Category Archives: economics

by Joel | 12 April 2010 · 5:13 pm

“Indische” Indos and Theosophists in the Dutch East Indies

From: Being “Dutch” in the Indies: A History of Creolisation and Empire, 1500–1920, by Ulbe Bosma and Remco Raben, tr. by Wendie Shaffer (National U. Singapore Press, 2008), pp. 293-297:

The 20th century arrived in the Dutch East Indies accompanied by a chorus bewailing the growing number of children who had concubines as mothers. The prevailing tone was that many of these children did not merit the status of European. A commonly heard anecdote was that of the down-and-out soldier who, in exchange for a bottle of Dutch gin, acknowledged that he was the legitimate father of a child who had not a drop of Dutch blood. The newspaper Java-Bode reported the growing number of “degenerate Indos and complete hybrids” who were in fact natives but were entitled to call themselves European: “Without a doubt, such people must feel deeply dissatisfied with their lot.” These gloomy musings were, however, seldom based on more than anecdotal accounts and were certainly not founded upon systematic research. It was nothing new to hear of “immoral” goings-on in the army barracks, while concubinage and large families of pauperised (Indo-)Europeans were a familiar phenomenon. What was new were the growing complaints about the situation and the sombreness of their tone. Such attitudes became widespread at the end of the 19th century, when interest grew in matters such as genetic inheritance, Malthusian ideas about population control and the theme of ennobling the lower classes.

The fin de siècle Zeitgeist encouraged the notion of a moral decline of European society in the Indies. Colonial policy in the Indies had always tried to draw a clear distinction between European society and the natives. Until the close of the 19th century the emphasis had continually lain on reclaiming the stray sheep of the European flock and returning them to the fold of European culture and values. Bur now the idea arose that it might be better for them to remain in their native environment. This notion, born largely out of discussions on inheritance, race and degeneration, now buzzed on every side. The Java-Bode, which represented the conservative opinions of the more wealthy Batavian civil servants, used the word “hybrid” to highlight the problematic aspects of racial mixing. Understandably, this newspaper did not dispute the fact that there were large numbers of decent Indo-European families bringing up their children in a correct and seemly manner. But once the journalists got the bit between their teeth, they became carried away by polemics regarding degeneracy and childhood neglect. It only needed a tiny slip of the pen before they were fulminating about the stereotypical Indische family where the eternal ne’er-do-wells lazed around and never lifted a finger, convinced as they were from birth that to do manual work would debase them forever.

This caricature was not something new. A hundred years earlier, at the beginning of the 19th century, newcomers to the East Indies had written with shocked amazement about the lack of parental care, about the frequent beatings that children received, and about how their mothers carried on their peddling trades and spent their time playing cards instead of looking after their children. Around 1900 such commentaries became imbued with pseudo-scientific arguments on the topic of racial inferiority. Articles and reviews with scientific pretensions were published claiming to substantiate the stereotypical pictures of Indo-Europeans as people who were underhand, easily suspicious and quickly roused to anger. The widely held opinion in British colonies that when European populations became mixed with a native race they dissolved into native society also crept insidiously into Dutch (Indies) publications. Some suggested that several generations of mixed marriage resulted in infertility — although such an opinion would appear to be firmly disproved by the many large and flourishing Indo-European families. However, a conservative newspaper like Java-Bode could not be shaken from its conviction that social improvement — with all its biological connotations of crop or cattle improvement — was the same thing as opposing mixed marriages. In the Netherlands, newspapers were quite unabashed in stating that pauperism was the result of racial mixing. The word volbloed (pure-blood) began to appear in advertisements for domestic staff and personnel. Cynical remarks were heard to the effect that the elite corps of the Binnenlands Bestuur [Dept. of the Interior], in Dutch keurkorps, was turning into a coloured corps, Dutch kleurkorps. In short, with the arrival of the 20th century, the colonial discourse became strongly racialised.

It is tempting to think — although inaccurately — that Darwinism, then a fashionable ideology, was responsible for this racist thinking. Social Darwinism was widely accepted in Europe, but in the Indies it was the Spencerian theory of evolution that predominated. Herbert Spencer saw human ability as the product of social evolution, and not of biological selection. It proved a difficult task, however, to distinguish between inherited propensities and the effects of upbringing. The journalist Paul Daum, for instance, was a fervent Spencerian, yet in his novel published in 1890, titled “Ups” en “downs” in het Indische leven (“Ups” and “Downs” of Indische Life) — which recounts the downfall of the aristocratic planters’ family the Hoflands — he invokes heredity as a major element in the family’s decline. In his journalistic writing, however, he pleaded the cause of education as the driving force behind social advancement and the best possible cure for the ills assailing the European community in the Indies. City gardens, public parks, theatrical performances and concerts were surely more attractive ways of passing the time than cockfighting, tandakken (Javanese dancing) or Javanese wayang puppet theatres. Cultural paternalism of this nature encountered little opposition; indeed, it was applauded by the newspaper De Telefoon, which wrote in this context of “the improvement of destitute Europeans”.

All the complaints about the effects of mixing and the negative influences of an Indische lifestyle might almost make one forget that ever-growing numbers of Europeans in the Indies were now speaking Dutch, reading the paper, and writing letters to the editor on touchy topics. It was a recent development, for until well into the 19th century — even in wealthy families in the Indies — the lingua franca was not necessarily Dutch, but Malay. This appears, for instance, from a complaint made in 1887 by the education inspector about the poor level of Dutch among students at the HBS School, which was intended for children from the better circles. It was only in the closing years of the 19th century that Dutch began to be more widely used among Europeans. It first became the standard language at work and then moved into informal areas. In contrast to the much-quoted opinion of the education inspectors that in 1900 the majority of Indies-born European children at elementary school had a very poor command of Dutch, we find that at that time already 40 per cent of Europeans used Dutch in their everyday affairs.

