Oleh 		: 	YAB DATO SERI DR 
			MAHATHIR BIN MOHAMAD ]
Tempat		: 	MAPUTO, MOZAMBIQUE
Tarikh		: 	21-8-2000 	
Tajuk 		: 	AT THE OFFICIAL DINNER IN 
			CONJUNCTION WITH THE
			MEETING ON GLOBAL 2000 
			INTERNATIONAL SMART PARTNERSHIP 
Penyampai	: 	PM



 
  "SMART PARTNERING FOR NEW ECONOMY"
  
  
  I  note that the theme of this year's dialogue is global
  trends  and  emerging economies.  I would like  to  take
  this   opportunity  to  touch  on  a  few   aspects   of
  globalisation.
  
  2.    Let  us  be  reminded that  globalisation  is  not
  merely a process but has also become an ideology.   From
  one  international forum to another, the  proponents  of
  unbridled,    supposedly   `unstoppable'    forces    of
  globalisation and trade liberalisation continue to  sing
  their  song  of  "the  ticket  to  a  better  life   for
  everyone".  This ideology is preached  to  us  as  being
   full  of glorious benefits. I continue to look long  and
  hard  for evidence that this may in fact, be true.   But
  all  around, the arrows point in the opposite direction.
  Sadly,  the number of downturns and negative aspects  of
  globalisation   which   many   of   us   have   actually
  experienced are seldom mentioned or discussed.  If  they
  are,  they  are not attributed to globalisation  but  to
  things  like bad governance, lack of democracy, cronyism
  etc.
  
  3.    In  nation building, when caution is not exercised
  and  care  not  taken; when the interest of  people  and
  nations  are gambled upon on the basis of an `ideology',
  when  decisions are not grounded in reality and the hard
  facts   are  ignored,  there  will  be  calamity.    The
  promoters  of  the  ideologies are of course  to  blame.
  But  we  who  make  the decision to  convert  cannot  be
  totally   blameless.   How  many  times  have  we   seen
  ideologies  destroy nations and yet when a new  ideology
   is  promoted we accept it as the perfect and  infallible
  solution to all our problems.
  
  4.    The  man  in  the street may be oblivious  to  the
  forces of globalisation. Yet it will affect him with  as
  much  intensity, as it will the heads of Government  and
  captains  of  industries. The reactions  of  Governments
  and  industries  to globalisation will bear  finally  on
  the  ability  of  individuals to enjoy economic  freedom
  and  empowerment; and whether individuals live in a free
  land  and be master of their own destiny.  Globalisation
  merits  serious  thinking and we need to strategise  our
  responses  to  the  major issues ranging  from  business
  globalisation  and  trade  liberalisation,   sustainable
  development, the knowledge-driven economy and the socio-
  political  concerns such as democracy, the rule  of  law
  and human rights.
  
  5.    If  the  amount  of money circulating  around  the
  globe  is  anything to go by, we are  trading  more  now
  than  at  any  other moment in human history.  Financial
   liberalisation  has  certainly been extensive,  and  the
  world  has borne witness to massive financial flows  and
  market  penetrations. The volume  traded  in  the  world
  foreign  exchange market has grown from a daily  average
  of  15  billion US Dollars in 1973, to over 900  billion
  US  Dollars  in 1992, and the number today  far  exceeds
  1000 billion US Dollars a day.
  
  6.    But where does all this money go?  What productive
  and  essential economic activities does it support?  The
  hard  reality  is  that a mere two per cent  of  foreign
  exchange traded is used for trade payments. The rest  of
  the  transactions are all speculative  in  nature.   And
  speculation  is  non-productive.  In fact  it  is  truly
  destructive,  as  the  East Asian  economies  learnt  to
  their cost in 1997-1998 financial and economic turmoil.
  
