tax
A matter of ignorance

The Central Board of Revenue needs to reconsider its statistics regarding tax payers in the country which could be a step forward towards a better economy

By Huzaima Bukhari & 
Dr Ikramul Haq

In the wake of approval of the ten-year tax plan by General Musharraf on February 22, 2007 during his visit to Central Board of Revenue (CBR), M. Abdullah Yousaf the Chairman CBR has promised the nation that in the next fiscal year the revenue target will be Rs. one trillion. 

Newswatch
Independence of the judiciary
 
By Kaleem Omar
Unlike US foreign policy, which has often come in for much criticism ever since the United States became a military superpower and started trying to impose its will on the rest of the world, the US Constitution contains many highly admirable features that other countries would do well to incorporate into their own constitutions.

Supply side problems
There is a lot that needs to be done before everyone in Pakistan has access to clean potable water
 
By Aleyha Ahmed
One of the most basic human rights, fundamental to our survival, is the right to clean and potable water. What is then most alarming is that the implementation of this right should be so neglected and disregarded in our country on such a vast scale. It is widely known and also officially recognised by the World Bank that Pakistan is 'one of the most water-stressed countries in the world'. 

trade
Round and around

Over the years, NGOs have become an integral part of the WTO process. This in some ways has helped to make world trade talks more inclusive than they initially were
 
By Pradeep S Mehta
New Delhi recently witnessed an unusual international seminar on 'Saving the Doha Round' organised by the government of India in association with leading non-governmental organisations from both rich and poor countries. These included Oxfam International from the United Kingdom, Carnegie

governance
The state of misrule

Pakistan's recent track record in maintaining the rule of the law is hopeless. The situation can be reversed only if the government focuses on its core function of providing people with security and justice
 
By Dr Khalil Ahmad
"The clearest way to show what the rule of law means to us in everyday life is to recall what has happened when there is no rule of law." 
[Dwight David Eisenhower, 1890-1969]

Regional rhapsody
The longest race to the White House

By Amitabh Pal

The campaign for the November 2008 US presidential elections is going to be perhaps the longest in world history, since it has already begun. Are there any lessons in this strange, drawn-out process for South Asia? 

firstperson
Bruce Riedel
The Afghan solution

Troops from the Muslim countries from the Mediterranean would be one of the best ways to help move forward to stabilise the situation and help the people of Afghanistan.
 
By Raza Khan
Bruce Riedel is a known American scholar, working as a senior fellow at am American think-tank called Saban Centre for Middle East Policy. Before that he has worked as America's Special Advisor for Noth Atlantic Treaty Organization (Nato) in Brussels, Belgium (2003-2006).

End of the world as we know it
Whenever states have gone to war, humankind has suffered
 
By Muhammad Ahsan Yatu
A state regarding internal affairs is either wise or unwise, nothing more, nothing less. Wisdom requires the state to be considerate most of the time and occasionally tough.

 



tax
A matter of ignorance
The Central Board of Revenue needs to reconsider its statistics regarding tax payers in the country which could be a step forward towards a better economy
 

In the wake of approval of the ten-year tax plan by General Musharraf on February 22, 2007 during his visit to Central Board of Revenue (CBR), M. Abdullah Yousaf the Chairman CBR has promised the nation that in the next fiscal year the revenue target will be Rs. one trillion. This will be an increase of Rs.150 billion in the present years target of Rs. 850 billion. It has been further claimed that tax-to-GDP ratio of 15% will be achieved in the next few years. These targets are easily achievable. In fact the real potential of revenue collection in Pakistan is much higher. Our revenue collection can be double than what has been set by the CBR. For tapping our actual potential, there is an urgent need to give taxing rights to provinces in respect of goods and services within their territorial jurisdictions, bring undocumented economy in the tax net and distribute the incidence of various taxes judiciously amongst all the segments of society.   

The Chairman CBR, while briefing the Senate Standing Committee on Finance the other day, on the performance of his organisation during the financial year 2006-07, admitted that only 1.6 million people filed their tax returns up to December 2006. This is a dismally low figure for a country having population of over 165 million . The Committee was informed that CBR collected Rs 513.6 billion in the first eight months (July-February) of the current financial year as compared to Rs. 419.3 billion in the same period last year, registering a growth of 22.5% [this collection is also Rs.19 billion more than the target set for this period]. The CBR for this performance received kudos from the Committee. However, the main point missed by the Senate Standing Committee was to ascertain the composition of total collection. CBR is collecting Rs. 42 as taxes for an imported item having landed cost of Rs. 100, hindering the pace of industrial growth by making inputs costlier.

A close examination of CBR's performance will show that it has shifted the burden of collection of taxes to withholding agents, who are performing the essential State function of the tax collector, without any reward, what to talk of getting reimbursement of expenses incurred for performing this onerous task. It is an undeniable fact that about 75% of taxes are being collected through withholding tax mechanism, the burden of which is enormous on the people of Pakistan and collecting agents have to meet heavy compliance cost. This increases their cost of doing business.

It is sad to note that the government has enormously widened the scope of collection/deduction of taxes through banks by making a number of amendments in tax laws. The corporate houses in general and banks in particular have virtually been converted into 'CBR Collection Houses'. The withholding agents incur substantial cost on complying with tax collection provisions as withholding agents on behalf of Government (man-hours, infra-structure use and stationary, just to mention a few). There is no provision in tax laws of any collection charges for rendering these services, making it 'forced labour', which is unlawful under Article 11(3) of the Constitution..

On the contrary, the Federal Government retains 2% as collection charges from all the Provincial Governments on General Sales Tax on Services, which it collects on their behalf [see para 9.6 at page 42 of Explanatory Memorandum on Federal Receipts 2006-2007, published by Government of Pakistan, Finance Division, Islamabad as part of Budget documents presented on June 5, 2006]. If Federal Government is justified to retain 2% as collection charges from Provincial Governments on General Sales Tax on Services, which it collects on their behalf, how can it deny the same to banks as withholding agents who collect billions of rupees on behalf of CBR? In all the civilized societies, withholding agents are allowed to retain a fixed amount (it is as high as 10% in EEC) as collection charges for performing duties on behalf of the State. In Pakistan, on the one hand this right of recovering cost is denied to all the withholding agents and they are compelled to do 'forced labour', and on the other, the Federal Government finds it fully justified to charge the same when matters comes up with provinces. Needless to say, it is a case of discrimination on the part of Federal Government.

 According to the latest figures compiled by the State Bank of Pakistan, the total number of account holders of all Pakistani and foreign banks operating here, who paid income tax under section 151 of the Income Tax Ordinance, 2001, for the period ending 31 December 2006, was 18 million. According to National Saving Directorate, the total number of persons who paid tax at source on different schemes during the period 1 July 2005 to 30 June 2006 was 14 million.  It is worthwhile to note that in their case tax deducted at source is full and final discharge under section 169 of the Income Tax Ordinance, 2001. They are merely required to file a simple statement u/s 115(4) of the Income Tax Ordinance, 2001 i.e. if they do not have any other source of income. Had the CBR allotted all of them National Tax Numbers (NTNs), it could proudly be said that 18 million are registered taxpayers in Pakistan.

