EDITORIAL : THE ASHARQ ALAWSAT, SAUDI ARABIA, published in LONDON

But where are the republics?

The first reaction to the decision of the GCC summit in Riyadh to welcome the request of Jordanian kingdom to join the Council, and at the same time inviting the Kingdom of Morocco to join was to ask: is this an alliance of monarchies?

The answer; why not? There is nothing wrong with that. According to what an Arab official told me previously, "Arab monarchies enjoy legitimacy, and [in such systems] popular demands for reform do not affect the ruler or the regime", but rather legislation, laws and so on. The pressing question here is: are our republics fundamentally republic? In Arab republics the presidents remain in power longer than kings and princes. Power is then bequeathed, even in state institutions, and not only at the top of the pyramid. It is suffice to consider the situation in Libya, and the role of Gaddafi's sons.

The key factor today, with regards to the political earthquake that has struck the region as a whole, is that monarchies do not kill their people, but are in fact more flexible in accepting their demands, and more connected and closer to them. Similarly, monarchies did not bargain with their Arabism and did not use it as a commodity. But is this the entire story? Of course not.

Accepting the request of Jordan to join the GCC has great significance, and provides many benefits to all parties. Through Jordan's accession, it means the spread of more stability to the country as a whole, and the first security steps to block the mere thought of the "alternative homeland". Of course, some will say that Jordan is a state in confrontation with Israel, and this means that the entire Gulf is now also in confrontation. The repost to this is clear; Jordan today is a state with peaceful relations with Israel on the one hand, and on the other hand, the Gulf States have contributed to, and participated by all means in supporting the Arabs in their struggles and wars against Israel for six decades, and without being in direct confrontation. Therefore, Jordan's accession, as well as Morocco's should it decide to accept, mean that the Council will be a focal point consisting of prudent political entities, countering the threat of non-Arab regional forces against them, first and foremost Iran and its agents. This is a matter that all the Gulf countries have been exposed to, as well as Jordan and Morocco.

The entry of Jordan and Morocco into the GCC is not merely a superficial gesture as some say, but it disproves the argument that the GCC is an exclusive club for the rich. Politically speaking, the entry of the two monarchies Jordan and Morocco can be considered a message that the countries of the Council do not object to political reform, as Jordan and Morocco are constitutional monarchies. In addition to what is happening in GCC countries such as Kuwait, Bahrain, and elsewhere, it also means that the time for political reforms in all GCC countries has come, without exception.

Of course, the benefit that the GCC draws from Jordan, and Morocco if it joins, is that the political influence of this important bloc will be expanded in front of the international community. This may be the nucleus and catalyst for joint Arab action, based on new foundations. Of course, the public are still awaiting answers on many questions, and this is a task for Council members, but it is important here that everyone unites and works together, and this is certainly a good thing.

                                                                     Dated - 12/05/2011

EDITORIAL : THE DAILY NEWS EGYPT, EGYPT

Egyptian women and sectarian strife

CAIRO: A pernicious misogynistic streak has been evident in the social attitude and media language that has emerged in relation to the so-called “woman-induced” sectarian violence that has plagued Egypt over the past few months.

As a disclaimer, I must confess that one of the main reasons I decided to tackle the sordid sectarian issue from this angle is that I personally caught myself doing it.

When I first heard that over 12 people we killed and hundreds injured because yet another Christian woman converted to Islam was allegedly held against her will in a Church, my reflex reaction was to unleash my vitriol on the woman. How merciless and cruel that was. And even though I know that this woman will never read my column, I would like to publicly apologize to her.

No matter how unpopular this view is, I believe that Egyptian society as a whole should apologize to her in this classic case of blaming the victim.

The personal tale of Abeer Fakhry was an eye-opener. As the story goes, Abeer, a 25-year-old mother of one from Upper Egypt, was caught in an abusive marriage. It transpired through a video recording of her that was widely circulated online that she was trying to get a divorce, that she was romantically involved with a Muslim man, and that that she had already officially converted to Islam last September and was in hiding. When she was “betrayed” by a man who had initially helped her, who tipped her family off on where she was staying, they “kidnapped” her and handed her over to the church. The church then kept moving her from one convent to another, all the while trying to convince her, without any use of torture, to re-embrace Christianity. Her last “hostage site” was in a building affiliated to a church in Imbaba, where the deadly clashes took place, and from whence she was set free by a nun who was assigned to feed and guard her.

At least that’s one version of the story. Details that emerged within 24 hours of the clashes and Abeer’s own appearance in the video and in a phone-in interview in a show hosted by the popular Mahmoud Saad support the general gist of the story. News reports have confirmed a divorce case in her name in the family court and a copy of her Azhar conversion has also been published.

The point is, all these details are completely irrelevant to the fatal clashes that have falsely been attributed to Abeer. Whether she had converted or not, and whether she, as some reports have maliciously claimed without one shred of evidence, was married to two men at the same time, are not the reason why hundreds of hot-headed men decided to “protect their honor” by killing each other.

If Abeer had filed for divorce from her abusive Christian husband and run off with another Christian, the same could have easily happened. If Abeer was a Muslim trying to get a divorce and it was rumored that she was secretly involved with another Muslim man, the same strict Upper Egyptian mentality and cultural norms could have also ignited terrible clashes between the families and even led to some deaths.

Women in Egypt, despite having made enormous leaps in access to education and jobs and through their activism in the public arena, continue to be exploited by religious extremists from both sides to further their own political agendas. The simple truth is, socially, Egyptian women are often terrorized by their families and their extended social circles into behaving along a certain strict path, often being forced to make very private decisions that would have an immense impact on their social and psychological well-being.

Should they choose to go against the grain, the backlash, as we have often seen, can be fatal. In the case of Abeer (and before her Camilia Shehata and Wafaa Constantin, the alleged converts who were married to Christian pastors) has once again proven that the issue is not simply sectarian; it’s a question of the fundamental human and gender rights of mature women to make decisions that could upset their families.

Abeer (if she really is the woman in the video) has shown extraordinary courage by agreeing to appear in public to set the record straight and perhaps prevent more deaths and injuries. It’s tragic that the success of the entire Egyptian revolution could be undermined because one woman simply wants to get a divorce; and it’s also unjust that this whole burden has been squarely placed on Abeer’s feeble shoulders.

The fact that the Egyptian military prosecutor has ordered her detention and sent her to a women’s prison with her infant without listing any charges against her is cause for serious concern.

According to a report by Reuters quoting the official Middle East News Agency, "The military prosecution ordered the detention of the citizen Abeer Fakhry, the catalyst for the incidents of strife in Imbaba, for 15 days pending investigation."

Even the wording of the report implies that the military has already passed judgment on her; that Abeer is guilty for being the “catalyst” of the sectarian incidents in Imbaba. But the fact that she was “used” as a “catalyst” for violent crime cannot possibly be grounds for legal charges against her. So far, her detention is entirely illegal and must be immediately revoked.

