analysis
Hollow sloganeering
May Day promises typically do not translate into meaningful changes for workers
By Aasim Sajjad Akhtar
On May 1, the 122nd anniversary of the heroic struggle of Chicago's industrial workers was commemorated around the world. Like in the past, rallies were also organised in most of Pakistan's cities. Government functionaries 'greeted' workers in official press statements, while the print and electronic media also 'celebrated' the May Day by putting together full-page spreads and especially prepared packages, respectively.

Newswatch
The dangers of globalisation
By Kaleem Omar
One of the more amusing banners carried by anti-globalisation protestors at the G-8 summit in the French lakeside town of Evian-les-Bains back in June 2003 read: "Sink the G-8!"
That might not have been such a bad idea given what two of the G-8's members, the United States and Britain, have been doing in Iraq in the five years since then. Several other G-8 members have joined the US and Britain in killing people in Afghanistan – all in the name of 'keeping the peace', of course.

firstperson
Following in Bacha Khan's footsteps
I owe my inclination towards progressive nationalist politics to the great Bacha Khan
By Arif Tabassum
Engineer Zmarak Khan Achakzai belongs to a respectable family of the Killa Abdullah district of Balochistan. His family has been playing an active role in politics since Bacha Khan's Khudai Khidmatgar Tehreek; his grandfather Malik Ayub Khan was also jailed with Bacha Khan and Khan Shaheed Samad Khan because of his political struggle. His family played a leading role in the formation of the National Awami Party (NAP) and is now leading the Awami National Party (ANP) in Balochistan. Besides politics, his family has been managing the tribal affairs of the Piralezai clan in the area.

Do we need madrassas?
Since the Lal Masjid incident last year, the issue of religious schools has come to the forefront of political debate
By Syed Nadir El-Edroos
In the past, one thought of radical madrassas (seminaries) as being located in the tribal regions bordering Afghanistan, having little connection with the rest of the country. Patronised by the state's security apparatus since the 1980s, madrassas today are equated with terrorism, extremism and intolerance. Both foreign and domestic actors have contributed to the growth of madrassas in the last two decades, so much so that their wide appeal has nothing to do with either 'jihad' or 'cleansing the society of Western evils', as is commonly believed. Instead, the state's failure in providing the citizens with access to basic social services is the major reason behind the unchecked growth of madrassas in the country.

special
report
Averting crises
The new government would have to do something out of the world to provide any relief to the masses
By Dr Noman Ahmed
As the new government took charge of the country, it found itself surrounded by many crises of chronic nature. The carry-over wheat crisis has affected a vast majority of the population in the most serious manner. With the retail prices of flour reaching Rs 35 per kg in some areas, the common people are finding it hard to survive. Other food commodities have also experienced a supplementary price hike because of the transfer of peripheral consumption load after the wheat shortage. The global increase in oil prices could no longer be contained by the new government. In less than a month, therefore, petroleum products have experienced an increase of more than Rs 15 per litre.

The ultimate choice
Corruption seems to be the only way for the poor to survive in these gruelling times
By Mohammad Saleem Shahid
Owing to the spiralling price-hike, indulging in corrupt practices remains the ultimate choice for many of the poor segments of society. The unabated hike in the prices of daily-use items -- such as wheat, flour, sugar, rice, vegetables, ghee and cooking oil -- has broken their back. These oppressed people are expressing their resentment at the unchecked price-hike and are frustrated to the extent that they are committing suicides. The other contributing factors to this phenomenon are growing poverty and unemployment. Only in the last few months, as much as 40-80 per cent increase has been recorded in the prices of edible goods and transport fares, while the rich are getting richer following the 'pro-poor' policies of the previous government.

The real challenge
International organisations are issuing warnings about the repercussions of food crisis in countries such as Pakistan
By Sikandar Ali Hullio
"Providing two meals to the family is getting unmanageable, as the prices have soared out of our reach," laments middle-aged Zareen Khan, standing in a queue at a Utility Store in a lower-middle class locality. Another aged lady, Sabiha, with dimmed glasses, also had a similar but more depressing complaint: "Initially, only atta was out of stock. Now it is the turn of other items." These are just two pictures of the chronic atta, rather food, crisis from the very heart of Islamabad.

inequality
For the rich only Income and wealth disparities galore in our society
By Huzaima Bukhari and Dr Ikramul Haq
According to a study conducted by the Centre for Research on Poverty and Income Distribution (CRPID), 63 per cent of poor in Pakistan fall in the category of 'transitory poor'. The State Bank of Pakistan (SBP) has also admitted in its annual reports that the standard definition of 'transitory poor' includes those households that are below the poverty line for most of the time, but not always, during a defined period.

