COW DUNG: PRO ECONOMY, PRO ENVIRONMENT
Cowdungisanorganicwaste thatgenerateslargeamountsof methaneasitdecomposes Methane,apotentgreenhousegas producedbycowdungtrapsheatin theatmospheremoreefficientlythan carbondioxide,posingasignificant threattotheenvironmentandpublic health Awaytolowerthese greenhousegasemissionsisthrough biogas
Biogasisapowerfuldriverfor economicgrowth,especiallyinrural areasthatareinneedofeconomic opportunities.Tohighlightthe significanceofbiogasandwhy biogastechnologyshouldbe implemented,wecantakeacloser lookatIndia Dominatingtheworld’s dairyindustry,Indiaisthelargestmilk producer Toachievethat,their largestdairyfarmshaveover15000 cows,eachexcreting environmentallyharmfulcowdung daily.
Thisorganicwasteisturnedinto cowdungcake Thesedrieddung cakesaredeep rootedinIndian tradition,wherefarmersusethem asfueltocookandforreligious purposes. Despitethat,thereare nootherusesforcowdung,and theyaresimplyregardedas wastewheninreality,ithasmuch morepotential Acasestudyof thedairyclusterinJabalpur notedthattheproductiveuseof totalavailablecowdunginIndia couldcreatenearly2million additional,full time,permanent jobs!
Biogaspowerplants,electricity generation,fertilizerproduction, anddungcollectionaresomeof thejobopportunitiesrevolving aroundcowdungalone, particularlyinruraland peri urbanareas
Theenergy dairy,thewaste to energyincentivepolicy,couldbe implementedinvariousways Anexamplewouldbehavingmilk processingandchillingfactoriesbuiltalongsidebiogaspower plants Thatway,thebiogasproducedbythenearbypowerplants wouldbeabletoreducethedairyindustry’senergyexpenditures, increasefarmers’incomeandinvestment,andcouldalsoincrease thequantityofdairyproduction.Moreover,withbiogas based processingandsterilization,milkqualitycanalsobeimproved, increasingtheindustry'sperformanceasawhole.
Byconstantlyeliminatinganimalwasteandusingnaturalresources safely,thisintegratedbioenergyprocesspromotesacircular economythatcanyieldupto$45trillionineconomicbenefitsby 2030,astheWorldEconomicForumquoted Nonetheless,likeevery technologicaladvancement,therearelimitationstheworldhasyet toovercome
By Hidni Muhamad HanifForexample,electricitygenerationand compostproductioncandirectlyemploy 09millionpeoplewhichwillalsoleadto furtherindirectandinducedjobs To furtherbenefitfromtheuseofcowdung industrialwise,researchershave suggestedcreatinganintegrated energy dairypolicy
Beforedivingintosaidpolicy,an understandingofacirculareconomyis verymuchnecessary Inourcurrent economy,weextractmaterialsfromthe Earth,producevariousgoodsfromthem andeventuallythrowtheseproducts awayaswaste,whichindicatesalinear process.Contrastingly,inacircular economy,alltheindustrialprocessesand economicactivitiesarerestorativeor regenerativebydefault,preventingthe productionofwastefromthestart
Presently,thesystemsusedinbiogasproductionare notcost efficient,makinglarge scaleproduction inaccessiblewhichexplainsthelackofinvestmentin thesector
However,thisdoesnotmeanthatnoeffortsaremade towardsrealizingthispracticalimplementation.Thereis alsononeedtowaituntillargepowerplantsarebuiltto becomemoreenvironmentallyandeconomically efficient Evensmallfarmerscanapplysimple biodigesterstoproducebiogasfromkitchenwasteand animalmanure Itisacollectiveresponsibilitytobe awareofthesebenefitscowdungimposesandwork towardsitforasustainableeconomyandabetter future
Have you ever wondered what school of thought the modern economy is developed from? The answer to that question is all of them! Our modern economy has developed over centuries and in every school of thought, some aspects have been taken and developed into what we know of our economy today There are many terms as to what modern economics is.
To name a few, Neo Keynesian, New Keynesian and Neo classical economic principles.
