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Sunday, October 28, 2012

When China Rules The World: The End Of The Western World And The Birth Of A New Global Order

Book review: China is still ascendant

Author: Marc Jacques
Publisher: Penguin, 848 pages

SKEWED as they may be, reactionary Orientalist perspectives of East Asian realities remain the norm in Western punditry and news reports. The problem has become prevalent in both conservative and liberal circles.

The problem for the West itself is that such a persistent misperception of modern China may undermine Western interests further. Martin Jacques’ When China Rules The World: The End Of The Western World And The Birth Of A New Global Order is intended largely as a corrective, looking at the historic phenomenon of China’s grand return to the global stage in China’s own terms.

My review of the first edition of Jacques’ book appeared earlier in China awakens (Star Bizweek, Oct 3, 2009). The present consideration is of the second edition published by Penguin earlier this year.

The first edition was subtitled The Rise Of The Middle Kingdom And The End Of The Western World. The second edition, suggesting an evolution, is subtitled The End Of The Western World And The Birth Of A New World Order.

Jacques and Penguin are just as grandiose now as before. The titling remains as presumptuous and alarmist, at least to Western conservatives, and no apologies are tendered in that regard.

The title itself can be a problem for those who judge a book by its cover. Jacques does not believe that China or any other country can “rule” the world today, only that China and things Chinese would predominate globally.

The second edition contains new data and a new section in the Afterword. For Jacques, international developments in the three years between the two editions only confirm and strengthen his central themes.

His chief arguments remain intact: that China will be dominant economically and culturally, it will not essentially be Westernised, and China will be ascendant despite multiple challenges.

This rise, mainly economic but also in other spheres later, is of epochal proportions. China’s ascendancy would result from both its own efforts and the decline of the West simultaneously.

The 2008 recession in the United States, followed by economic doldrums there and the European sovereign debt crisis underline the situation impeccably. In contrast, China’s GDP growth continues, affected only minimally.

Like many others, Jacques believes that China’s current growth model based on cheap labour and global raw materials is unsustainable. For example, China would need to stimulate more domestic demand to compensate for a slackening of overseas markets.

The latest data show that more and more countries have now made China their main trading partner. And as with trade, increasingly so with investment.

Thus, China’s economic gravitational “pull” is becoming unerring and compelling. Not only has China swiftly replaced Japan as the world’s second-largest economy, its relationship with the United States has replaced Japan’s as the most important bilateral relationship across the Pacific and in the world.

Analysts impressed with China’s economic growth once expected it to surpass the US economy in a couple of decades. But that timeframe has shrunk.

In 2009 Jacques cited the Goldman Sachs prediction that China’s economy would overtake the US’ by 2027. Sceptics scoffed.

In this second edition, he cites The Economist’s projection that the Chinese economy will become the world’s biggest by 2018. Now the International Monetary Fund predicts the year will be 2016.

But even when that happens, China will still be a developing country with vast human resources yet to reach peak productivity. That means when China’s standard of living approaches that of the US, with a comparable GDP per capita, its economy will be two to four times that of the US today.

Unlike many China pundits, particularly critics, Jacques believes China will not succumb to the weight of its own promise. He does not accept that China has to Westernise or democratise before it can fully develop and prosper.

Jacques also rejects the alarmist Western notion that today’s China is re-arming aggressively. He finds Chinese defence expenditure as a proportion of GDP falling between the 1970s and 1990s, and since then only keeping pace with GDP growth.

As expected, the very people he seeks to inform are often those who spurn his information. Jacques attributes this Western stubbornness to a mixture of unfamiliarity, ignorance, prejudice, denial, stereotyping, racism and Cold War ideology against a non-Western country that is communist, at least in name.

With such unwieldy baggage, the nuances and subtleties about China are naturally lost on the bigots. For Jacques, China is a continent-sized civilisational state whose history has seen upheavals and expansion on its Asiatic land mass, but not military adventurism in a littoral and archipelagic East Asia.

