Friday, November 08, 2013

Kapok: Would be welfare state

For quite some time now there has been a staggering contrast between the capacity of Macao to generate an extraordinary amount of wealth and its inability to make good of that newly acquired affluence. The recurring symptom of that abysmal gap between riches and expenses has been felt by many in their day-to-day life: expectations regarding public services, whether directly operated by state agencies or conceded to private entities, and the promises of a “better quality of life” are increasingly and consistently frustrated. The execution of the 2012 government budget that is now under discussion in the second commission of the Legislative Assembly tells us that public accounts have managed to produce a surplus of a mind-blowing MOP90.9 billion! Should we really rejoice? 
If we look back at the 14 years passed since the handover, there has been no single year of public deficit. Surpluses have therefore been the rule, but starting in 2007 these excesses transformed into “mega surpluses”: that year alone, the public account surplus tripled compared to the previous year, reaching MOP30 billion, and government spending only reached 43% of government revenues. Five years later, in 2012, the surplus has again tripled and the government now spends only 37% of its revenues. 
By just adding up yearly surpluses, I came to realize that accumulated excesses since 2000 amounted to an astounding MOP343 billion, that means close to our 2012 GDP of MOP348 billion or more than six years of government expenditure at current level! As far as the report on the execution of the budget is concerned, financial reserves are indicated as being “only” in the amount of MOP100 billion (less than 30% of GDP and a bit less than two years government expenditures) at the end of 2012. 
If only part of the yearly surplus goes to the reserve (80% in 2012) and another part feeds the foreign exchange reserves (a total of MOP132 billion in 2012), one can then wonder why overall stocks are so low and whether the very lean profitability of such reserves really makes sense. Moreover, if financial reserves as a percentage of GDP appear to be well on par with Hong Kong, whereas Macao is supposed to have grown richer in relative terms, actual public spending is still lagging behind our neighboring SAR, where public expenditures now reach 20% of GDP against only 15.5% in Macao.
In the Index of Economic Freedom published yearly by the Heritage Foundation, an American conservative think-tank extremely free-market oriented, Hong Kong tops the list as the freest economy on the planet, followed by Singapore. Although I have strong reservations about the actual economic freedom of Hong Kong proper given that it is the one part in Asia that has made the word “tycoon” a household expression and brought to ultimate sophistication the oligopolistic nature of capitalism, it is nevertheless interesting to note that when it comes to macro-economic data, government expenditures as a percentage of GDP in Hong Kong and Singapore run higher than the tax burden as a percentage of GDP, whereas Macao, that ranks an honorable 26 in this index, clearly posts an inverted ratio: taxes as a percentage of GDP run at 34% in 2012, more than double the percentage of expenditures. 
If government expenditures are good for territories like Hong Kong and Singapore, why would not it be so for Macao? 
Furthermore, that inverted ratio between expenditures and taxation put Macao in a group of only four places in the world where such an imbalance exists, the three other places being Timor-Leste (166 in the ranking of 177 countries), Turkmenistan (169) and Eritrea (173), three countries characterized by widespread corruption, weak rule of law and crippled economic activity. Is that really fair to Macao? There is thus no doubt that the Macao government should spend more, but how and for what purposes should of course be opened to debate.

