Here’s a video of George Soros, the billionare speculator, reflecting on the current economic turmoil. This is an interesting interview because he hints on a new economic paradigm, where regulation will once again be embraced. In this video as well, Soros expresses his distress on the method of the bailout and the failure of the government’s action. Soros concluded the talk by reflecting his socio-economic ideologies

I wonder, how long will this “new” paradigm last until we return to the 20th century ideology of the invisible hand that the world highly praised?

Link:

http://www.pbs.org/moyers/journal/10102008/watch.html

b dj.

The US financial market had hit rock bottom. The current turmoil has not only been at an unprecedented level in Wall Street history, but the complexity of its impact is unknown. Consequently, the financial meltdown raises concerns over how financial markets are structured. But to me, there is an even bigger issue that requires an immediate attention. For years, the ideology of laissez faire, where market clearing occurs without interventions, has been the motivation in US capitalist society. Such paradigm has reduced the role of government in regulating and provisioning esoteric activities in the financial market. If we can learn something from this experience, I hope that lesson is to realize the need to implement better and effective regulations.

Since, much ink has been spilled in the past months about the current economic meltdown, I intend to share some facts that I find rather shocking.

It is surprising that all you need is a small trigger to upset the whole financial system. The crisis began with Sub-prime related mortgages that defaulted last year. These Sub-prime mortgages are packaged into a group of securities and it only accounts about 30% out of the whole package.

The financial breakdown is certainly a structural problem. The breakdown is linked with the failure to regulate the largest and the most complex institutions that are, at the same time, the primary traders of derivatives.

Last year, when the Sub-prime mortgage fired, the media and investors immediately pointed their fingers directly towards rating agencies, such as Moody’s and Fitch Ratings, among the few, who failed to spot loopholes of these financial products. We began to question the models used by these agencies when rating such products. They paid the price, consequently. Their stock value fell tremendously and jobs were lost. The worst damage of course, is the tainted reputation of their business model. One interesting fact is that ratings agencies assess credit risk. They, however, do not put into consideration the liquidity risk that may be caused when financial products fail (in large sums), which may result in a deadlock between buyers and sellers’ confidence to transact openly in the market. This, perhaps, can be the missing variable that could be added in to their model.

After reading some policy recommendations published by the European Parliament on Economic and Monetary Affairs (Kern Alexander, John Eatwell), it became clear on how such a crisis could cause such a devastating shock globally. Mr. Alexander and Lord Eatwell theorized the danger of homogeneity. We know that information is asymmetric. Such imbalance is the primary reason why some reaps more economic gain than others. However, in banking, not all information is asymmetric; large chunks of their information that are used for developing their models are equally shared. Banks all have access information on available liquidity. They use also the same historical data and utilize the same conventional models. Now, during economic booms, such information will work on everyone’s favor, but observe what happens when the market is illiquid or lacking in money stock? Banks and other financial institutions will behave homogenously, that is abruptly selling securities in the market that may lead to a massive unwillingness to lend money on the inter-bank overnight market, especially at a panic financial moments. When there is a panic, everyone follows. A healthy liquid market is when there exists differing business interest where there is a buyer in one end and a seller on the other. Hence, activities in the financial market must be heterogeneous.

The current financial crisis, which has been dubbed frequently as the worst financial crisis after the Great Depression of the 1930s, will scrutinize components of the Basel II agreements. The Basel II consists of 3 pillars, which discussed holding adequate capital guarantee in case there is an adverse financial shock; the second is more banking transparency; and thirdly, a better supervision. These all look like a promising start, except for the consequences of transparency. I don’t deny the importance of lucid information by disclosing how banks manage their daily risk; the problem is how rating agencies would react to such available information. Disclosing banking models allow rating agencies to adjust their ratings in order to satisfy the conventional structure that could already be in danger in the first place.

Aside from the policy changes stated above, there are some recommendations that seriously need to be implemented. One choice that many of the European economists have put forth is the contra-cyclical provision for bank’s reserve requirements. Banks should hold required to hold greater reserve requirement during booming periods and less during illiquid market. Doing so would enable banks to have enough resources to protect themselves when money is most needed; it’s sort of like keeping money in a lock box.

The other alternative is to have a contingency plan, accompanied with a stress test that detects market liquidity. Such a test is already an existence in many parts of the world, but a consistent testing of bank’s stress level in acquiring inter-bank funds can be helpful in anticipating future shocks.

Financial meltdowns are not an alien phenomenon. The US has had a few of such event in their past. You don’t need a complex financial market for a destruction of such magnitude to occur, a simple banking stage where banks are simply intermediaries can already have such a consequence. Citizens need to understand that, yes, regulation is a key component, but they too need to realize that regulation cannot oscillate. The US is obsessed with getting governments off their backs. I think what people should start believing is, getting governments on the right side of your back.

b dj.

Inequality has been a topic of interest for many social scientists. It is generally meant to cover the realms of income distribution, wealth, and other socio-economic opportunities. Today, the scope has broadened to many unexplored areas: health.

As I read a piece from the Harvard Magazine, titled “Unequal America,” I was astonished by how the perpetual growth in inequality can have significant effects on both the psychology and the health of the people. As an economists, this is a reminder that when we analyze factors of inequality, it is rather shallow to be adamant to stick to our conventional indicators (employment, wages, etc.); as much as they are relevant, unquantifiable factors must also be considered into our academic analysis.

America is trapped. In the early twentieth century, the top 1% of Americans earned 18% of total national income. In 1928, this figure rose, with the top 1% of Americans earning close to 22% of total national income. The trend of inequality subsided and was again somehow leveled across the population in the 70’s. Now we are once again in the declining state, with inequality rising even higher. Out of all the developed countries (OECD members), the US scored poorly with a Gini coefficient of 0.45 today from 0.35 in 1965 (a measure of inequality ranging from 0 to 1, with 0 as full equality and 1 being completely unequal), in other words the US income gap is much closer to Iran, Argentina, and Mexico than it is to its counterparts. According to the US Census Bureau, 12.3% or 36 million of Americans lived below the poverty line. What seems to be the problem? And will this trend persist?

There are a few reasons why the problems of unequal distribution of income and opportunity are endemic in our society and it is more than just economic and social per se, it lies fundamentally in its cultural, historical, and the political context of the country.

The first is culture. I shall categorize culture as the umbrella or the focal point in which all other social explanation are derived. The two major cultural characteristics that are dominant in the United States are the individual freedom and competition. These mentalities are already apparent even when one observes how children behave with one another as early as in primary school. And I would assume (from my own experience and observation) that this attitude grows gradually as one aged. The nature of individual freedom and competition are traits that can be traced back from the periods of the founding fathers. The US constitution is filled with phrases of how freedom is innate and that “man” has a full right to reap the fruits of its labor.

With hard work, one can get you anywhere in life. In fact, it is this very mentality that defined the path to wealth and prosperity. In addition, many Americans believe that when one is destitute that is because you are lazy and cannot utilize the opportunity given to you. Thus, people become reluctant to redistribute their wealth. Individuals enjoy the fruits of their labor right do not see the failure of others as the responsibility of one’s own.

What people failed to acknowledge with this argument is that it is assumed the level of playing field is equal. We take granted factors that questioned race, class, and other highly debated issues of social safety nets. The poor are exposed to many hidden living costs. Even after having 2 to 3 jobs, the poor still cannot pay their health bills in full and sustain a timely rent payment (see Nickel and Dimed by Barbara Ehrenreich).

The second factor is consumerism; in which keeping up with the Joneses is important to uphold and is part of our social existence. The economist Lawrence Katz gave an interesting depiction, his analogy of an apartment building. He said, “over the past 25 years, the penthouse has gotten really, really nice. All sorts of new gadgets have been put in. The units just below the penthouse have also improved a lot. The units in the middle have stayed about the same. The basement apartment used to be OK, but now its gotten infested with cockroaches and its been flooding.” This is a nutshell description of class struggle under a capitalist society. Individuals are deprived because it is driven to catch up with others in order to be accepted in society.

The third point of interest is the American political structure. I’ve heard people say that politicians just really don’t give a darn about the wellbeing of the poor. I’ve also heard the contrary argument saying that poor people just fail to participate in the electoral processes; in other words the poor and the uneducated are not voting actively enough, which can then result in electing someone who is not representative of their interest. The problem here is none of the above; it is the setup of the current political system that is hindering the democratic processes. Politicians’ main job is to have a job and work towards getting reelected. And to get reelected, politicians need a substantial amount of funding that will most likely come from the middle and higher income bracket. It is not that politicians don’t want to listen to the demands of the poor; they just can’t afford losing out on donations.

Where do these complexities leave us? How is the rise of social inequality related to health? Social scientists have coined the term “relative deprivation” to illustrate the psychological damage that one had to endure when seeing other people having more than our own propensity to consume. Thus, the psychological challenges create higher stress level that may contribute to health problems such as depression, heart attack, and others. Relative deprivation can also encourage the usage of temporary stress reliever, such as cigarettes and alcohol. The use of these substances undoubtedly contributes to many incurable sicknesses. Obesity may also be included in the list. As the race to the bottom continue, more and more people would only afford cheaper quality food that is less nutritious for the body.

Disparity in the US is real. Especially with the current economic condition, inequality will continue to roam for quite some time. The factors mentioned above I believe are only a part of the general problem. There are other explanations that I must have failed to include.