However, what we fail to recognise is that economics is an ever changing concept. Throughout centuries, various economic thoughts have been developed; ranging from Adam Smith’s invisible hand to the otherwise mathematical approach in economics by Lean Walras and Alfred Marshall in the 19th century To discuss the timeline of the development of modern economics is a complex task. Even so, we must still recognise every effort made by great economic thinkers that have contributed to modern economics
INTRODUCTION
GROWTH GROWTH OF THEOF THE MODERN MODERN ECONOMICS ECONOMICS
Before the rise of modern economics, renowned economists in the 18th and 19th century like Adam Smith, David Ricardo and John Stuart Mill represented classical economics by initiating the migration from monarchic rule to capitalist democracies Said capitalist democracy was deemed the dominant school of thought for economics shortly after the birth of western capitalism When Adam Smith released the Wealth of Nations, it was never imaged to be the most prominent development in classical economics. Though, explanation of the mechanisms of division of labour, productivity, and free markets changed that Instead, these were to become the basic elements of classic economics, followed by price, supply, demand and value, which we now know as the fundamentals of a capital market.
Most of the newly developed classical theories were made as alternatives to the protectionist and inflationary mercantilist Europe in the 16th to 18th century; where a command and control, monarchic government policy system dominated Following the Industrial Revolution and western capitalism, ‘laissez faire’ was now the norm Theories now branched off the belief that a society benefits the most when each of its members follow their own self interest. Labour theory of value, theory of distribution and principle of comparative advantage were the influential theories that rose during the period These concepts then became the cornerstone of many 19th century and neo classical economic theories.
K e y n e s i a n
However, in the late 19th century, a new school of thought that emerged advocated a more controlling role for central governments in economic affairs. Keynesian economics then became the dominant school of thought.
Though, how exactly did New-Keynesian become a modern economic school of thought? It is worth noting that New-Keynesian economics was derived from differences of real world economic phenomena and the thesis of Keynesian Economics. Through this idea, economists began examining how microeconomics foundations (price rigidity) and Keynes’ macroeconomic thoughts were interdependent even if they are two separate analyses in Economics. Following the Great Recession, New-Keynesian attempted to address how market failures were caused by inefficiencies; with the assumption that the market worked with an invisible hand. That is of course, if it was to be let to roam free without any government intervention.
The assumption that consumers are rational when making decisions was deemed inconsistent and is one of the many causes of market distortion. Apart from that, imperfect information and competition in the market also led to such nuisance. Ever since the 2008 financial crisis, New Keynesian economics have been implemented in modern economics. This means that governments now act as one of the economic agents that attempt to fix market failures caused by the irrational behaviour of consumers and producers.
By Alief and AudreyNew Keynesian also managed to prove how Keynes’ theory was related to the price rigidity of a market when economic agents could not visualize the economic reality This meant that these economic agents have very limited information on whether other parties will change their pricing in the market. Such expectations are crucial to determine prices, which ultimately leads to unaltered prices. Hence, price rigidity occurs in markets
All in all, from classical to neo classical, it is observable how economic school of thoughts have rose, declined, and altered to accommodate the change in consumerist and political trends.
KEYNESIAN VS MONETARISTS
To begin, two schools of thought exist on how to attain full employment and price stability: Keynesian economics and Monetarist economics John Maynard Keynes, a British economist, established the Keynesian theory in the 1930s to analyse and comprehend the Great Depression, which lasted from 1929 to 1941. The Great Depression was the worst and longest economic downturn in modern global history, exacerbated by a series of economic contractions, notably the 1929 stock market crash and financial panics in 1930 and 1931
Keynesian economics is a demand side theory that focuses on short run changes in the economy Its basic tenet is that government involvement can help the economy stabilise. To accomplish this, Keynes argued for higher government spending and reduced taxes in order to generate demand and lift the world economy out of the Great Depression Keynes also opposed excessive saving, unless it was for a particular objective such as retirement or education He regarded it as risky for the economy because the more money that went unused, the less money that is in the economy fueling growth. This was another of Keynes' hypotheses aimed at averting severe economic downturns. According to Keynes' fiscal stimulus theory, an increase in government expenditure eventually leads to more corporate activity and even more spending
According to this idea, spending increases aggregate output and creates higher income. If employees are ready to spend their extra funds, the subsequent increase in GDP might be bigger than the initial stimulus amount. As a result, Keynesian economics is now used to refer to achieving optimal economic performance and avoiding economic slumps by influencing aggregate demand through active stabilisation and government economic intervention
On the other hand, monetarist economics is a school of thought in economics that suggests shifts in the money supply are the biggest influences on how quickly the economy grows and how the business cycle behaves According to it, if a nation's money supply decreases, then the economic activity will decrease and vice versa The theories challenged core elements of Keynesian economics which was dominant in the first half of the 20th century
By Raeyn & AmyraThis theory was brought forth by Nobel winning prize economist Milton Friedman, who wrote significant articles on the modern economy and published revolutionary books that altered how economics is taught over the course of his academic career. Friedman's advocacy for monetarism was so influential that it caused economic thinking to shift away from Keynesian fiscal policy and toward monetary policy that focuses on regulating the money supply to contain inflation.