This huge population of taxpayers has been completely ignored by the CBR by saying that only 1.6 million filed tax returns. Perhaps the greatest achievement of CBR is not to count the people who are paying taxes through the mechanism of deduction of tax at source and that too not in thousands but in millions. The same is true for eight million commercial/industrial electricity users who are regularly paying income tax along with their utility bills, but failed to qualify in the counting criterion of the Chairman CBR [the total number of industrial/commercial electricity consumers in Pakistan as on March 2006 was over 8 million as per official Economic Survey 2005-2006. 

It is a matter of great pity that the apex tax collection authority, CBR, itself does not know how many people in Pakistan are paying income tax. The people of this country are accused of not paying income tax; whereas the reality is that even a petty shopkeeper in a village (whose total income is much below the minimum taxable limit of Rs. 150,000) is paying as high a tax as Rs. 720 per annum along with electricity bills as a commercial user. The total population of Pakistan, according to latest figures released officially, is 165 million. The percentage of rural population is about 67%. Out of total population, 45% are below the age of 15 years (being minor the majority of them cannot be taxpayers). The total labour force stands at 40 million, out of which 26 million comprise rural labour force. Reading all these facts together, the income tax paying population of Pakistan cannot be more than 20 million, out of which 18 million paid income tax u/s 151 of the Income Tax Ordinance, 2001 during 2005-2006!  Yet the CBR is engaged in a vicious propaganda that people of Pakistan are not paying taxes and our income tax base is narrow! The CBR in its Year Book for 2005-2006 admitted that this class of taxpayers alone paid over Rs. 8 billion as income tax. CBR on the one hand is fleecing people through presumptive and withholding taxes (irrespective of the fact whether they have taxable income or not) and on the other has the audacity not to include them in the list of taxpayers. This is adding insult to injury.

Huge claims are being made about documentation of economy and preparation of taxpayers roll whereas the very basic counting methodology and conceptual framework of the CBR about the number of taxpayers in the country is faulty.

It is painful to note that present structure of presumptive taxation has complicated the poverty problem of Pakistan. According to a study of Asian Development Bank, the tax system of Pakistan, which was progressive till 1990, was converted into regressive regime in 1991 with the introduction of provisions like section 80B, 80C, 80CC and 80D in the repealed Income Tax Orinance, 1979 and VAT-type tax in the Sales Tax Act, 1990. The various presumptive taxes have not been retained since 1991, but their scope has been enlarged manifold.  The result is that during the fifteen years period (1991-2006), tax burden on the poorest households is estimated to have increased by 10.4%, while it declined by 15.9% for the richest households. This study of ADB is an eye-opener for the target-oriented CBR's stalwarts, who are completely oblivious of impact of their onerous tax policies. In their frenzy of showing higher figures they have imposed extra burden of taxes on the poor of Pakistan, instead of taxing the rich and mighty.

 The banks, WAPDA and the PTCL are fully computerized and can compute the total number of people on whose behalf these organisations collect and deposit income tax in the government treasury. Their combined figure of such persons is nearly 18 million and yet CBR is claiming remarkable achievement by mentioning their number at 1.6 million! It is a great tragedy of errors and perhaps one of the ugliest jokes with the people of this country. The CBR owes an open apology to the people of Pakistan for criminal negligence in reporting incorrect figures regarding income taxpayers in Pakistan. The CBR's own efforts (sic) in tax collection are only to the extent of 20-25% of total collection. Taxpayers and withholding agents are victims of the high handedness of government's unjust tax policies. It is high time that the CBR should put its own house in order and stop malicious propaganda against the people in general and business community in particular.

Pakistan (at federal and provincial level) can generate at least Rs. 2.5 trillion as tax revenue in the fiscal year 2007-08 provided that :

        Tax-base is shifted from presumptive to real income.

          Provinces are given exclusive right to levy taxes on goods and           services within their respective physical boundaries.

          Agricultural income tax on actual profit basis (presently it is an      eye-wash levied on acreage basis) is collected from                             rich absentee landlords sitting in the Parliament.

          Section 111(4) of the Income Tax Ordinance, 2001 giving amnesty           to tax evaders should be withdrawn.

        Rate of sales tax should be reduced to 5% and levied across the           board.

          Provinces should restore tax on gain of immovable property.

        Profits generated through speculative transactions in shares at           stock exchanges should be taxed and exemption given                             under the garb of capital gain should be withdrawn.

If political will is shown, there is no reason why we cannot achieve double the target of what the Chairman CBR is promising. If mighty sections of society start paying their taxes and mammoth black economy is brought into tax net, our tax-to-GDP ratio can jump to 25% in 2007-08 for which CBR want us to wait for another ten years

The writers (lahorelaw@hotmail.com) are tax advisers and members of visiting faculty of Lahore University of Management Sciences (LUMS)

 


Newswatch
Independence of the judiciary

Unlike US foreign policy, which has often come in for much criticism ever since the United States became a military superpower and started trying to impose its will on the rest of the world, the US Constitution contains many highly admirable features that other countries would do well to incorporate into their own constitutions.

The independence of the judiciary is one of the most admirable of such features and central to the concept of democracy.

As the American writers Larry Berman and Bruce Allen Murphy observe in their illuminating book 'Approaching Democracy', the extent of a court's power depends on its independence, that is, to make decisions free of outside influences.

The framers of the US Constitution were aware of this and placed in the Constitution several provisions to help keep the Supreme Court free of pressures from the people's Congress and the President of the United States of America.

First, justices are appointed not elected, thus, they are not beholden to voters.

Second, the power to appoint justices is shared by the president and the US Senate, with the power to nominate justices vesting in the president and the power to confirm or reject such nominations vesting in the Senate: thus ensuring that the Court is not beholden to any one person or political party.

Third, the justices are guaranteed their position for life; as long as they exhibit 'good behaviour'. Even in cases of bad behaviour, justices can be impeached only for "high crimes and misdemeanours". Thus, the Court cannot be manipulated by the political branches, that is, the president and Congress.

Fourth, justices can be removed only by impeachment, through a process involving both houses of Congress -- the Senate and the House of Representatives. They cannot be removed by executive fiat or by their peers in the Supreme Court.

Finally, the US Constitution specifies that justices "salaries shall not be diminished during their Continuance in Office," meaning that Congress cannot lower the Court's salary to punish it for its rulings.

But how much independence does the US Supreme Court really possess? "A great deal," say Berman and Murphy, "although the Court is not completely shielded from outside influences."

As Berman and Murphy note, US presidents can change the direction of the Court with new appointments. Congress can attack the judiciary's independence through some or all of the following measures: abolishing all the lower federal courts, refusing to raise salaries, using its power to remove certain classes of cases from the appellate docket (leaving the lower court rulings in force), changing the number of justices on the nine-member Supreme Court, passing a law to reverse a Court decision, and attacking the Court in speeches.

Only in a few rare instances. however, has Congress attempted to use any of these methods to threaten the Supreme Court's independence. One effort came in 1957, when Congress. displeased with judicial limits placed on its investigative powers, considered the Jenner-Butler Bill, which would have removed certain classes of cases from the Supreme Court docket.

Only the efforts of the powerful Senate majority leader Lyndon Johnson (later Vice-President of the United States in John F Kennedy's administration and president after JFK's assassination on November 22, 1963) prevented passage of the Jenner-Butler Bill.

As Berman and Murphy observe, "At times, mere threats to judicial independence can have an impact on Court decisions."

