The Best Leadership Advice I Ever Got

by Marshall Goldsmith



Like many young Ph.D. students, I was deeply impressed with my own intelligence, wisdom and profound insights into the human condition. I consistently amazed myself with my ability to judge others and see what they were doing wrong.


UCLA Professor Fred Case was my advisor and head of the Los Angeles City Planning Commission - where I was doing my dissertation research. At this point in my career, he was clearly the most important person in my professional life. He was also a man that I sincerely respected. He had done an amazing amount to help the city become a better place. He was also doing a lot to help me.


Although he was normally in a very upbeat mood, one day Dr. Case seemed annoyed. He looked at me and growled, "Marshall, what is the problem with you? I am getting feedback from some people at City Hall that you are coming across as negative, angry and judgmental. What's going on?"


"You can't believe how inefficient the city government is!" I ranted. I immediately proceeded to give several examples of how taxpayer's money was not being used in the way that I thought it should be. I was convinced that the city could be a much better place if the leaders just listened to me.


"What a stunning breakthrough!" Dr. Case sarcastically remarked, "You, Marshall Goldsmith, have discovered that our city government is inefficient! I hate to tell you this Marshall, but my barber who is cutting hair down on the corner figured this out several years ago. What else is bothering you?"


Undeterred by this temporary setback, I angrily proceeded to point out several minor examples of behavior that could be classified as favoritism toward rich political benefactors.


Dr. Case was now laughing. "Stunning breakthrough number two!" he chuckled. "Your profound investigative skills have led to the discovery that politicians may give a more attention to their major campaign contributors than to people who support their opponents. I am sorry to report that my barber has also known this for years. I am afraid that we can't give you a Ph.D. for this level of insight."


As he looked at me, his face showed the wisdom that can only come from years of experience. He said, "I know that you think that I may be old and 'behind the times', but I have been working down there at City Hall for years. Did it ever dawn on you that even though I may be slow, perhaps even I have figured some of this stuff out?"


Then he delivered the advice I will never forget. "Marshall," he explained, "you are becoming a 'pain in the butt'. You are not helping the people who are supposed to be your clients. You are not helping me and you are not helping yourself. I am going to give you two options:


"Option A - Continue to be angry, negative and judgmental. If you chose this option, you will be fired, you probably will never graduate and you may have wasted the last four years of your life.


"Option B - Start having some fun. Keep trying to make a constructive difference, but do it in a way that is positive for you and the people around you.


"My advice is this: You are young. Life is short. Start having fun..


"What option are you going to choose, son?"


I finally laughed and replied, "Dr. Case, I think it is time for me to start having some fun!"


He smiled knowingly and said, "You are a wise young man."


Most of my life is spent working with leaders in huge organizations. It doesn't take a genius to figure out that things are not always as efficient as they could be - almost every employee has made this breakthrough discovery. It also doesn't take a genius to learn that occasionally people are more interested in their own advancement than the welfare of the company. Many employees have already figured out this one as well.


Real leaders are not people who can point out what is wrong. Almost anyone can do that. Real leaders are people who can make things better.


Dr. Case taught me a great lesson. His coaching didn't just help me get a Ph.D. and become a better consultant. He helped me have a better life.


Think about your own behavior at work. Are you communicating a sense of joy and enthusiasm to the people around you - or are you spending too much time in the role of angry, judgmental critic? Do you have any co-workers who are acting like I did? Are you just getting annoyed or are you trying to help them - in same way that Dr. Case helped me? If you haven't been trying to help them, why not give it a try. Perhaps they will write a story about you someday!

From the Economist

OPEC

The Organisation of Petroleum Exporting Countries, a CARTEL set up in 1960 that wrought havoc in industrialised countries during the 1970s and early 1980s by forcing up oil prices (which quadrupled in a few weeks during 1973–74 alone), resulting in high INFLATION and slow GROWTH. A lot of productive CAPITAL equipment that had been viable at lower oil prices proved to be unprofitable to run at the higher prices and was shut down. Some economists reckon that MARKET FORCES would have driven up oil prices anyway and that OPEC merely capitalised on the opportunity. Since the early 1980s, OPEC's influence has waned. Many firms have switched to production methods that need less oil, or less energy altogether. Non-OPEC producers such as the UK have brought new oil fields on stream. And some individual members of the cartel have broken ranks by failing to restrict their oil production, resulting in lower oil prices.

Real options theory

A newish theory of how to take INVESTMENT decisions when the future is uncertain, which draws parallels between the real economy and the use and valuation of financial options. It is becoming increasingly fashionable at business schools and even in the boardroom.

Traditional investment theory says that when a firm evaluates a proposed project, it should calculate the project’s NET PRESENT VALUE (NPV) and if it is positive, go ahead.

Real options theory assumes that FIRMS also have some choice in when to invest. In other words, the project is like an option: there is an opportunity, but not an obligation, to go ahead with it. As with financial options, the interesting question is when to exercise the option: certainly not when it is out of the money (the cost of investing exceeds the benefit). Financial options should not necessarily be exercised as soon as they are in the money (the benefit from exercising exceeds the cost). It may be better to wait until it is deep in the money (the benefit is far above the cost). Likewise, companies should not necessarily invest as soon as a project has a positive NPV. It may pay to wait.

Most firms’ investment opportunities have embedded in them many managerial options. For instance, consider an oil company whose bosses think they have discovered an oil field, but they are uncertain about how much oil it contains and what the PRICE of oil will be once they start to pump. Option one: to buy or lease the land and explore? Option two: if they find oil, to start to pump? Whether to exercise these options will depend on the oil price and what it is likely to do in future. Because oil prices are highly volatile, it might not make sense to go ahead with production until the oil price is far above the price at which traditional investment theory would say that the NPV is positive and give the investment the green light.

