Tuesday, 3 November 2009

Will Islam’s ‘Scarface’ (Tony Montana) Please Make Himself Known to the Taliban?

The world was awash with narcotics in the 1980s. The drugs business was certainly larger than any multi-national business of the time. Many Latin American states were known as 'narco-states' with regimes dependent on the mercy of drug lords and organized crimes.

Today, the world is awash with terrorists and terrorist networks. The Medellin Cartel has disappeared but Al-Qaeeda and its affiliates have ably assumed their place.
My own birthplace, Pakistan, is fighting a brutal struggle against Islamic militancy. In an embarrassment to Muslims, Islam is used to justify some abhorrent acts. Women are flogged for working or interacting with men. Men are forced to grow beards. Suicide, one of biggest sins in Islamic theology, is a gruesome weapon deployed against innocents.
I can go on but, undoubtedly, you have seen and heard enough on the daily news. Sadly, it is a good day when Pakistan is not in the news.
In the past, Islam has had problems with heretical sects who have used violence to try and overthrow the prevailing political system. The most famous being the Hashashin group within Shia Islam. The group used assassination and other covert forms of violence to pursue their political aims.
More recently, brutal insurgencies were fought against Islamic militants in Algeria and Egypt. It took years before the violence was brought under control by both regimes.
Like today's militant Islam, whether found in North Africa or in South Asia, the movement based itself on a particular theological philosophy. Al-Qaeeda's roots lie with the Egyptian Muslim Brotherhood organization while the Taliban intellectual underpinning can be traced to Wahabism. A version of Islam practiced in Saudi Arabia.
By contrast, drug dealers are mercenaries. They are in the business only for the money. Make the risks higher and the profits lower and most dealers will move away from drug dealing into other occupations.
It is the warped intellectual justification which gives Islamic militancy the resilience to battle Islamic modernism and create the mayhem we see all around us. It is in the theological sphere that the Islamic world is losing the battle.
Some of us may remember the Brian de Palma and Oliver Stone cult classic movie, Scarface. Scarface was the 'good, bad guy,' a drug dealer with a conscience.
Towards the end of the movie, there is a pivotal scene where Scarface refuses to follow through with a political assassination because the intended target's young child will also fall victim to the car bomb. Scarface's failure to kill precipitates a fatal war with a rival dealer.

Pakistan's Federally Administered Tribal Areas (FATA) on the border with Afghanistan. Parts of FATA are heavily infiltrated by the Taliban

Today's Islamic militants have no such conscience. The recent attack at Meena Bazaar in Peshawar specifically targeted women and children – the main patrons of the bazaar.
Many in Pakistan yearn for the days when the international heroin trade flowed through Karachi's port. Drug dealers have a conscience. Religious bigots spawned by Al Qaeeda's philosophy have no limits and even fewer scruples.
They just don't make criminals like they did in the past!

Monday, 2 November 2009

The Modern Saver: a Trader, Speculator and Investor Simultaneously!

The modern individual consumes Colgate soap, Unilever shampoo, Ikea furniture, Toyota cars and investment products from their local bank. Ironically, many consumers spend more time selecting their shampoo than selecting their financial services provider.

The new economy has given savers umpteen products through which to lose their wealth. Twenty years ago savers left their money in bank accounts. Mutual funds, stocks and bonds were the preserve of the sophisticated and wealthy investor.
Retirement planning was not necessary. Children were expected to do their filial duty and take care of their parents. Employers made the relevant pension arrangements for their employees in return for serving the same organization their entire working life.
Times have changed.
Singaporeans are among the wealthiest people on the planet, at least on paper. They also have innumerable products available to absorb their savings. Many banks want a share of their wallet and are packaging ever more sophisticated products to entice savers.
One can grow wealth by investing in stocks, but only through patience and common sense. Millionaires are not created overnight by the stock exchange. Do not believe those who tell you otherwise. They will one day lose their fortune, declare bankruptcy or remain in debt for the rest of their life (all due to greed ).
There is no such thing as a 'get rich quick' scheme only the 'Sunshine Empire' type options!
Cash should be treated like any other valuable possession. That will minimize the chances of succumbing to greed. No analyst is a sage and none can tell you with any certainty where any market will be in 6-12 or even 3 years hence.
That is, unless you believe in fortune tellers.  
Consider the performance of the New York Stock Exchange last week. Up 2% on Thursday and down 2% on Friday – did the economy really change that much in one day? No, but new information became available. Information which no person could have predicted with accuracy and certainly none could have determined how millions of global investors will react upon receiving the new information.
Buy your investments with uncertainty in mind. Uncertainty, positive and negative, is the only certainty. Prepare a disciplined financial plan and stick with it. That is the best we can do. Speculate or 'play' only with money that you are prepared to lose. Keep the rest of your savings safe.
Suppress the trader and speculator within you will achieve better results as an investor.

