From October 19 to 23, 2010, social democratic political parties, pre-parties, scholars and activists in Asia gathered in Jakarta, Indonesia to discuss on “Growth, Social Balance and Sustainability: Perspectives for Social Democratic Economic Policies in Asia.”

One of the most interesting topics is the relationship between social democratic parties and the business community. It is easy to notice from the discussions, that social democratic parties in Asia are uneasy when talking about how should they ‘work together’ with the business community. Although history shows that social democracy is never an “anti-business” ideology, debates subsequently occurred on what kind of relationship they should create with the business, along with the main priority to put the interests of workers and the three social democratic principles; freedom, justice and solidarity.

Nevertheless, it is certain that at the heart of social democracy remains dialogue and participation. Therefore, contrary to the economic practices of the (neo)liberals, the economy is too important to be left only at the hands of a closed group of people dubbed as ‘the technocrats’. Economic and business policies should be designed, discussed, decided and subsequently implemented with the participation of all stakeholders: the government, the employers, the workers, and the community.

Based on freedom, justice and solidarity, social democracy aims at “living together” as a community, a nation, a region, and citizens of the world.  Thus, “living together” must be an end to be put above all means, including the market system. The market system is a genius to allocate resources efficiently, but it doesn’t work for justice and equality. Hence, the market is a good servant, but a bad master.

Because we live together, then partnership becomes important. We learned from the “German experience”, which they have created an association of social democratic business managers, social-democratic parties/groups could create a space where their “traditional” constituents can meet, discuss and subsequently find common ground with other groups of the society such as the business community.

The common ground would be fundamental to put forward common agenda between the social democratic parties and the business. The “Swedish experience” has shown that social democratic policies and the welfare state system were first implemented as a result of common interests and common agenda from both the workers and the employers. They wanted a system that makes Sweden work for all and indeed it has lasted for a century.

Photo above: the author (left) with Steven Sim, Executive Secretary of SocDem Asia

The key focus of the conference will be discussing economic growth from the perspective of social democracy and how social democrats in Asia can offer a viable economic model as we anticipate the failure of the neoliberal model practiced by regimes across the region. The stereotypical perception is that social democratic parties cannot deal with the economy and only are only focused on social justice.

One of the objectives of the conference, therefore will be to position profit-oriented business activities within the framework of social and economic justice. And this is important not least because of the onslaught of economic liberalization in emerging economies where not only workers are faced with mighty corporations given a free reign by governments but national businesses, especially SMEs, risk being forced to go out of business by major multinational corporations.

Social democrats believed that only via a balance between economic growth social justice and environmental sustainability can we guarantee development based on prosperity for all. Therefore, the social democracy gives priority to the supremacy of a democratic and just society over the market.

Among the speakers and organizations represented in the Conference are:

- H.E Fadel Muhammad, Indonesia Minister of Fisheries and Maritime Affairs,

- Budiman Sudjatmiko, formerly an activist who was arrested during the New Order regime and now an MP from the Partai Demokratik Indonesia-Perjuangan (PDI-P)

- Erwin Schweisshelm Resident Director of FES Indonesia

- Jens Orback, former Swedish Minister of Democracy, Metropolitan Affairs, Integration and Gender Equality and presently the Secretary General of OPIC,

- Liew Chin Tong, a Member of Parliament from the Democratic Action Party (DAP) Malaysia

- Ronald Llamas, advisor to President Benigno Aquino III and president of the Akbayan Citizens’ Action Party Philippines

- Ms Bolormaa Nordov former Minister of Education, Culture and Science of Mongolia

- Munawar Liza Zain Majyor of Sabang City, Acheh

- Martin Manurung, Executive Director of IWD

- Steven Sim, Executive Secretary of NSDA

and representatives from Cambodia, Germany, India, Indonesia, Korea, Malaysia, Nepal, Philippines and Sweden.

The Conference is held at the Gran Melia Hotel at the heart of Jakarta’s business and administrative district. The official title of the Conference is “Growth Social Balance and Sustainability: Perspective for Social Democratic Economic Policies in Asia”.

In the aftermath of the recent global economic depression, the core principles of social democracy have come to the fore of the global socio-political and economic discourse and political practice. This highlights the direct relevance of social democracy to global and South Asian reality. The effects of the global economic slow-down do certainly not spare South Asia.  Nations of this region seeking solutions – in some way or the other – are having social democratic principles in their minds.

It is besides this background of reality that the organizers consider it is timely and necessary to subject to debate and discussion the emerging situation with specific reference to the region’s endemic problem of poverty and distributive justice. The conference primarily seeks to interact with local knowledge on the subject and understand the South Asian economic and social challenges in order to generate regional understanding and cooperation.

The Network will be organizing its 3rd Regional Conference in Jakarta, Indonesia from the 19-22 October, 2010. The Conference this time is entitled, “Growth, Social Balance and Sustainability: Perspective for Social Democratic Economic Policies in Asia“.

Jakarta is expecting to host participants from all over Asia, including SEA countries, China, Japan, Korea, South Asia countries, Sweden and Australia. Conference brief will be uploaded to this website later.

The Conference is jointly organized with the Jakarta-based Institute of Welfare Democracy, Friedrich Ebert Stiftung (FES) and the Olof Pale International Centre.

Welcoming address by Chief Minister of Penang, Lim Guan Eng at International Integrity Conference 2010 in Eastin Hotel, Penang, Malaysia on Saturday, 7^th August 2010:

Good governance has been described as how public institutions conduct public affairs and manage public resources in order to guarantee the realization of human rights. Without good governance, we can forget about realizing our goal of transforming Penang into an international city that is a location of choice for investors, a destination of choice for tourists and a habitat of choice for those who desire sustainable living.

