Apparently our local youths still think that it is their given birth right to work in the government sector (here for full news). Oh perhaps, their life is still full of roses that having no job is better than having a low-paying job in the private sector.
To solve this dilemma, here’s a thought. Considering the government sector is already saturated (or so as I was told) i.e. it can no longer employ the whole 6000 job-seekers (and it shouldn’t be!), there should be some mechanism in place that should stop the idea that everyone can get a government job. And at the same time, make people value their private sector job or at least stick to their private sector job until their contract ends (with good behaviour). So I say, increase the level of qualification requirement and make ‘private sector employment’ a pre-requisite to the ‘popular’ public sector job.
Now, with regard to the ‘elaun sara hidup’, I think it’s either we scrap it off OR give to ALL Bruneians, fair and square (after all everyone is doing their bits to develop the country, regardless of the sector, no?)
Salaam.
Showing posts with label unemployment. Show all posts
Showing posts with label unemployment. Show all posts
Wednesday, 12 November 2008
Friday, 1 August 2008
Are We Poor OR Are We Stupid?
It is sad to see and hear about the events happening in
The question, as rightly put by Mr. Brunei Resources, is “What Happened to Bruneians?”
Now, there are 2 schools of thoughts. One says that it is simply because we are poorer and the other says we are too materialistic that we don’t even know how to differentiate between what is right and what is wrong i.e we are stupid.
Unfortunately, we can never truly find out until a proper income gap analysis is carried out. It is imperative that we know how many Bruneians are poor, how poor and why they are poor. Without such analysis, then we can never know and we will only end up having the rich blaming the poor (of being immoral and shameless) and the poor blaming the system (of unfairness).
While I do not doubt the existence of those who are genuinely poor, I also believe that the pool of poor people in
Now, if I were an economic advisor to
- Get our statistics and figure right. We NEED to know our poverty statistics A.S.A.P.
- If the finding (whether this is made public or otherwise) is that there are indeed a large number of poor people in
- Lifting people off poverty does not simply mean giving them money. We need to be creative in giving them the means to make money. True, this is easier said than done given the unfortunate attitude of some (most?) of Bruneians who more than many times do not see the rationale behind the self-aid help. But with proper monitoring and perhaps some taught management skill, I’m sure there will be some positive results. The key is for the relevant agency to NOT to give-up. Don’t let one bad apple ruins the whole basket.
- It is time to differentiate the different types of goods available in the market. There are the luxurious and there are the normal ones. The problem in
- A credit monitoring system needs to be put in place. I cannot just go to any store and sign any credit agreement without a thorough check of my credit rating.
- It is time to review the TAP contribution. There is a need to increase the contribution from the employees. We need to make sure Bruneians save for their own future. And of course, since Brunei coffer by now must have filled with a lot of oil money, I would also say that the government needs also to increase its contribution into TAP not only into the account of those in the public sector but also to Bruneians in the private sector. Afterall, the money is saved for the future. This contribution from the government I believe could be the key to reduce the remuneration gap between the public-private sectors. It would help increase the attractiveness of the private sector and would (hopefully) alleviate the problem of lazy Bruneians who would rather be unemployed than do manual job.
- We need also to look at our system of income re-distribution. How do we re-distribute the income from the rich to the poor. While income tax may not be accepted in the near future, property tax certainly deserves some high level discussion now.
- I don’t know how good our police force or those in the NCB are in combating drug wars, but I pray with all my heart for them to be really good.
- Finally, I think too much subsidy make people too lazy.
Salaam.
Thursday, 13 March 2008
Leg Co: ..On POVERTY
I'm surprised, well actually not surprised that the issue of poverty was not heavily debated, despite HM's titah on the vision of zero poverty. Honestly, I feel really sad to hear that this issue will be tackled by yet ANOTHER poverty research. I mean, seriously... how much research do we need to prove that there ARE poor people in this rich country! And what is wrong with the research made by the UBD? Do we need to waste 3, 4, 5 more years and spend millions just to prove that there is no poverty in Brunei? I've heard about this poverty research like almost 10 years ago (if I remember, it was the year I started my first job) and until today I have not seen any national poverty-related policies besides the MUIB's zakat payment. And if there are recipients of Zakat, then surely there must be poverty..what more proof do we need?