Options on real ASSETS behave rather like financial options (a SHARE option, say). The similarities are such that they can, at least in theory, be valued according to the same methodology. In the case of the oil company, for instance, the cost of LAND corresponds to the down-payment on a call (right to buy) option, and the extra investment needed to start production to its strike price (the money that must be paid if the option is exercised). As with financial options, the longer the option lasts before it expires and the more volatile is the price of the underlying asset (in this case, oil) the more the option is worth. This is the theory. In practice, pricing financial options is often tricky, and valuing real options is harder still.

Sticky prices

Petrol-pump PRICES do not change every time the oil price changes, and holiday prices and standard hotel rates are fixed for months. Sticky prices are slow to change in response to changes in SUPPLY or DEMAND. As a result there is, at least temporarily, DISEQUILIBRIUM in the market. The causes of stickiness include MENU COSTS, inadequate information, consumers’ dislike of frequent price changes and long-term contracts with fixed prices. Prices change only when the cost of leaving them unchanged exceeds the expense of adjusting them. In FINANCIAL MARKETS, prices move all the time because the cost of quoting the wrong price can be huge. In other industries, the penalty may be much less severe. Small disequilibria in, say, the pricing of hotel rooms will not make much difference. So hotel prices are often sticky.

Commodity

A comparatively homogeneous product that can typically be bought in bulk. It usually refers to a raw material – oil, cotton, cocoa, silver – but can also describe a manufactured product used to make other things, for example, microchips used in personal computers. Commodities are often traded on commodity exchanges. On AVERAGE, the PRICE of natural commodities has fallen steadily in REAL TERMS in defiance of some predictions that growing CONSUMPTION of non-renewables such as copper would force prices up. At times the oil price has risen sharply in real terms, most notably during the 1970s, but this was due not to the exhaustion of limited supplies but to rationing by the OPEC CARTEL, or war, or fear of it, particularly in the oil-rich Middle East.

Asymmetric shock

When something unexpected happens that affects one economy (or part of an economy) more than the rest. This can create big problems for policymakers if they are trying to set a macroeconomic policy that works for both the area affected by the shock and the unaffected area. For instance, some economic areas may be oil exporters and thus highly dependent on the price of oil, but other areas are not. If the oil price plunges, the oil-dependent area would benefit from policies designed to boost demand that might be unsuited to the needs of the rest of the economy. This may be a constant problem for those responsible for setting the interest rate for the euro given the big differences--and different potential exposures to shocks--among the economies within the euro zone.

Inflation

Rising PRICES, across the board. Inflation means less bang for your buck, as it erodes the purchasing power of a unit of currency. Inflation usually refers to CONSUMER PRICES, but it can also be applied to other prices (wholesale goods, WAGES, ASSETS, and so on). It is usually expressed as an annual percentage rate of change on an INDEX NUMBER. For much of human history inflation has not been an important part of economic life. Before 1930, prices were as likely to fall as rise during any given year, and in the long run these ups and downs usually cancelled each other out. By contrast, by the end of the 20th century, 60-year-old Americans had seen prices rise by over 1,000% during their lifetime. The most spectacular period of inflation in industrialised countries took place during the 1970s, partly as a result of sharp increases in oil prices implemented by the OPEC CARTEL. Although these countries have mostly regained control over inflation since the 1980s, it continued to be a source of serious problems in many DEVELOPING COUNTRIES.

Inflation would not do much damage if it were predictable, as everybody could build into their decision making the prospect of higher prices in future. In practice, it is unpredictable, which means that people are often surprised by price increases. This reduces economic efficiency, not least because people take fewer risks to minimise the chances of suffering too severely from a PRICE SHOCK. The faster the rate of inflation, the harder it is to predict future inflation. Indeed, this uncertainty can cause people to lose confidence in a currency as a store of value. This is why HYPER-INFLATION is so damaging.

Most economists agree that an economy is most likely to function efficiently if inflation is low. Ideally, MACROECONOMIC POLICY should aim for stable prices. Some economists argue that a low level of inflation can be a good thing, however, if it is a result of INNOVATION. New products are launched at high prices, which quickly come down through COMPETITION. Most economists reckon that DEFLATION (falling AVERAGE prices) is best avoided.
To keep inflation low you need to know what causes it. Economists have plenty of theories but no absolutely cast-iron conclusions. Inflation, Milton FRIEDMAN once said, “is always and everywhere a monetary phenomenon”. Monetarists reckon that to stabilise prices the rate of GROWTH of the MONEY SUPPLY needs to be carefully controlled. However, implementing this has proven difficult, as the relationship between measures of the money supply identified by monetarists and the rate of inflation has typically broken down as soon as policymakers have tried to target it. ­KEYNESIAN economists believe that inflation can occur independently of monetary conditions. Other economists focus on the importance of institutional factors, such as whether the INTEREST RATE is set by politicians or (preferably) by an independent CENTRAL BANK, and whether that central bank is set an inflation target.

Is there a relationship between inflation and the level of UNEMPLOYMENT? In the 1950s, the PHILLIPS CURVE seemed to indicate that policymakers could trade off higher inflation for lower unemployment. Later experience suggested that although inflating the economy could lower unemployment in the short run, in the long run you ended up with unemployment at least as high as before and rising inflation as well. Economists then came up with the idea of the NAIRU (non-accelerating inflation rate of unemployment), the rate of unemployment below which inflation would start to accelerate. However, in the late 1990s, in both the United States and the UK, the unemployment rate fell well below what most economists thought was the NAIRU yet inflation did not pick up. This caused some economists to argue that technological and other changes wrought by the NEW ECONOMY meant that inflation was dead. Traditionalists said it was merely resting.