The early 20th century also witnessed an alternative wave against the assumption that “Indische” meant “inferior”. While the terms “hybridity” and “Indische” when used in the colonial context both had negative overtones, the cultural avant-garde in the Netherlands and elsewhere in the Western world embraced the exotic. The artistic style of Jugendstil (art nouveau) made use of exotic shapes and designs. The artist Jan Toorop, born in Java in 1858, who was greatly celebrated in the Netherlands, exploited heavy symbolism borrowed from Javanese art and even transported this into his painted posters advertising salad dressing. For the colonial newcomers, belief in animism was superstitious, possibly even dangerous, nonsense, but in the Netherlands it was all the fashion to hold séances and make contact with the spirits of the dead. What might be described as an organic way of thinking, most powerfully expressed through the eclectic and unrestrained images of Jugendstil, flourished among the elite of the Netherlands. The urge to reconcile opposites also reached the colonies and was to have an influential role in the rejection of conventional European tastes and values One manifestation was the growth of the Theosophical Society (founded in 1875) which acquired a considerable following in the first decades ot the 20th century. Before this, the Freemasons had been the chief instigators of dialogue between the various cultures and faiths in the colony. In about 1908 the Theosophists took over. In the Indies their champion was Dirk van Hinloopen Labberton, who taught Javanese at the training institute for the Binnenlands Bestuur in Batavia, the Willem III School. This eloquent, indeed loquacious, man was inspired by the great British Theosophist Annie Besant (1847–1938), who had left England for British India in 1893, declared the Indians to be her brothers and sisters, and become a tireless advocate of home rule for India. Theosophy also appealed to nationalist intellectuals in the East Indies, who applauded its approach of an Eastern counter-current against the materialism of the West.

Thus the world of the East Indies became aware of two contrasting, indeed opposing, voices. Since the rise of the Soeria Soemirat movement, the Indo-Europeans had spoken out as a separate group, although their plea was to be accepted as Europeans. In contrast, the notion ot an Indische domain as a space where European and Asian cultural influences were equally valid steadily gained ground. The politically tense period linked with the growth of nationalism served to reveal the tensions between the concept of “Indo-Europeans” — people who constituted a category of class and race within the wider group of “Europeans — and “Indische”, a term that could be applied to everything connected with the Dutch East Indies. On the one hand, the expression “Indo-European (or Indo) was used to apply to Europeans who had a part-Asian ancestry as opposed to pure-blood white. At the same time, the word Indische was used in contrast to Hollands (Netherlandish) but never to demarcate Europeans from Indonesian, Chinese or other population groups living in the East Indies. The “closed” character of the term “Indo-European” and its opposite, the boundless connotations of the word “Indische”, have dominated the political evolution of the Indies. During those years of budding nationalism the political pendulum swung continually between the struggle to establish a movement representing the more general Indische interests, and a Union of Indo-Europeans. Two Dutch words crystallised the differences: beweging (movement) stood for new and open, while bond (union) implied the formation of a group to defend one’s own interests. Everything born out of the Indische movement was to be absorbed almost unnoticed into Indonesian nationalism, while the notion of a union or brotherhood gained definitive form in 1919 in the Indo-Europeesch Verbond (IEV) — the Indo-European Union.

This final excerpt from this book touches on most of the major themes raised in this fascinating look at the history of the Dutch and their local allies in their East Indian colonies.

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by Joel | 10 April 2010 · 8:28 am

Democratization vs. Secularization

From: Forces of Fortune: The Rise of the New Muslim Middle Class and What It Will Mean for Our World, by Vali Nasr (Free Press, 2009), Kindle Loc. 3149-85:

More and more Muslims, especially those in the rising middle class, are going around the mosque and mufti network to take advantage of such choices for engaging with Islam available not only on television and radio but also in cyberspace. It is now possible to get guidance from on-the-air or online clerics and Islamic sages. Fatwas—which are religious decrees that clerics issue to clarify ambiguities in religious practice or to call on Muslims to follow a specific course of action—are a phone call or an email away. Sites such as IslamOnline, eFatwa.com, MuftiSays.com, askimam.com or, for Shias, Sistani.org offer lively discussion groups about such hot-button issues as how Muslims should interpret shariah law, how they ought to behave in the workplace, and whether the jihadist’s call to arms has any religious validity. Such websites command an impressive number of visitors, and this popular engagement is generating a democratization of sorts in Islam comparable to the rise of a more populist, and pious, breed of Christianity in the United States spurred on by the advent of televangelism.

Many of the popular new breed of media-savvy preachers blend tradition with modernity in their style as well as the substance of their messages, wearing Western attire rather than traditional robes, and speaking to their audiences in the personable, folksy manner of so many popular American preachers, making use of anecdotes about life’s daily struggles. That recipe has proven enormously popular. The strong appeal of this blending of modernity and Islam does not mean, however, that there is strong support for reform of Islam itself. The core of the appeal is in reassuring the Muslim masses that a modern way of life—the pursuit of material success, watching television, going out to nightclubs, listening to pop music—is in no way in conflict with Islam. Muslims can enjoy the fruits of modernity, they say, and be good Islamic believers at the same time. They are not, for the most part, championing the kind of more thoroughgoing reform of the faith that many in the West have advocated.

We should not kid ourselves: There is very little in the way of liberalizing reform going on in the Muslim world today. If anything, the phenomenon of rising demand for Islam is disproportionately raising the stock of conservative voices, though there surely are leaders of movements for democracy—and for women’s rights—who are building followings, as we’ll explore shortly. But by and large, while there is a great deal of engagement with new ways of delivering the message of Islam, there is not much interest in changing the message itself. For the most part, changing Islamic law or compromising on Islam’s values and worldview is not in the cards.