  7.    Who  benefits from all of these so  called  'trade
  liberalisation'? The beneficiaries are clearly a  select
  and  privileged  group.  The top fifth  of  the  world's
   population  in the richest countries enjoy 82  per  cent
  of  the expanding export trade and 68 per cent of FDI --
  the  bottom fifth barely more than one per cent. Between
  the  periods  1980-1996  only 33  countries  managed  to
  sustain  three per cent annual growth. For 59  countries
  mainly in sub-Saharan Africa and Eastern Europe and  the
  CIS, GNP per capita had in fact, declined.
  
  8.    Twenty per cent of the world's population  in  the
  developed  countries  receive 82.7  per  cent  of  total
  world  income,  while  the 20 per cent  of  the  world's
  population  in  the poorest countries receive  only  1.4
  per  cent.   In 1989 the average income of  the  20  per
  cent  of people living in the richest countries  was  60
  times higher than that of the 20 per cent living in  the
  poorest  countries. What is more alarming is  that  this
  ratio has doubled, from 30 times in 1950.
  
  9.    The glorious promises of globalisation have yet to
  materialise.    A    reckless    approach    to    trade
   liberalisation without due consideration for  one's  own
  ability to cope will only contribute to a vicious  cycle
  of  trade  and  balance of payments deficits,  financial
  instability,  debt  and recession, not  to  mention  the
  social  costs  of dumping and general economic  erosion.
  A   misstep  carries  with  it  a  cost  no  less   than
  catastrophic for nations and people. A blind  acceptance
  of  an  ideology that to date stands as just that --  an
  ideology   --  is  unacceptable,  naive  and   downright
  dangerous.
  
  10.   To  equate  globalisation  with  a  guarantee  for
  economic  advancement  is a gross oversimplification  of
  the   realities   that  surround  international   trade.
  Despite  the best intentions and most progressive  macro
  economic  policies of developing nations,  better  trade
  performance   does   not  necessarily   translate   into
  increases  in  living standards. Given the international
  division   of  labour,  where  high-priced   goods   are
   produced by the advanced nations of the world,  and  the
  production   of   low-value  items  are   relegated   to
  developing  nations, the terms of trade  for  developing
  countries are almost always unfavourable.
  
  11.   I am not convinced that the developed nations  are
  at  all  interested  in  this so-called  'level  playing
  field'. Globalisation as it stands clearly means  access
  of  products  of  developed nations into the  developing
  world.  And yet, high tariffs still persist in developed
  countries  in sectors such as agriculture, textiles  and
  steel   in   which   developing   countries   may   have
  comparative  advantage.  If  not  tariffs,  then  it  is
  standards, subsidies, labour conditions, human rights  -
  the goal posts keep changing against our favour.
  
  12.   This clearly calls for a new way of thinking,  for
  developing  nations  to chart a new paradigm  in  nation
  building such that old mistakes are not repeated.  Given
  the  onslaught of voices propagating the good of an open
   and  liberal economy, sovereignty as a basis  for  self-
  determination  and  empowerment seems contradictory  and
  out  of  place. Yet at no time is it more relevant  than
  it is now.
  
  13.   It is not without a good reason that the last  WTO
  round  in  Seattle came to a stalemate. Nation  building
  is  not only about the lowest cost, it is equally  about
  social  justice  and  a conducive  environment  for  the
  development of human dignity.  A grain of rice or  wheat
  or  maize  or barley is not simply an issue of how  much
  it  cost to produce but does the person planting it make
  a  decent  living? And who ends up eating  the  produce?
  Nation  building  is about the ability and  freedom  and
  flexibility to make strategic choices in finance,  trade
  and  investment for oneself.  If nations are willing  to
  accept   higher   prices  in  order   to   acquire   the
  technologies to compete later, that should be the  right
  of sovereign nations to decide.
  
  14.   It  is  ironic  that  the  very  same  people  who
   advocate freedom of speech and rights of expression  are
  the  very  same to clamp down hard on what they  see  as
  dissenting   views  on  their  brand  of  globalisation.
  Malaysia's  rejection  of  the  IMF  formula   and   the
  decision  to  regain exchange rate control and  regulate
  the   flows  of  short  term  capital  have   now   been
  reluctantly  accepted by the international community  as
  a  viable alternative to the IMF prescription. By  their
  own  admission, a 'cure all' for economic  ills  of  the
  world  simply does not exist. Yet barely are we  out  of
  the  crisis,  a new 'prescription' is being forced  down
  our  throats. How soon we forget. And what is the  price
  of such a memory lapse?
  
