EDITORIAL : THE DAILY NEWS EGYPT, EGYPT

On the 60th Anniversary of the July 23 Revolution: what about the Junta and the Brotherhood?

Daily News Egypt 

By Alia Assam

It could have hardly been imagined by the Free Officers who led the military coup on 23 July 1952 that an elected president belonging to the Muslim Brotherhood would be delivering a commemoration speech on the 60th Anniversary of their ascension to power.

When President Morsy unexpectedly addressed the nation in a TV speech on the eve of 23 July 2012, he has surprised many.

Seeing the former head of the Muslim Brotherhood’s political arm, the Freedom and Justice Party, hailing the same July Revolution whose commanding council had disbanded the Muslim Brotherhood Society in 1954, and inflicted pain and suffering to the group until 1966, marked by the execution of their prominent ideologue Sayyid Qutb, seemed to defy reality.

After an initial accord between the Muslim Brotherhood and the Free Officers before and immediately after the 1952 coup, the former’s attempt to assassinate President Nasser in 1954, coupled by the military revolutionists’ determination to eliminate all forms of political opposition, led the incarceration of the Muslim Brotherhood members in military prisons and in some cases to execution.

This period has been termed in their literature as the ‘Mihna’.

During the presidencies of Sadat and Mubarak, both devout sons of the military institution, although the grip of the state over the Islamist society loosened somewhat, some of the Muslim Brotherhood members and icons still stood before military courts.

Considering this background while analysing the semantics of the relationship between the Muslim Brothers and the military rule, it is fair to state that the changes brought by the January 25 Revolution of 2011 were dramatic.

The success of the Muslim Brothers in seizing control of most of the professional syndicates and the majority of parliamentary seats, followed by their major breakthrough in having a brother as the first post-revolutionary president, have all set in motion a series of events which will bring about an entirely different stage in relations between the power brokers as they compete for power.

The main feature of this new stage is that both sides have managed to reform their tactics, with the aim of avoiding direct confrontation.

While apparently, it might seem that the Muslim Brotherhood have succeeded in filling the political vacuum created by the ouster of the National Democratic Party, the military’s influence with regards to state affairs cannot be denied.

The military generals knew that the age of mass arrests and martial law has gone with the January 25 Revolution, and at the same time the Brotherhood are well aware that the influence of the junta is deeply rooted into almost all of the official decision-making circles, especially the judiciary, and will lose their short-term gains if they cause the generals excessive displeasure.

While President Morsy did not attend the funeral of the deceased former head of Military Intelligence, General Omar Suleiman in person; he did not shy away from standing before the cameras and hailing the 60th anniversary of 23 July.

Many analysts see that both actions are contradictory, and believe the latter might probably be a mere attempt to reconcile the tensions with the junta.

In search of Morsy’s powers in constitution

Daily News Egypt  

Before President Morsy had announced former Minister of Irrigation Hesham Qandil as Egypt’s new premier, columnists across the Egyptian press tried to analyse Morsy’s proper powers in the constitution. Elsewhere, several columnists have continued to explore the 60th anniversary of the July 1952 revolution, while comparing the of the July coup d’état with the January 25 revolution.

Amro Rabie Hashem
Al-Masry Al-Youm newspaper

What the President’s powers actually amount to should be regarded as a weighty component in Egypt’s new constitution.

How these powers manifest in reality will be the blueprint for the relationships between Egypt’s power brokers and the real importance lies in making sure that the past is not repeated.

In his column, Amro Rabie Hashem suggests that a mixed system of government should be the only solution for Egypt’s political crisis.

Unlike presidential or parliamentary systems, the mixed system brings together elected institutions; the presidency and parliament, and sets bold lines between the country’s three authorities.

Hashem lists the president’s powers that should materialize in the coming phase.

In the writer’s estimation, Morsy should have the power of appointing high-profile employees, heading the cabinet’s regular meetings, presenting draft laws for the parliament and have the right to criticise any of those passed by the former.

The President should also issue Presidential decrees and announce states of emergency under certain conditions.

In addition to this, the President should have a fundamental role in the formation of government and the dissolution of parliament.

As for the government’s role, Hashem affirms that its main role lies in regulating public policy and the implementation of laws.

The military forces should fall inferior to the government, as it will be hold accountable in front of the People’s Assembly.

In this system, the writer believes that a national association will supervise both the President and the government.

Emad Al-Din Hussein
Al-Shorouk newspaper

One of the debates currently occupying public opinion is the conflict between Cleopatra Ceramics owner, Mohamed Abu Al-Enien, and his workers, as well as the dispute between Egypt’s Mahalla Textile workers and Chairman of the Spinning and Weaving Holding Company, Fouad Abdel-Alim. Emad Al-Din Hussein states that while some discuss the details of the conflicts, many place emphasis on which party is to blame.

The principal element, in the writer’s eyes, should raise the question of whether or not there are fair regulations that govern the relations between employers and workers in Egypt.

This conflict’s roots stem back to Mubarak’s old regime as he helped in founding a mood of prejudice towards workers.

In Hussein’s estimation, most businessmen during Mubarak’s dark 30 years were corrupt and were accustomed to dealing with workers in an oppressive manner.

After the January 25 Revolution, the writers affirms that there is neither excuse nor logic allows millionaire businessmen to simply acquire wealth and affluence while walking all over their workers.

Hussein expresses his concern from the flagging volume of production due to the negative working conditions that operate in Egypt’s large companies and factories.

