The New Nation - Internet Edition

National Security Council

THE idea of forming a National Security Council (NSC) has been floated. Knowledgeable quarters would by and large favourably react to the proposal considering its relevance to the present conditions in Bangladesh and the heightened need to oversee the security of the country in the face of growing challenges. The people do not want a 9/11 type of situation to engulf and threaten the country's well-being again, and would be all for such a Security Council to ensure that ruinous events do nor push the country towards anarchy and destruction even under an elected and constitutional government.

The people it is believed would love to see that such a body that would include the chiefs of the armed forces, among others, would function and see to it that the security of the country, economic, social, political, environmental, cannot be threatened and initiatives can be taken right in time to save the country from very ruinous developments. All quarters may not be happy with the NSC idea from an apprehension of institutionalising a role of the armed forces in the running of the country. Reportedly, the incumbent government is seriously considering the formation of such a body.

But those quarters who instinctively and negatively reacted to the idea before should seek to know what the government's plans are in this regard. Because, a properly set up NSC can be a source of strength for the nation. Such councils are there in many democratically governed countries including the United States of America. Thus, it should be only logical that the role of the armed forces should be institutionalised in our conditions through the NSC for taking advantage of their services. The NSC should be rightly perceived as a safety mechanism only to ensure that the democratic system after the elections, cannot be vitiated once again by interested quarters to rock the country's stability, peace and progress.

Cash reserve ratio shortage

TWENTY-FIVE out of 48 banks have defaulted in their cash reserve ratio (CRR). Among the defaulting institutions some are Nationalised Commercial Banks (NCBs). Banks need to keep 18 per cent of their total deposits with the central bank, and invest the rest 82 per cent in the market. The central bank allows commercial banks to fulfil upto 13 per cent of CRR with bonds, debentures, and the like. Rest 5 per cent needs to be fulfilled by hard cash. Despite that more than half of the banks, both private and nationalised banks, have become defaulters in fulfilling their CRR.

The central bank has provision to take punitive measures against CRR default. For 15 days defaulting banks are fined 10 per cent on the defaulting amount. For 21 days or more higher fine is to be imposed even on bank directors. Even then why so many banks have become defeaulters on account of CRR is not easy to understand.

CRR shortage is not new, in the past on several occasions it was noticed. The central bank in the past was hardly able to handle the situation effectively with the firm assurance from the banks that such default would not occur in future. This time also widespread CRR shortage hints that the central bank did not take measures in time.

People conversant with fiscal and monetary policies say that it is not the laxity of the central bank alone that has led to CRR shortage. It could be due to outside interference in the affairs of the central bank, that is, influence by the government to show lenience to some of the banks. Interference in normal monetary and fiscal policies and cheap appeasement of powerful quarters may give rise to a serious situation which could be difficult to repair. We, therefore, would caution the government and the central bank to be fully alert.

Badawi administration back in power

Dr.Abdul Ruff

The biggest sea-change has taken place in Malaysian politics in almost 40 years with opposition Islamists and reformists winning control of five states in snap polls held on the 8th of March and giving the government a humiliating wake-up call. Prime Minister Abdullah Ahmad Badawi's multi-racial National Front coalition, which had won an unprecedented 90% of all seats in parliament last election in 2004, has now won just a simple majority in parliament. Barisan Nasional party has effectively ruled since independence from Britain in 1957. Malaysia's Parliament was dissolved on February 13, 2008, The poll, called before it was due in May 2009, was widely seen as a referendum on Badawi's rule.

Results from the elections commission showed the National Front with 140 seats or 63.1% parliamentary seats in the 222-seat parliament versus 82 for the opposition or 36.9% of. Another major shock for the Barisan came in Penang where after 36 years of continuous rule, it lost to a loose alliance of opposition parties DAP, PKR and Pas. The opposition will form the next state government in Penang for second time in history. Gerakan, then an opposition party, won Penang almost 40 years ago. In the parliamentary poll the National Front lost its two-thirds majority - needed to make constitutional changes - and control of four state assemblies. It did, however, win a simple majority, taking 139 out of 219 seats, with three more seats yet to declare. Opposition figure Anwar Ibrahim hailed the result as a message that it was time for change in Malaysia. Anwar's Justice Party has 31 seats out of the opposition's 82 so far, making him the leader of the opposition.