Something I Learn Today

"Homo Economicus"

- The assumption that humans/individuals always act to maximize their welfare.

"Endowment Effect"

- The value someone puts on something, depends on whether he actually owns it. When someone owns something, he places a higher value on it than he did when he acquired it.

*This behavior was observed by Richard Thaler about 28 years ago and called it "the endowment effect"

An incompetent, not-so-nice guy

An old article to remind us of Bodohwi

From MalaysiaKini.com

Steven Gan Nov 27, 07 12:43pm

It's remarkable that it took this long for some to see the real Abdullah Ahmad Badawi. Then again, perhaps not. After all, his American-style spin-doctoring pulled enough wool over our eyes.

Still, the chink in Abdullah's armour is beginning to show and this has given away his game. Indeed, the prime minister is becoming a victim of his own elaborate 'spin'. Increasingly, Malaysians are questioning his leadership when previously few dared to without ending up looking foolish, as Abdullah is still enormously popular. But it's there for all to see - his sloth-like administration, his flip-flopping in decision-making and his seeming disinterest in state affairs.

This month, Abdullah reached a milestone - on Nov 1, he marked four years as PM. It passed without much fanfare as there's really little to celebrate. Abdullah is arguably the most incompetent PM we ever had. He has just sleep-walked his way through his first term.
When he took over from Dr Mahathir Mohamad, he promised Malaysians the sky - he vowed to wipe out corruption without fear or favour, he asked everyone to tell him the truth even if it hurts, and promised to rid the country of racial and religious polarisation. Surely, Abdullah must be kicking himself now. You don't promise what you cannot deliver. He should have known that he cannot root out corruption without weeding out the real source - the patronage politics in Umno and its sidekicks within the ruling Barisan Nasional coalition.

Moreover, his dilly-dallying over acting on the Lingam tape and his sledgehammer approach to the Bersih and Hindraf protests are the latest in a string of decisions which have let down many, including those who gave him a huge mandate in the 2004 election.

When he moved into his official resident, Seri Perdana, four years ago, Abdullah might have hoped to emulate Junichiro Koizumi - the maverick Japanese leader who led his party to one of the biggest electoral victories in the nation's history and decisively sacked party leaders who opposed his reforms. But he is no Koizumi. Clearly, Abdullah is stumped by his inability to galvanise his own party, let alone the nation.

To paper over his weaknesses, his minders have seen to it that he does not put his foot in his mouth too often on policy issues. When he does give the rare press conference - and it's getting more infrequent by the day - journalists are told to stay away from 'no go' areas. Worse still, his 'elegant silence' administration has been hijacked by two self-appointed spokespersons - de facto law minister Mohd Nazri Abdul Aziz and information czar Zainuddin Maidin. It cannot get any worse than this. Abdullah should realise that his real enemies are not his critics but his sycophants. Indeed, his Achilles' heel is one of his most trusted confidants, son-in-law Khairy Jamaluddin.

Khairy has openly conceded that he needs his father-in-law to 'protect' him while he plots to take over the country's top job within the next 10 years. He is painfully aware that the moment Abdullah steps down, he can kiss his ambitions goodbye. The Khairy plan For Khairy's plan to work, Abdullah must hold on to his job for at least another term. That should provide this 30-something politician the 'protection' he needs to climb up the party hierarchy and shore up his political support. He has one major problem though - with deputy Umno president Najib Abdul Razak next in line to take the reins, Umno Youth chief Hishammuddin Hussein stands out as Khairy's most immediate rival. As Najib's cousin, Hishammuddin is the most obvious successor. This could potentially leave Khairy (right) out in the cold. So expect Khairy to work overtime to ensure that Hishammuddin not elected as one of the three party vice-presidents in the next Umno polls. With his key rival out of the way, Khairy - who will be installed as Umno Youth chief - will be right on track in his quest for power. This explains why Abdullah cannot rock the boat too much by rubbing up the party chieftains the wrong way - hence, his uninspired leadership.

So Abdullah is no Koizumi. But at least, he can be Habibie. BJ Habibie was the accidental president in post-Suharto Indonesia. In the one year he was in power, he initiated poll reforms, liberated the media, free political prisoners and let East Timor go. Not bad for a colourless technocrat.

Abdullah could still be the bureaucrat to bring similar reforms in Malaysia. That is, if his son-in-law allows him to.

PS: I doubt that Bodohwi could bring any kind of reform to the nation...any kind. He's been the PM for more than 4 years now. What would be the smallest possible reform he has to show for? Nothing.

'Petronas bosses live like oil kings'

From MalaysiaKini.com

Athi Veeranggan Jun 17, 08 4:58pm

Private jets, helicopters, mansions and luxury cars are among purchases that national oil and gas company Petronas has bought for the use of its executives - and "it must stop".

Penang Chief Minister Lim Guan Eng said this when unleashing more criticism of the “royalty-like” lifestyle allegedly led by company officials at a time when millions of Malaysians are reeling from the impact of the fuel-price hike. "They should stop behaving like kings who feel they are not accountable to anyone but themselves," he told reporters. "They have private jets - we want to know how many. They have luxury cars - we want to know how many," he said. Petronas has frequently organised trips abroad and costly banquets, he said, not to mention spending “millions” of ringgit on the National Philharmonic Orchestra and bailing out failed projects operated by “government-backed tycoons” (see chart below). "This is anti-national, against the public interest and unMalaysian. It must not go on," Lim said after launching the Penang office of global service provider Axon in Georgetown today.

