Explainer: why the government can’t simply cancel its pandemic debt by printing more money



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Ananish Chaudhuri

With the government borrowing heavily to fund its pandemic response and recovery, it has been suggested it could simply cancel its debt by printing more money. That sounds like an attractive idea, but it is one that would have seriously adverse consequences.

Derived from “modern monetary theory” (MMT), the suggestion is that expansionary monetary policy (i.e. money creation by the central bank) be used to finance government spending.

According to proponents of MMT, a country that issues its own currency can never run out and can never become insolvent in its own currency. It can make all payments as they come due. Therefore, there is no risk of defaulting on its debt.

This is a flawed idea based on economic misconceptions. It has been opposed by economists, liberal and conservative, including Nobel laureate and New York Times columnist Paul Krugman and Harvard University’s Greg Mankiw.

So, what does happen when the government wants to spend more than it raises in tax revenue? It needs to borrow money (known as deficit financing), and so instructs the Treasury to issue debt.

There are three major types of debt: treasury bills, treasury notes and treasury bonds.. Treasury bills have the shortest maturity (less than a year) while treasury bonds have maturities of ten years or more. They all must be paid back in the future.

The debt is typically held by banks, institutional investors and managed funds (such as Kiwisaver accounts). Because the government is not expected to default on the loans, the debt is considered to be secure. So, these bonds can typically be issued at lower interest rates than bonds from other financial entities.

man at lecturn
Increasing the money supply: Reserve Bank of New Zealand governor Adrian Orr announcing a change to the official cash rate in 2019.
GettyImages

Where government debt goes

When the Reserve Bank of New Zealand (RBNZ) engages in “quantitative easing” it essentially buys up these government issued bonds. To do this, it prints currency to pay for the bonds and this currency goes into circulation, increasing the money supply.

Quantitative easing floods the system with liquidity — the amount of money readily available for investment and spending. In turn, this should put downward pressure on interest rates because money is cheaper to borrow when there is more of it.

The RBNZ can also lower the official cash rate (OCR) to push retail interest rates (on mortgages and savings deposits) down. The aim in both cases is to make borrowing cheaper in the hope that businesses will borrow money to invest, in turn creating more jobs.

If the RBNZ is buying government bonds from the banks and investors who had bought them earlier, it follows that the creditors have been paid off. So why can’t the government simply write off this debt?




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Firstly, this takes away the RBNZ’s ability to act as an independent entity, which in itself is problematic. But even so, the debt does not disappear, it just takes the form of that additional amount of money floating around the economy.

At some point this extra money will end up being deposited in commercial banks and be held as reserves which earn interest from the RBNZ.

The currency in circulation is also legal tender backed by the authority of the government. If no one else wants to accept it, holders of this money should be able to sell it back to the RBNZ for something of value in return (US dollars, say).

One way or another, sooner or later the debt will have to be honoured.

house with for sale sign
Overheated housing markets: when money doesn’t flow to productive investment, speculative bubbles are a risk.
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The risk of inflation

In the meantime, if lower interest rates do not lead to business expansion and higher production (and there are good reasons to suppose they may not) then the net result is a larger amount of money circulating in the economy with no new production happening.

This will eventually set off inflationary pressures, which make savers worse off and provide a disincentive for saving. But saving by households is fundamental to making funds available for businesses to borrow.

In the absence of increased production this extra money may also make its way to non-productive financial assets such as equity and houses, setting off speculative bubbles in those markets.




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Why might businesses not expand, even with lower interest rates? In deep recessions it is not the lack of credit that holds them back, it is that they cannot sell their goods at prevailing prices. This reduces demand for labour, further reducing demand for goods because more customers are unemployed.

It becomes a vicious cycle of insufficient demand, where the key issue is not credit or liquidity but rather a crisis of confidence. Monetary policy loses its teeth at this point, leaving fiscal policy (via deficit financing or tax cuts) as the only option.

It’s all about trust

However, government borrowing is a long-term game. The entire system, whether deficit financing or printing money, is based on trust — that the government will honour its debt.

Simply put, no government could satisfy all its creditors if they wanted their money back at the same time. But as long as the government keeps making the interest payments on the loans, or at least has the capacity to pay back some of those creditors (sometimes by borrowing even more), the economy remains stable. The juggler’s balls stay in the air.




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If for some reason trust in a government goes, watch the balls come crashing down. Any hint of default or not honouring debt obligations will lead to long-term damage to a government’s reputation and its future ability to borrow. No one will want to hold the government’s debt in the form of government bonds.

When that happens, we see capital flight — money flows out of the country as people seek a return elsewhere. The value of the currency goes through the floor, with catastrophic effects on the economy, such as occurred during the Asian financial crisis in 1997.

The economic crisis New Zealand is facing is real and deep. Attempting to cancel debt would only reduce trust in the government and risk making the crisis worse.The Conversation

Ananish Chaudhuri, Professor of Behavioural and Experimental Economics

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Millions of products have been 3D printed for the coronavirus pandemic – but they bring risks


James Novak, Deakin University

With the COVID-19 pandemic, an urgent need has risen worldwide for specialised health and medical products. In a scramble to meet demand, “makers” in Australia and internationally have turned to 3D printing to address shortfalls.

These days 3D printers aren’t uncommon. In 2016, an estimated 3% of Australian households owned one – not to mention those available in schools, universities, libraries, community makerspaces and businesses.

A collection of desktop 3D printers in the Deakin University 3DEC lab.
James Novak

Across Europe and the United States, access to essential personal protective equipment (PPE) remains a concern, with nearly half of all doctors in the UK reportedly forced to source their own PPE.

In Australia, reports from March and early April showed hospital staff reusing PPE, and health-care workers sourcing PPE at hardware stores due to shortages.

The global supply chain for these vital products has been disrupted by widespread lockdowns and reduced travel. Now, 3D printing is proving more nimble and adaptable manufacturing methods. Unfortunately, it’s also less suited for producing large numbers of items, and there are unanswered questions about safety and quality control.




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Sharing is caring

One of the earliest examples of 3D printing being used for pandemic-related purposes is from mid-February. One Chinese manufacturer made 3D-printed protective goggles for medics in Wuhan. With 50 3D printers working around the clock, they were producing about 300 pairs daily.