The attacks of 9/11 convinced many Americans that the problem with the Muslim world is that it is “unenlightened,” meaning it is pre-Renaissance in its mind-set. To catch up with modernity, Muslims must subject Islam to substantial change—Vatican II at least if not the Reformation tout court. But Westerners who are pinning their hopes for better relations with the region on an Islamic Reformation are going to be let down, at least in the near term. The paradox that can be hard to grasp is that the aspirations of the rising middle class have, by contrast, fueled the embrace of traditionalism—the Islamic world’s version of old-time religion. The prospect of launching oneself, one’s children, and one’s society out into the competitive, globalized economy has increased rather than decreased interest in tradition—religious tradition very much included—because of the belief that enduring sources of standards and values are needed to help navigate the currents of change [and not just among Muslims—J. (emphasis added)]. In time, the embrace of tradition may give way to a broader and more vigorous movement for reform, but Western efforts to promote reformism are unlikely to be the impetus. Indeed, they may be even counterproductive, feeding fears that the West wants to subvert Islam.

Many Western observers do not want to hear this. They remain preoccupied with locating the right Islamic reformer, someone who can slingshot Islam onto the fast track toward Reformation and Enlightenment. Why is such a reformer, like Samuel Beckett’s Godot, not showing up? Is reform only a matter of time, or is the West wrong to assume that the Muslim world will follow the same historical trajectory that unfolded in the West when capitalism and the scientific revolution forced change on Christianity?

Those advocating a Protestant future for Islam dwell little on the facts that early-modern Christian reformers were hardly liberal or tolerant—and that the Reformation unleashed a century and a half of bloody and even cataclysmic warfare. The Reformation in all its manifestations across Europe enforced narrow puritanical views with great violence.

Stalin, Mao, Pol Pot, and a great many other secular “rationalists” also enforced narrow puritanical views with violence far greater than that of any religious leaders in history. Nor was the post-Reformation transition to secular nationalism—especially the racialist nationalism of the Third Reich and Imperial Japan—accomplished without great violence, not just in wars between nations but in warfare and ethnic cleansing within national boundaries. If religious intolerance is the problem, secularist intolerance of religion is not the solution.

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by Joel | 18 March 2010 · 9:27 pm

Secularist Delusions in Revolutionary Iran

From: Forces of Fortune: The Rise of the New Muslim Middle Class and What It Will Mean for Our World, by Vali Nasr (Free Press, 2009), Kindle Loc. 2325-50, 2372-87:

The chasm between the Shah and his people had become glaringly obvious. What was less clear, but equally important, was a chasm between the communist and socialist visions for the country of the secular intellectual elite and the middle-class professionals and the hopes of the ardent lower-class followers of Khomeini. At least the chasm was misunderstood by the secularists. Among the secular agitators against the monarchy, clerics and their followers were widely regarded as harmless hangers-on to the great bandwagon of revolution. The secularists failed to perceive both Khomeini’s true intentions, and the surging momentum—and force in numbers—of the backing for him among the teeming urban and rural lower and working classes. The exploding numbers of urban factory workers had no infatuation with the ideologies that fascinated the middle class; Khomeini’s populist call for freeing Iran of dictatorship and spreading the oil wealth among the population is what appealed to them.

Azar Salamat studied at Berkeley in the late 1960s, and there joined radical Iranian students agitating against the Shah. When she went back to Iran in the late 1970s she was determined to do Lenin’s work, spreading the gospel of communism, organizing the working class, and setting Iran on the path to a communist revolution. With comrades in tow she would visit factories on the outskirts of Tehran looking for the proverbial proletarian laborers to convert to the cause. Workers on their lunch break listened politely to the Marxist harangue, humoring the young idealists, but understood little about dialectical materialism or capitalist exploitation. Communism was an alien tongue; so “when we turned to leave,” remembers Salamat of one telling lunchtime encounter, “one of them called to us, waving his hand. ‘Bye bye,’ he said in English, grinning with amusement. Nothing seemed to express more clearly the foreignness of our contingent to those workers whom we thought our natural allies.”

It was as if years of thinking secular thoughts and following secular ideologies had blinded these secular activists to reality. They correctly perceived that their support for Khomeini was vital in building widespread support for a revolution. Leftist jargon did not percolate down into society very well, and the revolution needed the support of larger numbers—of the poor and traditional Iranians who looked to the clergy for moral and political leadership. But the secularists failed to appreciate the intensity of Khomeni’s mission to establish an Islamic state, or to think through what would be in store for them if and when the clergy took power.

Secular revolutionaries stayed deliberately silent on the issues of Islamic government and Islamic law, hejab and women’s rights, and engaged in little discussion of how individual liberties, economic aspirations, and democratic goals could be affected by clerical rule. This absence of serious discussion in speeches, rallies, meetings, manifestoes, media, and everyday conversations is astonishing on reflection. So strong were their opposition to the Shah and their trust in the clergy—their conviction that the only issue that mattered was ridding Iran of the Shah—that they forgot all about those other hard-earned cultural freedoms that were so vital to their lives and future. When they did finally wake up to the reality of the revolution, it was too late….

With the revolution triumphant throngs of class warriors banded together in revolutionary committees and militias, and backing Khomeini’s cause, came out of slums and working-class neighborhoods, bazaars, and poorer quarters of the city to claim their prize. They were quick learners. None knew what dialectics of history was about or what Marx had penned in his Das Kapital. Khomeini had taught them it was not necessary to convert to Marxism to be a revolutionary; it was more important to make the revolution Islamic.