Despite the social frustration, there is a sliver of hope. There are many ways to mitigate the issue. We can start by revisiting the current political structure of the US. Perhaps an electoral process that offers an equal playing field for all. More awareness and education can also help battle the conventional belief that economic prosperity should not just be an individual right, but can also be a collective effort.

I hope this can spark an interest in you. Feel free to drop your feedback.

b dj.

I found this list through Chris Blattman’s blog and after reading it to myself, I think this is the best advice I have ever read for aspiring graduate students. Sometimes you just don’t know what you are doing until it reaches the end. Keep hanging in there guys!

Click here. For link:

http://chrisblattman.blogspot.com/2007/12/how-to-get-phd-and-save-world.html

b dj.

The ‘Happiness’ chart from the World Value Surveys is finally here. I thought I should post this for you guys to see and decide for yourself whether there is such thing as a legit measurement to our happiness. More info can be found at www.worldvaluessurvey.org and for the database, you canvisit http://worlddatabaseofhappiness.eur.nl/

So, what do you think, is your level of happiness well represented?

b dj.

The internet is the 8th wonder of the world. Its product however, can be the leading cause of human degradation. I was never aware with how powerful social networking sites (Facebook, MySpace, Friendster, etc.) have on our lives, until I got sucked into. But with this phenomenon occurring in my life, I shall always proceed with great precaution.

Social networking sites are remarkably a genius invention. For once, people can self-promote themselves by confidently displaying their personal and unique characteristics. People can even go further than simply listing their likes and dislikes, these social networking sites facilitate people with the medium to showcase personal talents; whether that is art, pictures, and even music. There are of course, not to disregard, individuals who are self-aware of their physical beauty (this is indeed a form of self-selling) and are finding these social sites to be a comfortable niche.

I do realize that aside from having the privilege to express, these social sites are quite fun. Facebook has these little widgets and games that you and your friends can embark on. For example, I can be a vampire and bite my friend and suck all his blood to get points. Or you can also become a romantic and a caregiver to all your lady friends (say I sent my girlfriend sun flowers for her birthday or a chocolate moose cake for our anniversary). Many have also claimed that one of the advantages of these sites is having the ability to “stay connected” with long time friends. There are just endless possibilities with what you can do with these sites.

But I wonder, with the booming trend of social networking sites, has it actually served us well? Has it boycott the means of direct human interaction and communication? And what is it that made us so hooked?

The creation of these social sites have made it easy for people to recreate their images. People no longer have prove what they claim to be, you can simply list all of the things that you ‘think’ you are. Socializing in the internet is different than when you speak to person directly, eye-to-eye. Socializing is harder in reality because you can detect who they really are. With Facebook, people know you by what you want others to believe; it is not the true image of yourself.

Humans are social beings. In a traditional, and I am inclined to say more ‘natural’ case, humans go out to meet people. There is that element of meeting others in persons, parties, social gatherings, you name it. However, now, social sites like Facebook are able to create social groups that exist only virtually. People become members and share interest in the internet. Social groups in the internet are massive. That is because it is in much ease to get someone involve, there isn’t much effort to put into, all you have to do is click!

I could not agree more with those who believe that despite its ease in mobilizing people, Facebook had made us internationally more aware. We can connect with others from the other side of the world and show our solidarity. I noticed however, that these groups are nothing more than a buzz, in fact only an optical illusion. Its existence is only temporary. Yes, people become more informed with the outside world, but I believe that an effective form of change and mobilization starts through grass-root movements (e.g. Free Tibet). Changes are more apparent in a local setting than it is in a larger (vague) scale.

The other disadvantage of having an account in one of these social networking sites is the amount of time you put into. These sites (personal experience and by observing others) are quite addictive. You begin with setting up your profile, adding friends, and the message postings make you tuned to the site for at least 4 hours a day. Imagine, those time that you could have spent doing other things. The time that you could have used to go out and enjoy the gift of nature, the time that you could have spent learning something interesting, and just everything else that is possible in the real world. You can even save the world for once by conserving energy and putting your computers to rest.

Nowadays, people live in fear. People are afraid of people. The act of socializing or just simply talking to someone is no longer a ‘normal’ thing to do. I remember when I was younger, when taking the public bus to school, speaking to the person next to me was not a peculiar thing to do. But now, when I take the subway to the city, everyone in the train is as tense as a rock and with no lively facial expression. Have we shift our attention to Facebook for a safe social interaction? What have we turned into? Or are we on the verge of creating a new form of society?

I refuse to be enslaved by the internet. And I sympathized with how shallow we have become. However, I do not see why such websites should ceased to exist. There are positive factors that one can reap, especially in a much personal basis, like keeping in touch with long time friends. Perhaps, it is true that we are gearing towards a ‘progressive’ individuals, but that is because we choose to be. Our generation embraced it as an identity. I, on the other hand, can only accept so much … because I am a real society.

b dj.

*update:

Interesting article on how Facebook can ruin your life!

“Mental Risk” for teens

]]> http://dhalangcitra.wordpress.com/2008/06/23/the-facebook-identity/feed/ 2 Budi Dj www.weblogcartoons.com www.xkcd.com http://dhalangcitra.wordpress.com/2008/06/22/returning-home/ http://dhalangcitra.wordpress.com/2008/06/22/returning-home/#comments Sun, 22 Jun 2008 17:06:48 +0000 budidjafar http://dhalangcitra.wordpress.com/?p=63 ]]>

I know that I had somewhat promised to update the blog as soon as I arrived from Colombia; a first-hand reporting of all my experiences. The truth is, there are many things to share in this trip, and after 2 weeks of contemplation I decided to keep those feelings to myself. The trip was personal and too special; it is something that is best kept to oneself.

Other than my emotional encounters, I find myself obligated to showcase the beauty of its people, cuisine, culture, and Colombia’s vast and magical landscapes. The word ‘obligated’ sounds a bit too forced, but a necessary description as to return the services of everything that Colombia has given me. Colombia has full potential to be the the greatest explorable country in the world. The remarkable diversity in climate and vegetation did not stop to impress me. I felt like as if I was hopping from one continent to another in a matter of days.

I have posted many of my Colombian photos. My photo collection of Colombia was more or less around 3000 shots, but unfortunately I cannot post all of my best frames simultaneously, as Flickr caps the amount of posts allowed per month. I shall complete my greatest photos gradually, though.

I loved Colombia. I loved everything about South America. There is no doubt that I have found a deep connection with the continent. It was more than the whole craziness that South America is usually associated with, but it was rather the surprise of knowing that there exist similarities that I can associate with when I was growing up. I had always admired landscapes. I stared and enjoyed the very green, gigantic and mountainous of my hometown, Kuningan, every summer. And the views of Colombia’s Andes reminded me of that nostalgia in a much grandeur scale. The landscape was breathtaking. I had never felt so small, when being shouldered by mountains and surrounded by the bleakness of smogs. You need that sometimes, as it brings you back to earth in a much humbler human being …

I have come to realize that when it comes to people, we are all alike. The social crisis that has hampered Colombia are every day problems of the world. Their daily problems and even to its current political instabilities were something that I have been accustomed to.

This is a bit of a digression, but one thing I learned about Colombian people is how appreciative they are. Colombians are open, honest (with their feelings), and accept everything with an open mind. I find this to be a very special trait of Colombians. They enjoy everything around them (even if you may think its insignificant) and accept whatever that is, positively. Its as if they are able to convert anything into joy. Perhaps, the “magic realism” of Gabriel Garcia Marquez are direct echoes of his people.

Additionally, people have stamped Colombia negatively and I personally think that this needs to be changed. The media has portrayed Colombia to be a land-kill and various governments have red-marked Colombia to be a dangerous state. This is all untrue. I have never felt so safe in my life as I had in Colombia. At every check points (when driving out of the city), at every station, and at every corner of crowded centers, you are always accompanied by the safety authorities (military, state police, and tourism police). It is also true that the kidnapping and that guerrillas still exist in some parts of Colombia but their operations have been diminished tremendously. Foreign tourist are now safe to travel around the country. This should not deter others to visit.

I am certain that my exploration of South America has just began. There are many places that needs to be seen. South America connected my definition of reality. And I look forward to explore that feeling all over again.

Thanks Colombia!

b dj.

]]> http://dhalangcitra.wordpress.com/2008/06/22/returning-home/feed/ 0 Budi Dj http://dhalangcitra.wordpress.com/2008/05/10/colombia-here-i-come/ http://dhalangcitra.wordpress.com/2008/05/10/colombia-here-i-come/#comments Sat, 10 May 2008 06:06:56 +0000 budidjafar http://dhalangcitra.wordpress.com/?p=61 ]]>

There is still a week to go before my departure but I cannot help and imagine what South America will actually look like. When I think of South America … I hear the words of Gabriel Garcia Marquez … so vivid, surreal and magical! I can already feel the magic now … and hopefully I can bring it back with me later.

Like most people on a trip, I want to make the most out of my time. I want to find something that I can’t probably find anywhere else. It’s got to be distinct and special. I need to be as remote as I can possibly be.

Not that I consistently update my blog, but it’s going to be a while until I have a substantial ‘reporting’ materials to share about my trip. I would love to drop a note or update some photos, but that is not a promise, as internet access may be highly restricted.