Published in Macau Daily Times, November 8 2013

Friday, October 25, 2013

Kapok: Under (tight) Scrutiny

On the very day newly elected legislators were taking their oath, several members of Macao Conscience, a political grouping created in 2009 that has been regularly staging civic happenings, openly challenging the government and denouncing by-and-large conflict of interests affecting Macao politics, took to the streets to directly question the “claim” that legislators are genuinely representing the interests of the Macao residents. At stake, the fact that 17 legislators out of 33, or 57% of them, are still either handpicked by the Chief Executive or returned by so-called “indirect elections” for which functional constituencies did not even bother to pay lip service to the idea of political competition, one of the requirements for an election to deserve its name. 
At the heart of their appeal for the Chief Executive to come up with an agenda for political reform that could lead to a universal franchise to elect the totality of the legislature lies the promise entrenched in article 68 of the Macao Basic Law that “a majority of the [Legislative Assembly’s] members shall be elected” as well as a UN Human Rights Committee recommendation issued last March stating that “Macao should consider taking all preparatory measures with a view to introducing universal and equal suffrage in conformity with the [International Covenant on Civil and Political Rights] as a matter of priority”. 
This group of a handful of demonstrators delivering their petition to the government’s headquarters was headed by none other than Jason Chao, president of the New Macao Association and unsuccessful candidate to the Assembly: if you cannot bring the fight “inside”, the least you can do is to continue carrying it “outside”.
Tight scrutiny of the legislators is the vocation trumpeted by the freshly launched website aptly entitled “Macao Legislators Supervision Station”: deploring the opacity of the workings of the Assembly, the website aims to offer a comprehensive track record of the voting behavior of each individual legislator, thus creating some kind of real-time accountability system by default. It also provides detailed information about the assets owned and positions occupied by each legislator as they appear in the recently advertised Declarations of Assets posted on the website of the Judicial Court of the Macao SAR
Additionally, one can find the complete contact details of each lawmaker, including postal address, website, Facebook account and email address, making it possible for any citizen to engage with his or her so-called representative(s). Unfortunately, only eleven law proposals and projects as well as resolutions and propositions of debate and hearings are for now taken into consideration, but more will be added in the future. Graphic and news flashes functionalities, again individualized, are still in the making, but the result of this illustrated data collection about our legislators is already pretty striking. There, one comes to realize the deep divide that exists between elected, selected and appointed legislators—the “rubber stamp” characterization of the two latter can truly be seen by a blind man! “King of the ballot box” Chan Meng Kam is on the one hand not shy at all in divulging his assets and yet his track record in the assembly shows that he has abstained or been absent 7 times out of 11—a populist with uncertain opinions? Such is not the case for Melinda Chan Mei Yi, the accessible lady of the people: she opposes or she approves, nothing short of a yes or no… but still, more on the side of the government!
Ultimately, even the new president of the Assembly, businessman turned politician Ho Iat Seng, as well as his deputy, trade unionist Lam Heong Sang, made very ostentatious declarations on the day of their inauguration that “supervision of the government’s actions” should definitely “be reinforced in the future”! Well, talking about conflict of interests, Mr Ho is also the only member from Macao sitting on the Standing Committee of the National People’s Congress, the one institution supposed to interpret the Basic Law in case of a dispute and if all else has failed when it comes to enjoying a “high degree of autonomy”… With the upcoming election of the Chief Executive in 2014, there should be more to scrutinize!

Published in Macau Daily Times on October 25 2013.