Monetarist economics gained importance in the 1970s, and is governed by the formula MV = PQ, where M=money supply, V=velocity of money, P=price of goods and Q=quantity of goods and services Central banks, such as the Federal Reserve and Bank Negara Malaysia, can exert much control over economic growth rates. Some of the main mechanisms used to alter the money supply in the economy are the reserve ratio, discount rate, and open market operations
In a nutshell, it can be seen that these two economic theories contrast each other very starkly, and both have their own pros and cons. However, one key takeaway is that both of these theories are useful and can be very effective when used alongside each other to stabilise the condition of an economy.
The Downfall of Sri Lanka
The tightening grip of economic turmoil engulfed the island of bliss,Sri Lanka as 22 million citizens face the consequences of its financial downturn. Protests plagued the streets, power cuts became a common occurrence and shortages of fuel witnessed people having to wait in line for over two days to fill their tanks Basically, everything that can go wrong went wrong for this small island country in South Asia Doctors even warned that the economic crisis could eventually kill more Lankans than Covid 19, as pharmaceutical supplies were falling dangerously scarce Sri Lanka suffers from high inflation, as it has been ranked 5th with the highest food price inflation in the world based on the World Bank’s assessment. The price of everyday necessities skyrocketed, the poverty rate rose exponentially and families continue to skip regular meals due to staple food being unaffordable Lack of foreign currency reserves also means that
You may ask, how did Sri Lanka fall into such a deep misery? When addressing this question, all fingers point to none other than former president Gotabaya Rajapaksa Rajapaksa’s years of economic mismanagement ended up backlashing the nation. Sri Lanka’s decision to focus on its domestic market instead of foreign trade at the end of 2009, eventually led to a gaping trade deficit of over $3 billion each year. Based on the Asian Development Bank, the country’s national expenditure exceeds its national income, and its production of tradable goods and services is inadequate In simple terms, Sri Lanka spends more than it earns Sri Lanka is the only country whereby you can find washing machines sold at duty-free stores in airports
2019 witnessed Gotabaya Rajapaksa campaigning for the presidential elections, and his political promises involved deep tax cuts Although deep tax cuts seem desirable as it increases the disposable income of its people, this act proves to be detrimental The substantial reduction of Value Added Tax ( VAT ) from 15 % to 8 % was an inimical move as Sri Lanka already had low tax revenue to start with This resulted in international agencies downgrading Sri Lanka to near default levels, shutting the country out of international capital markets At the end of 2019, Sri Lanka’s foreign currency reserves dropped from $7 6bn to $250m
Rajapaksa also ended up slashing the nation through the sudden banning of all chemical fertilizers in the name of public health This idea of so called ‘ organic farming ‘ turned out to be a major blunder as it led to a nationwide shortage in staple food such as rice This causes crop failure due to a dip in quality, causing shortages of food An evident example would be when Sri Lanka’s rice production fell by 50 % and was forced to import rice for domestic consumption
The downfall of Sri Lanka’s economy was also contributed by the plummeting tourism sector Sri Lanka depended on tourism for 13% of its GDP, and any disruptions in this sector would definitely wound its economy. The 2019 Easter bombings instilled fear in tourists, and the pandemic restrictions brought a big blow to tourism. In 2021, Sri Lanka’s tourism revenue was only 2.8 Billion, far fetched from the 7.5 Billion figure in 2019.