It is essential that all parties revisit the goals of the January uprising and work on implementing social justice as one of its first objectives.

Wrapping up his piece, Hussein calls on President Morsy to intervene for the benefits of the many downtrodden workers.

Mohamed Essmat
Al-Shorouk newspaper

On its 60th anniversary, nothing remains of the July 1952 Revolution but a blend of tarnished revolutionary thought, a set of social achievements for the poor, and bitter memories of the June 1976 war.

Recalling 1952 revolution, Mohamed Essmat assess the concept of Nasserism and describes former leader Gamal Abdel Nasser as ‘the man of big contradictions and fatal mistakes’.

He asserts that Nasser’s main blunder came when he lost confidence in his own people; the Egyptian people having previously provided him with legitimacy and the impetus behind the 1952 Revolution.

In an attempt to assess Nasser and his rule, the writer states that he later managed to properly play the role of a dictator, especially when he used severe oppressive methods against his opponents.

The Nasserism debate remains torn along party political lines of the left and the right.

The former leader had enjoyed plenty of legitimacy, especially after his decision to nationalize the Suez Canal, there was no great need for him to fix presidential elections to win with 99.9 %.

Essmat believes that the Nasserite concept established a police state with a socialist front.

In the end, the columnist argues that Nasserites carry on striving to achieve a true ‘people’s socialist association’ while clashing with the multi-partisan concept.

Until the group resolves this dispute, the writer estimates no future for Nasserism as a political trend.

Ahmed Mansour
Al-Watan newspaper

Revisiting the Tunisian revolution, Ahmed Mansour compares the Tunisian police to those in Egypt, stating that former security apparatus was also devoted to the former corrupt regime.

After the success of both uprisings, the problem remained in how to restore these institutions and build mutual confidence with the people.

Hatred has always surrounded the building of Cairo’s Lazoghly Security Apparatus, a situation similar to the Tunisian National Security building.

Mansour states that unlike Tunisia, which managed to restore confidence in the police as an institution, after the January 25 Revolution, Egyptians have lost any feeling of respect towards police and security officers.

Calling upon Morsy to take steps in reinstating the once respected police institutions, the writer affirms that police officers will not be able to dissolve this issue on their own.

Security in Egypt will never be imposed without the interference of presidency, in Mansour’s estimation.

He further suggests that Morsy would help police officers by presenting to the parliament a set of regulations that govern their rights.

Another of his recommendations is that Morsy should order constant shifts of police officers to patrol the country in an effort to eliminate all sorts of chaos and danger.

Considering Morsy’s plans for his first 100 days, the writer finally places emphasis on the importance of a strong police presence, so as to deliver the his security commitments.

Mohamed Al-Kholy
Al-Tahrir newspaper

July and January are only a small number of months apart, but drastic changes have occurred in Egypt between 1952 and 2011.

Mohamed Al-Kholy states that the difference between the July and January revolutions is that the former was a military coup d’état transformed into a popular uprising, where as the later is a popular revolution that reverted to a military coup d’état.

Al-Kholy, returning to the evening of 11 February 2011, when Egyptians rejoiced the ouster of Mubarak and his regime, expresses his astonishment at those who mourned Omar Suleiman who was regarded as Mubarak’s right arm.

He condemns those who grieved the former Vice-President while recalling how many martyrs fell at the hands of military rule in clashes on Mohamed Mahmoud Street and at the Ministry of Interior.

Al-Kholy ends his piece denouncing the military junta while placing stress on all destructive consequences of their rule.

He recalls a scene of a female protestor holding the portrait of Gamal Abdel Nasser and chanting ‘down down with the military rule’.

The writer considers the irony of this image given Nasser’s preeminent military connections and asserts there is a vast difference between the army of 1952 and that of 2011.

EDITORIAL : THE OUTLOOK AFGANISTAN, AFGANISTAN

US President’s Reiteration of Ending War

The US and other allies of Afghanistan in the war against terror have already decided that they would end the war in Afghanistan by the year 2014. After 2014, when the international security forces would have withdrawn completely, Afghanistan is expected to shoulder the responsibility of the security and management of the country itself. However, there are real concerns regarding such an expectation.

Reiterating the commitment of US to end the war in Afghanistan, US President, Barack Obama, has once again ensured that the transition to Afghan forces would be completed by 2014 as he had promised before he was elected as a president.

Speaking to the Veterans of Foreign Wars in Nevada on Monday, July 23, he said that US war against terrorism was being won as Osama bin Laden was already defeated and Al-Qaeda was on the road to be conquered. He also showed his satisfaction from the ongoing transition period and hoped that the security transition to Afghan forces would result in better conditions in Afghanistan.

It is important to see that US has been urging to end the war against terrorism but more important is the fact that the war should be concluded properly, not just ended. Proper conclusion would require doing more than what is being done in the security transition. The transition of security arrangements alone would not solve the issues in Afghanistan; rather the overall scenario has to go through a transition.

The country has to seek a suitable reconciliation process and above all the Afghan political system has to go through a process of change so as to make it able to govern its people properly. There have been controversies regarding Afghan government and its capacity to deal with the challenges within the country.

In fact, it has been observed that Afghan government has not been able to provide rudimentary requirements of life to majority of its people and have not been able to seek appropriate solution to various political problems that influence the system to a great extent. There has been a label of corruption and many, both in national and international circles, do not believe that it has the potential to achieve 'good governance'.

Though the international community has, on various occasions, emphasized that their support is conditioned on the basis of good governance yet there has not been major steps taken by Afghan government to make achievements in this regard. A decade of support and assistance seems to have gone in vain and the country still suffers from myriads of problems.