If this incident has proven anything, it is that we need a social revolution to put an end to the exploitation of women in this way. Egyptian society as a whole, and activist religious groups, whether Muslim or Christian, in particular, are in complete denial of how the role of women in society has changed over the decades. Continuing to impose such flagrant social and religious restrictions can be easily abused to the detriment of the future of Egypt and its religious cohesion.

It has also proven that the deep-seated skepticism between Egypt’s Muslims and Christians has nothing to do with conspiracies by the remnants of the previous regime, but is the result of a broader social conservatism that is averse to the basic notion of individual rights and freedoms and respect for the other. The sectarianism long fuelled by the now disbanded state security investigations only found fertile ground to sow these destructive seeds because of the closed nature of our society.

Changes on that front will not happen overnight, but now that we know what the stakes are, in our own small circles, we must act now.

EDITORIAL : THE NIGERIAN TRIBUNE, NIGERIA

2011 ELECTIONS: A REVIEW

FOR different reasons, the 2011 general election will be a talking point for quite some time. To an appreciable extent, the elections salvaged the bad image grafted onto the country by the scandalous conduct of the 2007 exercise. Although in no way flawless, the performance of the Independent National Electoral Commission (INEC) under Professor Attahiru Jega’s watch was a far cry from the disgraceful election conducted by the same organisation under the chairmanship of Professor Maurice Iwu.

ONE factor that accounted for the glaring difference between the 2007 and 2011 elections is the critical question of leadership. In 2007, former President Olusegun Obasanjo publicly and unabashedly declared that it was going to be a do-or-die affair. Certain real or imagined opponents were declared unfit to participate in the elections. But for their recourse to the law courts, the affected aspirants should have lost their constitutional right to run for political positions of their choice. The electoral body exhibited gross ineptitude and downright insincerity. Election materials disappeared in transit. Voter registration machines were found in the residences of ranking members of the ruling party. In violation of the provisions of the electoral Act, the results of elections conducted in some states were announced in Abuja for fear of likely reaction to such questionable results in the affected states. The election of so many governors and legislators could not stand the test of judicial scrutiny. Even the election of the late President Umaru Yar’Adua was upheld by a three-to-two split decision at the apex court. The elections at all levels were roundly condemned by both local and international observers.

SINCE he assumed office as president of the country, one recurring theme in Dr Goodluck Jonathan’s public statements is the assurance that the people’s vote would count in the 2011 elections. From the manner in which he sacked Iwu and opted for a man of Jega’s integrity as replacement, it was  apparent that he meant every word of his assurance. The success, however relative,  of the just-concluded elections could certainly not have been achieved under an overbearing political leader. Our fervent hope is that the 2011 elections will serve as a standard on the crucial issue of non-interference with the people’s right to democratic choice.

THE message has, at different times, been driven home to Jega that the hot seat of chief electoral umpire is one from which most of the previous occupants have not departed with their reputation intact. It is gratifying that this has strengthened rather than weakened his resolve to make a difference. He has, for different reasons, been pilloried by the media. The cost of the Direct Data Capture Machines he procured was considered prohibitive. The initial stages of the voter registration was problematic largely because the machines performed poorly. His cancellation of the National Assembly election that was already underway on April 2, 2011, was generally seen as a false start. These initial errors have turned out to be the foundation on which the eventual relative success has been built.

THE entire process of the 2011 elections was widely adjudged as transparent. To a considerable extent, the open/secret system of balloting blocked the loopholes usually exploited by unscrupulous politicians to perpetrate electoral fraud at polling stations. The novel idea of bringing the National Youth Service Corps participants to serve as ad hoc electoral officials greatly diminished the chances of multiple thumbprinting of ballot papers. The involvement of university vice chancellors and professors as returning officers enhanced the integrity of the elections. Although they identified a number of shortcomings, election monitors-both local and international-attested to the credibility of the elections.

AS Jega savours the generous adulations coming from within and outside Nigeria’s shores, he should, however, take special note of the flaws observed in the conduct of the elections. There were still cases of ballot box snatching in spite of the open/secret system of voting. There were rampant cases of underage registration and voting especially in the North. Ad hoc INEC officials who resisted the pressure to register minors and allow them vote were threatened and harassed into submission. It is amazing that there could be cases of multiple thumbprinting of ballot papers in a country that spent so much money to procure Direct Data Capture Machines which were used to register prospective voters electronically. The most painful and traumatic aspect of the elections is the wanton violence unleashed on innocent citizens, especially youth corps members by hoodlums in many states in the North. It was a tragedy of monumental proportions. It was another instance of  failure of intelligence and indeed of government to protect its own citizens.

INEC now has sufficient time to plan ahead and ensure that these flaws are eliminated from future elections. Adequate security should always be provided at both registration and polling centres to frustrate desperate politicians in their usual bid to pervert the very essence of democracy. Both Jonathan and Jega deserve commendation for the positively  significant difference between the 2007 and 2011 elections. The general expectation, however, is that Nigeria can and should do better.

                                                                           Dated - 13/05/2011

 

EDITORIAL : THE DAILY OUTLOOK, AFGANISTAN

                

 

Post-Osama Setting and Possible Regional Architecture

Afghanistan stands at a critical juncture, trying to reconcile with the enemy that has resurged and endured over the last ten years against Afghan and international forces that have been operating on the ground to help the country stand on its feet in terms of stability and development. The terrorists and extremists that have continued the battle to challenge the democratic system of Afghanistan and the presence of international community have not registered and shown any willingness to come to terms with the values that have flourished over the last one decade in the country, which include human rights, citizenry's rights, construct of new social roles for women and integrity of Afghan people as a nation.

The regional countries, such as Pakistan and India, have put their weight behind the Afghan-led peace process, which has not produced any tangible results as yet. But the death of Osama Bin Laden on May 1, which brought relief to the much of the world, may entail the development of new regional architecture.
Afghanistan can play with post-Osama setting through a rational and active diplomacy bringing a wide range of players together to advocate for its case for a regional peace.

Indian Prime Minister, Manmohan Singh, paid a two-day visit to Afghanistan on Thursday and Friday to discuss bilateral issues aiming at further cementing the relations between the two countries. With announcement and pledge of additional $500 million aid, India's share of contribution to Afghanistan will be $2 billion since 2002, making it one of the largest donor countries for Afghanistan. India has also assisted Afghanistan in capacity building and provided scholarship for Afghan youths. As one of the largest democracies, its political philosophy can inspire peace in the region.

In his talks with President Hamid Karzai as well as in his address to the joint session of Afghan parliament, India Prime Minister Manmohan Singh supported the ongoing efforts by Afghan government to make peace with the Taliban insurgents. He, however, laid stress that "Terrorism and extremism are alien ideas to our people. They bring only death and destruction in their wake. They provide no answers to the problems of poverty, illiteracy, hunger and disease. We cannot and must not allow the flames of extremism and terrorism to be fanned once again."

The Taliban continue to remain linked with Al-Qaeda and after the killing of Bin Laden, the world's top terrorist, the militants stated that his "martyrdom will blow new spirit into the Jihad against occupiers." In fact, the Taliban remains a bunch of extremists that cannot break with wider network of terrorists and thus must be approached with an iron fist.