While the situation undoubtedly looks bleak for Sri Lanka, having an effective courseofactionisparamountintreatingitseconomy AnInternationalMonetary Fund(IMF)bailoutwoulddefinitelyhelpinbringingSriLankabackonitstoes Sri Lanka needs to comply with the settings required by the IMF to actually receive funds they need to sustain the economy. Fiscal consolidation definitely needs to be in place , whereby Sri Lanka needs to increase its taxes, adopt more spending cutsandapplyhigherinterestratestoactuallyseekhelpfromtheIMF However, this is easier said than done as it requires deep policy restructuring and a displacementoftheircurrentadministration
CONCLUSION
However, Sri Lanka also needs to take long-term solutions into account. Sri Lanka will definitely strive for more stability if it relies on more resilient industries. Currently, Sri Lanka’s main industries revolve around agriculture and also tourism Agriculture has proven to not be a stable source of income due to the policies made by Rajapaksa while maintaining the tourism industry has myriad uncertainties such as the pandemic.
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An example of a short term solution already in place was the negotiation for lower price of oil supply from Russia and Qatar. This lifted the fuel shortage problem for a short period of time
Although this seems to lower the rate of inflation, it also increases the trade deficit at the same time which puts Sri Lanka in a sticky situation. Another move proposed by the government was to privatize the previously state owned Sri Lankan Airlines in order to generate greater revenue The benefit of privatizing would mainly be from the avoidance of incoming losses , which will lift the burden from Sri Lanka’s banking sector .
In conclusion , the Sri Lankan economic crisis clearly shows how political mismanagement and incompetency of leadership will eventually lead to heavy consequences Leaders of other nations, especially Malaysia should learn from the mistakes made by the Sri Lankan government, and put a great importance on economic policy-making so they do not repeat the same mistakes.
M A R X I S M : D I D K A R L M A R X
S U C C E S S F U L L Y P R E D I C T T H E F U T U R E ?
HISTORY
Marxism first surfaced publicly in 1848, the period of the industrial revolution. It was featured in a pamphlet called “The Communist Manifesto” which was written by Karl Marx and his co worker Friedrich Engels In the scope of economics, the focus of Marxism is the criticisms against the capitalist system, which was laid down by Marx in his book “Das Kapital”.
OVERVIEW OF THE IDEA
The bourgeoisie are people who control the means of production, the boss class, who owns the capital, land labour of a business operation while the proletariat are the exploited workers who transform raw commodities into valuable economic goods.
In Marx’s point of view, workers hold such little stake in the production process. The detachment from the production process will cause a feeling of resentfulness and disdain towards the business owners. On the other hand, business owners employ preventative measures to curb any leverage that the workers may have against them This is achieved by having their fingers dipped in banking institutions, media and academia to mould them in such a way that fits their personal gains
With all the inequalities jumbled up with economic relations that are exploitative in nature, the only culmination is a revolution Simply put, the proletariat will overthrow the bourgeoisie, have a hold on the means of production and finally abolish capitalism Marx predicted that through a revolution, capitalism would evolve to socialism (property and economic resources are owned by all citizens) and ultimately communism (similar to socialism, but the property and economic resources are mostly owned by the central government).