On state's expense
Subsidy is given to political parties in one form or the other in many countries of the world
By Alauddin Masood
For their multifarious roles, political parties require funds on a sustained basis. Till the 1950s, they raised funds for party organisation / functioning through membership fees and donations. In 1954, Costa Rica initiated a system of public funding of political parties and candidates. Argentina followed suit next year and Germany in 1959. Thereafter, Austria, Canada, France, Italy, the United Kingdom, the United States, Scandinavian countries, Hungary, India, Japan, South Korea and Thailand also started giving subsidy to political parties in one form or the other.

A negative phenomenon
The huge gap between the rich and the poor in our society is widening with each passing day
By Tahir Ali
In its essence, equality implies two things: one, no one should enjoy special privileges; and two, adequate and equal opportunities should be provided to all for their development. If this is not the case in a society, then democracy and liberty there will be nothing more than a farce. Equality does not mean that all citizens should have equal wealth; rather it means that the primary needs (food, clothing, shelter, etc) of all citizens should be satisfied before any inequality of wealth is allowed. "I have no right to cake if my neighbour, because of that right, is compelled to go without bread," as Laski beautifully puts it.

 

 

analysis

Hollow sloganeering

May Day promises typically do not translate into meaningful changes for workers

By Aasim Sajjad Akhtar

On May 1, the 122nd anniversary of the heroic struggle of Chicago's industrial workers was commemorated around the world. Like in the past, rallies were also organised in most of Pakistan's cities. Government functionaries 'greeted' workers in official press statements, while the print and electronic media also 'celebrated' the May Day by putting together full-page spreads and especially prepared packages, respectively.

Amidst all the fanfare, the vast majority of those who sell their labour power to earn a living -- in other words, the very class in whose name the May Day came into being -- remained almost completely untouched by what was happening. The many, many workers who are daily-wage earners were probably lamenting the fact that a public holiday deprived them of work for the day, thereby making their hand-to-mouth existence even more precarious.

Of course various ministers attending events on the day made epic pronouncements that the government would extend labour laws to the so-called informal sector, ensure that all workers receive the minimum wage and increase pensions. But anyone (worker or otherwise) that has a sense of the realities facing the working class in Pakistan will know that May Day promises typically do not translate into meaningful changes for workers.

In part this can be explained by the fact that those in power are not committed to ensuring that the rights of the working class are protected. There are of course non-negligible differences in the attitudes of elected and unelected governments towards the working class. So, for instance, the present elected government is likely to be far more responsive to the needs of workers than the military regime that preceded it. Having said this, very few governments in Pakistan's history have privileged the concerns of labour over capital, and the present coalition government is not likely to be an exception.

In some ways what is more important than the posture of government per se is the extent to which workers themselves are organised. The simple rule of thumb is that organised workers are much better placed to force government action in their favour in comparison with workers that are not organised. And the brutal truth is that, in the current conjuncture, the working class in Pakistan -- as in many other parts of the world -- is not at all organised.

There are numerous reasons for the dismal state of affairs, all of which are interrelated. Until the late 1970s, the labour movement in Pakistan was as formidable as anywhere in the world. Its strongholds were the big state-owned enterprises, such as the Pakistan Railways, the Water and Power Development Authority (Wapda) and the Pakistan International Airlines (PIA), though union power in the private sector was also quite impressive. For the most part trade unions were autonomous of party influence and state co-option (with notable exceptions). After Zulfikar Ali Bhutto came to power this autonomy began to be eroded, but it was only after Bhutto's overthrow that the labour movement was irreparably undermined.

The Zia years can be characterised as the worst in Pakistan's history on many accounts. For the working class the Zia years were dark because of the unprecedented state repression that was employed to destroy independent trade unionism. However coercion was crucially complemented by the military junta's successful strategy to turn the union leadership into a coterie of middlemen that altered the very essence of trade unionism. Whereas previously the trade union was openly seen as a vehicle for class struggle, it now became another cog in a patronage-based political order in which personal contacts with state functionaries became the pre-requisite for union leadership.

The labour movement has also been indelibly affected by changes in the structure of global capitalism. In particular what David Harvey has called the 'flexibilisation of labour' has severely weakened the power of trade unions. Specifically, the fragmentation of production processes has eliminated the factory as a workplace and thereby eliminated the possibilities of organising on a large-scale. Coeval with the fragmentation of production has been the process of 'informalisation' insofar as this implies that much value-added production and provision of services does not fall within the boundaries of the officially documented economy.

