1/2/12 DEVELOPING THE XYZ AXIS OF OUR ECONOMIC MODEL..

I have been working and thinking some conception of a possible our nation New Economic Model (NEM) for quite sometimes. Since now that I have a good leisure time in MyKampung, I want to share this initial thought with all.

(2) The present economic system need to be revisit and enhanced. I have been trying to have my time, and yet had been dragging for too long. I have read so many books and traveled into vast poor and prosperous region and States. Now I just want to throw some issues that might guide us well into the new discovery. The Muslim, I would call, must now work hard to deliver a Model that we had been claiming as superior to complement if not to replace the system that now had created lots of imbalanced. The Muslim once in the seventh to the fourteen centuries had developed an empire that span from Africa-Europe-to Asia with great prosperity, with no major war as the WWI and WWII, and how such could be achieved?

The Paradoxes

Boil a pot of pure water. Doesn't matter how long and how much fire being put up, the temperature of a boiling water will never goes beyond 100 degree. Then we don't have to put too much heat, at 0 degree, the ice will melt. Pour water into any vase. We don't need an ocean of water to fill the vase except just a vase. So, modern science had place everything into a limit. In mathematic, statistic, physic, chemistry, biology and name in in all the other non-science fields, there is always a concept of optimum level. The current economic (and financial) system had work along such a limited or optimum theories.

(2) In the general economic and even commercial theory of growth: resources, geography, human capital, and technologies are key factors. There is always a limitation to the quantum, quality and capacity of these resources to further expand the economy or the business. But is it the truth?

(3) On the other hand, our concern, is it merely about State Economic Growth? The assumption is always about High Tide Raise All Boats. But which boat that matter most? Income? Quality of Lives? Sustainability of development?

(4) Growth had always being our prime and the first target. Sound truly democratic. As growth prosper, everybody seem to be happy. Democracy prosper, a new God. Once the growth were stunted and lots didn't get the equitable share, then growth becoming an issue. Now, democracy been read as capitalist, benefiting the minority, depriving the majority. The game of the survival of the fittest.

(5) Critic over Income distribution and Welfare of the majority became an open debate. Indicators such as Pareto Ratio, Social Index, Social Justice, Development Sustainability, etc cropping hard into the academia. New political schools emerged: Socialism and Communism come into play. Unfortunately, the emergence of the Socialism and Communism theory then had turned the world into the White and Red Block. Instead of focusing on the human wellbeing, the world enter into unproductive growth, exertion of military power and dominance. Greed and wars between the Capitalist, Socialism and Communism had made the world suffering except to a few such as the Western Block.

(6) In the spiritual arena, looking from the Islamic perspective, since the conquest of Cardova of Spain by the Moore had triggered the Christian-Islamic war. The war was and continue to be a mixed of conflicts between spiritual, nationalism, trade, economic and geography. The greed and ignorance that grew with the expansion of Muslim State from the seventh to the fifteenth century bring the glory of such empire to perish. The WWI and worst the WWII turned the Muslim states into colonialism and slavery. To this day, the Muslim remain to fight and being prejudice of each others either as a State or individual. Kindly note, I'm not using the term Islam in referring to these States or people since a true Islamic State seem to die with the death of Muhammad SAW, Abu Bakar Al Sidiqque, Othman Affan and Omar Al Khatab. Maawiyah-Ali Abi Thalib conflict was the turning point of a chaotic Muslim state, though the glory span to the fourteen century, which then seeing the Muslim divided between races and geographical divide.

(7) Today, there is yet what the Muslim love to have ie an Islamic Economic Model or in totality an Islamic State. Are the Muslim really wanting to pursue the so called Islamic Economic Model? At the hind side, it is not very unfortunate, when we want to pursue such a virtue, one always impress on the don't of the Islamic teaching rather expanding on the do eg when we talk on commercial or banking system, we will always start with riba rather focusing on zakat. We never work hard to really understand why Zakat had been fixed at 2.50 percent of the gain or value of a good, while the interest rate in the Islamic (?) banking is much higher than such. Our starting point of so many thing about Islam has always been from the darkest perspective of the religion, just as the veil must be black rather make it white, I presume. What stop us from exploring Islam in broader and greater details to strengthen our steadfast to the religion?