People talk about absolute poverty vs relative poverty. For those who are not familiar with those terms, 'absolute poverty' is basically the number of people or households who cannot afford certain basic goods and services, while 'relative poverty' refers to the number of households (or families if you like) whose income falls below the national average income. So, a family of 6, earning only about $1200 a month definitely falls under the category of 'relative poverty'. They may probably able to buy the basic necessities with that income but that income surely must be below our median income.
If you ask me, I don't know what our median income is, but I suspect for a rich country like us, it should be quite high. So, my question is do we really need another research just to determine our median income? Or should we put our heads together to combat poverty NOW before it gets worse. I feel what Brunei needs actually is to form a serious national committee to address this issue.
Anyway, I don't know about you, but to me poverty issue shouldn't be under the jurisdiction of the Ministry of Culture Youth and Sports alone or poverty is not all about giving welfare benefits. It needs to be addressed in a holistic manner. The fundamental issue is the gap between the rich and the poor. An increasing relative poverty means that there is an unequal distribution of income i.e. there is a large gap between the rich and the poor. Therefore our main challenge is to reduce this gap, because to me income equality = zero poverty.
This should be debated. The ways and means to reduce the gap. It is not about getting salary increments (because to me that in itself will actually result in a higher gap. Why? Because not all of the poors are employed in the government sector) it is more about formulating policies that specifically deal with the poors. For example, the national housing scheme. There should be a separate policy or separate queue (if you are trying to picture it in your head) for those who fall under the category of 'relative poverty' with its own separate terms and conditions, and prices (or no price at all!)
What about subsidies and taxes? These have been the traditional means of income redistribution. Surely, it is high time Brunei reviews its subsidies. Should those who are earning above the median income level pay the same subsidised price of rice as those earning below the median income? Now, there seems to be a serious talk about the irresponsibility of our people (who presumably think that electricity and water are their God's given rights and think that electricity probably comes from air) in paying the utility bills which is costly to the government (see here). If our people continue to be thick-headed and the government decides to reduce the various utility subsidies, then what about the poors? Now, taxes....well this is THE number one taboo in Brunei. But let's start with some form of property taxes. Number 1: tax on rental properties (to help finance the national housing scheme for the poors).
And then there is the related issue of unemployment. I wrote about this in the last post. I don't know how to further express myself but this issue NEEDS to be addressed properly. If the government can no longer afford to provide full employments in the public sector, then whether we like it or not, the government needs to do something about the wage gap because unemployment can cause poverty.
What about education? Yes, we do have the 12 year education policy, but my question is does this cover EVERYone? I'm thinking about those teenagers who got pregnant/married before they finish their 12 year education. How can we help them? How do we expect them to provide for their children if they don't have enough education. Won't it contribute to the poverty spiral?
There are more to think of! Such as how do we help the poors get out of their poverty condition? You know more in the lines of Give-a-man-a-fish-and-you-feed-him-for-a-day, Teach-a-man-to-fish-you-feed-him-a-lifetime.
Oh dear, it's almost midnight. I was supposed to have a break from 'thinking' today after submitting a chapter to my supervisor :) Anyway, the whole point of this post is to actually implore the relevant government agencies to STOP wasting time and resources 'wondering' whether or not we have poverty. Whatever poverty we have now, I think should still be manageable. So please don't wait until it gets too late.
Salaam.
People talk about absolute poverty vs relative poverty. For those who are not familiar with those terms, 'absolute poverty' is basically the number of people or households who cannot afford certain basic goods and services, while 'relative poverty' refers to the number of households (or families if you like) whose income falls below the national average income. So, a family of 6, earning only about $1200 a month definitely falls under the category of 'relative poverty'. They may probably able to buy the basic necessities with that income but that income surely must be below our median income.
If you ask me, I don't know what our median income is, but I suspect for a rich country like us, it should be quite high. So, my question is do we really need another research just to determine our median income? Or should we put our heads together to combat poverty NOW before it gets worse. I feel what Brunei needs actually is to form a serious national committee to address this issue.