They note that US President Franklin D Roosevelt's failed plan to pack the Supreme Court with his nominees still resulted in a change of direction among the justices in favour of his "New Deal" programme. Although the Jenner-Butler Bill failed, Supreme Court Justices Felix Frankfurter (a Roosevelt appointee who served on the Court from 1939 to 1962) and John Marshall Harlan (who was appointed by President Dwight D Eisenhower and served on the Court from 1955 to 1971) changed their positions and began to support Congress's power to investigate.

In the end, say Berman and Murphy, the US Supreme Court's "greatest protection from political threats to its independence comes from the people, as long as justices are careful not to get too far ahead of public opinion in their decisions."

Winston Churchill once remarked, "The pressure of public opinion is like the pressure of the atmosphere. You can't feel it, but it's there -- 14 pounds to the square inch." That was his way of saying that public opinion cannot be ignored.

"An independent judiciary that secures the rights and liberties of citizens is a cherished part of the American political landscape in which the rule of law is paramount. It is also one of the measures of true democracy," Berman and Murphy observe.

In recent years, however, the US Supreme Court has come in for a lot of flak in America for its stopping of the Florida vote recount in the US presidential election of 2000 through a highly controversial 5-4 split decision that gave the election to Republican Party candidate George W Bush over his Democratic Party rival Al Gore.

Had the recounting of votes in the State of Florida not been stopped by the Court, Gore would have carried Florida, which would have given him enough Electoral College votes to make him the winner.

Under the American presidential election system, the candidate who gets a majority of the popular vote in a state gets all that state's Electoral College votes.

The number of Electoral College votes that a state has is based on the state's population. California, the US's most populous state, has the highest number of Electoral College votes; New York State has the second-highest number; and Florida, with 26 Electoral College votes, has the third-highest number.

The stopping of the vote recount in Florida gave Bush the state's 26 Electoral College votes, which, added to the total he already had from other states, made him the overall winner. All five of the Supreme Court justices who voted to stop the recount were appointed to the Court by previous Republican Party administrations.

Then-President Bill Clinton, a member of the Democratic Party, sarcastically remarked after Bush's victory: "Bush won the election fair and square -- 5 to 4 in the Supreme Court."

To make matters worse, the Governor of the State of Florida was Bush's younger brother, Jeb Bush -- reinforcing the suspicion in some Democratic Party circles, including the Gore campaign organisation, that the voting in Florida had been rigged.

Due to the Florida imbroglio, the announcement of the official result of the 2000 presidential election was delayed by more than a month -- making the US electoral process the butt of jokes around the world, especially in those developing countries where such shenanigans are common.

All of which goes to show that even the US Supreme Court -- for all the provisions in the American Constitution to help keep the Court free of outside influences -- can sometimes become embroiled in political controversies.

The concept of judicial independence means that judges are free to make decisions based on the law and do not feel compelled to comply with the wishes of powerful political leaders. But the degree of judicial independence varies from one nation to another.

In democratic countries judges are usually chosen on the basis of merit rather than politics and cannot be removed from office because of the nature of their decisions. In contrast, in authoritarian regimes judges are more likely to follow the dictates of political leaders and to be disciplined if they do not.

 


Supply side problems
There is a lot that needs to be done before everyone in Pakistan has access to clean potable water
 

One of the most basic human rights, fundamental to our survival, is the right to clean and potable water. What is then most alarming is that the implementation of this right should be so neglected and disregarded in our country on such a vast scale. It is widely known and also officially recognised by the World Bank that Pakistan is 'one of the most water-stressed countries in the world'. What is more, the greater part of Pakistan's water is not just dirty, but actively harmful to the majority of the population. A report issued last month by the World Wide Fund for Nature (WWF) has confirmed that water problems have yet to be adequately tackled by the government agencies despite various efforts by human rights and health organisations. Although guidelines specifically oriented to aid the water decontamination effort, such as the National Water Policy (Draft 2004) and the National Environment Policy (2005) have been passed, they have not yet been implemented to a sufficient, globally-recognised extent. There is vast disparity between the growth of Pakistan's industrial sector and the parallel humanitarian and ecological efforts that need to be taken to ensure sustainable development and a stable outlook for the ecological future of the country.

What is most central to the problem we face when implementing environmental efforts is the lack of educational material available to both the masses and the industrial sector. Although the sector is primarily responsible for the pollutants that are continuously dumped in our water supplies, only one per cent of manufacturers treat their wastewater before discharging it into rivers and drains. The majority of these environmentally conscious manufacturers, export to clients in countries that must abide by strict international regulations for health and pollution and are therefore obligated to maintain a strict, internationally approved level of commitment to waste treatment. It is, however, the lack of information supplied by the government to the population that exacerbates the dangers of water contamination. Many are unaware of basic treatments such as boiling their drinking water, which can dramatically reduce the risk of contracting gastrological diseases such as diarrhoea, a disease that takes the greatest amount of young lives per year in Pakistan. According to the Human Rights Commission of Pakistan, "children account for 94 per cent of deaths from diarrhoea".

The statistics are eye-opening to say the least. According to the WWF report, over 250,000 children die in Pakistan of preventable, water-related diseases every year. In 2005, "20-40 per cent of the hospital beds were occupied by patients suffering from water related diseases" while "diseases such as typhoid, cholera, dysentery and hepatitis, (were) responsible for 33 per cent of deaths". But very shockingly, only 0.8 per cent of total government expenditure is spent on public health facilities.

On the plus side, Punjab has by far the best supply of water for rural areas in the country, with only 7 per cent of the population depending on a dug well, river, canal or stream, followed by Sindh, where these sources cater to 24 per cent of the population. Though there is a relatively abundant supply of water in the Punjab, recent reports by the Pakistan Council for Research in Water Resources (PCRWR), however, revealed that in 2004 over 2 million Punjabis were drinking water containing unsafe levels of arsenic concentration. Arsenic is most commonly known and used as a poison that, in high quantities, is fatal. When ingested in comparatively small doses and over a long period of time, it leads to chronic poisoning which is thought to cause or aggravate certain diseases and is a known carcinogen. Its effects include still births, heart disease, diabetes mellitus, nephrosis and emphysema among others. Punjab is not the only area with severe water issues. The same report by the PCRWR also confirmed that "almost 95 per cent of (Sindh's) shallow water supplies are bacteriologically contaminated".

Apart from health problems caused by the unsanitary water supply, a pattern of economic and social consequences is also becoming apparent. All branches of society are connected to the water supply, be it through drinking or for hygiene purposes. Therefore, if as many as one in three patients are in hospital because of a water-related disease and not at work, then this figure not only affects the patient's family, but directly impacts the country's Gross Domestic Product (GDP). Apart from humans, the water supply also affects crops and fish on an immense scale. In Pakistan, irrigation takes up 93 per cent of all water consumed. Not only can this percentage of water usage be dramatically decreased, allowing for a greater availability of water for the population, but its decontamination would also result in a healthier crop yield. Water pollution has also severely depleted the amount of fish that are harvested in water supplies, directly diminishing the economic capacity of the industry. Positive impacts of a water clean up would be vast and far-reaching. It would create positive international attention and, as a result, would invite foreign investment into the country.

There are no official drinking water quality standards in Pakistan and so both piped water and the surface groundwater that are available in our country go equally unmonitored. Although this in itself is deplorable, there are still over 40 million Pakistani residents that depend on irrigation water for drinking or surface water as their regular source of potable water. This irrigation water is not only highly unsafe when ingested but also often exceeds the level of contamination set even for irrigation water.