In response to critics of an increasingly powerful China, Jacques does not see China as a global superpower. He finds China historically absorbed in its own internal governance as it is a very difficult country to govern, its trajectory will continue to be tempestuous, but it is still a complex and sophisticated state and the home of statecraft, so it cannot simply be dismissed with an epithet like “authoritarian”.

For example, while critics fret over the People’s Liberation Army and the PLA Navy, it is China’s Coast Guard rather than the military that is a key player in the disputed island claims. Jacques finds no less than seven uncoordinated Chinese agencies involved over these claims.

A key question in the book is whether the United States will allow China the space to be a major player in Beijing’s own regional backyard. Jacques finds that unlikely, while also convinced that US efforts, such as its “pivot” to contain China, will ultimately fail.

This book still has major gaps that need filling. A central theme is that China’s coming predominance will be different from that of Western colonialism, but how different and in what ways?

Jacques also envisages an updated revival of the tributary system in East Asia, in which all the smaller countries acknowledge their junior status with regard to China. But what form will a revised tributary system take?

Another key point is China essentially being a civilisational state rather than just a nation state like other countries. But what can this mean in practical policy terms, particularly in China’s relations with other countries?

Such answers are essential to an intelligent understanding of a rising modern China. But we may have to wait for a new book by the author for further illumination, because any answers are unlikely to be accommodated by the structure of the present work, notwithstanding its already intriguing insights.

The first edition was already a vast interdisciplinary work of far-reaching implications, and the second version even more so. Few analysts as authors have achieved what Jacques has: combining the depth and rigour of academia with the readability and vigour of journalism in a single volume on a subject of great topicality.

The result is a serious and interesting textbook which, despite its 800+ pages, has sold a quarter of a million copies (and counting) in a dozen languages in its first edition alone. His critics have yet to match that kind of appeal in whatever they have to say.

Review by BUNN NAGARA
star2@thestar.com.my
> Bunn Nagara is an associate editor at The Star.

Related posts:

Fearful of China's rise?
Sep 28, 2012
Dawn of a new superpower
Jul 08, 2012

Saturday, October 27, 2012

Unlocking potential for penal tourism

Malaysia can attract white-collar criminals seeking to do community service

WHEN he sentenced Rajat Gupta, the former McKinsey & Co boss, on Wednesday to two years in prison for insider trading-related offences, Judge Jed S. Rakoff of the Federal District Court in Manhattan spurned the chance to be the midwife at the birth of penal tourism.



We've heard of ecotourism, medical tourism, religious tourism, sports tourism, agritourism, education tourism and even sex tourism. So why not a type of tourism that caters for people convicted of crimes, offering these people a chance to atone for their wrongdoings through community service away from home?

Gupta's lawyers suggested precisely this in a sentencing memorandum submitted on Oct 17. In requesting that the court impose a sentence of probation with the condition that Gupta perform “a rigorous full-time programme of community service”, the lawyers proposed two options.

The first is that he's assigned full-time for a few years to Covenant House, which provides emergency shelter and other services for homeless, runaway and at-risk youth.

The idea is that he will be based in New York to work directly with the children at Covenant House's facility in Manhattan, and to help Covenant House come up with strategic initiatives for expansion and improvement. There's no tourism element here because New York is one of several places where Gupta maintains a residence.

The second option, in the words of the lawyers, is “less orthodox but innovative”.

No kidding. The plan is for Gupta to go to Rwanda to contribute towards improving the delivery of health care (focusing on HIV/AIDS and malaria) and agricultural development.

The Rwandan government has agreed that if the judge accepted the proposal, Gupta would be under its direction and supervision, along with Care USA, a humanitarian and development organisation. He would live and work with government officials in the African nation's rural districts.

In the sentencing memorandum, Gupta's lawyers explained: “We recognise this is an unusual community service proposal, but one that could potentially provide great benefits to large numbers of Rwandans desperately in need of help, and which Mr Gupta is uniquely situated to perform.

“Moreover, it would require Mr Gupta to confront significant hardships and would thus constitute punishment commensurate with the seriousness of the offence, as Gupta would be thousands of miles from his family and friends, and would be living in basic accommodations in rural areas of the country.”