Indeed the vast majority of economic activity in societies such as Pakistan now takes place in the 'informal sector' and the conditions facing workers in this sector are very oppressive while organisation is very difficult. It can be argued that even at its peak the Pakistani labour movement was relatively small, and that it never managed to incorporate 'informal sector' workers into its fold. At a very basic level this is true and does suggest flaws in the organising strategy of unionists but the much bigger issue has always been the fact that third world economies are structured in such a way as to make organisation of a large majority of workers very, very difficult. And this harsh reality has only become more acute over time.

All told, on the occasion of May Day, the rather sorry state of the labour movement is laid bare for all to see. While those unionised rely on the largesse of their opportunistic leaders to survive the system for another day, month or year, a huge number of Pakistani workers are simply unaware of the fact that an entire day of events is being organised to highlight their problems. Perhaps most perversely, ministers in their Pajeros are greeted as the guests of honour at May Day functions.

In closing it is worth recalling the basic theme of Marxist thought, which has remained the primary inspiration of working class struggle for the best part of the last 150 years. In the Marxist schema the contradiction between workers and capitalists is irreconcilable. Some might argue that this is not the case, and that it is possible for workers to be given their due rights while recognising the imperatives of profit-maximisation. However if one takes a look at the existing state of affairs in Pakistan, it becomes clear that a compromise between workers and capitalists is indeed very difficult. Ultimately this contradiction is reflected in state policy as well; the present government, like its predecessor, seems unable and/or unwilling to tax the rich so it squeezes the poor to the point of no return.

It is all good and well to point out that the government should adopt pro-worker policies, or that the mill owner should pay his workers the minimum wage, but just because something should happen does not mean that it will. So as the capitalist and the pro-capitalist government protect their own interests, it is up to workers to protect theirs. It is no surprise that workers organisations have been systematically weakened over the past couple of decades by the state and no amount of posturing by this or any other government can change the character of this state. A pro-workers state is only possible if workers are part of it. In coming years the May Day must once again come to signify the countervailing power of the working class, and only then can we start thinking about the possibility of a pro-people state.

 

Newswatch

The dangers of globalisation

 

By Kaleem Omar

One of the more amusing banners carried by anti-globalisation protestors at the G-8 summit in the French lakeside town of Evian-les-Bains back in June 2003 read: "Sink the G-8!"

That might not have been such a bad idea given what two of the G-8's members, the United States and Britain, have been doing in Iraq in the five years since then. Several other G-8 members have joined the US and Britain in killing people in Afghanistan – all in the name of 'keeping the peace', of course.

To make matters worse, G-8 oil companies have been making hundreds of billions of dollars in profits since then as the price of oil has quadrupled, with oil-importing developing countries like Pakistan seeing their trade gap shooting up and up as a consequence, putting more and more pressure on their balance of payments and eroding their foreign exchange reserves.

One of the dangers of globalisation is the sudden flight of capital from one market to another. This has become an all too familiar phenomenon for developing countries around the world in recent years, as seen, for example, in the East Asia financial crisis of 1997-99, which was triggered by the collapse of the Thai baht in July 1997 and the flight of capital out of East Asian markets to Wall Street and other Western markets.

Malaysia was one of the few East Asian economies that weathered the storm relatively well. This was because then-Prime Minister Mahathir Mohammed's government moved swiftly to impose strict controls on the movement of capital. The action was criticised at the time by some Western free-marketeers, but subsequent events proved that the Malaysian government had acted wisely to protect the national economy.

Indian writer and activist Arundhati Roy is perhaps the most well-known critic of globalisation in the developing world. Even in the West, however, some commentators have been warning against the dangers of globalisation for years. One such commentator is Naomi Klein, the Canadian author of the best selling book No Logo -- which criticises the role of multinationals and their product-branding policies in the creation of the new economic dispensation.

Another prominent Western anti-globalisation commentator is Tony Benn, formerly the stormy petrel of the parliamentary radical left in Britain, a Labour Party MP for nearly 50 years, a two-time minister in Labour cabinets in the 1960s and the 1970s, a long time peace campaigner, and the celebrated author of such books as The Speaker, the Commons and Democracy, On the Falklands War and Why America Needs Democratic Socialism.

In a speech to the ICU Labour Club in London in January 1998, Benn warned that if the pleas of the poor countries were not heeded by the West, the world could see another rise of fascism as seen in the 1930s, born at that time out of the extreme poverty in Europe. Three years later, in an interview published in Britain's Red Pepper magazine in January 2001, Benn again spoke about the dangers of globalisation:

"Globalisation is the free movement of capital, but not the free movement of labour," he said. "It is imperialism under a new form, only the agents of imperialism are companies rather than countries. But, of course, these companies are supported by countries. Thus America backs up its oil companies by going to war where there's an oil interest (the 1991 Gulf war), as Britain did in the Falklands in the early 1980s, because the Falklands, too, was an oil war. There is more oil around the Falklands than there is around the United Kingdom, and that's what that war was about."