Pakistan has maintained a legal approach when addressing environmental issues. Legislation has long been enacted and includes the Canal and Drainage Act (1873), the Punjab Minor Canals Act (1905), Sindh Fisheries Ordinance (1980) and The Greater Lahore Supply Sewerage and Drainage Ordinance (1967). Though these laws have been in place since long, little has been done to convert these laws into practice.

The Human Rights Commission Pakistan has continuously championed the clean drinking water cause and last July staged a demonstration outside the Lahore Press Club protesting the increasing health problems caused by the supply of contaminated water to the population. Although changes are slowly being made, there remains, in our country, an apathetic attitude when the issues involved affect the masses as opposed to the elite.

World Water Day is being observed on March 22.

New Delhi recently witnessed an unusual international seminar on 'Saving the Doha Round' organised by the government of India in association with leading non-governmental organisations from both rich and poor countries. These included Oxfam International from the United Kingdom, Carnegie Endowment from the United States and CUTS International from India. It was unusual because governments rarely organise such events in partnership with public interest NGOs. The seminar added some momentum to the slow moving talks on Doha Round. Most importantly it delivered a key message that the civil society may not be able to enter negotiating rooms, but it can influence them from outside.

The multilateral trading system under the aegis of the World Trade Organisation (WTO) has come a long way since this organisation was established in 1995, following the conclusion of the Uruguay Round of talks under the General Agreement on Tariffs and Trade (GATT). One of the striking features of the WTO in its first decade of existence is its remarkable ability to attract attention from NGOs. According to WTO's definition, any entity other than a government is a non-governmental organisation. This means that WTO considers organisations representing business interest and those representing public interest at par. It's another matter that business interest often receives more attention as far as international trade is concerned. From barely a few NGOs (that too mostly from the rich world) participating in WTO's first ministerial conference in Singapore in 1996, hundreds of NGOs have participated in the sixth one held in Hong Kong in 2005. They represent a variety of interests: business (including small business), consumers, environment and social issues.

There are several reasons for this growing interest among the NGO community on matters related to the WTO. Till the Uruguay Round negotiations on international trade issues under the GATT system were mostly confined to those issues, which were mainly of interest to rich countries. Even rich country NGOs were not interested in such issues. For the first time, in the Uruguay Round, issues such as agriculture, textiles & clothing, services, investment, intellectual property rights were brought under the ambit of the multilateral trading system. These issues concern the lives of the common people, and thus NGOs started taking interest in the multilateral trading system. Even then it was a few NGOs in rich countries, which were active in the field. I remember taking part in the Hong Kong Congress of the then International Organisation of Consumer Unions (now Consumers International) in 1991 where the famous Dunkel Draft on the Uruguay Round was discussed heatedly. Unfortunately many like me from the South were at a loss to understand what was going on.

Interest of developing country NGOs on WTO issues has started growing following the Singapore ministerial conference of the WTO. In 1996, the International Centre for Trade and Sustainable Development (ICTSD) was established in Geneva. It was a joint initiative of Northern and Southern NGOs. Its main mandate was to inform the larger civil society on what was happening in Geneva with regard to the WTO and for more than a decade it has been doing this in a most professional manner. For a large number of NGOs from poor countries, and governments, ICTSD's weekly and monthly bulletins are the major sources of getting information on WTO matters and thus getting gradually empowered.

Even though NGO interest in WTO matters has grown over the years, there are yet certain myths with regard to their positions. This is not to say that NGO positions are homogenous on all or majority of issues (in fact, on many occasions they are different), but often it is perceived that all NGOs are opposed to the WTO. This is a myth. There are a large number of NGOs, which are centrist in their philosophy and do understand the virtues of a rules-based system, which the WTO is. It's another matter that on many occasions several countries have violated WTO rules and in some cases, they were rectified through the WTO's dispute settlement mechanism. Many NGOs have taken active part in many of these disputes by voicing their concerns and in some cases by submitting amicus briefs.

It is another myth that the Seattle ministerial conference of the WTO collapsed due to NGOs marching in the streets. The reality was that Seattle was abandoned due to two reasons: irreconcilable differences between the European Union and the United States on further opening up of agricultural trade (which continue to dominate the debate even today) and US insistence on bringing in contentious issues such as labour standards into the WTO, which was resisted by the poor countries.

A second myth is that developing countries, like India, look at NGOs (even the domestic ones) suspiciously, because international agencies and governments of rich countries mostly support them. There is little truth in this allegation. A look at the composition of official delegations of developing countries to the Hong Kong ministerial conference shows that NGOs were represented in the official delegation of almost all such countries, including India.

It is true that developing country NGOs are mostly supported by donors from the Western world, but there is no way that they tow the positions of the rich countries on WTO matters. In many cases, their positions differ substantially from those of rich countries (even from those of the NGOs of the rich world). But it is also true that NGOs often provide a vehicle through which the rich and the poor countries reconcile their positions on specific issues, of which the TRIPs and public health accord is one.

And since the Singapore ministerial conference, many governments have started engaging NGOs in their activities on WTO matters. Immediately after Singapore, an advisory committee was formed by the government of India to help trade negotiators on WTO matters, which included two NGO representatives. Similarly, many other developing country governments, such as Kenya, Pakistan, Zambia, South Africa have been consulting their NGOs through structured platforms, and have portrayed their positions (particularly on agriculture) based on such consultations. In some cases this practice is being followed religiously. Many of these countries have also nominated NGOs in their official delegations to the Hong Kong ministerial. The truth is that developing countries have understood the importance of an 'inclusive process' while taking positions on WTO matters and this is one way of mainstreaming international trade into their development strategies.

The author is the Secretary General of CUTS International and can be reached at psm@cuts.org

 

Farms of trade

 

Agriculture negotiations at the World Trade Organization (WTO) have made no progress so far. Several deadlines have been missed due to undue stubbornness of the European Union and the United States. Both the rich blocs do not seem willing to understand that Doha round was declared a 'development round' and not a market access round. They are also unable to comprehend the importance of agriculture for poor countries.

While the European Union and the United States are reluctant to reduce their farm subsidies and the level of protection to their farm sector, they have been united in pushing poor countries to open up their markets. This time, however, the situation is different from the Uruguay Round of negotiations. Developing countries are well prepared and they have organised themselves in various groupings to safeguard their interests. The two important blocs of developing countries are 'G 20' and 'G 33'. The G 20 is very active on domestic subsidies and tariff issues, and G 33 has equally stood united by pushing forward developing countries' right to protect agriculture through protective proposals, known as Special Products (SP) and Special Safeguard Mechanism (SSM). Pakistan is a member of both the groups.

In fact the idea of SSM was first introduced by Pakistan while SPs were launched by Indonesia. Though the idea of SPs and SSM is actually a departure from the market access commitments to be made during this round but this is not new in trade deals. In GATT 1947, the United States took special steps to protect its agriculture sector and in the Uruguay Round of Agreement on Agriculture many countries were having the right to defend their agriculture sector by using special safeguard available under article 5.1. The developed countries specially benefited from Peace Clause which exempted them from having their cheap exports challenged legally at the WTO. In present round of negotiations, concept of sensitive products is also one such escape route which will benefit developed countries.

As part of the Doha Round of the WTO negotiations on agriculture it has been agreed -- while final modalities and measures are yet to be decided -- that developing countries would have a category of agricultural products classified as Special Products, which would be have lower tariff reductions from the general formula cuts. Similarly a Special Safeguard Mechanism allows developing countries to increase their import tariff levels in case of an import surge. The objective of these measures is to ensure food and livelihood security and rural development in developing countries by protecting small farmers against the volatility of the world prices.