Designers, engineers, students, manufacturers, doctors and charities have used 3D printing to produce a variety of products including face shields, masks, ventilator components, hands-free door openers and nasal swabs.

Many designs are freely shared online through platforms such as the NIH 3D Print Exchange. This US-based 3D printing community recently partnered with the Food and Drug Administration (FDA) and the Department of Veterans Affairs, to assist with validating designs uploaded by the community. So far, 18 3D-printable products have been approved for clinical use (although this is not the same as FDA approval).

Such online platforms allow makers around the world not only to print products based on uploaded designs, but also to propose improvements and share them with others.

Makers are using various ways to 3D print medical supplies during COVID-19.

Just because you can, doesn’t mean you should

In a public health crisis of COVID-19’s magnitude, you may think having any PPE or medical equipment is better than none.

However, Australia’s Therapeutic Goods Administration (TGA) – our regulatory body for medical products – has not yet endorsed specific 3D-printed products for emergency use during COVID-19. Applications for this can be made by manufacturers registered with the TGA.

However, the TGA is providing guidelines which designers, engineers and manufacturers are working with. For example, Australian group COVID SOS aims to respond to direct requests by frontline medical workers for equipment they or their hospital need. So, local designers and manufacturers are directly connected to those in need.

3D printing provides a means to manufacture unique and specialised products on demand, in a process known as “distributed manufacturing”.

Unfortunately, compared with mass production methods, 3D printing is extremely slow. Certain types of 3D-printed face shields and masks take more than an hour to print on a standard desktop 3D printer. In comparison, the process of “injection moudling” in factory mass production takes mere seconds.

That said, 3D printing is flexible. Makers can print depending on what’s needed in their community. It also allows designers to improve over time and products can get better with each update. The popular Prusa face shield developed in the Czech Republic has already been 3D printed more than 100,000 times. It’s now on its third iteration, which is twice as fast to print as the previous version.

A Prusa RC3 face shield 3D printed on a desktop 3D printer.
James Novak

Opportunity vs risk

But despite the good intent behind most 3D printing, there are complications.

Do these opportunities outweigh the risks of unregulated, untested product used for critical health care situations? For instance, if the SARS-CoV-2 virus can survive two to three days on plastic surfaces, it’s theoretically possible for an infected maker to transfer the virus to someone else via a 3D-printed product.

Medical products must be sterilised, but who will ensure this is done if traditional supply chains are bypassed? Also, some of the common materials makers use to 3D print, such as PLA, aren’t durable enough to withstand the high heat and chemicals used for sterilisation.

And if 3D-printed products are donated to hospitals in large batches, identifying and treating different materials accordingly would be challenging.

For my research, I’ve been tracking 3D-printed products produced for the pandemic. In a soon-to-be-published study, I identify 34 different designs for face shields shared online prior to April 1. So, how do medical practitioners know which design to trust?

If a patient or worker is injured while wearing one, or becomes infected with COVID-19, who is responsible? The original designer? The person who printed the product? The website hosting the design?

These complex issues will likely take years to resolve with health regulators. And with this comes a chance for Australia – as a figurehead in 3D printing education – to lead the creation of validated, open source databases for emergency 3D printing.




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The Conversation


James Novak, Postdoctoral Research Fellow – Additive Manufacturing, Deakin University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Malaysian Christians Seek to End Restrictions on Malay Bibles


Federation calls for removal of ‘every impediment’ to importing and printing Scripture.

KUALA LUMPUR, Malaysia, April 6 (CDN) — Christian importers of Bibles that Malaysian officials detained are balking at conditions the government has imposed for their release, such as defacement of the sacred books with official stamps.

The Home Ministry stamped the words, “This Good News [Malay] Bible is for use by Christians only” on 5,100 Bibles without consulting the importer, the Bible Society of Malaysia (BSM), which initially refused to collect them as it had neither accepted nor agreed to the conditions. The Home Ministry applied the stamp a day after the government on March 15 issued a release order for the Bibles, which had been detained in Port Klang, 38 kilometers (24 miles) southwest of Kuala Lumpur, since March 20, 2009.

Another 30,000 Bibles detained since Jan. 12 on the island of Borneo remain in port after the Sarawak state Home Ministry told the local chapter of Gideons International that it could collect them if the organization would put the stamp on them. Gideons has thus far declined to do so, and a spokesman said yesterday (April 5) that officials had already defaced the books with the stamp.

The government issued letters of release to both organizations on March 15 under the condition that the books bear the stamp, “Reminder: This Good News [Malay] Bible is for use by Christians only. By order of the Home Minister,” and that the covers must carry a serial number, the official seal of the department and a date.

The Home Ministry’s stamping of the BSM Bibles without the organization’s permission came under fire from the Christian community. In a statement issued on March 17, Bishop Ng Moon Hing, chairman of the Christian Federation of Malaysia (CFM), described the Home Ministry’s action as desecration.

“[The] new conditions imposed on the release of the impounded Bibles … is wholly unacceptable to us,” he added.

Ng described the conditions imposed by the Home Ministry as tantamount to treating the Malay Bible as a “restricted item” and subjecting the word of God to the control of man. In response, Home Minister Hishammuddin Hussein has said the act of stamping and serialization was standard protocol.

 

Government Overtures

In the weeks following the March 15 release order, the government made several attempts to try to appease the Christian community through Idris Jala, a Christian from Sarawak state and a minister in the Prime Minister’s Department.

Idris issued the government’s first statement on March 22, explaining that officials had reduced earlier conditions imposed by the Home Ministry to require only the words, “For Christianity” to be stamped on the covers of the Bible in font type Arial, size 16, in bold.

Idris informed BSM that the Bibles could be collected in their present state or arrangements could be made to have stickers with the words “For Christianity” pasted over the imprint of the stamps made by the Home Ministry officials. In the event that this was not acceptable, the minister pointed out that BSM had the option of having the whole consignment replaced, since the government had received an offer from Christian donors who were prepared to bear the full cost of purchasing new Bibles.

In response, the CFM issued a statement on March 30 saying, “The offer made does address the substantive issues,” and called on the government “to remove every impediment, whether legal or administrative, to the importation, publication, distribution and use of the [Malay Bible] and indeed to protect and defend our right to use the [Malay Bible].”