Taliban Now Dependent on Modern Technology

The history of Afghanistan is full of misfortunes. There have not been many governments whose achievements should be the sample of our historical pride. There have been only a few leaders accepted by all the ethnic groups living in the country as the national heroes. But considering all the miseries, during the five years of Taliban regime, they had banned the usage of modern technology even. The country's administrative system was being purely controlled through extremist and obsolete religious ideas and efforts were made to establish a so-called Islamic Emirate.

They had deployed their own perceived rules of Islamic Emirate in the society. Now it is really surprising to hear that Taliban have emerged using internet as a tool of promoting their ideologies via social networks such as Facebook, YouTube and Twitter.

Taliban ruled the country since 1996 to 2001. During this era; the usage of any type of technology was banned and anyone found using the technology such as radio, tab-recorder or any other sort of digital media was sentenced to punishment. Taliban were considering the modern technology as the products of Non-Muslims and Western world. They were used to believe that technology is the tool of propaganda used by Western people against Islamic Empire. But now according to the reliable sources and proves insurgent videos being published and uploaded over the internet indicate that they regularly use this technology so as to prop up their ideas and thoughts worldwide against their opponents.

The militants are hesitant to discuss the thinking behind their Internet U-turn, but last year's Arab Spring was a wake-up call to the Muslim world about the ability of social media to organize mass movements and communicate a message outside traditional channels.

Taliban's spokesman Zabihullah Mujahid said they would still ban the Internet or any other media outlet if they were used for "un-Islamic" purposes, but for now they are happy to use it as a public relations tool. They have set up an official website featuring propaganda videos depicting their campaigns against US-led NATO forces in Afghanistan, including scenes of attacks and bombings.

They are now regarding the social media such as Facebook, Twitter and YouTube as great tools of passing their messages and communicating way out of their under control territories. Along using the internet and media they still insist on banning them in the society if they are not used for the Islamic Empire's enlargement purposes.

Mental Health Problems among Afghans

The long term war in Afghanistan has left grave impacts on all fields of life in Afghanistan including social, political and economic sectors. The unremitting bloodshed and killings have extensively influenced the psychology of Afghan people. According to Ministry of Public Health (MoPH) over sixty percent of the Afghan population suffers from mental health problems.

Major portion of that figure is formed by women. Afghan women have been suffering throughout the history of Afghanistan. Although more than ten years of the collapse of Taliban's government have passed, in many parts of Afghanistan the women have to follow Taliban's rules and regulations.

The reasons for this high figure are described as continuation of war, poverty, poor economy and lack of employment opportunities. Instability persists in the country as the influences of insurgents are extending. NATO troops and Afghan National Security Force (ANSF) have been operating against militants.

These operations cost lives of soldiers and civilians and billions of dollars. In spite of that momentum of terrorism does not seem to be reversing. The lingering war is affecting the mental health of Afghans. Another prominent reason for psychological problems of Afghans is deemed the increasing rate of poverty.

According to a report of U.N. High Commissioner for Human Rights released in March, 2010, nine million Afghans or 36 percent of the population "are believed to live in absolute poverty and a further 37 percent live only slightly above the poverty line" despite about $35 billion of outside aid sent to the country between 2002 and 2009.

Unemployment in the country has caused many people grow mental problems or go astray. Based on the estimation, around 60 percent of the Afghan population is formed by youths most of whom are unemployed. Unemployment is causing the Afghans to illegally travel to other countries at the risk of their lives, join insurgency or commit social crimes.

Although thousands of Afghan youths are engaged in security sector and can be seen in the uniforms of police and army, major portion of Afghan labor force is being wasted because of very little development in industrial sector and non availability of job opportunities in other sectors of Afghanistan.

Living a life in Afghanistan is extremely difficult. The people living in country where future is completely ambiguous and insecure would with no doubt grow mental problems and this must not be seen as surprising factor.

EDITORIAL : THE KHALEEJ TIMES, UAE

Aleppo’s conundrum

There has been an upsurge in violence across Syria. President Bashar Al Assad having promised Russia not to use heavy arsenal against his own people seems to be in a fix. But reports say that helicopters, air force fighter jets and tanks are being used against dissidents, which hints at the flare in fighting in response to hit-and-run attacks from the opposition militant outfits.

The fact that formal troops stationed on the borders with Turkey have been called in to serve in Aleppo, the second biggest theatre of uprising, is a worrisome proposition. This is definitely bound to give an impetus to the troops already inside Aleppo – apparently forcing the regime to make an attempt to crush the rebel elements. While both sides seem to be in a warring mood with no inclination for a negotiated settlement, days and weeks to come might witness renewed fighting and human rights violations.

The problem while handling the crisis in Syria is that it is compounded with utter confusion. The poles of power are so repelling that a meaningful interaction has been lacking. On the one hand, the United States and many of the Western countries want Assad to exit, and at the same time they are bothered with the fallout that this vacuum will bring to the entire region, especially with relevance to the uneasy peace that Syria has lived with Israel and its neighbours. The refugee exodus on the borders with Iraq, Turkey, Lebanon and Jordan, thus, is more than enough to unnerve the region, as a complete implosion would result in redrawing the demographic and socio-political realities of the Middle East.

