Mahathir tells the West to leave Asia alone
Mahathir tells the West to leave Asia alone
KUALA LUMPUR (AFP): Malaysian Prime Minister Mahathir Mohamad
has told the west to let Asia resolve its own economic problems,
warning in his new book that any economic deterioration might
spark unrest.
In his book A New Deal for Asia launched here on Monday,
Mahathir said it was the western countries, in particularly the
United States, and not Japan, who have real leverage to overcome
East Asia's economic malaise.
"If the situation in East Asia should continue to deteriorate,
there is a very real danger of unrest, uprisings, the overthrow
of democratically elected governments and even small-scale
guerrilla wars," he warned.
Tensions among societies might see "urban guerrillas,
saboteurs and modern terrorists" flourish, he said.
"The recipe to avoid such a situation is not all that
complicated: allow us to revive our economies. Do not try to
undermine our efforts and do not sabotage us. Do not ruthlessly
devalue our currencies," he wrote.
The book is Mahathir's fourth after his highly controversial
The Malay Dilemma, The Challenge and The Way Forward.
The premier, who has ruled Malaysia for 18 years, stated that the
key player in the global economy was not Japan but western
countries, in particularly the United States.
"It is only the United States which has the combined
political, economic and military clout to bring about structural
changes in the present system of global finance and economic
transactions," he said.
The U.S. government could outlaw speculative currency trading
if they wished but this will never happen as there were "too many
vested interests that will fight to maintain the status quo," he
added.
In his book, Mahathir took a swipe at the International
Monetary Fund (IMF) which he described as "a doctor with only one
pill for every illness" and ruled by a "bunch of yuppies with no
sense of history of human responsibility."
"The IMF has been digging graves, both for itself and for the
countries where it has been most massively involved," he said.
The premier also defended drastic capital controls he imposed
in September last year, saying he decided to "take the bull by
the horns" after getting no response to his calls to regulate
currency speculators.
Following the curbs, capital flight was arrested, interest
rates fell and reserves rose, he added. Malaysia expects 1.0
percent economic growth this year after a 6.7 percent contraction
in 1998, its first in 13 years.
Mahathir, who has blamed rogue currency speculators for Asia's
economic woes, wrote at length on the need to force the traders
"out in the open."
"Ideally, currency trading which is purely for speculative
purposes should be completely banned," he said. "If this cannot
be achieved, such transactions must at least be heavily taxed and
regulated."
"It must be registered and licensed in the countries where
traders operate, and taxes must be paid to the countries whose
currencies are being used to generate profit.
"The amount that can be traded per day should be limited and
any currency should only be allowed to fluctuate within a certain
margin before trading is stopped."
The Malaysian leader pleaded for a concerted and determined
effort to build a "single global commonwealth of common wealth
and co-prosperity."
"As we approach the third millennium, many people again see
the coming of apocalypse," he said. "We must now focus not only
on the end but rather on forging a new beginning."
Some 10,000 copies of the 155-page book, which focuses on
rebuilding Asia after the economic turmoil, are being sold here
at 25 ringgit (US$6.6) in softcover edition.
Officials said another 18,000 copies of the Japanese edition
would be launched in Tokyo next week, to coincide with Mahathir's
one-week visit to Japan.