Bishop Ng, however, left it to the two importers to decide whether to collect the Bibles based on their specific circumstances.

On March 31, BSM collected the mishandled Bibles “to prevent the possibility of further acts of desecration or disrespect.” In a press statement, BSM officials explained that the copies cannot be sold but “will be respectfully preserved as museum pieces and as a heritage for the Christian Church in Malaysia.” The organization also made it clear that it will only accept compensation from the Home Ministry and not from “Christian donors,” a term it viewed suspiciously.

On Saturday (April 2), Idris issued a 10-point statement to try to resolve the impasse. Significantly, this latest overture by the government included the lifting of present restrictions to allow for the local printing and importation of Malay and other indigenous-language Bibles into the country.

In Sarawak and Sabah, there would be no conditions attached to Bibles printed locally or imported. There also would be no prohibitions and restrictions on residents of these two states carrying such Bibles to other states. A significant 64 percent of Malaysian Christians are indigenous people from Sabah and Sarawak states who use the Malay language in their daily life, and having the Bible in the Malay language is considered critical to the practice of their Christian faith.

In the case of West Malaysia, however, in view of its larger Muslim population, the government imposed the condition that the Bibles must have the words “Christian publication” and the sign of the cross printed on the front covers.

 

Christian Response

Most Christians responded to this latest overture with caution. Many remained skeptical, seeing it as a politically motivated move in view of Sarawak state elections on April 16. Nearly half of Sarawak’s population is Christian.

Bolly Lapok, an Anglican priest, told the online news agency Malaysian Insider, “It’s an assurance, but we have been given such assurances before.” BSM General-Secretary the Rev. Simon Wong reportedly expressed the same sentiments, saying the Home Ministry already has a record of breaking its word.

The Rev. Thomas Phillips of the Mar Thoma Church, who is also president of the Malaysian Consultative Council of Buddhism, Christianity, Hinduism, Sikhism and Taoism, questioned the timing of the proposal: “Why, after all these years?”

The youth wing of the Council of Churches rejected the proposal outright, expressing fears that the government was trying to “buy them over” for the Sarawak election, and that it would go back on its word after that.

Bishop Paul Tan, president of the Catholic Bishops’ Conference of Malaysia, called the proposal an “insidious tactic of ‘divide and rule,’” referring to its different requirements imposed on Malaysians separated by the South China Sea. Dr. Ng Kam Weng, research director at Kairos Research Centre, stressed that the proposal “does not address the root problem of the present crisis, i.e. the Allah issue.”

 

Muslim Reactions

The 10-point proposal has also drawn the ire of Muslim groups, who view it as the government caving in to Christian pressure.

Perak Mufti Harussani Zakaria expressed his disappointment, reportedly saying, “If the government does this, just cancel the law,” in reference to various state Islamic enactments that prohibit the use of the word “Allah” and other so-called Islamic terms that led to the banning of the Malay Bible. Malay Bibles have not been allowed to be printed locally for fear that they will utilize “prohibited” words.

The Muslim Organizations in Defense of Islam (Pembela) threatened to challenge the 10-point proposal in court if it was not reviewed in consultation with Muslim representatives.

On the same day Pembela issued its statement, the government seemed to have retracted its earlier commitment. The Home Minister reportedly said talks on the Malay Bibles were still ongoing despite Idris’ 10-point proposal, which purportedly represents the Cabinet’s decision.

As a result, James Redas Noel of the Gideons said yesterday (April 5) that he was confused by the mixed messages coming from the government and will not make a decision on whether to collect the Bibles until he had consulted church leaders on the matter, according to the Malaysian Insider.

The issue with the Malay Bibles is closely tied to the dispute over use of the word “Allah” by non-Muslims.

In a controversial court ruling on Dec. 31, 2009, judge Lau Bee Lan had allowed The Herald, a Catholic newspaper, to use “Allah” for God in the Malay section of its multilingual newspaper.

The Home Ministry filed an appeal against this decision on Jan. 4, 2010. To date, there is no indication as to when the case will be heard.

Christians make up more than 9 percent of Malaysia’s nearly 28 million people, according to Operation World.

Report from Compass Direct News
http://www.compassdirect.org

Spike in Anti-Christian Violence Feared before Burma Elections


Attacks on Christians seen as politically expedient in majority-Buddhist nation.

CHIANG MAI, Thailand, January 21 (CDN) — As Burma’s military junta gears up for its first parliamentary election in two decades this year, observers fear attacks on the Christian minority could intensify.

Mungpi Suangtak, assistant editor of a New Delhi-based news agency run by exiled Burmese journalists, the Mizzima News, said the Burmese junta has “one of the world’s worst human rights records” and will “definitely” attack religious and ethnic minorities more forcefully in the run-up to the election.

The military regime, officially known as the State Peace and Development Council (SPDC), pledged to hold the election this year, and analysts believe polls will be held after July in the country, also known as Myanmar.

Suangtak told Compass that the Buddhist nationalist junta would target Christians particularly in Karen state, bordering Thailand, and in Chin State, bordering India and Bangladesh.

Many Christians are part of the Karen National Union and the Chin National Front, armed resistance groups that have been demanding freedom or autonomy for their respective states for decades, and therefore the junta sees the Christian minority as a threat, said Suangtak.

There are over 100,000 Christian Chin refugees in India who have fled the junta’s attacks in the past two decades, according to Human Rights Watch.

Christians in Karen state are not safe. A Karen Christian worker living in the Mae La refugee camp on the Thailand-Burma border told Compass that ethnic Christians were facing human rights abuses by the junta “on a daily basis.” Most recently, Burma army soldiers attacked a church, murdered a local farmer and injured others in Nawng Mi village on Dec. 19, 2009, reported Burma Campaign UK.

Parts of Karen state fall under the “Black Zone” – identified by the Burma army as an area under the control of armed resistance groups where its soldiers are free to open fire on anyone on sight – and the junta has been launching indiscriminate attacks to take control of village after village, said the Karen Christian.

“Those who are not able to flee across the border during such attacks are either killed or forcibly relocated in and confined to temporary camps set up by the junta,” the Christian said. “Since the army litters surrounding areas with landmines, many local people die or get injured while trying to run away from or coming to the camps to look for their relatives.”