Talking about Marxism, the things that come to our mind are communism, dictators, Stalin and Chairman Mao the hammer and sickle symbol or even the national anthem of the Soviet Union which sends chills down our spine What if we tell you that Marxism is way more interesting than that and the evil we see in the media An economic theory originated from Karl Marx and Friedrich Engels, this article will dive deeper into his idea and its course throughout history, its present day application and finally decide whether Marx was right all along through the lens of politics philosophy and economics
IDEAS OF MARXISM
Marxism is a social (relating to the actions and behaviours of society as a whole) and political (relating to the nature, scope and legitimacy of public organisations, institutions and the relationships between them) theory In “The Communist Manifesto” class struggle and revolution were addressed The class struggle is a continuing conflict at every stage of history between those 2 who possessed economic and political power and those who did not in simple terms: the haves vs the have nots Marx explained how the capitalism system was oppressing and exploiting the workers class and only through class warfare could the workers rise up and instate a communist utopia In Marx’s Class Theory, capitalism is one of a phase in the historical progression of economic systems that follow one another in a natural sequence Marx believed that the industrial era marked the final stage of the class struggle through a revolutionary victory of the proletariat over the bourgeoisie
Marx posited that the progression of economic systems throughout the course of history is attributed to the dynamics between social classes and their behaviours as well as conflicts A social class consists of people who are more in common with others belonging in the same social class compared to those from a different social class In Marx’s theories of class struggle the two main social classes are the bourgeoisie (pronounced as bur schwa zee) and the proletariat(pronounced as pro le ta riat)
The bourgeoisie are people who control the means of production the boss class who owns the capital land and labour of a business operation while the proletariat are the exploited workers who transform raw commodities into valuable economic goods
MARXISMOVERTHEYEARS
RUSSIAN REVOLUTION, 1917
The Russian Revolution in 1917 was the greatest example of Marxist theory appled in the past In 1917 the Russan Empire was governed by the tsar (emperor) an autocrat who had unlimited power At a time when most European nations are modernizing and industrializing themselves Russia was still underdeveloped with most of the peasants known as serfs working in the agricultural industry being oppressed by their landlords Russia started to industrialize in the 1890s but the working conditons were poor This led to unhappy Russians: the workers demanded better wages liberals demanded politica power and peasants demanded land The revolutionaries opposed tsardom They beleved that Russia could not progress unless the Tsarist system was overthrown One of the revolutionary parties was the Socal Democrats (SDs) Their aim was to achieve a revolution in Russia using the Marxist theory where the working cass would overthrow the ruling class through revolution and create a communist state
In 1903, the SDs split into 2 groups: the Mensheviks (minority) who adopted a more theoretical approach to Marxism by seeking collaboration between the proletarat and the bourgeoisie; the Bolsheviks (majority) led by Vladimr Lenin who wanted a much more actve revolution of the workers By the age of 20 Lenins study of Marxism had turned him into a committed Marxist for whom the revolution was a way of life He reshaped the Marxist theory to fit in with Russian conditions He regarded the teachings of Karl Marx as having already provided the idea of how revolutions operated and it was up to the SD to lead the revolution His radicalization caused the split within the SD which led him to form the Bolsheviks
Russias nvolvement in World War led to inflation food disruption and worsened living conditions On 18 February 1917 Russan industry workers launched a full scae strike on the streets of Russia that paralyzed the city of Petrograd They demanded an end to the war food rationing and tsardom The tsar was forced to abdicate on 4 March 1917 and Russia was ruled by the Provisional Government for 8 months, yet they failed to resolve Russias issues Russia was still at war the people were stil hungry and the peasants were still demandng land The Bolsheviks slogan: peace bread and land"; attracted many supporters After a thwarted attempt to seize power n July the Bolsheviks challenged power again in October On 25 27 October the Bolsheviks mostly made up of factory workers took control of Petrograd and stormed into the Winter Palace with nobody defending it Kerensky, leader of Russias Provisional Government fled Petrograd and the Bosheviks came to power in a bloodless affair
This was followed by the Russian Cvil War from 1917 1923 involving the Bolsheviks the Whites (Bolshevik political opponents supported by the UK and the USA) and the Greens (minorities of Russia strugglng for independence) The Bolshevik victory offcially led to the formation of the Soviet Union (USSR) The Revolution marked the victory of the proletariat over the bourgeoisie of socialism over capitalism just like the Marxist theory This was the first time the Marxist theory was successfully realzed As a communist state, Lenin suppressed democracy with the dissolution of the Constituent Assembly and other parties Trade unions freedom of speech and religions were crushed The Revolution also gave birth to the first one party socialist state However the establishment of such a state came as an ideological paradox as Marx's idea of revolution was a natural one by the workers while Lenins revolution was artificially incited by a party After Lenins death in 1924 Stalin formulated Marxism Leninsm as a theory of Lenins application of Marxism The Marxism Leninism ideology was an important part of history as it would go on to become the communist ideology of the Soviet Union ts satellite states the Eastern bloc and many third world countries during the Cold War
MARXISMINTHEPRESENTDAY
MARXISM AND ISLAM
Islamic Marxism attempts to apply Marxist economic, political, and social teachings within an Islamic framework Many Muslims reject the idea of Marxism due to its anti religious and atheist views. However, the similarities between Marxist and Islamic ideals of social justice have led some Muslims to embrace their own forms of Marxism since the 1940s Islamic Marxists believe that Islam meets the needs of society and can accommodate or guide the social changes Marxism hopes to accomplish Islamic Marxists do not share the anti religious views of Marxism
For example, the Libyan leader during 1969 2011, Muammar Gaddafi, declared that " it is the duty of every Muslim to combat" Marxism because it promotes atheism Instead of embracing the Marxist idea that a socialist society emerged from a class struggle between the proletariat and the bourgeoisie, Gaddafi believed that socialism would be achieved by replacing the capitalist economy with one based on his own romanticised ideas of a traditional, pre capitalist past
WAS KARL MARX
CORRECT?