Domestic Scenario

As everybody knows, immediately after Independence, the flamboyant soft hearted Abdul Rahman can't really manage the multi-facets socio-economic conflicting affair of the State. He was just like Sukarno-Hatta that had to face the immediate post-independent high expectation of the people. On the other side, in the emergence of International Blocking Power, the young Malaysia (as well as Indonesia and Philippines) was unconciously being draw to take side ie either communism path or capitalist ocean, without these super power realize, the Malay as a whole, globally had chosen to be a Muslim State. The Malays, had long embraced Islam long before the arrival of the West to this part of the world.

(2) When Abdul Razak Husein took over the realm of the Country in the early 70s, poverty was his main concern. Due to poverty, the national social stability and security were badly affected which further deteriorate the national growth and prosperity. His immediate step was to formulate the national macro-agenda by virtue of the formulation of the New Economic Policy (NEP). With the NEP, he then established all those special public vehicles such as MARA, Bank Bumiputera, Bank Pertanian, LUTH, PERNAS, FELDA, FELCRA, RISDA, MAJUIKAN, MAJUTERNAK, PETRONAS, MARDI,etc to really push for the economic development of the rural sector. All were public managed and funded. The World Bank was his close alley. Abdul Razak Husein developed a real talented, dedicated and good public service.

(3) He succeeded not only to reduce the poverty level but slowly bringing a better quality of lives to the target groups. He was a hard pusher. He slammed on the Implementation Coordination Unit (ICU) of his Department ie Prime Minister Department (PMD) to get everybody to move to his pace. The national economic growth and wealth distribution gain a great momentum. He passed away with some smile though he left only about RM8,000.00 in his account with no home for the family. Abdul Razak Husein established a good economic model and governance that now we slowly ignoring. I would love to dedicate his Economic and Governance Model as The People at Heart.

(4) As Husein Onn took over, social justice became the critical issue of the nation. The non-native becaming much aggressive in buying in their share of the State wealth with the facilitation of the NEP. The natives becoming not happy since their paddy, fishes and kampung fowls can’t take them to participate in the emerging corporate world. Thus, based on the LUTH model, and with the PERNAS experienced, he launched Amanah Saham Bumiputera (ASB) managed by Permodalan Nasional Berhad (PNB). Through PNB, the native collectively began to gain access into the non-native and foreign holdings. The NEP again played it part well.

(5) Hussein Onn don’t stay long as Abdul Razak Husein the elder in-law. His economic model and governance, I would temporarily termed as Social Justice Model. People, the majority still at his heart. He trailed Abdul Razak closely.

(6) Then Mahathir Mohammed took over. He faced shortage of fund. Global economic crisis. Poverty and wealth distribution gaps still mounting. Domestic political chaotic hit him hard. UMNO in fight since there was a feeling that he was not the wished candidate of Abdul Razak Husein. For earlier being seen as an Ultra Malay when he brought in Musa Hitam as his co-runner, he definitely being accepted with lots of caution. He has to push hard to be accepted. Oversea critic on NEP and ISA mount high, all but nothing more then frustration of the non-native Malaysian for not getting the equal treatment as the natives in many things. Fighting for a cake of the national wealth was his main problem. But he seem to have all the panadol for all his patients.

(7) He move fast. He garnered the private sector behind him. He pushed for much efficient service providing and out reached. He beaten the leisure faire public system. He privatized lots of public agencies: Energy, Post, Telecommunication, major construction, ports, airport management,etc. Most significant he began to corporatize lots of front line agencies such as FELDA, FELCRA, RISDA,etc. He didn’t succeed to eliminate traditional hardcore agencies such as DOA, JKR, IADP, all those RDAs but he created many new corporate entities to push his reform eg Perbadanan Putra Jaya and Multi-media Super Corridor (MSC). One very significant impact of Mahathir public agencies privatization and corporatization was the brain drained of the public services. Those talented middle age officers just exodus to the private sector leaving second if not third class talented behind to lead the public agencies. Thus creating an imbalanced management syndrome between the public and emerging GLCs, resulting in his great political interference to get thing done to his speed. A silent war began between Mahathir and the public service.

