Tuesday, May 29, 2012

Why Change the World?


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"In the end, the primary source of this deep anthropological crisis is the thinking that human beings, at their very core, are disconnected from amongst themselves and the rest of its reality."

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Purpose

Don Quixote. Pablo Picasso. 1955

Since humanity appeared in the face of the earth, the earth underwent a massive transformation like any other that happened to it for over four billion years. Humanity’s curiosity transformed rocks to highways, wood to intricate sculptures, minerals to trains, ships, computers and power grids. The emergent order originally imposed by billions of years of natural selection has been replaced by an artificial, intelligent order imposed by the human mind.

A human being’s instinct is to know, to test, to explore. Whether exploring the seas and under it, or staring at the skies and beyond it into space, or traveling deep into tropical forests in order to retrieve an herb (which chemical components one can later discover by observing its cells in a microscope), or detailing the anatomical features of our bodies, or testing the limits of artistic expressions – humanity’s impulse is always to increase its understanding and discover the profundity of the universe, the human psyche, and the subconscious.

For this purpose, we develop tools to one, increase our time spent learning and exploring by efficiently producing what we need for convenient survival (e.g. food, shelter, and leisure); and two, increase our capacity to learn by developing instrumentation and computational tools to aid our process of learning (e.g. microscope, personal computers, the paintbrush). Even as we are connected to the universe, we inevitably transform it in our search for meaning and knowledge. Whether our actuations destroy or preserve the earth, for instance, is subordinated to our unquenchable thirst for understanding and its prerequisite – convenient and harmonious survival. We developed genetic engineering to mass manufacture food; upon learning that it may have adverse effects on health, we also further developed past knowledge on organic agriculture to produce healthy food. We developed hydrocarbons that fuel our four-stroke engines; we also developed ecological restoration techniques to mitigate effects of global warming.

Tuesday, May 15, 2012

Why Higher Wages Make Economic Sense


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Last May 1, the usual arguments of the business sector were unleashed with its central theme: No, business cannot afford wage hike. Beset with high cost and poor business climate, business simply cannot survive added cost of labor. How do we attract investments if we increase wages? Look at China and Vietnam. Didn’t they have a cheap labor policy? Aren’t they getting much more investments than us due to lower minimum wages?

As if the anti-wage-hike position isn’t entrenched enough, an army of economists follows with a recital of the dogma of “labor flexibility”. They say, wage level should be equal to the so-called “marginal productivity of labor” – which is economese for whatever the employer wants to pay them. Labor is supposedly not exempt from the law of supply and demand. Raising minimum wage will only increase unemployment, as it supposedly disallows all voluntary labor wage contracts that pay below the minimum wage. It will also introduce inefficiency in the labor markets, now faced with a "deadweight loss" due to the intervention of the government who will always fail to set prices right.

But why, if they are right, aren’t we attracting investments still? What explains Philippine firms’ low level of competitiveness? Why does unemployment remain high? The response has always been, never mind the workers, that it is not enough. Lower wages a bit more, then we’ll get the investments that would have gone to China. Lax regulations a bit more, and we’ll have more productive factories and viable businesses. Dismantle a little bit more unions, and businesses will be more efficient and will eventually increase their wages in the long-run.

This essay says enough.  It is high time that the government replace the failed “cheap labor policy” with a policy that increases wage income. In a time when self-rated poverty is worsening, prices of petroleum products remain high if not rising, and wages are not enough to even sustain a decent life for a family of five, no other proposal would be more just and fair than a proposal that increases the share labor gets from the economic pie.

The roadmap towards prosperity through increasing labor income is simple: Increasing wages will induce demand and increase labor productivity. Ensuring that workers are paid well, free to spend on non-basic commodities, and save for their future will facilitate the creation of a strong domestic market and large savings base which domestic banks can capitalize. Higher wages will increase capital-intensiveness of firms, increasing their productivity in the process. Rising corporate income will mean larger revenues for the government, which will pummel it back as welfare and unemployment support.

Let us elaborate.

Sunday, May 6, 2012

Transforming the 'Southeast Asian Sea' into a 'Shared Regional Area of Essential Commons' by Rasti Delizo


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Hence, the Southeast Asian Sea’s strategic mineral and aquatic resources cannot be claimed by just a few and in the name of ancient empires that have long ago disappeared into the library of world history.  In the context of today’s global environmental realities, the Southeast Asian Sea must by now be claimed by the many and in the name of a 21st Century world order shared by all of humankind. - Rasti Delizo




TRANSFORMING THE ‘SOUTHEAST ASIAN SEA’ INTO A 
‘SHARED REGIONAL AREA OF ESSENTIAL COMMONS’

RASTI DELIZO*
12 April 2012

The regionally contentious body of water predominantly known throughout Asia as the South China Sea can yet be transformed into a more mutually beneficial regional asset.  Geographically located in Southeastern Asia, this vastly huge oceanic area is a historically recognized maritime route which expediently acts as a gateway between the Indian Ocean and the Pacific Ocean.  Many governments currently acknowledge its vital importance due to a vast abundance of natural undersea resources with potential wells of alternative energy supplies.  And for obvious strategic reasons, this prime bio-diversity spot has long become a regional magnet of attraction to various littoral states and major powers surrounding the area.

As such, China, Taiwan and four ASEAN (Association of Southeast Asian Nations) member-countries are now contesting certain sections of the South China Sea for these same reasons. These territorial claims have characteristically alerted other powerful states and multilateral organizations to the pending disputes as they certainly have the potential to spark off a future military conflict.  Since such a war could further conflagrate the entire Asia-Pacific region and inevitably become a dangerous global threat, this overarching regional issue continues to remain a top priority question begging for an immediate solution.