He said he is curious whether the Prime Minister’s Office has sanctioned the expenditure or whether the Petronas board has made autonomous decisions. And even if these are independent decisions, Lim questioned if Prime Minister Abdullah Ahmad Badawi is aware of the situation. Lim dismissed the firm's recent decision to issue a report on its finances, saying it would be too general and only pay lip-service to demands for more accountability. "It will not throw any light on how their expenses were accounted for," he said.

He also said the government's decision to reveal Petronas’ financial standing should be “a sincere and honest bare-all endeavour” that provides detailed information, and “not a comical slideshow for public eye-wash”. The public has a right to know about Petronas’ revenue, expenses, activities, present and future projects, charity works, decision-making process, perks and wage structure, and reasons behind lavish expenditure on gratuitous assets and activities, Lim noted. "It's time for Petronas to reveal how it has managed the country's billions in oil money earned over the past 30 years," he said.

‘Heed people’s wishes’

Petronas president and chief executive officer Mohd Hassan Marican said the company has been publishing its annual report for the past 18 years and while the accounts have been posted on the company website since 2002. "We have nothing to hide," he said, adding that Petronas has done more than it is legally required to do. The Petroleum Development Act 1974 states that the national oil company is answerable only to the prime minister and does not come under the purview of the Parliament. The price hike of 40 percent for petrol and 63 percent for diesel since June 5 has triggered widespread dissent and protests, with Petronas becoming the primary target of public anger and frustration. Lim said the call to boycott Petronas underlines strong grassroots feelings and desperation and that “the government must heed the people's wishes”. Open calls and emails are circulating urging Malaysians to boycott Petronas products.

However, Mohd Hassan said this would affect petrol station owners, dealers who supply products to stations and shareholders of Petronas Dagangan, more than Petronas itself.

FAQs About Oil Price

Why does the price of gasoline continue to rise?

Gasoline prices are determined by a set of unique conditions within different localities and vary widely around the world. In many countries, the largest single element is not the cost of crude oil, but rather government taxes. In some European countries, taxes can represent as much as 75% of the price the customer pays at the pump.
Nevertheless, the cost of crude is significant and, in countries where gasoline taxes are lower, it is the major factor in the cost of gasoline. Crude oil is trading well above $100 per barrel on the open market, and is being driven by the world’s growing demand for energy.
Finally, the price of gasoline also needs to include refining, distribution and operating costs. So the margin left for oil companies is usually a small percentage of the pump price – much lower than most customers realize. Worldwide demand for crude oil and refined products has increased rapidly in recent years, led by the explosive growth of the economies in China, India and other Pacific Rim nations, and the supply of crude has been hard put to keep pace with that demand. Some people suggest that crude prices also are being elevated by geopolitical tensions and, possibly, by financial speculators. To whatever extent these factors exist, they are beyond our control. We must deal with the market as it is, and in this regard, supply and demand prevail.

Don’t the major oil companies control the crude market?

There are more than 3,500 oil companies in the world. Take Shell for example. The company produces only 3% of the world’s crude, and they refine more crude oil than they produce; which then requires them to purchase oil on the spot market to meet refining and retail demands. As a result, even a company as big as Shell is subject to market fluctuations in price and supply; more so are other oil companies. Crude prices in each country are set by supply and demand, and are influenced by such factors as OPEC supply restrictions, weather, stock levels and the sentiment of financial markets.

Oil companies continue to report record earnings. Aren’t they just profiteering from high crude oil and gasoline prices?

The energy industry is one of the world’s largest and most complex industries. Profits are large because the business is large, with very large investments. Strong earnings among all the major oil companies enable reinvestment in both the upstream and downstream parts of their businesses. The industry is spending at record levels to increase supply to meet the growing global demand for energy.

Why can’t oil companies use their upstream profits to subsidise pump prices?

Producing crude oil involves long-term and high-risk projects requiring billions of dollars in investment over 20 to 30 years. Higher profits in some periods help safeguard investments when oil prices (and profits) are lower at other times.

So what can drivers do to save money on gasoline?

The way you drive and the way you maintain your vehicle can help reduce your fuel consumption and save you money. Here are some tips:

1. Drive smoothly, avoiding heavy acceleration or braking.
2. Manual cars -- change up to a higher gear as early as possible as you accelerate.
3. Automatic cars -- shift up gears more quickly if you ease back on the accelerator once the car gathers momentum.
4. Keep your engine well tuned, check your oil and fix any problems immediately.
5. Make sure your tires are at the correct pressure and not under- or over-inflated.
6. Keep your trunk/boot or back seat clear of unnecessary items that add weight.
7. If you are not using your roof rack or roof box, take it off.
8. Keep your windows closed, especially if you are driving at higher speeds.
9. Always use the recommended grade of oil in your engine.
10. Use cruise control on major roads and in free-flowing traffic.
11. Turn off your engine in heavy traffic to avoid excessive idling.

Hopefully these Q&As have provided you with some insights on the reasons for high oil price....at least some of the reasons, if not all.

Those were the good old days....

Had the article below, by Israel Shamir, been written recently...like a week ago maybe, it would have a different intonation altogether. The writer would've cursed Bodohwi on his incompetency (proven by his baseless illogical policies) and compared him blow-by-blow against his much loved Dr. M. The writer would also have described Malaysia differently e.g. a dollar won't get any Malaysians anything nowadays.

The good old days are behind us.....brace yourself.