A Crucial Period in Strategic Relations

Pakistan was hit by a wave of terrorist bombings Friday. The assault killed and wounded dozens of Pakistani military trainees at a military compound. The Pakistani Taliban spokesman claimed responsibility for the attack and said it was the beginning of a series of avenging operations to be held in Pakistan following the death of Al Qaeda Mastermind, Osama Bin Laden, in the Pakistani Abbottabad.

The violence comes as Pakistani government is hardly grappling with the consequences caused by Osama murder in its foreign relations. The US-Pakistani strategic partnership is, analysts say, on the verge of a crucial change. Pakistani presidents' recent trip to Moscow is, by some experts, interpreted as a possible U-turn in US-Pakistan fragile relations.

US congressmen have asked Obama administration to rethink the country's relations with Pakistan. US officials believe that certain elements inside Pakistani government have been providing supports to the terrorist mastermind while hiding in Pakistan for years. His administration has asked its Pakistani ally to launch investigations against the supporting network for Osama inside the government. However, Pakistan has denied claims saying that the country's army intelligence body, the ISI, has had ties with the world's most wanted notorious fugitive. Instead, they have warned against further drone strikes having been launched by United States intelligence agency across Afghan-Pakistani border.

No need to say, the war on terror is far from over unless militancy is uprooted in the region, especially in the terrorism hotbed, Pakistan's tribal belt. For getting the job done, the international community needs to get Pakistan's role in the process reinforced. The US administration has reiterated that, despite tense relations with Pakistan, the US will not risk any damage in bilateral ties with it.

US Secretary of State Hillary Clinton made a blunt announcement saying that Pakistan still held substantial significance to get the process moving. In spite of edgy relations between the two allies, both need to considerately carry on cooperation to bring an end to the scourge of terrorism, with the other world and regional actors continuing contributions.

The Vicious Cycle

Taliban prisoners' escape from the central jail in Kandahar raised serious questions and criticism against president Karzai administration and his placating policies towards militants. Some of the escapees then launched a two-day operation against Kandahar provincial governor office and the NDS directorate. The blowing news came amid government's long-running appeasement policies encouraging Taliban to join the peace process.

President Karzai has done his best to encourage Taliban to lay down arms and join the peace process. However, the policy has proved counterproductive. Taliban have got enough chance to use Afghan villages and the tribal connection networks to recruit more mercenaries and expand their area of operation.

The government peace initiative included releasing some of high ranking Taliban prisoners. Peace commissions and councils established so far have insisted on providing more privileges to the militants to win their hearts and minds. Both the Peace Consolidation Commission and High Peace Council (HPC) have been trying to release all Taliban prisoners. The HPC spokesman said few days ago that the council was trying to free all Taliban prisoners even those jailed in other countries, especially Pakistan. Likewise, Afghan Second vice president on Tuesday May 10, 2011backed the Council mandate and called upon international partners to provide it with more financial resources. Mohammad Karim Khalili asserted that the national reconciliation process didn't entail sacrificing democratic achievements and constitutionalized values. However, the current political trends are in opposition to him.

As the overgenerous peace initiative implied government exhaustion in fight against Al Qaeda-backed Taliban, they were defied to carry on military attacks. They termed the peace process as phony and counterfeit. The government is, nonetheless, struggling to soothe them. So far, dozens of Taliban commanders have been freed by president order, reconciliation commissions and tribal elders' recommendations. Reports confirmed that some of them have returned back to the battlefield as soon as they've left prisons. This has actually led to a vicious cycle in which dozens of military men are killed to capture a terrorist and a single decree or unrealistic consultation help him safely return to the battlefield.

Early this week, Hajji Mohammad Mohaqiq, A member of Afghan High Peace Council and the prominent Law maker strongly protested against the release of insurgent prisoners by High Peace Council and the national peace and reconciliation commission. He said releasing insurgent prisoners without the proper judicial process from jails could hugely contribute to deterioration of security situation in the country. The recent military trends back his ideas and clearly indicate that, if pursued further, the unrealistic appeasement policies, initiated by government and backed by some exhausted international partners, will ensure collapse of the government, loss of democratic achievements and maybe return of Taliban.

EDITORIAL : THE KHALEEJ TIMES, UAE

 

 

Whither Libya’s unity

 

Libya now supposedly has two governing umbrellas. One is that of embattled leader Muammar Gaddafi, which is writ-less and unsubstantiated, whereas on the other hand are the reigning rebels who have struck a chord with the European powers for legitimacy.

British Prime Minister David Cameron’s gesture to the rebels to open up a transitional government office in London is not only unprecedented but devoid of legitimacy from the canons of international law. So is the largesse of many of the European and regional states’ who rather than finding a durable solution to the conflict in Libya, have endowed the opposition’s Interim National Transitional Council diplomatic recognition, and are willing to pump in millions of dollars and pounds sterling. That will resultantly be adjudicated with flow of weapons and  equipment, thus furthering the fire of hatred and warfare in northern Africa.

Is this the solution for which Britain and France plunged themselves into the crisis?  If so then the mandate bestowed upon them by the United Nations Security Council to ensure safety and security of the civilians in Libya stands tarnished. The European powers and the NATO literally overstepped the mandate, and have pushed the war-weary country on the brink of disaster.

So what we see now in Libya is a mess of the highest order. Pro-Gaddafi forces and the rebels are busy playing  cat and mouse  for encroaching upon territories, mindlessly stampeding over hundreds and thousands of dispossessed people.

It paints a horrible picture of bloodshed, one with a personalised flair, further weakening the edifice of the state. This is why it is becoming increasingly difficult to assess the true situation in the country, especially in the backdrop of Gaddafi resurfacing after a break of three weeks. The dictator’s video clip that shows him iron-faced and firm in utterance is a moment of deep introspection for London, Paris and the NATO forces.

What was the rationale in carrying out 6,000 sorties over Libya since March? Libya’s infrastructure and armed forces are in the doldrums, and the country has literally no governance. If Cameron’s obsession goes ahead then Libya stands truncated and torn into parts. This is no service done to the oil-rich North African country in the name of consensual diplomacy. It’s neo-imperialism at its worst.

 

Suffering the backlash

The reprisals have started. The first major attack directed at the Frontier Constabulary (FC) outside the paramilitary force headquarters in Shabqadar resulted in the massacre of at least 80, the majority being FC personnel.

The Tehrik-e-Taleban Pakistan (TTP) has already taken responsibility for the attack that occurred in the Charsadda district in Pakistan’s northwestern province of Khyber Pukhtoonkhwa. Having successfully carried out the first revenge attack for what they call the ‘martyrdom’ of Osama bin Laden, the TTP has vowed further reprisals — in fact bigger attacks in Pakistan and Afghanistan.

Though attacks of this kind were expected considering the reverence Bin Laden commanded among extremist groups globally, this does place Pakistan in an even tighter spot. It is currently facing a backlash domestically and internationally as questions concerning its complicity and/or incompetence are furiously being hurled at the government and the security establishment. The attack on the FC cadets is likely to start another gruesome chapter in the country that had barely come to grips on security after quelling terror attacks from indigenous Taleban and other Al Qaeda affiliated groups. 