So, after 150 years since the introduction of Marxism,wasKarlMarxright?Today,many economists may argue that capitalism is still strong and thriving They may also say that capitalism has been able to get millions out of poverty, while the so-called communist countries inspired by Marxism havecollapsed
However, the 2008 financial crisis had brought Marx’sthoughtofthe“capitalistcrisis” back to the table. The capitalist economy is failing to provide jobs for the people, as proven inMarx’swritingsin“DasKapital” thecapitalist economy only leads to concentration of wealth in a few hands, thus causing income inequality With advancing technology and capital, the demand for labour is decreasing causing unemploymenttorise
SO, WHAT IS THE SOLUTION?
Can Marx’s idea of a revolution from theworkersoverthrowcapitalism?No. This seems impossible in the liberal world we live in now Marx stated that capitalism will create its own contradictions, which will pave the wayforalternatives So,is democratic socialism the alternative to capitalism? We can look at modern day socialist democratic countries such as Finland,NorwayandSweden.
In democratic socialist countries, basic services are provided free to all residents, but the government is democratically voted in, and so the people have more influence over the bodies that run their services
Theyraiseincometaxestoreduceincome inequalityandusethismoneyonwelfare benefits,stateeducation,healthcareand othersocialbenefitswhicharefreeforall This socialdemocraticmodelsucceedsintaming capitalism.BernieSandersintheUS,who describedhimselfasademocraticsocialist, provesthatsocialismisontherise Infact, socialismisnotatabooevenincapitalist countriesliketheUS.
CONCLUSION
COMMUNISM AND SOCIALISM IDEOLOGY
The communism and socialism ideology seeks to correct the flaws of capitalism such as worker exploitation and inequity between the rich and poor. Conversely, Marx’s prediction that competition between business owners in the market will not help produce better goods for consumers but will lead to business owners going under did not hold up the test of time The practice of communism fell short of the ideal described in the Manifesto
In the 20th century, communist countries were ruled by dictators, who controlled every aspect of the people They were responsible for setting the wages, prices and how wealth is propagated A revolution on a global scale, stated in Marx’s utopia as a requisite, did not materialise as there was fierce opposition from western capitalist nations against the proponents of this ideology Countries that are under communist rule as of 2022 are China, Vietnam, Laos and Cuba.
As a conclusion, Marxism offers a tool to understand history and economics, as it single handedly offers an explanation for the global capitalist crisis, which no other theory probably offers. The correct balance to have a democratic government free from dictatorship or state centralization while reducing the ill effects of capitalism at the same time are social democrats. This social democratic model can pave the way for our advent into a socialist future
ANSWER KEY ANSWER KEY
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CREDITS
Writers
Hidni Muhamad Hanif
Raeyn Rezqi
Amrya Alya
David Dylan Nur Farhanah Ahmad Rizal Alief Muqri
Audrey Moo Nazmi Imtiyaz
Adam Aqhar
Editors
Nicole Ting
Amir Zulhadeef Zakaria
Amanda Chin Arianna Kugendran
Alya Kalisya Binti Mohd Razif
Aesya Fatihah