Anyway, I don't know about you, but to me poverty issue shouldn't be under the jurisdiction of the Ministry of Culture Youth and Sports alone or poverty is not all about giving welfare benefits. It needs to be addressed in a holistic manner. The fundamental issue is the gap between the rich and the poor. An increasing relative poverty means that there is an unequal distribution of income i.e. there is a large gap between the rich and the poor. Therefore our main challenge is to reduce this gap, because to me income equality = zero poverty.
This should be debated. The ways and means to reduce the gap. It is not about getting salary increments (because to me that in itself will actually result in a higher gap. Why? Because not all of the poors are employed in the government sector) it is more about formulating policies that specifically deal with the poors. For example, the national housing scheme. There should be a separate policy or separate queue (if you are trying to picture it in your head) for those who fall under the category of 'relative poverty' with its own separate terms and conditions, and prices (or no price at all!)
What about subsidies and taxes? These have been the traditional means of income redistribution. Surely, it is high time Brunei reviews its subsidies. Should those who are earning above the median income level pay the same subsidised price of rice as those earning below the median income? Now, there seems to be a serious talk about the irresponsibility of our people (who presumably think that electricity and water are their God's given rights and think that electricity probably comes from air) in paying the utility bills which is costly to the government (see here). If our people continue to be thick-headed and the government decides to reduce the various utility subsidies, then what about the poors? Now, taxes....well this is THE number one taboo in Brunei. But let's start with some form of property taxes. Number 1: tax on rental properties (to help finance the national housing scheme for the poors).
And then there is the related issue of unemployment. I wrote about this in the last post. I don't know how to further express myself but this issue NEEDS to be addressed properly. If the government can no longer afford to provide full employments in the public sector, then whether we like it or not, the government needs to do something about the wage gap because unemployment can cause poverty.
What about education? Yes, we do have the 12 year education policy, but my question is does this cover EVERYone? I'm thinking about those teenagers who got pregnant/married before they finish their 12 year education. How can we help them? How do we expect them to provide for their children if they don't have enough education. Won't it contribute to the poverty spiral?
There are more to think of! Such as how do we help the poors get out of their poverty condition? You know more in the lines of Give-a-man-a-fish-and-you-feed-him-for-a-day, Teach-a-man-to-fish-you-feed-him-a-lifetime.
Oh dear, it's almost midnight. I was supposed to have a break from 'thinking' today after submitting a chapter to my supervisor :) Anyway, the whole point of this post is to actually implore the relevant government agencies to STOP wasting time and resources 'wondering' whether or not we have poverty. Whatever poverty we have now, I think should still be manageable. So please don't wait until it gets too late.
Salaam.
Friday, 7 March 2008
Leg Co: ..On Unemployment
I don't know whether to laugh or to cry when I read the reports (in the newspapers here and here and here) of the Leg Co Session today. It was quite disappointing really because there was nothing new. One minister asked the private sector to hire the locals, while the other asked the locals to work in the private sector. I have no problem with both suggestions. But I fail to understand why no minister was addressing the root of the problem, which to me is the remuneration gap in the public and the private sector.
The gap is huge! To know someone in the public sector, who has the same exact qualification with the same skill, is paid triple the amount one is getting in a private sector is really demotivating to anyone. I don't know about you but seriously somebody has to address this issue. As I said in my previous post it is not enough (and equally unfair) to ask the private sector raising their pay rate to the locals due to several reasons. First, our private sector consists largely of SMEs. Second, our SMEs are weak as highlighted by the Minister of the MIPR. And third, the productivity and the commitment of our locals are not exactly commendable.
