Conservation technologies for archaeological sites and artifacts

  Conservation technologies for archaeological sites and artifacts

 Conservation of archaeological sites

Excavation and conservation technology              

 Archaeological sites which have been excavated are usually backfilled for preservation. Structural components which are difficult to conserve in their original, unearthed state when using the backfilling method, such as pillar bases and platform exteriors made of tuff, are subjected to preservation treatment after removal from the site. However, the ideal situation would be to preserve the excavation site as is, with the entire site exposed, without backfilling or removing site components.

   When an excavation is carried out with a view to preserve and organize the site post-excavation,

conservation technology becomes involved in a variety of forms. Investigating the material and

structure of unearthed artifacts and remains yields important information in determining the

archaeological nature of the site. An environmental investigation is also needed to find out the

geographical conditions of the site as well as the state of preservation of the remains. Ultimately, it

becomes necessary to formulate a conservation plan which takes all of this information into account

in a comprehensive manner.

Conservation on site : Remains situated in dry soil can be impregnated with a material such as

synthetic resin to strengthen and stabilize the structures. However, in light of the weather resistance

of synthetic resins and the structure of the remains, it is not an easy matter to carry out conservation

in conditions exposed to direct sunlight and precipitation. Generally, a protective structure such as a

cover or roof is installed over such sites for display and conservation, even when they are hardened

with synthetic resin. In cases such as kiln sites, where the structure is three-dimensional and the

ceiling portion has collapsed, a partial restoration may be performed which also serves to support

and bolster the overhanging walls of the kiln. The ceiling portions are restored with hard urethane

foam, which is lightweight and can be shaped freely. By partially restoring the ceiling, the structure

of the kiln body can be more concretely presented for effective display and conservation.

   The conservation of remains made of rock, such as foundations and platform exteriors, is also

important. On the earth’s surface, rocks are vulnerable to accelerated weathering from physical,

chemical, and biological forces due to direct exposure to sunlight (temperature etc.), wind, rain,

weather damage (moisture, wind, sand, acid rain, etc.), and salts. Of course, it is often the case that

rocks which were underground for long periods have also deteriorated due to such effects as

moisture.

   There are several types of weathering depending on the type of rock. Plutonic rocks such as

 granite have large grain sizes and break up into fine gravel, granules, and sand due to the loss of

 cohesion among crystals with the disintegration of feldspars, micas, and, in some cases,

  hornblendes. Volcanic rocks such as andesite’s are relatively likely to retain their shape, but even so

  the substrate (glass) of the surface layers has often undergone degeneration from hydrolysis and the

  feldspars which are present as phenocrysts have dissolved and disappeared. In general, black

  colored andesite’s have become whitened. Moisture-logged portions may have turned into clay.

  Pyroclastic rock, such as tuff, have weak consolidation to begin with (welded tuff has strong

  consolidation) and is prone to weathering. Porous by nature, tuff develops more cavities and spaces

  when weathered and becomes more absorbent of water. Needless to say, when severely weathered

  it becomes argillaceous, or clay-like. Tuff with high moisture content when unearthed must be kept

  from rapid drying, as it will begin to crack when allowed to dry quickly. The same thing can be

  said for sedimentary rocks such as sandstone. Generally speaking, rock which has deteriorated and

  developed many spaces will absorb more moisture, and will undergo more damage from freezing

  and thawing. Therefore, when excavation is performed during the winter, there is a need to protect

  the structures from freezing by applying a sheet over a thick layer of protective material such as

  unwoven fabric.

    In performing conservation treatment, there is a need to strengthen the deteriorated rock and apply

a water repellant finish to decrease moisture absorption. However, when strengthening the rock, care

must be taken not to apply a coating which suffocates the rock. Impregnation is carried out with

synthetic resins or strengthening/water repellant impregnates such as alkyl silicate. There is a need

to devise ways to ensure sufficiently effective impregnation of the entire structure, as insufficient

impregnation of the agent into the interior of the structure results in unevenness of strength, cracking,

and separation of strata, and possible peeling of the surface in future. The dipping method, in which

the structural component is immersed directly into the impregnate, and the continuous spray method,

in which the impregnate solution is sprayed onto the rock, are some of the methods used to

impregnate the rock effectively with the preservative.

Conservation through relocation etc.  In not a few cases, important archaeological structures

found through excavation cannot be preserved on site. Or, in many cases a portion of the cultural

layer or shell midden must be cut out and transported indoors for close inspection. Archaeological

structures thus removed can be utilized as effective displays in museums and resource centers. In

such cases, hard urethane foam can be used to package the structure for removal and transportation.

There are a variety of types of urethane foam. The type used for the removal of archaeological

artifacts and structures is the kind where two liquids are combined and mixed together to create foam.

It is capable of filling narrow, confined, irregular spaces completely with foam, allowing for

complete on-site wrapping of intricately configured archaeological structures.

    Recording the horizon of the geologic strata is also important in the disciplines of geology,

prehistory, archaeology, and soil science. In Europe, methods of taking thin film cross-sections of

sedimentary strata for the purpose of preserving profiles of geologic strata have been studied and

developed over a long period of time. There are two types of resin which have been developed for

the purpose of collecting thin layers of soil strata in archaeological excavations: epoxy resin and

polyurethane resin. Epoxy resin can be used for dry soil, and is characterized by its high strength and

for having virtually no shrinkage during hardening. Polyurethane resin, on the other hand, is

advantageous in that it can be used for damp soil strata, and has an extremely wide range of

application. When used for soil stratum transcription, the resin is applied to the surface to be

transcribed, to which gauze or other backing material is made to adhere to, and over which the resin

is applied again. When the resin is completely hardened, it is rolled up and peeled off the soil strata.

After the transcription is washed with water, it is subjected to surface treatment with resin, and

affixed to a panel or similar backing for display and/or conservation.

        Conservation of archaeological artifacts

Investigation of the excavation environment Prior to subjecting an archaeological artifact to

conservation treatment, it is important to investigate the kind of environment it was unearthed in, so

as to consider what kind of conservation treatment to carry out, as well as the environment in which

to conserve it prior to and following such treatment. That is, by investigating the underground

environment of the artifact, we can explore the factors behind its deterioration and/or weathering,

and use the information to identify the state of deterioration or to consider methods of conservation.

Furthermore, this information is utilized when designing programs for the storage and display of

cultural properties: conditions such as the appropriate temperature, humidity, and lighting, as well as

the structural design of air conditioning equipment and storage facilities.

   Specifically, measurements are taken of the temperature and humidity, and analyses are performed

of the soil and water quality, to determine whether the artifact had always been kept in dry

conditions, whether there were great fluctuations in temperature, the characteristics of the soil, etc.

When handling metal artifacts, the chlorine concentration in the soil provides a wealth of

information in regard to how to carry out the subsequent conservation treatment.

Removal of the artifact    Archaeological artifacts which have remained relatively strong can be

removed as is, without any special measures, as long as care is taken. However, in many cases the

artifacts are in an advanced stage of corrosion and/or deterioration, and any attempts to remove them

as they are may result in damage to the artifact’s shape. Materials used for the removal of such

fragile artifacts include hard urethane foam, mentioned above in the description of transporting

archaeological structures, liquid nitrogen, or resin.