(8) Mahathir economic and governance model, I would say as speed growth. He aimed for two digit economic growth rate to achieve the Developed Nation status by 2020. Iconic development as some called them spurring. Highways, much bigger and efficient airports, bigger ports, big and long bridges, and intelligent cities were his speed growth tools.

(9) For 22 years running the Country, I would say, his first quarter was the real challenging and turning point period. The people began to gain great benefit in the second and third quarters of his administration. In the fourth quarter, he had to cry to appeal for the nation to be patience with him. He left as the people seem all were on his back to ride him off, but in fact were orchestrated by few hungry, greedy Harvard, Cambridge, Cornell, and MIT egoistic graduates working behind various silent wolves surrounding him.

(10) Mahathir seem to fail to realize the emergence of the young ambitious Malaysians particularly the polluted kids of the successful Malays to gain greater share in the national wealth distribution. As less development are going on, the in fight among the educated, inspired new breed intense and they brought it into politic and get the general public skewed and blindly followed. The poor rich manipulated the poor poor for their gain play. Anwar Ibrahim added the spice. Mahathir economic and governance model, I would say as Thwarted Economic and Governance Model, action and reaction model or forces as laid in thermodynamic physic. He stepped down giving ways to all those slanders against him.

(11) Abdullah Ahmad Badwi was then nominated to take over from Mahathir. Realising the unhappiness among the poor and the dissatisfaction of the young tugs, he move to please both. Subsidies were broaden and raised to help the poor. Streamlining and prioritizing of mega developments come to play. The EPU, ICU and Treasury were side line. Level Four of the PM Office's was established as the New Think Thank entity. Young, energetic, enthusiasm, and 'resourceful' graduates from Harvard, Cornell, MIT, and Cambridge flood the Floor. This was the group who later pocket the diverted mega projects. Malaysian economy moving to worst. Both the poor and the young tugs didn't gain sustainable benefit. The Flip Flop economic and governance model at last took Malaysia back to the starting line.

(12) When Abdul Najib Abdul Razak took over, he faced all those problems created by both Abdullah and Mahathir. Mahathir left lots of unfinished products that Abdullah suppose to carry on, which he didn't. Subsidies had to be rationalized. He established what he called as PEMANDU to guide him through all those laboratories under the spearhead of the corporate guy name Idris Jala. The different between this Abdullah Think Tank and Najib's PEMANDU, he draw the key thinkers from the private sector and GLCs. Again I would say, the experienced, dedicated civil servants were sidelined. PEMANDU controlled lot of big and quick funding under the Big Impact Development Fund. Api dalam sekam exist between PEMANDU, EPU, ICU and Treasury, but surely the smoke was not seen. Malaysian economy remain sluggish as Productive Growth as mooted by Mustapha Mohammed didn't really take it shape. Najib's people first slogan took him to all means to win the people.

(13) The real issues faced by the people were far from acknowledge and thus much firm commitment was not laid strategically. Our general Income Growth as against our Real Inflation Rate have long not been properly addressed. Reactive Economic and Governance Model is his best economic and governance approach name that I could think off.

(14) Secondly, during the last two days 11-12 Feb., 2012, I made with courage and difficulty to drive alone around the whole rings of Kuala Lumpur. I could see, the antidotes of development. Centrifugal, centripetal, agglomeration, specialization, clustering, connectivity,etc forces of development had not been well configured and well-web. Worst if we take the whole Nation into the laboratory, we would clearly seen the stupid greedy creature of politic had made the Nation to suffer.

Experience of the Stable States

What took the globe into the WWII. German, Italy and Japan formed a block called by the West as Facist. Why? Since before WWI, the Jews in Europe, particularly in German, they were the best and only best. France was the first State that took the Jews into war. Than followed by the Russia. The German sure waged war against them the hardest. All because, when the Jews as they were and continue to be, as Allah had pointed in many of His verse: ".....they can't be trusted, they were and will just be a double blade sword...". Basically, the Jews want nothing for the others until and unless they are Jews. I would say, the Jews love this world to be just 1World ie the World of the Jews. Were German, Italy and Japan really facist? Doesn't this word also come from the Jews who influence the West to take such word as the best choice of word to make the whole-rest West to be with them.