The softer tone of diplomacy practicised by UN special envoy Kofi Annan is not getting any results. Moreover, the hype that Russia has raised over Western efforts meant for shaking the dispensation in Damascus has pushed the entire issue in a Cold War-like decorum. This is only resulting in more and more killings at the hands of the government and the rebel forces. With more than 16,000 deaths in a year of uprising, Syria is a perfect flashpoint for intervention. It remains to be seen how geopolitical considerations come to carve out a solution that is in wanting. It’s time to take up the Syrian issue more seriously than pronouncing it on paper resolutions. If the Six-Point peace plan is not working, now is the time to either fine tune it or replace it with a new one. There is no logic in counting the dead, as stakeholders play on a guessing game.

Transition in Egypt

There is no dearth of alternatives when it comes to forming a government in Egypt. The nomination of Hesham Kandil as the new Prime Minister must have surprised many, but it has gone well into the script the strife-torn country has witnessed since the uprising in Tahrir Square that changed the politics of the region for good.

President Mohammad Mursi was certainly at pains in picking up a chief executive for his government, and the issue was further compounded with the powerful military spelling out its preferences for the job. The suspension of the popularly elected parliament, dominated by the Islamists, and the scrapping of powers vested in the office of the president have literally left the transition in Egypt tasteless — and certainly not the one for which the Egyptians struggled. Now it remains to be seen what difference the low profile Kandil can make on the political spectrum that has been torn into two authoritative zones between the army and the presidency.

The litmus test for Mursi and his nominee, Kandil, will come when they will opt for candidates of credentials for the high profile ministries of foreign affairs, defence and homeland security affairs. With the army unrelenting in its approach, and more than eager to preserve the status quo that former dictator Hosni Mubarak blessed it, it is going to be a war of attrition between the organs of the state. Unfortunately, the judiciary is not in a position to assert itself, as working under the circumference of the constitution there is hardly any room for change. Mursi on his part, notwithstanding the radical agenda that his party the Muslim Brotherhood propagates, has walked a finer line and exhibited a reconciliatory trend with the army and other political stakeholders. To what extent the mathematics works in empowering the people is difficult to guess at this point of time. Transition in Egypt is still a painful exercise.

EDITORIAL : THE NEW ZELAND HERALD, NEW ZELAND

In a "workshop" at the National Party conference last weekend Social Development Minister Paula Bennett admitted that it was possible for beneficiaries sharing a house to receive more than one accommodation supplement. She said this was not unlawful and her officials at Work and Income NZ did not consider it fraud but she thought most people would see it as a "rort". She is right. Most people are probably astonished.

How hard could it be to pay the accommodation supplement to a household rather than to individuals? Surely every applicant has to specify the address of the accommodation and its rent. The most primitive database could easily detect more than one claim for the same address.

But it is probably a little more complicated than it first appears. Households of two or more beneficiaries are likely to be transient arrangements. One of the tenants might be nominated to receive the supplement but if that person moved out, or took a job, one of the others would need to apply for the rent subsidy. Often beneficiaries may be flatting with an employed person, how much of the total rent should then be subsidised? It becomes easier to see why supplements, like benefits, are paid to individuals.

Even so, there seems no excuse for the total paid in supplements to individuals to exceed the property's rent, which can happen, according to the minister. If she knows that, her department must record the total rent on the property, which means it could easily stop the rort. It also suggests landlords are not taking advantage of multiple accommodation supplements by raising the rent.

Accommodation grants have long been criticised as a benefit to landlords rather than tenants. It is claimed they do nothing to improve access to housing or contain house prices, and that the money would be better spend building more state rentals.

But Ms Bennett says even adult children of state house tenants can be receiving accommodation supplements for a house let to the main tenant at an income-related rent of $80 a week. She says she and Housing Minister Phil Heatley are working with Inland Revenue on ways to stop this sort of thing. It should not be hard.

One solution would be to pay the supplements in the form of a voucher that landlords could redeem from the department. The Government is considering paying other benefits in kind rather than cash. Ms Bennett said food parcels might be delivered instead of emergency grants for food. Likewise, a rent voucher would ensure the accommodation supplement could not be spent on anything else.

But the fact that the supplement is paid through Inland Revenue may be the crux of the problem. Since it is available to low income earners as well as beneficiaries it is probably more convenient to pay it as a tax credit, but it must be possible for Inland Revenue's systems to check that multiple supplements are not paid for the same address. The tax department's traditional reluctance to disclose its data for other purposes surely does not prevent it being used to check for welfare fraud. Tax and benefits are two sides of the same coin.

Accommodation supplements became a larger part of the welfare system when some basic benefits were cut by up to 25 per cent in the 1991 "mother of all budgets". That reform, making the system more "targeted" to proven needs, has endured for nearly 21 years.

It has played a large part in improving the public finances, balancing the budget for much of that time, and enabling the economy to meet international crises fairly well.

If rorts have developed in supplementary benefits in the meantime, it should be no surprise.

But they must be stopped.

EDITORIAL : THE KOREA HERALD, SOUTH KOREA

Distrust in banks

A bank run occurs when a lot of customers, fearing the bank may turn insolvent, decide to withdraw their deposits at the same time. But what if angry depositors, feeling cheated by a bank, decide to demand cash or transfer their money to a different financial institution?

There might not be much chance of such an anger-driven bank run happening, but it is not theoretically impossible, given what one harebrained bank did to its customers.

Shinhan Bank demanded higher rates of interest on their loans to depositors with secondary education, while charging lower rates on those with a doctorate or a master’s degree. It simply ignored individual creditworthiness when determining the rates to be applied on its loans. What is even more infuriating is that this discriminatory loan policy obtained approval from the Financial Supervisory Service.