A Very Good Reading: The Writings of Israel Shamir

by Dr. Israel Shamir


Take a country populated by diverse communities, the indigenous and immigrant, of roughly equal size. These communities profess different religions and ply different trades. The immigrants are better at business; the natives prefer to till their soil. It could be a description of Palestine with its native Palestinians and the immigrant Jewish communities. But here the comparison ends. In Malaysia, the communities live in peace without UN peacekeepers, they pursue their cultural and religious interests without submitting to bleaching multiculturalism, their country prospers while rejecting the IMF recipes, and it is a native son of soil who stands at the helm of good ship Malaysia.
On a less formal note, Malaysia is warm, wet and exotic. On the monsoon-swayed shore of Andaman Sea, a long-tailed, lithe monkey throws coconuts from the heights of a palm tree, flying fishes jump out of the warm blue sea and splash back, a white triangular sail rises on the horizon. Indians serve their sweet and punchy tea, teh tarik, pouring it with gusto in pulling motion, and neatly place curry on ecologically- sound banana leaves. Malay fishermen unload their haul on the shore and sort it under a broad banyan tree. At night, hundreds of stalls open at the Night Bazaar, feeding, dressing and entertaining locals and tourists.

In Malacca, the oldest-in-East- Asia Catholic church stands next to the Great Mosque next to a Vishnu temple next to a Taoist pagoda. The Dutch-built austere Town Hall is surrounded by spacious British colonial mansions. Narrow streets preserve the charm of the Seventeenth Century, when the Malaccan sultanate was the hub of commerce. Many of its denizens bear proud Portuguese names, but in appearance they do not differ from other residents.
In Penang, old Hakka smugglers warm their bones on the wooden jetties that form a floating island off Georgetown. Tamils sell junk on Armenian street, next to the most advanced chip plant, home to Athlon microprocessor. Yuppies have not taken over all of the Old City, and it reminds of Jaffa as it was before 1948: a modest, humane Eastern city. The glorious Oriental Hotel preserves the days of Somerset Maugham and the Straits' Settlements. Delightful and modish Chinese girls flock out of the convent school. Native Malays carry on their unruffled life in peaceful villages, happily serve in the army and provide the backbone of the administration.

Islam is the state religion, as it had been in the Fourteenth and Fifteenth Centuries, when it peacefully seeped in and eventually became preferred to the older Hindu beliefs. Brought by the traders, Malay Islam is exceedingly tolerant, local, thoroughly adjusted to the place, as it is practically everywhere but on the pages of the New York Times. The girls do not cover their faces, but often wear a scarf, like religious Jewish women. On Fridays, men like to go to a mosque for prayer, the great social unifier and integrator. As Communism was always frowned-upon in Malaya, Islam is the preferred style of social movement.

Prosperity is ubiquitous: perfect roads, new cars, brushed-up and restored relics of the past. There are no beggars, no striking poverty. Malaysians live well: they have given up home cooking and eat out in countless restaurants and at the stalls, where one dollar buys a square meal. Neighbouring Thais and Indonesians flock in and to cook their national dishes. The Twin Towers in the centre of futuristic Kuala Lumpur are the tallest in the world. 9/11 did not happen here, and the hotel security's main worry is Durian, strong-smelling fruit the tourists are prone to smuggle in, disregarding the "No Durian beyond this point" signs.

It is a peaceful land: one rarely sees a policeman or a soldier. There are no security guards in the shopping centres, no visible tension, no American troops or bases, no prostitution, gambling and narcotics.
Evening open-air parties, much swimming in the warm sea, friendly chat, unrushed small trade: in short, a relaxing spot. How come . why do they not fight, these people of different backgrounds?

The secret of the Malaysian success was given away by their Prime Minister, Dr Mahathir bin Muhammad, whom local newspapers affectionately call 'Dr M': "It is better to share a pie than to have all of no pie." In the 1960s, Malaysia was torn by strife, for the native rural Malays felt threatened by the economic success of the Chinese and Indian immigrants, city dwellers with a long tradition of market economy. Numerically, the natives were hardly a majority, rather a plurality, of citizens. Economically, they were nowhere.
Riots were frequent, and destruction appeared imminent. A pie was there to share: mineral resources, oil deposits, tin and rubber, an educated work force, a relatively small population; but the same is true for many countries that nevertheless came to grief.

Where others failed, the Malaysians succeeded: they pursued a New Economic Policy (later called a New Development Policy), aimed to correct imbalances in agreement between the communities. That the pie of national economy should grow and the respective shares of the communities should be increasingly equalised was the idea of NEP and NDP. The prospering immigrant communities understood that disparity can ruin their good life, and agreed to affirmative action in the interest of the indigenous people. The indigenous Malays acquiesced to this relatively slow process.

The affirmative action is not too radical: a Malay student has priority if he wants to study medicine or business management, as before the NEP there were just a few Malay doctors, businessmen, administrators. The native Malay gets a five percent discount when he buys an apartment. Malay businesses have some small tax breaks. In new developments, the developers have to secure 10 percent of flats and houses for the Malays, in order to avoid ghetto formation. Malay is the national language, but there are street signs in Chinese and English; Islam is the state religion, but there is full freedom to practise other religions as well.

A guest from distant Palestine, I cried: Eureka! If we, Israelis and Palestinians, would learn from the Malaysian success, establish equality and take affirmative action to ensure a fair share for each community, Palestine would be at least as prosperous and happy as Malaysia. Even the notorious Jewish settlements would cause little irritation if their founders would ensure a fair share of Palestinian residents. (Nowadays, a Palestinian is not allowed even to tread on their fenced grounds.) Malaysia is an example to emulate. Let us follow the Malaysian way, erase partition, restore broken unity, return refugees home and live together happily ever after. Wealthy and privileged minorities can impose their will for a while, but in the long run, only agreement and fair sharing a la Malaysia will work.