Malaysia's main ruling party, the United Malays National Organization (UMNO), has decided to keep Abdullah Ahmad Badawi as both its leader and prime minister and he has since assumed office. A key partner in the multi-racial coalition, the Malaysian Chinese Association (MCA), dismissed speculation the party might pull out of the coalition that has ruled Malaysia uninterrupted since independence from Britain in 1957, and the Malaysian Indian Congress (MIC) followed suit after the UMNO meeting. Malaysia's ruling Barisan National coalition was considered certain to be re-elected in the poll, but risks a backlash by Buddhist ethnic Chinese and Hindu ethnic Indians. The opposition, which wants to deny Barisan a two-thirds majority in parliament, the level needed to change the constitution, drew a protest vote over rising food and fuel costs, street crimes and an influx of cheap foreign labor.

Abdullah's poor performance nationally was compounded by the fact that his own home state, the industrial heartland of Penang, fell to the opposition. Abdullah, who only four years ago led the coalition to a record election victory on a wave of hope for change, faced a bleak political future, his aides stunned but not willing to concede that he must step down. "Frankly, this is not really the time because a lot of component parties (of Barisan) have been decimated," one close aide said. "We have lost a few people and I think it's time to consolidate." Though Prime Minister Abdullah Badawi's Barisan Nasional party won all the six seats, it lost in provincial polls in Penang and Kelantan. Malaysian Indian Congress (MIC) President Vellu, who had served eight terms in Parliament and was Works Minister of Malaysia for long, was given the worst birthday gift on a day he turned 72. Another high-profile candidate who lost today was Family Welfare Minister Shahrizat, who was defeated by political novice Nurul Izza Anwar, daughter of former deputy premier and opposition leader Anwar Ibrahim.

The opposition won in Kelantan as well as Selangor, Perak, Kedah and Penang. There are many people who have as many suspicions about Anwar as about the National Front's leaders. The streets of Kuala Lumpur were unusually quiet after the declaration of poll results, with many older Malaysians fearful of trouble. The last time the coalition suffered a heavy setback, in 1969, race riots erupted. "I am shocked. It feels Malaysia is a whole new country. It feels like it has been reborn, a 27-year-old civil engineer, said shopping in the capital. Some people are glad that Malaysia now had a strong opposition to press the government. "It's good to give some pressure for Barisan Nasional," they reason. Abdullah Ahmad Badawi, has been Prime Minister since 2003, resisted calls to resign. Abdullah urged calm, amid fears there may be violence in the wake of the result. Apsfrrty spokes-person, Khairy Jamaluddin, told reporters: "We suffered a lot of losses tonight. But we are going to fight on. We are not going to quit. It is not the end of the world and we are going to get through this." Chinese and Indian ethnic minority voters deserted the National Front, in power since 1957.

Analysts blame ethnic tensions, crime and inflation for a drop in his government's popularity. Ethnic minorities make up more than a third of the population. Many complain that government policy has denied them fair access to jobs, education, and housing. Growing tensions between minority communities and the Malay majority have dominated the election campaign and the government has appealed for calm. The last time the National Front suffered a big setback, in 1969, it resulted in race riots, dozens of deaths and a state of emergency. Malaysia is largely a mix of ethnic Malays, which make up about 55 percent of the population, and ethnic Chinese and Indians, who account for about a third. The pro-government media, Abdullah's cheer-leader during the campaign, changed tack on 09 March, urging Barisan to ensure better job and education opportunities in this multi-racial nation.

It appears anti-incumbency factor has aided to reduce the performance of the ruling coalition and helped the opposition to make inroads into ruling pockets. Hatred campaign was an added attraction in the poll result. The leftist Chinese-backed Democratic Action Party (DAP) won Penang, the hub for Malaysia's electronics industry, which accounts for about half of exports.

The opposition Islamist party PAS scored shock victories in the northern heartland states of Kedah and Perak and easily retained power in its stronghold in northeastern Kelantan state. DAP and PAS also joined the People's Justice Party, or Party Keadilan, to take control of the industrial state of Selangor and almost all the seats in capital Kuala Lumpur.

A protest vote from Chinese and Indians, upset over what they saw as racial inequality in terms of business, job and education opportunities, had been expected. The Indians were merciless, voting out the leader of the coalition's Indian component party and handing a seat to an Indian activist currently in detention.