According to a report from the state watchdog Board of Audit and Inspection, Shinhan added the level of education as one of the criteria to be used in determining lending rates and obtained approval from the Financial Supervisory Service in April 2008. The state watchdog said this discriminatory policy, which had lasted until May this year, gave the bank extra profits during the 2008-11 period. In addition, it said, 14,138 requests for unsecured loans, or 31.9 percent of the total, were turned down simply because the applicants’ levels of education were low.

Shinhan offered a lame excuse when it admitted to using education as a criterion for lending rates. It said it stopped using it after customers had been with the bank six months ― a period which it said was long enough to determine their creditworthiness without reference to education.

Many, including the victims, have good reason to wonder if it wanted to maximize its profits by discriminating against its customers. The bank could have obtained information on their credit standings from credit-evaluation agencies. But it didn’t.

The state watchdog says Shinhan was the only bank to use a borrower’s level of education as a criterion for creditworthiness. But it says that Shinhan, Woori and two other banks made unwarranted profits by resorting to other discriminatory and other inappropriate surcharges on loans ― 242.7 billion won in 2009, 482.7 billion won in 2010 and 329.6 billion won in 2011. One such example was the application of higher rates on loans to single borrowers than to married ones.

Even more serious are allegations that Kookmin Bank doctored loan documents. To determine whether or not falsification was limited to Kookmin Bank, the Financial Supervisory Service demanded all other commercial banks check their loan documents and report their findings.

The case came to the fore when a group of borrowers recently filed a complaint with police that a Kookmin branch tampered with documents to demand that borrowers pay back loans ahead of maturity dates. The police say they are investigating an allegation that maturity dates were falsified on the documents submitted to obtain loans to pay for apartment purchases in installments.

The same Kookmin branch is also accused by one of the borrowers of inflating the amount of money loaned to him, from 24 million won to 192 million won, by tampering with the loan document. The signature affixed to the document was reportedly confirmed not to belong to the borrower.

All these loan scandals are cropping up at a time the Fair Trade Commission is conducting an investigation into an allegation that commercial banks colluded with brokerages in fixing the rates of certificates of deposit with three-month maturity ― the benchmark for floating rates ― to increase their profits.

Now the question is: What was the financial watchdog doing when widespread fraud was threatening to shake the foundation of the banking industry? What would it say to a claim that it turned a blind eye to the banks when they were engaged in massive fraud?

If no action is taken to restore public confidence in the banking industry, customers may move their money away from banks. The administration needs to begin devising laws to protect bank customers immediately.

President’s apology

It cannot be a mere coincidence that President Lee Myung-bak joined his predecessors when he offered a public apology on the corruption of some of his kin and his closest political allies on Tuesday.

Quite a few claim that it is not just personal weaknesses but built-in flaws in the nation’s presidential system of governance that are responsible for corruption among those close to the president. Most notable among them is the concentration of power in what is dubbed the imperial presidency.

That said, corruption cases involving Lee’s kin and close supporters have truly been disappointing to those who believed him when he promised to make his administration cleaner that its predecessors. But the seeds of corruption had already been planted ― even before he launched his administration.

His older brother, Lee Sang-deuk, and Choi See-joong, who was considered his political mentor, allegedly took huge sums of money from businesses during the run-up to the 2007 presidential election. Part of the money, if not all, was suspected of finding its way into Lee’s campaign coffers. Choi’s defense counsel recently told the court that he took the money to support Lee’s nomination.

Lee should have learned a lesson from his predecessors, Kim Young-sam and Kim Dae-jung in particular, each of whom saw his son sent to prison for bribery. But he didn’t. The consequence was that he had to apologize twice on corruption cases involving his relatives and supporters ― this time and in February. It is anyone’s guess how many more will face bribery charges.

Commenting on Lee’s latest apology, the ruling Saenuri Party said a system should be established to shield those close to the president from the temptation to take money from business concerns. Few would dispute that the nation needs new preventive mechanisms, both legal and institutional. But this is easier said than done, given that it would require new legislation and even a constitutional revision.

This is not to say that the political community should sit idly by. Instead, the ruling and opposition parties may well take up such a proposal to establish a new law-enforcement agency empowered to investigate cases involving the presidential kin, aides and other powerful figures and prosecute errant ones.

Aside from proposed institutional improvements, each presidential hopeful will have to take extra caution against receiving illegal contributions from businesses if he or she wishes to avoid following Lee’s footsteps.

Distrust in banks

A bank run occurs when a lot of customers, fearing the bank may turn insolvent, decide to withdraw their deposits at the same time. But what if angry depositors, feeling cheated by a bank, decide to demand cash or transfer their money to a different financial institution?

There might not be much chance of such an anger-driven bank run happening, but it is not theoretically impossible, given what one harebrained bank did to its customers.

Shinhan Bank demanded higher rates of interest on their loans to depositors with secondary education, while charging lower rates on those with a doctorate or a master’s degree. It simply ignored individual creditworthiness when determining the rates to be applied on its loans. What is even more infuriating is that this discriminatory loan policy obtained approval from the Financial Supervisory Service.

According to a report from the state watchdog Board of Audit and Inspection, Shinhan added the level of education as one of the criteria to be used in determining lending rates and obtained approval from the Financial Supervisory Service in April 2008. The state watchdog said this discriminatory policy, which had lasted until May this year, gave the bank extra profits during the 2008-11 period. In addition, it said, 14,138 requests for unsecured loans, or 31.9 percent of the total, were turned down simply because the applicants’ levels of education were low.