The July 2004 Framework of the Doha talks provided developing countries flexibility to designate certain agricultural products as Special Products based on the criteria of food security, livelihood concerns and rural development. The Hong Kong ministerial conference reaffirmed the developing countries' right to self-designate an appropriate number of tariff lines (agricultural products) as Special Products and to develop Special Safeguard Mechanism to protect poor small farmers from import surges. However since the inception of the concept, it is facing strong criticism from many countries and institutes who want increased market access for farm goods at any price.

Contrary to the resistance from rich countries and international financial institutions, national governments of poor countries cannot leave hundred and thousand of farmers on the mercy of global market forces. Agriculture in developing world not only feeds whole rural and urban population, it's also a major source of employment and foreign exchange earnings. Already liberalisation of agriculture sector under structural adjustment programme and Uruguay round commitments has devastated millions of farmers throughout the developing world. The losses are immeasurable. The rural unemployment has increased as the growth in imports of subsidised cheap agricultural products has flooded the developing countries. Local production has declined and countries which once had a comparative advantage in agriculture have lost it to the giant global corporations that have become even more powerful on the back of Western farm subsidies.

Therefore, in order to protect employment in farming sector and protect our food sovereignty, Pakistan should take an offensive position in negotiations on SPs designation and SSM modelling. By no means should we surrender on this count to the pressure from the Western countries or international financial institutions.

Finally, to restructure future discourse on trade negotiations and making them favourable to the needs of developing countries, we urge our trade minister to participate in G 33 meeting in Jakarta on March 20, 2007 to strengthen the case of poor small farmers. This way not only we would win the support of farming community in Pakistan but also homage of the marginalised communities around the globe.

 


governance
The state of misrule
Pakistan's recent track record in maintaining the rule of the law is hopeless. The situation can be reversed only if the government focuses on its core function of providing people with security and justice
 

"The clearest way to show what the rule of law means to us in everyday life is to recall what has happened when there is no rule of law."

[Dwight David Eisenhower, 1890-1969]

 

"I would have government defend the life and property of all citizens equally; protect all willing exchange; suppress and penalize all fraud, all misrepresentation, all violence, all predatory practices; invoke a common justice under law; and keep the records incidental to these functions. Even this is a bigger assignment than governments, generally, have proven capable of. Let governments do these things and do them well. Leave all else to men in free and creative effort."

[Leonard E Read]

 

The greatest affliction that can happen to a nation is that its institutions brazenly indulge in activities other than they are supposed to be involved in by general consensus or assigned to them by law or constitution. Thus, they defy their own raison detre. Government, one of the most important institutions that make a nation, is like all other institutions quite vulnerable to move away from the constitutional, legal or consensual norms.

All governments on earth unmindfully do many such things which they are not formed for or which they are incapable of doing by their very nature. They leave their original purpose/s far behind and run after so many pseudo goals that can never be achieved. These pseudo goals only prolong their lies and unjust rule. But, as a rule, they fail in performing the very duties they are meant for.

Differences abound what a government should do and what it should not. For instance: whether a government should involve itself in economic activity or not, or if it should, to what extent. Or, whether a government should adopt the role of a re-distributor of income or not. Or whether it should regulate economic activity or not; and if it should, to what extent. All this is a matter of great controversy. However apart from these controversies, there is one value on which universal agreement exists: it is the rule of law. A government ought to establish the writ of law and maintain it.

The greatest achievement of human civilization is that we have come to treat all of us as equal as regards rules and laws. Indeed, everybody is born unequal -- he is unequal from others, physically, mentally, and in so many ways. So, had there been no rule of law, there would have been stark inequality. And, in that case, the mighty and powerful must have been ruling the roost.

Actually, all types of power or might or force subsume under the concept of authority. This power or might or force may be of two types -- one is with which people are born with by birth and other is one that is acquired. The former is like the might of a lion, elephant, rhinoceros or a powerful person. The might or power may be acquired by effort as well. Wrestling techniques, judo karate, tae kwan do, kung fu, etc -- all these make one powerful. This power is part and parcel of human body; it cannot be separated from the person until and unless he suffers any physical damage.

But, there is another power that can be separated from the body of the person who has got it. This power consists of all those things or instruments which can be used in an attack on another person or in defence of one's own self. However, the expertise or dexterity of using these 'weapons' can be learned and separated from one's person by inflicting damage to the body or the mind of the person who possesses them. The firearms are like that. Their use with or without dexterity can lessen or enhance the possibility of one's success and survival.

All this power, might or force has something to do with physical bodies of human beings or with material things. However, in addition to these, there is another type of power which characterises human society and human progress. This is 'authority' per se. Authority also endows one with power or might or force. A person who is invested with certain authority comes to be powerful regardless of the fact that he is physically weak or armless. Likewise, if a person is divested of such authority, no matter how mighty, powerful and armed he is he comes to be powerless.

It is this authority that initially was a symbol of democratic development and later came to be known as legal authority. In other words, this authority used to be derived from law. With the advent of this authority, individuals and groups lost their source of authority, that is, their power or might or force, natural or acquired. Now law became the source of power and might.

With time, it was this legal authority that developed into constitutional authority. In order to manage communities and countries, constitutions were devised. Constitutional duties and responsibilities were fixed. All power or might or force was brought under law and constitution. This helped societies move forward from the law of jungle to the law of humanity. This was a great leap forward in the history of human civilization.

But perhaps factually it is not like that! There are many societies that still oscillate between older and modern concepts of authority. Most of their people are still infatuated by power and might. They are still a victim of worshipping the rule of the powerful, and consider power and might as panacea to all ills. In such circumstances, forces opposed to rule of law easily get rooted and strengthened. They show no regard for the legal and constitutional authority, and the law of the land. They violate that very law which invests them with authority. This is no human condition.

No doubt, Pakistan is one such country. We are steadily sliding down on the scale of rule of law -- a sine qua non for the smooth running of social and economic life of a country. Take up newspapers, magazines, etc, of, say last six months, and there is recurring warning of worsening law and order situation. The editorials, opinion-articles, reports, news, news-features, letters to editors, all point to the same thing: that the government is not fulfilling its fundamental duty of protecting life, property and freedom of its individual citizens, and as a result, life for the common and general public is becoming a nightmare -- nobody feels safe any more even in their homes. Not only is this the general perception, it is a fact also.

As to the factuality of this state of affairs, ruling leaders and government functionaries would differ by calling it impressionistic. As an argument, we have another source to validate our thesis: that Pakistani people are experiencing what is not the rule of the law but what is a grave law and order situation!

The business of life depends on a healthy life of business. A healthy life of business requires an environment conducive to its establishment, smooth running and flourishing, and protection of its income and property. It is because of this that many indices that measure in fact various business factors place rule of law at the top. We shall navigate only one such index and see how Pakistan fared on the scale of rule of law for the last 10 years.

The Economic Freedom of the World Report is prepared and published by the Fraser Institute, Canada. It is "the best measure of economic freedom available." It uses the data collected and processed by "third-party international sources such as the IMF, World Bank, World Economic Forum. Much of its data is of the "objective" statistical sort, and much is also "subjective," coming from surveys, case analyses, or expert panels."