  15.   Developing nations must ask themselves where  they
  want  to go from here. What are the options open to them
  and   what  they  intend  to  do  about  it.  While  the
  developed   world   embraces  the  new  knowledge-driven
  economy in all eagerness, developing economies,  to  the
   level  that  is  comfortable and attainable,  must  also
  embark  on  a  quest  for knowledge in  all  its  forms.
  Knowledge  is  the  domain of all the  citizens  of  the
  world  and  cuts across all strata of economic activity.
  It  is  certainly not limited to cutting edge technology
  and the ICT sector, as we are commonly led to believe.
  
  16.   It  is on this premise that Malaysia has  embarked
  on  an  agenda for intensification of knowledge  use  in
  all  sectors  of the economy, new and traditional.  This
  entails the concerted effort of all stakeholders in  the
  Malaysian  economy  to acquire and  generate  bodies  of
  knowledge.  Coupled  with  the  ability  to  effectively
  translate   knowledge  into  technological  and   social
  advancement  that elevates the living standards  of  the
  populace, this is empowerment in its truest sense.
  
  17.    `Technology-based  economic  development'  is   a
  unique  phenomenon. Development was  once  a  matter  of
  accumulating  physical and human  capital.  Within  that
   process  there  is  what is known  as  the  'convergence
  factor'.  This  assumes that a well-governed  developing
  country experiences high returns from investment,  which
  in  turn  attracts  an inflow of foreign  capital,  thus
  narrowing the gap between rich and poor nations.
  
  18.   Technological advancement, however,  dances  to  a
  different  tune.  With increasing returns  to  scale  in
  their  favour,  regions with advanced  technologies  are
  best  placed  to further innovate, with the gap  between
  the  technological  haves and have-nots  ever  widening.
  Innovation  requires  physical,  financial  and   social
  infrastructure  -- demanding even to the  most  advanced
  of  nations.   But a developing country  grappling  with
  limited resources and a multitude of needs will fail  to
  innovate.   Worse still whatever talents they  may  have
  would  be  enticed away because they lack the facilities
  and   could  not  match  the  terms  offered   by   rich
  countries.
   
  19.    Emerging  economies,  therefore,  must  see   the
  process   of   globalisation  from  all  aspects.   Most
  decision  making  at the international level  seemed  to
  safeguard  the  interests of the more matured  economies
  without   regard   to  national  sovereignty,   economic
  freedom,     economic    empowerment,     socio-economic
  programmes,  and  technology  development  agenda  being
  undertaken by developing nations.
  
  20.   It  is  precisely in this context that  the  Smart
  Partnership  practice promises to make the most  impact.
  Smart  partnership can help unify concerns  and  actions
  and   to   formulate  a  common  stand  and  embark   on
  cooperative  actions in order  to counter any  perceived
  negative   forces   of  globalisation   affecting    the
  emerging   economies.  The smart partnership  dialogues,
  such  as  this,  can  well  serve  as  focal  points  to
  deliberate  and share our views and experiences  and  to
  nurture  continued interactions among members and  smart
   partners in between dialogues.
  
  21.   I  observe that CPTM, the Commonwealth Partnership
  for  Technology Management, can assume a catalytic  role
  in  synergising  the many different  dimensions  of  the
  subject  of globalisation with a truly achievable  `win-
  win'  result.   `National smart partnership  hubs'  will
  have  to  come forward, and work closely with CPTM,  and
  set  priorities  for action.  In this  regard,  I  would
  like  to  offer MIGHT, the `Malaysian smart  partnership
  hub' to assist whenever we can.
  
  22.    I   wish  all  smart  partners  a  fruitful   and
  stimulating dialogue.
  
 


Sumber : Pejabat Perdana Menteri