#Malaysia Tour Expenses From Pakistan

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[nigelsaywell]

Indonesia adopts a more balanced growth

All around the world we see today a dichotomy between wealth and poverty.  Nowhere is that scarily abject than in the so called third world economies. Historically we have all followed an American devised system of statistical measure, “GDP” Gross Domestic Product. GDP is fine when you all share in the benefit, although arguably when you tour America you could say that GDP as a measure of wealth has failed even in the US, 1 in 8 live in poverty across this great nation.

Asia does however, have a handicap which Indonesia is not immune to. Much of the economy is controlled by family conglomerates, too few of these exist. Therefore, polarizing wealth into too few hands, which of course makes the government job to assist fledgling companies more difficult.

That aside Indonesia have opened the doors to eCommerce, the digital economy as a way to encourage a paradigm shift. To some extent this is wishful thinking but all credit to them they are at the beginning of a sincere initiative.

I have for a long period argued that you can not have a system that polarizes 80% of the world's wealth, and have that system determine well-being when the money is sitting with 20% of the population. The absurdity is more acute as you reach the top 2% or 3%. It is this dichotomy that will, over what is now a short period unwind society. My guess with Brexit, Italian elections, Jaunes Gilet (yellow vest), Trump's America this is all a polite wake up call to the elites in our political class that enough is enough. Whether they are yet listening that's not so obvious.

However, one area, for me a little surprising but most welcome nonetheless is the “World Economic Forum”. Here they have discussed, debated and formed the same conclusions, the system of GDP is archaic and replaced it with an Inclusive Development Index “IDI”. This index considers well-being, life expectancy, unemployment, median income, poverty, inequality, household savings, carbon emissions plus a myriad of other issues that encompasses us all. You could argue whilst our western politicians fiddle as Rome burns, line their pockets, protect their various expense scams other more dynamic areas have embraced this revolutionary index, Indonesia being one such area. 

In Asia, Australia and New Zealand rank highest, followed by South Korea and Israel, which rank in the top twenty. The next tier of emerging Asian countries is making substantial strides in most categories of inclusive development, including Azerbaijan, Malaysia, Kazakhstan, Turkey, Thailand, China, Iran, Vietnam, Indonesia, and the Philippines. We should be mindful that Asia is also home to countries in the bottom tier such as Afghanistan, Pakistan, India, Bangladesh, Cambodia, Laos, and Yemen. The Asia development bank have taken a step further and published their Social Protection Index. “SPI”. This index shows South Asia, Southeast and Central Asia are lacking their Eastern Asia neighbours with their subsistence programmes. But as with the economic wave example Asia will develop together through assisting each other, I have confidence the West could learn from the East when it comes to inclusive growth. Whether, the west is open to rocking the elites’ gravy train the jury is out.

If you look to the World Economic Forum website there is a PDF file which can be downloaded, this will give more depth to the points reference IDI that I have raised above:

“The Inclusive Development Index (IDI) is an annual assessment of 103 countries’ economic performance that measures how countries perform on eleven dimensions of economic progress in addition to GDP. It has 3 pillars; growth and development; inclusion and; intergenerational equity – sustainable stewardship of natural and financial resources.

The IDI is a project of the World Economic Forum��s System Initiative on the Future of Economic Progress, which aims to inform and enable sustained and inclusive economic progress through deepened public-private cooperation through thought leadership and analysis, strategic dialogue and concrete cooperation, including by accelerating social impact through corporate action.”

Bedtime reading...

[mideastsoccer]

JMD in SCMP:Saudi Crown Prince Mohammed bin Salman must walk geopolitical tightrope during Asian tour

·        Saudi Arabia has sought to strengthen ties with Pakistan with one eye on neighbouring Iran

·        However, Saudi investment in Pakistan could complicate attempts to forge closer ties with India

James M. Dorsey  

Updated: Monday, 18 Feb, 2019 10:34am

A podcast version of this story is available on Soundcloud, Itunes, Spotify, Stitcher, TuneIn and Tumblr

Saudi Crown Prince Mohammed bin Salman’s three-nation tour of Asia is as much about demonstrating he stands tall – despite Western criticism of the murder of journalist Jamal Khashoggi and the war in Yemen – as it is about exploiting geopolitical and economic opportunity.

Prince Mohammed is betting on the optics of his visit to Pakistan, India, and China offsetting talk in the US and Europe about arms embargoes and sanctions.

Prince Mohammed changed his itinerary at the last minute, delaying by a day his arrival in Pakistan and postponing visits to Malaysia and Indonesia. The stakes are nonetheless high.

Saudi Arabia has sought to strengthen ties with Pakistan with one eye on neighbouring Iran. The crown prince’s visit coincides with Pakistan becoming increasingly dependent on Saudi Arabia while relations with China, its closest ally, have become strained.

