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COST
OF LIVING security Budget,
set, go! Saving
not possible consumers Fetching
fruit home is only a dream!
Can't
help things...
Editorial A friend made an interesting observation the other day about the 'illogical micro-economic management' of the urban middle classes. Often we haggle with a rickshaw wala for ten rupees, he pointed out. Ten minutes later we hand over the same ten rupee note to a beggar that comes our way. Illogical no doubt, but a fact nonetheless. Though not exactly
related, this week we focus on how people manage their micro-economics
within the family unit. We put the macro-economics aside for the moment
although we are very much Price-hike, a permanent complaint of the house-wife, has touched new heights in a matter of a few months. A chain reaction, kick-started with the increase in oil prices, has hit virtually every commodity under the sun and the common man is left with no option but to bear the burden of living. Not politically organised, he bears this burden silently. He and the silent millions are not even equipped to organise themselves as consumers. In the absence of any active consumer societies (consumer courts are helpless as far as price hike is concerned), large businesses find it easy to keep exploiting the passive consumer. Some analysts might see in this simmering untapped rage the potential of a revolution, helped of course by the news of suicide among the poor and the unemployed appearing in daily newspapers. Till such moment that the people become empowered enough to change their lives, not necessarily through a revolution, these remain exceptionally difficult times. So we decide to focus on the micro-economics because this is within people's reach, or is it? As we sit down to set up various income brackets, we realise that the privilege of choices exists for those who are earning a hundred thousand rupees per month and more. We decide to ignore them too and include case studies from four income brackets -- under Rs 5000, under Rs 15000, under Rs 35000 and under Rs 60,000 -- and see how the pattern of spending changes even as we move from one to the other. Just how do these families make ends meet? How do they make their household budgets? Education of children, housing, transport, food, utility bills, is what consumes the entire income and as you go down in terms of income, the quality of these services deteriorates. Saving is out of the question, healthcare an added burden and entertainment is a luxury that the majority can only imagine. Of course the sample is the urban population and makes no mention of the daily wage earner who has no income security whatsoever. As the macro-economics remains pitched against the majority of the population, the trickle-down effect a pipedream, the government's safety nets a hoax, ordinary people seek informal cushions in the form of cash and kind from the better off amongst the kith and kin. The poorer sections do not hesitate to ask for occasional help from their employers whose egos are gratified by this small act of kindness. Meanwhile we revert to people and their lives, a welcome digression from cold analyses, and quite an eye-opener.
By Shahzada Irfan Ahmed Ever wondered how the poor survive within their extremely limited means? Especially during the times when even the relatively affluent find it hard to maintain the lifestyles they are used to. The question becomes more complex when one discovers the queer relationship; the poorer the household the larger is the family size. In this situation, no
mathematician or economist can discover the formula that helps these
amazing people sustain in such unfavourable conditions. The answer,
however, lies in the availability of Technically speaking, safety nets are the instruments aimed at cushioning poor households from routine and unexpected shocks. These can be state sponsored facilities, voluntary contributions by the society, charity inspired by religious teachings and tradition, community and family based contributions and so on. But this does not mean that the poor are always the recipients of these timely aids. Many a time the aid goes to those who do not deserve it at all, on political grounds or on the basis of personal likings. Prof Siddique Akbar, former chairman Zakat Council, Shalimar Town, Lahore, tells TNS that the obligatory Islamic taxes such as 'zakat', 'ushr' and 'fitrana' and non-obligatory charity like 'sadqaa' and 'khairat' are strong pillars of the social welfare system that provide safety nets to the needy. He says as around 95 per cent of the people in Pakistan are Muslims, the collection under these heads is quite large every year. However, he adds, an even more challenging task is to ensure that financial assistance reaches those who are really deserving. "It's a fact that many people do not contact authorities for help as their ego is hurt by doing so." According to Prof Siddique, it is binding on the functionaries of the state to provide help to these persons at their doorsteps. Other formal safety nets are conditional cash transfers like the incentive payments made to the poor who make use of certain health and education facilities meant for them, old-age income security, pension for government employees, employees' old age benefit institutions, other employment based programmes, workers welfare funds, programmes through various foundations, food rations or food stamps, school meal programmes and labour-intensive public workfare programmes. Sajida Bibi, a housemaid and mother of four, tells TNS that she earns Rs 3,500 per month which is spent on paying utility bills, house rent and food much before the end of the month. Her husband does not work and stays home almost the whole day. When asked as to how she manages to meet other routine, unforeseen expenses, she says there are some kind-hearted people who always help her out. "The lady in the house where I work gives me used clothes for my children and husband every year," she continues. For healthcare, she has access to the free dispensary run by a philanthropist in her area. The doctor who gets a fixed salary charges Rs 2 from a patient and, in many cases, even waives off that amount also." In case of serious illness, she has to go to government hospitals where she can get financial help from Zakat fund. "But