China's Bo Xilai on trial

JINAN, Aug. 23 -- Jinan Intermediate People's Court in east China's Shandong Province continued to hear the case of bribery, embezzlement and abuse of power involving Bo Xilai for a second day on Friday.
 

The 64-year-old Bo is former secretary of the Chongqing Municipal Committee of the Communist Party of China (CPC) and former member of the CPC Central Committee Political Bureau.

Prosecutors accuse Bo accepted bribes worth about 21.8 million yuan (about 3.5 million U.S. dollars) from businessmen Tang Xiaolin and Xu Ming and embezzled five million yuan in public funds from the Dalian municipal government. He was also accused of abusing power when dealing with his wife Bogu Kailai's murder case and the defection of his associate, Wang Lijun, in 2012.

On the second day of the trial, prosecutors presented evidence that Bo accepted a large sum of money and property from Xu Ming through his wife, Bogu Kailai, and his son, Bo Guagua.

In the morning session prosecutors presented documentary evidence and played a video recording of Bogu Kailai's testimony on Aug. 10 this year.

Prosecutors also read testimony by Bogu Kailai and Frenchman Patrick Devillers.

Video and audio evidence shown in court indicated that Xu Ming provided funds for Bogu Kailai to buy a villa in France worth over 2.32 million Euros (16.25 million yuan), and that Bo Xilai was aware of this.

In the afternoon session, evidence included testimony of witnesses including Zhang Xiaojun, photographs of material evidence, confessions and the handwritten confessions of the defendant, proving that through his wife and son, Bo received almost 4.43 million yuan from Xu Ming, to pay for international and domestic air tickets, accommodations and travelling expenses, to pay off credit card debt, and buy a Segway scooter.

Prosecutors, the defendant and his lawyers examined the evidence.

Facing key facts of the charges, Bo defended that the evidence was irrelevant, saying he had only a vague impression of amounts and no one had told him exactly how much money was spent. His lawyers expressed views on the truth of witnesses' testimonies and the legality of the documentary evidence.

Prosecutor responded directly, pointing out that the defendant had expressed numerous conflicting views on key facts during his defense.

Prosecutors said that the evidence presented in court was taken legally from clear sources and should be examined comprehensively in the context of the entire case.

Wang Zhenggang, then director of the Dalian municipal bureau of urban and rural planning and land, appeared in the afternoon to testify on embezzlement charge against Bo.

Wang was handled in a separate case.

The court will continue to hear the case on Saturday to maintain the continuity of the trial, as agreed by prosecutors, the defendant and his lawyers. 

- Contributed by DuMingming、Liang Jun

Bo's trial updated live on microblog

A woman views the Chinese social media website Weibo at a cafe in Beijing on April 2, 2012 (AFP/File, Mark Ralston)



The highly anticipated trial of former politburo member Bo Xilai began Thursday, surprisingly with an almost unprecedented flood of real-time information about the proceedings.

The Jinan Intermediate People’s Court used Weibo, a popular Twitter-like microblog service, to deliver a running account of the trial since its start. The number of followers of its microblog page has jumped from less than 10,000 on Wednesday to over 300,000 by 7 pm Thursday. The court also arranged a media lobby at a nearby hotel, to provide live feed of trial details to reporters.

This is the first time details of a trial of a senior Chinese official have been released real-time to the public. In the past, such high level court trials took place behind closed doors, with details being released only after sentencing.

Bo calls wife mad after she testifies against him 

JINAN, China (Reuters) - Fallen Chinese politician Bo Xilai called his wife insane after she testified at his landmark trial on Friday that he knew of money and a villa in the French Riviera that prosecutors say were given to the couple by a businessman friend.

The video and written testimony by Gu Kailai directly contradicted Bo's robust defence on Thursday, and appear to set him up to be found guilty in China's most dramatic trial since the Gang of Four were dethroned in 1976 at the end of the Cultural Revolution.

"He should know about it all," Gu said in a video recording shown in court and posted on the court's microblog, when asked whether Bo knew that she and their son, Bo Guagua, had received money from plastics-to-property entrepreneur Xu Ming.

Bo dismissed Gu's testimony as the ravings of a madwoman.

"Bogu Kailai has changed, she's insane, often tells lies," Bo said, according to transcripts on the court microblog, using Gu's official but rarely used name. "Under the circumstances of her mental illness, the investigators placed huge pressure on her to expose me.

"Her testimony as far as I am concerned, was (given) under psychological pressure, and driven by (hope of) a reduced sentence," he added.

Gu has been jailed for the murder of British businessman Neil Heywood in November 2011, the crime which eventually led to Bo's downfall.

The businessman Xu, who is also in custody, was once close to the Bo family, but also testified against him on Thursday, according to the transcripts. Foreign reporters were not allowed into the court.

Bo, the 64-year-old former Communist Party chief of Chongqing metropolis, has been charged with illegally taking almost 27 million yuan (2.82 million pounds), corruption and abuse of power. Of that amount, about 21.8 million yuan came from Xu and another businessman Tang Xiaolin, the court said, citing the indictment.

Bo was a rising star in China's leadership circles when his career was stopped short last year by the scandal involving Gu.

Supporters of Bo's Maoist-themed social programmes say he lost out in a power struggle with capitalist-leaning reformists in Beijing, exposing divisions within the ruling party as well as Chinese society.

Last week, two sources told Reuters that Gu would only testify against her husband if a deal had been reached with authorities to protect their son.