However, Rakoff rejected both proposals, labelling them as “Peace Corps for insider traders”. He instead stuck to the conventional, sending Gupta to jail, slapping him with a US$5mil fine and ordering him to be placed under a year of supervised release after the prison term ends.

But the idea of penal tourism is now out there. There's rich potential in welcoming white-collar criminals who are made to do community service in faraway places.

Besides the direct impact of their work, these wealthy law-breakers will draw the international spotlight, thus raising the profile of the host countries. The criminals are likely to function as magnets that attract family members, friends and associates to come over. All this attention can translate into cash inflows for penal tourism destinations.

Malaysia should seize this opportunity to claim the first-mover advantage in penal tourism. As outlined by Gupta's lawyers, the key is to have plenty of community service projects that involve “significant hardships” so that the criminals (or penal tourists, to use the politically correct term) are indeed doing work that can be widely accepted as punishment that fits the crimes.

Here are some projects that can be used to promote Malaysia as a hotspot for penal tourism:

Stick no bills: The problem with the Ah Longs is not only their frighteningly high interest rates and intimidating debt collection tactics. Their annoying advertising strategy is to plaster signs, walls, lamp posts, phone booths and other surfaces with stickers bearing their contact numbers. Penal tourists can pay their debt to society by painstakingly removing these stickers and doing restoration work if there's damage.

Setting the record straight: When somebody attempts to break a trivial record or establish a new one for example, the longest popiah, largest group of people doing Gangnam Style moves, most Facebook “likes” in 24 hours penal tourists will be present to verify the feat.

Gaydar duty: Penal tourists will be tasked with compiling statistics on the lesbian, gay, bisexual and transgender (LGBT) community. They will rely on a leaflet recently issued by the Yayasan Guru Malaysia Bhd and Putrajaya Consultative Council of Parent-Teacher Associations to spot those with LGBT tendencies.

Pointing in the right direction: Armed with laser pointers, penal tourists will be stationed at concerts, plays and cinemas to shame the inconsiderate people who use mobile phones, or who talk too much and loudly.

The scoop on food: Penal tourists will be put in charge of crowd control and apportioning of food at government open houses during festivals, AGMs of listed companies and popular hotel buffets. Their job is to ensure there's queuing and that there's no wastage of food. Now that's true hardship.

Garbage or generosity?: There's often a lot of unusable stuff among items given away to welfare homes and charitable organisations. The penal tourists can be deployed to sift through the piles of things.

Smoking wardens: This is strictly for penal tourists who relish a tough challenge with a dash of danger. They will patrol smoke-free zones to tick off smokers who insist on having a puff. The tourists will be required to sign indemnity forms before starting work.

Compelling courtesy: Instead of air marshals, we have bus and train marshals. The penal tourists will ride buses and trains to zero in on passengers who refuse to give up seats for the elderly and the disabled, pregnant women, and mothers with young children. Boarding passengers who don't wait for others to disembark will be targeted as well.

To delete or not to delete: Online political forums can get wild and woolly if they aren't moderated vigilantly. Penal tourists will be entrusted with the gruelling job of monitoring forums to ensure there's no flaming and spamming, use of inappropriate language, and seditious or defamatory content. If that sounds punishing, Malaysia is on track to becoming a top penal tourism destination.

By The Star Executive editor Errol Oh is happy to be just a plain tourist.

Related articles:

Ex-Goldman director, Wall Street Titan Gupta gets 2-year jail sentence 

Ex-McKinsey CEO’s case highlights swapping of secrets in corporate world

Friday, October 26, 2012

Legal profession unattractive in Malaysia?

Malaysia is not a hub for legal services in the region. The best minds are more interested in practising in other jurisdictions where the work and pay is better.

IT’S a funny world we live in. Today’s unalterable truth may be tomorrow’s shibboleth.

For the legal profession in Malaysia, the seemingly unalterable truth is – do not join the profession unless you are prepared to face the harshness of the working conditions.

However, if you persevere, the returns can be very rewarding and fulfilling.