   Dry artifacts are brushed with alcohol to remove the sand and soil on the surface to the degree to

which it is possible. On-site cleaning should be kept to a minimum to avoid any loss of information

that the artifact may hold. After drying, acrylic resin is applied to the artifact to strengthen it

temporarily. When the use of acrylic resin alone is not sufficient, or when the artifact is broken into

many fragments, several sheets of finely cut up gauze are pasted together and backed with resin

before removal of the artifact. After taking the artifact indoors, a solvent (acetone, toluene, xylene,

etc.) can be used to take the gauze off, little by little.

   Particularly special care must be taken when performing on-site cleaning of artifacts which are

moist, as there is a possibility that the soil around it also contains textiles or other organic artifacts. If

alcohol dehydration or air drying is possible; the aforementioned treatment can be carried out. When

drying is not possible, water soluble acrylic resin may be used for treatment, or hard urethane foam

may be utilized to cut out the artifact complete with the surrounding soil, and wrap it for removal.

Plaster of Paris was often used in the past for the removal of fragile artifacts. However, because it is

laborious and time-consuming to remove the plaster afterward, and in order to avoid inadvertent

shaking etc. of the artifact, it is advisable to avoid the use of plaster. Also, when the artifact has a

high moisture content making the above-mentioned work difficult, it may be possible to use liquid

nitrogen to freeze the entire artifact with the soil around it for removal. However, it will thaw in a

short time and there must be steps taken to ensure the shape can be maintained, by the use of

urethane foam for example.

Materials analysis          The conservation science of cultural properties begins with the analysis of

its material. Materials analysis is performed first through observation with the naked eye and the

microscope, with instrumental analysis carried out as necessary. However, when analyzing valuable

cultural properties, it is preferable to do so without taking samples, that is, non-destructively. Even

in the rare case when sampling is allowed, it is needless to say that the samples must be in very

minute quantities.

   Furthermore, the conservation science of archaeological artifacts demands an accurate grasp of the

interior of the article, which cannot be seen. This is essential to elucidate the method of manufacture,

and also provides information that is important for cleaning, restoration, and other processes of

conservation. The most widely used method for investigating the interior structure of artifacts has

been x-ray radiography. In recent years, researchers have been using technologies where data is

directly digitized from images taken using imaging plates with a wide dynamic range. With this

method, it is easy to perform computerized image analysis which is difficult with film photography.

Furthermore, it is possible to extract the microstructure. At the same time, the technology of x-ray

computer tomography, wherein the interior structure can be shown three-dimensionally, has also

been introduced into the field of cultural properties, making it possible to obtain more detailed

information. Neutron radiography is also being studied and put to practical use as a method for

obtaining information that is different from that obtained through x-ray imaging.

   Another method of analysis, which is most important and has become widely used, is the

deciphering of characters written in ink on wooden strips and lacquered paper. This is performed

through the combined use of infrared TV camera and image enhancement devices to decipher

writing which is beyond the visible range of the naked eye. These devices are used to decipher

writing and drawings done in ink on pottery and metal articles in addition to those made of wood and

paper.

Conservation treatment:            Traditional methods and techniques have always been valued for the

conservation and repair of cultural properties, and the materials and technologies for conservation

have been selected with care. In particular, the conservation of artwork, handicrafts, and architecture

has relied heavily on traditional materials and methods.

   However, most artifacts unearthed in archaeological excavations do not even have known methods

of manufacture, not to mention traditional methods of restoration. These artifacts have already

undergone physical and chemical changes and are in varying degrees of degeneration, necessitating a

program of conservation treatment which makes full use of modern science.

Conservation treatment for organic artifacts :           Organic artifacts include those made of wood,

fiber, and paper, out of which wooden articles are unearthed in the highest quantities. Wooden

articles range from structural components such as pillars to containers, tools, and ornaments

including bowls and pedestal tables, not much different from the modern day. In some cases, the

wooden articles have been lacquered with urushi or bear writing done in ink (such as in the case of

wooden strips). The wooden articles unearthed in Japan are usually very fragile, with the cellulose

component largely reduced and displaced with large quantities of water. Some broadleaf materials in

severe stages of deterioration have a moisture content of 1500%. This means one kilogram of the

wood contains 15 kilograms of water. Such a piece of wood, when allowed to air dry, will undergo

such pronounced shrinkage and deformation it will no longer be possible to restore it to its original

shape.

   The most important thing in the conservation treatment of unearthed organic artifacts is to bring

them to a dry state which can withstand display and storage, without causing shrinkage or

deformation. Many methods of conservation treatment have been devised and implemented to date,

and they all have one thing in common. That is that the treatment is done in two processes:

“impregnation with a chemical agent,” and “drying/hardening with a chemical agent.”

   Impregnation with a chemical agent can be done in one of two ways. One is to take a

water-steeped article and impregnate it directly with a water soluble chemical agent. The other is to

replace the water in the artifact with an organic solvent before impregnating the artifact with a water

soluble chemical agent. When using water insoluble chemical agent for impregnation, the procedure

of replacing the water within the artifact with an organic solvent becomes necessary as a

preprocessing step. The primary objective of impregnation with a chemical agent is to strengthen the

artifact and give it dimensional stability. When replacing the water in the artifact with the

impregnating chemical agent, the impregnation step itself becomes the dehydrating process. In this

process, the important point is the osmosis and diffusion of the chemical into the artifact. Generally

speaking, when a high density solution is added to a low density solution, there is movement of

solute and solvent in an effort to make the overall density uniform. For instance, in the case of

impregnation with polyethylene glycol, the solute is polyethylene glycol and the solvent is water.

That is, the water within the artifact gradually works it way out while the polyethylene glycol or

other impregnating agent seeps and diffuses its way in as the solute and solvent attempt to equalize

the density inside and outside the artifact, and the water is progressively replaced with the chemical

agent. The troublesome thing about the process of impregnation with a chemical agent is that the

osmosis and diffusion of the chemical agent is not only dependent on the nature of the chemical but

also greatly influenced by the properties of the archaeological artifact, such as the type of artifact,

the species of wood, and the state of deterioration.

   Once the impregnating step is complete, the artifact proceeds to the “drying/hardening with a

chemical agent” step. When replacing the entire water content of the artifact with a water-soluble

chemical agent, the final step is heating the artifact to melt the chemical impregnate and make it a

liquid of 100% concentration. Nonsalable agents which when heated become liquids of 100%

concentration can also be used to ultimately replace all of the organic solvent within the artifact.

