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I'm very much inspired by the words of Thomas L. Friedman in his book "The World Is Flat" which renders about the influence of bloggers in this new age. I want to keep the highest integrity and honesty in posting my words to the world. This blog act as a testimony to my alacrity of sharing information with the borderless world. Hope we can share a high regards of veracity and chivalry with this blog because that's why it is here. So help me God!

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Thursday, 20 September 2007

The Entrapment of Feudalistic Ideas Among the Third World Nations - Regulating the Economic Market - Part 2

By: Ahmad Syah Ejaz Bin Hj Ismail

I would imagine most of the Conventional economic theorist wouldn’t agree with me to accentuate that Capitalism do bring and generates freedom or liberty either through economic activities or socio-political being of ones society. One of the great traditional economic thinkers, Joseph A. Schumpeter perceives that only Socialist system of belief can bring equality onto the society and thus distribute wealth among the people.

I do agree with that views to an extent, but in adopting the Socialist idea for the long run will only bring more harm than good. Socialist state is only matters if the masses never taste the benefits of the Capitalistic world and in road to create an intelligentsia among the society for the time being ensuring Capitalistic market to be fully operational supervise and managed by the intelligentsia of the masses usually seen as the middle class.

Capitalism will surely fail if it was driven for profit per se as was seen by the Marxist and Schumpeter in the early decade of the 20th Century. The reason being is that if it was driven for the sake of seeking profits, it will only create a future of “Creative Destruction” as such had been conveyed by Schumpeter. But the modern experience of supervising the markets, mankind had develops a lot of way in regulating Capitalistic market.

Capitalism is changing and evolving especially during the Cold war period where trades and movement of world products is shortened by the development of steam ships and cargo air carrier. I do agree that, had it not been for socialist idea (Not Marxist and Communism because both were very much different from the Socialist economic belief), certain continent of the world might still be under the colonization by the first world. But along the way, the Socialism belief had brought an approach of monitoring the economic market thus avoiding “Creative destruction”.

It can be testify by one major case when the prices of the world’s oil reached it highest peak, but Greenspan point out that America wouldn’t feel the effect of it due to the development of technologies in fuel efficiency. Mankind had created a way in dealing with the problems faced by the Capitalistic world in an un-conventional way.

Views expressed by the Capitalism pessimist that economic market of the Capitalistic world served for the purpose of seeking profits had been challenged in the hands of intelligentsia who managed them (current market). It’s an anti-thesis of the free world prosperity and numerous supervision and regulating bodies set up by the government to overseeing the economic market of the Capitalistic society. Encouragement by the government for the business seeking companies to get involve in the socio-economic development of certain society is also evidence that the day of the traditional economic trade is over.

Business organisations and capitalistic companies now hold the responsibility such as traditional state government. The business trade and commerce which upholds the public interest will be permit to operate in the Capitalistic world through government regulations. Mankind never experienced such situations where government and regulatory bodies does play a major role in business dealings. Ones only need to be smart to outsmart the other competitor in a good spirit of a competition in the free market. There is no more anarchy in the Capitalist business for the whole world.

At variance from the Marxist point of view where it promised of what they can’t deliver, the Capitalist state proved to deliver much more of what they had promised. The power and latent strength of Capitalistic world is not yet fully seen by economic experts where money can be make out of thin air without compromising the public interest. Capitalism had created millions of opportunity for the society either job, profit making, great health care, efficient services and to an extent and able working government pressured by an efficient private sector.

Incompatible from the Communist beliefs that stating future scenario of manipulations by the Capitalist state is considered imminent, the opportunity brought by Capitalism economic system such as free trade and individual ownership is perceive as a threat to segregate the masses into different classes of the have and the have not. The coinage of the Communist and Marxist dogma itself will eventually suppressed the proletariat by the Communist political bureau when they will be vested a veto on who can play high politics and who can play low politics unto the society they’re in. They will rather emphasize on what can’t be done in the state rather than what can be achieved.

The only apprehension that was faced by the society living in the Capitalist state is the suppression of the Capitalistic power unto the society. Will the Capitalistic bodies such as business companies that was driven by profits of certain products will venture into some kind of economic activities (such as anti-competitive behaviour) that will not only affecting the consumers but also the market movement hence impinge on other private companies in a very bad way such as relentless profiteering, abusing of the dominant position or swelling price hiking.

Much had been argued before by traditional economic theorist and I would like to paraphrase of what Mr. [Milton] Friedman expressed on such matters. “Even though the bad effect of intervention by the invisible hand will disturb the flow of the market movement but one cannot deny the crucial intervention of such regulatory body (such as the Free Trade Commission) to rectify imbalance happen due to the abuse of the Capitalistic power in the economic activity of a state”. I see it as an act to avoid Creative Destruction anticipated by Schumpeter at the early of the 20th Century where such a regulatory body in the Capitalistic state is seen as blasphemy unto the Capitalism belief.