A deal in which Bo can be swiftly convicted and sent to jail, sparing him a death penalty and with no repercussions for his son, would be in the interest of China's leadership, which wants the trial to be concluded without causing open friction between Bo's followers and critics.

On Thursday, observers said the court proceedings were probably scripted and that Bo could receive a pre-arranged sentence in exchange for limited outbursts that would show that the trial was fair, appeasing his followers.

The trial will continue for a third day on Saturday, the court said, despite expectations it could last just a single day.

VILLA IN NICE

In written testimony, Gu said she had shown Bo the graphics and slideshows for the design of a villa in Nice, France that was paid for by Xu. Bo asked her about the slideshows and according to Gu, she told Bo about Xu's involvement.

"Therefore he knew that I asked Xu Ming to pay for this villa in France," Gu said in her written statement.

In the poorly shot video, Gu appeared soft-spoken and composed as she was questioned by a worker from the state prosecutor's office. She laughed when asked whether she had been coerced into giving evidence.

Gu did not link Bo with Heywood's murder, but said he was aware she considered the Briton a threat to their son. According to testimony at Gu's trial, she killed Heywood because he had threatened Guagua after a business dispute with Gu.

Gu said Bo was also aware of her fears about the safety of Guagua, who is now in the United States
preparing for a law degree at Columbia University. Gu said she was afraid Guagua "would be kidnapped and killed in America".

"In 2011, Guagua's personal safety was threatened and Bo Xilai understood this," she said in her written testimony.

"We drew up a blacklist of suspicious people. One of them was Neil Heywood. I explained all of this to Bo Xilai."

Bo could face the death sentence, though a suspended death sentence is more likely, which effectively means life imprisonment, or a 20-year term.

Contributed by John Ruwitch - The Star (Additional reporting by Judy Hua in JINAN and Sui-Lee Wee, Ben Blanchard and Hui Li in BEIJING, Writing by Sui-Lee Wee; Editing by Raju Gopalakrishnan)

Bo's trial updated live on microblog

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China's content-rich microblogs

China's content-rich microblogs

Sites like Sina Weibo can even get Western figures and celebrities, like boxer Mike Tyson, to come aboard.

WHILE Twitter is blocked in China, there are local microblogging sites to keep me informed and entertained.

Among the providers for microblogging service include Sina, Tencent, Xinhua, Souhu, People’s, Phoenix, NetEase and more.

Sina tops the list with 500 million registered users and 46.29 million daily active users as of December 2012.

Its popularity is proven with public and media using “Weibo” to refer to its microblogging site, although Weibo stands for microblog in general.

(Twitter has over 200 million active users churning out 400 million tweets a day, according to its blog post in March this year.)

The Chinese microblogging sites have similar basic features as their US counterpart, such as tagging other users with the symbol @, trending topics with hashtags and posting within an allowed character limit.

But what sets Weibo apart from Twitter is the rich media content.

Besides photos and animated GIF, some Weibo allow users to embed video and music files, and start a poll in their posts.

These elements have enhanced the Weibo surfing experience and created an entertaining platform for all.

A unique feature on Sina Weibo is the charity platform. Users can initiate a charitable cause, pledge donation, sign up as volunteers or simply repost a cause.

I am drawn to Sina Weibo for one simple reason – you can find almost everyone on it, from celebrities to writers, and government departments to restaurants.

Many of the official accounts are well-maintained, providing frequent and useful updates.

While Chinese president Xi Jinping does not have an official account, there is an account dubbed “Xuexi Fensituan” (Learning from Xi Fan Club) dedicated to disseminate news and photos of his activities.

The account owner has denied speculations that the account was a publicity effort, claiming that he was only a supporter.

Sina Weibo, which was launched in August 2009, is celebrating its fourth anniversary this month.

In an unaudited financial report for the second quarter of 2013, Sina Corporation announced a 209% year-on-year growth for its Weibo advertising revenue, which amounted to US$30mil (RM98.74mil).
The non-advertising revenues also increased from US$23.8mil (RM79mil) in the same period last year to US$32.2mil (RM106.9mil).

Back in April, China’s e-commerce giant Alibaba invested US$586mil (RM1.9bil) to purchase an 18% stake in Sina Weibo. This deal valued Sina Weibo at US$3.3bil (RM10.86bil).

The population on Weibo continued to beckon Western figures and celebrities to come on board to reach out to their Chinese fans.

The latest to join Sina Weibo was retired American boxer Mike Tyson, whose username is “Quanwang Taisen” (King of Boxing Tyson).

After greeting Chinese fans on his maiden post on Monday, he went on to ask who is the best fighter in China.

Amid the genuine replies (Donnie Yan and Jackie Chan, for instance) came an answer that had everyone in stitches – chengguan.

The term refers to the city management officers who are often labelled as abusive for getting involved in physical brawls with street vendors.

A clueless Tyson then asked, “Who is Chengguan? A tough man? I’ve never heard it (sic).”

He mentioned it again in a post later, “So many guys talking about chengguan as a great fighter? Still not a clue about him … All I’ve heard about are Jet Li, Jackie Chan, Donnie Yen, and wait wait, the Chinese dama (middle-aged women)!”

(Local news reports said the term Chinese dama became a popular term when the women rushed to snatch up gold.)

Needless to say, Tyson’s Weibo went viral, attracting 200,000 followers in just three days.