Not only in Palestine: This is a general panacea against the malady of inequality and national strife. In the Twentieth Century, the Masters of Discourse promoted their own patent medicine: partition and transfer. Liberally applied in Greece and Turkey, on the Indian subcontinent, in the Middle East, in the Balkans and Eastern Europe, in the former Soviet Union, and this has already ruined half a planet.
Nowhere had it improved things. Subcontinent Muslims I meet regret the day Pakistan was torn off India. From Tajikistan to Belarus people dream of returning of the Soviet Union. Hungarians and Czechs feel nostalgia for â?¦sterreich. Ravaged Smyrna, devastated Sudetenland and bleeding Palestine confirm that partition wounds do not heal for centuries, and that population transfer ensures future massacres. It should be undone.

The Malaysian way of integration had an alternative, the way of partition, and it was pursued by Singapore, a splinter Overseas-Chinese city-state at the tip of the Malay Peninsula. It has some similarities to the Jewish state: authoritarian rule, vast employment of foreign guest workers, aggressive stance towards their integrated neighbours. A great friend of Israel and the Far East base of Mossad, the Israeli intelligence service, Singapore is an important link in the global system of currency trading, an integral part of the New World Order, a supporter of the US and Australia. Singapore is better than Israel: it did not expel its native Malays, did not conquer the Peninsula, did not launch aggressive wars. It could be a free and peaceful city-state, but the dynamics of partition made it a potential source of trouble. By taking a leaf from Israel's book, Singapore declared its 'right' to wage war on Malaysia if the country hikes the price of the water it sells to the island.

Singapore poisons the minds of the Malaysian Chinese and encourages their immigration to the island. It is a very unnecessary thing, for the Malaysian Chinese community is well integrated in their country.
In Penang, there is a Chinese Prime Minister, and, despite affirmative action, the Chinese retain commanding heights in the economy. What is worse, Singapore politicians try to influence decision-making of in the People's Republic, the economic giant with little political will of its own. It is proof that the evils caused by choosing the partition model do not stop at partition but have lasting, damaging effect on the world.

How the Malaysians did it

The ruling block of moderate nationalist Malays and its Chinese and Indian counterparts have managed the country since the 1960s, and Dr M, actually a medical doctor by profession, has served as the Prime Minister for over twenty years. Next year he will retire at the ripe age of 78. He came to power as a young radical and Malay nationalist, expressing the natives' disappointment over the too-slow progress in levelling economic misbalance between the communities. His victory scared the immigrant communities and made them more amenable to Malay demands. But Dr M carried out reforms gradually and gently. Under his rule, Malaysia became a prosperous industrial nation, a leader in computers as well as in traditional pursuits. Even more important, it is a rather happy land of contented people.

Malaysia rejected the Western idea of nation-state, as it accepted the many-coloured mosaic of its communities. They are not three, but rather thirty-three. The Chinese form many communities of various languages, cultures and religions. There are Cantonese, Swatow, Hakka, Hokkien, as distinct as Sicilians and Swedes. Indians are equally
diverse: Muslim and Hindu, Punjabis, Tamils, Bengalis. The native Malays also form various tribes and ethnic units. The oldest inhabitants of the Peninsula, the orang asli or `original men', Negroid tribes akin to Australian aborigines and Indian Dravidic people, still roam the jungles. Europeans and their descendents (of mostly mixed marriages) live in Malacca, Penang and Kuala Lumpur.

Malaysia rejected the idea of the `melting pot' as well. Communities are not asked to integrate and assimilate; they are encouraged to keep their identity and may attend schools in their native tongues while keeping the same curriculum. They do not fall for the trap of multiculturalism, either. The uncomfortable part of multiculturalism as preached by New York is the removal of the backbone of the nation:
the rejection of the original religion and culture of the majority. As I watched CNN on pre-Christmas days, I noticed their fear of actually referring to the Christian holiday without balancing it by an example of Hanukkah or Kwanza. Not so in Malaysia: there is a state religion and a state language, and tolerance of minorities.

Most importantly, Malaysia rejected the faith of Neo-Liberalism.
Together with Castro and the Pope, Dr M is an outspoken critic of the Chicago School. He does not want to sell assets to the highest bidder, nor thereby to impoverish people and create a new class of super-rich.
Food and housing are inexpensive and often subsidised. Dr M is not a socialist. He prefers a strong middle class, but he was taught enough Mencius (Mengzi), the Second Sage of Confucianism, to know of the obligation of rulers to provide for the common people.

The Neo-Liberalists tried to devour Malaysia. The Scourge of Nations, the Imperial Wizard [See Heather Cottin, `George Soros, Imperial Wizard', CovertAction Quarterly, No 74, Fall 2002.] George Soros, a mysterious man with unlimited resources and strong ties to the Israeli intelligence service Mossad, who broke the Bank of England, ruined Taiwan, South Korea and Thailand, attacked Malaysia, too. His financial offensive wiped out ten years of Malaysian development and ten years of 20 million men's labour: a cool $30 billion of damage.
The country would have been devastated but for Dr M, who slammed currency controls into place.

After the Soros plague, Malaysia asked for help from the IMF and the World Bank, and was told that aid is conditional upon acceptance of IMF rules, including lifting of currency controls. Ostensibly, that was the purpose of Soros's raid: to break the country, to send it running to the IMF and to turn it into a vassal of the New World Order. All nations that accepted IMF rules were ruined: from Argentina to Bulgaria, from South Africa to Russia.