The global financial system came close to collapse during the current economic crisis

As for trusting financial professionals, do so at your own peril. If finance professionals were graded on the overall health of the global financial system most will surely have failed!

Friday, 30 October 2009

Singapore: Progress, History and the Wet Market Controversy

When a nation is just 45 years old then some of the oddest pieces of real estate become national treasures. Singaporeans have been indulging in some heated debate about whether several existing wet markets should be preserved or demolished to make way for air conditioned supermarket type markets.

A wet market is an open air market where fresh produce, including vegetables, fruit, poultry, fish and even livestock are sold. The floors are regularly hosed down with water. Hence the term 'wet market.'
The debate to turn the traditional markets into modern air conditioned centres is often couched in terms of progress and jobs. After all, the newer style of market fits in well with Singapore's ultra-modern image, the home of electronic road pricing and e-government. Arguments have also been made about family businesses losing their livelihood to 'Wal-Mart' style progress.
In 2004, Singapore sacrificed it old National Library building in the name of progress. That caused an outcry, rare in the city-state at the time. The dissent was unable to affect the outcome. The red brick national library building is no longer standing. Policy makers and urban planners won the day.
Fast forward to 2009 and the wet markets story has a similar plot – on the surface.
Dig deeper and there are two crucial differences. The land is not required for 'rezoning' by the state to make way for projects of 'national importance.' Secondly, the popular discontent seems to be louder in this instance. (A tad ironical as the National Library building is conceivably more important national heritage.)
The real issue at stake in the controversy is not the loss of jobs. At its heart, the matter is about Singapore's heritage and an attempt to define Singaporean history. Do we want the next generation of Singaporeans to have the 'wet market' experience or is it passé in ultra-chic Singapore?

History is preserved not only in museums but also in the streets

As such, the wet market controversy brings to light the conflict between modernity and tradition. What constitutes modern Singapore's heritage and how is that heritage protected? Of course, there is no definitive answer but some 'top down' protection of historic cultural traditions will help until a greater national consciousness develops a consensus answer.
As for the wet markets, maybe it is time the government designate a particular market as a protected site and ensure that it is not broken down to make way for progress. At the very least, we may give future students the chance to get out of school for a day under the pretext of visiting an important symbol of Singapore's history!
Wet markets: love 'em or hate 'em, they're an undeniably pungent part of Singapore's heritage. They're exactly as they sound – open-air markets that have perpetually wet floors for a variety of ice-melting, fish-cleaning, vegetable-washing reasons. They kind of smell, and they're not for everyone.

Thursday, 29 October 2009

Singapore’s Opposition Parties – Time for Some Backward Integration?

Is it any surprise that Singaporeans keep voting the People's Action Party (PAP) back into government at each general election? Even for those who may oppose the PAP there are no credible alternatives available.
The PAP has a demonstrated leadership track record which must surely make corporate giants like Warren Buffett or Jack Welch envious. The Little Red Dot's move from third world to first world is not a random event.
It was predicated on a motivated population guided by a first rate leadership.