Although Sina Weibo has a reputation for self-censorship – posts with sensitive topics or keywords are deleted – it remains largely as a platform for freedom of expression.

It was even described as China’s Hyde Park in a report by Xinhua in December 2011: “… An open space where people feel free to participate in public affairs”.

As such, Weibo is the place to gauge public sentiments and there are calls lately to urge opinion leaders to observe their social responsibility on social media network.

Contributed by Tho Xin Yi

• Tho Xin Yi (thoxinyi@thestar.com.my) sees Weibo as a tool to get first-hand news and gain insight into the Chinese society. She follows 329 users on Sina Weibo.

Serious deficits that cannot be financed could lead to bigger global crisis!

A bigger global crisis possible

GEORGE TOWN: A global financial crisis bigger than the one in 2008 is conceivable in five to 10 years.

Value Partners Group chairman and co-investment officer Cheah Cheng Hye said the crisis, which would not be V-shaped in nature, would bring about capital flights, volatile markets, rising inflation and social unrest.

“The global financial crisis would have to do with the very serious deficits that cannot be financed.

Developed and developing countries have over the years accumulated such deficits by making promises that cannot be realised in order to get re-elected.

“These deficits would sow the seeds of future social and political unrest,” he said at a public lecture entitled From Journalist to Fund Manager, which was officiated by Penang Chief Minister Lim Guan Eng.

Also present was Penang Institute chief executive officer Zairil Khir Johari.

On Malaysia, Cheah said Value Partners was not bullish about the country.

“Malaysia’s Government and household debts are higher than those in Indonesia, China and Thailand. Half of the country’s government bonds are held by foreigners, who would be the first to run in a crisis.

“The Malaysian workforce is now less productive than the workforce in Thailand and the Philippines. Malaysia is also importing more oil than selling it,” he said.

On making investments, Cheah advised investors to have well-diversified portfolios.

“They should have investments in gold, real estate and a high level of cash of at least 25% of their savings to prepare for future uncertainties,” he said.

Cheah attributes his success to being at the right place at the right time more than the decisions he chose to undertake.

Born in Penang, Cheah, 59, has been dubbed the “Warren Buffett of the East” by the media in Hong Kong.

A Penang Free School boy, Cheah had worked as a journalist in The Star in the early 1970s.

- Contributed by DAVID TAN  davidtan@thestar.com.my

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Bank Negara revises downwards Malaysia's GDP to 4.5~5.0% for 2013, Currency volatility manageable, Current account slumps

KUALA LUMPUR: Malaysia’s economy in the second quarter of the year grew at a slightly faster pace, but below market expectations, as prolonged weakness in the external environment remains a drag to domestic economic activity.

Gross domestic product (GDP) for the three months to June grew 4.3% year-on-year (y-o-y), sustained by domestic demand, as compared with market expectations of a 4.7% y-o-y growth for the period in review, and a GDP growth of 4.1% y-o-y in the first quarter of the year.

“While domestic demand in the Malaysian economy has remained strong, the overall growth performance has been affected by the weak external sector,” Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said at a press conference.

She noted that the phenomenon was not unique to Malaysia, as growth in several economies in Asia, particularly those that were export-oriented, had also moderated in the second quarter, as the prolonged weakness in the external environment had started to affect the countries’ domestic economic activities.

“For the Malaysian economy, the prolonged weakness in the external environment has affected the overall growth performance of the economy, going forward,” Zeti said.

“While domestic demand is expected to remain firm, supported by sustained private consumption, capital spending in the domestic-oriented industries and the ongoing implementation of infrastructure projects, the weak external in the first half of this year would affect our overall growth performance for the year,” she added.

Consequently, Bank Negara has revised downwards the overall GDP growth target for Malaysia in 2013 to 4.5%-5.0% from its earlier target of 5%-6%.

“We are expecting a challenging environment, with little improvement in the second half of this year,” Zeti said, adding that domestic demand was expected to remain on its steady growth trajectory and would continue to be supported by an accommodative monetary policy.

Meanwhile, Malaysia’s current account surplus for the second quarter of the year narrowed to RM2.6bil from RM8.7bil in the preceding quarter. This was due to lower goods surplus as well as sustained services deficit and outflows in the income accounts.

Zeti said Malaysia would likely remain in a surplus position through the year, as the expected recovery in external demand, albeit at a moderate pace, would help improve the country’s current account balance.
In addition, Zeti said the Government was considering various options to improve Malaysia’s current account balance. These include scaling back some large projects that had high import content, increasing the country’s economic competitiveness and diversifying its export markets.

She said that Malaysia continued to enjoy a steady flow of foreign direct investment, which could contribute positively to the country’s current account balance.

Zeti and other Bank Negara officials during the Second Qtr 2013 GDP press conference in Kuala Lumpur on Wednesday. - Sia Hong Kiau/The Star 

On another note, Malaysia’s inflation, as measured by the increase in consumer price index (CPI), remained modest in the second quarter of the year. The CPI grew 1.8% y-o-y, compared with 1.5% y-o-y in the preceding quarter, due to price increases in the food and non-alcoholic beverages and housing, water, electricity, gas and other fuels categories

-  Contributed by CECILIA KOK  cecilia_kok@thestar.com.my

Malaysia can manage currency volatility 

KUALA LUMPUR: Malaysia had the capacity to manage its currency volatility, Bank Negara said, as it brushed off concerns of an Asian contagion risk.