Eduardo Galeano, the noted Uruguayan writer, in a recent interview,
said: "Argentina did everything it was ordered to do by the International Monetary Fund and it's destroyed. The lesson is not to buy into IMF discourse, which leads not only to the extermination of national economies, but to horrific consequences that are not only economic. A discourse that not only translates into mass impoverishment and an offensive concentration of wealth, but into slaps in the face, the daily insults that are the ostentation of the power of the few, in the face of the helplessness of the many. It discredits democracy. Nowadays, it is identified with corruption, inefficiency, injustice, which is the worst thing that could happen to democracy. Another tremendous injury is the great damage that the culture of solidarity has suffered all these years. Right now the predominant culture is that of "every man for himself," and if you fall, you're screwed.

The new name for the financial dictatorship is the "international community" ; anything that you do to defend the little that remains of your sovereignty is "an attack against the international community", rather than an act of legitimate defence against the usury practiced by the banking system that rules the world, in which the more you pay, the more you owe. That is why in a country like Argentina everything has been dismantled: the economy, the state, the collective identity of a people who no longer know who they are, from where they came or where they are going.."

The stubborn old man, Dr M refused to accept the IMF diktat, and Malaysia retained its prosperous independence. It did not go under as Russia and Argentina, because its ruler was a determined man who deeply felt his solidarity with his people. But it was not an easy
feat: Dr M had to fight a to-the-last- man-standing battle with his Deputy Prime Minister, Anwar Ibrahim, the IMF supporter in Kuala Lumpur. Anwar Ibrahim used the Soros-inflicted depression and stirred unrest. A weaker man, a Gorbachev, would have collapsed and vacated his seat, plunging the country into chaos. Dr M is made of sterner
stuff: he deftly dealt with the Neo-Liberal by using some old and not-too-liberal laws against homosexuality. That was a correct if difficult decision: In similar vein, the Americans had sent Al Capone to jail on a trumped-up charge of small tax evasion, as they could not make other charges stick. An IMF supporter is no better than a gangster.

However, for many Malaysian intellectuals this was a traumatic
experience: they would have preferred correct results to be obtained by correct means. "Dearie, don't we all! But we can't put 'IMF support' into the penal code", I said to them. "The ruler has a duty to his people to protect them from neo-liberal wolves, and this obligation precedes his personal ethics."

Soros retained a menacing presence in Malaysia. He paid for a Web magazine and repeatedly tried to buy a newspaper to brainwash Malaysians, as he does elsewhere, notably in Russia. In a Kuala Lumpur hotel, I met Malaysian fellow journalists who expectedly complained about another very non-Western Malaysian precept, that of government-controll ed media. This would have been an embarrassing moment for me if I had not heard this complaint twelve years ago, in the offices of Russian newspapers. The Russians had no Dr M of their own; they privatised their media. It was snatched up by a bunch of moguls and turned into subversion tools against Russia. Now, almost all Russian media belongs to a galore of Israeli citizens.

That is why I told my Malaysian colleagues: "Sorry, guys. If you had had it your way and made your newspapers and TV independent of government, you would have had a lot of fun for a whole week. One week later, your media would have been bought by George Soros, the man who preaches of the advantages of open society to oysters. As long as a wolf roams outside, a clever sheep sticks to its shepherd".

This week, Dr M had an unexpected reason for joy: a French court found Soros guilty of insider trading. Its small fine of $2 million means little for a man who makes $1 billion a day, but it is satisfying to see him branded a thief. I would not be amazed to learn that the terrible excesses of the Zionists in Palestine were arranged as a diversion of attention away from their Globalist brethren. While Zionists ruin a village, Soros and the IMF ruin a country.

Together with Castro, Dr M understood that the source of their power lies in the overvalued US dollar. Since 1972, the US freely issued green bucks no longer tied to gold. This financial swindle, the biggest in the history of mankind, brought enormous wealth to some people, and ruined a lot more. That is why Malaysia is the brain and the engine of an ambitious plan to create a stable currency, the golden Dinar. It is also called the 'Islamic Dinar', as Islamic Law forbids usury and interest, and the Dinar will bear zero interest. (A similar step was taken by Solon the Wise in Sixth Century BC Athens:
he cancelled debts, zeroed interest and made people free. A hundred years later, Athens ushered in its Golden Age.) This year, the Dinar will become the currency to settle deals between Malaysia and some Arab countries.

Currency trading, the pet tool of Soros, should be banned, thinks Dr
M: "The traders sell huge sums of currency they do not have to buyers who are members of the same circle. The buyers in turn sell this fictitious currency to others, force down the value and buy at the depressed prices. Short selling has been taken to the ultimate level.
The currency trading is many times bigger than total world trade."

The New World Order has in Dr M a most outspoken enemy. He views it as a continuation of old colonialism by new methods: "Free trade had always been the war cry of the Europeans. In the 19th century they used gunboats to open East Asia for trade. They went to war when they were not allowed to supply opium to China. Now, the gunboats have disappeared, but the pressures are no less effective. An occupation army cannot colonise more effectively than the economic arm-twisting used by the West. Now international institutions are used to open up the countries for 'free trade'. Once the countries are opened up, the big corporations and banks would move in, and the locals will be swallowed up."

Dr M has not mellowed with years. His thinking has become even more striking and extraordinary. While visiting Japan, he called upon the Japanese to reject the Western model as it is sure to ruin their
achievements: Japanese system worked very well for the Japanese. It made Japan the second most powerful economy in the world. It may not be the Western way, but it can't be all wrong if it can achieve so much.