This report does not measure rule of law specifically and independently. It, however, takes into account the factors related with the state of the rule of law which affect economic freedom. Out of its five main areas, the second one is concerned with legal structure and security of property rights.

By this area, the report seeks to assess and establish the following:

"Security of property rights, protected by the rule of law, is essential to economic freedom. Freedom to exchange, for example, is meaningless if individuals do not have secure rights to property, including the fruits of their labor. Failure of a country's legal system to provide for the security of property rights, enforcement of contracts, and the mutually agreeable settlement of disputes will undermine the operation of a market-exchange system. If individuals and businesses lack confidence that contracts will be enforced and the fruits of their productive efforts protected, their incentive to engage in productive activity will be eroded. Furthermore, poor performance in this area is sure to deter investment. Therefore, it is highly unlikely that countries with low ratings in this area will be able to achieve and sustain high rates of growth."

Finally: "Protection of persons and their rightfully acquired property is a central element of both economic freedom and a civil society. Indeed, it is the most important function of government. The key ingredients of a legal system consistent with economic freedom are rule of law, security of property rights, an independent judiciary, and an impartial court system." (Economic Freedom of the World 2006 Annual Report)

Here is the score assigned to Pakistan in this area for the last 10 years. The score is allotted from 1 to 10. The higher the score, the higher the rating and the better the performance and prospects.

As to the overall score in the area, it has been steadily declining from 1995 onward. The same is the case with other components of the area with little differences: on the whole they too are decreasing. The two components, D and E, require our special attention. In the D component, the last four reports have assigned zero score. Why they did not do so prior to 2001? Didn't the present spell of military government start in 1999? Also, in E, though the score declined from 7.0 to 5.0, but from 2000 onward it has remained static. How so? Has the integrity of the legal system in Pakistan come of age? Why is it at a standstill? This may be explained as an illusion of quantification since practically the integrity of our legal system is in complete disarray. Also, if read in conjunction with other components of this area, this score is unintelligible: when there is little judicial independence, almost non-existing impartial courts, and absolute military interference in the rule of law and political process, how the integrity of legal system can remain intact?

In component C, an improvement is visible perhaps because of increasing awareness on the part of people as well as government that rights to intellectual property need to be protected. In components A and B also, there is a bit of upward movement: A improved from 2.3 to 2.6 and B from 2.2 to 2.3. But it was in 2004. What about 2005 and 2006 and how it affected the general perception and belief of people and media in Pakistan? Out of a plethora of heart-rending news reports and stories spread over the electronic and print media, here is just one example: a letter to the editor of an English daily has following to say:

"My generation -- one that once lived under British governance -- knows what the rule of law meant. What we have today is anarchy. People like me, who are not affiliated with a political party, the bureaucracy, the army or the press, are treated as though we are not even citizens of the state. And yet we are the majority, the teeming, toiling citizens of Pakistan..."

In sum, the state of the rule of law in Pakistan is precarious, and so the life of the people. This shows utter failure of the government and criminal negligence on the part of the institutions of government. Or is it willful? Willful in the sense that it might be serving, or it might suit, certain interests of certain quarters. This fear is strengthened by the fact that there is no serious notice seems to be taken of the situation, and there are no efforts on the way to improve it.

Whereas what is urgently needed, and is strongly recommended here, is a new prioritising by the government putting the establishment and maintenance of the rule of law at the top with zero tolerance. The government must leave all its businesses other than building infrastructure to the genius of its citizens and focus whole-heartedly on its basic duties such as betterment of the law and order situation and provision of justice. It must divert all its resources to the performance of its 'protective function' ably and indiscriminately. The government which succeeds in creating a sense of protection among its people as regards their life and property is a government helplessly needed by the people at this critical moment of our unruly history.

It is this policy which alone can ensure peace and prosperity to the people of Pakistan.

The writer is associated with Alternate Solutions Institute, Pakistan's first free market think tank. His email address is: khalil@asinstitute.org

 

Area Components          Legal Structure and Security of Property Rights

A        Judicial independence ñ the judiciary is independent and not subject to interference by the government or parties in dispute

B          Impartial courts ñ a trusted legal framework exists for private businesses to challenge the legality of government actions or regulation

C          Protection of intellectual property

D        Military interference in rule of law and the political process

E          Integrity of the legal system

The campaign for the November 2008 US presidential elections is going to be perhaps the longest in world history, since it has already begun. Are there any lessons in this strange, drawn-out process for South Asia?

A weird electoral phenomenon has been taking place over the almost two decades since I've been observing the US presidential elections. The dates for the launch of the presidential races have been moving continuously backwards. This time, the process has culminated in the ridiculous spectacle of the candidates lining up at the starting line literally the day after the elections for the US Congress held last November. So, we now have the leading candidates for both the Republican and the Democratic parties actively fundraising, forming election committees, and going out on the campaign trail. It's going to be a long, long road ahead for all of them.

Why this lengthy procedure? In a nutshell: money. It is estimated that spending on the presidential election will top $1 billion this time! To raise money to stay in the competition, you need to do it better and quicker than others. So, in the race to get in touch with the right people to get money, each of the candidates is desperately trying to outdo the others. Plus, the quicker a candidate gets his or her act together, the healthier the chances of getting better media coverage and for forming the alliances on the ground needed to get votes.

On the Democrat side, the supposed front-runner for getting the party's nomination is Hillary Clinton. (Former Vice President Al Gore will quite certainly not run, in spite of the enormous publicity his lead role in this year's Oscar-winning global warming documentary, 'An Inconvenient Truth,' has generated.) If she gets the nod, every presidential election since 1980 will have had either a Clinton or a Bush as a presidential or vice-presidential candidate: George Bush Senior, Bill Clinton, George W Bush, and Bill's better half. (Even then the Western commentators have the gall to accuse South Asia of being characterised by family politics!) Hillary is in the bizarre situation of having both the advantage of having such an incredibly famous and politically savvy hubby and the disadvantage of being associated with such a controversial personality. In addition, a lot of people find Hillary herself to be grating and cold. I had the occasion to see her deliver a presentation ten years ago (on her trip to South Asia) and came away with my opinion of hers lukewarm then as now.

But Hillary's path may be made difficult by Illinois Senator Barack Obama, an African American. Obama's assets are his unique background (his father was Kenyan; mother a white American), his charisma, and, interestingly, his comparative lack of political experience. If either of them wins the nomination and subsequent election, it will be historic, since neither a woman nor an African American has been elected to the highest office before. Trying to catch up with the duo are other candidates, notably former North Carolina Senator and John Kerry's 2004 vice presidential running mate John Edwards.

On the Republican side are two very interesting figures. Arizona Senator John McCain is a Vietnam War hero who spent more than five years as a prisoner of war in a Vietnamese prison, where he was tortured frequently. His unique problem is that he's more popular with the public at large than with Republicans due to his maverick political stances! He's a very charming man in person. I've had the pleasure of meeting him twice and have been very impressed, a tremendous feat for any Republican to perform on me. His main challenger is former New York City Mayor Rudolph Giuliani, whose major claim to fame is that he was in charge during 9/11 and managed to convey an image of steadfastness and decisiveness. His personality is so arrogant and off-putting, though, that it's hard to see him overcoming that.

So how does the process compare with elections in South Asia? There are surface similarities and profound differences. Sadly, the electoral process even in the United States is corrupted by big money. Whoever pays the piper, calls the tune. There are strict campaign-finance laws on the books but corporations and rich people always find ways around them. The big difference with South Asia is that criminal money plays almost a negligible role.