“We had demonstrated our ability to handle such a weakness at the height of the global financial crisis in 2008/09, and therefore, would be able to do the same in the current environment,” the central bank governor Tan Sri Dr Zeti Akhtar Aziz said at a press conference.

In highlighting Malaysia’s strengths that would enable it to deal with the present volatility, Zeti said: “Firstly, we have strong intermediaries, and a well-developed financial market.

“Our bond market is one of the largest in South-East Asia, and we have a strong presence of institutional investors who can absorb any selling of our Malaysian Government securities. In addition, our reserves level currently is at its strongest ever and we have a low level of external indebtedness.”

In line with the performance of some regional currencies, Malaysia’s ringgit has weakened against the currencies of major economies in recent months.

Year-to-date, for instance, the ringgit has fallen around 7.7% against the US dollar to close at 3.2947 per US dollar yesterday, compared with 3.0580 per dollar at the start of the year.

Said Zeti: “We are seeing highly destabilising capital flows and this is within our expectations because we had earlier seen huge inflows into our financial system, as experienced by most emerging markets, when quantitative easing (by major developed countries) took place. We received something like RM70bil in inflows in search of higher returns.

“Now that there are discussions on tapering the quantitative easing, some of these funds would return to their respective economies, in particular, the United States. We expect that there would be reversals (of capital).

“This is not the first time we are seeing this phenomenon. Previously, at the height of the financial crisis in 2008/09, we also saw huge surges of capital flows. But then, deleveraging set in (as major developed nations attempted to reduce their indebtedness), which resulted in a significant reversal of funds, and that precipitated a depreciation in our currency and a significant decline in our reserves.

“But we demonstrated during that time that our financial system was able to cope with this (volatile condition), and therefore, we would be able to do the same in the current environment,” Zeti said.

She added that when global economic recovery improved further, the country’s financial markets would eventually move to reflect fundamentals.

“Our domestic economic fundamentals are strong. We have been able to have strong and resilient domestic demand, which grew at 7.2% year-on-year during the second quarter of this year.

“The private-sector investment is still growing at double-digit rates and investment activities are still holding up well. We have low price pressure in this environment and our labour market conditions remain stable,” she said.

- Contributed by CECILIA KOK  cecilia_kok@thestar.com.my 

Malaysia's Current Account Slumps In Q2, GDP Growth Picks Up 

KUALA LUMPUR: Malaysia's current account surplus plunged in the second quarter on weakening exports, overshadowing a slight acceleration in economic growth and highlighting the country's vulnerabilty to market selloffs that have rocked several other Asian economies.

The Indian rupee hit record lows this week and Indonesia's stock market and currency plunged on concerns that their worsening current account deficits left them exposed to an expected withdrawal of U.S. super-loose monetary policy.

Fears that Malaysia and Thailand could join that club have pushed their currencies to multi-month lows in recent days, raising concern that the market contagion could spread to economically healthier countries in Southeast Asia.

Data on Wednesday confirmed that Malaysia's current account surplus is evaporating fast, falling to 2.6 billion ringgit ($790 million) in the second quarter from 8.7 billion ringgit in the first three months and 22.9 billion ringgit before that, reflecting plunging exports and solid imports.

Still, the decline was not as much as some economists had fears.

Economic growth accelerated slightly to 4.3 percent in the April-June period from a year earlier, helped by pre-election government spending and a pick-up in activity after the May polls, but fell well short of economists' expectations of 4.9 percent.

In a nod to the deteriorating growth prospects, the central bank cut its forecast for full-year growth to 4.5-5.0 percent from 5-6 percent.

Malaysia, which is heavily dependent on its exports of commodities such as palm oil, could soon be recording its first current account deficits since the 1997 Asian financial crisis.

"I think the era of strong double-digit current account surpluses is over," said Lee Heng Guie, an economist at CIMB Investment Bank in Kuala Lumpur.

"Unless an export recovery materialises and is supported by a revival in commodity prices, the surplus will still be narrowing for the next two years."

CAPITAL OUTFLOWS

Central bank Governor Zeti Akhtar Aziz said that Malaysia was expected to maintain a current account surplus this year, and could cope with the current "highly destabilising" capital flows.

"This is not a new phenomenon. We coped with it before," she said, adding that the economy was expected to remain supported by strong domestic growth.

Sales of Malaysian bonds by foreigners, who hold almost half of the country's government debt, could be absorbed by Malaysian institutions including the insurance industry, she said.

Other data on Wednesday showed that inflation ticked up to 2.0 percent in July from 1.8 percent in June, in line with market expectations.

Manufacturing output rose 3.3 percent in the second quarter after subdued growth of 0.3 percent in the first, while mining activity picked up 4.1 percent after shrinking in the first three months of the year.

Many businesses put investment plans on hold in the first quarter ahead of the tense national election in May that was narrowly won by the long-ruling National Front coalition.

Investment has been rising strongly as Prime Minister Najib Razak pushes through his $444 billion Economic Transformation Programme aimed at doubling per capita incomes by 2020, but that has also pushed up imports, undermining the current account.

While economists note that Malaysia has a much stronger external position than Indonesia, its weaknesses include a stubborn fiscal deficit, a relatively high government debt of 53 percent of GDP and one of Asia's highest household debt levels.

Najib faces a possible leadership challenge from within his ruling party in October, raising uncertainty over his pledge to cut the budget deficit of 4.5 percent of GDP. He has pledged to announce steps to improve the fiscal position in his budget address in October.