Over 150,000 refugees from Karen and neighboring Karenni states of Burma are living along the Thai side of the border, according to the United Nations High Commissioner for Refugees. More than half of them are Christian.

A representative of the Free Burma Rangers (FBR), which trains and sends teams of local people to help victims of the junta’s attacks inside Burma, said youths have been forced to become Buddhists in Chin state, where over 80 percent of the people are Christian.

Printing of Bibles is restricted, and churches are destroyed on a regular basis in the state, the source told Compass on condition of anonymity.

Access for foreign visitors to Chin state is, with some exceptions, prohibited, and the state is widely acknowledged to be the poorest part of the country, said Rogers.

“According to one Chin, the reason Chin state is denied resources, and foreigners are denied access, is specifically because the overwhelming majority of Chins are Christian,” stated a 2009 report by London-based advocacy group Christian Solidarity Worldwide (CSW). “The SPDC has, it is believed, taken a deliberate decision to discriminate against Chin Christians.”

The report cited a Chin Christian man who had served in the Burma army who faced discrimination.

“I had a colleague who was a Chin who became a Buddhist and he was promoted,” the Christian says in the report. “I was told to change my religion if I wanted to get promotion. I refused to convert.”

The report also quoted a Chin Christian as saying that students from a Christian youth fellowship at a university in Kalaymyo, in Chin state’s Sagaing Division, collected funds among their own community to construct a small church.

“However, in 2008 and again in 2009, ‘extremist Buddhists’ destroyed the church building, and when the students reported the incident to the local authorities, the youth fellowship leaders were arrested, detained and then released with a warning,” he said.

Religious Pretext

Suangtak said successive governments in Burma have promoted Buddhism since General Ne Win took power in 1962, leaving Christians insecure.

“There is a general feeling in Burma that the state represents Buddhism, and most Christians, particularly from conservative sections, cannot trust the regime,” said Suangtak.

Benedict Rogers of CSW said the junta doesn’t differentiate between individual Christians involved in armed struggle and ordinary Christians who have not taken up arms.

“And when it attacks villages in conflict zones, churches and pastors are often among the first to be attacked,” Rogers said.

A Christian worker from Burma’s Mandalay city, however, told Compass that thus far he has heard no reports of any major anti-Christian incidents there. He said he was hoping the junta would try to woo people with peace rather than violence.

“But nothing can be said about the unpredictable junta,” he said, adding that it was difficult to receive or send information in Burma. “Even in cities, the information infrastructure is limited and expensive, phones are tapped and e-mails are monitored. And the press is owned by the state.”

Rogers, deputy chairman of the human rights commission for the U.K.’s Conservative Party, said the Buddhist nationalist regime “distorts and perverts Buddhism for political purposes and is intolerant of non-Burman and non-Buddhist ethnic and religious minorities, including Christians and Muslims.”

Of the 56 million people in Burma, around 89 percent are Buddhist, with only 4 percent Christian.

Given that the junta merely uses religion for political power, it doesn’t target Christians alone, Suangtak said.

“The junta has no respect for any religion, be it Christians or Buddhists, and anyone who opposes its rule is dealt with harshly.”

Burma was ruled by military regimes from 1962 to 1990; at that point the National League for Democracy party, led by Nobel Laureate Daw Aung San Suu Kyi, won the parliamentary election. But the regime seized power again by imprisoning members of parliament after the election.

Rogers, who has co-authored a soon-to-be-published biography of SPDC chairman Senior General Than Shwe, said that while the armed groups are not perfect, they are essentially fighting to defend their people against a “brutal regime” and are “not in any way terrorists.”

“The armed groups have sometimes launched pre-emptive attacks on the military, but they have never attacked non-military targets and have never engaged in indiscriminate acts of violence,” he said. “Even the pre-emptive acts are conducted for defensive, rather than offensive, purposes.”

Rogers added that resistance groups were fighting to defend their people.

“Individual Christians who have joined the armed ethnic groups do so out of a perfectly biblical concept of just war, the right to defend your people from gross injustice.”

Added an FBR source, “In Burma, no one protects except the pro-democracy resistance groups, and all relief inside the country is only possible because of them.”

International Disrepute

The 2009 annual report of the United States Commission on International Religious Freedom states that Burma’s military junta had “one of the world’s worst human rights records.”

“Burma’s Christian populations face forced promotion of Buddhism and other hardships in ethnic minority areas where low-intensity conflict has been waged for decades,” the report states. “In addition, a new law passed in early 2009 essentially bans independent ‘house church’ religious venues, many of which operate because permission to build church buildings is regularly denied.”

The report also pointed out that in January 2009, authorities in Rangoon ordered at least 100 churches to stop holding services and forced them to sign pledges to that effect. Burma, which the ruling junta describes as “The Golden Land” on its official website, has been designated as a Country of Particular Concern by the U.S. Department of State since 1999.

Even after the 2010 election, little is expected to change.

The FBR source said the election was not likely to be free and fair, pointing out that the new constitution the junta adopted after an apparently rigged referendum in 2008 virtually enshrined military power.

“However, having an election is better than not having one at all,” the source said.

Report from Compass Direct News 

CHINA: BOOKSTORE OWNER SENTENCED TO THREE YEARS IN PRISON


Shi Weihan also fined nearly $22,000; ‘illegal business’ printed Bibles for free distribution.

 

LOS ANGELES, June 10

(Compass Direct News) – A Beijing court today found Christian bookstore owner Shi Weihan guilty of “illegal business operation” and sentenced him to three years in prison and a 150,000 yuan (US$21,975) fine.

Sources said Shi’s store operated legally and sold only books for which he had obtained government permission, and that his Holy Spirit Trading Co. printed Bibles and Christian literature without authorization but only for free distribution to local house churches.

The 38-year-old Shi had been released on Jan. 4, 2008 due to insufficient evidence for the same vague charge of “illegal business operation,” but he was arrested again two month later, on March 19, and held virtually incommunicado. Contrary to Chinese law, authorities have denied all but a few visits from his lawyer and family, held him without charges for most of his time in jail, and initially withheld medication for his diabetes.