the process is too complex and lengthy as compared to that followed by the dispensary." In addition, informal transfers within families and kinship associations also exist. These transfers involve exchanges between households of cash, food, clothing, informal loans, and assistance with work or child-care. As the poor are unable to live in separate houses just for the sake of piracy they reap the fruits of living in joint family systems. Muhammad Roshan Khan, a security guard by profession, says he cannot find words to thank his clansmen who helped him out when he needed money for his daughter's marriage. "Not only my kinsmen pooled money for me, they gave me indefinite time to return it. Furthermore, they contributed to the dowry according to their respective financial status and took burden off my shoulders," he adds. The tradition of giving 'salami' to the bride and the bridegroom also has its basis in the culture of helping each other out in such times. The amount collected in the form of 'salami' would help poor parents meet a considerable part of the expenses they had made on the marriage. Today, it has become more of a fashion and a compulsory ritual irrespective of the financial status of the bride or the bridegroom. Shahid Ali, a social worker who looks after the affairs of a rehabilitation center in Lahore, tells TNS that his observation is that every other person is ready to dole out charity if he is sure it will reach those who deserve it the most. He says the people with middle income group give comparatively more and mainly to individuals, while the higher income group invest in institutions like madrassas, orphanages, hospitals and so on. Najma Majeed, a widow and a midwife, tells TNS that the major chunk of her family's meagre income goes to the provision of food to her family. "That's why I never miss any opportunity where I can have access to free food for my family," she says. Najma says the people of her area know that she lives within limited means. That's why I am always the first one to receive alms money or sadqa meat distributed by the people. "There are many people, even poorer than me, who do not accept sadqa meat fearing it may bring curses with it. But for me it has always been a blessing," she adds. Budget,
set, go! By Naila Inayat In its Dec 2007 cover story, titled 'The End of Cheap Food', The Economist quoted the urban-based Pakistanis as being under a threat posed by the perennially rising food prices. In this situation, the role of a middle-class housewife -- with Rs 25,000 to 35,000 available to her in the shape of a monthly income -- becomes all the more important. Nasreen Jabeen, a mother of three, tellsTNS how she budgets household within the salary her husband, a private firm employer, brings her. "What I do is, I
purchase grocery that costs around Rs 5000, at the start of the month.
This For Mrs Jabeen, utility bills use up a major chunk of the monthly budget. And, there is at least one "important" bill at the peak of every season: "In winters, the sui gas bill shoots up, while in summers, it's electricity usage." Normally, she can do with sparing Rs 1000 for electricity, Rs 4500 for sui gas, and Rs 800 for water and sanitation. The goods and bills aside, the services are also taken care of. Mrs Jabeen's maid is paid Rs 2000, the milk man gets Rs 1500, whereas the remuneration given to the newspaper hawker, the sweeper and the watchman adds up to Rs 500 per month. Fuel and transport expenses cost roughly around Rs 5000. Living in the house provided by her husband's company makes for some monetary relief. But, her monthly expenditure is likely to increase once her children start going to school. Mrs Jabeen reveals that she and her husband have a large circle of friends and, therefore, she must always spare Rs 2000 for gifts she has to give on weddings and birthdays. Routine medical examination means coughing out a couple of thousands. A sum of Rs 4000 is reserved for 'miscellaneous' expenses such as shopping and recreation for kids. At the end of the month, she is not left with enough that she can save. It's tougher for a family with growing, school-going children even with a little over Rs 50,000 By Sarah Sikandar Akmal Sheikh is a branch manager at a local bank. His monthly salary is Rs 50,000 which goes up to 55,000 including the allowances he gets from the bank. A father of two girls, he lives in the same locality as his parents. Being one of the three sons he also has to support his parents. "My wife and I decided that we will have two children, even if they are girls," he tells TNS. "My father was a clerk in the Railways. We went to mediocre schools and colleges but we want a better life for ourselves. The work I do is important to me in terms of the money I get." Education, according to
Akmal, is the main concern of a middle-class family -- after food, that
is. "We spend Rs 10,000 at the beginning of every month on grocery. That includes flour, rice and things that are used in preparing food. Between Rs 5000 to 7000 are to be kept every month to run the kitchen that includes purchasing vegetables, fruits and other things." Rs 10,000 to 15000 go to paying the utility bills. "We always try to consume less electricity and water. You have to train your children for that." More than Rs 5000 are spent on transport. Akmal owns one car while his children go to school by the official van. These are the basic expenses of his house. There are practically no savings because of what he calls "extra-curricular activities" in the house. "Since the girls are growing up they are also beginning to make friends. Birthday parties and eating out are also a regular part of the week." Akmal prefers to take the kids to parks but they prefer places like Pace or Mini Golf. He takes his daughters to the Playland every month. "Socialising has its price," says Akmal, "All my cousins and friends live in Lahore so we are entertaining the guests almost every other day. My wife is a good cook so people like to visit us for get-togethers." Akmal says that survival is very difficult for an average man in today's times. He wonders what will happen to his family if he dies. "Our children are growing up, and especially I worry about my daughters. I sometimes think perhaps I should cut down on my expenses and start saving. But it doesn't seem quite possible."
