Mahathir wants tax on rich states to replace foreign aid
Mahathir wants tax on rich states to replace foreign aid
By Endy M. Bayuni
BOAO, Hainan, China (JP): Malaysian Prime Minister Mahathir
Mohamad, continuing his anti-globalization rhetoric, broached his
most bold proposal to date on Tuesday, with a call for the
imposition of a tax on rich countries to replace foreign aid or
foreign loans to poor countries.
"Foreign aid has failed. So have foreign loans," Mahathir said
in a keynote address at the inauguration of the Boao Forum for
Asia at a beach resort here overlooking the South China Sea.
He said that, while Malaysia, China, Japan and Korea have
managed to reduce or eliminate absolute poverty, many countries
in the world have become even more impoverished.
He proposed that assistance be given to these countries to
help build essential economic infrastructure, with the money
coming from his proposed tax scheme on rich countries.
"Only an international infrastructure development program,
funded through an international tax and confining itself to
building necessary infrastructures, can overcome the poverty of
these nations and the poverty of their people," he said.
Mahathir proposed the establishment of a new agency under the
auspices of the United Nations to collect and administer the tax
and the projects. An agency that is elected democratically. "No
one country should dominate," he said.
He said that this would be a win-win affair, with the rich
countries getting back a good portion of the money through the
sale and execution of some of the infrastructure projects. "When
the poor countries become richer, they will provide excellent
markets for the goods and services of the rich."
A long-time Indonesian diplomat said Mahathir's proposal for
an infrastructure tax is reminiscent of the concept broached by
the Willy Brandt commission in the 1970s, which launched the
North-South dialog. The idea never got off the ground for lack of
support from the wealthy North.
The Malaysian premier turned to the new forum, which has been
endorsed by delegates from 26 countries, to help develop and
promote his latest ideas.
Later at a media conference, Mahathir acknowledged that his
anti-globalization rhetoric had earned him a notorious reputation
among some countries in the world, but this would in no way deter
him from speaking out.
"Eventually, good ideas will be accepted, even by people who
are not fond of me or Malaysia," he said.
In his speech, Mahathir predicted that Japan would not reject
his idea, noting that Japan had always been more generous than
all other rich countries.
"We should at least agree to discuss this world infrastructure
tax. One day, together we must push for its adoption by the
world, by the UN," he said.
"The world has never been as rich as it is today. It is
immoral that in a world so rich there should be people and
countries so distressingly poor," he added.
Mahathir singled out international media and non-governmental
organizations for meddling in the affairs of independent states
on the pretext of concerns over human rights, democracy and bad
governance.
"Actually, today the independence of nations is a mockery.
Weak nations cannot expect to manage their own affairs freely.
They must submit to international scrutiny and even to
international management. At that stage, there is no longer any
independence," he said.