This brings us to the second big contrast between the election campaigns. I always use a joke to explain the difference. Elections here in the US are tainted by one M: money power. Elections in South Asia are tainted by two Ms: money power and muscle power. Sure, here the campaigns are vapid, antiseptic exercises that are often issue-free, with the 1996 Bill Clinton-Bob Dole presidential face-off perhaps being the best recent example. On the flip side, however, there are almost none of the shenanigans that characterise South Asian campaigns. So no election violence, no booth capturing, almost no voter intimidation and no large-scale vote buying. (The 2000 elections that Bush stole was a huge anomaly worthy of a column in and of itself.) 'Dirty' campaign tricks here in the United States would be laughed at as amateurish.

Another huge dissimilarity is the role played by television. Certainly, television has a much bigger function in South Asian elections than it had even a few years ago. The Bharatiya Janata Party (BJP) tried to utilise this medium for its 'India Shining' campaign in the 2004 elections but the attempt fell flat on its face. In the US, the idiot box is thought to be the most cost-effective method to get through to a busy, media-consuming electorate. So, there are relatively few elections rallies (though I was fortunate to see rock star Bruce Springsteen perform for John Kerry here in Madison in 2004) and comparatively little street campaigning. This makes for less of a human touch but also less disruption.

It also makes for a much more personality-based campaign, where the charm of the candidate matters more than the party affiliation. Ronald Reagan's key to his success was that he combined an avuncular folksiness with an impression of toughness. (After all, he was a B-grade Hollywood actor.) That's a major reason a lot of people voted for him even when they disagreed with him on the issues. And, more recently, there has been William Jefferson Blythe Clinton, perhaps the most charming political personality of his generation, a person who hasn't, paradoxically enough, managed to pass on this charm to his wife.

A question that may interest readers: What will the winner mean in term of an adjustment of policy toward South Asia? The answer: not much. The foreign policy consensus in this country has become such, both among Democrats and Republicans alike, that there'll just be a difference of emphasis, not a radical change. So, presidents from both parties will continue the long-term wooing of India, which is thought to be a rising power, while maintaining a wary alliance with Pakistan to get its cooperation against Al Qaeda and the Taliban. The other South Asian countries barely register on the US foreign-policy map. This may change, though, if Nobel Peace Prize-winner Muhammad Yunus, a good friend of the Clintons, succeeds in politics and takes charge of Bangladesh, and if at this end of the planet his buddy Hillary succeeds in prevailing in possibly the longest election campaign ever to be seen on the face of this earth.

Amitabh Pal is the Managing Editor of an American magazine, The Progressive (www.progressive.org), a monthly political publication founded in 1909. This is his regular monthly column for Political Economy.


firstperson
Bruce Riedel
The Afghan solution

Bruce Riedel is a known American scholar, working as a senior fellow at am American think-tank called Saban Centre for Middle East Policy. Before that he has worked as America's Special Advisor for Noth Atlantic Treaty Organization (Nato) in Brussels, Belgium (2003-2006).

Bruce Riedel has worked on several other important posts including as special assistant to the US President, as senior director for Near East and North African Affairs at the National Security Council (1997-2002), as deputy assistant secretary of defense for Near East and South Asian Affairs (1995-1997) and as director for Gulf and South Asia Affairs at the US National Security Council (1991-1993).

An expert in counter-terrorism, Arab-Israeli issues, Persian Gulf security and India and Pakistan conflict, Bruce Riedel also did several assignments at the Central Intelligence Agency between 1977 and 1990.

Now working on projects related to conflict management and counter-terrorism, he did his master's degree from the Harvard University in 1977.

The News on Sunday had the opportunity to ask him some questions related to Pakistan and Afghanistan through the e-mail. Following are the questions and his responses:

The News on Sunday: Do you think increase in the number of Nato forces in Afghanistan will help put an end to Taliban resistance and militancy in that country?

Bruce Riedel: I do not think the increase so far we have seen would resolve the whole problem but I think they (the increased number of forces) are essential in preventing the Taliban from achieving major successes when they launch their offensive this spring and summer. The Nato forces in Afghanistan are under-manned and under-equipped for the last several years. We have now seen the United States, United Kingdom, Germany and some of other allies sending additional forces.

TNS: Do you see or suggest any role for troops from the Islamic countries in Afghanistan to create and maintain peaces?

BR: I think Nato should ask Muslim countries to help contribute troops to the mission today. The Nato has a dialogue with several Muslim Countries, which goes back more than a decade. (It is) called "Mediterranean Dialogue" and through this arrangement the Nato representative meet regularly with Morocco, Tunisia, Algeria, Egypt and Jordan and I think it would be very helpful if Nato ask its Mediterranean partners to send troops to Afghanistan as you correctly point out that Afghan people would be more receptive to Islamic countries troops than to European and US forces presence. I think troops from the Muslim countries from the Mediterranean would be one of the best ways to help move forward to stabilise the situation and help the people of Afghanistan.

TNS: There have been reports that Afghan President Hamid Karzai is inviting Taliban for talks. Do you think Taliban have a political role to play in Afghanistan?

BR: I think this is the decision ultimately that should be made by the government of Afghanistan. President Karzai and Parliament of Afghanistan ought to be the ones which make the decisions on what level reconciliations should be with the individuals that have been associated with the Taliban. I do not think that should be an American decision or the Nato decision. And in the end, I would leave this to the people of Afghanistan. It is the people of Afghanistan who should decide about how to resolve the war in their country. Our role as partners is to provide assistance to those decisions to be made in Kabul and not in Washington and Brussels.

TNS: Given the strong resentment among people in the south of Afghanistan, do you believe Nato will succeed in achieving its objective of eliminating Taliban resistance without help from the Afghan people?

BR: The Nato forces in the south need to work in harmony with the local governments and provincial governments and there should be a strong relationship between the Nato reconstruction themes. The battle for Afghanistan will ultimately be won in the hearts and minds of the Afghan people. Nato can provide stabilisation for that battle to be won. But in the end it is up to the Karzai government to put programmes to win over Afghan people. The virtue in increasing the size of the Nato Personnel is to prevent the Taliban from achieving a military success in this summer, which would make even more difficult the political dialogue in future.

TNS: Do you believe Nato can play role in combating drugs production and trade in Afghanistan?

BR: Well, the government of Afghanistan and the Karzai administration have asked Nato to assist and provide stabilisation throughout the country. In the entire country -- north, west and central -- it is going successfully but the problems is in the south -- the Pashtun areas. One thing which is counterproductive is when Nato operations inadvertently result in civilian causalities. In my writings, I have made a recommendation that Nato should be much more careful in its military operation to avoid civilian causalities.

And in those regrettable cases in which there were civilian casualties Nato should set up a programme to compensate or assist any victim of military operations.

TNS: Do you think the civilian casualties can harm the objective of Nato in Afghanistan?

BR: Certainly, anytime the military operations result in civilian and innocent causalities that is a setback for efforts to stabilise the situation.

Nato needs to be careful in its operations. It should do all it can to avoid civilian casualties. When they do happen, Nato needs to make (it known that it regrets) the result of such operations. The families of the victims should see the Nato truly regrets the casualties and they should get some form of compensation for whatever damage they have suffered.

TNS: What role do you see for Pakistan as an neighbouring country in the context of maintaining peace in Afghanistan?