The middle-class pro-communist and pro-democracy protestors were shocked by the numbers of Khomeini’s forces and their zeal, and they quickly came to understand they were outgunned. The clergy drew large crowds to demonstrations day after day, and even larger numbers to voting booths for a national referendum and constituent assembly elections that were to decide the fate of the revolution. The middle class cringed at the takeover unfolding, and efforts were made to better organize and resist. But leftist and pro-democracy rallies were disrupted by club-wielding thugs, who also stormed Tehran University to purge it of leftists. When in March tens of thousands of middle-class women poured into the streets to demand freedom of dress, vigilante thugs attacked them. Pro-democracy forces formed a new party, the National Democratic Front, and at first large crowds showed up at its rallies. But after only a few confrontations with Khomeini’s stone-throwing and club-wielding mobs, the Front melted away.

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by Joel | 16 March 2010 · 7:44 pm

Downsides of Kemalism

From: Forces of Fortune: The Rise of the New Muslim Middle Class and What It Will Mean for Our World, by Vali Nasr (Free Press, 2009), Kindle Loc. 1902-23:

Looking back over the decades since Ataturk and Reza Shah ruled we can see that much in way of economic development and social change has been achieved in the Middle East. Kemalist presidents, kings, and generals unified countries, and built roads, modern school systems, and hospitals. But those authoritarian regimes also often lost their way, succumbing to the temptation of despotism, and in the process growing corrupt. The leviathans they created also stifled market forces and hindered true economic change.

Top-down modernization had its limits. States can do things faster and more efficiently than markets, but only to get things moving; they are notoriously bad at managing economies once they are out of the gate. Kemalist states did not know when and how to stop growing, and that was their undoing. Unchecked by parliaments and unaccountable to the people, the Kemalist states have lived up to the saying: “Power tends to corrupt, and absolute power corrupts absolutely.” Kemalism never had a problem garnering support in the West. Defenders of Kemalism, such as the historian Bernard Lewis, had hoped that by promoting secularism and modernity the state would serve as handmaiden of democracy, believing that modernity must come before democracy, especially given Islam’s strong hold on the structures of power, and the hearts and minds of the populace. Democracy would have to follow dictatorship.

But by the 1970s, Kemalism was running aground everywhere. The state remained imposing, but its modernizing edge was gone. The juggernaut of swift reform, secularism, and rapid change had ground to a halt. Accolades for the state and trust in its ability to transform society and economy had given place to widespread cynicism and doubt among the populace. In the Arab world modernizing states became platforms for the dynastic machinations of strongman presidents; their best-functioning institutions—impressive in their efficiency—became their dreaded mukhabarat, intelligence and security services.

One of Kemalism’s legacies is pent-up rage among the lower classes, to whom so few of the economic benefits flowed, and who greatly resented the assault on Islam. This pent-up rage has in time inflicted much travail on the region—as well as on the West. It was the driving force that tipped the balance of power toward fundamentalism in the Iranian Revolution, and it has been the fuel driving the support around the region for Islamic extremism. Crucial to Kemalism’s failure to generate more robust economic growth, and to distribute economic benefits more equitably, was the manner in which it bred a highly dependent, rather than entrepreneurial, middle class.

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by Joel | 6 March 2010 · 3:41 pm

Ahmadinejadonomics

From: Forces of Fortune: The Rise of the New Muslim Middle Class and What It Will Mean for Our World, by Vali Nasr (Free Press, 2009), Kindle Loc. 1345-1405 (reviewed here):

There is no question that Ahmadinejad has been the biggest individual beneficiary so far of the regime’s crackdown on reform. The fuel behind his electoral victories, and the reason for his appeal to the Supreme Leader, was his raging populist anger that the benefits of the economic reforms had not made their way down to the lower classes. During the 2005 campaign, he said little about the thorny nuclear issue and even less about religion and cultural freedoms. Instead he railed against corruption and the suspect wealth of clerics (including most famously Rafsanjani, who was running against him). Ahmadinejad vowed to halt privatization while protecting the consumer subsidies, price controls, and labor laws that were popular with those on the lower rungs of the socioeconomic ladder. Asked about his intentions regarding women’s rights, the aspiring candidate said: “People think a return to revolutionary values is only a matter of wearing the headscarf. The country’s true problem is employment and housing, not what to wear.”

When he became president, Ahmadinejad followed through with sound and fury in clamping down on the private sector. He shoved aside the normal economic-policy agencies and put monetary, budget, and fiscal matters under the president’s office. He then used that control to print money with no regard for the inflationary consequences. Iran’s money supply soon ballooned by a staggering 40 percent. His office also used its discretionary authority over planning and budgets to hand out contracts large and small to allies and favorites. A series of central bank governors resigned in protest—the last to go accused the president of mismanagement and plundering bank reserves.

To combat the growing problems Ahmadinejad proposed price controls as well as tightening the regulation of banking and credit markets. He even mused aloud about the benefits of abolishing interest (which despite all the talk of Islam’s ban on usury has remained the foundation of banking in the Islamic Republic), in the end settling for rates a good 10 and 15 points below the rate of inflation. Those who could withdrew their savings and bought real estate at home or abroad; those who could not saw their money dwindle amid Ahmadinejad’s flood of devalued currency. Salaried workers and pensioners suffered most. Ahmadinejad cared little if he was scaring businessmen into sending billions out of the country. At one point, he said that Iran’s economic problems would go away if a few people from the stock market could be stood up in front of a firing squad. The economic sanctions that his wild rhetoric helped to attract seemed to concern him even less. Capital investment, especially in manufacturing, dried up. Production fell, and by 2008 many factories were working at less than half their capacity. The money that was flowing into land speculation and property development was causing higher real-estate prices and construction costs—the latter dealing an especially heavy blow to a country that desperately needs to build up its basic infrastructure.