Despite the Pakistan government and the United States denying Islamabad’s role or any involvement in the Bin Laden operation, a heavy price will have to be paid. The TTP’s promise to deliver this should not be dismissed. Neither is it the only party that is likely to seek revenge, the parent Al Qaeda itself retains operational capability to carry out such reprisals.

Strangely though security levels must have been put on high alert in Pakistan following the operation, those measures failed to prevent the Charsadda suicide attack. And considering the magnitude and the success of netting the large number of targets, the attack can be termed highly successful. Preventing suicide attacks is understandably difficult despite security measures having been taken.  However, it does raise alarm over the limitations to protect and safeguard targets in the security establishment. More alarming for the state would be a return of attacks targeting civilians on the lines of a few years back when Pakistan was subjected to countless such attacks countrywide.

The spread of fear and terror among the population and a demoralising of the security forces contribute to the success of such attacks. This is the time that Pakistan must bolster its counterterrorism means and assure its people that such elements that aim to destabilise the country will be crushed.

Moreover, it should speed up the investigation that has already been launched concerning the Bin Laden operation and remove any apprehensions pertaining its involvement. This is not the time to keep silent.

 

EDITORIAL : THE KOREA HERALD, SOUTH KOREA

Misguided merger plan

The government appears to be promoting a merger between Woori Finance Holdings Co. and KDB Financial Group to create a “mega bank” with assets exceeding 500 trillion won ($458 billion), roughly half of the nation’s gross domestic product.

The Public Fund Oversight Committee, which is tasked with recouping taxpayers’ money used to bail out distressed companies, will convene on May 17 to restart the process of privatizing Woori Finance, Korea’s second-largest financial holding company by assets.

The process was stalled in December following the committee’s failure to auction off the government’s 56.97 percent shareholdings in Woori Finance.

According to press reports, the government is likely to allow KDB Financial Group, a state-owned banking group that must also be privatized by 2014, to acquire an interest in Woori Finance.

To facilitate this process, the Financial Supervisory Commission reportedly plans to ease the regulations on financial holding companies. Currently, any financial holding company that intends to take over another is required to acquire at least a 95 percent stake in the target. The commission is expected to reduce the requirement to 50 percent in cases where the takeover target is a holding company that has been bailed out by the government.

If introduced as reported, this rule change will allow other financial holding companies to participate in open bidding for the Woori stake. But excluding KDB Financial, none of them ― KB, Shinhan and Hana ― have so far expressed any interest in it.

KDB Financial has already declared it will join the auction for the Woori shareholdings. Kang Man-soo, chairman of the group who has long championed the mega bank idea, last week said that the group had submitted its merger plan to the presidential office and the FSC.

Kang is not alone in pushing for a mega bank. FSC Chairman Kim Seok-dong has also stressed many times since his appointment in January the need to nurture large investment banks that can carve out a presence in global financial markets.

There is logic to fostering large, globally-recognized investment banks. First of all, they would spearhead the development of the Korean financial industry. They would also be able to reclaim some of the domestic M&A market that has been dominated by foreign investment banks. Another important rationale is that they could help Korean companies win large-scale infrastructure projects abroad.

But the mega bank idea is dangerous for a number of reasons. More than anything else, a mega bank would pose a significant systemic risk to the national economy. If it collapses, it could consign the nation to ruin. One need not go further than Korea’s 1997-98 financial crisis for an example.

A marriage between Woori Finance and KDB Financial would be all the more dangerous if realized because neither is particularly competitive in either investment or retail banking. Putting two not-so-competitive banks together does not automatically produce a competitive mega bank. Rather it would simply create a bank that is too big to fail.

Furthermore, the merger idea runs counter to the government’s privatization policy. The money that the PFOC would get by selling off the Woori stake will come from the government as KDB Financial is state-owned. It’s not privatization but nationalization. To collect the public funds, the new bank needs to be privatized, but its pumped-up size would make that more difficult.

Another concern is that the merged bank would become the main creditor bank for the nation’s 17 largest chaebol groups. The government could give the wrong impression that it is seeking to exercise influence on private companies through the bank.

Fostering investment banks is necessary. But it should not be promoted in a foolhardy way that heightens systemic risk to the national economy.

 

KTX safety checks

 

Korea Railroad Corp. has finally addressed growing public concern about the safety of its accident-prone KTX bullet trains. KORAIL said Thursday it would reduce operations of its high-speed trains for a comprehensive safety check. A day earlier, it ordered Hyundai Rotem to recall all of the 19 KTX-Sancheon trains in operation for thorough inspection.

The recall order came after inspectors found defects in one of the KTX-Sancheon trains, a latest model developed by Hyundai Rotem using in-house technology. Inspectors discovered cracks in the devices that locked a motor decelerator into position on the underbody of No. 2 KTX-Sanchon. If a decelerator, which weighs half a ton, fell out while a train was running at full tilt ―- 300 km per hour ―- it could lead to derailment and a major accident.

KORAIL should have taken action much earlier, given the recent surge in the number of accidents. Frequent accidents have already given a bad name to its high-speed rail service.

The surge in KTX train accidents began last year. Between 2007 and 2009, the number of accidents per year averaged 26. The figure rose to 53 in 2010. This year, it has already reached 27.

Of the 80 accidents since last year, 41 involved KTX-Sancheon trains, which began commercial service in March last year. This raises the allegation that Hyundai Rotem supplied its new trains to KORAIL without conducting sufficient trial operations to minimize defects.

Given the large number of parts and sophisticated technology used to produce a bullet train, minor accidents are unavoidable during the early period of commercial service. But when accidents occur and problems are found, the operator and the manufacturer of the trains should promptly take safety measures to prevent full-scale accidents. In this respect, the response of KORAIL and Hyundai Rotem has failed to meet the public’s expectations.

Hyundai Rotem is currently promoting exports of the KTX-Sancheon model. To sell the trains to foreign countries, it needs to make them safer and reduce the accident rate.

 

Misguided merger plan

 

The government appears to be promoting a merger between Woori Finance Holdings Co. and KDB Financial Group to create a “mega bank” with assets exceeding 500 trillion won ($458 billion), roughly half of the nation’s gross domestic product.

The Public Fund Oversight Committee, which is tasked with recouping taxpayers’ money used to bail out distressed companies, will convene on May 17 to restart the process of privatizing Woori Finance, Korea’s second-largest financial holding company by assets.

The process was stalled in December following the committee’s failure to auction off the government’s 56.97 percent shareholdings in Woori Finance.

According to press reports, the government is likely to allow KDB Financial Group, a state-owned banking group that must also be privatized by 2014, to acquire an interest in Woori Finance.

To facilitate this process, the Financial Supervisory Commission reportedly plans to ease the regulations on financial holding companies. Currently, any financial holding company that intends to take over another is required to acquire at least a 95 percent stake in the target. The commission is expected to reduce the requirement to 50 percent in cases where the takeover target is a holding company that has been bailed out by the government.