(2) Gynaecologically, if a mother is under duress at pregnancy, the birth kid will be greatly emotionally affected. Sarah the wife of Abraham, the mother of Isaac, the descendant of the Jews, the half brother of Ismail, the descendant of the Arab Muslim, was so jealous of Ismail that made her pushing Abraham to take Ismail-Hajar far into the isolated desert which is now Mecca. The history of Isaac-Sarah and Ismael-Hajar is the true manifestation of the Jews over the rest of human being. Sarah can't share the love and affectionate of Abraham with Ismael-Hajar. She want everything only for herself, without realizing once she was almost joining the brothel house of the Pharoah! She was a not thankful woman. That was how the originating of the Jews.

(3) Let see among the most stable economy of the world. I would say German, Sweden, Switzerland, Japan, Korea, Canada and New Zealand were among the best. Sweden and Switzerland were once part of the German Empire. They acquired the German characters and they keep to such characters. Look at those East and Central Europe that have strong relation with the German, they are superb State. The world best products are generated from those States that have strong German ties. German, they are not facist, there are just highly nationalistic. Hitler had implanted that to his people. Let just read, did the German say anything so bad about Hitler as compare to the West under the puppet shadow of the Jews?

(4) How about Japan? First Ghenzis Khan, using China as his base, want to cross the Pacific and conquer Japan. About 3,000 warship were built, but the Pacific guarded Japan, and she was save, but with fear still hovering. That was the first fierce threat that Japan had ever faced. With such hanging nightmare Japan walked over to Asia, if not them surely the West will do. France, British, Holland, Portugal, and American were there ready to take the unfinished dream of Ghenzis Khan. Japan act as savior of Asia under the Grand Asia dream. But, in the WWII, Hiroshima and Nagasaki blasted to the ground. Their Grand Asia Pride devastated. Some took the defeat personally while the other samurai took their pride in other form: technological advancement dedication. Japan, to me, their Samurai character matter.

(5) Korea is unique. Firstly devastated by the Korean war, then surely now sandwich between the greedy America and the hungry China, they have to develop certain level of superiority. Their human capital and technologies advancement need to evolve as fast as they could for the great survival. The only handicap, both China nad America probably don't want to see Korea to be great. They just want to keep them as nice boy forever.

(6) What about Canada and New Zealand? They are just the Western Siam. They learned and modified from the neighbors. Canada takes America and Europe as its mirror. New Zealand takes Australia and Europe as it learning ground. Both States in fact has geographical and resources advantages. Being isolated within a rich geography, they can guide their development pace and result much better.

What Needed

Man has to grow. Everything seem needed to grow or expand. Sure there is time, one has to go, die or extinct. But the rule of nature is always about recycling. Old object gone, new subject born. Not necessarily the replacement is always one-to-one. In most instance, one gone, many comes. Why? Is it to ensure Kiamah to come fast? Is Allah that really cruel, He created He destroy? Destruction is always by reason. Without which He is not what we always thought or assumed.

(2) Everything surrounding us seem need to spin. Thing has to evolve to survive. If we care to think, we will see that most ideal matters are made or created in roundish shape. The earth, the sun, the whole universe, anything, even the smallest unit of the universe ie the electron, all are rounded. All spin within certain axis. Mathematically or physically, for matter to spin or take a roundish shape, they must be created or built along the xyz axis. I would believe, our economic model must be organic, having the capacity to grow and spin. As such there must be the xyz axis of the Model that we must seriously think of.

Possible Conceptual Model

I was impressed by the book title: The German Genius. It is a book that documented on how the German took their stance on religion. Accordingly, the book reminds me of how Allah had took the challenge of the angels when Adam was created. He requested Adam to name all those that he can see, and so did the angel. Adam with no difficulty name all and any of them, but neither could the angels except that were being told to them. Almost everybody look at this as the superiority of Adam over angels, but can't we not see this from a different perspective.