Ahmadinejad flaunted his lack of concern with economic planning and numbers; to him inflation and unemployment were alien concepts. He once told a reporter that he got his economic news from his neighborhood butcher (when that butcher too complained about inflation to a newspaper, Ahmadinejad closed the paper). Ahmadinejad’s game was raw populism. Why not bribe the poor for their support when there are so many more of them than there are of those wealthy Iranians who live in prosperous enclaves and depend on the private sector? He almost tripled government spending from $15 billion to $40 billion. Everywhere he traveled he promised public projects, and then decided to do more, to take wads of cash and checks to rallies and distribute them among well-wishers. Pensioners may have had a hard time making ends meet, businessmen may have faced a credit crunch, but all the poor needed to do to get a home loan was to write to the president’s office.

The steady rise in oil prices between 2005 and the third quarter of 2008 made this populist spending spree affordable. With dollars from oil sales flooding in, Ahmadinejad could afford to focus on currying favor with the voting masses while putting off hard economic decisions, and the Supreme Leader could afford to stand by and watch as Iran’s president shredded his country’s economy. Ahmadinejad used government contracts funded by the oil windfall to bolster his favorite businessmen and grease the Revolutionary Guards, whose support was essential to his political survival. The private sector changed shape, breaking down into the president’s preferred insiders (who got the contracts, cheap loans, and government support), and everyone else. The high oil prices made it seem, to the undiscerning at least, as if Iran could afford a political strategy masquerading as an economic policy.

When oil prices were peaking in 2007–08, Iran brought in $250 billion in petroleum income. Yet by the time prices fell off the table as a credit crunch cooled the global economy drastically in the second half of 2008, there was no more than $25 billion (some estimates run as low as $9 billion) of this left in the country’s cash reserves. Where did all that money go? Not to growth-promoting investments, but to populist causes near and dear to Ahmadinejad. As 2008 came to a close, Iranians found themselves staring into an economic abyss. The official rate of inflation was 27 percent (the real rate is almost certainly higher). Unemployment ran far into double digits too, possibly as high as 35 percent (the government admits to 20 percent). Merchants and salaried workers complained, and labor unions took to protesting for higher wages. The poor began complaining that their government handouts were not going far enough, and wanted more. The exceptionally cold winter of 2007–08 and a drought the following summer had caused first a fuel shortage and then an electricity deficit (Iran relies on rivers and dams for a good portion of its electric power). The depth of unhappiness manifested itself in September 2008, when merchants shut down bazaars across Iran for three days to protest a new sales tax. Growing government spending under Ahmadinejad had made the country dependent on oil prices in the $90 range (Iran claims its budget assumes $37) to stay in the black, and no one could say when prices that high would return.

Such a reversal in economic fortunes can be a powerful impetus for regime change. When a period of boom in Southeast Asia ended in the Asian financial crisis of 1997, many governments came under pressure. Anwar Ibrahim led a serious but unsuccessful challenge against Prime Minister Mahathir in Malaysis, and in next-door Indonesia, the Suharto dictatorship unraveled. The global crisis of 2008 and the massive drop in oil prices that it brought have buffeted Iran—which relies on oil for 80 percent of it government revenues—and could well have far-reaching political consequences beyond the summer of 2009 protests.

The last time Iran went through a boom-to-bust ride on the oil rollercoaster, there was a revolution. That will not likely happen again, but the downturn could end the current detour down the blind alley of populism and spark renewed interest in economic reform, privatization, and a viable private sector. Government spending (including subsidies that equal 25 percent of annual GDP) are a drag on the economy. Falling oil revenues and mounting government expenditure leave little room for complacency. The government will have to tighten its belt, shrink in size, and look to the private sector to create jobs, generate tax revenue, and grow the economy; and that will require private sector–friendly policies.

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by Joel | 20 February 2010 · 7:51 am

Dutch Mennonite Industrial Pioneers in Java

From: Being “Dutch” in the Indies: A History of Creolisation and Empire, 1500–1920, by Ulbe Bosma and Remco Raben, tr. by Wendie Shaffer (National U. Singapore Press, 2008), pp. 125-126, 134:

The story of the [Karel] Holles and the [Eduard and Rudolf] Kerkhovens in Priangan would appear to bear little resemblance to that of the aristocratic lifestyle of the landed gentry of West Java or the leaseholders in the Principalities. In Dutch historiography they are described as hard-working Dutch Mennonites who started growing tea in primitive circumstances and were proud of their social involvement. Their style of entrepreneurship however, was not essentially different from that of the paternalistic rule of the powerful landowners of West Java or the leaseholders of the Principalities. The Holles and the Kerkhovens were, like the first generation of planters in the Principalities, forced to move between various cultures and lifestyles in order to acquire the necessary knowledge capital and labour force. Just as in the Principalities, contacts with a British trading house were crucial; in this case it was the firm of John Peer & Co. in Batavia. This firm introduced the Holles and their Kerkhoven nephews to tea cultivation in British India, which was at that time far more highly developed than in the Dutch East Indies.