If introduced as reported, this rule change will allow other financial holding companies to participate in open bidding for the Woori stake. But excluding KDB Financial, none of them ― KB, Shinhan and Hana ― have so far expressed any interest in it.

KDB Financial has already declared it will join the auction for the Woori shareholdings. Kang Man-soo, chairman of the group who has long championed the mega bank idea, last week said that the group had submitted its merger plan to the presidential office and the FSC.

Kang is not alone in pushing for a mega bank. FSC Chairman Kim Seok-dong has also stressed many times since his appointment in January the need to nurture large investment banks that can carve out a presence in global financial markets.

There is logic to fostering large, globally-recognized investment banks. First of all, they would spearhead the development of the Korean financial industry. They would also be able to reclaim some of the domestic M&A market that has been dominated by foreign investment banks. Another important rationale is that they could help Korean companies win large-scale infrastructure projects abroad.

But the mega bank idea is dangerous for a number of reasons. More than anything else, a mega bank would pose a significant systemic risk to the national economy. If it collapses, it could consign the nation to ruin. One need not go further than Korea’s 1997-98 financial crisis for an example.

A marriage between Woori Finance and KDB Financial would be all the more dangerous if realized because neither is particularly competitive in either investment or retail banking. Putting two not-so-competitive banks together does not automatically produce a competitive mega bank. Rather it would simply create a bank that is too big to fail.

Furthermore, the merger idea runs counter to the government’s privatization policy. The money that the PFOC would get by selling off the Woori stake will come from the government as KDB Financial is state-owned. It’s not privatization but nationalization. To collect the public funds, the new bank needs to be privatized, but its pumped-up size would make that more difficult.

Another concern is that the merged bank would become the main creditor bank for the nation’s 17 largest chaebol groups. The government could give the wrong impression that it is seeking to exercise influence on private companies through the bank.

Fostering investment banks is necessary. But it should not be promoted in a foolhardy way that heightens systemic risk to the national economy.

 

 

                                                                            Dated - 13/05/2011

 

 

 

 

EDITORIAL : THE DAILY NATIONAL POST, CANADA

Economic news fl ash: Inequality is complex

Like just about everybody else, it seems, the OECD is interested in inequality. It hosted a forum on the subject last week and has a new inequality study coming out later this year. In the backgrounder to the conference it published a number of tables and charts, a selection from one of which is reproduced at right.

The chart shows the growth rate of real incomes in both the top 10th and bottom 10th of the income distribution in a number of OECD countries over the last 25 years. Not surprisingly (that's why we're having all these conferences and studies), in most countries income grew more in the top decile than in the bottom. There were exceptions -France here, also Belgium, Chile, Greece, Ireland, Portugal, Spain and Turkey in the full sample of 27 countries -but in most places growth was more rapid at the top than at the bottom of the income distribution. Across the OECD, it averaged 1.4% per year at the bottom, 2% at the top. Canada's numbers were 0.9 and 1.6, the United States' 0.5 and 1.9.

Note that this is not a case of "the rich getting richer and the poor getting poor." Except in Japan and Israel, the poor didn't actually do worse. Almost everywhere there was growth at the bottom. But incomes at the top grew more quickly than incomes at the bottom. In effect, the rich were pulling away.

You can imagine where this is going. Neo-liberal economic policies -deregulation, free trade, fiscal conservatism (yes, that would be neo-liberal conservatism) -are rewriting the post-war economic and social contract at the expense of the poor and to the benefit of the rich. Add in financial chicanery by giant banks and investment companies and corporate control of most of the world's governments, but especially the U.S. Congress, and you have a conspiracy theory worthy of the NDP shadow cabinet.

Except that that's not where the OECD takes the data. It's true that globalization may be playing a part. Standard trade theory says rich countries' high-skilled workers and poor countries' less-skilled workers, which groups the respective regions have in relative abundance, should benefit most from trade. That's consistent with increased incomes for already high-income skilled workers in the OECD's rich countries.

Technology also plays a role -in fact, a greater role than trade if the consensus of studies is to be believed. People who can handle the new technology on which most production is based are increasingly in demand and in many cases such brain (as opposed to brawn) workers are already well paid, so paying them even more only widens the income gap.

But the computer revolution isn't really the stuff of conspiracy (unless you think Al Gore and the U.S. Defense Department were in cahoots to screw workers) and it's hardly surprising that an economic revolution should rearrange the income distribution. The first Industrial Revolution's switchover from agriculture to manufacturing shook things up, too.

But beyond that, there's just not much for conspiracy theorists to work with. The oldest conspiracy theory of all -capital versus labour -doesn't achieve traction. On average across the OECD, only 7% of the household income being looked at comes from capital (in the form of interest or capital gains). The great bulk of income, and therefore the source of the great bulk of income inequality, is from wages and salaries.

Changes in household size do seem to be part of the problem. In most countries, there are fewer people per household. Across the OECD, the number of households with only one head has risen from 15% to 20% of the total. In calculating households' real income, the statisticians try to factor in the economies of scale families enjoy. (Kids are cheaper by the dozen, yes, but also by twos and threes.) If more families are smaller and therefore not enjoying such economies of scale, more are going to be poorer. Why more families are smaller probably has more to do with changes in divorce laws and women's participation in the labour market than with neo-liberalism or even neo-conservatism. So-called traditional conservatives didn't like such changes.

It's not only family breakup that's causing trouble. Something called "assortative mating" also seems to blame. More than in the past, the same kinds of people -or at least people with similar earning power -are marrying each other. Doctors increasingly marry other doctors, rather than nurses. Today, 40% of couples in which both partners work have similar incomes, compared with only 33% in the 1980s. If rich people are more inclined to hook up with other rich people than formerly, that tilts family incomes in the direction of greater inequality. Some studies suggest most of the increase in inequality in the United States, where people worry most about inequality, is due to demographic changes of this sort. Ronald Reagan, Margaret Thatcher and Milton Friedman had nothing to do with it.

It's also the case that the wives of top earners have experienced greater employment growth than the wives of lower earners. When that happens, family income grows more quickly at the top than at the bottom. Again, that's not the result of neo-anything.

As mentioned, the OECD has another inequality study coming out this year. It's bound to conclude that inequality is complicated. And that conclusion seems bound not to make it into the public debate.

Respect for life, respect for free speech

Ottawa's new mayor, Jim Watson, has come under fire from pro-choice activists for signing a proclamation that declared Thursday to be "Respect for Life Day" in the nation's capital, to coincide with the National March for Life rally on Parliament Hill, which attracts approximately 20,000 abortion opponents annually. Opponents charge that the proclamation threatens a woman's right to choose. But to his great credit, Mayor Watson -who is himself pro-choice -insists he signed the document out of respect for free speech and a diversity of opinion.

Every Ottawa mayor in the past decade has signed a similar proclamation. Yet Melanie Stafford, a member of the Pro-Choice Coalition of Ottawa, insists the proclamation -which calls on Ottawanians to protect "the rights of people in Canada, including the unborn," uses "dangerous language around the rights to the unborn," and sends the "wrong message" to women that they do not have the right to decide for themselves whether they were wise to terminate their pregnancies.