Shinhan offered a lame excuse when it admitted to using education as a criterion for lending rates. It said it stopped using it after customers had been with the bank six months ― a period which it said was long enough to determine their creditworthiness without reference to education.

Many, including the victims, have good reason to wonder if it wanted to maximize its profits by discriminating against its customers. The bank could have obtained information on their credit standings from credit-evaluation agencies. But it didn’t.

The state watchdog says Shinhan was the only bank to use a borrower’s level of education as a criterion for creditworthiness. But it says that Shinhan, Woori and two other banks made unwarranted profits by resorting to other discriminatory and other inappropriate surcharges on loans ― 242.7 billion won in 2009, 482.7 billion won in 2010 and 329.6 billion won in 2011. One such example was the application of higher rates on loans to single borrowers than to married ones.

Even more serious are allegations that Kookmin Bank doctored loan documents. To determine whether or not falsification was limited to Kookmin Bank, the Financial Supervisory Service demanded all other commercial banks check their loan documents and report their findings.

The case came to the fore when a group of borrowers recently filed a complaint with police that a Kookmin branch tampered with documents to demand that borrowers pay back loans ahead of maturity dates. The police say they are investigating an allegation that maturity dates were falsified on the documents submitted to obtain loans to pay for apartment purchases in installments.

The same Kookmin branch is also accused by one of the borrowers of inflating the amount of money loaned to him, from 24 million won to 192 million won, by tampering with the loan document. The signature affixed to the document was reportedly confirmed not to belong to the borrower.

All these loan scandals are cropping up at a time the Fair Trade Commission is conducting an investigation into an allegation that commercial banks colluded with brokerages in fixing the rates of certificates of deposit with three-month maturity ― the benchmark for floating rates ― to increase their profits.

Now the question is: What was the financial watchdog doing when widespread fraud was threatening to shake the foundation of the banking industry? What would it say to a claim that it turned a blind eye to the banks when they were engaged in massive fraud?

If no action is taken to restore public confidence in the banking industry, customers may move their money away from banks. The administration needs to begin devising laws to protect bank customers immediately.

EDITORIAL : THE STADAO, BRAZIL

A análise prospectiva das contas externas exige rigor

O governo vê com muita satisfação a evolução das contas externas. E se hoje elas podem realmente descartar preocupações, é necessário analisá-las com redobrada atenção para ver se de fato não apresentam fragilidades que, no futuro, poderiam se transformar em problemas.

Ao analisar a conjuntura econômica do Brasil, o Fundo Monetário Internacional (FMI) insiste num ponto que parece negligenciado pelas nossas autoridades monetárias: por evidente excesso de consumo, o País depende demais da poupança externa para financiar seu desenvolvimento. A insuficiência de poupança interna para garantir um crescimento razoável é, certamente, um dos pontos mais frágeis da nossa economia.

O governo se regozija com o fluxo de Investimentos Estrangeiros Diretos (IED) elevado que, em termos líquidos, atingiu US$ 29,720 bilhões no primeiro semestre deste ano, apenas ligeiramente abaixo do valor registrado no mesmo período de 2011(US$32,502 bilhões), apesar da crise internacional. Nada autoriza a pensar, porém, que isso continuará, pois depende da evolução da demanda no Brasil e também da disponibilidade de capitais no exterior. Existe um fator que não é muito levado em conta. É que a desvalorização do real permite que o investidor estrangeiro disponha de mais recursos em moeda nacional para seus investimentos. Só que a dependência da poupança externa reduz a liberdade de ação do País, que pagará juros e dividendos.

A exportação, que é essencial para a formação da poupança nacional, representava 30,6% do PIB, em 2004, mas sua participação já caiu para 26%, em 2011. E cabe lembrar que ela se sustenta essencialmente com as vendas de commodities, cujos preços subiram, mas cujo valor acrescido é baixo.

A evolução das cotações na Bolsa de Valores mostra que não se pode contar com as operações nesse mercado como receitas firmes.

Verificamos que o saldo da conta financeira, que no 1.º semestre de 2011 era 163,7%, superior ao déficit das transações correntes, neste ano representou apenas 59% daquele déficit.

Os empréstimos externos captados pelo Brasil estão se mantendo quase ao mesmo nível do ano passado, mas têm um custo maior, o que aumenta o serviço da dívida.

Mas, certamente, o dado mais importante, por não ser apenas contábil, é o resultado do câmbio contratado, cujo saldo de US$ 39,8 bilhões, no 1.º semestre de 2011, caiu para US$ 22,9 bilhões, neste ano.

EDITORIAL : THE DAILY LIBERATION, FRANCE

Débâcle

Plus rien ne marche. Ni les annonces solennelles sommet de crise après sommet de la dernière chance, ni les centaines de milliards d’euros injectés en catastrophe quand un domino s’effondre et que le suivant se met à trembler. Plus rien ne marche et, paradoxe des paradoxes, ces paroles et ces mesures contribuent à aggraver la catastrophe qu’elles devraient conjurer. Erreur de perspective : refuser de voir que cette crise, d’origine économique, a muté pour changer de nature et devenir d’essence politique, appelant des réponses politiques, articulées autour d’un projet politique. L’Europe, telle qu’elle se lézarde, en est-elle capable ? Si oui, est-elle destinée, ou condamnée, à devenir pour ceux qui partagent la même monnaie un espace fédéral où la souveraineté des Etats sera partagée ? Des mécanismes de contrôle supranationaux seront-ils dès lors inéluctables pour éviter que chaque pays ne tire la couverture à lui, voire mente effrontément à ses partenaires ? La Banque centrale européenne doit-elle voir ses missions profondément réformées dans un sens que seuls des chefs d’Etat et de gouvernement peuvent définir ? Aucune de ces questions, pourtant déterminantes, n’obtient depuis 2008 de réponse claire. Aucune de ces options n’est débattue devant les citoyens de l’UE. Comme si faire de la politique en Europe revenait à ouvrir une boîte de Pandore autrement plus explosive que la production en série de rustines inefficaces. En attendant, dans la débâcle économique, seule la crise prospère.