After four decades in power the PAP is firmly entrenched within the state system. It is often difficult to differentiate between the state and its political leadership. Like any political party with an unbroken chain of governance, the PAP has perfected the ability to pursue 'self-preservation' politics.
One of the PAP's strategies is to invite in non-political or non-establishment members into the party. The party's history is replete with such examples. Some may see these individuals as 'sell outs.' Others see them as smart people who appreciate that in order to make a difference they must join the system. Only by working with the establishment in a responsible manner can they have a positive impact on society.
One result of the PAP policy has been to starve the opposition parties of much needed talent to grow their political franchises. The paucity of political capacity outside of the PAP has focused the opposition on a few dissenting personalities.
To be successful, political parties require more than just candidates and supporters willing to be jailed for the party cause. A research infrastructure supporting policy making is a necessary prerequisite. One may list many other such requirements.
All such infrastructure entails money and talent. Both factors are available in abundance to the PAP – controlling the levers of state attracts cash and people. The virtuous cycle perpetuates the existing system.

Singapore's opposition political parties face a formidable and entrenched foe in the People's Action Party

Singapore's opposition parties face many obstacles in their drive to win public support. One can sympathize with their plight. However, it is not apparent to the public that the opposition parties are serious in their efforts to create a viable alternative to the PAP.
That a senior member of the opposition Reform Party has a US arrest warrant issued in his name for allegedly supporting a foreign terrorist group (apparently the Tamil Tigers) will do nothing to help the opposition's moral authority with the general public.

Wednesday, 28 October 2009

Singapore – Penalize Passengers of Drink Driving Vehicles?

Driving under the influence of alcohol is an inconsiderate and selfish act. It is an abuse of freedoms and the honour code in a free society.
Unfortunately, anecdotal evidence suggests drink driving is fairly common in Singapore. It seems to be an accepted practice in Singapore. There is seldom any peer pressure from friends or colleagues to refrain from driving after a few drinks.
Singaporean public figures often set a bad example. In the last few years, many have been arrested for the offence.

Most drivers justify their behaviour by claiming that they are 'in control' despite their drinks. I have heard some drivers tell me that eating a slab of butter or drinking one cup of coffee and a twenty minute nap is sufficient for the effects of a night out to wear off!
Driving under the influence has consequences. In the event of accidents, it can destroy people's lives. Speak to any family member who has suffered due to an alcohol related driving accident and they will inform you of the tragic consequences of driving under the influence. Unfortunately, the cost is all too often borne by innocent victims and not by the intoxicated driver.
The Singapore Traffic Police asserts that drink driving is a serious problem. In 2008, there were 3,586 drink driving arrests while 235 individuals were injured and / or killed in drink driving accidents. The incidence of fatalities increased in 2008 versus 2007.
Responsible adults can play a valuable role in curbing the hazards of driving under the influence. The time honoured tradition of appointing a 'designated driver' for a night out is an easy solution.
Being tough with friends who are clearly over the alcohol limit by restraining them from driving is a trickier decision. Nevertheless, you may save your friend from a life long criminal record by being tough with them.

A more radical scheme is for the authorities to consider penalizing passengers in vehicles driven by persons above the legal alcohol limit. A criminal record may be too harsh but maybe a hefty fine for the passengers? It will certainly act as a deterrent to the anti-social vice of driving under the influence.
If a passenger can be fined for sitting in a car without fastening her seatbelt then why not implement a fine for a potentially more dangerous offense – abetting dangerous driving? We may be surprised to note how quickly such a penalty alters the behaviour of otherwise complacent Singaporeans.

Tuesday, 27 October 2009

Gulf Petrodollars – Buying More than Banks and Football Clubs!

It requires more than cash to create a lively arts scene. Few, however, will deny that money helps to kick start the process. That is exactly what the Gulf countries are attempting to do.

The United Arab Emirates (UAE) and Qatar are spending large amounts of cash in an attempt to establish themselves as regional arts hubs. It is unclear whether either or both will succeed.
Abu Dhabi, the capital of the UAE (and often overshadowed by its glamorous neighbour Dubai), has ambitious plans. The city entered into a 30 year agreement with the French Louvre museum in 2007. Under the terms of the deal Abu Dhabi is reputed to have agreed to pay approximately USD 1.2 for the exclusive use of the Louvre name, borrowing art works and management advice from the Paris museum.
Construction of Abu Dhabi's 24,000 square metres Louvre Museum began in May 2009. The museum is expected to open in 2012. Once the building is complete, the final cost is estimated to be in the range of USD 150 million.
The museum is part of Abu Dhabi's master plan to develop itself as a cultural and tourism center. The USD 27 billion plan includes other museums and attractions, including the Guggenheim Museum and an annual Abu Dhabi International Film Festival.
Abu Dhabi is not alone is channelling its petrodollars into 'buying' culture. Qatar made a splash on the scene last year with the inauguration of its Museum of Islamic Art. The museum has an area of 45,000 square metres and was designed by architect Leoh Ming Pei to be an iconic structure. The museum sits on the edge of Doha's harbour.