I kind of have an idea of what I will be doing there, although not entirely. I am quiet a flexible person anyway, as long as I have a certain things to carry with me, I should be totally fine. Without further ado … here is the to do lists:

Travel Necessities:

• Journal
• Spanish language phrase book
• Travel Guide: Colombia
• Crime and Punishment
• 35mm camera
• iPod
• Cruiser board
• An open mind …

Destination:

• Pereira
• Medellin
• Bogota
• San Andres
• Providencia
• Cartagena

Total time: 23 Days

b. Dj

I realized that I have a certain obsession towards musicians that brings melancholic sounds and stories the world tend to ignore. The Felice Brothers is the band that I accidentaly stumbled. The band is originated from NY Catskills and is dubbed as the modern Bob Dylan. I am absolutely psyched to listen to these guys. Probably the best thing I’ve ever heard in years.

Here’s the testimonials:

”This is real Americana.” –Sean E/ESE Entertainment

“I love those boys.” –Grace Potter and the Nocturnals

“The best new music I’ve heard all year.” –Jimmy Buff/Radio Woodstock

“No one is doing what Felice is doing.” –BBC Radio/Londonb Dj.

The Subprime Mortgage crisis that began in the US has affected the stability of the financial world. There are already a lot of ink spilled in trying to explain the causes of the Subprime meltdown, but here is another way of explaining what really happened in a more layman’s terms. George Parr’s views on the Subprime is comical and are unbearably true!

I can’t believe I bailed out on a free pass to see the screening of this film and was willing to forget all about it. Little that I know … this film became my favorite of the month. It could even possibly be the greatest for the next months to come. Juno is a witty-teeny young girl who became the victim of her own burning desires; a time when we all begin to discover the attraction of the other sex.

Juno was clearly not ready to have this baby. She knew it the day she conceived it. So, she decided to give the baby for adoption.

One thing that I like to find in a film is the dialogs. There are only a few hand of films that I can say meet the standard of “unique,” not necessarily different but something that one can really relate to. That connection could be an exact imitation of some people around us or simply the fact that their conversation is unbearably true. To name a few, take for example Quentin Tarantino’s Reservoir Dogs and Kill Bill I & II and Coffee and Ciggarettes by Jim Jarmusch these films are known for how real the characters try to communicate (to you). Things are said in a subtle, direct, and possibly the way you would say things in your mundane life. In the film Juno, you do get the same feeling. Its truth and insincerity of her language is certainly one of a kind. Juno is that type of friend that everyone would fall for …

Go see it!

b Dj.

Have you ever wish that you could can combine all your daily “life-lines” into one single object? For example, imagine having your phone, wallet, iPod, metrocard, credit card, school ID and perhaps even the keys to your house in a simple-ultralight-sleek gadget. Wouldn’t that make everyone’s life a lot more easier to handle? Well, this is of course debatable but let’s not digress so much into this subject. Unlike technology however, there is something more profound that we all seem to desire … perhaps in something in the spheres of love, happiness, life and morality. Would it not be convenient to learn all of these in one single shot? Wouldn’t we all want to become a young philosopher of our time? I have heard people saying that there is such thing in this world. Pick up the Quran, Bible, or the Testaments (these are the ones that I’m familiar with, I am aware there are others) and it would have all the answers of life in one single book.

This is not about technology nor is it about any religion. This is about a work by Francois-Marie Arouet, with a pen name “Voltaire”, called Candide that has become one of the greatest classics in the literary world. Candide painted the nature of mankind in a vivid canvas full of witty, laconic, and sarcastic remarks. Reading Voltaire was a revelation. I never knew any other classical writer that actually stand side by side to Shakespeare. Although comparable, the work of Voltaire is in many ways much more in touch with reality. Voltaire summarizes all the mischiefs, miseries, despairs, deceits, and all the other “mis-es” and “des-es” that we come to know in the English language. As Voltaire nicely puts it, “in short, this world is nothing but one continuous scene of civil war” is precisely the struggle that man have evolved into. It is no longer the battle of nature vs. man, rather man vs. man.

The other catchy factor about this book is how the story is being told. The book begins with an introduction of a wonderful state by the name Westphalia and there lives the greatest human beings; civilized, educated, and beautiful. Candide fell in love with the women he long desired. But his love was forbidden. There was no law that allows the union of two hearts from two different class spectrum. He then left and began his journey in despair and confusion. It is only through the images of the women he loved that lighten his spirits to move on. Journey after journey and trickery after trickery Candide bared. In the end and after several attempts, Candide was finally reunited with his queen and everything else that was familiar to him.

The moral of the story was, what’s next? What is there to do when you have sacrificed everything in this world? What is there to do when all your dreams have come true? Voltaire closed the book by saying, “when man was put into th Garden of Eden, he was put there with the idea that he should work the land, and this proves that man was not born to be idle” and “all events are linked together in the best of all possible worlds” …

I will leave the rest of the story for readers to seek on their own. I shall however, close my comment and introduce some of the quotes that I find enchanting and to some degree, sarcastic:

“If this is the best of all possible worlds, what are the others like?”

“A modest women may be violated, but her virtue is greatly strengthen as a result”

“In this country it is necessary, now and then to put one admiral to death in order to inspire the others to fight”

“Our labour keeps us from three great evils – boredom, vice, and want”

“We must cultivate our garden”

“People take advantage of misfortunes”

“If hawks have always had the same nature, why do you suppose that mankind has changed?”

“All is misery and deceit”

“All is for the best”

b Dj.

I finally decided to write a journal about my trip to Indonesia. Although Its quite unusual on my part to share my personal stories to others, it should serve as an experience to see how people would react. Anyway, the fact that I have been away from the motherland for quite sometime, I realized that many aspects had incrementally changed my stand on things, especially my perspective on Indonesia. I do not question the scope of my alternation but I would rather feel it grow naturally within me.

Ever since my arrival to Jakarta, there was nothing that really interests me. I didn’t leave the house after a week of staying home. I enjoyed my calm week nevertheless, and a privilege to have the company from with my little sisters; which is always pleasing to me. I had my reasons to come here and I couldn’t wait to work on that obligation. After spending another week of relaxation, my work finally began.

My days in Jakarta goes by relatively quick. Perhaps that’s because work is making me wake up 5 am everyday and return home by the next 13 hours. But things are beginning to fall into place. Work is taking away my boredom and I am getting way used to how life works here. After precisely spending 3 weeks in Jakarta, I finally initiated a trip, with my fellow friend Okta; a good friend from junior high. I would like to have the company of my brother, but time hasn’t been in our favor. Anyway, the tales that I will jot down are events that are important to me. Places that I have been wanting to see and finally saw it. I hope some of these tales can sparkle your interest as well.

Pelabuhan Sunda Kelapa

There are only a few things in this world that ignites my sensitivity. One of them is a site like Pelabuhan Sunda Kelapa, a port once significant in spice trade history. And for others, it was a threshold that introduces them to the New World.

We left for Sunda Kelapa at around 7 am and it took us about 30 minutes to get there. We left early just to avoid major trafic but luckily the day was empty and they traffic was bearable. We got lost for a bit but finally found our destination.

When I got to the main entrance of Sunda Kelapa, I could easily picture the whole dynamic of the port decades ago; merchants chanting their goods in hope of getting the best deal while natives stare at giant ships presented in front of them. I could just imagine myself in years 1500’s where the port was grand and full of ships from all over the world, where languages interchanged as frequent as globalization today. However, the lack of preservation efforts from the government, distorted my frame of thought at an instance. I could not continue my imagination as I stood there staring at ships parking, waiting for the next contract to Kalimantan. I could no longer see how such a place could be so important.

I have never been to this place before but I believe that the port has shrunk considerably. On the other side of the canal, houses has been built to accommodate Jakarta’s population growth. Houses are even built above the canal waters, which is an apparent symbol of Indonesia’s lingering social inequality. Is this why traders came to Indonesia? Where are the resources now?

Anyway, I decided to take a boat trip around the canal to see how people lived on the other side of the port. Devastation was felt as soon as you stepped into that boat. The water was opaque and dense, filled with anonymous garbage disposed by inhabitants. Since water is considered luxury goods, the port’s water was utilized for daily necessities: bath and bathroom. An unsurprising feature of life in the third world. There were quite a few sailors that were working on their ships. They stared at us as if they understood clearly the social gap between us. A representation that I did not wish to portray. But it was too obvious. There they were working while me, taking pictures. I was ashamed.

Museum of Fatahilah

We proceeded towards a local museum right around the block from the port. The museum is located at an old building that used to be owned by the colonists. I believe it was first occupied by the Portuguese then followed by the British and the Dutch. The old castle had ancient artifacts from the West. Some say that they building was used not only as the center for colonists but also had a hidden dungeon where most of our revolutionaries were detained. I happen to get into that prison accidentally. Hot and humid. Certainly unpleasant.

The building is now used to show case most of their belongings. Nothing from the Indonesians (well some but not so significant). The surrounding premises was quite pleasant, I could see many buildings of the ancient city. Unfortunately, the place is close to a ruin. Even the museum, many parts of the building are not well kept and are ready to collapse.

The funniest thing was that, when I visited the museum it was exactly during Jakarta’s 480th birthday and they had some parade organized outside the museum. At the show, I could not help but commented to my friend Okta who also happened to see many ambassadors sitting under the terrace while enjoying the show, “even up until today we are still serving the colonists…” That irony lingered in my head for quite a while that day.

So we walked around to see if there was anything worth purchasing. I bought some post cards which was pretty traditional. Just don’t know who to send it to. Anyway, the weather got too hot so we left after a having a batagor and some es campur. This will be the end of a trip for a while.