Friday, October 11, 2013

Kapok: Wasted Opportunity

Right before the start of the legislative campaign I was asked to give a talk about “what to expect” from the elections. I basically raised five questions and provided simple and yet straightforward answers. Can we expect a vast overhaul of the Assembly? Certainly not! Can we expect new faces? Not really, and yet… Can we expect a few surprises? Very few, and yet… Can we expect a change in style in the campaign? Most probably as “bottom” seats will be hard-fought. Can we expect a change in the future workings of the Assembly? Only marginally, given the highly expectable overall composition of the new legislature. One soon realizes that political predictions cannot go too wrong if one accommodates enough semantic flexibility to tolerate a plurality of interpretation in one’s own prediction, or to put it more simply, if one pays due tribute to the idea that “everything is in everything”—a trick fortunetellers are well aware of. And yet, somehow, one would prefer to be really wrong sometimes, thus letting the exciting components of true surprise kick in and the benefit of uncertainty, though not fully unrestrained, bring its fair share of excitement. 
For directly elected members of the Assembly, results—not necessarily the most desirable ones, one must admit—yield two main lessons. First, the Democrats are not the highest vote-getters in these kind of elections any more, and thus will have to reflect deeply on a strategy that merely favor opposing and confronting the government, its many shortcomings and its cronies. In a more affluent society, one in which the have-nots are getting wealthier even though not at the same pace as the happy few, demands have to be formulated more in terms of alternative and therefore in displaying a capacity to propose and not only to oppose—a perspective fully acknowledged and marginally put in practice by José Pereira Coutinho. During the campaign, all the candidates, including the pro-business ones who have their reasonable share of responsibility in tilting the balance towards their own narrowly defined interests, voiced out the many hardships endured by common folks, an hypocrisy that made the Democrats’ past farsighted claims clearly inaudible. Second, organizational capacity is everything, although it plays along very dissimilar fault lines: Chan Meng Kam’s highly improbable triple win derives from his deep resources, an ethnic community base, a real populist flair for empathizing with ordinary people, the well-advertised supposed achievements of the incumbent, and an open support given by the challengers (junkets, new casino licensees and second-circle traditional political families) to old traditional vested interests (the three big Macao clans). In the case of Mak Soi Kun, the second highest vote getter, the support from the mainland was decisive and he is definitely what comes closer to a pro-Beijing camp in Macao. Finally, traditional associations shifted their support from pro-union to neighborhood related lists, as if Kwan Tsui Hang’s independence of mind had to somehow be trimmed. But potent organizational capacity also produced positive results for José Pereira Coutinho’s list and even, to a lesser degree, for Melinda Chan. The question is for the Democrats and even Coutinho if he wants to pursue further his legally innovative and policy-oriented role: how can any organization continue to be relevant for the community without proper resources (self-generated, on loan or granted)? The only answer lies in a real law on political parties, a law that would allow for a transparent and substantial public financing of political organizations that manage to garner significant results during election time.
Ultimately, only a meaningful assembly, one that is fully elected will make it possible for corruption to be curtailed, real competition to occur and sophisticated policy alternatives to be proposed: in the meantime we are stuck with royal appointments of the rust-roof “big gun” Fong Chi Keong, a close associate of the Ho’s, and the clumsy debut of a tender Ma. On what ground? Business, as usual.

Published in Macau Daily Times, October 11th 2013


Friday, September 27, 2013

Kapok: NIMBY, Macao style

Back in November 2010, Chief Executive Chui Sai On’s intent was clear and the direction chosen unhindered: “Regarding the development of tourism products, after heeding public opinion, and conducting analyses and assessments, the Government proposes an underground mall at Sai Van Lake Square as a trial location for developing a souvenir shopping complex and night market. This will showcase Macao cuisine and delicacies, and will become an integrated tourism project, after upgrading the relevant facilities through an open bidding process.” Of course, not everything went as planned.
First, the initial consultation for the project of a Sai Van lake permanent night market only occurred in November 2011. In the meantime, due processes for “public consultations”, the new fad in benevolent and opinion-led governance in lieu of democratic procedures, had changed: one round of public consultation would not be enough anymore, and a second round taking into account the lessons learnt from the first one would have to be organized. In that particular case, we were lucky rules had changed and government agencies had been slow in putting Mr Chui’s candid words into practice. The first public consultation was not only a disaster, but also marred by irregularities and opacity. Depending on who was doing the counting, opinions gathered ranged from a few dozen up to a maximum of 180, and only 8 such opinions had disapproved of the plan… But these results, without further comments, were only made public in October 2012(!), whereas regulations for public consultations state that it should take no more than 180 days after completion of the process.
Dissent and protest — too bad for consensus building — were soon to be heard: residents from the area started petitioning; concerned groups dealing with environmental and livelihood issues went marching and cycling around the lake, and even business interests made it clear as early as November 2012 that the whole project was plain wrong, both in intent and sustainability. Interestingly enough, David Chow Kam Fai, husband of legislator Melinda Chan Mei Yi and Macau Legend Development chief executive, expressed in a long op-ed published in the very conservative Macau Daily News his doubts about the “free market” side of the “open bidding process” — being the CEO of Fisherman’s Wharf Investment Ltd. might have made Mr. Chow pretty perceptive of the issue lying beneath less than fair competition. In reality, apart from the Civic and Municipal Affairs Bureau that had been entrusted with the project, only one public figure openly continued to support the scheme: legislator Chan Chak Mo. Incidentally representing the cultural sector in the Assembly, but mostly his own interests as the executive director of restaurant operator Future Bright Holdings Ltd, Mo nonetheless finds time to be the president of the Association of Macao Restaurant Merchants, the main organizer of the yearly Food Festival since 2001 precisely set on the banks of the… Sai Van lake!
So, a second consultation round was organized from December 2012 to March 2013. The press had already echoed vociferous sessions held with the general public, and even raucous exchanges with associations convened in closed-door meetings, including the usually pro-government General Union of the Neighborhood Associations and the Federation of Trade Unions that had expressed either a resolute opposition or suggested a relocation and a downsizing of the whole plan. But the official results of that consultation that came out on September 19 surpassed all expectations. More than 1,100 opinions were collected and an additional survey was conducted over the phone by the University of Macao with 1,529 respondents to envision what kind of facilities could be developed around the lake: overall, the initial night market project freely inspired by Clark Quay in Singapore and Tamsui night market in northern Taiwan was rejected by more than 70% of the population, and if a good 60% of the people surveyed over the phone want more facilities, they believe these should be more in line with green paths and walking/jogging tracks. From the “positioning”, the project itself to the localization, all three were heavily rejected: could this be the start of a “Not-In-My-Backyard” movement, with Macanese characteristics?