The Corniche in Doha (Qatar) with the Museum of Islamic Art building on the left

Like Abu Dhabi, Doha has also put itself forward for hosting an annual film festival. The Doha Tribeca Film Festival hosts the premier of the film Amelia on October 29. The 2009 Doha Festival is testing the waters with some fairly aggressive films, in the Gulf context. They include films about underground Iranian rock stars and frustrated Jewish men.
The Gulf countries have been successful in buying various forms of physical infrastructure in the last few decades. They are still building – the new Dubai metro was inaugurated only a few months ago. Whether culture and the arts are something one can purchase 'off the shelf' is a question yet to be answered.
It is unclear how the national conscience in the two countries will react to artists pushing the boundaries of free speech, especially where religious sensitivities are concerned. The question of a museum displaying nude portraits is just one among a host of other obvious ones.
Singapore started its journey down the arts road more than a decade ago. The effort includes the Esplanade, the Singapore Symphony Orchestra and a gradual loosening of the government's strict social mores in a conservative society. Even today Singapore's arts scene remains very much a work in progress.
Permitting homosexual themed plays and a performing centre (the Esplanade) are a necessary but not sufficient condition for a flourishing artistic sub-culture.
Many centuries ago a Moorish kingdom in Spain's Granada was a global cultural and artistic leader amongst its contemporaries. One can only hope that the petrodollars now flowing into the Gulf kingdoms will precipitate a similar cultural revival within the Islamic world.

Friday, 23 October 2009

Sweet as a ... Dessert Wine

I know there are red and white wines. I also know that port, sherry and some other 'after dinner' wines are, well, essentially wines.
I can pronounce the names of a few grapes. Cabernet, merlot, pinot noir and so on.

Some port wines have a beautiful ruby color

However, the bulk of my wine knowledge is made up on the spur of the moment! "This wine tastes rather fruity with a hint of chocolate – can you not taste the oak flavour? 2001 was a good year wasn't it?!"
Making things up and having the odd glass of wine helps to keep the creative juices flowing.
Having tried a Muscato sweet wine recently and being a lukewarm fan of Rieslings (I didn't make up the name) I thought the time to better understand dessert wines has arrived.
Among the best known of dessert wines are port. Like most dessert wines, port is a fortified wine. 
"Fortified wine is wine to which a distilled beverage (usually brandy) has been added. When added to wine before the fermentation process is complete, the alcohol in the distilled beverage kills the yeast and leaves residual sugar behind."
Port is a fortified, sweet red wine. It is made from grapes grown in a northern province of Portugal, the Douro Valley. It typically has an alcohol content of 20%.
Port is not made using brandy but a neutral grape spirit known as Aguardente (literally meaning firewater). It received its name from the seaport city of Porto, the city from where the wine was exported and marketed to the rest of the world.

There are many varieties of port. Below, I describe two varieties, 'Vintage Port' and 'Tawny.'
As the name implies, Vintage Ports are made from good vintages and bottled after a few years in a cask. Vintage Port generally requires ageing before it can be enjoyed.
Tawny port has been aged for a long time in wooden barrels. Generally, the longer Tawny is fermented the lighter it becomes. The Colheitas are an especially popular variety of Tawny Port in Portugal. Colheitas are often aged up to twenty years.
Port is a classic after dinner drink (combined with cheese) which is just as delicious on its own. I can't remember when I last had a glass of port but I am looking forward to my next glass – just so I can show off my 'genuine' knowledge of the drink to my friends!
PS - If you have any recommendations of particular port varieties or bottles please do share the specifics with the rest of us ... or any combination of food and port which is particularly enjoyable.
PPS – In future posts, I will examine Sherry and other dessert wines.