Bali

It wasn’t not until the end of my internship that I was able to leave the city of Jakarta. It was exactly on the 16th of August that I left with Jeremy, Eby, and Gia to the island of the gods. The trio had arrived on the 15th but weren’t able to see the metropolitan city, except for a little tour around the hotel. I wanted them to see what Jakarta had to offer but at that point our minds were already set for Bali.

I picked the trio as soon as I got off from work and went straight to the airport to catch the 8:25 p.m. flight. We got delayed for about 25 minutes but fortunately the wait ended up saving our lives. Jeremy’s and Eby’s missing luggage (a box of skateboards) finally arrived and was delivered immediately to our gate. Now, they both do not have to purchase any boards in Bali.

We arrived in Bali and was picked up by Eko and Anis. I am personally glad to finally meet them. Its been years since I last saw Eko. We got to the hotel and didn’t do much except for dinner and a couple of cold beers before heading to bed. Although I was tired, I was happy to finally see my brother who I have not seen in a very long time. We stayed up talking until around 4 a.m. and then continued each others’ company the next day.

The next day, Eko and Anis recommended us to go to Sanur, as one of the best places to snorkel, which is a priority in our to do list (well, I was then told that there was another area to snorkel but will take about more than an hour to get there, I don’t know if its really worth it besides we are running on a tight schedule). So we went over to the location and rented all the necessary equipments and of course the boat to take us to the spot. Snorkeling was unbelievable. This experience was everyone’s first attempt and we all seem to enjoy it. I have to say that jumping into the ocean with a strong current wasn’t a fun experience for the first 10 minutes. I could swear that I almost had a panic attack. My equipments were not as friendly as I thought it would be and adjusting the flippers was not an easy task! Nevertheless, I got to see a pool of fish swimming under and around my body. It felt incredible. The corals were just too magnificent and colorful to forget.

Swimming and jumping of the boat lasted for about an hour and then we headed towards the Turtle Island. I’ve been there before and I thought it would be nice to show the trio what the conservation was all about. It’s just a small island where locals safe sea turtles and help grow baby turtles until they are about 2-3 years of age and then release them into the ocean. Not only were we able to see some 60 something years of turtles but Eby and Gia were amazed when they finally saw a fruit bat. They even held it. And that I thought was surprising

Then it was time to come back to the beach where Taufik and Dini were waiting for us. Since it took us almost the whole day to snorkel, we thought it would be really nice to spend the rest of the evening watching the sunset. There was only one spot to see the beautiful sunset … that’s Dreamland.

We drove towards Dreamland and as soon as we got there we could here the music pumping and it seems that the rave fever is in the air. We got off the car and walked towards the foreseeable ocean. As soon as we got into the end of the cliff … my jaws dropped and couldn’t feel anything else except for an extreme feeling of joy. I didn’t waste time and rushed myself down a steep pathway towards the beach while visitors were already heading back towards their vehicles. I finally got to the beach … stunned by the waves and the tall reefs surrounding the beach. I stared at the falling sun … enjoyed the view with complete silence in my head. Sitting there with my brother right beside me was the most beautiful thing ever. I don’t know when I will have his company again. Sitting there and just having a beer while the sun starts to set was unbelievable. Then it sets and we left the beach. We didn’t really like the whole rave thing going on. Although the setting was wonderful … it was not what we were looking for.

Coming back from a long day of full activities, Eby and I headed out to skate after dinner. Dinner was sort of late but it did recharge our batteries. We started out skating at around 12 a.m. and ended the skate session at around 4:30 a.m. The night session around the beach, while everyone else is sleeping comfortably in their hotel beds, was all I wanted from this trip. We skated in a quite breezy night with a complete freedom. We cruised from Kuta beach all the way towards midtown area where all the five stars hotels are. The streets were smooth and every obstacles seems to be so easily tackled. We did get kicked out from several skate spots, but we know that there were going to be more spots available as we moved forward. And we were right: ledges, manual pads, transitions, gap-to-fire-hydrant, and many more. The only regret from that night was the fact that we did not bring any camera to document our session. We planned to come back the next day but never got the chance to. I guess somethings are meant to be memorized.

We know that the next day won’t be as easy as we thought. We all planned to wake up super early but everyone ended up waking at 11 a.m. We were tired and deserved a bit of rest. After all, this was a vacation. We didn’t know what to do until my friend suggested to head over to the Monkey Palace, where wild monkeys are conserved as part of the Hindu belief and as an effort to save wild animals. The Palace was humbling. I mean the palace was literary a temple on top of a cliff looking towards the vast ocean. I didn’t quite know where we were looking towards, but I’ve always thought that we might be looking at Australia. I might be wrong, who knows … So, here we were at the monkey palace and trying to play around for a little “spank” (that’s just a joke of course). We chased and fed them yucca as a way to get acquainted. But the whole act of trying to be “nice” to these monkeys was counter-productive for me. I was warned not to wear my glasses but did it because I thought I could be careful and believed that no monkey would jump up and grab my glasses. I lost sight at one location and VOOOMMM!!! The monkey stole it. She kept biting just to see if it was actually edible. I started calling the keeper and he chased down until she actually dropped my glasses. Overall, my glasses was alright except for a few tooth marks. Eby got the whole thing on tape. I gotta get that video and post it for you all.

Then the sun started to sink. Again I wanted to see every sunset in Bali. So I asked my friend if it was possible if we go down the cliff with our car and catch the sunset. It was all possible and we all run to the car so that we won’t be late for the Kecak Dance back at the temple. We drove down and hit the “surfer’s paradise” called Padang Padang. What’s amazing about this beach was that there weren’t any crazy tourists, it was sort of like a hidden spot for surfers. As we go to the foot of the beach, to my surprise, we had to walk into a cave before getting our feet wet. The cave was spectacular! never seen anything like it. The smell of salt water and the physical object of corals that goes up as high as a few meters stunned me. So we chilled and looked at the clear sea water for quite some time. We spotted sea creatures and was mesmerized by how beautiful they all looked. One bad thing about this trip was how we rushed getting to places. We stayed maximum half hour and we ran back to the car to catch the Kecak performance. Padang padang was too short. I really regret it.

I’ve planned several times to see a traditional Kecak dance. There must have been at least 3 times ever since I was in Bali. So I had to make this one a reality. The setting was perfect and this was the actual performance where they had people kicking fire balls. I had to drag everyone into the show. The performance was alright, but being myself (a perfectionist freak at certain times), I was a bit disappointed by what I saw. It was not the real deal. They were performing to entertain tourists and was not expressing the real art of Kecak. I kept my silence and ignored the performance quietly. Instead, I began staring at the sun that was sinking into the ocean and then starred at the sparkling stars above my head.

As the performance ended, I treated the trio a natural coconut drink outside the temple. Apparently, no one has actually tasted coconut milk, except maybe for Eby. It was wonderful but I wasn’t really in the mood to drink and ate none of it. There was just one more stop for the night. A national park that coincidentally was on the same way to our way home. The idea of the park was to narrate the history of Indonesia. Beginning from the earliest kingdoms until the present day. What’s interesting about this place is that the local government took an audacious step in dissecting an entire cliff and making it into several cubes, which will then be carved for the narration. And among these gigantic walls, a statue of a Hindu God, Wisnu, sitting on the symbol of our mythical bird stands firmly. Hence the name Garuda Wisnu Kencana (GWK) was derived for this auspicious site. Although the site is only 25% done, we can all imagine how large the statue will become once it is completed. It was getting really late, the only place available to eat was at the local restaurant. Beautiful. Had the best duck ever in my life. I cannot stop telling people about this dish.

The day was wonderful and we all went home with one souvenir: fatigue! I passed out immediately and returned to earth the following morning.

I felt that the slept I had gotten was exactly what I needed all along. I’ve been in Indonesia for about 2 months and a half and all I did was worked and never got the rest I deserved. And in addition, I completely forgot that my brother was also in the trip with us and yet I was not hanging out with him. So as soon as I woke up, I told Eby that I was going for a walk and inconspicuously called my brother to invite him for breakfast. I wanted at his hotel lobby, which was a block north from we were staying, and finally had coffee together. Breakfast was subtle but we spoke just like we used to when he was in NYC. I tried convincing him to come see the art market with us but he himself needed sometime alone.

So Eko and Anis showed up and we started our day towards the market. I was looking for something extraordinary but all the merchandises were such a cliché. We lasted no more than 30 minutes and left towards the waterfall. My friends had warned me about the trip to the waterfall. It will take us approximately 1 hour and a half. That bothered me a bit but deep inside I wanted to experience something different in Bali, something that is not touristy whatsoever. They were a bit hesitant but I said yes to the idea.

The road up the mountain was absolutely fun even though the trio thought it was a little suicidal. It started to drizzle and you can feel how slippery the road had become. I got frustrated … I questioned whether this whole trip was even worth it. But then suddenly, we saw wild monkeys roaming the street, sitting down along the curb waiting for some passenger in a vehicle to toss them with some food. There are some cute ones that I especially liked. I didn’t take a picture of it since it all happened relatively quick: a monkey sitting on a curb with its hand gesturing for some food. I thought it was funny. They are just as smart as we are.