In Dr M's view, Japan should return to strong government involvement in economy, and take up its leading role in Asia, for "East Asia and the world need Japan, its dynamism and its single-minded dedication".
For Dr M, as for many important politicians in Asia, WWII was not a war between ultimate good and ultimate evil. "The success of the Japanese army in the early days of the war finally broke the spell cast by the Europeans. East Asians learned that their European overlords could be defeated." Similar sentiments are voiced in Iran and in Arab countries, where anti-British resentment brought nationalist leaders to seek help of the Axis Powers.

Malaysia is an 'alternative' country where many Western ideas were found wanting and were rejected. We are used to frequent changes of prime ministers and presidents and see it as a success of democracy.
But Dr M, this benevolent king-philosopher in Plato's mould, disagrees. It takes many years for policies to produce fruits, he says. First year in power, the ruler learns to be addressed and to address others properly. Next year, he forms his opinions. Then he makes decisions, and only in a few years can we judge his decisions properly. He succeeded because he had enough time, he says.

This idea is unusual for us, but as the matter of fact, three of the most charismatic and extraordinary statesmen of our days, Dr M, Dr Fidel Castro and the Pope, persist in power for tens of years with great success. Commercial companies, nowadays as powerful as any state, also do not change their helmsmen without urgent need.

Surely, if a statesman like Dr M were to lead Japan, (or China, or Russia, or, indeed, the EU) the world would be different. Many things have changed since WWII, and Europeans, together with ordinary Americans, are now experiencing the brunt of the same policies Asia suffered in its colonial past. 'The Open Society' has become the tool for robbery brought home, as the New World Order is the colonisation of Europeans and Americans by their new financial elite.

Dr M is a strict opponent of the American War on Terror. For him, "terrorism never dies until the causes for terrorism are eliminated".
He speaks against the impending Anglo-American aggression in Iraq, he refuses to accept the rant of 'Islamic terror'. Dr M supports the much-suffering people of Palestine without the caveats usually produced by his meek-hearted colleagues in Europe. His voice is heard, for Malaysia has not surrendered its discourse to its enemies.

Malaysia reminded me of Cuba, the Island of Freedom in the Caribbean Sea. It is also an alternative society where highly educated men map a different future for mankind, for "today's world is in shambles. The abuses of the free trade system, the unlimited greed of speculators, have resulted in the world losing its way", in the words of Dr M.
Similar ideas are expressed in Castro's speeches. The two politicians met a few times and expressed mutual admiration, despite their huge ideological differences: Castro the Communist and Dr M the Nationalist. In Cuba and in Malaysia, one can read a newspaper or watch TV without nausea. These two small countries have much for us to learn from.


Israel Shamir is a critically acclaimed and respected Russian Israeli Writer and Journalist. He wrote for Haaretz, BBC, Pravda and translated Agnon, Joyce and Homer into Russian. He lives in Jaffa and has become a leading champion of the 'One Man, One Vote, One State' solution in all of Palestine/Israel. His writings are mostly in English but you can also read some of his articles translated into Arabic, French, Hungarian, Italian, Norwegian, Polish, Turkish, Russian and Spanish.

Hidup Pak Lah!!

It'll be very funny if we can hear anyone chanting that phrase at this moment in time, eh? Don't be misled. The title was just to catch your attention. No one (in a good state of mind) would actually utter that phrase.

I was already rusty to start with, but after almost a year since my last posting, the rustiness of my writing should really be forgiven.

Too many things have happened since my last posting. I'm walking again (from the knee reconstuction surgery that I had last year) and I've moved back to Miri since December 2007 to join Shell (and no, Shell people too pay RM2.70/liter of petrol...we don't pay any less).

But I guess, most happenings have taken place after the last General Election which mandated Pak Lah (who from here on will be referred to as Bodohwi) as the most unpopular Prime Minister in the Malaysian history. He should be happy. For someone who has done nothing good for the country, he'll be in the history book...like I said, as the most unpopular Prime Minister Malaysia ever had.

It's like seeing domino pieces timbering down, he keeps making bad decisions after another. First, he never admitted to the real reason why BN lost it's two-third majority i.e. people have no confidence in his leadership. Instead, he argues that the opposition has gotten stronger. Please...life is a balance. One can't be stronger without the other being weaker. If you had watched the interview he did with Bernama TV, you'll understand what I mean.

Then came the announcement of his new cabinet. EVERYONE (well, more like the general public who thought that Bodohwi had learned his lesson from the election outcome) expected a new, fresh, and "clean" cabinet. Again, instead, came Muhammad Muhammad Taib as one of the cabinet members. We don't need to go through the whole list to of cabinet members to believe that this cabinet proposed by Bodohwi is corrupted when Muhammad Taib's name is on the list. Bodohwi made him the Rural and Regional Development minister. Poor rural people. This guy would have forgotten what it's like to live in rural areas...he has mansions and other real estate properties in Australia and New Zealand for goodness sake! Don't get me started on that!

The list goes on for Bodohwi...but nothing compared to the decision he made on the 4th (or 3rd..I try not to remember) of June to jack up the retail price of petrol and diesel by no less than 40%. Some people literally fell off their chairs! Although most people started racing to the petrol station to fill up their tanks before the new petrol price took effect mid-nite on the day of the announcement. While some opportunists raced to increase prices of goods.

I will try to find time to discuss the oil price increase and its impact to our lives as Malaysians...the poor and the middle-class (the rich guys won't be affected too much), in my next postings...hopefully within this year!

In the meantime, I'll try to add some links to good readings. In case there's no new posting to my blog, at least you'd still get to read something new from the links provided.

Happy reading!