The court ruling appears to have allowed time that Shi has spent in jail to count toward his sentence, a source said, as his prison term was described as running from Nov. 28, 2007, when he was initially arrested, to Nov. 27, 2010.

Others in a printing company who stood trial with Shi appeared to have received similar sentences. A written judgment is expected within 15 days to allow time for an appeal to be filed, said Ray Sharpe, a friend of Shi.

“Absent an appeal, it is also possible that Shi could be allowed a sort of medical parole, due to his diabetic condition,” Sharpe said. “Hopefully, he could then be allowed to stay in a hospital under a sort of house arrest.”

He said that Shi did not yet know whether he would appeal, adding that the process could take up to a year.

Friends and business acquaintances of Shi have described him as a model citizen of China, saying that he has inspired them to love China by his patriotism and love for his homeland. They said he is known for selfless sacrifice on behalf of poor and disenfranchised rural Christians and minority children.

For much of his incarceration, Shi’s wife Zhang Jing and their two daughters, 12-year-old Shi Jia and 8-year-old Shi En Mei, have not known where he was being held. The family has been under nearly continual surveillance, limiting their ability to make contact with people who could assist them.

Sources said Zhang has worried about her husband’s condition and that she has taken on leadership duties at their church, where Public Security Bureau officials have intimidated the congregation with regular visits. Some members have left the church because of the intimidation, sources said, and Zhang is said to have suffered anxiety and stress that have led to depression.

Their two daughters have been ostracized at school for being the children of a prisoner, sources said.

Shi has lost more than 44 pounds since his second incarceration, they said, dropping to less than 130 pounds. The sources added that he has suffered from blisters because of unsanitary conditions in prison, as well as tinnitus that at times causes his ears to ring so loudly that he cannot sleep.

Chinese officials claim that the Nanjing Amity Printing Co. (Amity Press), the only government-approved Bible publisher, produces enough Bibles to meet the needs of the Chinese church, which various religious freedom organizations dispute. The groups complain that Amity prints a large share of its Bibles for export, and those sold domestically are not available to many Christians.

Report from Compass Direct News

TURKMENISTAN: “I WANT TO KNOW IF I CAN IMPORT RELIGIOUS BOOKS”


Turkmenistan continues to impose strict censorship on religious literature brought into the country, and copies data from personal computers, Forum 18 News Service has been told.

“Which commission decides this?” a Protestant complained, commenting that “they don’t have the right to interfere in my own private life.” Officials always point to an unspecified “commission” which determines what literature is acceptable.

“But who checks the commission which examines the literature?” the Protestant asked. Ethnic Turkmens appear to be more more likely to have material confiscated than ethnic Russians. Frustration has also been expressed to Forum 18 about the impossibility of printing religious literature.

No state official has been willing to explain why religious censorship exists, or who is responsible for it. Shirin Akhmedova, Head of the government’s National Institute for Democracy and Human Rights, claimed to the UN Human Rights Council that freedom of expression exists because of the Constitution. This claim, however, is contradicted by the experience of Turkmenistan’s citizens.

Report from the Christian Telegraph

CHINESE HOUSE CHURCH LEADER PASTOR ‘BIKE’ ARRESTED


A leading Chinese Christian human rights organization says a prominent House Church leader has been re-arrested, and that another Chinese believer will stand trial this week, reports Michael Ireland, chief correspondent, ASSIST News Service.

ChinaAid says in two media releases made available to the Press, that at 6 a.m. on March 21, 2009, more than a dozen police officers arrested and interrogated Pastor “Bike” Zhang Mingxuan, head of the more than 250,000-member Chinese House Church Alliance.

ChinaAid says officers confiscated three cell phones, bank cards and more than 150,000 yuan from one of the accounts, before forcefully searching him and threatening him with death.

In its media release, ChinaAid says: “Three hours later, Beijing authorities turned Pastor Bike over to three police officers from Pastor Bike’s hometown in Nanyang city, Henan province. Police then escorted Pastor Bike back to Nanyang by train, and where he was questioned by local police. Beijing authorities later returned the bank cards and cell phones, but kept the 150,000 yuan.”

The following is Pastor Bike’s statement regarding the arrest and the events leading up to the arrest, made available to Western media:

Complaints by Pastor Bike Zhang: Illegally Arrested and Property Confiscated by Beijing PSB

“I (Pastor Bike Zhang Mingxuan) was informed about the apartment contract dispute case by Chaoyang District Court, Beijing [Pastor Bike and his family were illegally forced from their apartment in October 2008 by the apartment owner who was being pressured from government authorities.]. We (my younger son and friends) arrived at Yanjiao town, Hebei province at 10 p.m. on March 16, 2009.

“At 8:00 a.m. on the 17th, Beijing PSB officer Jianfeng Liang, who arrested me before the Olympic Games, called and wanted to have a friendly visit with me. I knew he was pretending. He insisted that he needed to see me that day. We met in a restaurant in Beiguan, Tongzhou at noon.

“From March 17 to 19, we stayed in Yanjiao town, Hebei. On March 20, I was at Brother Wu’s home to baptize his sister-in-law. Due to the lateness of the hour [when the baptism was over] and the heavy traffic, I decided to stay at Brother Wu’s home that night.

“At 6 a.m. on March 21, more than a dozen policemen and local leaders arrived from Yongle town, Tongzhou district. They pulled up in three cars and stopped by Wu’s house. They arrested and interrogated me, and confiscated my three cell phones and bank cards. They harshly interrogated me, and forced me to their office in Yongle town. The plainclothes officers did not show their IDs. They searched me all over my body. They abused me and threatened to kill me. They forcibly confiscated my three mobile phones and bank cards (a Communication Bank card; a Pacific Bank Card which had 150,000 yuan in deposits). They said they were temporarily seizing it. At 9 a.m., they told me that my friends from my hometown wanted to see me. I met three policemen who came from Nanyang city in Henan Province. They had already arrived at Beijing on the 20th. Beijing authorities handed me over to the three policemen. At that time I responded to them. The PSB of Beijing had already premeditated to attack me through Officer Jianfeng Liang.