When an artifact which has thus had all of its solvent (water or organic solvent) replaced with

chemical impregnate is taken out of the processing tank and cooled, the impregnate becomes a solid

and the artifact has been strengthened in a dry state. Or, in some cases the artifact is taken out of the

tank at an impregnate concentration of 70-80% instead of bringing it to 100%. In such cases the

20-30% water or organic solvent remaining within the solution composition of the artifact is

removed through air drying or by using part of the water as water of hydration for the crystallization

of the chemical agent and allowing the rest to evaporate. In another method, freeze drying, the

impregnation process is completed with the artifact still containing a significant amount of water or

organic solvent, and the artifact undergoes drying under special conditions. The pronounced

shrinkage and deformation of an organic archaeological artifact is largely due to the surface tension

of water. When liquid water is heated, it boils at 100°C and turns to steam. However, when water is

placed in a cup and allowed to stand, the amount gradually decreases until the cup is finally empty.

As can be seen from this phenomenon, water molecules are always escaping from the surface of

liquid water in an effort to maintain constant vapor pressure, even when the water is not heated to

100°C. When this liquid water becomes water vapor, significant pull strength is generated.

   As can be seen in the everyday phenomenon of cut-up vegetables drying out when left in the

freezer, water molecules are also escaping from the surface of solids as well. The phenomenon of

solid ice turning into water vapor without first becoming liquid water is called sublimation. In

sublimation, surface tension is negligible. Freeze drying makes use of this phenomenon. In reality,

the water in the artifact is sometimes replaced with tertiary butyl alcohol for the purpose of

enhancing drying efficiency and to minimize shrinkage and deformation.

Conservation of inorganic artifacts :  Inorganic artifacts are made of a wide range of materials:

earthenware, tile, stone, glass, ceramic, porcelain, metal, etc. Out of these, metal articles are

especially prone to corrosion while buried and pose problems for conservation.

   Ancient metal articles are made of various materials. Some are made from a single material such

as iron, copper, silver, tin, or lead, while others are made of a combination of materials, such as

copper-tin alloys or copper-plated iron, where iron was covered with copper plating. In any case, all

metals except gold undergo some degree of corrosion while buried. The causes of corrosion are

oxygen, moisture, and dissolved ions, with chloride ions believed to play a particularly major role.

Such unearthed metal archaeological artifacts are subjected to scientific investigations relating to

their structure and material, and are made to undergo conservation treatment before being displayed

in public or put in storage.

   In general, unearthed metal artifacts are covered with some type of rust. The covering of rust may

have inhibited corrosion in some cases, while it may have accelerated it in other cases. In order to

control the progression of rust after unearthing a metal artifact, it is important to identify the cause of

the rust and eliminate as many causative factors as possible. Generally speaking, the causative

factors of rust in metals are oxygen and moisture as external factors and soluble salts contained in

the rust as an internal factor. Through the analysis of secondary matter, including rust, it is possible

to determine from the artifact’s history as to whether the rust will continue to progress in that

particular artifact.

   Many iron artifacts are covered with iron oxyhydroxide. There are three types of iron

oxyhydroxide known to be found on unearthed iron artifacts: alpha-, beta-, and gamma-FeOOH.

Beta-FeOOH (mineral name: akaganeite) is produced in the presence of chloride ions and

accelerates corrosion, thereby posing problems for conservation. At present, conservation treatment

is preceded by x-ray diffractometry to identify the type of rust, and by ion chromatography to

determine the quantities of anions such as sulfate ions, fluoride ions, and nitrate ions, to formulate a

program for conservation. In Japan, with its climate of high relative humidity, chloride ions are a

significant causative factor for corrosion. Desalination treatment is therefore performed to remove

these ions as much as possible. Various types of desalination processes, dry and wet (solution

method), have been devised for iron artifacts, out of which the solution method is generally used in

Japan. In recent years, methods have been developed involving the use of high-temperature,

high-pressure chambers for the extraction chloride and sulfate ions from unearthed artifacts. After

completing these types of chemical desalination steps, the artifact ultimately undergoes impregnation

with acrylic resin to strengthen it.

   Chloride ions are similarly associated with the corrosion of copper and bronze artifacts. The

presence of these ions exacerbates corrosion and destroys the artifacts. Bronze mirrors, which

appeared stable at the time of unearthing, have been known to succumb to general disintegration

after several to dozen years due to advanced pitting. This kind of phenomenon which occurs

especially in bronze artifacts is called “bronze disease.” Copper (I) chloride (mineral name:

nantokite) or hydrous copper chloride (mineral name: atacamite) is detected in the diseased parts. In

recent years, the development of the non-destructive parallel beam x-ray diffractometer has made it

possible to gain diffractometry data of rust without causing any damage to valuable cultural

properties, thereby contributing to the early detection of bronze disease.

   Bronze disease is sometimes treated by removing the causative chloride ions, but because bronze

is more prone to changes in color compared to iron, the method is difficult to employ for fear of

damaging the artifact. Therefore, methods have been developed and put into practice whereby a

protective film is generated on fresh metal parts to prevent corrosion from advancing, and to protect

the artifact from the forces of chloride ions. This is called the benzotriazole method and the principle

is a type of chemical conversion treatment. It is now used generally on unearthed copper and bronze

artifacts.

        The storage environment

   Conservation treatment does not ensure the prevention of further degradation of the archaeological

artifact. Instead, it is an attempt to inhibit further degradation as much as possible. For example,

even when a wooden artifact is successfully conserved with polyethylene glycol, placing that artifact

in high temperature and high humidity will cause the polyethylene glycol to absorb water and elute,

causing the deformation and shrinkage of the artifact as a result. Or, even when a metal artifact is

treated exactly according to theory, the rust may progress in reaction with moisture. In either case,

the problem is not about the treatment itself but is about the major influence of the storage

environment.

   In order to minimize these kinds of storage problems, there is a need to maintain the storage

environment in an optimal state. Notwithstanding the need to upgrade storage facilities so that they

can maintain a constant temperature and humidity, it is also important to deal with each artifact

individually. Generally speaking, oxygen and moisture are the environmental factors which are most

closely associated with the deterioration of artifacts during storage. Therefore, devising methods to

shield the artifact from oxygen and moisture will help to create significantly favorable conditions.

One method devised from this standpoint is the use of deoxidizer and desiccant in a bag made of

special film with extremely low air permeability. Since this method can be applied to artifacts of

different types and sizes, it can be described as an excellent method of storage. However, it is not a

permanent method and must be checked on continuously. In any case, we must recognize that

artifacts which have undergone treatment are not stable in every kind of environment and that

storage must be undertaken by checking the status on a continuous, ongoing basis.

Research on Ranikot

        SPEECH OF M. H. PANHWAR AT SEMINAR ON

                                  RANIKOT.