What rubbish. If a woman must be protected from opposing points of view in order to choose abortion, then perhaps her decision was ill-considered in the first place.

The city clerk's office in Ottawa must vet all requests for special-day proclamations. In this case, staff there deemed the "Respect for Life" application to meet the standards required and presented it to Mayor Watson for his signature. If pro-choicers object, the proper recourse is to request a proclamation for "Respect for Choice" day, not to try to censor those who disagree with them.

Learn from Europe

The non-partisan Conference Board of Canada has released a new study enumerating the weaknesses in Canada's public health-care system. In short, the report says that while Canada spends a lot on public health care, our health outcomes are middling compared to other developed nations. Many countries -such as Australia and Sweden -spend less but with better results.

Why the difference? The Conference Board offers no easy answers. The North American lifestyle, it contends, plays a significant role. A grossly overweight person consumes about 42% more health dollars per year than a person with the proper body weight. Japan, for instance, spends relatively little on health care, but because of its skinnier population (and perhaps its focus on high-tech diagnostic equipment), Japanese have significantly longer, healthier lives than Americans and Canadians.

Looking beyond lifestyle factors, creating better health outcomes for Canadians will mean finding the right balance between private and public care. An over-reliance on private care drives down the health outcomes of poorer citizens who are dependent on government care, which skews downward the averages for the citizenry as a whole. But a dogmatic commitment to publicly funded and publicly run health care, such as we now have in Canada, prevents competition that can increase efficiency, improve delivery and hasten the adoption of new technologies and new drugs.

Every country above us on the Conference Board's list permits a better mixture of public and private spending on health. None of them outlaw private insurance for treatment in private clinics, as we (wrongly) do here in Canada. Indeed, policy makers in countries such as France, Germany and the Netherlands would likely be baffled by Canada's rigid insistence that private options somehow sully health care. Even in Sweden -once the standard bearer for public-only health care -private companies provide nearly a quarter of the care, even though most care is still paid for by the government.

The focus of any health-care system should be the best-possible outcomes for the greatest number of people -not abstract questions of "national identity." Now that Stephen Harper has his majority, we would urge him to bring our health system into line with the more successful mixed public-private models that have long been the norm on the other side of the Atlantic.

EDITORIAL : THE AZZAMAN, IRAQ

700,000 children fail to enroll in primary schools in Iraq every year

The number of children staying away from school in Iraq is estimated at 700,000 a year, a new survey reveals.

 The survey, by the Tamuz Organization for Social Development, said half the primary school pupils who successfully complete their education, join higher levels.

 The survey comes amid reports that many school buildings in the country are in need of repairs and that some may not be suitable for teaching.

 The reports say more than 20% of Iraq primary student population, estimated at nearly four million, drop out of school.

 They are mainly widowed children who join the growing child labor force in the country to support their mothers and siblings.

 The percentage of children staying away from school differs from region to region, the survey said.

 It said the percentage of those joining school was higher in the northern and southern parts of the country than in the southern region.

In the south, it said, up to 65% of children of school age stay away from school.

 More girls than boys remain without education in the country, according to the survey.

 “Across the country only 80% of girls of school age join school with 90% of boys,” the survey said.

                                                                         Dated - 13/05/2011

EDITORIAL : RFI english, FRANCE

 

 

French press review

 

 

The economy and social issues are dominating the French newspapers

The economic daily Les Echos raises an alarm about the worsening drought in France and its impending effects – a projected shortfall of between 30 to 50 per cent in grain production in the country.
The Catholic daily, La Croix, is also concerned by the emergency. The paper reports that there is an unprecedented mobilisation by all stake-holders to prevent the worsening of the water situation in 20 of the worst-hit regions.
Le Figaro today publishes a survey establishing that 65 per cent of French citizens, including left-leaning voters, are against welfare payouts and do support the proposal by European affairs minister Laurent Wauquiez to subject beneficiaries to do community work in compensation for the checks.
The scheme has left the government locked in an exercise of damage control. Le Figaro explains that the crisis broke out after Laurent Wauquiez slammed the payouts as the cancer eating into French society.  Wauquiez’s called the proposal off after an angry rebuke from his solidarity affairs counterpart. The conservative paper states that Prime Minister François Fillon called the move an error which the minister had since apologised for.

La Tribune on its part takes up the latest French economic growth figures. The statistics due to be published later today are projected to rise above 0.8 per cent during the first quarter – more than double last year’s growth rate. In another statement Thursday night Economy Minister Christine Lagarde suggested that there would be rise to 1 per cent of the French GDP. The paper underlines a slight improvement in job creation and picks out the hi-tech sector as the one offering the most jobs as it looks to recruit some 31 thousand senior staff in 2011.
Today’s issue of the Communist party daily, L 'Humanité, is all about the clamour for jobs. The tabloid’s managers picked union leader Bernard Thibault to sit in as editor-in-chief for the very special issue. The paper is seeking to mobilize workers for muscle-flexing protests and a heated stand-off this summer, between the unions and the government, especially over the loss of 31,000 public service jobs .
Le Monde makes some new revelations about the scandal over the killer drug MEDIATOR. The newspaper says it has found out that drug company Servier knew since 1995 that the tablets contained toxic elements. The respected paper reports that it was able to consult an internal document which the company has kept secret as it faces a series of court battles filed by thousands of victims seeking compensation.
France Soir joins the hunt for the serial killer from Nantes who disappeared after exterminating his family. The evening tabloid publishes the search warrant put out by Interpol for Xavier Dupont de Ligonnes . France Soir tries to figure out what the slippery character could look like at this moment. The paper says it suspects he’s probably changed his face hoping to start his life afresh somewhere
Left-leaning Libération examines the crisis at France’s Number One broadcaster TFI.
The giant private channel is facing its worst audience ratings in years. The paper says the setback is caused by the poor ratings of prime time news anchor Laurence Ferrari drafted in to replace veteran star Patrick Poivre d’Arvor. Libé says TFI is almost being overtaken by the state-owned broadcaster France 2 due to Ferrari’s lack of appeal and warns that she has been turning audiences away and eroding TFI’s standing as France’s most powerful audiovisual company.
Today is Friday the 13th, probably the most superstitious day in the modern calendar.
It doesn’t come up that often, so Aujourd’hui en France /Le Parisien did its best, exploring from A to Z, what makes this day so special to people around the world.
The popular paper says millions of French people are hoping to capitalize on its mysteries and will try their luck by playing big in the pools and lotteries.







 

EDITORIAL : THE TEHRAN TIMES, IRAN

Persian Press Review

Tehran Times Political Desk

This column features excerpts from news articles, editorials, commentaries, and interviews of the leading Iranian newspapers and websites.