Published in Macau Daily Times, September 27th 2013

Friday, September 13, 2013

Kapok: What is to be done?

Reflecting on the past two weeks of intense debate and campaigning for the 14 seats that are up for grabs in the Legislative Assembly on September 15, one could simply say: so far so good.
On the side of the Electoral Commission, and even though there is room for improvement, the act has been cleaned up in many respects. Blatant infringements of the electoral law during the official two-weeks of campaigning have been mostly curbed, especially regarding wild and ubiquitous wall posting of promotional material in non-dedicated spaces—the only obvious exception being private lorries transporting visiting gamblers parading with posters of casino-related candidates. 
One might complain that things could have been even better, especially if some of the rules had been clarified earlier on, as exemplified in the polemic regarding posters adorning taxis. I would also note that prevention of abuses that are difficult to substantiate—especially in the case of connected associations patting voters on the shoulder through gifts and banquets beforehand —could more easily become a reality if the Electoral Affairs Commission had been operating long before March this year, and had had its ranks strengthened during the official campaign with, for example, volunteers from all the lists in the competition. In the case of some of the printed platforms being altered without prior approval of the lists, again an extended lapse of time—only one month as of now—between the publication of the acceptance to enter the fray and the start of the official campaign could help, especially if combined with a legal and transparent consultative mechanism. But let’s not be too harsh: Sunday will be a busy day for the Commission, starting with the monitoring of how voters get transported to the voting booths!
Now to the tone and style of the campaign per se. As expected, it has been buoyant, passionately debated and full of happenings—not quite Hong Kong or Taiwan yet, but getting there. 
The explosive mix of rejuvenation of the electorate, pervasiveness of electronic social media and added competition has translated into a “negative” campaigning style that has pushed the “old guard” on the defensive and helped groom a possible new generation of concerned citizens-turned-politicians. During debate time, traditional association representatives of the four hues—labor, women, neighborhood and patriotic—have been openly challenged. In being directly questioned, the “age-wise” constitutive element of their legitimacy, already pretty depleted in the case of the neighborhood folks, was seriously eroded. All the more so because a few minor lists had been precisely formed to oppose head-on well-established incumbent legislators, even the ones credited with a solid record in the Assembly—in the case of labor-oriented lists, the rustproof UPD was being challenged by at least three alternative ones! Ultimately, not only “age” was being put into question, but also whether or not these associations were “doing a good job”, delivering on their promises and possibly doing so in a consistent manner. Capacity was thus doubted. This attrition of confidence became even more salient for the casino-backed candidates, although the equation for them appeared to be early on “not too lose too much” rather than registering significant gains. If the latest rallying slogans are to be trusted, one can feel that worry has started to get hold of even the most confident heavyweights. Of course, claiming that the house is about to be engulfed by flames in the last days of the campaign has always been a classic strategic eleventh hour politicking recourse. And yet…
What Is to Be Done? When Lenin penned his pamphlet back in 1901, his main argument was that to convert the working class to Marxism despite all the odds, a political party made up of a “vanguard” should be formed to spread the ideology. Communism is gone, but Democracy is still an aspiration. A high turnout rate should probably help a different kind of vanguard making it in.

Published in Macau Daily Times, September 13th 2013