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Growth, Social Balance and Sustainability:Perspectives for Social Democratic Economicin Asia Policies “ but You Will Only Agree with Me

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Growth, Social Balance and Sustainability:Perspectives for Social Democratic Economicin Asia Policies “ but You Will Only Agree with Me 3 rd Edition / June 2011 Growth, Social Balance and Sustainability: Perspectives for Social Democratic Economic Policies in Asia “ But you will only agree with me that we have to draw up a programme which is not exclusively socialist but also democratic. Otherwise we cannot claim the name of Social Democrats and think about a solution of the social question” (August Bebel, 1869) Table of Content Greetings [4] Report of Socdem Asia 3rd Regional Conference 19-22 October, Jakarta, Indonesia [7] Left Turn [12] DEVELOPMENT FUNDING [14] Growth, Social Balance and Sustainability: Perspectives for Social Democratic Economic Policies in Asia [16] Editor in Chief: Amir Effendi Siregar Presentation by Mr. Gyu Youb Choi, Korea Democratic Labour Party - South Korea [19] Deputy Editor: Ivan Hadar Sri Lankan Social Democrats formed council to Editorial board: improve collaboration [21] Martin Manurung Charles Santiago Mian Manurung OPEN LETTER OF AKBAYAN REP. WALDEN BELLO Steven Sim Chee Keong TO PRES. BENIGNO SIMEON AQUINO III ON THE COUNTRY’S ECONOMIC WOES [28] Editor/Publisher address: Friedrich-Ebert-Stiftung Social Democracy and Business: Lessons learned Jalan Kemang Selatan II No. 2A from the 3rd Conference of the Network of Jakarta 12730 Social Democracy in Asia (Socdem Asia) [33] Phone: +62-21-7193711 Fax : +62-21-717 91358 Email: [email protected] Making Social Democracy Acceptable:A Report of the Exhibitions on Social Democracy [34] Publisher: *) Friedrich-Ebert-Stiftung Speaking For The Reformasi Generation (REFSA, Kuala Lumpur, 2009) [39] ISSN: 2086-3713 2011 Socdem Asia International Workers’ Day *) soft file available in www.socdem.asia Message [32] Asian Social Democracy Journal >> from the editors Greetings This is the third edition of Journal on So- fair distribution while economic competence cial Democracy in Asia. The main issue covered is mainly attributed to liberal or conservative in this edition has adopted the presentations parties. Many see growth as a precondition for and discussion during the 3rd Conference of distribution. Therefore, the electorate, espe- the Network of Social Democracy in Asia, 19 cially in difficult economic times, may tend to – 22 October 2010, in Jakarta, Indonesia with vote for those whom they think can guarantee the general theme “Growth, Social Balance them economic development and jobs. and Sustainability: Perspectives for Social In Asia, although social democratic val- Democratic Economic Policies in Asia”. ues were often the main foundations of the The most interesting topics of this confer- Asian countries’ independence, the need to ence which attended by representatives of so- foster high economic growth has led many cial democratic political parties, pre-parties, governments to embrace different values. For scholars and activists in Asia and Europe is example, Indonesia, the host of the confer- the relationship between social democratic ence, was founded based on the understand- parties and the business community. ing that ‘free-market capitalism’, or currently In Europe and in many parts of the world, there is the stereotypical perception that social democratic parties cannot deal with economy, particularly with business. In popular belief Social Democrats focus on social justice and << Asian Social Democracy Journal from the editors dubbed as ‘neoliberalism’, should never be that respects the basic interests, indepen- the basis of the country’s economic model. dence and national security of Mongolia. On the contrary, the country should develop The party has rich history of restoring the economy based on cooperative principles, independence and sovereignty of Mongolia, where common goods and social justice should gaining its recognition in international arena be top priorities. However, since 1965 until and creating modern industries and social now, Indonesia seems to have swayed from its facilities in the 20th century. Since the mid “founding fathers’” ideals. 