It is understandable when ones see that great economic theorist such as Schumpeter failed to see the set up of a regulatory body in a Capitalistic state such as the Trade Commission is important in monitoring the market flow and strengthening the public interest in the emerging power of Capitalistic business organization. In the history of the Capitalistic market economy, none had experienced stoutly the power of the government intervention (the regulatory body) in ensuring market feasibility hence at the same time protecting the public interest.

It was once considered as an anti-thesis to the Capitalistic beliefs that the regulatory body will not harm the market flow so much so that the Communist state was trying to do the very same thing in experimenting their own market at the cost of millions innocent life. The regulatory body as such in the Capitalistic world will have the burden of managing Capitalistic market ensuring it will move parallel with the public interest and mankind prosperous wealth. The reason that the Capitalistic regulatory body is much more efficient and workable compared to the Communist regulatory process is the intelligentsia that works behind such a body.

There are countless views (especially by the Marxist and Communist believers) put into words by conventional economist which put emphasis on how much Capitalism beliefs will only focus on making money, manipulate the workers for personal gain and focusing on profits per se. But the current situations nowadays which clearly proved that is the Capitalist body if were regulated or watched by the higher entity such as the government, they (Capitalist apparatus) too will venture into the social development of a country. They have started to invest and bring wealth into part of the scarce region with wealth in many forms.

What the Socialist believers failed to see is that the Capitalist body is trans-boundary and amiable to move freely without the interjection of a state. As what had been expressed by Alan Greenspan, the nationality of a company is not important compared to the well being of the people affected by their business activities. Whereas one of the major defects of Socialist state is that they cannot venture into foreign market without carrying the flagship of a nation. Unlike the Socialist driven economic apparatus, there is no allegiance into any country by the Capitalist organization. They are more freely to reap the benefits of world’s wealth ignoring the bureaucratic hindrance that had to be passed by the Socialist economic apparatus.

The government i.e. the regulatory body must develop a process to ensure that the increasing power of the Capitalistic apparatus will always be fulfilled by sheer responsibility in concomitant with the emerging power of ones market onto the public. As what had said by Schumpeter, “Great power without responsibility is always dangerous”. Absolute power will leads to absolute corruption not just only in the big apparatus such as the government but also among the private sectors such as happened to Enron.

Apart from regulating the market, the government will have the burden of enticing the Capitalist apparatus to get involved actively in developing the socio economic of a society and not just concentrating taking opportunity arising from the free trade or making profits squandering the sources of a particular continent. Thus such a reciprocal behaviour will create a better world compared during the first year of Globalisation of the market is suggested.

With the success of the Capitalistic idea, there will be more power enthrust onto the Capitalistic apparatus. Not only that, the bad effect of it if not fully monitored will create a major rift and wide gap between the have and the have not. Prime Minister Mahathir once emphasized that the war of the future will not be fought on the basis of ideology, but between the have and the have not. The crucial role played by the middle class in moulding the socio-economic driven Capitalist society is indispensable. With the emerging power of the middle class which played active roles as a government executives providing technical and intelligentsia capabilities to preserve the status quo of the Capitalistic economic business.

To be continue…

Tuesday, 11 September 2007

The Entrapment of Feudalistic Ideas among the Third World Nations - Part 1

By: Ahmad Syah Ejaz Bin Hj. Ismail

It is essential for me to underline on the issues of non-conventional entrapment of the Third World Nations into new form of Feudalism so that the reverence of peoples intelligentsia is treasured and not what ones might think of leader’s right to hold power in the name of the people. The transition of the developing world without the supervision and intelligentsia from the Capitalist entities in ones country can be considered a failure and usually will lead to a new form of non-conventional Feudalism.

Since the develop nations coined the term the Third World Nations at the start of the Cold War to differentiate Capitalism and Communism block and promising nations that can be implored to join either Capitalist or Communism block, much had been discussed on the future of these Third World Nations before after they were born out of Colonialism.

Although the 20th Century is considered the age freedom, many problems had occurred since due to immaturity of human intelligentsia in the Third World Nations. Only small numbers of the Third World Nations managed to free themselves from the entrapment of the non-conventional feudalistic idea after independence. Often, such feudalism is suppressed by their own countrymen and not by the conventional superpowers.

After the Second World War, a lot of the British colonies either in the Africa continent or in the Far East gained independence due to the inability of the British Labour Government to finance their colony after the War. Thus independence is given without considering either particular nation is ready or not to embrace democracy. Most of the ex-British colony is not yet ready to govern themselves without the interventions of the develop nations. It is demonstrated in the African states and certain South East Asian nations (Indonesia, Vietnam and Philippines just to name a few).