(2) To me, was not Allah indirectly telling Adam and angels, analyse the nature to understand His order and as well to get guidance of His virtue, did He not say many times in the Al Quran: "....look to the world, the universe,...can't you see my virtue..?" The German, I would say, despite their ignorance of the Islamic teaching, they took Christianity in a very critical manner. They can't just accept the word of the sermon saying, God is great, God is merciful, God is...so and so. They seek to research about all the truth of those sermons. They strengthen their believe by studying and benefiting the strength of the universe. Thus they began to master Natural Science which then expand into Biology, Chemistry, Physic, Mathematic, Medicine, Philosophy, Sociology and so on.

(3) Then, taking the German as an example and surely in line with the called by the Al Quran, let us divert our thought to nature, the gift of Allah. Take a good example, water since He had said many times that whatever we have on earth, all are made of water including our very self. We are born out of water, the sperm and ovule, and suckle the first thing in life, water ie the breast milk. Water is one of the earth elements human can't control much. Others eg oil, forest, animal, etc, men had put their hands all over. Some in great good governance, while others had created chaotic (depletion and extinction).

(4) In the case of water, there are surface and under ground water. The surface water evaporated and formed the fogs and clouds. The rotation of the earth generated the winds and push the cloud all over. Then the wind and the height unite the cloud into heavy mass and thus drops as rains. The rain then again recycle as the surface water and again as fog, cloud and so forth. In certain cases, the snow were form and melt as the temperature raised beyond zero. What is then the significant of these water phenomenon to our the possible economic model could developed?

(5) Water is associated with fluidity. As long as the water move, it will be useful. Fishes breed well in moving water. Stagnant water collect dirt and even poisonous. Mosquitoes, the human enemy breed well in still water. Thus in moving our economy, the factor of wealth growth must be fluid. Human being, resources, technology, skill and so forth must be a very fluid factors. We must not confine all these resources at one place. Our State or Nation must be a fluid nation. Things must move from Padang Besar-Rantau Panjang to Lahad Datu. We can't just developed Kuala Lumpur, Putra Jaya and Labuan just because they are Federal Territories and are under direct Federal Government control. Kelantan, Kedah, Perlis, Penang and all the other states must be equitably develop to mave the National Economy really a national representation.

(6) Let think of the bees and ants. They build hives. The size of each hive is limited to certain scale. Accordingly, though bees love to build their home on big strong trees, but there always a limit to the numbers of the hives. What cause this limitation? Feeding area? Species of the bees or ants? What do all these mean? Is Allah not trying to make us think and learn thereon? Look at the structure of the hive. Webs of hexagonal lattice. Why must it takes such form? Let alone the engineering stability of the structure, let focus on the perfection of space and resources management. Then can we not try to figure out that the cells of our economic factors not be configured in such a system?

(7) Look at a fruit, say papaya. It never forever growing. It matured. Ripen and if not harvested by man, the bird or monkey will eat it then spread the seed all over. Such a fragile crop such as papaya still sustain to this day, due to such a dispersal capability. Thus, our economic policy or governance, does it really take this into the spirit of the whole system. A combination of the hive and the seeds dispersal of plants don't they not reflecting for the need of limitation, buffer and new growth area.

(8) How much papaya a tree can bear? What factors determine the number of the fruits for each tree? What then this mean in the economic management matter?

(9) Probably, we had been looking at our economy too much from the Statistical Science that the organic or ecological paradigm of the system had been ignored. Or probably our academic system is too compartmentalize that the most creative thinking of our people are well nurtured? Say, an Islamic scholar, whom master in Arabic, did he/she also read science and social science. Though he/she may can understand the Al Quran better, but can he/she really dig the best from such a Grand Master Book? I doubt!

(10) Let me take a brief history of how Muhammad SAW had developed an Islamic State. Sure, for the Muslim, Madinah during Muhammad SAW time was the perfect Islamic State. How did he did it? First he built the Mosque. The Mosque not only was a place to worship Allah, but was also a place of congregation. A grand meeting place. But how did he choose the location of the Mosque? Did he not chosen the location close to the Bazaar? Did he then not built his home and encourage all the other followers to do the same close to the Mosque. What else did he then did? Farming. Animal ranching? Then his disciples built more Mosque? How did they came to the decission to build more mosques? Did they not taking into serious account the organic framework of the whole society not being seriously considered? I would guess, the same system was applied by the Abbasyah and Ummayah in Baghdad and the Orthoman of Cordova, with the very unfortunate, probably greed, as I would figure, had blinded them to recognize the limitation of the bees hive as a model that they must be aware and recognize.