Good governance requires several core ingredients: the rule of law, strengthening of public sector management, transparency and accountability, and appropriate strategies to combat corruption.

The United Nations Economic and Social Commission in Asia Pacific states that good governance has 8 major characteristics. It is participatory consensus oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive and follows the rule of law. It assures that corruption is minimized, the views of minorities are taken into account and that the voices of the most vulnerable in society are heard in decision-making. It is also responsive to the present and future needs of society.

Let me go through some of the characteristics of good governance:-

a) Participation

Participation needs to be informed and organized. This means freedom of association and expression on the one hand and an organized civil society on the other hand.

b) Rule of law

Good governance requires fair legal frameworks that are enforced impartially. It also requires full protection of human rights, particularly those of minorities. Impartial enforcement of laws requires an independent judiciary and an impartial and incorruptible police force.

c) Transparency

Transparency means that decisions taken and their enforcement are done in a manner that follows rules and regulations. It also means that information is freely available and directly accessible to those who will be affected by such decisions and their enforcement. It also means that enough information is provided and that it is provided in easily understandable forms and media.

d) Responsiveness

Good governance requires that institutions and processes try to serve all stakeholders within a reasonable timeframe.

e) Consensus oriented

Good governance requires mediation of the different interests in society to reach a broad consensus in society on what is in the best interest of the whole community and how this can be achieved.

f) Equity and inclusiveness

A society’s well being depends on ensuring that all its members feel that they have a stake in it and do not feel excluded from the mainstream of society.

g) Effectiveness and efficiency

Effectiveness means that processes and institutions produce results that meet the needs of society while making the best use of resources at their disposal. Efficiency covers the sustainable use of natural resources and the protection of the environment.

h) Accountability

Accountability to those who will be affected by its decisions or actions. Accountability cannot be enforced without transparency and the rule of law.

To conform with this concept of good governance, there is no need to reinvent the wheel. But we must possess the political will.

The Penang state government has introduced CAT governance based on competency, accountability and transparency or amar maaruf nahi mungkar. As a CAT government, we adopt the principle that it does not matter whether a cat is black or white as long as it catches mice.

By adopting a system of open tender, relentlessly battling corrupt practices and promoting integrity Penang managed to turn a projected budget deficit of RM 35 million in 2008 to a record surplus of RM 88 million. This was repeated in 2009 with a surplus of RM77 million against a projected deficit of RM 40 million. These surpluses allowed us to pay an anti-corruption dividend of cash payouts to senior citizens annually and funeral expenses which were not available previously.

Penangs achievements were praised by Transparency International, the first time for any government in Malaysia. I strongly believed that governance is a set of political goods that leaders and the government needs to deliver to the people that can bring about happiness and prosperity.

There must be popular support which can only be attained by convincing the public of the benefits of good governance. Good governance may be attained through the establishment of a civilization whose point of support is truth,piety in God and which considers life as mutual assistance, not direct confrontation.

As I said there is no need to reinvent the wheel – what we need is political will. The public can only be convinced that the government means business when there is leadership by example with strong and effective leadership centered on integrity and prudent spending.

A paragon of leadership by example and good governance is undeniably the Caliph Umar bin Abdul Aziz. He had introduced a number of reforms; administrative, fiscal and educational. So inspiring was his honesty and integrity and so far-reaching his reforms during his short two years reign that they resonate down the centuries with few parallels in the history of mankind.

Imagine how honest the person, until he turn off the light of a lamp if he was conducting private matters. We can not be wrong if we follow his legacy in promoting good governance in our administration.

Most profound was Umar Abdul Aziz’s advice to his subordinates on why he refused to approve money spent on building walls of bricks because it is a waste. Instead he said they should be building walls of justice where no opposing force can break.

For this reason, I differ strongly with the comment by MCA President Dr Chua Soi Lek portraying Muslim countries negatively as non-progressive, corrupt, poor and backward. Dr Chua should educate himself in history that the civilization of Islam was filled not just with global empires but also with glory in art, learning, introducing numbers, algebra and astronomy.

Muslim countries are suffering from the same problems suffered by India and China previously. Only when India and China were free, independent and not dominated by imperialistic powers, were they able to realize their potential and take their place in the world stage as an economic power.

I believe that Muslim nations can also recapture their past glories were they allowed to be similarly unshackled like China and India. And if there is good governance just as Islam was a center of learning, justice and excellence under the rule of Umar Abdul Aziz. The choice is whether we follow the Umar Abdul Aziz’s governing model of integrity and good governance or the alternative model of corruption and dictatorship.

As there are many prominent speakers more well-versed on this topic, we should not delay any longer the sharing of their point of views as well as experiences towards promoting good governance.

Conference Programme

Conference Summary by Norbert von Hofmann

Conference Paper: Public Transportation – The Way to Go by Lim Mah Hui

Conference Paper: Social Protection by Maris dela Cruz

Venue: Parkroyal, Penang, Malaysia

Draft Program

The conference continues the process of strengthening political groups in the region committed to the basic values of social democracy that started with the first meeting of the network in Manila in May 2009. At the conference, an exchange and  identification of  local governance practices that both shape the approach to participatory politics and the delivery of services and public goods will describe the sessions.  Sharing on how these local governance practices  contribute to the building of progressive political parties along social-democratic lines will also be facilitated.