage
has been met with tamed official responses. Even at Makkhawan Bridge in an
old and historic area of Bangkok where altercations between the authorities
and protesters ensued following a police attempt to dismantle the
three-months-old protest site, injuries were limited. More protesters were
injured when they marched and confronted police at the gates of the
Metropolitan Police Bureau. Stationed inside the gates with the PAD crowds
massing outside, the police reportedly deployed several tear gas canisters.
The adverse public reactions to the authorities over these scuffles are
understandable. State-perpetrated violence against the people is deeply
etched in the Thai psyche, imprinted by the military's gruesome suppression
of university students in October 1976 and middle-class demonstrators in May
1992. Prime Minister Samak Sundaravej's role in the October 1976 suppression
also constrains him from being seen as trigger-happy. As a result, Mr Samak
has allowed the PAD to rule the streets and illegally occupy Government
House.
In addition, as the PAD bullies its way in a unilateral and anti-democratic
effort to bring closure on the Samak government, its many sceptics and
critics are cowed into silence. Dissent against the PAD brings personal
attacks and character assassinations.
Yet this is the time for those myriad Thais - the silent majority - who
never liked Mr Thaksin then and despise Mr Samak now - to come out and
condemn the PAD's blatant hijacking of Thailand's democratic system. They
lack the PAD's voice, vehicle and organisation, but they must find a way to
speak out. The white ribbon campaign, initiated by Thammasat University law
professors, should be revived for those who are no fans of Mr Samak and his
government but who oppose the PAD's methods and intentions. Other campaigns
to give voice to the columns of people sandwiched between the PAD and the
Samak government should also be considered and tried.
As fledging and fragile as it is, Thailand's democratic system is still in
operation. It staged a general election just eight months ago. The voices of
people who spoke at the polling booths then should still be respected.
Moreover, these voices are now reinforced by a restoration of institutional
checks and balances after the coup. Even the PAD leaders have not doubted
the current integrity of the independent agencies such as the Election
Commission, National Counter Corruption Commission and Constitution Court.
Nor has anyone disputed the rulings of the Supreme Court and Criminal Court,
which have taken Mr Thaksin to task and issued a conviction and three-year
jail sentence on his wife. Mr Thaksin and his wife even had to flee from the
law by their exile in England. This judicial process and its several
critical verdicts to come on Mr Samak's conflicts of interest and the ruling
People Power party's dissolution, among other cases involving government
officials, should be respected and allowed to run their course.
But the PAD knows that in the end the majority of the electorate is likely
to opt for a party with Thai Rak Thai and PPP's winning policy platform. As
a result, it has nakedly revealed its hand. The PAD wants to bring Thai
politics back to a bygone era of appointed representatives, of keeping Mr
Thaksin, Mr Samak, Thai Rak Thai and PPP out of power for good through its
own seizure of power.
The forces in cahoots with the PAD are now conspicuous. The Democrat party,
which has lost the elections time and again and is still unable and
unwilling to focus on appealing policies, has never categorically rejected
the PAD methods and objectives. Leading Democrats have visited the PAD at
Government House, and a Democrat MP has been a PAD organiser from the
outset.
Democrat party canvassers and their networks are reportedly involved in the
closure of Phuket and Krabi airports. If this is untrue, it is imperative on
the Democrats' leadership to categorically deny their members' handiwork in
the unrest in the southern provinces, their electoral stronghold.
Mr Samak now faces dire choices. The PAD leaders have staked their movement
exclusively on Mr Samak's resignation. Caught between a rock and a hard
place, Mr Samak cannot crack down on the illegal occupants of Government
House for fear of what is perceived as his past sins and the potential for a
broad-based confrontation and violence. But allowing the PAD's rampage to
settle in makes the prime minister look lame duck and ineffectual.
The bicameral legislative meeting yesterday was a good way forward but
unlikely to resolve the crisis. As Mr Samak's position becomes more
untenable, his resignation and the PAD's blackmailed success would be an
event of infamy in Thai political annals, a huge setback for Thai democracy.
Even those who abhor Mr Samak but who want to see Thailand's longer-term
political maturation would have to root for him to weather this round of
PAD-instigated maelstrom.
Funny old game
1 September
2008
Funny old game -
football. And football club ownership may be even funnier. Last Monday
Manchester City club chairman Garry Cooke insisted that owner Thaksin
Shinawatra was committed to the club despite speculation over his financial
muscle raised by corruption charges in Thailand.
Today Thaksin sold
out. The buyers, Abu Dhabi United Group for Development and Investment, said
in a statement that it had completed the buyout late Sunday night. Financial
terms were not immediately available, but the group described it as a "huge
takeover" that gave it "all the management rights."
The group said the
deal was a "massive achievement" that it hoped would help make Abu Dhabi a
global sports capital.
Thaksin bought
Manchester City in May 2007 for £81.6 million, or $163 million at the time.
But his assets in Thailand were frozen, and he fled to Britain last month to
escape corruption charges in his native country, claiming that he could not
be assured of a fair trial there.
Sulaiman Al Fahim,
a member of the group's board and the chief executive of Hydra Properties,
completed the deal at the Abu Dhabi Emirates Palace Hotel with Thaksin and
Khalid Kadfour Al-Muhairy, the legal chief of the Emirates Group.
Al Fahim pledged to clear any pending payments and solve the club's
financial problems, which have left Thaksin resorting to obtaining loans
from the club's former chairman, John Wardle.
Thaksin is to stay
on as Honorary President with no administrative duties. This seems a little
unnecessary given that he is a fugitive.
Meanwhile Thailand's Supreme Court on Monday agreed to hear a fourth case
against Thaksin Shinawatra, accusing the ousted and exiled Thai premier of
amending tax policy to enrich his business empire.