Thursday’s headlines

KAYHAN: Hot discussions over merger of ministries in Majlis and administration

JAVAN: Deviant group is ‘sunken’ in economic corruption

MELAT-E MA: Progress is impossible without a development in book sector

HAMSHAHRI: With an 80 percent progress in development of Velayat Park the per capita green space in Tehran reaches international standard

JAM-E JAM: Guardian Council interpretation of law ends dispute between Majlis and administration

SHARQ: President responds to warnings by Majlis speaker

Leading articles
JAVAN in its editorial has pointed to resurfaced disagreements between principlists and criticized reformists for trying to take advantage of the current political situation in the country. The editorialist says that when disagreements arise between Iranian officials, the enemies become hopeful that internal dissensions could lead to the collapse of the Islamic system, but each time Iran weathers the crisis and shatters their dreams. However this time, political problems have delighted a group which claims to be loyal to the principles of the Islamic system. Reformists are happy that a deviant current within the principlists grouping has emerged and say they had predicted the current situation. But reformists should know that the Iranian nation are vigilant and insightful and will ostracize any group which is deceived by the enemies and deviates from the right path.

In a commentary published on HEMAYAT daily newspaper, Qasem Qafouri has discussed Tuesday’s announcement that leaders of the Persian Gulf Cooperation Council (PGCC) have invited fellow monarchies Jordan and Morocco to join the council. Following is an excerpt of his commentary: The member states of the PGCC pretend that this measure was taken based on the council’s geographical location, and it will establish a new bond among Arab countries. But the developments that are taking place bring some other points to light. First of all, the PGCC, since its establishment, has shown that it has not been able to foster the unity that it claims, and matters including economic issues and the expression of support for the United Arab Emirates’ groundless claims to the three Iranian islands have been repeatedly discussed in their meetings. Secondly, the uprisings in the Persian Gulf region and North Africa have frightened the hereditary rulers of the countries. They are seeking a way to confront these uprisings, and the new decision of the PGCC on the membership of Jordan and Morocco is part of those efforts. Thirdly, we should not lose sight of the role of the United States in forming such a coalition. The Islamic awakening in the region and the downfall of the U.S. allies in Egypt and Tunisia have made Washington face a regional and global crisis. Washington is making every effort to confront the Islamic awakening in Arab states and to form a coalition of its allies to serve its own interests. Anyway, the recent measure by the PGCC cannot improve the status of the council since the member states have been brought together under a pressure by the West, and it is possible that the council will dissolve at any moment.

EDITORIAL : THE INDEPENDENT, IRELAND

       

 

Why Ireland must raise its game now

The IMF's scathing assessment of the economic policies pursued by the previous government should serve as a warning to the current administration of the need for Ireland to raise its game. By accusing the former government of a lack of "political fortitude", diplomatic-speak for utter gutlessness in the face of selfish, vested interests, our new masters have made it clear they expect much better, from the new Government.

In addition to criticising the political cowardice of the previous government, the IMF was also scathing about many of our institutions.

While the IMF's strictures will have come as little surprise to anyone following Ireland's economic collapse, they still serve as a welcome reminder that, a change of government notwithstanding, much more needs to be done before this country can emerge from the crisis.

Despite its reputation, the IMF has played a straight bat in its dealings with this country. Unlike the EU and ECB, which have both pursued their own agendas, regardless of their impact on Ireland, the IMF is understood to have wanted a lower interest rate. It is charging us just 3.1pc on its portion of the bailout compared to the penal 5.8pc rate being charged by the EU, and wanted to 'burn' the senior bondholders of the Irish banks when the terms of EU/IMF bailout were being discussed last November.

Why didn't the previous government exploit the fact that the IMF was quietly supportive of many of its concerns? A competent negotiating strategy last November would have had this country exploiting the tacit sympathy of the IMF and turning the divisions between it and the EU and the ECB to our advantage.

This didn't happen. Why? Could it possibly be due to the lack of political fortitude and poor quality institutions identified by the IMF? If so our political cowardice and shambolic administration have cost this country dearly.

Things cannot go on like this. The post-Celtic Tiger bust has shone an unsparing light on this country's leadership and its institutions. While the IMF's criticisms sting it is hard to argue with them. The political and administrative system is no longer fit for purpose and requires reform.

We would be well-advised to heed the IMF's advice. If Enda Kenny and Eamon Gilmore are serious about extricating Ireland from the mess it is now in they must be prepared to embrace the far-reaching change that their predecessors shunned with such disastrous consequences.

State employment plan just isn't working at all

With unemployment at its highest level, the ESRI's conclusion that the National Employment Action Plan isn't working is extremely disturbing. Unless these labour market activation measures can be made effective, the numbers trapped in unemployment will continue to rise.

Under NEAP, anyone who has been signing on for three months is automatically interviewed by FAS. If they don't show up for the interview their dole payments are stopped.

The NEAP interview is supposed to produce one of four outcomes; a place on a training course, a place on an employment programme, work experience or referral to the local employment service for more intensive guidance.

That's the theory. The reality is less encouraging. An ESRI audit has concluded that those who were referred to the local employment service were 17pc less likely to find a job. Almost as remarkable is the fact that this is the first time its effectiveness has been gauged.

For employment activation measures to work follow-up is crucial. That seems to have been lacking up to now.

When there was full employment it was sufficient to go through the motions of interviewing those who were still on the dole three months after first signing on. Such a lackadaisical approach is no longer good enough.

                                                                          Dated - 13/05/2011

EDITORIAL : THE BANGKOK POST, THAILAND

Corruption as a way of life

Few serving prime ministers have made as many public speeches condemning corruption as Abhisit Vejjajiva. He also transformed some of those words into deeds by forcing the resignation of a deputy minister at the Public Heath Ministry when graft became an issue. But it would be wishful thinking to assume that any significant progress has been made in changing the mindset of the public and private sectors, and that includes the attitude of some key players in government.

While the majority has long condemned corruption in public, privately many treat bribery as a fact of life. No one, though, has anything positive to say about it as it remains a core factor in the public's discontent with the social, economic and political imbalances within the country.

This will become apparent in the wake of the July 3 election, when businessmen who love to complain about the greed of elected public officials compete for the most advantageous links to the new decision-makers and those who control the money flow. To do otherwise might put them at a disadvantage or open the door to their competitors and jeopardise future favours or government contracts. But while this practice of putting profits before principles may be understandable, it is exasperating because it perpetuates the cycle of corruption. It is always a joy to see those companies known to practice a high standard of ethics doing well and businessmen who call for a change in unscrupulous government behaviour actually being prepared to change their own way of doing things as well.

No one envies the Election Commission in its task of organising clean and fair polls. The problems it faces go beyond vote buying and outright fraud, and include a lack of confidence in the whole process. A global survey conducted by Transparency International last year found that few people trust their governments or politicians. Eight out of 10 people interviewed said they believed political parties to be corrupt or extremely corrupt, while half the people questioned said their government's action to stop corruption was ineffective.

Although we have two major and seven minor agencies responsible for ridding us of corruption, human nature being what it is, they will not succeed in completely eliminating it. All they ever see is the proverbial tip of the iceberg. If it is possible to reduce the level of corruption that our society is willing to tolerate, then that will be a good start. Attitudes have toughened in recent years but public perceptions still fall short of treating those who make graft a way of life with the contempt they deserve. Society should deny them any respect. That is not happening at present.