Holle earned fame as an expert in the Sundanese language and as a promoter of local agriculture. He published many articles on both these subjects, and his brochures were translated into Javanese by the Wilkens and Winter families. In acknowledgment for his groundbreaking recommendations about rice cultivation and his contributions to the reform of government-directed coffee production in Priangan, in 1871 Holle was decorated with the title of Honorary Adviser for Native Affairs. An intriguing aspect of the Holle story is his well-known friendship with Muhammad Musa, chief penghulu (Islamic religious leader) of Garut, whose sister he was to marry. More mundane, but equally important, was the fact that without his knowledge of Sundanese, Holle would never have been able to grow a single row of tea bushes. Whereas in the Principalities (unpaid) labour of the Javanese peasantry was generally included, as it were, with the lease of land, in Priangan Holle had to recruit his workers himself. Hence he set up small shops and provided housing for his loyal employees — which included the women tea pickers. Incidentally, other landholders in West Java had already done the same thing. Like the legendary Major Jantji, Holle too created his own image; he was wont to wear a turban and flaunt precious rings on his fingers. In this way he demonstrated that — notwithstanding his simple lifestyle and approachability — he was also the tuan besar, the great lord. Although his business collapsed in the great crisis of 1884, the image of him as a benevolent landlord survived after his death, and a monument was unveiled in his memory This too, fitted into the tradition of the Indies, where similar monuments had been put up for other memorable landlords.

Such monuments suggest the specific manner in which certain landlords wished to be remembered in Sundanese history — that is, as development workers avant la lettre [i.e., before the term existed]….

The sugar barons of the 19th century have received scant applause from historians. They gained their wealth from exploiting slave labour (as in the Caribbean) or corvée labour (as in the Principalities). Easily won wealth turned them into bloated and reactionary bosses, a picture that continues to persist. Leaseholders are still seen as a curb on the development of modern production methods. But in fact, the Creole sugar planters in both the New World and the Old were usually forward looking and up-to-date with the latest technology of steam and steel. The planters and commercial entrepreneurs in Central Java who built a railroad track to transport goods to the coast had been preceded by the Cuban sugar producers. Both groups understood the political and technological signs of the times. In 1870 the leaseholders of the Principalities went ahead and founded the Indisch Landbouwgenootschap (Agricultural Society of the Indies), which had its headquarters in Surakarta and by 1874 already numbered 669 members throughout Java. It published its own newsletter run by Frederik Adriaan Enklaar van Lericke, an indigo planter in Surakarta. We shall meet him later in the role of a propagandist for agricultural colonies for the benefit of impoverished (Indo-)Europeans. The newspaper DeVorstenlanden started in 1870 in Surakarta, advocated the interests of the planters. It was no coincidence that these initiatives appeared at roughly the same time: they evidenced a growing self-awareness and the increasing role of science in agricultural industry.

I suppose one could make a similar case for the sugar barons of Hawai‘i—if they hadn’t taken over the government as well.

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by Joel | 7 February 2010 · 8:08 am

Trade Between Makassar and Arnhem Land

Last month, while watching Ten Canoes (via Netflix), a docudrama tale of traditional life among the Yolngu people of Arnhem Land in Australia’s far north (charmingly narrated by the familiar voice of David Gulpilil), I recognized two Malay loanwords in the dialog: balanda ‘white people’ and rupiah ‘money’. The former comes from the Malay word for the Dutch and other Europeans, Belanda < Hollanders. (A common Malay-language name for the long-nosed Proboscis monkey is monyet Belanda ‘Dutch monkey’.)

After hearing these loanwords, I thought, “Aha! Evidence of Malay contact with Australia during the Dutch colonial period.” But now I see that this contact has already been well documented.

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by Joel | 3 February 2010 · 9:21 pm

Extraterritoriality for Everyone

From: Being “Dutch” in the Indies: A History of Creolisation and Empire, 1500–1920, by Ulbe Bosma and Remco Raben, tr. by Wendie Shaffer (National U. Singapore Press, 2008), pp. 4-5:

Segregation and extra-territoriality — the principle that foreign merchants were subject to their own laws — had many advantages. The local ruler had to negotiate with only a few representatives rather than each individual trader. Maintaining law and order — especially when it had to do with family and inheritance law — could be left to the internal authority of the immigrant community. And the advantages were all too clear for the foreign merchants: they were able to continue living under their own laws. “Legal pluralism” — that is, different groups falling under different legal systems and authorities — was characteristic of the fragmented power relations in the cities and states of South and Southeast Asia. The highest authority was the king, but he was not all-powerful. He had to deal with courtiers, regional governors, religious leaders and the representatives of foreign merchants. Each one of these had their own followers, their own servants and their own slaves who remained outsidethe reach of the central ruler.

The distribution of political power was reflected in urban space. In Ayutthaya large communities of foreign merchants lived in ban (villages or districts) situated just outside the city walls. At the close of the 17th century we find mention of communities from Gujarat (Hindustanis), Coromandel (Moors), Pegu, Malacca (Malays), Makassar, Cochin-China (Vietnamese), China, Japan, Portugal, France and the Netherlands. Each of these communities had its own headman; the large Chinese community even had two. However, although in theory the ethnic groups seemed juridically and spatially segregated, daily reality was somewhat more complicated than the above might suggest. Foreigners and their descendants were not prevented from gaining access to the Siamese community. The extensive “Portuguese” settlement — outside the city walls and facing the Dutch trading post — was peopled by “a Portuguese race descended from black women”; in other words, Mestizos, children with a Portuguese father and a Siamese mother. In other communities, too, there was considerable mixing between travellers from abroad and local women, again resulting in children of mixed parentage.

The mixing went beyond family relations; some foreigners even attained high-ranking posts at court. At the end of the 17th century, for instance, the royal guard of Ayutthaya was composed of a couple of hundred Persians, while for three successive generations the chief minister (chaopraya) came from a Persian family, only to be followed by a Greek. Other first ministers were of Indian, Chinese and Mon descent. The king of Siam also employed Englishmen — for instance, as harbour master. Evidently, the king preferred to employ foreigners in key positions, since they did not command a large band of followers who might pose a threat to the throne. But their difference stopped there. Nowhere do we find the suggestion that these families behaved as foreigners. On the contrary, it seems that they adapted themselves to the culture and customs of the Ayutthaya court. They married into Siamese families and ultimately became totally assimilated.

