A new economic regime, a new definition for wealth needed

The COVID-19 pandemic has shown us how imperfect the present economic construct is, writes former journalist and editor Tan Sri Johan Jaaffar in an opinion piece.

Jaaffarsays that the economic fallout from the COVID-19 pandemic should serve as a sobering check on humanity as a whole. Now is the right time, he says, to examine and change the entire structure of the economy which seems to benefit a few at the expense of many.

Here’s are his five key points:

1. The present capitalist practice is unjust and uncharitable

• Jaaffar says there is a need to promote the idea of a “moral economy”, one that is led not by greed and hubris but justice and fairness for all.
• "We are talking about companionate economic principles first and last."

2. Free-market thinking alone is not enough

• He reiterates that the economic structure and activities must must be hinged upon moral obligations.
• "It has to be a win-win situation for humanity as a whole. We must rebuild an economy where people’s rights supersede that of market demands."

3. The world has a monopoly problem

• Jaafar addresses the abundance of opportunities created by the Internet, yet the effect of a digital divide has widened wealth gaps.
• "We are creating super rich individuals and super companies. The Internet provides new opportunities but again, there is a huge gap between the players. The big get bigger and the small ones shrink and eventually disappear."

4. The growing gap between the rich and the poor

• Jaaffar says that it is unacceptable that one percent of humanity controls 90 percent of the world’s wealth, while one in every five human beings is still living on RM4 a day.
• "It is sacrilegious to have financial institutions making huge profits while lesser mortals suffer from the threat of bankruptcies, disclosures and repossessions the world over, especially during troubling times like this."

5. Malaysia has an opportunity to rethink, rework and find alternatives

• Jaaffar called the Malaysian government to look at new ways to address the socio-economic disparity, through the Belanjawan 2021.
• "The old ways are not applicable anymore. New dynamics are in place. Our yearly budget should reflect that too. It should take into account important factors for our collective well-being, including justice and fairness."
• "It is not about helping Mak Cik Kiah on a one-off basis and leaving her to fend off the financial wolves at her door for the next eight months. It must truly reflect the kind of compassionate budget that it claims to be."