Now, in my humble opinion it is inevitable and imperative for the government to intervene. Either reduce the remuneration scale in the public sector and/or prop up the remuneration in the private sector. My preference goes to the latter as I believe it would have a larger multiplier effect to the economy. Perhaps take this idea as some sort of 'employment' benefit as opposed to the 'unemployment' benefit. If you are thinking, more government spending and where can we get the fund to do this? Now, I think there is even a stronger need for the government to review the subsidy (especially the fuel subsidy :) Plus, I also think that the government would actually save by spending only some fraction supporting locals who work in the private sector as opposed to employing these locals in the public sector. And of course the direct effect it has on the private sector itself (as compared to the reduction of the corporate tax! No, I'm not going to make any comment on this one) It's a Win, Win situation, No?
With regards to the mind-set problem and the attitude of our local workers, I think the issue is not exclusive to the private sector. I'm sorry..but look at out public sector's employees! I honestly wonder how can you expect the locals to be in their best behaviour in the private sector which pays considerably less when those in the public sector are having the time of their lives and being paid more. And that is why I also think it is equally imperative for the public sector to practice a more realistic productivity-linked wage system.
Oh Well, I'm just in my own world and who am I to say. I don't even know why I'm racking my brain for this.
Salaam
The gap is huge! To know someone in the public sector, who has the same exact qualification with the same skill, is paid triple the amount one is getting in a private sector is really demotivating to anyone. I don't know about you but seriously somebody has to address this issue. As I said in my previous post it is not enough (and equally unfair) to ask the private sector raising their pay rate to the locals due to several reasons. First, our private sector consists largely of SMEs. Second, our SMEs are weak as highlighted by the Minister of the MIPR. And third, the productivity and the commitment of our locals are not exactly commendable.
Now, in my humble opinion it is inevitable and imperative for the government to intervene. Either reduce the remuneration scale in the public sector and/or prop up the remuneration in the private sector. My preference goes to the latter as I believe it would have a larger multiplier effect to the economy. Perhaps take this idea as some sort of 'employment' benefit as opposed to the 'unemployment' benefit. If you are thinking, more government spending and where can we get the fund to do this? Now, I think there is even a stronger need for the government to review the subsidy (especially the fuel subsidy :) Plus, I also think that the government would actually save by spending only some fraction supporting locals who work in the private sector as opposed to employing these locals in the public sector. And of course the direct effect it has on the private sector itself (as compared to the reduction of the corporate tax! No, I'm not going to make any comment on this one) It's a Win, Win situation, No?
With regards to the mind-set problem and the attitude of our local workers, I think the issue is not exclusive to the private sector. I'm sorry..but look at out public sector's employees! I honestly wonder how can you expect the locals to be in their best behaviour in the private sector which pays considerably less when those in the public sector are having the time of their lives and being paid more. And that is why I also think it is equally imperative for the public sector to practice a more realistic productivity-linked wage system.
Oh Well, I'm just in my own world and who am I to say. I don't even know why I'm racking my brain for this.
Salaam
Sunday, 3 June 2007
Work Abroad vs Brain Drain
The other day a friend was asking me what I thought about Bruneians working abroad. From our conversation it appears that many Bruneians oppose the very idea of people leaving their families back home (note the reason!) and of course there is also an issue of brain drain.
Well, it is complicated. And I have 2 sets of answers:
If you are asking me as a worker, my answer to that would be Why Not? If it (working abroad) can increase my welfare and that of my family's then I would not hesitate to work abroad.
[And my view is that if you answer NO to working abroad because you don't want to leave your family, despite no job back home while an opportunity abroad is available, then it is another example of mind-set problem of Bruneians]
If you are asking me as a policymaker, my answer would be 'it depends on WHO are working abroad'. There is obviously an issue of brain drain, defined as the emigration of trained and talented individuals to other nations. It is an economic issue because the (large) investment a nation puts in higher education is lost and it drains resources (human capital) from the home country. Countries such as China, India and even the UK are facing the economic consequences of brain drain of the educated and skilled workers.
Herein also lies the dilemma of being a small country where opportunities are also small.
I would say Brunei being a small country should keep its 'best and brightest' at home and at the same time facilitate others who want to work abroad with a ready policy that will ensure the return of these workers. You see, brain drain aside, returning emigrant workers can have positive effect on the development of a country. Research (see Kapur and McHale, 2005) shows that returnees generally have higher entrepreneurship skill, higher saving, better ideas and so on than those who are at home of the same skill. And I would like to stress again that Brunei SHOULD have a policy or an effective 'entice return' policy if it must encourage Bruneians to go abroad, in order to reap the benefits of their 'foreign skills'.