The National Young Lawyers Committee (NYLC) conducted a survey on the working conditions of young lawyers in late 2011, and the results which were recently released can be found at www.malaysianbar.org.my.

It indicates that there is or will be a mass exodus of young lawyers from the legal profession because of the lack of work-life balance, low pay and bad working conditions.

The survey shows that the average starting pay is RM3,000-RM3,500 in the Klang Valley and RM2,000-RM2,500 outside of the Klang Valley – just enough to support the cost of living.

The average working hours are between 51 hours to more than 60 hours a week. Almost all young lawyers work weekends.

This means that, in the Klang Valley, based on the average monthly pay of RM3,250 (RM39,000 per annum, excluding bonuses) and average working hours of 55 hours a week (2,860 hours over 52 weeks), over a year, first-year lawyers are only paid RM13.64 per hour. It is much lower for pupils.

Outside of the Klang Valley, based on the average monthly pay of RM2,250 (RM27,000 per annum, excluding bonuses) and the same average working hours, over a year, first-year lawyers are only paid RM9.44 per hour.

Some recommendations were made by the NYLC to increase the starting pay and improve working conditions.

Some quarters cynically cried out that young lawyers are making demands despite being of low quality.

They say that young lawyers should not demand higher pay unless they have proven themselves.

Pause for a moment and consider what the survey results really mean. Firstly, it means that the profession, as a whole, is not attractive.

Students, when choosing a degree, will second-think pursuing law. Law students may choose not to practise upon completing their law degree.

Some will be driven by passion, but not everyone has enough passion to endure the initial hardship.

The best minds may instead be more interested in other professions. Why isn’t the profession able to retain these talents?

Generally, Malaysia is not a hub for legal services in the region. The best minds are more interested in practising in other jurisdictions where the work and pay is better.

The profession must improve and be the main legal services hub in the region. But the paradox is, to do so, higher salary and better working conditions are also required to attract and retain the best talents.

Secondly, not having an attractive entry point does not augur well for diversity in the legal profession.

The legal profession should be diverse because lawyers are guardians of rights and liberties of people of all gender, races, backgrounds or classes.

The current starting salary and working conditions, by chance or design, targets only a single demographic – fresh graduates, middle or upper middle class, living with their family, and having little family or financial commitments.

A prospective entrant who has dependants would find it hard to pursue a career in law given the low average starting pay, the long hours and the non-existing weekends.

To quote Lord Falconer: “If you don’t catch people when they’re 15 or 16, when it comes to choosing judges 30 or 40 years later, you won’t have the diversity you need to ensure that judges reflect society”.

Thirdly, with the starting salary and working conditions of the legal profession failing to attract and retain talents and not encouraging diversity, legal access would be significantly affected. Legal access also means having access to a lawyer of your choice.

The survey shows that 28.17% of the respondents in the Klang Valley and 15.29% of the respondents outside of Klang Valley are leaving the profession in the next five years and a further 38.73% of the respondents in the Klang Valley and 48.24% of the respondents outside of Klang Valley are uncertain of their future in the legal profession.

These staggering numbers show that lawyers do not want to be lawyers anymore.

Society will be affected because the choice of lawyers would be limited. There will not be a greater pool of talent to choose from for clients or when it comes to the appointment of judges.

The quality will have to be compromised with whatever the supply is. In the long run, it will be detrimental to the legal system in Malaysia.

The results and the recommendations by the NYLC are not unjustified.

It would be convenient to blame the law schools for failing to produce competent graduates. But employers must look at themselves and ask if they have been contributing to this problem.

The unalterable truth of today must be questioned. For employers who are truly concerned about attracting and retaining the best talents, the survey results and recommendations should be taken seriously.

For those who choose to ignore the survey results and recommendations, do so at your own peril.

PUTIK LADA 
By NEW SIN YEW
newsdesk@thestar.com.my
 > The writer is a young lawyer. Putik Lada, or pepper buds in Malay, captures the spirit and intention of this column – a platform for young lawyers to articulate their views and aspirations about the law, justice and a civil society. For more information about the young lawyers, visit www.malaysianbar.org.my.

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Malaysian young lawyers not up to par

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