The roller coaster ride ended. We got to the location and we all jumped out of the car not wasting any time. From where we parked we had to walk into a jungle-liked area and then into a local village. As I walked towards a vast range of trees and flowers, flashes of childhood memories began to appear before my eyes. I knew this was where I belong and forgot about all the regrets for coming all the way to this remote site. We walked and walked and then began to hear the sound of streams and splashes. I walked even faster and there it was … the Gitgit Waterfall. I was amazed and couldn’t believe how beautiful it looked. I ran to Eby who got to the location earlier and told him that I was going in … and so was he. We all jumped into the water and for me this was the highlight of my trip.

We got back to Legian and there was one last thing that we had to do before leaving. We had to go to Base skate park. So went and skated our asses off. After several slams, I knew the day was over for me. I stopped skating and instead cruised around the park. We got home exhausted and went straight to bed. Well not exactly, Eby and I had a long conversation up until 4 am.

I woke up early but was not in the mood for anything except for another breakfast with my brother. I left the hotel room while everyone a sleep and had a quite meal. Everyone decided to go to the beach for one last time. I stayed in the hotel and just wanted to be alone. I guess after all the commotion, I realized that my time in Indonesia has come to an end. I was mournful. Perhaps, I knew that I am really going to miss everything about Indonesia, my home, my family, and friends. When I leave I know that my youth will be slowly taken away. I didn’t like the feeling but I guess this is what I am meant to do. I have to stick to my decision and finish whatever that is needed to be done back in NYC.

It was getting close to our check-out time but no one arrived. Then not long after that the trio came back with smiles on their faces; They enjoyed Kuta beach. I am glad.

We all got in the car since we had to check in the airport by 2 p.m. We were rushing ourselves and I couldn’t say goodbye to my brother as he went back to sleep that day. I didn’t want to be in the car and so decided to ride my friend’s scooter to the airport. It was one of the most liberating feelings I have ever felt with the wind blowing into your face and with the versatility of the scooter, I felt like I could do anything in this world.

I know I might have missed out on several important occasions about the trip. However, somethings are probably best left untold and stored in our minds. We bid our farewell and returned to the mainland. Bali … we shall continue our adventure again, one day.

This trip would no have happened without the help of my good friends Eko and Anis. I am thankful to them for showing us their hospitality and kindness in taking us around their home

Thank you for the wonderful memories … look forward for the next trip.

bDj’ 09.07

“When people are very original, sometimes they are original as a way to resist the mainstream” 

- Michel. Gondry

After the success of The Eternal Sunshine of the Spotless Mind, Michel Gondry have once again stunned us with an unusual combination of life and the power of dreams. The film was created with a unique approach that incorporates claymation and green-screen effects. 

The films stars a well known talent, Gael Garcia Bernal, who played a unique individual with the ability to recreate his reality in dreams, which then led him to a sequential imaginations of love.

b Dj. 

“We Spartans have descended from Hercules himself. Taught never to retreat, never to surrender. Taught that death in the battlefield is the greatest glory he could achieve in his life”

Frank Millers’ new graphic novel tales one of the gory wars between Greece and the lords of Persia. The film highlights the audacity of 300 Greek soldiers, led by King Leonidas who defies the ruthless Persian empire from ruling Greece.

For some of you who admire the artwork in Sin City, where the cinematography is filled with high contrast colors, will really find this film quite similar. It makes it seems as if comic books are becoming real animated characters. 

You certainly learn something from this film since it shows a significant moment in ancient Greek history. The battle against the Persians was indeed lost, but the bravery of the 300 Spartan soldiers inspired the unity of the Greece from foreign exploitation.

I find this film quite idealistic poured with Western believes of freedom, equality, and “happiness”. Perhaps a cliché in most epic films. There is certainly nothing wrong with that, but I am concern with how the film portrays the Persian nation. Persia have vastly attributed to modern medicinal science, art, and a culture that subsequently influenced others. I am afraid that those who are not familiar with Persian history might take this film with the wrong conclusion.

I am not surprised with how Hollywood glorifies Western history. We have seen it in films like Troy and  Alexander. But with more epic films coming out of Hollywood, I long for a film that breaks away from this predictable pattern. A film intended to tell a story from the peripheral perspective. 

Only then … can history be told.  

b Dj.

Brewed the coffee that morning, threw myself in the shower and dressed up for the daily routine. My day begins …

I never had the urge to escape or even question my reality until that morning. I felt more than just a corporate slave who is steadily drenches its blood out of his creativity. As a remedy, I wanted more than the usual, perhaps something friendly and familiar to me. I just wanted to feel like a child again …

So I called up Eby later that afternoon to see if he would want to join me to Philadelphia for a two day skateboarding trip. Picking Phily as a destination is never a doubt. There are endless spots all around the city and some are just purely untouched, besides I’ve been there several times and never been disappointed. It was rather an easy pick. So we agreed to meet up at 8 p.m. on a Friday evening at Chinatown to take one of those Chinese buses that are ridiculously cheap. Twenty bucks round trip with a departure frequency: every hour! You can’t beat that my friend …

It has become a custom for me to arrive late whenever it comes to skating. A habit … a bad one that seems to be very difficult to get rid off. However, to my surprise, I was right on time and got on the bus right away, way a head of our agreed time. As I waited, Eby still didn’t arrive at 8 p.m., his work is just a few blocks away. Strange. So I kept calling him to see if things were alright. He got stuck at work and came a little later. We regretfully had to take the next available bus.

We finally got to Phily, at that point the rain had started to drop. But luckily, Arif was kind enough to pick us up, took us to eat Malaysian food around the corner and we were allowed to sleep over his place.

The next morning, we started the day by hitting a local Whole Food store at 10 am. They had a sidewalk with rails sticking out of its sidewalk. Don’t know what its for, but it was completely skate-able. Not long after we had our early warm up, we headed to FDR park. This is the spot that I’ve always wanted to see. Amazingly, the skate park was full concrete and for me, totally unskate-able. Too big for me. We ended up just skating the mini ramp. Then, it was over.

Temple University: been there before, but never really a big fan. All it has is just a set of stairs with busted ledges (which is the greatest contribution bikers could ever make). However, in Temple they actually had a mini park right inside their complex. A bunch of benches with metal copings. Like all other spots, I think Temple can only be categorized as a one-stop spot. Cops are everywhere and its just really annoying to concentrate while you actually have to watch your back. I have to say I was really looking for something quite unusual. Something not available in NYC. Nevertheless, the spot was fun.

The best thing about skateboarding is that you are forced to find a heaven for expression. When you cruise around, sometimes you’ll encounter places quite redundant and not motiving at all. But when the time come and you found it, your state of mind becomes completely submerged into that very obstacle in front of you. Our next stop is a spot quite unfathomable to me: the ghetto park.

The term ghetto park is self explanatory, it is really a place where your skating environment is completely surrounded by suspicious activities that may or may not be safe. Drugs were being sold all around you, people were curiously looking at your intentions, and of course the ghetto would not be complete without children (or may I call them messengers) running around looking for trouble.

I loved that spot. I felt that I could understand the environment. I skated and was at point of my optimal expression. Then, Eby and Arif were not feeling comfortable with the these little messengers going around their backs. Those brats were insisting us to pay them $5 every time we missed on a trick. And did not hesitated to tell their “brothers”. So we left. I hate to feel powerless, but I had to compromise. At least I got one good shot from the spot.

We didn’t know where to go from there on. Every spots seems to be full of cops, and we just didn’t feel like continuing a pointless journey. We decided that, hitting back the Whole Food spot probably could complete our skate trip. When we got there, Eby had a run to film and I wanted to get more pics. We stayed for quite a long time and pretty much wrapped it all up.

Although we went to the museum to check up a spot, that trip didn’t get us but left us soaking wet. The rain started to pour out of nowhere. Luckily, Arif’s apartment was just around the corner. We chilled for a bit and then prepared ourselves to get back to new york the same night. We couldn’t skate any more. That was the end of our skate trip.

This trip was more than just trying to get away from my daily routine. It was in some sense, my way to reconnect with my long gone passion and to fulfill the the lost of my closest friends. I’m just glad that it did.

bDj.

Iwan Fals’ poetic lyrics always remind us with images of Indonesia. To some of you who are not familiar with Iwan Fals but perhaps have heard of music legends like Bob Dylan and Neil Young, might find their way of singing rather comparable. Iwan Fals is a storyteller that represents the true voice of Indonesians. I found some of his songs on the net and I am enchanted by how real and abyss his emotions are towards the hardships of our fellow brothers and sisters. 

I have updated this bulletin with the translation of the Mencetak Sawah. Although It is not the most accurate, it should give you some sense of what he is saying. And for the second song Dimata Air Tidak Ada Air Mata, I have decided not to include the translation since it is more difficult for me to find the exact meaning. My effort would just distort the content of his song. This might be an inspiration for some of you … check out the lyrics: 

Mencetak Sawah

Kubaca koran pagi sambil ngopi

(I read the morning news with a sip of coffee)

Ada kabar menarik hati

(A news attracts my heart)

Konglomerat akan mencetak sawah

(A conglomerate wlll produce rice)

Di atas tanah milik siapa

(On whose land?)

Aku jadi berfikir

(I began to think)

Untuk apa berupaya membuat sawah

(then what is the point of us producing rice)

Sebab tanah ini tak lagi berkah

(If land is no longer fertile)

Tak lagi … ramah

(no longer available)

Semua kan sia-sia

(Everything will be a waste)

Karena kami tak lagi makan nasi

(Since we do no longer consume rice)

Dari bumi pertiwi ini

(From this mother nature)

Dari keringat pak tani

(From the sweats of our farmers)

Tanah-tanah suburmu sudah menjadi ranjang industri

(Your fertile land have shifted to industrial productions)

Menjadi ayunan ambisi-ambisi

(It has became an ambition to produce)

Demi gengsi demi aksi

(For the sake of pride and action)

Untuk apa sawah-sawah

(why do we still have rice fields?)