And then there is also a role of the 'Diasporas' which according to an article from Science and Development Network:
To conclude, there is actually no easy answer to this. While working abroad may perhaps alleviate the problem of unemployment, it comes with a great cost to the nation itself because fundamentally, a country needs (local) talents to ensure innovations, build institutions and implement programmes. Of course someone would argue that talents can be imported but then would it be the same? No matter what, good policies must be at hands in order to ensure the gains would be greater than the cost.
I recommend the book "Give us Your Best and Brightest: The Global Hunt for Talent and Its Impact on the Developing World" by Devesh Kapur and John McHale, for those who are interested in the issue of brain drain and those involve in the policymaking:
Salaam.
Well, it is complicated. And I have 2 sets of answers:
If you are asking me as a worker, my answer to that would be Why Not? If it (working abroad) can increase my welfare and that of my family's then I would not hesitate to work abroad.
[And my view is that if you answer NO to working abroad because you don't want to leave your family, despite no job back home while an opportunity abroad is available, then it is another example of mind-set problem of Bruneians]
If you are asking me as a policymaker, my answer would be 'it depends on WHO are working abroad'. There is obviously an issue of brain drain, defined as the emigration of trained and talented individuals to other nations. It is an economic issue because the (large) investment a nation puts in higher education is lost and it drains resources (human capital) from the home country. Countries such as China, India and even the UK are facing the economic consequences of brain drain of the educated and skilled workers.
Herein also lies the dilemma of being a small country where opportunities are also small.
I would say Brunei being a small country should keep its 'best and brightest' at home and at the same time facilitate others who want to work abroad with a ready policy that will ensure the return of these workers. You see, brain drain aside, returning emigrant workers can have positive effect on the development of a country. Research (see Kapur and McHale, 2005) shows that returnees generally have higher entrepreneurship skill, higher saving, better ideas and so on than those who are at home of the same skill. And I would like to stress again that Brunei SHOULD have a policy or an effective 'entice return' policy if it must encourage Bruneians to go abroad, in order to reap the benefits of their 'foreign skills'.
And then there is also a role of the 'Diasporas' which according to an article from Science and Development Network:
With rapid improvements in communications technologies, highly skilled
migrants can help their countries even when remaining abroad, by maintaining
links with industry and research at home. Known as scientific diasporas,
this is
a relatively new trend – and hints at a reversal, or transformation,
that many
believe smacks more of 'gain' than 'drain'.
To conclude, there is actually no easy answer to this. While working abroad may perhaps alleviate the problem of unemployment, it comes with a great cost to the nation itself because fundamentally, a country needs (local) talents to ensure innovations, build institutions and implement programmes. Of course someone would argue that talents can be imported but then would it be the same? No matter what, good policies must be at hands in order to ensure the gains would be greater than the cost.
I recommend the book "Give us Your Best and Brightest: The Global Hunt for Talent and Its Impact on the Developing World" by Devesh Kapur and John McHale, for those who are interested in the issue of brain drain and those involve in the policymaking:
Salaam.
Monday, 28 May 2007
Brunei Dilemma
In my earlier post 'Unemployment, is it really a Problem?' I wrote that 'Brunei is facing a larger problem and that is the 'mind-set' problem.'
You see, Brunei is unique. I have a strong feeling that the general definition of unemployment in Brunei is 'those who don't work in the government sector or BSP or big banks'. You maybe disaggree but don't you always hear these statements:
"Anakku keraja di company, iatah mun dapat keraja d kerajaan, bisai.."; and
" I am applying to so and so department, in the mean time I'm working in company x"; and
" I would like to work in this company, unfortunately my parents don't let me and want me to work in the government" (this is a real line made by 1 of my husband's x-local staff; and
How many times have you read in the Brudirect Have Your Say, people are accusing certain government departments as being 'croynism' and 'nepotism' because they are being turned down;
And so on and on and on....