Years of colonization endured and frequent manipulations by the colonialist government had left such a country (usually Third World Nations) in political and social turmoil and disintegration. Especially after hundred years of pluralistic approach by the British government in order there will be no political unity among the colonies against the British government. Such conditions had backfired when the nations in democracy immaturity is granted independence which the new government formed doesn’t have any idea to rule so much so any good role model self administrations. They will then resort to adopting the previous administration style of divide and rule and remains the disintegrated conditions such as pluralistic society to stay in power such had the British had done during colonization period.

Such conditions had been elaborated in length by Joseph P. Schumpeter as the relishes of society’s mediocrities by the political leaders so they will remain intact on the political helm of the mediocre society. Such situations will ensure certain and particular parties to govern the pluralistic societies and remains relevant. From the words of Schumpeter’s “As every political captain knows, only mediocrities can be counted on for loyalty”.

I do not intend to delve deep in the problems of classical Asian conflicts of divide and rule. What I’m trying to make a point in this article is that there is latent entrapment of the Third World Nations to remain in a situation of mediocrities far worse the transition of socialist states towards the feudalist beliefs. The tactics of divide and rule (pluralistic approach) that was once used by the colonialist is again used by the Third World regimes or political parties upon their own subjects to remain in power.

Schumpeter had emphasized on the emerging beliefs of the socialist idea socialism is the way of the future. I disagree with his views, especially when he questions the survivability of Capitalism which he anticipates to eventual destruction. I believe the only way for mankind to be free is through Capitalism. So much so that on the theory socialism promotes equality, it will only eventually lead to neo-feudalistic idea and far worse it will incarcerate the masses to work for the feudal lord in a new dimension such as corrupt democratic government either through despotic leaders or mediocre echelons of executives rulers. It is easy to reckon how mankind favours socialism, but ones cannot perceived that such ideology only will further create mediocrities and breed new blind-allegiance towards the new feudal lord.

The entrapment mentioned above by the new dimensions of feudal lord upon the mediocre society which had been exercised in Europe through land lords and the church is to ensure loyalty among the inferior subject which usually has nothing. The interdependent of each level of class in Europe had put European community in static feudalistic states for hundred of years. One of the push factors of Enlightenment and Rationalisation in the early years of Renaissance in Europe is Capitalism and accessibility of knowledge despite Church suppressions. It proved in the past of how much the power of Capitalism and individual ownership can bring freedom and “equality” towards a society.

Knowledge and the distribution of information that comes through Capitalism and trades had brought the end of feudalism in Europe. The emerging power of individual ownership is felt throughout European community, thus creating push factors of intelligentsia which brought revolutions such as what happened in Europe through French Revolutions.

With Capitalism in moving in the right directions, the freedom of expression is felt among the masses through individual ownership and non-allegiances towards the feudal lord. The objective of individual loyalty upon Kings or land lords is understandable as for their survivability. Such reciprocal interactions are obsolete when the power of individual ownership emerge replacing the dependency that was much needed before this class have nothing. Capitalism that which was brought by trades interactions between various parties brought along wealth, choices for the consumers and freedom. Meanwhile Feudalism that was once favours mediocrities of the societies to remain relevant is seeing as rotten and creeps by those that had tasted the juice of Capitalism.

Currently there are indications among the Third World Nations regimes to analyze their freedoms. Some of the Third World regimes saw that freedoms among the masses as a threat especially towards their political seat. Take for an example on the issues of bloggers either in United States or in Asia are considered as non-traditional threat. The power emerged due to individual ownerships and the flow of the information. Never in human history, has one man views in far side of the world will influenced markets either positively or negatively in large scale. There are approaches by the Third World regimes to encourage the state of mediocrities among the peoples so they will remain relevant. The reason such a phenomenon occurs is the powerful brewing of the intelligentsia especially in the Third World Nations that had embraced an extent of Capitalist idea. Knowledge preponderance is never felt in such nations which make it static by adopting the administrations of the coloniser by keeping the pluralistic society in stagnant.

Such conditions of feudalistic approach by the modern regimes which intend to suppress intelligentsia so that they stay in power will only ensure their own demise. The ultimate destiny for feudal lord either it be one-party system or Kings or constitutional king is come to an end. The only remedies to ensure they will length their power is by opening up a bit by bit.

One of the guidelines for the intelligentsia in emancipate themselves from such control is by understanding Immanuel Wallerstein theory of World System-analysis. They (the intelligentsia) should realize that mediocrities among the society are considered a gift (for feudal lord) to reckon loyalty.

To be continue…

Faces of Tun Teddy

Faces of Tun Teddy