Malaysia's ringgit has tumbled more than 7 percent this year to three-year lows around 3.3 to the dollar and is among Asia's worst performers this year. On Wednesday, it weakened further ahead of the data, falling 0.2 percent to 3.2940.

"It is just a liquidity event that hurt everyone," Abdul Farid Alias, the chief executive of Malayan Banking Bhd (Maybank), Malaysia's biggest bank by assets, told reporters on Wednesday.

"The fundamentals of the economy in Malaysia, of our organisation, remain strong."

The Malaysian data follows Thai gross domestic product figures released on Monday that showed a surprise contraction in second-quarter growth, partly due to weakening exports.

Regional economies have built up hefty foreign reserves and sharply reduced foreign currency debt since they were devastated by the Asian financial crisis in 1997, making them less vulnerable to flighty foreign capital.

Data from the Bank for International Settlements shows Malaysia has enough reserves to cover four times its short-term external debt, while Thailand has 6.8 times. Indonesia has only 1.7 times.

Kelvin Tay, regional chief investment officer Wealth Management Southern Asia-Pacific, said that while Asian debt levels had risen since the 2008 financial crisis, they were mostly sustainable because of higher growth rates.

"We have actually gone up (in debt) but don't forget the economies here are at growing at 6.5-7 percent as a whole," he said. "If you have growth of that kind of level you can certainly sustain the debt levels. If your growth falls to 4-4.5 percent then, yeah, you are in trouble."

Malaysia's central bank left its key policy rate unchanged at 3.0 percent at its last meeting in July, but warned that the weak global environment may hurt growth prospects. However, a pick-up in inflation and further weakness in the currency could prompt it towards a tightening bias- Reuters 

Malaysia-Market Factors To Watch On Aug 21

NEW YORK: Following is a list of events in Malaysia as well as news company-related and market news which could have an influence on the Malaysian market. 

GLOBAL MARKETS-U.S. bond yields retreat from 2-year peaks; Wall St recovers SE Asia Stocks- Indonesia near year-low; Thai stocks drop 2 pct WHAT IS HAPPENING IN MALAYSIA, IN TIMES LOCAL FOLLOWED BY GMT: Statistics Department releases July 2013 Consumer Price Index at 1700pm (0900). * Bank Negara Malaysia releases second quarter 2013 GDP at 1800pm (1000). Central bank governor Zeti Akhtar Aziz holds press conference earlier at 1545pm (0745). Malaysia Airlines' Business Plan update, Malaysia Airlines Academy, Kelana Jaya, 1200 pm (0400). Maybank Group half-year financial results announcement, Menara Maybank, Kuala Lumpur, 1300pm (0500).
MARKET NEWS
Nikkei tumbles to 7-week low on Fed uncertainty, emerging mkt fears US STOCKS-Wall St bounces to end four-day skid; retailers gain TREASURIES-Yields fall as buyers step in, emerging markets roiled FOREX-Dollar slides against euro and yen ahead of Fed minutes; PRECIOUS-Gold turns higher as dollar down ahead of Fed minutes; U.S. oil drops on pipeline outage, contract expiration; VEGOILS-Palm oil eases after rally, export demand caps losses.
MALAYSIA IN THE NEWS: PREVIEW-Malaysia Q2 GDP seen growing but current account in focus Malaysian planter Kulim's offer blocked for London-listed New Britain Malaysia's Aug 1-20 palm oil exports up 12.3 pct -SGS Malaysian Airline posts Q2 net loss of 175.98 million ringgit Muslim Rohingya asylum seekers escape Thai detention centre Malaysia's Aug 1-20 palm exports up 10.3 pct -ITS - Reuters

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It's not about rights or peace

There are many reasons why crimes happen, but let us not get befuddled by the view that we have to sacrifice our rights in order to live in peace.

Murder victims: Police personnel bringing out the bodies of the five men who were gunned down at an apartment in Sungai Nibong.

It is quite nice to hear the Prime Minister declare that any future development in criminal laws will not infringe upon human rights. Well, let’s hope that is true.

The thing is, by this statement there is an unsaid implication that human rights and crime are something that are somehow related. One retiree for example said that the price for more freedom is higher crime.

I wondered if this is true. After all, in our country, we respect the old, so perhaps there is some wisdom in this octogenarian’s statement.

So, I decided to poke around the information superhighway (Hah! Bet you haven’t hear that term for a while), and I chanced upon a study done by the United Nations office on drugs and crime in 2012. The study was a comprehensive survey of homicides around the world.

If greater freedom equates with greater crime (here the crime in question is murder), then we should see countries with the greatest civil liberties leading the pack. Crickey, a place like Denmark should, theoretically, be littered with dead bodies everywhere. You shouldn’t be able to walk to your corner shop to buy your poached cod or whatever is eaten in those parts, without having to step over cadavers riddled with bullet holes.

After all, they have ratified about thirty human rights treaties (including one against the death penalty); their criminals must be running around high on Carlsberg and whacking every Thor, Dag and Hagen that they come across.

But, this is not the case. They have one of the lowest murder rates in the world. 0.9 per every 100,000 people. To give that some sense of perspective, our murder rate is 2.3 per every 100,000 people. In fact, looking at the study, we see that there is simply no correlation between civil liberties and crime. The regions with the highest homicide rate tend to be those which are desperately poor.