Pak taniku sudah pergi

(If all farmers have all gone … )

Menjadi pejalan kaki

(and become pedestrians)

Yang . . . . . . . sepi

(that are … lost)

Undeniably beautiful … 

b Dj.

Sho Ma, a promising young artist, was found dead on Wednesday in his Queens apartment from an apparent suicide. He was 24 years old. For many years, he coped with schizophrenia, and struggled to lift himself from its debilitating condition. It was a struggle that he consciously fought, imbuing it in his artwork.Tragically, it was a struggle that he lost.

Sho Ma was born in Beijing, 09.24.82 and immigrated to this country with his parents in 1990. He attended primary and secondary school in Forest Hills, Queens and was near complete with his studies at the School of Visual Art in Manhattan where he received several awards. He was beginning a promising career as a painter most recently showing his work in several group shows. He was well read in the field of Philosophy and Art Criticism as well as an avid fan of popular music, much of which found its way into his work, giving it a vitality and uniqueness. He was beginning critical writing and showed great promise in his outlook and sensitivity.  He acted and modeled from an early age and recently had a small part in the movie “It runs in the family” with Michael Douglas. His character in the film was a skateboarder, a skill that he was well known for and received a New York Times Critic Pick in 2003 for his performance.

Sho Ma grew up in a family of artists. Both his parents are painters, his father, Ma Kelu who is well known in his own right as well as his mother Bai Jing Sheng. The family has recently returned to Beijing. His death is a great lost to the family and to all those who suffered as Sho Ma did who know the strength of will and the endurance of the spirit that is needed to combat this illness.

*Taken from NY Times Obituary

To my dear friends,

It seemed just yesterday when we all pushed to skate against the rusty streets of NYC, where the joy of conquering new terrains was our ultimate and sole objective. Now you have bid your farewell for the unreachable place. Thanks for showing me the unprecedented world of art and music that I may not have known without your guidance. I hope you rest in absolute tranquility. You will always be remembered. To Sho and Nick, your spirits live on!

b Dj.

The pursuit for a perfect society has always been the ultimate human desire, where inequality, poverty, and repression are alleviated from the face of the earth. Throughout history however, the road to achieving a Utopian society is a problem in itself. George Orwell’s 1984 is a novel that portrays how the world can become when powerful interest groups conflict with the establishment of social freedom and harmony. In this book, the “big” picture that Orwell gives to the reader is that the hope for a better society might just be in our disadvantage, if we we fail to fully understand the nature of power relations. One of the concepts that needs to be undermined is how those in “power” would do their utmost to sustain power and further enforce their influence for the benefit of the beholder. In this book, Orwell creates a setting in which the world we live in, is not as natural as it seems. Rather, a creation of those in power; ranging from the news we absorb, the bombardment of international affairs, wars, and even to the records of history. Powerful groups recreate fantasies for us to believe and to fear, so that people can always look up for the protection of those in charge.

Fear is the engine for absolute control. It is through this method that people will always feel inferior and hopeless. Nineteen eighty-four gives an analogy of how some of these methods of power preservation takes place. Orwell describes the fundamental tool of how the Big Brother exercises its control. Methods such as Hate Crime feeds society with daily false information or as we know in the present day as propaganda, doublethink which is an acknowledged error where people have no other choice but to accept it, and finally the making of individuals or groups that is simply non-existent. These methods are some of the ways that even to the current time is still a valuable tool for powerful individuals to exercise. These tools make us believe what is untrue.

There are many other issues that Orwell brings up in his 1984 novel. Such as how important it is for a regime to flex its muscles through military means. Orwell showed the reader that military supremacy is another way in which the powerful can guarantee their search for available resources. Throughout the novel, military suppression is apparent at every scene. Somehow, it makes us feel as if the role of the military goes beyond national security but as a surveillance to our daily activities.

Before reading this novel, I’ve heard numerous comments on how this book was written to criticize the paradigm of the capitalist system. To some extent, it is true, because the capitalist system degrades the living standards of the non elite through repressive work environments. In addition, workers are no longer identified as humans but as numbers that work systematically like robots, that when it malfunctions, it is disposed at will. In effect, it disregards the well-being of workers once their skills and talents are no longer useful. Such treatment is the nature of capitalism. But such devastating picture can also apply to any regime. Socially and economically speaking, a socialist system would probably have done better in giving back welfare to the people, but politically, a socialist system are not reluctant to use its arms to enforce its rules. In this novel, Orwell reminds us that power is not the means, but it is an end to every administration. The motif of greed and continuous prosperity of the elite can transform every aspect of a regime at a blink of an eye.

bDj.

    Important elements to be included in a pro-development post-Washington Consensus Consensus are the promotion of effective state institutions and more openness to alternative options by the international institutions in eradicating poverty, unemployment and development. However, there are barriers that we should still look out for, such as the undemocratic procedure and the lack of transparency in the global institutions. There are certainly other factors that must be taken into account; Political relationships between powerful nations can distort the process of development. By establishing a mutual goal by both institutions, the path to development and growth can be well established.

Development is a continuous changing process. One cannot assume that by adopting one permanent economic system alone can solve the complexity of slow growth, poverty, and unemployment. Strategies and the political climate of a country must also be taken into account. In implementing policies, many developing countries and the international institutions have taken a path that is rather stagnant to development. There is the need of a greater cooperation between the national government and the international community in achieving global scale development. Therefore, developing countries must attain its sovereignty in managing their domestic institutions and the international institutions must also be open to unconventional methods of development. In addition, their vision to sustainable development must shift away from the efficiency of market and economic surpluses, but rather to the efficiency of institutions. Developing countries must also be included in decision making process because the level of transparency and participation halts access to trade that is subsequently the path to an economic growth.

The Washington Consensus is a consensus driven by a theoretical belief where developing country can be developed only if it opens up its economy to the global market system. In achieving this market equilibrium, Washington Consensus strongly urged a “laissez faire” approach where government’s role in the state is substantially minimized in order to avoid any hindrances in satisfying the need of the society. Such approach of total freedom from the government is called the neo-liberal approach. During the 1970’s neo-liberalism was the dominant approach in formulating development for developing countries. It was highly recommended by the Washington Consensus because neo-liberalism was perceived as a successful strategy adopted by many developed nations and that it will not crowd-out the private sector. By restricting government’s role in the economy such as trade barriers and social expenditures, it can effectively remedy the complex situation in developing countries: unemployment and poverty.

The Washington Consensus such as the International Monetary Fund (IMF) and the World Bank are institutions created during the Bretton Woods Convention in 1945. More than 40 countries were brought together in attempt to create an international system that can further prevent global crisis that occurred in the 1930s and 1940s.

However, the Washington Consensus policies have been rebuked by many groups from the Non-Governmental Organizations (NGOs) as well as scholars from both the center and the periphery (dominant countries.) These groups protested that the policies adopted by the international institutions did not help the hosting country in developing their economy. Instead, it worsens their condition due to the lack of sovereignty in domestic management imposed by these international institutions.

The Washington Consensus is operating under a false assumption. They believed that by simply opening up a country’s economy to trade, it will create a virtuous cycle that can eventually trickle down to the rest of the economic sector. However, the Washington Consensus disregards the fundamental fact that an economy cannot function effectively if the edifices of institutions are not well established. If international community keeps on injecting aid to the system, there are chances that the aid will be misused by the ruling regime that is corrupt and undemocratic. Monitoring where aid is delivered or channeled must be under a great scrutiny. For instance, in the oil-for-food program, Saddam Hussein was able to acquire billions of dollars that should have been instead used for the people. Some of the problems that we have seen in helping developing countries are that most of the contribution was not acquired by the neediest, but instead it was given to “friendly” states.

Forcing neo-liberalism pre-maturely is strategically irrational. We have seen instances in countries like Turkey and Argentina where the adoption of neo-liberal approach have led them to adopt policies that were so centered towards a short-term speculative investment. Plus, with the oil debt crisis emerging in 1970s made their situation even worst. Therefore, these countries had no choice but to finance their expenditures through incurring new loans. neo-liberalism, as an imperial ideology, has also failed in promoting overall growth in the global economy. Since the 1970s, global economic growth increased substantially, but it did not show any of its effects in individual countries. As a contrary, it expanded income inequality between the rich and the poor. According to the World Bank’s estimate, the overall average of people that are still living under $1 a day still remained constant during 1987-99 .

Many countries, organization, and scholars are showing their dissents towards the policies in the Washington Consensus. One primary reason is that when the Washington Consensus required all developing countries to develop their own Poverty Reduction Strategy Papers (PRSPs) to demonstrate their programs in promoting development, it did not set-forth any sense of “ownership” as it initially promised. “Ownership” reflects the sovereignty of a nation in implementing its own strategies. Instead it adopted IMF’s Poverty Reduction and Growth Facility (PRGF) that proposed most of its policies without any relations with the PRSPs that countries present. The Poverty Reduction Strategy Papers (PRSPs) is only a cover up to make it seem that the IMF is actually revising its policies. Therefore, there is a need for a better system that can actually promote development.