1. Who so ever built Ranikot fort or when they built it, will remain disputed,

unless explored by Archaeologist, but it was never occupied and cannot be

occupied in future this will remain undisputed. Climatic conditions of Sindh

were not known to ancients. They neither had concepts nor had developed

instruments to collect climatic data. All this came up in at end of 16th and

early 17th century in Europe. Surprisingly Korean had developed rain gauge

around 1400 AD, but it was not put to any scientific use. The British collected

climatic data for each Taluka head quarters from 1904 onwards. For some

cities climatic data were available from 1870s and Department of

Meteorology, Government of India had issued a booklet “Climate and Indian

Farmer” in 1945. That publication laid down information on frequency of five

inches of rainfall in one day in different areas of undivided India. Further

work on climate of Sindh by the present author showed that there can be

possibility of 5 inches of rainfall twice in even 5 years in Ghorabari-Badin

area, once in 5 years in Hyderabad-Mirpurkhas area once in 10 years in

Sann-Sakrand-Nawabshah area, once in 20 years in Moro-Dadu-Johi area

and once 33 years in Rohri - Jacobabad area. Dadu - Johi - Gaj area had

more 5 inches rainfall three times in one day in past 50 years and the area,

has seen flooding of Dadu, Johi and Sehwan Talukas in 1956, 1977 and

1994. This type of rainfall caused LBOD to breach in 2003 and flooded vast

area. In the latter case it was 5 inch rainfall within a week in three districts,

Nawabshah – Sanghar and Mirpurkhas and combined waters caused flood.

This is known for past 50 years but none seems to be planning for it.

2. Now coming to Ranikot fort, it is close to Sann-Sakrand-Nawabshah and 5

inches rainfall can occur in one day, once in 10 years. The Ranikot Fort

having circumference of 20.5 miles and nearly rectangular in shape will have

an area of about 25 square miles within its boundaries i.e., 16,000 acres. Its

three gates to south, west and north, allow rain-fed streams to bring

additional water in side the fort. Maximum contribution is from Mohan Dhoro

of Mohan Nai, catchment of which is some 50 years miles, i.e., twice as much

as that of the fort itself and this water enters the fort at Mohan gate exactly

apposite to Sann gate. The catchment of those rains fed rivers is total of

more than 50 square miles, but needs to be verified. This makes total

catchment of more than 32,000 acres and if all that rain passes through the

main gate in 12 hours it would be 13,000 cosecs, almost one and half times

that of Rohri canal at Khairpur and the same as Nara canal. To allow this

water to pass, gates should have regulator gates bigger than Rohri canal and

same as Nara canal. Such rains are occurring regularly 6-7 times each

century and therefore Sann gate will be washed away if rebuilt from time to

time. The same will be the case at Mohan gate, but it has not been verified.

It seems that it was rebuilt a few times, only to frustrate the owners, within

Speech of M. H. PANHWAR at a seminar on Ranikot Copyright www.panhwar.com      1

shortest possible time. Time and rain waited for no man. The fort has

remained unoccupied since its construction.

3. We have records Nawab Wali Muhammad Leghari, who got main gate

repaired with strong steel hinges and when rains came, gates and steel gave

away as if the latter was made with wax. This is just an example.

4. That fort was never occupied is clear from the fact that there are no old

settlements inside the fort, no places of worship, no graveyards, no pottery

shreds and in brief no information on any settlement except fort walls

repaired and renovated according to weapon of war used over centuries.

5. Such fort though strategically important hide out, 36 miles (60 kms) to

the west of the river Indus which flowed near Shahdadpur, with half of

distance through hills and would be safe from any cavalry attack, as there is

no water in the last 18 miles for animals to drink. Fort could not be safe

heaven, due to periodic heavy rainfall floods, which destroyed its main gate.

There are periodic changes made to protect fort from guns. Originally it was

for bow and arrow offence and defence, next cross bow and then against

guns and finally against muskets. These changes are systematically visible in

periodic repairs.

6. Mr. Khursheed Hassan retired Director General Archaeology has written a

book on “Forts of Pakistan” and he presented me a copy, yesterday on

(February 25). It mentions a dome near the gate, similar to the one in a

mosque at Giri near Taxila, built by the later Ghaznavids who ruled west part

of Punjab from Lahore. The date can be 11th or 12th century. It is not

inferred that peacock and buffalo engraved on it. Lion was emblem of Seljuks

(12th - 13th century) and buffalo could be symbol of Sindhi buffalo breeders

(Jats of Southern Punjab or Meds of Sindh).

7. This only establishes antiquity of fort. My opinion is permission should be

taken from Shaikh Khursheed Hassan to print 30 pages from his book on

Sindh forts as that would also throw light on the other forts of Sindh. Some

additions also show floral patterns, most probably added after 10th century.

My previous thinking (1981) that fort belonged to Bactrian Greeks or

Parthians is changeable on the ground that from 600 BC – 400 AD, the rulers

could not have been powerful enough to spend on such elaborate fort, as it

was period of severe drought world over. There was favourable climate from

500 – 650 BC, the period of Rai Dynasty of Sindh. Rai rulers were Sudras

(lowest caste in Hindu hierarchy), but were fair and just to public and such

accepted as Rajputs (sons of kings). During their period a number of

monumental stupas were also build and fort could pertain to that period, but

this too is guess work. They were in conflict with Sassanians and may have

thought of such defence, but nothing is sure.

8. My other comments are that in Quetta region, Miri means fortress and has

nothing to do with Mirs of Sindh. Fossilised trees of fort and surroundings

belong to 53-62 million years ago when Ranikot series of mountains were

Speech of M. H. PANHWAR at a seminar on Ranikot Copyright www.panhwar.com    2

laid. In the fort British geologists Blanford and others lived and explored

geology of Western Sindh between 1865 and 1879 and produced two

monumental works namely “Geology of Western Sindh” by Blanford 1879 and

Duncan and Sladen, Mem. Ind. Geol. Sur. 1871. They are useful even today.

9. Hyderabad cannot be considered as Nerunkot as most of city has been

built in 20th century and no debris of any kind are found form the ground

there. In the 8th century river flowed from Brahmanabad and one branch of

it passed east of Tando Allahyar and another through present Fruit Research

Institute Mirpurkhas. Hyderabad was at higher level than the other two and

water could not be brought there from the river to Hyderabad. Ground water

around the city of Hyderabad is brackish within 10 miles (16 kilometers) in

each direction. Nerunkot may be at the foot of Ganjo Takar hills close to

Khathar as Henry Cousins had suspected.

10. There is talk about conservation. Einstein had said; “Best is enemy of

good”, Conservation to improve old monuments is science in itself. Present

renovation of Ranikot fort amounts to destroying it. Original stone is of dark

brown colour, set in lime mortar. This stone is very hard and lime turns into

stone as it ages. Tourism Development Corporation is restoring it with white

Laki lime stone, which is softer and it is being set in cement mortar. Cement

has life of about 100-150 years and then it turns into dry dust. Lime has

indefinite life. Thus best restoration has become worse archaeologically.

Restoration is not every body’s job. It is special branch of archaeology.

11. G. M. Sayed had invited Col. Rashid, Hassamuddin Rashdi, Rabani, and

Joyo Saheb and me and arranged our visit to the fort in February 1965. Then

he followed it by involving others. In 1981 Seminar G. M. Sayed should have

been invited, but sponsors did not thing it proper. In my speech on that

occasion, I had mentioned of G. M. Sayed’s initiative and knowledge of forts.

Some speakers were not ready to hear his contribution.