(11) The death of Muhammad SAW had been read too much from the perspective that Allah love him better such that he must come back to Him. If one recognize that Allah knowledge beyond one thought or even the whole human thought, then there is nothing wrong to also realise that the death of Muhammad SAW has something to do with Allah silent teaching that man can't do everything, not even His best prophet. Thus, implying this in the economic management sense, there must be a limit to a governing system. Not everything must be managed by the Federal or State Government. Distribution of authorities must be facilitated and nurtured to allow for greater creativity. Allah doesn't created only the Malays, there are Chinese, Indian, Black, White and many others, all are to allowed for creativity development.

(12) Is there any possibility that if we take Madinah as a Model, then can we not say the Mosque as the base of the Model. If we draw the XYZ axis, then the Mosque should be located at the meeting point of all these x,y, and z axis. Then, what would be the X, Y, and Z axis. If then we just have the xyz axis, are we then not only able to create a quarter spherical object or subject. Thus to spin, to easily evolve, we need a total parabolic or spherical form. In this sense, had not Allah created the four direction of the globe, North, South, East and West. What would then this signified?

(13) Anywhere, for initial exploration, let take Madinah as the Model. Say the Nabawi Mosque as the starting point of the xyz axis. Firstly, then can we not now say the Y ie as the north pointing axis, as the morale build up that Muhammad SAW had intended through the Nabawi. But again, we should take into the totality of such concern of Muhammad SAW, not merely from a singular schlar perspective. In the modern term, I would say this is a matter of Human Resource management. As again a word of cautious, the term HR must not be seen again from a singular persepctive, it should be in totality! What would then Muhammad SAW vision of his Human Resource values that and ideal Islamic society must have? Are we really on this track? Secondly, then the x axis, let say the one that points to the East. What would the elements or components of this x axis? Can we not say, those would be all those non human related resources ie the natural endowment that we have? Thirdly then the z axis, the axis that points to the North-East, what would be the elements that then should make this axis? Can we not say the space? Then, what would the conception of the space that we must look at? Is it a mere geographical space or should it not govern the evil politic that the West had so addicted with. How was the subject of States or governing boundaries being defined in the old Islamic State of Muhammad and his disciples. Accordingly, how had they handle the non-Muslim States in their time?

(14) It is not Allah well planned challenge to Muhammad and his close allied that within the ideal Muslim societies that they want to build, the Jews, the most untrusted human, were among them? Unfortunately, I would say, we can't see the beauty of all these deceptions as something that should make us the present Muslim to be much smarter and tougher in dealing with our presence and future lives.

(15) In summary, I would say, our economic problem is wrt to our intellectual development or governance that had had not able to facilitate of the development of Thinking Society among our people. Most of us are western educated, they thought us, and we just follow of what they have thought, without much of us willing to further explore or enhance the knowledge that we have beyond what we had learned in the classes. We are having a very serious Human Resource Management issue which boil down to our traditional structured education system.

(16) As I have touched in the past, we must have some schools and universities that dedicate to facilitate for the development of thinkers for the nation or even the globe. These are schools and universities that produce multi-talented students and graduates that have undergone muti-disciplinary teaching. We must have courage to develop these schools or universities.

(17) Our political system should move fast beyond the greed to govern without the intend to deliver. Accordingly, delivery must not be seen from a political management greed, rather it must be seen from the overall national welfare. It must be remembered, originally politic was about power sharing, but then turn into a tool of power consolidation. Let learn from some of the American, Canadian, New Zealand, German or even Switzerland ways of managing their factor of growth. Let us seriously look back at the early development of Madinah and Mecca as well as thereon Cordova and Baghdad as some benchmark. In Islam, the notion of: everything is belong to Allah and it is for all, not only for any particular nation or group of people. As a Muslim we must work on this Fair and Just Economic Governance for the sake of the ummah, the whole human being, for Allah.

terasi, simunjan, sarawak
3-22 feb, 2012