As Benn pointed out, some companies are now bigger than nation states. Ford is bigger than South Africa. Toyota is bigger than Norway. "Some of these big companies come and dominate the world, bring pressure to bear on governments, and to make sure they then buy both the main political parties in Britain and America, and then expect the payoff whichever one wins. And imperialism, of course, is coming back now. It really is a direct counterattack on democracy," Benn said.

The franchise was only extended to one person-one vote in 1948 in Britain, and at the age of 18 later even than that, Benn pointed out. He said: "At that moment, the guys at the top got really frightened that the poor could use the vote not just to gain political power but economic power. So they decided to prevent it. They couldn't prevent it during the period of the Soviet Union, because the existence of an anti-capitalist superpower frightened the life out of the establishment. And so they had to let the colonies go, in case they went communist, concede the welfare state in case western Europe went socialist. Only America is now the dominant power and not Britain, and we're riding on the back of American military power."

Asked if Britain was now doing America's dirty work for it, Benn said: "Exactly. And now we can be a superpower but not a super state… like saying I'll have a banana but not a banana split. Ludicrous! But it's an indication that the urge for domination is the urge that's put forward by governments… But then, they're all in the pay, or under the control, of corporate finance. In a sense it's a very alarming development."

Referring to the protests in Prague in 2000 against the World Bank and the International Monetary Fund, Benn said that both institutions were initially presented to people as instruments of world development (just like the WTO is being presented today).

In the beginning these institutions at least put on a humanitarian front, Benn said. "Today, however, everything is humanitarian," he said. "The word is used to cover things. I don't say that it's always used in that sense, but they (America and Britain) do describe the bombing of Iraq as humanitarian."

Humanitarianism isn't the only euphemism, of course. There are lots of euphemisms being used by the West today. 'Free Trade' actually means protectionism in the United States. 'Globalisation' actually means the concentration of economic power in fewer and fewer hands. The 'international community' actually means America and the rest of the elites within the G-8 countries.

The notion of capitalism gives off the idea that there are free markets and various institutions struggling between themselves to lower prices. But this is not true, especially in the age of globalisation, if it ever was. As Noam Chomsky has pointed out: "The state is more often used to funnel public money into private hands."

 


firstperson

Following in

Bacha Khan's footsteps

I owe my inclination towards progressive nationalist politics to the great Bacha Khan

By Arif Tabassum

Engineer Zmarak Khan Achakzai belongs to a respectable family of the Killa Abdullah district of Balochistan. His family has been playing an active role in politics since Bacha Khan's Khudai Khidmatgar Tehreek; his grandfather Malik Ayub Khan was also jailed with Bacha Khan and Khan Shaheed Samad Khan because of his political struggle. His family played a leading role in the formation of the National Awami Party (NAP) and is now leading the Awami National Party (ANP) in Balochistan. Besides politics, his family has been managing the tribal affairs of the Piralezai clan in the area.

Born in 1962 in Aramzai Piralezai village of Killa Abdullah to Hayatullah Khan, Zmarak Khan Achakzai got his initial education in his native village. Later, he studied at Tameer-e-Nau College and Quetta Science College. He did his BSc in Electrical Technology from Engineering University Peshawar in 1987 and started his political career from the platform of the Pakhtoon Students Federation (PSF). He remained PSF's president in both Quetta Science College and Engineering University Peshawar.

After completing his engineering degree, Zmarak Khan did a number of jobs related to his field of study. For example, he was involved in the construction of the Balochistan High Court building and he also worked with the United Nations Refugee Agency (UNHCR) for six years. In 2006, when his uncle Ghulam Sarwar Piralezai -- who was the then ANP Balochistan president -- died, he was given the responsibility of managing the Piralezai clan's tribal affairs.

Zmarak Khan also joined the ANP to fill the void created by the death of his uncle, and was elected as the party's Balochistan general secretary last year. In the last general elections, he was elected as a member of the Balochistan Assembly from Killa Abdullah (PB-12). He has also been nominated as the ANP's parliamentary leader in the Balochistan Assembly and has been made the province's revenue minister. The News on Sunday interviewed him recently. Excerpts follow:

The News on Sunday: How and why did you join the progressive nationalist politics?