No NGOs or civil society groups can work well to fight for the rights of the consumers unless the latter join in themselves By Aoun Sahi "I'd like to launch a full-fledged protest against the recent wave of price hike but I cannot, because if I do, who will earn bread and butter for my family?" says Muhammad Rafique, 50, owner of a small-time tea stall in Mustafabad, district Kasur. Father of five -- three
sons and two daughters -- Rafique knows that in the last six months the However, Rafique is still not quite moved to step out and take to the streets. Instead he has forced his family members to reduce their diet intake. "Till about six months back, my children would eat two chapattis each, but now they must make do with one chapatti at a time," he says, lamentingly. Interestingly, Rafique has also had to increase the rate of one cup of tea. But this, again, hasn't helped matters, because the prices of sugar, gas and tea leaves are also on the rise. According to Rafique, his actual income has reduced considerably, even after he increased the rate of a cup of tea. A majority of his customers are poor workers who come to him from adjacent factories and nearby villages. Now, obviously, they find his tea stall to be an expensive proposition. "All of us end up believing that there is no authority (in Pakistan) that could do something about the problems of the poor. "If we come out on the road to protest there would be police and other law enforcing agencies to torture us and arrest us." He says that even the clerks and trade unions are not seen protesting against the price hike. "Before Musharraf came into power, we used to see hundreds of clerks or members of different trade unions protesting every other month. But this phenomenon has completely vanished." This is the dilemma faced by every second person in Pakistan, as in the last one year the prices of most food items have doubled and, in some cases, increased manifold. The consumers are the most vulnerable lot who do not know who to complain to, as there is apparently no system in place to check the perennial price hike. Every one knows that there are people who are responsible for the flour crisis, but they have not been brought to the book so far. This shows the power of the cartels or market forces responsible for price hike. Farooq Tariq, spokesperson of Labour Party Pakistan admits that over the last eight years, the role of trade unions has been reduced. "There is no trade union movement in Pakistan right now," he declares, "and that is why the poor workers are unable to come out on the roads to protest against the price-hike." Under the Industrial Relations Ordinance (IRO) 2002, the Musharraf-led regime banned most activity and legal rights of the trade unions. This was part of the depoliticisation process of the society at large by the regime. Hence, trade unions and labourers are loath to launch protests against the issue of price hike." Akmal believes that the consumer in Pakistan, instead of lodging his protest against the responsible authorities, ends up haggling and -- in some cases -- picking a fight with the shopkeepers. "This is a very negative trend, as it does not prevent the enemy from creeping in. When you don't react, chances are the culprits will feel encouraged. "I must reiterate that the people will have to come forward if they want their rights to be protected." For its part, the Punjab government has set up a council and courts that deal with the consumer complaints in the province. According to Nadeem Arshad Kiani, Director Consumers Protection Council, Punjab, the one basic thing that is missing among the consumers in Pakistan is "awareness. Educating them is a very challenging task, especially since the common consumer does not trust the government departments." Talking to TNS, Nadeem said that the media should play a positive role in this regard and project the success stories of the consumer courts. The other important thing, he said, is the formation of focused consumer groups, "We already have civil society groups that talk about democratic rights, human rights, and the common man's right to justice. But, they do not raise their voice when it comes to consumers' problems." Consumer groups are actively found in a number of countries of the world. "Consumer Education Research Centre, Gujrat, is one of India's leading NGOs working on consumer rights. Its objectives include creating awareness among consumers about their rights and initiating action that would help them protect themselves. It was established in the year 1978, after the government decided to increase the bus fare," he said. Nadeem added that in Jan 1978, the Gujarat State Road Transport Corporation decided to raise bus fare. The Transport Ministry issued a draft notification of the fare hike and arranged a meeting where suggestions and objections from the public were invited. The hike was strongly opposed by Prof Ramesh Bhatt, Prof Manubhai Shah, Prof K G Munshi and Prof A C Brahma Bhatt, all of who belonged to a Trust called the Foundation for Public Interest (FPI). They questioned the validity and legality of the proposed increase in fares. Firstly, the