Along the coast of the Malay peninsula and in the Indonesian archipelago, the pattern of segregation and mediation was essentially no different from that in Siam. The city of Malacca, which during the 15th century thrived on the expanding international trade and attracted many foreigners, appointed four syahbandar (harbour masters) to maintain contacts between the local government and various trading communities, and also to administer justice and act as military commanders in times of war. The syahbandar appointed from the Gujaratis of northwest India was described by the Portuguese traveller Tome Pires as “the most important of them all”. Then there was a syahbandar for the merchants from Coromandel, Bengal, Pegu and Pasai (in north Sumatra); one for the foreigners from Java, the Moluccas, Banda, Palembang, Borneo and Luzon; and, finally, one for the Chinese and other traders from the East.

In the 16th and 17th centuries, Ayutthaya and Malacca were among the largest cities in Southeast Asia. Travellers from Europe estimated the population of these places to be as large as 200,000 — although in reality the number would have been closer to 10,000. But whatever the actual figure, there is no doubt that these were bustling emporiums, where a foreigner was not an uncommon sight. There was a prevailing pattern of segregation, but we cannot say with any accuracy how strictly this was applied.

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by Joel | 26 December 2009 · 3:22 pm

Farmboy Seminarian on a Cattleboat to Poland, 1946

While organizing a bunch of old photos during last week’s visit to my 85-year-old father, I came across a small set I had never seen before of images from his oft-recounted trip delivering livestock to Poland in 1946. His voyage was on the S.S. Carroll Victory under the auspices of UNRRA, but he heard about the cattleboats from his Quaker contacts, who cooperated with the Church of the Brethren and Mennonites on what later evolved into Heifer International. My father was raised a Quaker, but later joined a Baptist church and spent the war years at the University of Richmond on a ministerial deferment. He graduated at the end of 1945, then enrolled in Southern Baptist Theological Seminary in Louisville, Kentucky, in February 1946.

The following is my father’s account, very lightly edited by me.

At the beginning of summer vacation in 1946 I heard about the need for volunteers to care for horses being sent to Poland by United Nations Relief and Rehabilitation Administration (UNRRA). The ships that transported the horses to Poland were called “cattleboats” but I do not remember any cattle on my boat. We did take baby chicks and horses. I had worked with mules as a boy but had little experience with horses. The chance to visit Europe and be paid for the trip rather than having to pay for it fascinated me as I really wanted to see other countries but couldn’t afford to travel. So, with three other seminary students I signed up for the trip. The ships were converted Liberty ships from WWII and were manned by members of the U.S. Merchant Marine. I was accepted as a “cattleman” and left Norfolk in June of 1946 on a boat with 800 horses and 3000 baby chicks. The horses were to be used for reconstruction and the chicks for supplying eggs for food in Poland which was devastated by Germany and Russia in World War II.

I had never traveled before on the ocean and was a real landlubber. The beginning of the trip was rather mild but the stench in the lower decks from horses and their excretion made for rather poor sailing conditions for one inexperienced in sea travel. I found that the more marked movements of the ship up and down were not as bad as the swaying motion from side to side. When I felt that I was going to get sick I would lie on my back and look up through the opening in the upper decks. If I could lie still and see the sky my stomach would settle down. Contrary to the reputation horses have for “horse sense,” I found them much less intelligent than mules. When a horse got sick and fell in its stall it would lie there and die. A mule would have struggled to its feet. About 30 horses died on the trip and had to be thrown overboard. For some reason which I do not remember (I probably volunteered) I was transferred to caring for baby chicks, which was more to my liking and more consistent with my experience. However, I found that chicks were even dumber than horses. They would trample each other to death as the boat rocked on the ocean, or they would drown themselves in the water troughs at the outer edges of the coops. I don’t know how many chicks we lost on the trip but I believe a goodly number managed to stay alive until the arrival in Poland. I watched with interest as the Polish men tried to handle the horses as they were lowered from the ship on to Polish soil. Their “horse sense” did not include the understanding of the Polish language and the commands they were given did not communicate well to them the desires of the handlers.

The environment on ship was anything but a churchly one. Of the 90 men on board very few were Christians and many if not most were misfits in society who were only on the trip for the month’s food and lodging and the $150 they would be paid for working on the way over to Poland. There were no responsibilities on the return trip. The four of us from the Seminary held services on Sundays. One young man played a guitar for the hymn singing and the four of us took turns preaching. The “congregation” was certainly different from any I had ever preached to before. In fact, the whole atmosphere on board ship was so foreign to anything I had ever experienced that I felt like I was in a foreign country even before we got to Poland. The food was not too bad but it was certainly not home cooking. We slept in bunks which had been built for sailors.

The trip to the English Channel took about eight days as I remember. The White Cliffs of Dover were the first sight of land that we had seen since we left the USA, and they were welcome sights. However, they offered no relief from the sea as we did not disembark in England. We could see land and cars and buildings as we slowly made our way through the almost placid English Channel, which was in a good mood that day. We approached the Kiel Canal soon and went through what was for me a fascinating experience of navigating the Canal. We could get a very good view of the north of Germany as we slowly made our way through the canal. I was taken by the beauty of the land. We went through Schleswig-Holstein where Holstein cattle grazed in immaculate pastures divided by rows of trees. In the land of my own childhood, trees were cut down on farmland and farms were not landscaped as in North Germany. The Germany I saw was vastly different from the pictures of bombed out cities on TV.