Zmarak Khan Achakzai: My grandfather Malik Ayub Khan was an active member of Bacha Khan's Khudai Khidmatgar Tehreek and was a true believer of the philosophy of non-violence. Whenever Bacha Khan visited Balochistan, he used to stay at our place. My grandfather's struggle with Bacha Khan evoked the pro-nationalist sentiments in my whole family. I was very young when my family elders joined the National Awami Party (NAP). The discussions about the philosophy of non-violence and the progressive nationalist politics within our family played a major role in my political upbringing. The great Bacha Khan's struggle and his philosophy of non-violence have had a very strong influence on me. I owe my inclination towards progressive nationalist politics to him. I consider myself as fortunate that I am a follower of his political views and am able to contribute to the Pakhtoon progressive nationalist movement.

TNS: What currently are the major political problems of the Pakhtoons in Balochistan and how does your party plan to solve them?

ZKA: The major political problems of the Pakhtoons in Balochistan are the same as that of other oppressed nations of the country. The ANP, therefore, wants human rights for not only Pakhtoons but for all nationalities in the province. The Pakhtoons in the province are faced with the question of defining their identity, finding an answer to which is the ANP's basic mandate. The party is struggling for unity among Pakhtoons and for their control over their resources. It believes that unless Pakhtoons unite, it would be impossible for them to get their basic political and civil rights.

The Pakhtoons make up almost half the population of Balochistan, but they do not have an equal share in resources and power. The denial of equal rights within the province is the major reason behind their low living standard in Balochistan -- the Pakhtoon-dominated districts of the province lack even the basic amenities, such as education and health. In addition, agriculture -- which is the major source of income for almost 90 per cent Pakhtoons in Balochistan -- has no more remained a profitable business because the level of underground water has dropped considerably. The people in power, unfortunately, have not given the due attention to this problem. Likewise, the security situation in the Pakhtoon-dominated districts of Balochistan demands firm action. The solution lies in a power structure in which Pakhtoons have equal representation.

TNS: Other Pakhtoon progressive nationalist parties, in particular the PakhtoonKhwa Milli Awami Party (PkMAP), are also struggling to achieve almost the same political objectives as of the ANP. Then what are the hurdles in the way of unifying this struggle?

ZKA: Though there is some strategic difference in their political struggle for the rights of Pakhtoons, the fundamental approach of all Pakhtoon progressive nationalist parties is more or less the same. During his visit to Balochistan last year, ANP chief Asfandyar Wali Khan invited PkMAP chief Mehmood Khan Achakzai to unite for the Pakhtoon cause. Then Mehmood Achakzai invited Asfandyar Wali to the PkMAP's National Congress and consultations for unifying all Pakhtoon forces began. These consultations led to the formation of the Pakhtoonkhwa National Democratic Alliance (PNDA), which raised the expectations of the common Pakhtoons of the country regarding a prosperous collective future. But the political situation never remains the same -- the ANP's decision to take part in the recent elections and the PkMAP's decision to boycott them slowed down the progress of the PNDA.

TNS: Do you think the PNDA needs to be reactivated in the current circumstances?

ZKA: Yes. In fact, the PNDA is the need of the hour. Speaking to some of the leaders of the PkMAP the other day, I stressed that it was our collective responsibility to strengthen the alliance for advancing the Pakhtoon cause. I believe that whoever tries to let the PNDA down, or creates hurdles in its way, would not be forgiven by the common Pakhtoons.

TNS: What has the ANP achieved by taking part in the recent elections?

ZKA: The biggest achievement of the ANP has been the reclaiming of the image of Pakhtoons as peace-loving people. The party's decision to contest the recent elections proved to the world that Pakhtoons are not terrorists; rather, they are peace-loving and tolerant people. On the other hand, the ANP managed to win three seats in the Balochistan Assembly, for the first time in history. The total number of votes polled to the party in the province also increased from 37,000 in 2002 to 115,000 in 2008. Moreover, for the first time in the history of the Balochistan Assembly, elected members of the ANP took oath as MPAs in Pashto.

The ANP supported the PPP in Balochistan at a time when it was not sure whether the latter would be able to form the provincial government. As the ANP is part of the provincial government now, it is better placed to solve the problems of Pakhtoons. As a result of contesting the elections, we are now at least in a position to discuss the issues of Pakhtoons in the Balochistan assembly.

TNS: As part of the provincial government in Balochistan, what are the ANP's priorities?

ZKA: The ANP's first priority is to restore peace in the region, because the overall standard of living cannot be improved without ensuring peace. The party's second priority is to improve educational and health facilities, so that the children can get quality education and health services are available to the people at their doorsteps. Most importantly, as I mentioned earlier, agriculture is the backbone of the Pakhtoon economy in Balochistan. The level of underground water has dropped considerably due to long years of drought, thus there is a great need for building small dams to irrigate agricultural fields and to balance the water level. The ANP will co-ordinate with all relevant government departments to take practical steps in this regard.