It seems that, people don't consider they have a 'proper job' whenever they work in the private sector. Why? Isn't brick-laying or serving in a restaurant or being a receptionist in a company, a job? I am sure a great many of you will answer "It's not the same....and it's not fair..people who are working in the government have high pay, have lots of benefits etc etc".
Fair enough I said. BUT my question is, is it still not a job? Won't it put food on the table?
This is precisely the mind-set problem that Brunei is currently facing. Nothing new to many of us but to me the number 1 cuplrit in the issue of Brunei so-called 'unemployment'.
On the other hand, there are of course thousands out there who really are looking for jobs but don't find one. Yet, we see thousands of foreign workers working as cashiers, sales persons, waiters etc. A large blame has also been put on the employers for doing this. Now, my question is should we really blame them?
You see, I believe the 'mind-set' problem's perfect partner in crime is the 'attitude' problem. And this attitude problem is actually an even a larger problem to solve. While the 'mind-set problem' will be instantly solved once the person finds a job in the government sector, the 'attitude' problem might not (and sometime would get even worse). [Anyway, this post is about mind-set so, a whole new post should be dedicated to the 'attitude' problem of the locals]
WHAT SHOULD WE DO then? You ask.
Now, I've thought of a number of ways to answer this question. (I've even listed a number of strategies hahaha) But I ask myself, WHO am I? Plus it could (probably) put me into trouble.
Well, to me there is no easy and straight-forward answer to this. The strategies should be multi-level for different groups of people. Education, for example, can be the main strategy to change the mind-set of the future generation. National campaigns, perhaps can be launched to change the mind-set of the older generation(the parents who think that there is no job, but government job) and the current job-seekers.
By now, I'm sure you are still going to ask 'What about the remuneration GAP between the public and private sector?'
My answer would be this: The gap for now will still exist. You can't just simply cut down people's salary in the public sector. On the other hand, you can't just simply ask the private sector to increase their salary. As an economist, I would also say that your earning would eventually depend on your productivity i.e. the more productive you are, the more you will earn. And I have seen many examples where people who have lower starting earning (mostly in the private sector) have now out-performed (and earn more) their peers (mostly in the government sector) in terms of productivity and wealth (i.e. in terms of borrowing less).
I would however also like to add that I think it is high time that somebody takes up the 'remuneration gap' issue seriously. Maybe not the difference in salary 'per se' because as I said you can't just simply adjust the salary. But in terms of other 'equal' opportunities. I don't know, but at the top of my head now is the opportunity to upgrade one's qualification, especially in the university and graduate level. For instance, there should be a mean/ public agency where locals who work in the private sector could get the (financial) assisstance to upgrade him/herself (OTHER THAN BANKS of course!). While government employees have the JPA in-service scheme, where can the private employees go to? Yes, the MOE does offer a scholarship scheme to locals but it only caters to young people (up to the age of 30). And what about other skills? So, where can the rest go? (I am thinking of something in the line of interest-free education loan or maybe subsidy to private employers etc.). It is afterall, human investment and will be highly related to higher labour productivity! And I think it is also equally important that Brunei should create local expertise not only in the public sector, but also in the private sector, especially so if we want the private sector to be the 'engine of growth'.
Oh! there goes my afternoon... To end, I think the mind-set problem is the cause of a real dilemma for Brunei unemployment problem. On the one hand, you want to solve just simply by creating as many jobs (in the government sector) as you can but it means the locals won't learn and won't recognize that there is a problem i.e. they won't change. On the other hand, you can't just leave the matter and hope that people will 'eventually' change. Afterall, unemployment is still a problem and needs to be properly addressed. And it is complicated! And that is why I believe everyone should work together to solve this dilemma. Policies and efforts must be syncronized with one another. Public and private must work hand in hand.
Oh Dear! What do I know? I'm just a mommy of 2. Enough thoughts for today!
Salaam.
ps. You can be sure that my husband and I are grooming our children to enter the private sector, which we believe have A LOT MORE to offer : ).