“The three policemen and I rode back to Nanyang by train (number k183). We arrived at Nanyang city at 6:00 am. They arranged for me to stay at Wenqun hotel. A PSB officer asked about all my travels over the past days, and told me the reason they wanted to know is because Beijing officers requested the information. I was released at 5:00pm. They returned my cell phones and my blank bank cards. They said the debit card (which had 150,000 Yuan deposits) was being held by the PSB of Beijing.”

Pastor Bike states: “I am not against the law as a citizen.

“The police arrested me and detained my property illegally. They deprived me of my human rights as a citizen, freedom and right of residence. They arrested me several times during the Olympic Games. They beat my son. After the Olympic Games, they promised to allow my family to live in Beijing, but they lied. This is arbitrary deprivation of civil rights. I implore people of conscience in the international community, as well as Christians worldwide to pray for the Chinese public security authorities in Beijing, that they would realize their offense. Please pray that our Lord Jesus Christ would change their hearts, that they would stop persecuting house churches. Pray for the revival of China in true faith, and for the reality of harmonious policy by the Central Government.”

Meanwhile, in another high-profile case, ChinaAid says that Shi Weihan, who has been in prison since March 19, 2008 for printing and distributing Christian books and Bibles without government permission, will stand trial at the People’s Court of Haidan District, Beijing on April 9 at 9 a.m. local time.

In its media release on this case, ChinaAid says: “Over the past months, several scheduled court appearances have been postponed. Shi Weihan’s official charge is for ‘illegal business practices,’ however, a judge has held, at least twice, that there is not sufficient evidence to convict him on this charge. Nevertheless, police have continued to hold Shi Weihan in order collect additional evidence to gain a conviction.”

ChinaAid reports that sources report that Shi Weihan did sign a confession stating that he had printed books and Bibles without government permission, but that they had been given away as gifts, not sold. Therefore, his actions did not constitute “illegal business practices.”

According to ChinaAid sources, in the confession Shi Weihan stated that his reason for printing the books was that many churches and Christians lacked Bibles and Christian literature, which made them vulnerable to cults. Sources say Shi Weihan also stated that he had observed the change that occurred wherever the books and Bibles were available; how people’s lives were transformed and that they became better citizens. Because of that, Shi Weihan maintained that what he had done was with honorable motives and was also good for China.

ChinaAid sources reported, “Shi’s character and good influence on the other prisoners has apparently been noted by prison officials, and he reportedly has had some favor in that setting, although the conditions have been difficult and his health has suffered. … pray that … the judge recognizes what the officials in the prison have [recognized] — that Shi Weihan is a man of great mercy and compassion, that he is a blessing to China ….”

Currently, Shi Weihan’s wife is bearing much of the burden for the family. According to friends, her main concern is caring for their two daughters and continuing the house church work. Authorities continue to pressure the family. ChinaAid calls all Christians and concerned individuals in the international community to speak out on behalf of Shi Weihan and request his immediate release.

Report from the Christian Telegraph

BURMA: REPORT DOCUMENTS ABUSE OF CHIN CHRISTIANS


Human Rights Watch shows systematic, officially sanctioned religious freedom violations.

DUBLIN, February 20 (Compass Direct News) – A Human Rights Watch (HRW) report released in January details serious and ongoing abuses against the Chin people, a minority group in Burma’s northwest who claim to be 90 percent Christian.

HRW’s research echoes a 2004 report by the Chin Human Rights Organization (CHRO) that described targeted abuse of Christians in Chin state, with the Burmese army subjecting pastors and church members to forced labor, arbitrary arrest and detention, torture and sometimes death.

While religious oppression is extreme in Chin state, restrictions also apply elsewhere in Burma, also known as Myanmar. Most recently, officials in January forced the closure of more than 100 churches in Rangoon and ordered owners of apartment buildings and conference facilities not to rent their properties to religious groups.

Based on interviews with Chin refugees in India and Malaysia between 2003 and 2008, HRW’s report describes how an increasing number of army battalions stationed in Chin state since 1988 have inflicted forced labor and arbitrary fines on the Chin people, as well as bullied them away from Christianity toward Buddhism.

“When we meet the army, we are shaking,” a Chin refugee pastor told HRW. “Whatever they want is law.”

The HRW report, entitled “We Are Like Forgotten People,” notes that soldiers frequently forced Christians to donate finances and labor to pagoda construction projects in areas where there were few or no Buddhist residents.

They also occasionally forced Christians to worship in Buddhist pagodas. One Chin pastor described how Burmese soldiers brought him to a pagoda and prodded him with their guns, commanding him to pray as a Buddhist.

“They said that this is a Buddhist country and that I should not practice Christianity,” he told HRW.

The military forced village headmen to present “volunteers” for military training or army construction projects and secured “donations” such as food or finance for army battalions. Soldiers severely beat or detained headmen if a village failed to meet quotas, seizing livestock or property in retribution.

Pastors often faced similar treatment, particularly if church members were accused – often without proof – of involvement with the Chin National Front insurgency group. HRW listed arrest, detention and torture as methods used against those accused of being part of the Chin National Front, based across the border in northeast India. Torture included beatings with sticks or guns and electric shocks via metal clips attached to high-voltage batteries. Such measures were also used to crush dissent against army policies such as failure to pay extortionate and arbitrary fees.

The military government promoted Buddhism over all other religions in Chin state through threats and inducements, destroying churches and other religious symbols, and restricting the printing and importing of Bibles and other Christian literature, HRW reported.

A judge in 1999 sentenced one man from Falam township to three years in prison for bringing Chin language Bibles into Burma, contravening Burma’s 1965 Censor Law. Authorities also burned 16,000 copies of Chin and other ethnic language Bibles brought into neighboring Sagaing Division, another Chin majority area, in 2000.

 

‘Campaign of Ethnocide’

CHRO’s 2004 report, “Religious Persecution: A Campaign of Ethnocide Against Chin Christians in Burma,” explained that Christianity had become inseparable from Chin culture following the arrival of American Baptist missionaries in 1899.

The report, based on information gathered in Chin state, gave numerous examples of the destruction of churches and crosses, the burning of Bibles and restrictions on other religious publications and activities between 1993 and 2004 – including the extrajudicial killings of four Chin Christians in 1993.

Burmese authorities routinely denied permission for the construction of new churches and required permits for large church gatherings, although lengthy bureaucratic processes meant that most of these gatherings were eventually postponed or cancelled.