TNS: You are your views on provincial autonomy?

ZKA: The ANP believes in provincial autonomy, as enshrined in the 1973 Constitution of Pakistan. The party advocates that it is the constitutional right of all oppressed nations to enjoy autonomy. The demand for provincial autonomy is not a new one -- all prominent nationalist leaders got united for this cause from the NAP's platform also. The only difference between then and now is that when nationalist leaders demanded provincial autonomy from the NAP's platform back in the 1960s and the 1970s, they were labelled as traitors; while currently all the major political parties are also supporting this demand of nationalists. It needs to be emphasised that provincial autonomy does not entail dividing the country into many parts; rather it is about strengthening the federation. What's the harm in allowing the provinces to use their resources for the development of people?

The people of Balochistan have the right to have reservations about Gwadar. We will welcome anyone to Gwadar and other parts of Balochistan to partner with us in the development process, but we are against the localisation of other newcomers because it will affect the future power structure in the province. If it is now being feared that the new settlements in Gwadar will put in danger the rights of the local population. This needs to be taken seriously. Similarly, unless a significant portion of the income from Gwadar or any other mega project is not given to the province, there will be struggles against such injustices. I think that provincial autonomy is the only solution to the current unrest in Pakistan.

TNS: The Balochistan government has recently withdrawn all cases against Sardar Akhtar Mengal. Do you think that it is part of any reconciliation process?

ZKA: The ANP welcomes the withdrawal of cases against Sardar Akhtar Mengal. Asfandyar Wali Khan was one of the parliamentarians who talked about the release of Akhtar Mengal in the first session of the new National Assembly. We also passed resolutions in the Balochistan Assembly about Akhtar Mengal's release and the issue of forced disappearances in the province. The government should not only release Akhtar Mengal, but should also solve the problem of forced disappearances as part of the national reconciliation process.

 

Do we need madrassas?

Since the Lal Masjid incident last year, the issue of religious schools has come to the forefront of political debate

 

By Syed Nadir El-Edroos

In the past, one thought of radical madrassas (seminaries) as being located in the tribal regions bordering Afghanistan, having little connection with the rest of the country. Patronised by the state's security apparatus since the 1980s, madrassas today are equated with terrorism, extremism and intolerance. Both foreign and domestic actors have contributed to the growth of madrassas in the last two decades, so much so that their wide appeal has nothing to do with either 'jihad' or 'cleansing the society of Western evils', as is commonly believed. Instead, the state's failure in providing the citizens with access to basic social services is the major reason behind the unchecked growth of madrassas in the country.

Madrassas are essentially schools for religious learning. With a history of more than a thousand years, there is little evidence to suggest that they were ever meant to be solely religious institutions, disconnected from the rest of the society. According to Islamic tradition, the attainment of knowledge, whether worldly or spiritual, was to be encouraged. Madrassas, therefore, supplemented and fostered all forms of learning. In South Asia, madrassas have a long and vibrant history. After the advent of Islam in the region, they became centres of religious learning.

The onset of British colonial rule forced madrassas to look inwards, rejecting Western education altogether. Attempts at developing a unified curriculum, such as the Dars-i-Nizamiya, initially intended to bridge the gap between the old and the modern, were later diverted to suit a more religious outlook of the world. Thus, the split between religious and rational knowledge may trace its roots back to the nineteenth century, while the popular perception that the radicalisation of madrassas is a relatively recent affair may not necessarily be true.

It was in the early 1980s that the Pakistani government aggressively encouraged madrassas; the main reason being to aid recruitment of 'mujahedeen' to fight the Russians. However, it was also recognised that the state had failed to provide education to the masses and madrassas were encouraged to fill the gap. It was hoped that schools attached to mosques would help to provide a combination of Islamic and primary education.

Madrassas are most popular in areas facing acute underdevelopment. Along with basic education, they also provide boarding and lodging facilities, which at the very least provide the parents with economic incentives to enrol their children. Public educational institutions lack both in quality and quantity, with rampant teacher absenteeism. Several studies have shown that teacher absenteeism is one of the main reasons why parents hesitate to send there children to government schools. The other major problems include lack of infrastructure, clean drinking water, sanitation, books, etc. On the other hand, madrassas do no face these problems and in most cases are able to provide the requisite infrastructure required for any house of learning.

The co-option of madrassas as centres for indoctrination remains a serious threat. Indoctrination along the lines of sectarianism or anti-modernism has seemingly become a defining feature of most madrassas. They can and should be encouraged to play an important role in imparting education; however, this should not suggest that they should substitute the state. In short, madrassas should at the most complement the provision of education. The failure of the state to provide learning has created two distinct streams of education: madrassas and private schools.