You see, Brunei is unique. I have a strong feeling that the general definition of unemployment in Brunei is 'those who don't work in the government sector or BSP or big banks'. You maybe disaggree but don't you always hear these statements:
"Anakku keraja di company, iatah mun dapat keraja d kerajaan, bisai.."; and
" I am applying to so and so department, in the mean time I'm working in company x"; and
" I would like to work in this company, unfortunately my parents don't let me and want me to work in the government" (this is a real line made by 1 of my husband's x-local staff; and
How many times have you read in the Brudirect Have Your Say, people are accusing certain government departments as being 'croynism' and 'nepotism' because they are being turned down;
And so on and on and on....
It seems that, people don't consider they have a 'proper job' whenever they work in the private sector. Why? Isn't brick-laying or serving in a restaurant or being a receptionist in a company, a job? I am sure a great many of you will answer "It's not the same....and it's not fair..people who are working in the government have high pay, have lots of benefits etc etc".
Fair enough I said. BUT my question is, is it still not a job? Won't it put food on the table?
This is precisely the mind-set problem that Brunei is currently facing. Nothing new to many of us but to me the number 1 cuplrit in the issue of Brunei so-called 'unemployment'.
On the other hand, there are of course thousands out there who really are looking for jobs but don't find one. Yet, we see thousands of foreign workers working as cashiers, sales persons, waiters etc. A large blame has also been put on the employers for doing this. Now, my question is should we really blame them?
You see, I believe the 'mind-set' problem's perfect partner in crime is the 'attitude' problem. And this attitude problem is actually an even a larger problem to solve. While the 'mind-set problem' will be instantly solved once the person finds a job in the government sector, the 'attitude' problem might not (and sometime would get even worse). [Anyway, this post is about mind-set so, a whole new post should be dedicated to the 'attitude' problem of the locals]
WHAT SHOULD WE DO then? You ask.
Now, I've thought of a number of ways to answer this question. (I've even listed a number of strategies hahaha) But I ask myself, WHO am I? Plus it could (probably) put me into trouble.
Well, to me there is no easy and straight-forward answer to this. The strategies should be multi-level for different groups of people. Education, for example, can be the main strategy to change the mind-set of the future generation. National campaigns, perhaps can be launched to change the mind-set of the older generation(the parents who think that there is no job, but government job) and the current job-seekers.
By now, I'm sure you are still going to ask 'What about the remuneration GAP between the public and private sector?'
My answer would be this: The gap for now will still exist. You can't just simply cut down people's salary in the public sector. On the other hand, you can't just simply ask the private sector to increase their salary. As an economist, I would also say that your earning would eventually depend on your productivity i.e. the more productive you are, the more you will earn. And I have seen many examples where people who have lower starting earning (mostly in the private sector) have now out-performed (and earn more) their peers (mostly in the government sector) in terms of productivity and wealth (i.e. in terms of borrowing less).
I would however also like to add that I think it is high time that somebody takes up the 'remuneration gap' issue seriously. Maybe not the difference in salary 'per se' because as I said you can't just simply adjust the salary. But in terms of other 'equal' opportunities. I don't know, but at the top of my head now is the opportunity to upgrade one's qualification, especially in the university and graduate level. For instance, there should be a mean/ public agency where locals who work in the private sector could get the (financial) assisstance to upgrade him/herself (OTHER THAN BANKS of course!). While government employees have the JPA in-service scheme, where can the private employees go to? Yes, the MOE does offer a scholarship scheme to locals but it only caters to young people (up to the age of 30). And what about other skills? So, where can the rest go? (I am thinking of something in the line of interest-free education loan or maybe subsidy to private employers etc.). It is afterall, human investment and will be highly related to higher labour productivity! And I think it is also equally important that Brunei should create local expertise not only in the public sector, but also in the private sector, especially so if we want the private sector to be the 'engine of growth'.
Oh! there goes my afternoon... To end, I think the mind-set problem is the cause of a real dilemma for Brunei unemployment problem. On the one hand, you want to solve just simply by creating as many jobs (in the government sector) as you can but it means the locals won't learn and won't recognize that there is a problem i.e. they won't change. On the other hand, you can't just leave the matter and hope that people will 'eventually' change. Afterall, unemployment is still a problem and needs to be properly addressed. And it is complicated! And that is why I believe everyone should work together to solve this dilemma. Policies and efforts must be syncronized with one another. Public and private must work hand in hand.