A September 2008 U.S. Department of State report confirmed that Chin state authorities have not granted permission to build a new church since 2003.

As recently as last November, a government official ordered residents of Tayawaddy village in neighboring Sagaing Division to destroy the foundations of a new church building erected by members of a Chin Christian student fellowship. A report in the Chinland Guardian claimed villagers were subsequently ordered not to rent their homes to Chin students or the homes would be destroyed.

 

Enticement to Convert

CHRO’s report gave clear evidence of government support for coerced conversions. For example, the government offered free secular education to several children from impoverished families, only to place them as novice monks in Buddhist monasteries in Rangoon.

The Ministry of Religious Affairs has also sent Buddhist monks to villages and towns throughout Chin state under the Hill Regions Buddhist Mission program, one of several Buddhist missionary initiatives highlighted on the ministry’s website. Chin residents who spoke to CHRO likened these monks to “military intelligence” operatives who worked in partnership with Burmese soldiers to control the Chin people.

According to one Chin resident, “Anyone who doesn’t abide by the monks’ orders is reported to the State Peace and Development Council [Burmese government officials] and punished by the army.”

Another Chin man from Matupi township attended a government-sponsored “social welfare” training session only to discover that it was a propaganda session led by a Buddhist monk.

“In the training we were taught the 17 facts of how to attack and disfigure Christians,” he explained.

The 17-point method encouraged converts to criticize Christian ways of life as corrupting culture in Burma, to point out weaknesses in Christianity, and to attack Christians by both violent and non-violent means.

“We were promised that 1,200 kyats per month [US$190] would be provided to those families who became Buddhist,” the training participant added. That amount of money is significant in the Burmese economy.

The instructor also ensured participants that they would be exempt from “portering” and other forms of forced labor and compulsory “donations” if they converted, and that the government would provide education for their children.

“I became a Buddhist because of such privileges rather than because I think Buddhism is better than Christianity,” the Chin participant told CHRO.

 

Religious Policy Elsewhere

According to CHRO, both the Burmese army and the monks are pursuing an unofficial government policy summed up in three words; “Amyo, Batha, Thathana,” which translates as “One race, one language, one religion” – or Burman, Burmese and Buddhist.

This policy was exemplified by the forced closure in January of more than 100 churches in the capital, Rangoon.

Officials on Jan. 5 invited pastors from more than 100 Rangoon churches to a meeting where they were ordered to sign documents pledging to cease operation of their churches or face imprisonment. About 50 pastors attended, according to Burmese news agency Mizzima.

A CHRO spokesman told Compass yesterday that a significant number of these churches were ethnic rather than majority Burman churches.

In mid-January, officials ordered several other major Rangoon churches to close, including Wather Hope Church, Emmanuel Church and an Assemblies of God Church. (See Compass Direct News, “Burma Clamps Down on Christians,” Jan. 21.)

Officials from the Ministry of Religious Affairs in January summoned the owners of buildings where churches met and ordered them not to rent their properties to religious groups, according to another local online news source, the Democratic Voice of Burma.

In the late 1990s, Burma stopped issuing permits for land purchase or the construction of new churches in Rangoon and elsewhere, leading many Burmese Christians to conduct services in rented apartments or office buildings.

The church closure orders may simply be an extension of Burma’s existing religious policies, which elevate Buddhism in an effort to solidify national identity. The country’s population is 82 percent Buddhist, 9 percent Christian and 4 percent Muslim, with traditional ethnic, Chinese and Hindu religions accounting for the rest.

In a 2007 report describing religious persecution throughout Burma, including Chin state, Christian Solidarity Worldwide cited the “Program to Destroy the Christian Religion in Burma,” a 17-point document that had circulated widely in Rangoon. Allegedly authorized by the Ministry of Religious Affairs, the program’s first point declared that, “There shall be no home where the Christian religion is practiced.”

The Ministry of Religious Affairs subsequently pressured religious organizations to publicly condemn CSW’s report and deny all claims of religious discrimination in Burma.  

Report from Compass Direct News

CHINA: OFFICIALS REACH OUT TO HOUSE CHURCHES; RAIDS, ARRESTS CONTINUE


TSPM offers Bibles and “assistance,” but rights groups say efforts fall short.

DUBLIN, December 9 (Compass Direct News) – In recent months Chinese officials have attempted to build bridges with the Protestant house church movement even as police raided more unregistered congregations, arrested Christian leaders and forced at least 400 college students to swear they would stop attending such worship services.

With rights groups saying more effort is needed to address rights abuses and secure full religious freedom for Chinese Christians, two research institutes – one from the government – organized an unprecedented symposium on Nov. 21-22 that concluded with an agreement for house church leaders to begin a dialogue with government officials.

A delegation of six house church leaders from Beijing, Henan and Wenzhou provinces attended the seminar, entitled, “Christianity and Social Harmony: A Seminar on the Issue of Chinese House Churches,” along with scholars and experts from universities and independent research facilities. Members of the Minorities Development Research Institute, a branch of the China State Council’s Research and Development Centre, and the Beijing Pacific Solutions Social Science Research Institute co-hosted it.

In a report summarizing the forum, Beijing house church representative Liu Tong Su said that China’s religious institutions and regulations were clearly outdated and inadequate to meet the needs of the church.

At the conclusion of the meeting, house church delegates agreed to dialogue with the government, Liu said, though he insisted, “Only God can control the spirituality of faith. No worldly authorities have the right to control a man’s spirit.”

The government has been entrusted by God with the authority to maintain external public order, Liu added.

“If the government can limit its governing territory to areas of maintaining public order in external conduct, then according to the teachings of the Bible, the house church will definitely obey those in authority within the boundary that God has set,” he said.

Experts presented reports on the rapid development of house church networks, including the number of Christians, geographical distribution, cultural and ethnic make-up and connection with foreign Christians, according to the Gospel Herald.

A month earlier, the chairman of the Three-Self Patriotic Movement (TSPM) – responsible along with the China Christian Council (CCC) for overseeing China’s Protestant churches – told a gathering of 200 Hong Kong church leaders of his desire to assist Chinese house churches and provide them with Bibles, according to Ecumenical News International (ENI).