The Rise of Post-Washington Consensus

Since the early 1990’s many scholars and organizations have tried to remold the Washington Consensus’ agenda by contributing a new line of thinking that is against the mainstream ideology.

The Post Washington Consensus is a revised “Washington Consensus” that embraces alternative policies without eliminating its goal in eradicating poverty, unemployment and help developing countries to develop. It takes some of Washington Consensus’ ideas that are progressive policies and incorporate new ones that leaned more towards social policies, not the market.

Post Washington Consensus and its new recommendations are crucially desirable. Firstly, the PWC incorporated and adopts many heterodox policies that are extremely crucial in reforming government institutions. This alternative allows government to provide resources to sectors in the economy that can be a starting point to development. For example accessing financial services to agricultural areas, where most poverty and lack of education occur, can boost their productivity rate. When access such as these are tangible and can be put into use, agricultural producers will recognize the existence of the market. As said by an economist named Theodore Schultz, farmers are not inefficient. As long as they are given the resources, they will be able to produce more effectively. This notion of “Big Government” is the aim in development. Once government acquires its revenues to finance its spending on the public and key sectors in the industry it will help build the facility for the market to work. Public investment should not be seen as the enemy to the market, but it should be understood as the foundation to an efficient market process.

Post-Washington Consensus also acknowledges the importance of democratic participations. Transparency and openness to the system that will guarantee that developing countries can raise issues that are prominent to their interest because by helping developing countries acquire their interest, it can trickle down to the interest of the global world. The PWC must try to collaborate with the public for a better dialogue in solving a problem; because enrolling government officials in a dialogue with citizens of the community opens up a whole range of new information. This provides developing countries with policy options rather than adopting one permanent policy where its success in development is still ambivalent.

Elements of the Post-Washington Consensus

The implementation of Post-Washington Consensus can be highly volatile if it is not properly coordinated among the developing countries and the international institutions. Policies must be carefully selected in order to have a progressive outcome. There are several elements that are essential in development. Some of these elements are: strong commitment in the international community to development, national “empowerment,” state-led development policies, ISI strategy and democratic participation in the international institutions.

Before applying sound policies to help developing countries come out of their miseries, there is a need of a stronger international support. Many points in time, developing countries are not able to develop because they do not have the fund and resources to implement their policies. The only way that developing countries can start developing is from acquiring grants from the developed countries. There is the need to create a proficient committee to track the transferring of grants because has been instances where developing countries are stuck in a debt-trap because of an illegitimate dictator who acquired funds that are not in the interest of the people; and once dictators and elites speculate a default, capital flight, the transferring of investment to other countries start to occur (South Korea and the Philippines.) Now if countries start to acquire another loan, knowing that it has accumulated enough, then long-term debt will also keep on incurring. Some of the problems with this issue are that many governments and institutions are eager to lend these countries because they know that if a country ever defaulted, IMF and the World Bank will help them with more funds to repay the debt. This will create a cycle where the repayment of principal and interest will take years to complete. Therefore, some of the debt must be declared odious.

Once developing countries acquire grants and support, international institutions should lay a framework on how the national government should structuralize its policies. International institutions should only be eligible to advice but not to force them implement policies that is not according to their PRSPs. This should not be an “ownership” of the donor country but should be an “empowerment” to the national government.

National empowerment gives developing countries the autonomy to institutionalize its economy and its industry that is in their best interest. By specializing production, poor countries will have the advantage of producing goods that are in their comparative advantage. Only through diversifying its production, countries can perhaps create goods that are dynamic in its advantage. For example, before Japan became a major automobile exporter, it did not have the advantage of producing any steel. But because Japan shifted its production towards high value-added goods, its revenue and its technological development expanded very rapidly. Japan’s economic growth is a result of an effective institution that promotes competition. Government should also raise its revenue through taxes because government can acquire the funds necessary for developmental programs. In many developing countries taxes are already too little to finance. Total ratio of revenue to GDP in Indonesia decrease from 19 to 16 percent and same is recurring in many other countries. Tax cuts on average are half powerful as that in an increase in expenditure. State-led development is often believed to be incompetent by neo-liberals because it triggers rent-seeking and corruption that favors monopolist. However, such accusation is indefinite. State-led development can be a great source for public investment that results in a greater prosperity and further poverty alleviation. When government spends its revenue on education and infrastructure, this will perfectly ease market transaction. As people become more educated and are put used into the system, unemployment rate can decrease substantially. This then takes us to the concept of Import-Substitution Industrialization.

Import Substitution Industrialization (ISI) is a strategy where government supports domestic producers by imposing strict tariff and barriers to imported goods. There are different stages in ISI, the first step however is to make sure that domestic producers are given the advantage to supply goods and services so that they can create jobs, acquire revenue and develop technological advances. ISI is advantages for some countries. For instance, China is the most populated country in the world; when it closes its market from foreign producers; local producers have the advantage to supply to all its domestic market. They do not have to depend on the international market to fulfill their production. Countries that do not have this advantage can also benefit from this strategy because ISI ensure the diversification of production. Certainly developing countries can start by producing commodity products, but it must stay away from the production of “cursed” resources because it is not a highly-value added product and will not contribute anything to the development of technology and increased wage rate. Once this has been achieved, then government must loosen its restrictions to the international market so that competition can still be enforced to promote better innovation. This “strategy switching” will promote exporting goods to the international market. Countries like South Korea did not conform completely to the neo-liberal paradigm, they incorporated “interventionist strategies and an active industrial policy” before freeing the market. This will further increase the demand for national currency that can be beneficial to the country’s export and foreign reserve because currency value of a country are seen by investors as a signal to stability. This will attract Foreign Direct Investment to the country and can further create virtuous cycle by increased in jobs, investments and the living standard.

Investment in agricultural sector must also be included in the Post Washington Consensus agenda. Rural areas in developing countries are the core problems that must be encountered. It is in these rural areas where poverty and lack of education are severely existing and limited. Agricultural areas must be supported because they are the back bone for many of these rural areas since they do not yet acquire any technological advancement. Obviously, there is the need to industrialize once facilities to develop are accessible. In overcoming this unequal distribution of resources, state must diminish the existence of “urban bias” that focuses investment primarily in urban areas, while disregarding those in the rural areas. Under PWC, international institutions’ recommendations in providing financial services such as credit and long term loans would give incentives for farmers to produce more effectively must be included. The impact of financial liberalization is significant in rural areas. As said by Williamson, “financial liberalization often occurred without the appropriate complement of prudential supervision,” this illustrates the need of government led services to balance out the need of society. In addition, investing in “Socio-Overhead Capital,” such as irrigation system, electricity, roads and transportation can alleviate hindrances of market process. And this is certainly an option that countries must take. In promoting further the agricultural sector, there is a need in establishing a trading system for farmers to sell their products. In some countries, government set prices for farmers in hope to earn profit by buying it less than the market price and selling it back to rural areas where price is slightly higher from its original price. Therefore, the trading system will be in the benefit of the farmers.

A stronger regulation on Transnational Corporations (TNCs) is highly recommended in the Post Washington Consensus. The Washington Consensus that we have today is not driven in the aspiration to spread global development but to nurture and provide the channel for its national corporations to grow. Transnational Corporations, as seen by the Washington Consensus, is suggested as a compatible “partner” in development. This is because TNCs are a great source of capital investments that creates jobs for the hosting country. By being able to attract large foreign investors, countries are hoping to gain technological advancements in exchange for their natural resources and their low wage rate. Transnational Corporations is also a contributive factor in adopting ISI strategy because with their high level of production, local producers can learn how to manage their own production in a more efficient way.

However, TNCs are obstructive in eradicating poverty and development in the hosting country. They are protected extensively above the need of the national government. The Washington Consensus have granted them with rights of “extortions,” or perils to future returns in investment that make countries reluctant to enforce laws or policies that are in their best interest. Transnational Corporations do not contribute to any revenue for the country because they are given “packages,” such as tax benefit that could have been useful for public investment. The Post Washington Consensus, the revised “Washington Consensus,” must limit the power of TNCs because they are likely to engage in price transferring, an accounting practice that hides TNC’s real income from taxes, where investments are sent abroad as capital flight instead of having any effect to the hosting country. PWC must not give immunity to TNCs on environmental laws. There have been many instances that the activity conducted by TNCs are hurting and destroying the health of the local community. Local communities that have been dependent on their land for survival are being threatened to move out, like many indigenous communities in Latin America. Their rights as inhabitants are not respected in a way where TNCs claim of resources are equivalent as those of the inhabitants.

In the IMF’s perspectives, developing countries are over spending in the public sector. This is not completely true; in fact the reversed must be supported. IMF conditionality restricts monetary supply that could have been used better for distributing loans and credit for domestic producers. And in terms of wage rate, the IMF strongly supports wage repression in order to provide private producers to produce more cheaply for a better profit. IMF once again made the assumption that a country can easily adopt a strategy and be successful without having a strong private sector that can efficiently promote competition. IMF conditionality is evident to have an effect in the short run, but in the long run, devaluation of national currency will only increase imports rather than exports.

Finally, in addition to these recommendations, the willingness of the PWC to cooperate is still the root to development. If the PWC can actually adopt alternative policy options besides being obsessed with their neo-liberal approach, perhaps democratic procedures and new agendas can be factual. The Washington Consensus is engaged in a “shotgun wedding” strategy where national policies are forced to be adopted. This halts development because countries have different circumstances; one policy approach does not guarantee the success of alleviating poverty and income inequality everywhere in the world.