Now this is of course a cursory amble of the Internet on my part and not some serious academic study, but it seems to me that it is very clear that to equate more human rights to more crime is simply not supported by the facts.

The reason I raise this is that we are often faced with the argument that it is one or the other. Rights or peace. This is simply not the case.

In the light of the recent spate of high profile and horrific crimes that we have faced and the police force’s “war” on gangsters, let us not get befuddled by the view that we have to sacrifice our rights in order to live in peace.

There are a myriad of reasons why crimes happen and these must be examined and studied so that any “war” on crime has to be fought on the correct “battlefield”.

For example, poverty and the vast disparity of wealth between the haves and the have not’s seem to be one of the things that the world’s most murder ridden nations have in common.

It sure as heck is not their observance of human rights principles.

So, yes, let us make all efforts to ensure that this country of ours has the least crime possible, but leave our rights (what little of them we have) well enough alone.

 Brave New World by AZMI SHAROM
Azmi Sharom (azmisharom@yahoo.co.uk) is a law teacher. The views expressed here are entirely his own.

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Why nations fail or succeed ?

This is much the East can learn from the West on economics

 

AUGUST is the holiday month – the time when we pause to take stock of a hectic first half year, and wonder what lies ahead.

Nestled in the hills of northern Laos, the ancient city of Luang Prabang sits around a bend in the river Mekong, isolated for centuries and renowned today as a city of 15th century Buddhist temples, protected as a Unesco Heritage site. It is a good place to catch up on one’s history to try to comprehend the uncertain future.

The recent best-seller by Massachusetts Institute of Technology economics Prof Daron Acemoglu and Harvard political scientist James Robinson, Why Nations Fail: The Origins of Power, Prosperity and Poverty (Penguin 2012), argued that national failure were all due to man-made factors, more specifically, how political institutions became extractive, rather than inclusive.

Acemoglu and Robinson is provocative because they stir up the debate on why Latin American economies never quite made it, even though they are resource rich. They did not succeed despite huge wealth because their political institutions remained extractive, meaning a few hundred families or elite essentially controlled the key resources of the continent for their own benefit.

Another obvious example is the difference between North Korea, one of the poorest countries around, and South Korea, an innovative and dynamic economy capable of challenging the best of the West, by learning from the West.

The Acemoglu and Robinson book touches on a raw nerve because many in the West are unsure whether they will continue to be dominant in the years to come. They argue that China will sooner or later stop growing because the institutions there are becoming extractive. But as one review argued, it cannot be ruled out that Chinese institutions would evolve into inclusive systems. After all, China could not have succeeded without being inclusive – taking more than half a billion out of poverty

In the same genre, Stanford Professor of Classics and History, Ian Morris’ 2011 book, Why the West Rules – For Now: The Patterns of History and What They reveal about the Future, takes also the grand sweep, arguing not only about the factors of biology and sociology, but also about geography.

So instead of Acemoglu and Robinson’s dictum, “institutions, institutions and institutions”, Morris considers that it is more about “location, location, location.” He argues that biology and sociology explain the similaries in development between the East and West, but “it is geography that explains why the West rules.”

This view concurs with Asian historian Wang Gung-wu’s perceptive insight that the West developed maritime and today air and cyberspace technology and power, whereas China remains essentially a continental or land-based power. Geography does shape behaviour and perception.

Personally, I am less persuaded by what caused nations to fail than what caused them to succeed, and not just succeed for a few decades, but remain relevant for centuries.

Most people forget that the first modern economy in the world was not Portugal or Spain, or England, but Holland. Even though the Portuguese and Spaniards opened up the maritime routes to America and the Spice Islands, they remained feudal powers that never evolved the institutions to manage their colonies efficiently and professionally.

Last month in Amsterdam, I was given a copy of Marius van Nieuwkerk’s history of Dutch Golden Glory: The Financial Power of the Netherlands through the Ages (2006). This wonderful gem of a book, beautifully illustrated, attributed the rise of Holland as a conquest of man over water. As we all know, Holland has only a population of 16.6 million, in an area 20% larger than the island of Taiwan, ranked 17th in the world in terms of GDP, and 14th in terms of GDP per capita, at US$46,100 just behind the United States (US$50,000) and Japan (US$46,700), but ahead of old rivals, UK (US$38,600).

Historically, because of constant flooding in its low-lying land, the Dutch learnt to work cooperatively to build dykes, through “poldering” – constant irrigation, drainage and pumping of water. Thus, in their constant struggle against flooding and weather risks, the Dutch developed their infrastructure cooperatively, learning how to manage risks through precaution (high savings), consultation (constant feedback) and inspection (maintenance of strict standards). To do so, they built highly inclusive, flexible and innovative institutions that opened up to global trade.

Their constant struggle against water meant that the Dutch had superior shipbuilding technology, drawing on timber from the Baltic areas and arbitraging the trade with northern Europe. By 1598, the Dutch had established the first Insurance Chamber, the largest trading company by 1602 (VOC), and forerunner of the first central bank, the Amsterdam Exchange Bank in 1609, Merchants Exchange 1611, and Grain Exchange in 1616.

VOC, which had trading monopoly for the East Indies in the spice trade, was so profitable that between 1602 and 1796, the average dividend was 18.5% annually! Indeed, the Dutch were successful because they were not only good traders, but also insurers and bankers to the rest of Europe. One tends to forget that as late as 1750, 30% of the share capital of the Bank of England was owned by the Dutch.