Private education remains beyond the reach of most citizens and madrassas are the only other viable choice. However, this is but a minor problem. The real problem created by such a state of affairs is the mutual mistrust generated. Madrassa students view the students of private schools as Westernised and un-Islamically liberal, while private school students view their madrassa counterparts as fundamentalists. The creation of such a division only serves to fuel conflict between the two sides, and the divide continues to widen.

It is difficult to identify the exact time when madrassas became violent. A major contribution to the militancy rampant in madrassas today was made in the 1980s. A study conducted by Patrick Belton shows how textbooks developed at the University of Nebraska-Omaha and published by the United States Agency for International Development (USAID) were used to encourage and justify the 'holy war' against the Soviets. These books were so radical that they were used by the Taliban in madrassas under their rule. What is obvious now is that madrassas faced interference from many external forces, ranging from the Pakistani government to the US government and al-Qaeda, which wanted them to serve their political interests. Any state policy aimed at reforming madrassas or developing them along more peaceful lines requires an acknowledgment of the factors that have contributed to their evolution.

First and foremost, it is important not to lump all madrassas together. Though there is little agreement on their actual number, there are at least thousands of madrassas in operation in Pakistan. Each madrassa is unique in relation to the context within which it functions -- the culture, values and social norms of the region. It is an oversimplification to brand all madrassa students as Muslims and develop a uniform policy for madrassas across the country.

Second, the government should try to place madrassas within their communities. Currently, many madrassas are totally detached from their communities. For example, the madrassas in Islamabad mostly comprise students from remote areas. Madrassas should be encouraged in relation to their position in a community. Greater interaction with the community would help to ensure accountability of madrassas. Those linked with the society would be encouraged to reform through communal pressure, which would be evolutionary, rather than state-sponsored reforms that are seemingly imposed from above at the behest of foreign powers.

Finally, and most importantly, the government must reform itself to improve provision of social services to the masses. Several studies have shown that while madrassas remain popular due to the economic background of students, most families would rather send their children to regular schools and supplement there education with religious education on a complementary basis. Improving state services is the only way to create competition for madrassas among the poorest of the poor. Importantly, the role of senior ulema and religious administrators is often neglected in the reform process.

Reforms at the moment have remained largely unsuccessful due to a combination of factors detailed above. An important reason, though often not mentioned, is that in the Deobandi tradition, madrassas have always sought to remain independent of the state. The madrassa reform policy funded by the US government remains controversial, as critics view it as an attack on Islamic institutions. Hoping for reform from the top-down is unrealistic, especially in complex religio-political institutions such as madrassas.

The position of madrassas remains controversial, as they have become a centre with multiple means and ends. They educate, indoctrinate, provide sustenance and supposedly encourage terrorism. Madrassas are likely to remain a prominent part of the Pakistani society. For any policy to succeed, the state and madrassas themselves need to clearly identify their aspirations as institutions. This would help in allocating resources and would also provide direction to the reform process. Moreover, the excesses of the past must be recognised and incorporated into the reform process.

 

 

 

special

report

Averting crises

The new government would have to do something out of the world to provide any relief to the masses

 

By Dr Noman Ahmed

As the new government took charge of the country, it found itself surrounded by many crises of chronic nature. The carry-over wheat crisis has affected a vast majority of the population in the most serious manner. With the retail prices of flour reaching Rs 35 per kg in some areas, the common people are finding it hard to survive. Other food commodities have also experienced a supplementary price hike because of the transfer of peripheral consumption load after the wheat shortage. The global increase in oil prices could no longer be contained by the new government. In less than a month, therefore, petroleum products have experienced an increase of more than Rs 15 per litre.

Consequently, the cost of almost all the daily use commodities has escalated. People are finding it difficult to commute from their places of residence to work, due to the rising fares. Electricity is another essential service that is conspicuous by its precarious access. Exponentially rising demand has already put an extraordinary load on the dwindling production potential and distribution companies. From domestic consumers to commercial and industrial users, the level of service across the country has failed to scale up to the desired capacity. As per the statements and review of power generation statistics, no respite is likely to follow in the near future.

Besides these main bones of contention, there are perpetual issues of poor governance, and diminishing capacity of the administration to maintain law and order. Other crises that keep resurfacing are that of milk in Karachi of drinking water in other parts of the country. The new government has shifted the entire blame on its predecessors. This may be partly true, but there are deeper issues that have simmered for long and must be addressed without delay.

