The five kinds of freedoms associated with sustainable development are: (1) political freedoms; (2) economic facilities; (3) social opportunities; (4) transparency guarantees; (5) protective security.

1. MFFT 1053
1. MOHAMAD NOOWAWI MD YASIN MFF141006
2. MOHD HASAN MOHD SAAID MFF141003
3. WAN AHMAD JAMALUDDIN BIN W MOHAMAD MFF141007

2. • The five kinds of freedoms associated with sustainable development are:
(1) political freedoms;
(2) economic facilities;
(3) social opportunities;
(4) transparency guarantees;
(5) protective security.
• Chose ONE freedom in your opinion that is the most critical for a
successful sustainable development and elaborate your choice
Question

3. Institutional And Instrumental Freedoms
• Five distinct freedom seen in as ‘instrumental’ perspective, are particularly investigated in the
empirical studies that follow
• These includes:
a) Political freedoms
b) Economic facilities
c) Social opportunities
d) Transparency guarantees
e) Protective security
Development as Freedom is a book by economist Amartya Sen, published in 1999!!

4. • They are like the five equally important sides of a box in which urban investments can be contained. Success is
measured by the degree to which obstructions are removed and each has to be tackled in the development
process.
• In other words, development will inevitably get distorted if only one or two of these objectives are given a
priority by using the argument that some of the freedoms can come afterwards.
Political Freedoms
Social Opportunities
Transparency
Guarantees
Economic Facilities
Protective
Security
All five instruments are interconnected and equally important!!
Institutional And Instrumental Freedoms

5. Sustainable Development Elements
Economy
Environment
Social
Sustainable development entails three sets of interrelated objectives !!

6. What is Transparency !!
Definition
• The perceived quality of intentionally shared information from a sender
• Implies openness, communication, and accountability
• Classically defined as when "much is known by many“
• Concept of removing all barriers to —and the facilitating of— free and easy public access to corporate
information and the laws, rules, social connivance and processes that facilitate and protect those individuals and
corporations that freely join, develop, and improve the process

7. Economy (1/4)
Transparent decision making is critical for the private sector !!
• Transparency is an important aspect of good governance, and transparent decision making is critical for the
private sector to make sound decisions and investments. Accountability and the rule of law require openness
and good information so higher levels of administration, external reviewers and the general public can verify
performance and compliance to law
• Current TPPA negotiation is one of the examples of in-transparency of government in doing the economic
negotiation
Developed Countries Developing Countries
• Ironically, agricultural subsidies, which is the main trade-
distorting practice of developed countries like the US, have
been kept out of the agenda of the TPPA or other FTAs
involving Europe
• Open up Govt. procurement, with foreigners allowed to bid
on similar terms as locals for goods, services and projects of
the federal government
• Tariff-free imports from other TPP countries which may lead
to loss of market share or closure of some sectors
• Thus the developing countries are deprived of what would
have been the major trade gain for them
• TPPA countries have agreed to allow foreign companies to
sue governments in an international arbitration tribunal
• Existing preferences in government procurement for local
companies will be affected

8. Economy (2/4)
Transparent decision making is critical for the private sector !!
• Without transparency, it will left room for speculation and uncertainty for country’s economy

9. Economy (3/4)
Conservative approach to such measurement gives an estimate for annual worldwide bribery of about US 1 trillion dollars*
• Economic downturn are also the effect the in-transparent of doing business
• Such as in-transparent in awarding contract (bribery, favoritism, corruption)
• In the construction industry, project costs typically increase by more than 25 per cent as a
result of corruption. Similar mark-ups have been reported in the defense and finance
sectors
• Overpriced and poorly planned projects increase unsustainable nation debt
• Corruption deprives countries of finance for development
– Multilateral Development Banks estimate that some $400 billion has been looted from African states and
stashed in foreign bank accounts, around $140 billion from Nigeria alone. The African Unions estimates the
$148 billion a year leaves the continent because of corruption, and 80-90 per cent of the illicit overflows
never return to the continent. Between $20-40 billion of corrupt money is estimated to flow from transition
and developing countries into Western banks annually
* Source: World Bank 2004
“Corruption can add between 20 per cent and 100 per cent to the procurement of government goods
and services. Overall corruption-related losses can total more than a country's foreign debt”
Asian Development Bank