Speech of M. H. PANHWAR at a seminar on Ranikot Copyright www.panhwar.com   3

Mahatir Economic Policies

CASE STUDY

TOPIC:

REALITY OF MAHATHIRISKONOMISM

(End Notes and References are given in A.P.A Style)

BACKGROUND OF MAHATHIRISKONOMISM

Mahathiriskonomism is a thought concept in an effort to save the economy under crisis and has proven successful. This model was a manifestation of idea and an action plan used by Malaysia during the economic crisis, which was an initiative

of Tun Dr. Mahathir Mohamad during his reign as Malaysia's Prime Minister. With experience in handling two great economic crises, in 1982 and 1997, the birth of an economic management under stress by Tun Dr Mahathir can clearly be called as Mahathiriskonomism. Therefore, the thought perspective and idea with the actions that were used in 1997 was perceived as an important effective experiment in handling the economic crisis which has defied western believes, applied by the International Money Fund (IMF) and also the World Bank under the Washington Consensus. The global economic crisis 2008 made Malaysia an important subject as alternative management in economy under stress. In this ever challenging world, no country in this world can escape from menaces and threats. The threats that emerge can come in various forms. One of the threats and menaces that can manifest is in terms of economy and national development.

Currently, in this globalised era, international institutions are also used as instruments to threaten and menace a country’s sovereignty. The westerner’s are supposed to use international institutions as agents, design to shake the stability and present an impact to the government of a country. Consequently the countries being threaten are compelled to accept the injection from the International Money Fund (IMF) which is perceived by some leaders and the public as a proxy to

United State and westerners. The IMF had succeeded in confusing the local financial and political system. In the quest to defend the integrity and sovereignty of Malaysia, under the leadership of former Prime Minister, Y.Bhg Tun Dr. Mahathir Mohamad had successfully minimized the impact of threats and maintained economic management and national politic towards stability. Hence, this approach which can also be referred as 'Mahathiriskonomisme' is identified as a successful

approach that amazed the world, furthermore it is observed and studied not only by economy and political researchers in Malaysia, but also international researchers.

INTRODUCTION

Mahathiriskonomism derives from the combination of the name 'Mahathir' from Dr. Mahathir Mohamad, former Malaysian Prime Minister, with the word risk and economy, in addition the prefix 'ism' is attach to suggest a thought o

ideology (Md. Shukri, 2007; Md.Shukri Shuib, Mohamad Faisol Keling and Mohd Na’eim Ajis, 2008). Therefore the term 'Mahathiriskonomism' is created, which by general definition is the paradigm and thought of Mahathir concerning the economic risk that Malaysia faced during his reign as Malaysia's Prime Minister from July 1981 to 31st of October 2003 .

In this ever challenging world, no country in this world can escape from menaces and threats. Threats that appear can come in various forms. One of the threats and menaces that can manifest is in terms of economy and national development. Currently, in this globalised era, international institutions are also used as instruments to threaten and menace a country’s sovereignty.

The westerner’s are seen to use international institutions as agents, design to shake the stability and present an impact to the government in a country.

This is indeed the current reality that the world is facing. Whether it is true or not, it depends on the perception and view of each individual. Remembering the economic crisis in 1997/98, many nations of the world that was threatened by the crisis were a result of the attack on their currency.

“Countries like Mexico, Argentina, South Korea, Thailand, Malaysia and Indonesia are among the countries that directly experienced the impact of the attack on the currency. The threat on the value currency caused it to fluctuate dramatically and became the source of economic chaos of the country. Every planning from national budget, company, business and also personal was troubled by the instability of the currency in the international market”.

(Md. Shukri, 2007; Md.Shukri Shuib, Mohamad Faisol Keling and Mohd Na’eim Ajis, 2008).

Malaysia and Indonesia became a literature review of the new form dilemma of threat menacing national integrity and sovereignty. To defend integrity and sovereignty of a country, the 'Mahathiriskonomism' approach is perceived successful, respected by the world and now studied by not only political economy researchers in Malaysia, but even international researchers. Previously, there have been studies explaining Mahathir's approach, such as Mahathirism, and also Mahathironomics conducted by Prof Datuk Dr. Adnan Alias, and Md. Shukri Shuib had proposed the new term to describe on Mahathir success on handling economic crisis a‘Mahathiriskonomism’. Therefore, this paper intends to present another observation on Mahathir’s analysis of risk and economic challenge that Malaysia faced during the financial turmoil in 1997/98.

MAHATHIRISKONOMISM A REGIONAL MODEL

Mahathir showed his willingness to take risk, which is to defy popularity. Initially, around the peak of 1997/98’s economic crisis, on the 1st of September 1998 he decided on a political action that was unreasonable during a time the country is struggling with serious economic disorder; he sacked the Finance Minister who was also the Deputy Prime Minister and at the same time the number two leader after him within the United Malay National Organization (UMNO) and National Front (BN). Anwar Ibrahim was sacked and this was another challenge that Dr. Mahathir had to handle

simultaneously with the economic crisis that struck the country.

“Subsequently, after creating a political dimension post Anwar, without the number two, on the 2nd of September 1998 he decided on a drastic measure that is restricting resource or instrument of speculation. For this purposes, he prevented offshore activities by controlling selected foreign exchange to stabilize short-term capital”.

(Md. Nasrudin, 2000: 89; Md. Shukri, 2007; Md.Shukri Shuib, Mohamad Faisol Keling and

Mohd Na’eim Ajis, 2008)).

Dr. Mahathir's decision was ingenious through his willingness to face uncertainty and achieve

his objective. He created the '3R' formula that meant relax, respect and response.

With this approach Dr. Mahathir was clearly relaxed in handling any ordeal although sometimes it reduced his popular among the people and voters, because he hold firm to what he believes true and right. Respect means to respect and hope his leadership and country to have self-respect, he gives response to every action made accurately and implement the correct policy and action to enable the people and also international observer not just seeing the success of his actions but also to enjoy the success together. All along his administration, there existed various national policies which include

elements of politics, economy and social either individually or collectively.

The policies that have been implemented during his administration such as:

i) Leadership by Example. The “leadership by example” policy was launched by the Prime Minister on the 19th of March 1983. The foundation to this policy success is the existence of an excellent leadership that can be of exemplary.

ii) Clean, Efficient and Trust is a philosophy that believes noble values help increase quality, productivity and credibility and also trigger the spirit of working efficiently. This policy was launched in April 1982.

iii) Islamic Values Application by application of Islamic values aims to form a happy country and to produce self-respected Malaysians respected by other nations

.iv) Malaysia Population towards 70 Million.The policy to increase the population to 70 million people had been suggested by the Prime Minister in the UMNO’s Grand Assembly in September 1982. He believes that with a total population of 70 million within 115 – 120 year, the country would be able to be more successful. The suggestion was again proposed during the presentation of

Malaysian Planning on 29th of March 1984. In the efforts to achieve this objective, the government has unveiled several strategies, such as tax policy and labor benefits providing benefits to

families having 5 children.

v) Privatization Policy. Privatization policy was first introduced in the year 1983 after the Malaysia cooperation policy. Through this privatization policy, the government had transferred power, interest and investments to certain private sector. By privatizing specific services, the government believed that it would enable to increase the sectors effectiveness and efficiency.

vi) Malaysian Cooperation Policy. Malaysian Cooperation Policy was proposed by the Prime Minister Dr. Mahathir Mohamad during the launching of the National Institute of Public Administration (INTAN) on the 25th of February 1983.