What is remarkable about the Dutch model is not that it has not been taken over by other larger powers, but its sustainability and durability. The Dutch runs one of the largest pension funds in the world, and a recent study has shown that there are over 400 Dutch companies with over a century of history, including one that survived from1530. It goes to show that a country may be small, but through thrift, hard-work, openness, and good governance, the country could succeed despite the odds.

There is much that the East has still to learn from the West. No history is a straight line, and there is nothing inevitable about success or failure. Whether it is Abenomics or Likenomics, the key to sustainable and inclusive growth is about strong social institutions with the right checks and balances.

  
Think Asian by Tan Sri Andrew Sheng

TAN SRI ANDREW SHENG is president of the Fung Global Institute.

Japan on the militaristic path again! Never forget August 15!

Plans are afoot to revise Japan’s postwar peace constitution to assert its right to declare war and rename the self-defence forces.

Japan Maritime Self-Defense Force's helicopter destroyer DDH183 Izumo, the largest surface combatants of the Japanese navy, is seen during its launching ceremony in Yokohama, south of Tokyo August 6, 2013. The biggest warship since World War II, sparking grave concerns about the country's military buildup as observers said the vessel is actually an aircraft carrier

On Aug 6, Japanese Prime Minister Shinzo Abe took part in a ceremony marking the anniversary of the atomic bombing of Hiroshima in 1945, an event which, combined with the following atomic bombing of Nagasaki, compelled Japan to surrender nine days later on Aug 15, ending the Second World War.

Also on the same day, Japan launched its largest warship since the war. The vessel was launched at Yokohama, where Commodore Mathew Perry came with his US Asiatic fleet in 1853 to open Japan to the West. The 250m-long Izumo looks like an aircraft carrier, though officially it is a destroyer.

Well, it’s a flat-top super-destroyer that carries 14 helicopters with a flight deck where combat aircraft that can vertically take off and land can be accommodated.  

The new vessel shares the same name as the famed Japanese cruiser which played a pivotal part in the Shanghai War of 1937, withstanding repeated Chinese attacks.

In May, Abe offended China and South Korea by tacitly denying Japan’s imperialist aggression toward its Asian neighbours. The Japanese leader stated that there is no established definition of invasion, either academically or internationally.

Around the same time, he posed for a photo in the cockpit of a military training jet fighter emblazoned with the number 731, the unit number of an infamous Imperial Army group that conducted lethal chemical and biological wartime experiments on Chinese civilians. Moreover, Abe has reportedly moved to permit the use of the rising sun banner, a symbol of horror to Asian victims of Japanese colonial aggression.

Plans are afoot to revise Japan’s postwar peace constitution to assert its right to declare war and rename the self-defence forces as the national “defence forces”, the dropping of “self-defence” implying the forces may be engaged in action other than genuine self-defence.

One consequence of these new developments is the serious concern China, South Korea and even the United States are showing for a possible return of militarism in an increasingly nationalistic Japan.

They fear that a militaristic Japan is likely to turn imperialistic and invade its Asian neighbours again.

But their fear is totally unnecessary. The Liberal Democrats may all become ultranationalists like Abe and his mentor, former Prime Minister Junichiro Koizumi, but that does not mean they will turn militaristic. Militarism isn’t imperialism.

Japan turned militaristic after the Taisho democracy because of the rise of ultranationalism, which held Western democracy as the source of all evils during the Great Depression. In this period the military was viewed as the only stabilising power.

The militarists became imperialists after they were convinced that the West was purposely choking Japan’s economic lebensraum in Asia.

Moreover, the Japanese militarists had an excellent role model in Adolf Hitler’s Nazi Germany.

Times have changed. There isn’t another Great Depression that may trigger the turning of the Japanese toward ultranationalism, no matter how hard the Liberal Democratic Party and populistic Toru Hashimoto’s Japan Restoration Party may try.

The military isn’t the stabilising power anymore. People have been taught not to blindly obey the powers that be. Besides, what Abe and his Liberal Democrats want is what a “normal state” enjoys under its “non-peace constitution”.

All Abe and company are trying to achieve is to show that Japan is strong enough militarily to resist pressure, diplomatic or otherwise, from China and Uncle Sam in order to win more votes and continue ruling Japan.

Koizumi tried to do so, but failed before he had to step down as prime minister. There was a backlash. The Democratic Party of Japan saw its almost half-century rule of Japan end.

Abe defeated the Democrats last year. He is picking up where Koizumi left off. The Japanese leaders may be ultranationalists, but never will they turn militaristic and start the aggression of a renascent Japanese empire

Sources: Asia News Network - The China Post/The Star

Japanese Empire

Why we must never forget this day August 15, 1945

On August 15, 1945, Japan declared its unconditional surrender, bringing to an end its colonial wars of militarist aggression.

Germany shared Japan's guilt as the cause of World War II, and shared its status as a vanquished country. But after the war, Germany adopted a sincere, clear and thorough attitude to its historical responsibilities - during a visit to Poland former German chancellor Willy Brandt earned admiration from international public opinion when he went down on both knees before the memorial to the Warsaw Ghetto. In contrast, this August 15 large numbers of Japanese politicians went to worship at the Shrine to the worst of Japanese militarists and war criminals, people like Toujou Hideki.