Poland was very different from Germany. We landed in Gdansk and the devastation wrought by Germany and Russia in World War II was evident everywhere we looked. We were in port about 4 days and were allowed to go ashore. On the way across the Atlantic we had been told that cigarettes were the best currency in Poland since none were available there. On ship we had been permitted to buy two cartons apiece on about three occasions. I did not smoke and did not intend to engage in blackmarket trading so I didn’t buy any. Several who asked me to buy some for them were angry when I refused. One of the Seminary students and I tried to maintain some appearance of the faith we professed while on ship and in Poland, but the two others bought cigarettes and went to Warsaw while we were in port. We had been strictly forbidden to go anywhere farther than we could return to the ship at night. The two fellow travelers were strongly reprimanded and were not given a recommendation to take another such UNRRA trip. My friend and I were highly recommended for another voyage but did not go again.

There was a redheaded boy from Franklin, Virginia, on board. I did not know him and was not drawn to get to know him. He tried to get me to go with him in Poland but his description of his planned exploits did not appeal to me. Before he left the ship he started drinking vodka and chasing it with water. Then, as he began to become inebriated, he drank water and chased it with vodka. He left the ship alone. It was not too long before some kind Polish natives brought him back to the ship dead drunk. He lay on the floor of the ship unconscious with flies attending him for most of the time we were in port. Another young man went ashore, visited a prostitute and came back and developed the “clap.” He was so drunk that I persuaded him to leave his money with me before he left again. He cursed but he gave me his money. Later he thanked me, for the suffering of venereal disease was bad enough for him without losing his money too.

We found out why they drank so much beer in Poland. Water was very scarce and what there was tasted awful. We were taken on a tour of Gdansk and as far as Gdynia. There was not much to see. We did visit a few very old church buildings. They were always located on scenic spots and were beautifully constructed. When we remarked to our obviously not very religious tour guide that the cathedrals were beautiful he said, “Yes, and cold.” They were indeed symbols of great architecture rather than ardent religion – as might be said of many church buildings in all lands and ages.

After two days I was ready to head for home. On our rather uneventful trip home we had much leisure time to think about what we had seen. There were only two incidents worthy of mention, at least the only ones that I remember, on our return trip. As we were our leaving the Kiel Canal beside another Liberty ship the captains made a bet as to who would get there first. The navigator on our ship took us a tenth of a percentage point off course and we lost. While we were changing courses near the end of the trip to get to Norfolk I was standing on the ship without a shirt on in the hot sun looking for land, and I got so sunburned that I could not bear to wear a shirt. When I arrived at my brother Bob’s and Bertha’s house with a month’s beard and no shirt on my red back Bertha did not recognize me and only my voice persuaded her to let me in.

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Filed under economics, family, Poland, religion, travel, U.S., war

by Joel | 25 November 2009 · 5:24 am

Lind on Patrician Do-gooder-ism vs. Populist Producerism

Old-style Democrat Michael Lind asks a timely question in a Salon essay entitled Can populism be liberal?

There remains the progressive wing of the Democratic Party, represented more in Congress than in Obama’s White House — and more in the House than in the Senate, a dully complacent millionaires’ club. Can congressional progressives compete with conservatives to channel popular outrage? Unfortunately, progressivism in the form in which it has evolved in the last generation does not resonate with populist producerism.

To begin with, most of the moral fervor of the contemporary center-left has been diverted from the issue of fair rewards for labor to the environmental movement. In theory, environmentalism ought to fit the populist narrative of defending shared goods against special interests. Indeed, clean air and water legislation and public parks and wilderness areas are broadly popular with working-class Americans, not least hunters and fishers. But many environmentalists insist that global warming must be combated not only by low-CO2 energy technology but also by radical lifestyle changes like switching from industrial farming to small-scale organic agriculture and moving from car-based suburbs and exurbs to deliberately “densified” cities with mass transit. Whether environmentalists propose to engineer this utopian social transformation by tax incentives or coercive laws, the campaign triggers the populist nightmare of arrogant social elites trying to dictate where and how ordinary people should live.

Even if it had not been eclipsed by moralistic lifestyle environmentalism, contemporary economic progressivism would be crippled by its own priorities. New Deal liberalism was primarily about jobs and wages, with benefits as an afterthought. Post-New Deal progressivism is primarily about benefits, with jobs and wages as an afterthought. This inversion of priorities is underlined by the agenda of the Democrats since the last election — universal healthcare coverage first, jobs later.

It is only in the post-New Deal era that universal healthcare has become the Holy Grail of the American center-left, rather than, say, full employment or a living wage. Sure, Democrats from Truman to Johnson sought universal healthcare, and Medicare for the elderly was a down payment for that goal. But the main concern of the New Dealers was providing economic growth with full employment, on the theory that if the economy is growing and workers have the bargaining power to obtain their fair share of the new wealth in the form of wages, you don’t need a vastly bigger welfare state. Having forgotten the New Deal’s emphasis on high-wage work, all too many of today’s progressives seem to have internalized the right’s caricature of FDR-to-LBJ liberalism as being primarily about redistribution from the rich to the poor.

This shift in emphasis is connected with the shift in the social base of the Democratic Party from the working class to an alliance of the wealthy, parts of the professional class and the poor. And progressive redistributionism also reflects the plutocratic social structure of the big cities that are now the Democratic base. Unlike the egalitarian farmer-labor liberalism that drew on the populist values of the small town and the immigrant neighborhood, metropolitan liberalism tends to define center-left politics not as self-help on the part of citizens but rather as charity for the disadvantaged carried out by affluent altruists. Tonight the fundraiser for endangered species; tomorrow the gala charity auction for poor children.

via RealClearPolitics

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