This policy aims to stimulate the private sector’s active engagement in national development. The key strategy of this policy is to enhance ties between public sector and private sector in various fields. The relationship among public and private sector will be improved which will help contribute to national development.

vii) Vision 2020. Dr. Mahathir, when presenting a paper work entitled “Malaysian: The Way Forward” at the first conference of Malaysian Trading in Kuala Lumpur on the 28th of February 1991, stated nine main challenges that Malaysia needed to face to become a new industrial nation and a developed country in year 2020. In year 2020, Malaysia will be a united country with citizens who are confident, high moral value and strong ethics, democratic, liberal and compromising, caring, fair in terms of economic distribution, progressive and prosperous and have full control over the competitive, dynamic, active and viscous economy.

viii) National Development Policy (DPN). National Development Policy (DPN) aims to attain a balanced development in establishing united and fair society. DPN stresses on to the growth with fair distribution enabling every Malaysian to participate in any principal economic activity. DPN is a continuity of the New Economy Policy (NEP) with a goal to eradicate poverty and reform society.

Simultaneous economic crisis with political challenges that Mahathir faced was also similar to the situation in Indonesia. At the time of economic crisis, the most populated country in ASEAN was also struggling with reformation.

“In Malaysia, Anwar also launched a movement comparable to Indonesia and used the same slogan. In Malaysia, in the development and prosperity creation perspective, Dr. Mahathir had put a strong foundation to the national economy system as one of

the main priorities in Malaysia”.

(Md.Shukri, August 2007: 50; (Md. Shukri, 2007; Md.Shukri Shuib, Mohamad Faisol Keling and Mohd Na’eim Ajis, 2008)).

In the past, politics and military were the main priority of a country, but now economy has become a source of threat to the national security of a country if it is not manage and examine thoroughly

and strategically.

“In recalling the downfall of the currency in 1997/98, Dr. Mahathir had declared war and economy

emergency by setting up National Economics Action Council. He introduced a method whereby the post as Finance Minister is hold by the Prime Minister and elected prominent local and foreign economic experts to tackle the economic problem”.

(Md.Shukri, August 2007: 50; (Md. Shukri, 2007; Md.Shukri Shuib, Mohamad Faisol Keling and Mohd Na’eim Ajis, 2008)).

This decision was taken to enable the problem relating to the national and international economic system could be monitored and take appropriate action so that the country is not unharmed in stability and prosperity.

FEATURES MAHATHIRISKONOMISM

Mahathiriskonomism is generally Mahathir's thoughts on dealing with the economical and political issues especially in facing national sovereignty threats during the economic crisis in 1997/98. It is identified that there exist several fundamental features of Mahathir’s thoughts in determining a decision, according to Prof Adnan Alias the basis of Mahathir's thoughts covers elements as follows:-

First: Back to basic which is to question the fundamentals and find the simplest explanation to solving a problem.

Second: Confront the flow, Dr. Mahathir dare to propose an idea that is obviously different from the trend or conventional.

Third: Make the right decision, this is usually a characteristic of a successful entrepreneur, every decision is not only base on the right or best way but also stresses the decision’s need to be materialized until fruitful.

Additionally, Mahathiriskonomism also include the courage to risk as a key element in achieving Mahathir’s action in his response to face the financial crisis. Mahathiriskonomism's features also include elements of idealistic thoughts and actions and sometimes transcend time. Mahathir's thought are visionary and idealistic with strategies and specific distinctive developed nation in year 2020. Mahathir's thoughts can also be characterize as responsive to time or environment, and far from being futuristic. Mahathir's thought are able to adapt risks of political economical challenge,

this is clearly seen through his idea by suggesting measures especially in anchoring the value of Malaysian Ringgit as RM3.80 to AS$1, imposing capital control that was labeled as an innovative financial instrument by Tan Sri Nor Mohamed Yakcop who was a Malaysia’s Finance Minister, which was the most significant measure in ensuring stability of Malaysia’s financial system

Measures that were carried out in the administration of Dr. Mahathir through the National Economic Action Council enabled Malaysia to face foreign speculator's attack which have capitals of over AS$500 billion. Moreover, according to Tan Sri Nor Mohamed Yakcop, Malaysia is capable of providing a model that is the opposite of IMF's package to countries borrowing money from this monetary fund; that is with not raising the interest rate.

Malaysia instead lowered the interest rates to increase the number of liquidity or the amount of money in the market to stimulate economic growth, as a result the IMF loosen the conditions by granting the countries lower interest rates to inject liquidity to their economy so that Malaysia is not seen superior to those countries assisted by IMF. A vision with merely idealistic idea can not guarantee in raching an objective, but with appropriate strategies and specific techniques, Tun Dr. Mahathir was able to response to the situation. According to Ahmad Naim in responding to the technology progress, Multimedia Super Corridor was created and had since been develop in tandem with the current technological advancement. Dr. Mahathir is sharp in creating a situation and being able to provide an objective of his leadership with a clear action plan. This is what it called as leadership intelligence using the framing technique that mean that a leader possesses the leadership language and give directions.

“This definition emerged and is used commonly after Dr. Mahathir’s sayings such as “We

can”, “Malay tend to forget”, “The struggle is not over”. Other popular mottos in his effort to handle the economic crisis of 1997/98 are “currency speculator”, “foreign speculator” and had also embedded patriotism though the slogans like “Our country is our responsibility” and “for you Malaysia”

(Md. Shukri, 2007; Md.Shukri Shuib, Mohamad Faisol Keling and Mohd Na’eim Ajis, 2008).

THE PERSPECTIVE OF MAHATHIR’S ECONOMY GAME PLAN

Globalization comes with an open market. The globalization concept widely used around the world had also given the birth to the free market concept. This makes globalization work in tandem with financial and economic goals. While studying globalization, usually it can also be viewed as a world threat. Dr. Mahathir perceives globalization and free market progression as some superpower’s weapon to disseminate their hegemony. The United States and other develop

countries have succeeded in making globalization as an agent to propagate their market and economical power beyond the boundaries of their country.

“Dr Mahathir explanation of globalization can be viewed as a caution for Malaysia and other countries in the region to understand and be aware of the threats behind the concept of globalization and free market that the West have proliferate”.

(Chandran Jeshurun,1993:72; Md. Shukri, 2007; Md.Shukri Shuib, Mohamad Faisol Keling and Mohd Na’eim Ajis, 2008.)

“Free market means that those who are bigger, stronger and have more capital are those who will conquer. The citizens will not receive special treatment. Foreign companies are free to enter any country to compete with the local business and bank. The small local companies will be destroyed by the big companies (western companies) and we (in the local country) will be merely low wage labors working for them. They promise that it will all depend on merit and not through an unjust

competition since they are the biggest and most experienced. And finally they will conquer every aspects of the local economy.”