EDITORIAL : THE GLOBE AND MAIL, CANADA

With complaints about security leaks, Romney risks playing to Obama’s strength

For a country terribly scarred by terrorism, national security is a sacred trust. So it’s understandable that Republicans are tempted to complain endlessly about a series of leaks from the country’s security establishment that cast President Barack Obama in a favourable light.

The Republicans have raged on about the leaks for many weeks, and when he delivered a major foreign policy speech Tuesday, presidential candidate Mitt Romney piled on. In so doing, he gave voice to a fair concern, but one that may not help his own aspirations.

Not only have operational details of the successful raid on Osama bin Laden been leaked; so too, recently, was information about a secret “kill list” of terrorists targeted for assassination, each case requiring the authorization of the President himself. It’s not the first time the White House has maintained an enemies list, but – if it was indeed the source, which Mr. Obama’s administration has denied – it’s the first time it has publicly bragged about it.

Another leak revealed that the President had secretly ordered the acceleration of cyberattacks on computer systems that control Iran’s nuclear enrichment facilities.

Charging that “Lives of American servicemen and women are at stake. ...this isn’t a partisan issue; it’s a national security crisis,” Mr. Romney called for an investigation by a special counsel, and demanded, “What kind of White House would reveal classified material for political gain?”

The answer seems obvious: any kind of White House, and especially one that wishes to disprove opponents’ claims of weakness.

Indeed, elsewhere in his speech, Mr. Romney attempted to portray Mr. Obama as a 97-pound weakling when it comes to defending U.S. interests abroad. How does evoking the President’s steely-eyed response to terrorists and state terror advance this particular thesis?

Poll results in the U.S. routinely show Mr. Obama more than 10 points ahead of Mr. Romney on foreign policy. Many show the opposite is true when it comes to the economy. By complaining about the security leaks, Mr. Romney only risks building up Mr. Obama’s lead.

It is true that the release of secret operational details has the potential to harm U.S. interests. Yet the sustained attention only serves to focus on one of Mr. Obama’s strengths, and distract from the real issue in the presidential campaign: the economy.

With complaints about security leaks, Romney risks playing to Obama’s strength

For a country terribly scarred by terrorism, national security is a sacred trust. So it’s understandable that Republicans are tempted to complain endlessly about a series of leaks from the country’s security establishment that cast President Barack Obama in a favourable light.

The Republicans have raged on about the leaks for many weeks, and when he delivered a major foreign policy speech Tuesday, presidential candidate Mitt Romney piled on. In so doing, he gave voice to a fair concern, but one that may not help his own aspirations.

Not only have operational details of the successful raid on Osama bin Laden been leaked; so too, recently, was information about a secret “kill list” of terrorists targeted for assassination, each case requiring the authorization of the President himself. It’s not the first time the White House has maintained an enemies list, but – if it was indeed the source, which Mr. Obama’s administration has denied – it’s the first time it has publicly bragged about it.

Another leak revealed that the President had secretly ordered the acceleration of cyberattacks on computer systems that control Iran’s nuclear enrichment facilities.

Charging that “Lives of American servicemen and women are at stake. ...this isn’t a partisan issue; it’s a national security crisis,” Mr. Romney called for an investigation by a special counsel, and demanded, “What kind of White House would reveal classified material for political gain?”

The answer seems obvious: any kind of White House, and especially one that wishes to disprove opponents’ claims of weakness.

Indeed, elsewhere in his speech, Mr. Romney attempted to portray Mr. Obama as a 97-pound weakling when it comes to defending U.S. interests abroad. How does evoking the President’s steely-eyed response to terrorists and state terror advance this particular thesis?

Poll results in the U.S. routinely show Mr. Obama more than 10 points ahead of Mr. Romney on foreign policy. Many show the opposite is true when it comes to the economy. By complaining about the security leaks, Mr. Romney only risks building up Mr. Obama’s lead.

It is true that the release of secret operational details has the potential to harm U.S. interests. Yet the sustained attention only serves to focus on one of Mr. Obama’s strengths, and distract from the real issue in the presidential campaign: the economy.

EDITORIAL : THE AUSTRALIAN, AUSTRALIA

Political bipartisanship is essential for an NDIS

A NATIONAL Disability Insurance Scheme is reform that appears to have everything it needs to be successful. It is backed by the Productivity Commission, supported by the disability services sector and enjoys community and political support. Although it promises to improve the lives of Australians with disabilities, it may never be delivered.

Yesterday's meeting of state and federal governments failed to break the political impasse. Although the failure should be shared, it must prompt the Gillard government to rethink its strategy, revisit its model and redouble its efforts to allay the concerns of the non-Labor states - or it will never be realised. It is also a test of whether the co-operative model of federalism has been temporarily set back or is broken.

