WE are flying through turbulent skies. Our air quality is awful because of open burning in Indonesia. Part of the problem stems from greedy actions by some Malaysia- and Singapore-owned giant oil palm companies.
So, as our collective anger rises against our largest neighbour for permitting this eco-tragedy, yet again, now's a perfect time to remember (or to learn for the first time) that the 18th century Scottish philosopher, economist and historian David Hume (1711-1776) took a stand against the dominant economic doctrine in Europe from the 1500s to the late 1700s.
That damaging doctrine was called mercantilism, which selfishly and incorrectly considered international trade a zero-sum game.
In Hume's 1758 essay Of the Jealousy of Trade (a summary of which is found here: www.longfinance.net/news/pamphleteers/the-jealousy-of-trade/), he explained that the mercantilist's view of any neighbouring country's commercial success being racked up at the expense of your own country's wellbeing is wrong.
By the way, does that argument remind you of the present-day rantings of Donald Trump against China, Canada and Mexico succeeding to the detriment of the United States?
Hume, in contrast, contended a nation would, on balance, benefit when its surrounding countries prosper because they could then become better trading partners and customers.
Subsequent to Hume's genius-level work almost 270 years ago, his friend and fellow Scotsman Adam Smith, the author of the 1776 seminal economics book The Wealth of Nations, pointed out the flawed mercantilist doctrine led the rulers of Europe's nation states to believe they could grow richer only by impoverishing their trading partners.
This ludicrous zero-sum view of trade is patently false, yet it gave rise to the "beggar thy neighbour" economic philosophy.
The fundamental flaw of mercantilism is that it confuses cash or money with genuine economic wealth. Both Hume and Smith correctly argued genuine wealth lies in the goods and services available to a country's residents, and the productive capacity of the country's businesses.
Sadly, bad ideas sometimes take a long time to fade into oblivion.
PROSPER THY NEIGHBOUR
More than 220 years after The Wealth of Nations was published, specifically in 1997, the year that saw the start of the Asian Financial Crisis (1997-1998), Malaysia's fourth prime minister Dr Mahathir Mohamad flipped the evil phrase "beggar thy neighbour" on its head to commendable effect.
Dr Mahathir stated, almost 30 years ago, that "prosper thy neighbour" would be a slogan that encapsulates Malaysia's view of how Asean should function. Within a year, as the Asian Financial Crisis deepened, the civilised goal of prospering Malaysia's neighbours within that successful economic grouping was a clear-sighted Malaysia-driven foreign policy doctrine in its interactions with other Asean members.
Asean expanded its membership roll to 11 countries with the addition of Timor-Leste a year ago, on Oct 26, at the 47th Asean Summit in Kuala Lumpur, under Malaysia's then chairmanship.
Timor-Leste's inclusion was the first expansion of Asean's membership since 1999's inclusion of Cambodia.
We have repeatedly seen that the building of figurative — and sometimes even literal — bridges is a better way to promote peace, harmony, amity and prosperity than putting up walls.
And speaking of administrations adept at raising walls, be they figurative or literal ones, the tedious fallout from the US and Israel's attacks on Iran that began on Feb 28 continues to gather destructive momentum.
REASONS TO FRET
A few days before I finished writing this column, Houthi attacks on Riyadh in Saudi Arabia caused multiple fatalities and injured more than 300 people. Those of us situated far from such insane violence probably felt relatively safe.
Yet the bad air filling our lungs and causing those of us with respiratory illnesses to suffer more than usual violates our fundamental human right to clean and breathable air. I suspect spikes in lung cancer over the coming decades will be tied to this eco-crisis.
So, with so many bad things assailing us, who will be held responsible? Sigh! I am pessimistic enough to assume no one.
There are, of course, other reasons to fret:
The global economic impact of stirring the hornet's nest that is Iran means that the high price of fuel is now embedded into the fabric of our interconnected global economy. I have never made a secret of my abysmal opinion of the current US leadership.
In addition to destabilising the Middle East, round after round of Trump's import tariffs are adding unwanted friction to the engine of global trade.
So, while most of us feel helpless as we are swept along by chaotic currents of change driven by local corporate greed, American hubris and violence that is spreading like a metastasising cancer across pockets of the world, what should we do?
1. Heed global developments;
2. Remain optimistic about being alive in a safe corner of Earth;
3. Pray for the current crop of sub-par world leaders to be replaced by wiser people;
4. Tighten our belts to reduce expenses to save more money;
5. Channel a slice of those savings into well-chosen investments;
6. Grow personal wealth over decades; and, finally
7. Give or bequeath some of that compounded wealth to try and create a better world tomorrow.
© 2026 Rajen Devadason
Rajen Devadason, CFP, is a Securities Commission-licensed Financial Planner, professional speaker and author. Read his free articles at www.FreeCoolArticles.com; connect with him on LinkedIn at www.linkedin.com/in/rajendevadason, or via rajen@RajenDevadason.com. You may also follow him on X @Rajen Devadason and on YouTube (Rajen Devadason).
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