1980’s MPRP started seeking ways to resolve Two other experiences showed differences the social issues faced in the country. In doing in development. In Mongolia, the ruling party so, MPRP has reflected new social trends from (Mongolian People’s Revolutionary Party/ reforms that took place in some countries and MPRP) has been transformed itself into a cen- regions of the world and critically reviewed its tre-left party with social democratic ideology ideology based on the fundamental interests of Mongolia. This has led to MPRP’s declara- Asian Social Democracy Journal >> from the editors tion in 1990 to abolish its old ideology and opposes U.S. neo-imperialism and aims for an follow social-democratic principles. From here, independent people’s economy to overcome the MPRP turned into an influential political the export-oriented principle; regulate finan- force with democratic and reformist values and cialization and speculation in the economy; became a ruling party in the first democratic overcome the subordination of trade and cur- election. And to this day, the party continues rency policies; abolish temp workers (irregular to play a leading role in implementing social workers), achieve full labor rights, strengthen reforms in Mongolia. small and medium business, revive agriculture, The economic policy of the MPRP is imple- etc and pursue the North-South Korea Eco- mented based on principles to renovate mar- nomic community. In particular, the Korean ket relations, to use an effective state coor- business community is very negative toward dination and to expand the social orientation social democracy. of the economy. One of the vital conditions Therefore, the suggestions for social demo- to accelerate economic development is to fur- cratic parties in the Asia–Pacific is creating a ther expand the market relations. Therefore, more just and prosperous region, through more MPRP is pursuing a policy to strengthen pri- efforts to overcome neoliberal globalization; vate property oriented economic system, to pursue an independent people’s economy; re- provide all means of support to the private alize free education and health care systems; sector and to promote individual’s initiatives abolish the irregular workers system; achieve and enthusiasm. In order to achieve this, our full labor rights; adopt a pro-employment and Party believes that it is important to stay pro-environmental growth strategy and pursue committed to creating more favorable busi- international cooperation and solidarity like ness environment. ALBA in South America. Another experience: Since 1948, when the Trough this biannual journal we still hope Republic of Korea’s first government was es- to identify different schools of thoughts, ideas tablished, Korea has been under the neo-colo- and experiences in Asian, European, Latin nialism of the U.S so that there has been no American and Asian countries in implement- space for Keynesianism. Instead, dictatorship ing the principles and perspectives of social and comprador capital have exploited and democracy. plundered people. Since 1997, Korean conser- This edition will also include a number of vatives have been following a U.S.-oriented articles from the Jakarta conference, other neo-imperialism strategy rather than the lib- “loose” articles, book’s review, as well as eral strategy of Europe and the U.S. profiles of social democratic organizations in Korean conservatives have focused on an Asia. In the next editions, we’ll discuss on export-oriented strategy for the chaebol. Es- “Social and Ecological Sustainable Design of pecially, IMF-imposed neoliberal policies were Economic Development: A New Paradigm for characterized by as spreading out temporary Development in Asia”, which is the topic of workers (irregular workers), growth without the Asian Social Democracy Conference in, welfare, policies to collapse agriculture and Ulan Bator, Mongolia, 1-2 July 2011. the privatization of public sectors since 1997 We hope that the coming journal will be Asian financial crisis. Because of them, the improved in its lay out and substances. Keep middle class collapsed and the gap between the faith in struggling for achieving the social the haves and the have-nots has become big- democracy world in Asia and other places of ger. In 2010, 88.5% of Korean people think the world. they are in the low-income bracket. The Korean Social Democratic Party (DLP) Editors << Asian Social Democracy Journal Report Report of Socdem Asia 3rd Regional Conference 19-22 October 2010, Jakarta, Indonesia Introduction the Friedrich Ebert Stiftung (FES) Indonesia. The Network of Social Democracy in Asia Participants of the 3-day Conference rep- (Socdem Asia) held its third (3rd) regional resented social democratic parties and move- conference in Jakarta, Indonesia from 19-22 ments from Cambodia, Germany, India, In- October 2011. The theme chosen for this con- donesia, Korea, Malaysia, Nepal, Philippines, ference is “Growth, Social Balance and Sus- Sweden, Timor Leste as well as Vietnam. tainability: Perspectrive for Social Democratic The key focus of the Conference will be to Economic Policies in Asia”. The Conference was discuss economic growth from the perspective jointly organized with the Indonesia-based of social democracy and how social democrats Institute of Welfare Democracy (IWD), the in Asia can offer a viable economic model as we Olaf-Palme International Center (OPIC) and anticipate the failure of the neoliberal model Asian Social Democracy Journal >> Report practiced by regimes across the region. The economy especially clarifying the
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