10. Economy (4/4)
Data transparency !!
• To ensure competitiveness of the country, Malaysia need transparency in data and
measurement to compete with others country
* Source: The World Bank

11. Social (1/5)
Corruption [is] among the greatest obstacles to economic and social development* !!
• Corruption and bribery are not victimless crimes. They hit the poorest people
hardest and undermines economic development
• Poor people are the worst affected by corruption
• Such 'leakage' leads to aid 'disappearing' before it reaches the poor
• Will lead to income inequality/disparity and social gaps
• Example :
– Wealthy urban elites can lobby the government to bias social expenditure toward higher
education and tertiary health, which tend to benefit high-income groups
– Corruption can affect the targeting of social programs to the truly needy. The use of
government-funded programs to extend benefits to relatively wealthy population
groups, or the syphoning of funds from poverty-alleviation programs by well-connected
individuals, will diminish the impact of social programs on income distribution and
poverty
* Source: The World Bank

12. Social (2/5)
Freedom of information – key of social development !!
• Free access to information is not only elementary to the right of freedom of
expression but also fundamental to the exercise and realization of numerous social
and economic human rights
• It is for people to be knowledgeable about the way their countries are run, about
their own rights and to enable them to participate in shaping policies and politics,
they require publicly held information
• Such information affect their lives and with it they can demand change and
effectuate improvement
• Freedom of information is thus the prerequisite for people’s effective participation
in the political, social and economic affairs of their countries and directly benefits
socioeconomic development and the efficiency of government

13. Social (3/5)
Freedom of information – key of social development !!
• Speculation and price of services and goods are related. People tend to buy goods base on their
‘concern/ worry’
• Transparency guarantees of safety net in the case of GST implementation
• “Rakyat” feedback to Government’s policy (increase of good price, implementation of BRIM,
etc.)

14. Social (4/5)
Freedom of information – key of social development !!
• Public need to know how government spend their money and its effect
on government’s financial
• Government overspending could create country instability & unrest
* Source: The World Bank

15. Social (5/5)
Freedom of information – key of social development !!
• Transparency in data information delivered by government is crucial in ensuring social stability
• The rise of social media and sharing information, Government need to publish fast and reliable
information
• Public perception toward government in providing ‘rakyat’ with good information and managing crisis
especially thru social media important for peace and harmony
• In the crisis event, transparency ensure government’s delivery reach ‘rakyat’

16. Environment (1/4)
Transparency in decision-making as an important principle for effective environmental impact assessment!!
• Transparency regulations have become an increasingly popular tool globally and in range of issue
areas, from the environment to anti-corruption and service delivery
• Require government to disclose information on
– Environmental law, regulations and standards
– Allocation of emission quotas and permits
– Pollution fees and penalty collected
– Exemptions, reductions or postponement granted
– Outcomes of investigations into public complaints
– List of violators of environment regulations

17. Environment (2/4)
Transparency on Environment Issue !!
• People need transparency data on environment to be part of effort in
climate change
• Data change how people react on environmental issues
• Lynas issues raise concern
among Malaysian whether it
is safe or harzardeous
Air Pollution Index (API)

18. Environment (3/4)
Sample of Cases !!
• On August 1, Putrajaya and the Selangor state government signed the Heads
Of Agreement on restructuring the water supply industry, paving the way for
a long-term solution to the water issue in the state
• Signing the agreement in the midst of a change in administration could lead
to questions of moral and legal legitimacy, especially since there has hardly
been any openness and transparency in the negotiations so far
• The deal saw hefty payouts to the water concessionaires in Selangor and
Santiago called on Putrajaya to postpone the signing of the final agreement
on the water restructuring exercise in Selangor
• Due to that, the prolonged water crisis in Selangor not just affecting the
environment, but also the economy and social
Case 1

19. Environment (4/4)
Sample of Cases !!
• Given China’s decentralized administrative structure, environmental
disclosure ends up being weakest in the most polluted cities
• Environment ministry’s enforcement costs remain high. Local government
behavior depends on their economic priorities and the nature of their
relations with enterprises. Chinese enterprise behavior depends on the
character of their relations with government and Multinational companies
• Provided China’s authoritarian structure, improved governance does not
translate into stronger accountability, challenging common assumptions
about the relationship between transparency and accountability
Case 2

20. Conclusion ?? Recommendation ??
Government need transparency
guarantees to ensure Sustainable
Development
Social Economy Environment

21. Thank you!