The people of China treasure August 15 as a day of victory. This was the day when a nation that had lived under a century of enslavement to foreign powers finally rid itself of its oppressors. Since then, China has followed the path of unity, peace, and development. Especially since the launch of reform and opening up, national strength has been restored, shame has been put aside, and courage has returned. We must guard against any threat to domestic or regional security posed by the renaissance of Japan’s deviant right-wing extremists. We must have confidence in our moral strength to stand up to the challenges that such people pose, and the provocations they offer.

When we look back, it is for the purpose of better moving forward. China grows by remembering history; the world develops by remembering history. In contrast those Japanese politicians who cling to their country's historical errors will only prevent the Japanese from finding a path to a better future.

Edited and translated by Zhang Qian, People's Daily Online

Read the Chinese version:为什么这一天无法忘记；source: People's Daily Overseas Edition; author: Hua Yiwen


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Japan worships notorious shrine generating tensions 68 years after end of World War II 

Abe no remorse over Japan's wartime aggression against Asian neighbours

 Japan PM omits expressions of atonement over past aggression in Asia on the 68th anniversary of its World War II surrender.

JAPAN - Japan's Prime Minister Shinzo Abe broke with two decades of tradition on Thursday when he omitted any expression of remorse over Tokyo's wartime aggression against its Asian... Japanese Prime Minister Shinzo Abe, whose hawkish views have raised concerns in the region, broke with two decades of tradition on Thursday by omitting any expression of remorse for Japan's past aggression in Asia on the 68th anniversary of its World War II surrender.

In a speech, he avoided words such as "profound remorse" and "sincere mourning" used by his predecessors to acknowledge the suffering caused by the Imperial Japanese Army as it stormed across East Asia.

A group of Japanese peace activists pay their respects to victims of the Nanjing Massacre in the capital of Jiangsu province on Thursday, the 68th anniversary of Japan's surrender in World War II. At least 300,000 Chinese people were killed by Japanese soldiers when they took Nanjing, then China's capital, in December 1937, in a six-week rampage of looting, rape, torture and murder. The signs read: "In memory of the dead." [LIU JIANHUA / FOR CHINA DAILY]

Shinzo Abe speech skips reference to WWII remorse

www.france24.com

He has previously expressed unease over Japan's apologies for wartime aggression.

Abe stayed away from the controversial Yasukuni Shrine, which honors Japan's war dead, including 14 Class A war criminals from World War II. But he sent a ceremonial gift to the shrine, bearing his name and title as head of the Liberal Democratic Party.

At a time when Japan is witnessing an unprecedented surge of nationalism that is downplaying its past militarism, three of Abe's cabinet members — Keiji Furuya, state minister in charge of the abduction issue, Yoshitaka Shindo, internal affairs and communications minister, and Tomomi Inada, administrative reform minister — made their pilgrimage to the shrine, together with 102 Diet members.

Abe joined Emperor Akihito at a ceremony at a Tokyo arena where they bowed before a backdrop of white and yellow chrysanthemums in respect for the war dead.

Abe has said he regrets not visiting Yasukuni on the anniversary during his first term in 2006-07.

Abe also failed to pledge not to fight a war in the future, as his predecessors did in previous speeches at the memorial ceremonies.

"Abe's failure to apologize to Japan's victimized neighbors has made it clear that his ruling Cabinet is the most nationalistic in recent years," said Yang Bojiang, deputy director of the Institute of Japanese Studies at the Chinese Academy of Social Sciences.

A recent poll showed that 56 percent of Japanese supported a visit by Abe to the Yasukuni.

Compared with his restrained attitude in his first term, Abe has shown a stronger will in pushing ahead with right-wing policies, which will lead to further friction with its neighbors, including China and South Korea, Yang warned.

Beijing strongly condemned the visits of Japanese Cabinet members to the Yasukuni Shrine on Thursday, with Vice-Foreign Minister Liu Zhenmin summoning the Japanese ambassador to China, Masato Kitera, to express the anger.

"No matter in what form or name a Japanese leader pays tribute at the Yasukuni Shrine, its essence is to try to deny and glorify Japan's militarist past of aggression and challenge the post-World War II international order," Foreign Ministry spokesman Hong Lei said.

Tetsuya Takahashi, a professor at Tokyo University's Graduate School of Arts and Sciences, said it is an improper historical perception that the war dead in Japan's aggressions should be worshipped as "gods" and commended for their deeds.

Liu Jiangyong, an expert on Japanese studies and the deputy dean of the Institute of Modern International Relations at Tsinghua University, said Abe's decision to make a ritual offering instead of visiting the shrine is his tactic for repairing ties with neighboring countries.

"However, by making an ornamental offering to the shrine, he has shown an ingrained nationalistic sentiment, which will never appease Asian neighbors," Liu warned.

South Korean Foreign Ministry spokesman Cho Tai-young said in a statement that leading Japanese politicians and Cabinet members "still turn a blind eye to history".

In his proposal on improving China-Japan relations, Shin Kawashima, director of the CSIS-Nikkei virtual think tank, said the two countries should have dialogues and seek common interests as a way to mend ties when they mark the 35th anniversary of the China-Japan Treaty on Peace and Friendship this year.

He hopes that Japanese Cabinet members treat Yasukuni visits with caution.

In a letter to Abe published in Japan Times, J. F. van Wagtendonk, president of the Foundation of Japanese Honorary Debts in The Hague, asked Abe to face Japan's war responsibility. "You cannot pass this responsibility to your and Japan's children."

(Source: China Daily, AFP)

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Japan worships notorious shrine generating tensions 68 years after end of World War II