Julia Gillard and the Minister for Families, Community Services and Indigenous Affairs, Jenny Macklin, deserve credit for their commitment to an NDIS and allocating $984 million in start-up funds. It follows a campaign by the disabilities services sector, whose efforts were turbocharged by the advocacy of the then parliamentary secretary for Disabilities and Children's Services, Bill Shorten.

The Productivity Commission recommended an NDIS model that could help 400,000 Australians with disabilities by providing personalised care and support services. The scheme would focus on early intervention, a life-long approach to support and increasing choice in the delivery of services. It would see these support services delivered by community providers and tailored to individual needs. The commission recommended the scheme be fully funded by the commonwealth at a cost of $6.5 billion in addition to the $7.1bn already spent each year on disability services.

A reform of this kind, however, needs bipartisanship to succeed, as implementation will take several years. It requires state and federal co-operation and a long-term funding plan and revenue stream. This is where politics can pay a dividend if our political leaders are able to surrender their short-term political interests and instead look to the long-term national interest and cut a deal. Otherwise, with parliaments constrained by short electoral cycles, major reforms are subject to the vagaries of politics.

The prospect of bipartisanship at the federal level was dashed when the Prime Minister rejected offers by Tony Abbott to work with the government on the design and implementation of an NDIS based on the commission's model. But it is not only the federal government who failed to seize the opportunity for co-operation. Several premiers used yesterday's meeting to score political points rather than work with the federal government to deliver the reform. Queensland's Campbell Newman remains implacably opposed to contributing any funding, even though his state spends less on disability services, on a per capita basis, than any other state. The non-Labor state governments again pledged their in-principle support for an NDIS, but could not reach agreement with the commonwealth. Both blame each other.

Unless our politicians are able to reach across the political divide and work together, achieving consensus on important national reforms will remain ever elusive.

China spat less than it seems

PERHAPS aside from the US alliance, none of our foreign relationships generates as much politicking as our links with China. Yet for all the bluff and bluster of party politics, the attitude of our major parties is essentially bipartisan and well calibrated. The reaction to Tony Abbott's Beijing speech therefore says more about domestic political volatility than it does about this crucial trading relationship.

Mr Abbott made a point of stressing his support for Chinese investment in Australia, but was also frank with his hosts about the difficulties posed by the nature of the communist giant's state-owned enterprises. By raising the national interest risks in allowing "a foreign government or its agencies to control an Australian business" the Opposition Leader was stating the obvious and reflecting a continuity with the policy settings of the Rudd and Gillard governments.

The Australian is a robust supporter of the foreign investment that underpins our national development, but we also recognise the issues raised in deals with nations, like China, where reciprocal investments from Australia would never be countenanced. In recent years, Wayne Swan has been confronted with repeated Chinese investment dilemmas. In 2009, the Treasurer was spared a difficult decision when the controversial Chinalco deal with Rio Tinto collapsed. But in the same year China Non-Ferrous Metal Mining was blocked from buying a controlling stake in rare earths miner Lynas. The government also blocked China's Minmetals bid for Oz Minerals' Prominent Hill mine because of proximity to the Woomera defence rocket range. And this year Chinese telco Huawei was blocked, on security grounds, from participating in the National Broadband Network. Each of these decisions was different and each, no doubt, was assessed on its merits. But the state's role in these enterprises was a significant factor.

Still, while the government's criticism of Mr Abbott has been more opportunistic than statesmanlike, it does serve as something of a warning. Xenophobic passions can easily be stirred on foreign investment, especially when it comes to China and regional land purchases. So while the alternative prime minister is right to be frank with Beijing, he needs to be equally measured with his domestic constituency, urging a rational approach rather than emotive posturing on Chinese investment.

PNG's reconciliation chance

CERTAINTY is not a feature of PNG politics, but the joint public pledge by Michael Somare, Julius Chan and Paias Wingti to support caretaker Prime Minister Peter O'Neill augurs well for the country's future.

All are former prime ministers. Sir Michael, Grand Chief and PNG's founding father, was before the election locked in a bitter battle with Mr O'Neill over rival claims to the prime ministership - a chaotic farce that also saw rival claimants for the offices of police commissioner and defence force commander.

Now, after the election and with vote counting concluding, indications are that Mr ONeill's People's National Congress will be the new parliament's biggest party. Sir Michael, comfortably re-elected in his own East Sepik seat, says he has put aside his differences to support a government of reconciliation. For this Sir Michael deserves great credit. Only weeks ago he was fulminating over the claimed injustice of his dismissal. Now, in pledging the support of his National Alliance for Mr O'Neill, he says he wants no more disruptions. With endorsements from the parties of Sir Julius and Mr Wingti, this should boost Mr ONeill's chances of forming a stable government to end the debilitating rivalries of recent times and create the political stability the country's institutions and economic development so desperately need.

It will not be plain sailing. Mr O'Neill's ambitious former deputy, the controversial Belden Namah, whose PNG Party has won six seats, claims he is building the numbers to become prime minister, though that seems unlikely given the backing now pledged to Mr O'Neill by the powerful leaders who have aligned themselves with him. Mr Namah retains the potential, however, to spoil the consensus emerging for Mr O'Neill, who claims to have the backing of at least 56 of the 111 members of the parliament. If he is to achieve the political stability so essential for PNG's progress, Mr ONeill should continue to cast his net wide, seeking support from as many as possible across the range of parties and independents set to take their seats in the new parliament.

Only by doing so will he be assured of the numbers necessary to close the shameful chapter of the past few chaotic months, to start afresh with a new mandate and, hopefully, genuine political stability.