(Berita Harian, 20th of June 2003)

Dr. Mahathir also demonstrated that economical instruments can become weapons to menace a nation’s stability. This is validated by Stuart Harris an emeritus professor at Australian National University. He mentioned that through globalization, the financial system is the starting point that causes an economy crisis. In this context, it is evident that through the economy and financial system, it can be utilize as weapon to destroy a nation by disturbing its stability via a

menace to one of the economic elements which can trigger a social disorder if the economy system becomes uncontrollable. In terms of nationalism, the concepts of regional and globalization can be perceived as an agenda that can inflict threat towards the sovereignty of a country. Globalization is especially assumed as the source of destruction. It can occur very fast if the country is unprepared to receive the free competition not only in the market but also in the free politics, economy and social which is highly connected with comprehensive security. This is because, in this era of globalization, the competition does not only happen outside the boundaries but also involves domestic competition inside the country.

“An imbalance competition between the rich and poor, the strong and weak will be an unjust competition. Additionally, in this global era with the notion of globalization, a rich world and foreign company who possess large capital will dominate the market and consequently monopolize the industry. In this world of globalization, monopoly will eventually prevail. The result is that the receiving country indirectly, without regulation control and protection from the government will kill the national company. This is due to the inability of the national company of a country to counter all completion with different quality and price” .

(Rosazman Hussin, 1999:143-159).

In the context of nationalism, it is normal for a country to defend the position of national company. But in this globalize era, very few people, including the leaders, view the protection of national company as important. This is the drawback of globalization seen through the viewpoint of nationalism. IMF had confessed its global mistake. But the negative effect should be fixed even though it had destroyed markets and capitals. Malaysia and other countries like Indonesia cannot

avoid this global threat.

“In comparison, Malaysia had succeeded in defending the overall sovereignty, which is rejecting the injection of money from IMF sponsored by the West. Dr. Mahathir introduced the move to loan domestically, to stimulate the economy and encourage development”.

(Md. Shukri, Ogos 2007:51).

Institutions such as Employees Provident Fund (EPF), PETRONAS and other related government institutions became the centers of credit to recover national economy. The views from world finance and economy experts also supported Malaysia’ move under the leadership of the then Prime Minister, Dr. Mahathir. Prof. Joseph Stiglitz and Prof. Steve Hanke explained their critical opinion on the expansion of global market and IMF threats to the sovereignty of a country in this era of globalization. Indonesia and Malaysia was chosen as an interesting model study case. Here it has clearly demonstrated the importance of the government’s role in handling the global threat toward the nation’s politic, economy and social stability. These three elements known as the global three functions namely politic economy and social are important elements in defending the

security and sovereignty of a nation.

THE ECONOMY AS A TOOL AND A THREAT

The Asian crisis of 1997-98 had clearly transformed Indonesia and Malaysia. Economically, socially and politically the economy crisis and turmoil presented a significant effect. This change is not only acknowledged by Malaysian and Indonesian leaders but also by the Australians who is a neighbor of these Southeast Asian nations. Paul Keating, the former Australian Prime Minister (1991-1996) in his book entitled “Engagement”, said:

”Then, from the middle of 1997, the Asian economic crisis presented Indonesia with the sharpest economic decline in its history, one of the steepest anywhere in the world in modern times. The economy shrank by 20 per cent”.

(Keating, 2000: 148-147)

Unemployment more than doubled. Inflation soared by 80 per cent. It was a crisis unlike any Indonesia had faced in the past, because it was taking place in a country that had been transformed. In 1966, when Suharto came to power, agriculture made up half the economy; now it was just 20 per cent. A large middle class of perhaps 1.5 million people had grown up. Most importantly, community expectations had changed.

“As a result of thirty years of development, the people of Indonesia expected their own lives, and the prospects for their children, to steadily improve.”

(Keating, 2000: 148-149)

MAHATIRISKONOMISM SAVED MALAYSIA

For Dr. Mahathir, in his game plan to ensure Malaysia continuously will be able to succeed, the economic elements are the major foundation, with the economic progression, prosperity will be achieved, thus directly will ease the nation and encourage the development of business arena. Additionally, with a peaceful environment, the political stability will be established

It is no wonder that various policies on development and progression were stress by Dr. Mahathir’s administration. Malaysia is not immune to threats that Indonesia had experienced, the economy turmoil of 1997-98 had presented several problems to the country.

“As describe by Md. Shukri Shuib (2007) in his article on Mahathiriskonomism, the outcome of Mahatiriskonomism revealed the bravery of Dr. Mahathir in taking risks concerning economic matters to generate absolute sovereignty. In brief Mahatiriskonomism had saved total sovereignty even though the forces of threats were troubling Malaysia’s global three functions”.

(Md. Shukri, 2007; Md.Shukri Shuib, Mohamad Faisol Keling and Mohd Na’eim Ajis, 2008).

“According to Weller and Hersh (2002), the main problem of Asian countries is the drastic capital flow. For 20 year the capital market had been flowing without control. This is evident through the increment of foreign capital from developed countries to developing countries. This increment can be compared to the increment of 1980 that only experience capital flow of US$1.9 billion to US$120.3 billion in 1997”.

(Md. Shukri, 2007; Md.Shukri Shuib, Mohamad Faisol Keling and Mohd Na’eim Ajis, 2008).

This clearly displays the financial trouble in the domestic market of Asian countries including

ASEAN and Malaysia, which is the inability to hoard the drastic foreign capital out flow like what the foreign investors executed during the Asian financial crisis 1998. And amazingly, as soon as the Asian countries experience bankruptcy, the acquisitions of foreign companies from foreign investors have attracted new investors. In 1998 alone, there was still foreign investors interest to invest up to US$56 billion in the domestic market of Asian countries. Malaysia identifies IMF not as an alternative for assistance in resolving the crisis. Japan as a friend was the alternative for Malaysia to assist the economic crisis. It is no wonder why Dr. Mahathir believes that East Asia has the potential in strengthening the regions market. Through ASEAN+3 (Japan, China and South Korea), and the collaboration of Southeast Asian and East Asia, Japan has the capability to take the role as regional super power. According to Dr. Mahathir, Japan through the success of Malaysia in managing the economy, had guarantee bon that Malaysia circulated in the international market. This was personally mentioned by Dr. Mahathir confirming that in times when Malaysia was in need to recover the economy crisis, Japan had offered its help.

Malaysia according to Prof. Stiglitz is ..

“… only Malaysia was brave enough to risk the wrath of the IMF; and though Prime Minister Mahathir’s policies- trying to keep interest rates low, trying to put brakes on the rapid flow of speculative money out of the country- were attacked from all quarters, Malaysia’s downturn was shorter and shallower than that of any other countries”

(Stiglitz, E. Joseph, Globalization and its Discontents. Australia 2002: 93).

Stiglitz also added,

“Malaysia was severely criticized during the crisis by the international financial community. Though Prime Minister Mahathir’s…many of his economic policies were a success”

(Stiglitz, E. Joseph, Globalization and its Discontents. Australia2002: 122).