The level of participation in the IMF and the Bank must be transparent. There should not be any “secretive” meetings, such as “mini-ministerial” which only invite some countries and ignore the rest in negotiating trade agreements. In addition, the international institutions need to guarantee information accessibility. Meeting schedule and information are sometimes restricted and are not shared to others unless countries are sharing a common interest. One of the most prominent components in the PWC is transparent dialogues between countries before any policy implementation. Without any dialogue before hand, it allows us to see only one side of the problem. Whereby with a dialogue, developing countries can decide what is best rather than having their interest “decided” by those that are economically dominant.

Barriers to the Post Washington Consensus

The new recommendations that we have seen so far are obviously challenging in many respect. It takes a whole system to alter in order to adopt such strategy. Many economist and scholars have argued intensively for the changes in the agenda but as we critically analyze the important elements that ought to be included in the PWC, there are still limitations to how far these policies can actually be implemented. Neo-liberalism is still the mainstream ideology among the developed countries. As long as the developed countries are still economically dominant, poor countries do not have the choice but to agree on the conditions and prerequisites in obtaining loans for their people. Developed countries are also reluctant to adopt alternative or heterodox policies because such approach is the nemesis of their economic system. By siding with the needs of the developing countries, it has a substantial economic cost to the developed countries. If poor countries are given the resources to grow and develop their economy, there are chances that these countries can somehow be among some of the most powerful countries in the world. This implies that by giving them the chance to develop and compete, world resources and globalization phenomenon (cheap labor) will have to be shared. Therefore, the market will no longer be in the advantage of the center.

The evolution of politics can also be illustrated in our Post Washington Consensus discussion. In politics today, it is no longer the relationship between a political candidate and the people but there also exist the influence from businesses and interest groups that are intensely lobbying politicians in exchange for a law that is in their favor. This sort of practice does not come into surprise in the Washington Consensus. Transnational Corporations are constantly lobbying and colluding in the World Trade Organization to acquire access and immunities in the international community. It is rather ironic that the concept of “rent-seeking” that is regarded as hazardous to competition and the efficiency of market by neo-liberals are perceived as valuable in this context.

There are certainly obstacles in spreading the benefit of pro-poor development. Those in power within the international institutions will attain their agenda to maintain their share of resources, the same as how those politicians in the developing countries will attain their power by opening up to undemocratic participation. Such level of transparency and openness by giving others the chance to rise is the ultimate application to the Post Washington Consensus. International institutions such as the Bretton Woods are still going to carry out the duty of the Post Washington Consensus. Even if policies have been changed for the better, there are still chances where the PWC will appear to change the agenda, but in reality keep its original neo-liberalism agenda will probably be the enduring policy.

In the journey to development, we have illustrated that neo-liberalism policy is not an efficient ideology for developing countries, at least not yet. We have seen that neo-liberalism that is adopted by the Washington Consensus is weak in achieving growth, poverty eradication, and employment. It is also ironic that the Washington Consensus has not shown any positive affects in its orthodox approach. Overall growth and Income equality is still below than anticipated. In shaping the Post Washington Consensus, there is the need for a greater cooperation in terms of loaning system and allowing developing countries to have autonomy to structuralize its economy. The Post Washington Consensus envisaged a long-term goal policy. By investing in institutions and public investment such as education, health related issues, irrigation, roads, damps, and infrastructure; it will empower the institutions to create market access for its people. In addition to what has been framed by Terry McKinley’s Post Washington Consensus and Onis’ Consensus, there are also several factors that countries must concentrate on, such as adopting the ISI strategy which have been proven to be revolutionary in its own way. It proved itself to the rest of the world that it was able to succeed by “swimming against the tide.” However, as promising as it may sound, the establishment of the PWC is still unsure. There are still undemocratic practices and the lack of transparency within the institutions, where the embracement of such policy in the developed world as a movement in remedying the effects of globalization is still a mind game in the political system.

Economic policies are certainly not the only determinant to development, there is also politics involved. The political relationships between countries do reflect how aid, loan, and international support are delivered. Some countries that are not politically “friendly,” will probably end up in the worst position; like Cuba and North Korea where political ideology become the barrier to trade. For future discourse in development, there is the need to understand the relationship between politics and economic policies. Which one of these comes first or which one of these shows more prominent effect in stimulating confidence and future expectation of a country. In addition, at what time of the political turmoil should economic development in eradicating poverty, unemployment, and income inequality become the focus? Or should there be a local movements or resistance in triggering economic development?

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According to Ngaire Woods, international organizations such as the IMF and the World Bank were created primarily to support and enforce policy that is in the United States’ best interest. Woods also asserts that the US involvement with these institutions is a strategy to impose US foreign policy without being conspicuous and offensive to the rest of the world (Woods, 2003). There are several components of why the US is exceedingly influential in these institutions. Woods described four different direct and indirect approaches by the US which are: core budget, use of resources, staffing and management, and finally representation and deliberative functions.

The US privileges within the institutions are primarily due to the United States’ massive contribution to these agencies. Their contributions are as high as 17.33% to the IMF and 16.98% to the World Bank. These contributions grant the United States some degree of autonomy or superiority in deciding what they think is best for the rest of the world. If countries try to outbid the United States with a substantial amount of contribution, the US makes sure that by placing US officials within the institutions, policies that are being implemented will not be in the disadvantage of the US. Any policy that is passed in the institutions must have the United States approval. For example, officials from the US Treasury are placed to devise policies towards the IMF and State officials are placed to give advice and input to the World Bank. The role of the US Treasury and State to these institutions is then pressured and overshadowed by Congress to make sure that the preferences that are mobilized by the Treasury and the State Department have a positive outcome for the US overall. This type of check-and-balance within the US government in overseeing international institutions makes the US an effective player in the international community.

A considerable contribution results in a substantial amount of control. The World Bank does not have to rely on its members to get loans. They can issue AAA rated bonds to companies and countries that are willing to participate. In return, countries and companies that lend the World Bank at a lowest rate in the market are guaranteed some sovereignty within the institution. Furthermore, the US is also able to pressure the IMF and the World Bank by not contributing enough to the budget proposal set forth by the IMF or the International Development Association (IDA), unless their interest is being prioritized. The IDA, which gives loans to poor countries at an extremely high rate of return, opens up a new channel for wealthy countries to have influence over the World Bank. The US itself contributes 20.86% alone to the IDA, which gives the US the power to watch over the budget. The threat of not contributing is further supported by an IDA policy called “pro rata provision,” whereby other countries can also reduce their contributions in proportion to the reduction made by the US. Thus, if the US withdraws fund along with others, poor countries are left with less financial assistance. That can obstruct development in their country. They will have to agree with any outcome decided by the rich countries even if it is going to hurt them in the long run.

The IMF and the World Bank are engaged in lending to countries only if they country cooperates fully with the US. According to the World Bank’s Articles of Agreement, the qualifications to receive loans are determined by the performance of the poorer country’s economy. However, there has been a historical pattern of US lending decisions which have heavily leaned towards a political behavior that rewards those that give benefits to the US and punishes those that do not. For instance in Indonesia, the World Bank began a very close relationship with Indonesia despite the country’s intense level of corruption and its human rights violations. In addition, many loans were also given out to many countries in Eastern Europe during the Cold War to stop the USSR’s influence. With these examples, it is apparent that many of the decisions and motivations were driven to promote an interest that benefited the US.

The United States’ influence on the IMF and the World Bank is also mobilized by how the staff is managed within the institutions. The employment of officials is not equally diverse in terms of national origin. Though, employees will be allowed to work for these agencies from other countries, the distribution of such employment remains favorable to English speaking Western nations such as the US, Canada, UK, and Australia. Thirty-five out of fifty-four officials have originated from these major developed countries. In addition, 90% of the Ph.D.’s in the institutions are also obtained in the US and Canada. Since developed nations are the majority, their policy will adopt an approach that is rational and relevant to them while leaving behind inputs coming from many developing countries. Because inputs are restricted and outweighed by many developed Western countries, many poor nations are incapable in receiving the right assistance and strategy that can help advance their country.

Inequality in representation within the institutions is also an example of how US’ influence is mobilized. Executive boards in both the IMF and the World Bank exist to grant representation for each member. However, not all members are equally represented. Many wealthy counties have their own executive director, while many poorer countries only have one executive director that represents them as a group. Having an equal representation in the executive board is extremely crucial. Every decisions voted by all member states will further be reviewed in the executive board. Since every major decision must be approved by these executive directors, poorer countries that are less represented will not be able to exercise the same privileges as everyone else. Obviously, the United States does not control the executive board, but the US can “garner” support from these executive directors that can sum up as majority vote within the executive board. The role of an “Interlocutor” is also another factor of how influence is exercised in these institutions. “Interlocutor” is a term that describes someone who is very influential in a country or any governing bodies. If an interlocutor of a nation is not able to create a relationship with the IMF, it can affect the way the institution treats that country when help is needed. The lack of these representations limits the voice of the poor countries that depend heavily on these institutions for guidance in managing their economy.

When poorer countries seek for advice and guidance to better their economy, they no longer can depend exclusively on international institutions such as the IMF and the World Bank. The structure of these international organizations has been controlled and influenced strongly by the US. By being able to speak at every issue and being able to put government officials in the organizations, the US can assure that their interest is being prioritized. Imbalances such as these are the cause of the inequality and the injustice that halts the process of development in poorer countries and the promotion of humanitarian causes.

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