In India politicians make a big hue and cry when a foreigner contests an election or tries to be promoted to a cabinet position or so, but abroad Indians also know how to secure berths in cabinets and try hard even to reach the top slot of government and state power. More than 20,000 ethnic Indians attended the rally organized by the group on November 25 last year in Kuala Lumpur. Their grouse was mainly against Vellu, who they claimed had not done enough to uplift the minority community in over two decades since he had held the post. But Malays, who are all Muslims and traditionally support Barisan in good times and bad, completed a perfect storm for the government, handing the opposition Islamists a record vote in what was perceived as a protest against rising prices. "Tomorrow we will start building a brighter future," said opposition icon Anwar Ibrahim, de facto leader of Party Keadilan, which emerged as the biggest opposition party in federal parliament with 31 seats. "This is a new dawn for Malaysia." Anwar, a Malay and former deputy premier, is widely seen as the only politician who could unify the ideologically divided opposition into a coherent and credible political force, though many political experts see this an almost possible task. Anwar was banned from standing in the elections because of a criminal record-he spent six years in jail until 2004 on what he called trumped-up charges-but is expected to take over his old seat from his wife, who has held it since his 1998 jailing.

Consisting of two regions separated by some 640 miles of the South China Sea, Malaysia is a federation of 13 states and three federal territories. It is one of the region's key tourist destinations, offering excellent beaches and brilliant scenery. Dense rainforests in the eastern states of Sarawak and Sabah, on the island of Borneo, are a refuge for wildlife and tribal traditions. Malaysia's economic prospects remain healthy, although it faces fierce competition from its neighbors, and from China and India.

Malaysia boasts one of south-east Asia's most vibrant economies, the fruit of decades of industrial growth and political stability. Its multi-ethnic, multi-religious society encompasses a majority Muslim population in most of its states and an economically-powerful Chinese community. ethnic Chinese continue to hold economic power and are the wealthiest community. Free trade talks were opened with the US, but the US has said it will not be able to conclude a deal in 2007 as the two sides failed to meet a deadline to secure a deal before President George W Bush's fast-track trade authority expired in June.

The country is among the world's biggest producers of computer disk drives, palm oil, rubber and timber. It has a state-controlled car maker, Proton, and tourism has considerable room for expansion. But it also faces serious challenges - politically, in the form of sustaining stability in the face of religious differences and the ethnic wealth gap, and, environmentally, in preserving its valuable forests. Malaysia's human rights record has come in for international criticism. Internal security laws allow suspects to be detained without charge or trial.

Political experts and economists wondered aloud whether the Barisan government could now pursue its agenda, including plans for $325 billion in development zones across the country. Without a two-thirds parliamentary majority, Barisan can no longer change the constitution or make some key appointments.

"This is probably not good news for the equity market or the ringgit," according to a Singapore-based head of Asia Research for Investment Banking. When all other South East Asian (SEA) countries are developing faster and so much ahead of Malaysia in this era of Asian economic dynamism and globalization, many feel that Malaysia is heading to the place of no-where. Malaysia, being the world's palm oil exporter and a net oil exporter, should well be on par or exceed the economic performances of Taiwan or South Korea.

One fails to understand how the Hindutva forces, actively harboring the anti-Islamic sentiments in India and Nepal-and vitiated the political and cultural atmosphere in Indian sub-continent with dirty poison- have, like the Hindu Rights Action Force (Hindraf), also entered the poll fray in Malaysia, though, that is not the only cause strengthening the opposition that has affected the fortunes of the ruling front. (India should also promote similar non-Indian ethnic groupings in its political spectrum too, in stead of trying to diffuse them in Indian parties and suppressing their voices.)

However, the Malaysian ruling coalition now actually faces the danger of getting its majority dented and it has to be seen how the ruling front the Barisan National (BN) recaptures its lost ground and prestige in the coming days. With the ruling coalition back in power, Abdullah Ahmad Badawi would try to revive the importance it had in the past.

It's still the occupation that matters most

Aijaz Zaka Syed

IN AN Op Ed piece for the International Herald Tribune three years ago, I wrote: "If Bush wants to usher in a new era of democracy and peace in the Muslim world, he should be prepared to deal with the (people's) genuine and legitimate representatives." (IHT, June 29, 2005).

Commenting on Washington's refusal to engage the groups like Hamas because it views them as 'terrorist organizations', I had pointed out that "terrorists do not take part in elections and political processes," as Hamas has repeatedly done.

That was three years ago. A friend recently forwarded the article back to me noting how my argument was still relevant. Indeed, reading it today you are struck by the fact that little has changed in the Middle East and the US' approach to the Muslim world.

Three years on, the same hypocrisy, the same double standards and the same obstinate refusal to see reason and the big picture prevail in Washington and indeed much of the West.

After yet another relentless bombing campaign by the brave Israeli Defense Forces on a besieged and battered people that killed nearly 150 Palestinians - dozens of them infants as young as a month-old - Condi Rice arrived in the Middle East on yet another of her whistle-stop tours.