If we are to attract greater foreign investment and reform the worst aspects of the system we live by, then there should be no place for outstretched hands or a continuation of "business as usual" when the new administration takes office after the elections. We know that the factors usually blamed for increased corruption are the rise of consumerism, the patronage system and inadequate salaries. But behind them lie greed, public indifference and an absence of shame. These are the attitudes that need to change.

Of course it is much easier to condemn corrupt practices than it is to actually eradicate them. But we can start by enforcing the many laws that already exist to fight the "kickback culture". We can also use motivational techniques to rectify the apparent lack of civic duty among those guiding the workforce. And, of course, promote leadership at all levels of society that actually set a positive example worth following.

EDITORIAL : THE AUSTRALIAN, AUSTRALIA

Abbott dances to his own tune

IT seems strange to end a budget week with the government changing the topic to population strategy and Tony Abbott forcing Bob Brown to rule out an early election.

It's been an unorthodox budget season. Wayne Swan delivered an unspectacular budget that failed to deliver the tough cuts he promised. Yet Labor's strategy was to put the onus on Mr Abbott to either agree with its cuts or provide alternatives. It challenged him publicly and cajoled journalists to do the same. The Prime Minister's frustration was palpable as she sought to switch attention to Mr Abbott and set him up to fail. But the Opposition Leader would have none of it, simply ignoring the directives from the government and some media, and dancing to his own tune. His budget reply was actually a campaign speech, an effort to empathise with family cost-of-living pressures and a stinging critique of the broken carbon tax promise and other perceived government weaknesses. Mr Abbott had every right to deliver such a speech, and he did it with some aplomb. Ms Gillard has retorted that it was "mindlessly negative" and that the opposition has surrendered any right to the economic high ground. She might be right, or Mr Abbott might be on to a winner. It is all there for the public to see and they will be the arbiters.

A not-so-big vision for Australia

THE Gillard government's population strategy, Sustainable Australia, Sustainable Communities, released yesterday is a troubling departure from the principles that have underpinned immigration policy for decades and upon which our prosperity has been built.

In the week in which the government's own budget drew attention to the labour shortages that could constrain growth and fuel inflation, we are landed with a report that challenges the connection between economic strength and immigration levels. Talk about mixed messages.

Since Treasury confidently predicts Australia's population will reach 35 million by 2050, the absence of numbers in the report released by Sustainable Population Minister Tony Burke looks like political cowardice. Instead of providing a big-picture national overview, it takes a parochial, community-by-community approach to dealing with the challenges of growth, focusing heavily on regional development, the digital economy and lifestyle issues. This piecemeal strategy raises the question of what purpose the report serves, other than pacifying the Greens, by canvassing mainly state and local government issues.

The government moved in the right direction in the budget, announcing that 16,000 skilled migrants would be allowed into Australia in 2011-12 under the Regional Sponsored Migration Scheme. That 60 per cent increase will help relieve labour shortages created by the mining boom and will lift the total number of new migrants for the year to just under 200,000 and should be part of a comprehensive growth strategy. As former Queensland premier Wayne Goss told ABC television on Thursday, Australians should be told the facts -- that as baby-boomers retire, the nation faces lower living standards unless governments plan and build infrastructure to cope with a population of at least 35 million.

After an unedifying, populist race to the bottom during the population debate in last year's election campaign, Mr Burke's report, hamstrung by Julia Gillard's opposition to a "big Australia", has not provided the circuit-breaker that was needed. It is still unclear to us why the word "sustainable' was added to Mr Burke's ministerial title since the word had become so ubiquitous it has virtually lost its meaning. But an immigration policy built on a flimsy document like this one would, without doubt, be unsustainable.

Overland faces quiz and search. Anything to hide?

A TRAVESTY of justice will occur if the current inquiry into Victorian police command does not examine the most worrying behaviour of the Chief Commissioner of Police, Simon Overland.

The inquiry, conducted by Jack Rush QC, was established this week after the Baillieu cabinet discussed the option of sacking Mr Overland. The Victorian police leadership crisis must be resolved. But doubts about Mr Overland will never disappear unless there is a serious examination of his role in the Operation Briars affair, which dates back to 2007 when Mr Overland was a deputy commissioner.

The crisis has reached a crescendo this month after the commissioner fell out with his well regarded deputy, Ken Jones, who resigned before Mr Overland expedited his exit. This drama comes against a background of serious budgetary and operational problems. A computer system failure led to parole offenders being left free before going on to allegedly commit murders, and the cost blow-out in a replacement computer system could top $100 million. Mr Overland has been accused of succumbing to political pressure from the former Brumby government to release incomplete crime figures during last year's election, he faces problems with an officer recruitment drive and he has refused to reveal the source of his disagreement with his departing deputy.

Considering all this, the Baillieu cabinet discussed sacking Mr Overland but instead has ordered the Rush inquiry. Mr Rush has broad-ranging powers and it is in the interests of all Victorians that he uses them to look back at Operation Briars. The main relevant facts of Operation Briars are now well known, thanks to a series of court cases and affidavits. Yet Mr Overland has never been held to account for his role. By his own admission, the then deputy commissioner shared information from a secret murder investigation's phone tap. Under law, such information can only be shared for the purposes of the operation. Yet it appears that neither the information nor the purpose for which it was shared related to the murder investigation.

In an intriguing tale of rivalry within policing ranks, the ambitious Mr Overland acted because the phone tap revealed the Police Association might be about to embarrass him by leaking news to a radio station that he was being sent on an overseas training assignment. By intervening to protect himself from this media embarrassment, Mr Overland inadvertently set off a train of events that tipped off the subject of the phone taps, undermining the investigation. The person Mr Overland shared the information with, police media chief Stephen Linnell, the man he passed it on to, assistant commissioner Noel Ashby, and in turn the man he told, Police Association secretary Paul Mullett, all subsequently lost their jobs and faced legal action over the incident. But Mr Overland was spared. The Weekend Australian would like to know why. Mr Rush now has the opportunity, and we would argue the duty, to revisit these matters to consider whether Mr Overland has a case to answer, and if so, question why action was not taken at the time.

There can be no doubt that Mr Overland has been a media and political player. From the day he allowed the premier and police minister to pin on his commissioner's insignia, he was seen as too close to Labor. This week he even admitted that cosy start was a mistake. But he has also sought cosy relationships with certain media, and issued media bans on those, such as 3AW's Neil Mitchell and The Weekend Australian, who have dared to question him. It is not without irony that this media vanity provided the motivation that led to his questionable actions in 2007.

The situation now, however, is even more serious. A poll shows 92 per cent of serving officers lack confidence in his leadership. His highly credentialled deputy is gone, the budgetary, computing and recruiting problems remain, and he is facing the humiliation of a top level inquiry into the command of his force. Mr Overland is familiar with all these difficulties and says he has nothing to hide. But he must also realise that unless the cloud of Operation Briars is cleared, it will always hang over him.