Saudi financial support for Pakistan is designed to counter expanding ties with Iran. That support includes a US$3 billion deposit into Pakistan’s central bank to bolster the country’s balance of payments and another US$3 billion in deferred oil import payments coupled with an expected US$10 billion investment in the troubled province of Balochistan, which borders Iran.

Prince Mohammed could also seize upon Pakistani criticism of China’s “Belt and Road Initiative” and efforts to refocus the US$45 billion plus China Pakistan Economic Corridor (CPEC) on job creation, agriculture and industry.

Saudi Arabian Crown Prince Mohammed bin Salman and Pakistan’s Prime Minister Imran Khan. Photo: AFP

However, Saudi investment in Pakistan could complicate Prince Mohammed’s attempts to forge closer economic and security ties with India, in light of the recent attack in Kashmir that killed at least 42 Indian military personnel, blamed on Pakistan. India has vowed to isolate Pakistan internationally, including seeking Pakistan’s blacklisting by the Financial Action Task Force (FATF), with monitors financing of terrorism.

Managing the India-Pakistan minefield will test Prince Mohammed’s diplomatic skills. Iran’s India-backed, Arabian Sea deep-sea port of Chabahar is viewed by Saudi Arabia as encroaching on the kingdom’s national security and economic interests.

A study published in late 2017 by the Riyadh-based and government-backed International Institute for Iranian Studies identified Chabahar as a “direct threat to the Arab Gulf states”. The study warned Chabahar would enable Iran to increase oil exports to India at the expense of Saudi Arabia and raise foreign investment in Iran.

The study’s author, Mohammed Hassan Husseinbor, noted the expanse of Iran’s Sistan and Baluchestan province.

“It would be a formidable challenge, if not impossible, for the Iranian government to protect such long distances and secure Chabahar in the face of widespread Baluch opposition, particularly if this opposition is supported by Iran’s regional adversaries and world powers,” Husseinbor wrote.

Iran has blamed a series of recent attacks in Sistan and Baluchestan on Pakistan-based militants allegedly supported by Saudi Arabia, the US and Israel.

Saudi Arabia’s economic and geopolitical investment in Pakistan will be on the agenda for the crown prince’s talks with Chinese President Xi Jinping.

Saudi Arabia is a cesspool of constant rivalry among the princes Mohamad Sabu, Malaysian defence minister

China rejected Pakistan’s initial plan to incorporate into CPEC Saudi investment in a refinery in Gwadar, a crown jewel of the “Belt and Road Initiative” a mere 70km up the coast from Chabahar, and a gold and copper mine on the Iranian border.

Nonetheless, China has benefited from Saudi engagement in Pakistan despite concerns about the kingdom’s intentions. Financial support from Saudi Arabia and UAE has made a Pakistani request for a bailout by the International Monetary Fund (IMF) less urgent. That has in turn shielded China from potentially embarrassing disclosures of the financial terms of CPEC-related projects the IMF was demanding as part of a Pakistani bailout.

While the crown prince gave no reason for the postponement of his visit to Malaysia, it is unlikely money and investment would have been enough to fix Saudi Arabia’s problems with the Southeast Asian nation.

Relations since Mahathir Mohamad’s upset electoral victory last year have been strained by Saudi efforts to protect Najib Razak while he was prime minister. Deposed by Mahathir, the former prime minister has since been charged with corruption. Mahathir’s election victory also brought to office Mohamad Sabu, a defence minister with a track record of criticising the kingdom.

“Malaysia should not be too close to a country whose internal politics are getting toxic,” Sabu warned in a commentary. “For the lack of a better word, Saudi Arabia is a cesspool of constant rivalry among the princes. By this token, it is also a vortex that could suck any country into its black hole if one is not careful.”

Sabu has since withdrawn Malaysian troops from the Saudi Arabia-based 41-nation, Saudi-sponsored Islamic Military Counter Terrorism Coalition. He has also closed a Saudi-funded anti-terrorism centre, the King Salman Centre for International Peace, which was allocated 16 hectares of land in Putrajaya, close to the prime minister’s complex, by the Razak government. The centre was inaugurated in 2017 by Prince Mohammed’s father, King Salman.

Prince Mohammed may emerge from his tour reassured, having been feted – certainly he would be less welcome in Washington or Western European capitals. The ultimate measure, however, will be his ability to manoeuvre and master a minefield of conflicting geopolitical interests, something he has not yet shown he can do.

James M. Dorsey is a senior fellow at Singapore’s S. Rajaratnam School of International Studies and co-director of the University of Wuerzburg’s Institute of Fan Culture.

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