If some of us thought that the murderous campaign against a defenceless population would evoke at least a perfunctory condemnation by the world's most powerful diplomat, they were disappointed.

Rubbing shoulders with a dazed and distraught looking Mahmoud Abbas in Ramallah, Condi looked into television cameras and with a straight face held Hamas responsible for the Gaza carnage. "The people who are firing rockets do not want peace, they sow instability, that is what Hamas is doing," she pointed out.

You have to hand it to this administration. It remains remarkably consistent in sticking to the script provided by its Zionist friends, crisis after crisis, blitz after blitz.

Facts be damned! To hell with historical and ground realities! They cannot be allowed to interfere with Israel's divine right to the land stretching from Cairo to Constantinople.

Does it matter if the original inhabitants of the land for thousands of years find themselves homeless and persecuted? And who's losing sleep over the killings of a couple of hundreds of Palestinians every now and then! What matters is the lasting peace and happiness - of the people of Israel. Condi's call to Fatah leadership for 'renewed peace talks' with Israel came even as the Israelis raided more Palestinian homes and killed more babies in Gaza.

Peace, negotiations, dialogue, stability and hope…

Do these words mean anything anymore? Does the gaped-tooth mandarin even know what she is talking about? What planet does Dr Rice live on?

For a people under siege, incarcerated and impoverished in their homes for years and decades, these words are not just empty rhetoric; they are salt and pepper on their wounds.

Clearly, this was a wee bit too much even for the ever-ingratiating leaders of Fatah. So Abu Mazen steeled himself and pleaded with his good friend Ehud Olmert to call off the aggression against the Palestinians.

If the cynics and sceptics like me were surprised by Abu Mazen's courage call off the 'peace talks' with Israel - as if these talks over the past several years and decades have made a difference - he quickly cleared the notion

Abbas assured Rice he was ready to resume negotiations with Israel, if only the Israeli leadership be so kind as to stop these rather inconvenient attacks on Gaza. Not that he minds the killings of 'Hamas terrorists'. It's just that in the noise and din of this bombing campaign, it's rather difficult to hear what the other side is talking about during the negotiations!

Is it any surprising then Israel and US view the Palestinian leader as their 'loyal friend and invaluable ally.'

So what if in the process the Palestinians' legitimate representatives, chosen through the globally recognised free and fair polls, are sidelined and cheated out of power.

And what if this approach actually exacerbates the Palestine-Israel conflict fuelling anger and hatred against the US and West in the restive Muslim world. Who is interested in resolving this conflict anyway?

In fact, it turns out that even as Bush was sermonising to us on the virtues of democracy and freedom, his administration including Rice was working with the rogue elements in Fatah to unseat the democratically elected government of Hamas. If this isn't hypocrisy, what is?

The Vanity Fair report, now corroborated by the administration officials as well as Palestinian sources, hit Rice in the face during her Ramallah Press conference even as she blamed Hamas for the mess in Gaza.

The US armed and heavily financed Fatah strongman Dhahlan to mount a coup against the Hamas government after the 2006 elections.

"But the secret plan backfired, resulting in a further setback for American foreign policy under Bush," says British journalist David Rose in the Vanity Fair's latest issue. "Instead of driving its enemies out of power, the US-backed Fatah fighters inadvertently provoked Hamas to seize total control of Gaza."

The Vanity Fair expose also puts in perspective why the Makkah Accord between Hamas and Fatah - painstakingly brokered by King Abdullah of Saudi Arabia - that led to peace and the Palestinian unity government collapsed so soon.

Rice relentlessly pushed Abbas to sack the Hamas government. At the same time, the Middle East Quartet led by the US served an ultimatum on Hamas leadership - recognize Israel or face the total blockade of the Palestinian Territories.

How Abbas gave in to the US and Israeli pressure to sack the Hamas government leading to unprecedented bloodshed between the Palestinian groups is part of history.

The Rice visit and Vanity Fair report coincided with international aid agencies warning of the worst humanitarian crisis in the territory since the 1967 war, a consequence of the punishing blockade by Israel and Western agencies.

When will the US and rest of the West realise that the dirty, underhand tricks like the anti-Hamas coup will never resolve the 'Palestine problem'. The days of dividing the Palestinians and Arabs so Israel can rule are over. If they genuinely want peace in the Middle East and rest of the world, they'll have to address the real issue at the heart of this conflict. It's still the Occupation, stupid!

(Aijaz Zaka Syed is a senior editor and columnist of Khaleej Times. Write to him at aijazsyed@khaleejtimes.com )