decision to increase the fares of the services of a government-owned body could not be taken by the government itself, if it were to be impartial and unbiased. Secondly, the government had not even submitted before the people their reasons and justifications for increasing the fare. In fact, even before the fare hike was decided, the then Chief Minister, Finance Minister and Transport Minister called upon a press conference where they had prejudged that a fare hike was inevitable. "There was no violence. No buses were stoned or burnt, no processions were taken out, no glass panes or windows were broken, no slogans were raised. However, the validity of the arguments based on questions of facts and law could not be ignored. Eventually, the proposal for a fare hike had to be shelved. It was the first time in the history of India that law had been used for consumer protection. The FPO then named itself Consumer Education and Research Centre and registered itself as a non-political, non-profit public charitable trust." In Pakistan also, Nadeem continues, we need to have such groups to protect the consumers rights. "It is true that it's the duty of the government to protect the consumers, but we should keep in mind the fact that it cannot agitate for consumers. This can only be done by consumer groups and civil society organisations themselves. And, in this way, they can effectively compel the market to protect their rights." There are some NGOs and civil society organisations working on the consumers' issues but the common perception is that nothing can be achieved without the participation of the consumers themselves. "Basically, because the NGOs and civil society groups have but limited capacity," says Abrar Hafeez, Secretary General Consumers Rights Commission of Pakistan (CRCP). According to Abrar, the consumers are the most vulnerable lot of society as they have no say in price determining mechanism at any level in Pakistan. He adds that the kuchh-nahin-hona syndrome badly prevails in our society. "It is doing us no good. There is no culture of making a collective effort in our society. We really need people who can step out of their houses and protest against the menace of price hike. They should boycott the shopkeepers who do not display rate lists or sell goods at prices higher than the normal." Table
of Discontent A comparative look at the rise in prices of some of the essential commodities of daily use over the past three months Item 2007 2008 Cooking Oil/ 41/2 kg Rs 350 Rs 700 Flour (5 kg bag) Rs 70 Rs 120 Tea/kg Rs 200 Rs 220 Sugar/kg Rs 20 Rs 32 Packed Milk/lit Rs 35 Rs 44 Rice/kg Rs 45 Rs 75 Pulses/kg Rs 40--80 Rs 60--100 Soaps (1 bar) Rs 20 Rs 30 Detergents/kg Rs 100 Rs 150 Butter/kg Rs 150 Rs 190 Compiled
by Naila Inayat
Fetching
fruit home is only a dream! Iqbal Hussain, 46, is a typist in a private company. His average monthly income is Rs 15,000. His regular income is the salary that he draws from the company which is Rs 8,400. Iqbal works part time as a photographer in a shop that he has rented for the purpose. He covers wedding functions and earns between five to seven thousand rupees extra in case he gets one function. There are months when he is lucky enough to cover up to three wedding functions, but then there are months when there is none. This is after the eight-hour shift he maintains at the office. Iqbal has four children,
a widowed sister and a wife to take care of. He is the sole bread earner. Iqbal is rather creative as far as food is concerned. "We cook daal one day, vegetable the next day, and save money to cook meat (beef, of course!) or chicken the third day. And we cook tota rice which is cheaper." Iqbal never hands over money to his wife. "I bring the provisions. If I don't have money, I get it on credit." He has never taken his children out on an excursion. He and his children get second-hand clothes from Landa Bazar. "My wife gets clothes once in a year." And taking fruit home is only a dream. Iqbal's job is contractual and the company now gives him a medical facility of up to Rs 10,000 per year. Does he get any assistance from his or his wife's family? "No," he replies, "My wife was an adopted child and she has no family. I have brothers who don't check up on me because they are managing their own lives with great difficulty. If there are any functions in the extended family, I avoid them because each function means incurring an expenditure of Rs 500." Iqbal thinks he has been not too lucky, generally. For many years, he paid Rs 3000 per month in a 'committee' that was to bring him one hundred thousand rupees at the end. When his turn came, the man who organised the committee ran away. "If I had that money, I could have made some investment in my shop and done reasonably well." But there are times when being a diabetic seems like a blessing to him. Because on days when he has no money and he has to walk all the one-and-half-hour way home, he consoles himself by thinking it's good for his disease. It makes the long way a little less burdensome. -- FZ
Can't