BR: Pakistan has to play an important role here as it has for too long tolerated Taliban and Al-Qaeda activity in its territory, especially Taliban activity. I think the Nato alliance needs to encourage Pakistan to cease providing a safe heaven for the Taliban. I see some of the US officials who have recently visited Pakistan have done so specifically to push Pakistan to close safe havens and help stabilise Afghanistan.

TNS: Do you think fencing the Pak-Afghan border is a good idea in this context?

BR: I think fencing the border is not the optimal solution and the optimal solution is (that) Pakistan needs to close down the recruiting and fundraising activity of Taliban on it soil. I think fencing the more than 2000 kilometers border would not be very successful and (it is) likely that in the long run it would lead to more alienation between Afghanistan and Pakistan. I think for Pakistan it involves more steps than building a wall dividing the Pashtun tribes on both sides of divide.



End of the world as we know it
Whenever states have gone to war, humankind has suffered
 

A state regarding internal affairs is either wise or unwise, nothing more, nothing less. Wisdom requires the state to be considerate most of the time and occasionally tough.

To elaborate this we begin with our own examples. "It is not 1970s; they will not know what has hit them", so said General Pervaiz Musharraf about the Baloch rebels. Nawab Akbar Khan Bugti was the most prominent among those who have been hit since then. Hitting is still going on and consequently the hatred against the state is going up. After the military operation in East Pakistan whoever would talk about the negative repercussions and likely disintegration of Pakistan, the response used to be terrible: 'we would keep Pakistan united even if we had to exterminate half of Bengali population'. Result: half of Pakistan was separated in 1971.

Had our state been wise it would have given financial autonomy to East Pakistan. It could have avoided war, defeat and separation. Balochistan must be given financial autonomy to avoid another catastrophe. Weren't the Bengalis being exploited since the beginning? Aren't the Baloch the losers in the federation? What our state does is that it chooses military options where dialogue and compromises are needed, as it did with the Bengalis and is doing with the Baloch; and makes compromises where toughness is required, as it did with the Taliban in Waziristan. Had the North not waged a war against the South on the question of slavery, the US would not have been a super power today. It would have been like one more Canada in the continent of America.

A state regarding external affairs is a larger entity. Besides, wise or unwise, it is weak or strong, and dependent or independent also. In inter-state relations morality is rarely invoked. Here too toughness and cooperation guided by wisdom form the basis of a relationship. However, the weak states even if they are wise often have limited choice. The strong states even if obtuse dominate. The massacre of the Indians by the forces of Ahmed Shah Abdali, Nadir Shah and East India Company are examples from not so old Indian history. India during those times was divided into so many weak states. However, after 1857 the British and the Indians acted wisely and did not fight with each other. It benefited both, and the Indians ultimately got independence peacefully.

How the Germans butchered the Polish, the French, the Hungarians, the Slovaks and many more is a European example. The weak states had no way out but to submit. An advancing Germany on the other hand should have stopped somewhere and entered into a dialogue.  It should have avoided elongation of war when it had come to know that it would finally lose . And that by not doing so let the powerful states, The US and the USSR, defeat and destroy it.

How the Japanese killed the Koreans and the Chinese, and the US used atomic bombs in Hiroshima and Nagasaki are the terrible Asian examples. .The US should not have resorted to that degree of toughness against Japan.  there was no need of displaying beastliness through nuclear bombardment. Yet, the beastliness is a part of mankind's evolutionary or 'intelligently designed' structure, and it on times comes out in a big way to express itself; needed or not is a subsequent question However, after the war Both Germany and Japan cooperated with the US and are reaping the harvest of wisdom.

The North Koreans tested nuclear bombs for a different purpose. They needed energy, food and capital. They were seeking a bargaining edge. The Americans knew about their intentions and also about their limited capabilities. Hence, the explosion was ignored and post-explosion agreement is under consideration.

North Korea perhaps detonated all of its enriched uranium during its nuclear tests. It is a case similar to the one of Pakistan and India.  They tested their enriched material collected over decades and returned to conventional things soon after. Poor nations have limits. Even the Chinese nuclear programme related to defence is not seen as a big threat, even by the Indians.

Iran on the other hand would remain for a long time, an energy surplus country. It can buy whatever it needs through sale of oil and gas. Hence, if Iran's quest for nuclear energy is seen by the Americans as meant for conversion to the atomic weaponry, there is logic in it, if not truth. Iran's non-cooperation with the IAEA extends the logic even to the extent of truth. Given the nuclear enrichment capacity of Iran, a possibility of hundreds of nuclear bombs being added to its arsenal exists.

Iran's case is different by one more angle.  Iran has openly and so many times expressed its deep hatred against the very existence of Israel as a country. Not only that, Iran has also been supporting Hezbollah and Hamaas financially as well as through supplies of arms.

The US blaming it for supporting Shiites militancy in Iraq is another point in the charge sheet. Iran, moreover, is an ideological state and is full of emotional charge. Combine its richness, capabilities to acquire hundreds of nuclear bombs, hatred for Israel, hard-line ideology and posture of self-righteousness, the resulting entity makes Iran a suspect in the eyes of the Americans who have very high stakes not only in the oil rich region, but also the world over.

 A war, intentional or accidental, between Israel and Iran would bring disaster not only to the region but also to entire world. It is because of the most sacred places of the Muslims and others that are located in the region. Israel being a small country as compared to its neighbours and Iran cannot sustain a nuclear attack; it will be destroyed totally. So to save itself it would use whatever it has including 400 to 2000 nuclear warheads. A nuclear showdown of that kind would be sudden; hence intervention from others would not be possible. The neighbours of Iran including Pakistan are not ignoring the possibility of such occurrence. General Pervaiz Musharraf's efforts backed by important Muslim majority countries to convince Iran on nuclear restraint regime were timely.

Will Iran be attacked is a decades old question. The US would do it the moment it is convinced that Iran would not abandon its nuclear weapon programme. Isolated as Iran is today, the US would not seek the UN approval. The UN's observations that the sanctions are not working would be taken as a sufficient reason.

 In case Iran chooses to remain on the nuclear path, the US is prepared and the war strategy has already been chalked out. It is certain that it will not be a war like the ones of Afghanistan and Iraq. The level of preparation as being told and seen reflects that the Americans this time would display their full strength. Required number of aircraft carriers and thousand of cruise missile would be available to the US forces in less than a month.  This Gulf war would be unique in modern times. The American navy would be in the forefront supported by the reinforcements coming from the near by bases. 

The Americans may destroy all that connects a country and nation. Devastation of communication systems,economical and politically relevant areas would top their hit list.

 

 Change of government and redefining of political system including turning Iran into a confederation of Persian speaking population, Kurds, Baloch and Arabs are post-war agendas of the US. It could be a beginning for a redrawing of boundaries in the entire region.

What adds to fears is that the beastliness of man may again come out to show its maximum. While the Israel-Iran nuclear war is a probability, the US using nuclear bombs is a possibility. Almost all war analysts are talking about it. Given the discourse of Richard Armitage on the Lebanon, Iraq and Afghanistan wars, and linking them with the pre and post-WW II Germany and Japan, the world should prepare itself for the bad days ahead.

Iran must turn to wisdom. It is a disturbed country. It has no enemies other than the ones of its own imagination.  It should spend oil income on internal development and not on the military paraphernalia that it does not need and is making it vulnerable too. Iran can live, better, without a nuclear bomb. Today it has a choice. It would be not be the same after the war.

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