At the Oct. 22 conference entitled, “Chinese Church – New Leaders, New Challenges,” TSPM Chairman Fu Xianwei declared, “For those house churches without registration, we will try our best to be with them, to recognize them and to help them, so long as they have an orthodox faith, don’t stray from the truth and don’t follow heretics.”

Fu and 11 other members of the newly-elected leadership team of the CCC/TSPM also said they were willing to provide house churches with Bibles, ENI reported.

Bible distribution is largely the responsibility of Amity Press, China’s only official Bible printing company, which recently announced its intention to place more Bibles in the hands of rural Christians. Daniel Willis, CEO of the Bible Society in New South Wales (NSW), Australia, launched an appeal on Nov. 12 to support Amity in this goal.

Speaking at the launch, Willis asserted, “Smuggling Bibles into China places Chinese Christians at risk, and now with the new Amity Press operational in Nanjing, smuggling is a waste of resources.”

Amity opened a new multimillion dollar printing facility in May with a capacity to print 12 million Bibles per year. Most of those Bibles are printed in foreign languages for export outside China.

“China is experiencing a great freedom of worship,” Willis added. “With this wonderful change the church is spreading rapidly … Each Chinese Christian would like to experience the joy … that owning their own Bible brings – but unfortunately for many, obtaining a Bible is difficult and often out of their reach financially.”

The China Aid Association (CAA) issued a statement on Nov. 20 that Amity did not produce enough Bibles to meet the vast needs of the church in China or to replace lost or worn copies. It also pointed out that distribution was still strictly limited to government-approved channels.

Earlier this year, the Rev. Dr. Chow Lien-Hwa, vice-chairman of the board of Amity Press, stated in an interview with the NSW Bible Society that Amity was printing 3 million Bibles per year for mainland China. Chow also outlined a plan to allow Bible distribution through a chain of government bookshops and claimed that house church Christians could buy Bibles from TSPM churches without having to provide personal identity information.

Pastors from both house churches and official TSPM congregations have reported to Compass a shortage of Bibles and other Christian materials in Beijing, the northwest, the northeast, and the southwest. Church growth in tribal areas also has created an urgent need for Bibles in minority languages.

 

Raids, Arrests Continue

Rights groups pointed to recent raids and arrests, however, as confirmation that Chinese authorities still restrict freedom of worship for local house church Christians.

Police raided a house church gathering in Tai Kang county, Henan province on Dec. 3 and arrested all 50 Christians, CAA reported on Thursday (Dec. 4). Public Security Bureau officers also raided another gathering of 50 house church believers in Xiji town, Zaozhuang city, Shandong province on Dec. 2, arresting 20 Christian leaders and demanding a fine of 2,500 yuan (US$365) per person to secure their release.

CAA also confirmed that police carried out multiple raids on house church gatherings in Beijing and in areas near college campuses in Hangzhou, Zhejiang province, from late September to early November, detaining leaders of the Local Church house church network. Four leaders in Zhejiang were sentenced to labor camp for 12 to 18 months.

Officers also arrested at least 400 Christian college students. After intense questioning, police forced each student to write a statement of repentance agreeing to forsake such gatherings.

Commenting on reports of persecution in China, Chow of Amity Press claimed victims were not true Chinese citizens, but Chinese with foreign citizenship who had entered China to carry out illegal activities.

“When we go to another country we must be law-abiding citizens of that country,” Chow insisted. “The law, whether you like it or not, says you can only preach in the churches, you cannot go on the street.”

Some house churches are actively seeking registration with authorities to avoid arrests and inconveniences, ENI reported in October. Such groups, however, prefer to register outside the CCC/TSPM structure, disagreeing that different Protestant beliefs can be reconciled under the TSPM as a self-described “post-denominational” umbrella organization.

House church members also object to the TSPM’s interference in congregational practices, according toe the U.S. State Department’s International Religious Freedom Report 2008. The report notes that many unregistered evangelical Protestant groups refuse to register with TSPM due to theological differences, fear of adverse consequences if they reveal names and addresses of church leaders or members, or fear that it will control sermon content.

 

Released from Prison

Responding to international pressure, officials on Dec. 2 released house church pastor Zhu Baoguo of Henan province, citing medical reasons. Authorities had raided a house church gathering on Oct. 12, arresting Zhu and four other leaders, before sentencing Zhu on Oct. 30 to one year in labor camp, CAA reported.

Officials also released house church pastor Wang Weiliang from prison on Nov. 25 for medical reasons, according to CAA. Authorities sentenced Wang to three years in prison in December 2006 for protesting the July 2006 destruction of Dangshanwan Christian church in Xiaoshan, Zhejiang province. Seven other believers were arrested at the time; authorities have released all but one, who remains in detention in Hangzhou.

 

A Breakthrough for China’s House Churches?

At last month’s symposium on Chinese house churches, officials from government research organs, scholars from government think-tanks and universities, independent researchers and an unprecedented delegation of six house church leaders from Beijing, Henan and Wenzhou attended.

At the groundbreaking conference, sponsored by the Minorities Development Research Institute of the China State Council’s Research and Development Center and the Beijing Pacific Solutions Social Science Research Institute and entitled, “Christianity and Social Harmony: A Seminar on the Issue of the Chinese House Churches,” participants discussed every aspect of the house church movement in China.

Statistics were a key issue, with most agreeing that the number of house church members was vast and rapidly increasing. Estimates ranged from 50 million to 100 million members of Protestant house churches, as compared with approximately 20 million members of registered Protestant churches.

Delegates were surprisingly bold in their discussion and criticism of China’s religious policy, and several put forward practical plans for the abolition of institutions such as the State Administration for Religious Affairs (formerly the Religious Affairs Bureau) and the Protestant Three-Self Patriotic Movement.

They also called for serious and ongoing discussions between the government and house churches, and Christian leaders called for the lifting of a ban on house churches and a review of restrictions on church registration and appointment of pastors.

Many participants agreed that the democratic management of house churches in accordance with the rule of law was a logical step to bring religious policies into line with China’s open-door economic policies.

While certain sectors of leadership may welcome these suggestions, others entrenched in the atheist system of the Communist Party were expected to balk at such reforms.  

Report from Compass Direct News