Oh Dear! What do I know? I'm just a mommy of 2. Enough thoughts for today!
Salaam.
ps. You can be sure that my husband and I are grooming our children to enter the private sector, which we believe have A LOT MORE to offer : ).
Tuesday, 22 May 2007
Unemployment: Is it really a problem?
I think the main socio-economic issue Brunei is currently facing is the problem of unemployment, defined as the number of people who are actively seeking for jobs. But is it really a problem? Latest statistics from JPKE show that in 2005 and 2006 there were more than 7000 unemployed each year with unemployment rates of 4.3% and 4% respectively. If we compare this figure with the number of live births in Brunei, which in 2005 was roughly 7,000, the numbers tally! Now, I'm not saying that for every birth of a new baby another person is unemployed, what I'm trying to say is that IDEALLY each year, at least 7,000 jobs need to be created if you want zero unemployment because that is the number that you would expect to enter into the job market in 15 years from now.
Now, in economics, there is no such thing as zero unemployment, there is a term that we call the 'natural rate' of unemployment or the 'full employment' unemployment rate. This is basically the equilibrium unemployment rate. OK, plainly, it is the rate that you would normally expect to occur in a country, which will not put an upward pressure on inflation. There are many views regarding the rate of this full employment rate? For many countries including the US, it is around 4.5%. Now, if we look at Brunei's unemployment rate now, hey! we are safe.
And it has always been that case for many years. In 1991 and 1995 for example, Brunei's unemployment rates were 4.7% and 4.9% respectively, which were a lot higher than the rate today (4%). The highest ever recorded was in 2001 when the unemployment rate soared at 5.6% and about 8,600 were unemployed. So what's all the fuss about?
I think we get nervous when we look at our neighbouring countries. In 2006, Singapore, for example, had an unemployment rate of only 3.1%, while Malaysia had 3.5% (CIA World fact book). But my question is, is it really fair to compare Brunei with these 2 countries?
I am not sure whether the problem of unemployment in Brunei is actually being slightly 'over-exaggerated'. Based on the data, which 'don't lie' according to Levitt and Dubner (2oo5), this might be the case.
My personal feeling is that Brunei is actually facing a MUCH larger problem, for now I would call it a 'mind-set' problem, which won't get solved even by the world's greatest economist. What do I mean? Well, I guess you'll have to wait for my next post!
Salaam!
Now, in economics, there is no such thing as zero unemployment, there is a term that we call the 'natural rate' of unemployment or the 'full employment' unemployment rate. This is basically the equilibrium unemployment rate. OK, plainly, it is the rate that you would normally expect to occur in a country, which will not put an upward pressure on inflation. There are many views regarding the rate of this full employment rate? For many countries including the US, it is around 4.5%. Now, if we look at Brunei's unemployment rate now, hey! we are safe.
And it has always been that case for many years. In 1991 and 1995 for example, Brunei's unemployment rates were 4.7% and 4.9% respectively, which were a lot higher than the rate today (4%). The highest ever recorded was in 2001 when the unemployment rate soared at 5.6% and about 8,600 were unemployed. So what's all the fuss about?
I think we get nervous when we look at our neighbouring countries. In 2006, Singapore, for example, had an unemployment rate of only 3.1%, while Malaysia had 3.5% (CIA World fact book). But my question is, is it really fair to compare Brunei with these 2 countries?
I am not sure whether the problem of unemployment in Brunei is actually being slightly 'over-exaggerated'. Based on the data, which 'don't lie' according to Levitt and Dubner (2oo5), this might be the case.
My personal feeling is that Brunei is actually facing a MUCH larger problem, for now I would call it a 'mind-set' problem, which won't get solved even by the world's greatest economist. What do I mean? Well, I guess you'll have to wait for my next post!
Salaam!
Subscribe to:
Posts (Atom)