IMF also recognize Malaysia’s success in solving the economy and financial crisis of 1997-98, which they had announced clearly during the annual Group of Eight in Evian, France on the

endof June 2003. The Chairman of IMF, Horst

Kohler stated:

“Malaysia has recapitalized its banks, its system is more transparent and the country has been able to deal with the non-performing loans” additionally, “Generally, Malaysia has improved the business climate”

(Kaur, 2003).

Even the former IMF chairman, Michael Camdessus, in Paris a week before said “They are (Malaysia) within the rules of the IMF which has no objection”

(New Straits Times, 2003).

Mahathiriskonomism approach is a success, this is because several years after the crisis Malaysia has recovered and improved the economy climate. In June 2003, Bank Negara Malaysia announced that the growth of NGP was 4%, revealing that Malaysia’s economy is improving. This also

supported the statement announced by the Minister of International Trade and Industry, Dato Seri Rafidah Aziz, that until April 2003 Malaysia had recorded a surplus in the international trade valuing of RM5.77 billion (US$1.52 billion).

Furthermore it enlightened that without the help of IMF, known to obstruct the financial freedom of loan receiving countries, Malaysia accomplished success with its diversified resources. Hence, what Malaysia implemented in the economic crisis 1997/98 is now clearly accepted globally as an option to save the world economy from deteriorating. The developed world has also indirectly accepted Malaysian thinking and actions derived from Mahathiriskonomism applied as an economic policy during crisis. The success of the Mahathiriskonomism’s model can visibly be seen through

excellent record achievement showing sustainable economic managerial performance.

“ It is evident, where in 1985 when the country faced critical economic state with a rate of just negative 1 percent in growth, Malaysia could overcome it and boost the growth to 1.2 percent and continue to increase and hit 8.7 percent” .

(Md Shukri Shuib, Mohamad Faisol Keling and Mohd Na'eim Ajis, 2008).

“Mahathiriskonomism's legacy of success has clearly been stated by Datuk Tajuddin Abdul Rahman, Barisan Nasional Parliament member of Pasir Salak, affirming Tun Dr. Mahathir’s vast experience in economy which has proven successful in treating the economic stress in 1997 and has brought to Malaysian’s success and therefore proposed that Dr. Mahathir be appointed as chief of National Economic Council”.

(Utusan Malaysia, 21 November 2008: 8). A repetition of the economic crisis occurred which later hit Malaysia as a result of the regional Asia-Pacific crisis in 1997-98, again

Malaysia with the distinctive model successfully encouraged positive growth where the decrement hit negative 7.5 percent in 1998, Malaysia with its 'Mahathiriskonomism' model that combines elements of Tun Dr Mahathir’s ideas and thoughts in taking economic risks have successfully brought Malaysia to a growth as much as 5.8 percent. The growth in 1999 was an increase of 13.3 percent from the previous year. Now, with a growth estimate still at 5 percent this year and 3.5 percent next year, Malaysia is still seen solid and is able to face crisis. The Malaysian Deputy Prime Minister and Finance Minister’s statement, Datuk Seri Mohd Najib Tun Abdul Razak that the continuous lesson achieved due to a decade of economic crisis has caused Malaysia to place a concrete economic base which according to him 'continuous implementation of financial reformation since 1998 has made the country's financial sector long lasting' and is actually a management style that handles economic stress in the context and model implementation of Mahathiriskonomism.

“Malaysia’s effort under Dr Mahathir's leadership in 1998 that had restructured the financial institution by combining the involvement of 71 institutions with a capital between RM13.2 to RM6.6 billions to only allowing banking operation to just nine institutions, now enables each financial institution to have capital average of RM38.3 billions”.

(Malaysian Business, November 16, 2008: 27).

“Profit of financial institutions have been positive where before tax profit in 2007 were on average RM17.7 billions compared to only RM7.4 billions in 1997”

(Malaysian Business, November 16, 2008: 27).

This altogether shows that Mahathiriskonomism has strengthened the structure and domestic financial system which is continuously feasible until today. In generating the financial industry's competitiveness, the style or pattern in the agenda has gained profit, where formerly in 1997 it was merely dependent on profit based on lending especially corporate loans that moved in 2007 to a more based upon profit from diverse source that balanced the profit by loans. This gives a multi sources move to financial institutions which directly will profit people who saves their money in the country’s domestic financial institution. Apart from that, having learned that currency can also be made as a weapon and a cause of a country’s economy downturn, the effort to strengthen the ringgits role in the local market was implemented and successful. The strength of local financial system is the fruit of Mahathiriskonomism's management style which has also made Malaysia possess bank assets and financial institution including insurance with 90 percent which is based on ringgit’s denomination that is in local currency form namely Ringgit Malaysia and has enabled protection from the risk of devaluation of dollar (Berita Harian, 21 November

2008).

Malaysia’s move modeled after the futuristic thought of Mahathiriskonomism's paradox clearly embeds the application in the national economic management and has visibly save the country’s financial system and market from a crisis that has taken place in the developed countries and the U.S financial market today. Tun Dr. Mahathir leadership clearly states that in any market, economy and the development of a country, the function of a financial institution such as banks and public

funds must be protected and feasible. In the Malaysian context, compared to the U.S, the failing of poverty level in Malaysia which has only a population of 27 millions, is not as great as what that largest capitalist country is facing. The record obviously shows that Malaysia even with only a developing country status, can afford to create a success in reducing poverty rate which is somewhat astounding. From a poverty rate of 49.3 percent in 1970 Malaysia has successfully reduced the rate to 16.5 percent in 1990, and the rate is continuously decline to only 3.6 percent in year 2007, compare to its decrement of 5.7 percent in year 2004.

CONCLUSION

It is clear that through globalization the threat towards a nation’s sovereignty exists and can happen. The role of United States as the source of national threat through economy that can spread to the nation’s politics, social and security is evident. United States role to use their regime and other global institutes are rational and concrete. Economy is regarded as a basis of national prosperity and should always be reminded it can also be the basis of national sovereignty destruction.

With the national perspective of Dr. Mahathir thoughts, the national economy and development to achieve absolute sovereignty will be difficult to perturb by global threats. The Mahathiriskonomism approach had save Malaysia even though initially Dr. Mahathir’s decision was strongly disapproved. But eventually Malaysia succeeded in recovering the economy and overall national sovereignty. Dr. Mahathir was the main actor in handling the nation’s economy turmoil.

Thus his effort and approach had proven successful and respected worldwide. Malaysia should be proud and bless to own such a brilliant thinker. The sustainability of Malaysia’s sovereignty from global threats should constantly be protected. The development of Japan utilizing the Meiji Recovery program in 1868-1912 has been continuously studied and analyzed to this date. Thus Malaysia should be proud with Mahathir Recovery as the foundation to be a developed country in 2020. Mahathir’s approach that dares to take risks in the economic environment has made Mahathiriskonomism a successful and worldly recognized approach to solve risk during politic, economy and social trouble threatening the stability of a country.

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