help things... By Saadia Salahuddin "Today an item is for one rupee, tomorrow it is for two. That is how the prices are increasing, constantly. It's only tenth of the month and I have Rs 600 left in my pocket," says Masud, pushing 50, who works at a private organisation as a helper. Masud's monthly salary is Rs 5000. How does he manage to live in this meagre an amount is anybody's guess, but here's a straight-from-the-horse's-mouth account of what life is like, subsisting on the bare necessities. "I get the basic
food items and the necessary things needed at home in the beginning of the
month. The rest of the month we take things on loan from a general store
in the neighbourhood. The bill How will you do that with only Rs 600 left in your pocket, I ask. "I take loans, sometimes from one colleague, sometimes from another and return on getting salary. The circuit goes on." Father of three school-going children, Masud tells me he pays Rs. 300 tuition fee to a teacher who helps the children with homework in the evening and the tutor is demanding increase in fee. Luckily, the children are studying in a Trust school close to their home. If it were not for such schools, many children would never get education for lack of resources. Though cost of living has gone up in every way, the most telling are prices of edibles. Masud's household uses open oil instead of tin pack because it is cheap comparatively. "Oil was 52 rupees per litre only four-five months back, now it is for Rs 120 per litre. We use five litre oil in a month. My wife has asked me several times to bring desi ghee. Her argument is our children are school going and need better nutrition but I cannot afford desi ghee. "There was a time when I would purchase daal for Rs 10 and we would cook a meal; now you do not get even 1/8kg daal in this money. Vegetables are so expensive that it is hard to decide what to eat." With wife and three children in primary school, Masud takes only one litre milk every day which comes at Rs 26 per litre. The children have milk -- hardly a cup each while adults take tea. These children do not get biscuits, bakery products and toys unlike ours. "There are times when children insist on things of their choice -- sometimes they want edibles, sometimes toys, but I say next month." The next month does not arrive. What a heartbreak. "I do get bread (double roti) once a month if a child insists on that. Having fruits is out of question. Kino is for Rs 50 per dozen, apple Rs 80 and bananas Rs 35-40. The price of rice has just doubled this year; so that, too, is out of question." The bus fare has increased by Rs 2 and Masud, like a good number of population, has to travel on two buses to reach the workplace. What he does is, he walks half an hour to the office instead of taking another bus. Electricity bill is Rs 800 on average. In the absence of Sui gas, Masud uses LPG whose price went up to Rs 90 per kg early this year. For long Masud did not have a phone at home. He recently bought one second hand mobile phone to remain in touch with his family. Masud takes his midday meal at the office that costs him Rs 15 daily. He lives in his own house for which he is extremely grateful to his father. Health problems come as a bolt from the blue for those in this income bracket, but Masud - a conscientious family man -- always takes his family members to the doctor and is never negligent at any pretext. The lowest paid are also the least cared for because they are the ones who need medical cover the most but it is not there for them. Masud always wears a smile, is most helpful to everyone and we have a chaotic day at the office without him if he ever goes on leave because there is no tea and no one to run errands for everyone around.
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aware of the link between the two -- of how government policies like
consumer financing lead to inflation in a country like ours. We
deliberately ignore the economic analysis and focus instead on the people.
certain formal and informal safety nets in the society that offer lifeline
to the poor when they need it the most.
includes vegetables, meat and other edibles such as pulses and
spices."
His children go to Lahore Grammar School. "We pay Rs 10,000 per month
for each child. Besides, the youngest one takes home tuition for
mathematics that costs us Rs 3000 a month.
prices of all essential commodities of daily use have gone up at least
two-fold. "Cooking oil was available at Rs 55 per kg some four months
back, but now it is priced at Rs 120 per kg, while the price of wheat
flour (atta) has not only doubled in the same period, it has also
disappeared from the market. Ditto for the prices of sugar, pulses and
vegetables."
Three of his children are school-going. He has the monthly expenditure on
his finger tips. His children go to a private school system run by one of
his acquaintances. So he gets a rebate. He gets to give Rs 500 per child
per month instead of the regular Rs 900 per month. "My wife is not
educated, so I pay about as much as the children's tuition fee. Rs 1800 go
for the three utility bills, Rs 2000 as rent of the shop, Rs 2000 for
milk, Rs 1700 for transport, Rs 3000 for grocery."
accumulates which I clear upon getting salary in the beginning of the
month."