One of the crucial issues is our settlement pattern. Our cities have grown in a haywire manner. This growth is mostly sprawling in nature, which renders these settlements entirely inefficient. The average number of people living per acre in Pakistani cities is 160-180. This factor alone causes serious repercussions on the overall performance of people and the city itself. High capital and operating cost of infrastructure, inefficient use of urban infrastructure, weak threshold for a public transport system and unnecessary utilisation of very precious urban (and even agricultural) land are some outcomes. Conversion of land is entirely unregulated, be it Karachi, Lahore, Islamabad, Quetta or Murree.

The loss of fertile farm land to haywire urban developments is fallout of unregulated settlement patterns. Examples of outskirts of Lahore, Faisalabad and many other cities in Punjab can be cited in this regard. It is estimated that about 1,000 hectares of precious farmland is occupied annually under dubious housing and urban development schemes. In Karachi, the coastal belt is under constant threat of transformation into high density, high-rise development of outlandish nature. The recently launched real estate developments have also acutely affected subsistence fisherfolk.

Various studies show that about 30 million people in Pakistan belong to middle- and upper-income groups. These classes have evolved into a high consumerist clientelle, with demands similar to those in developed countries. The dilemma is that the country does not have the means to support high-consumption lifestyles. Cosy residences with accessories -- such as plush lawns and swimming pools; motor cars and fancy vehicles; exotic malls and eateries; holiday resorts; and club houses and golf courses -- are some of the standard requirements. Scarcity of basic resources and urban services, and technologies for supporting high lifestyles are impediments in the fulfillment of these wild desires.

But the pressure to make the most of available proportion of resources creates crucial imbalances. For instance, Karachi accounts for 1.7 million vehicles. Limited road space, poor traffic management and uneven land use renders the performance of most of these vehicles ineffective. In the wake of soaring fuel prices, there is likelihood of some reduction in the work trips generated by these cars and motorcycles. The city district government of Karachi has not been able to increase the number of buses and mini-buses to the level of minimum threshold. Unless mobility and locational disadvantages are not removed, neither the middle nor the lower middle classes will be able to effectively survive. The cities generate sewerage and solid waste amounting to millions of gallons and tonnes respectively. However, efficient disposal and utility is yet to be found. Such deficient scenarios are likely to brew the kinds of crises faced by us.

High-grade lifestyles demand befitting technological solutions. There is no harm in dwelling in air-conditioned environments or vehicles. But it can only make sense when appropriate means are created for making it happen. We possess serious deficiencies with regard to city and regional planning, project preparation and execution, and project implementation and operation. The road and highway infrastructure is an example. Soon after completion, the maintenance begins due to wear and tear. Thus the expected benefits fail to accrue despite hefty expenditures. Capacity to introduce time-tested scientific solutions is hardly available.

Biogas-based power generation is another example. Pakistan is among the top five milk-producing countries in the world. But not a single megawatt of electricity is generated nor fertiliser produced from the millions of tonnes of cow dung produced every day. The Alternative Energy Development Board began a joint venture in Landhi Cattle Colony, Karachi, with the assistance of New Zealand Aid, but it has yet to begin production despite lapse of many months. Cogeneration is another technology that transforms heat from solid waste-based incinerators into electricity. Our power-starved cities can greatly benefit from this simple technology. What we require is scientific project designs, execution and management.

Food production for urban dwellers is no more the task of hinterland alone. The world of today has switched to urban agriculture as a sustainable choice. This accounts for uninterrupted supplies of milk, meat, vegetables and fruits. The methods developed so far have provided solutions to a variety of climatic / soil combinations. Many cities in Latin American and South East Asia have resorted to this effective approach. It must be taken into account that the world is facing a price upsurge of agro-commodities, and the experts have predicted a likelihood of a continuous rise in this trend.

In this backdrop, the urban agriculture can surely become a useful employment choice for the idle workforce. The basic pre-requisites that need to be fulfilled include a threshold analysis of available land parcels, waste lands and sub-urban lands; hydro-geological analysis to ascertain ground water resources; recycling of urban waste water; cropping studies; and need analysis for consumption. Pakistan has more than 500 cities. If this approach is incrementally applied in selected locations, it will surely lead to positive results.

A few types of mega projects are vital for our large- and medium-sized cities. Creation of bus rapid transit system with enhanced efficiency, fare incentives and proportional level of comfort is a top priority. The government must facilitate the reduction in work trips through cars and motorcycles by public transport. In order to take stakeholders on board, the auto manufacturers may be given incentives to participate in this national cause. Improved quality of school buses can greatly reduce private car trips to and from schools. For energy conservation, construction and management techniques can be appropriately applied. It is demonstrated that by scientific design and insulation methods, about 35 per cent of electricity consumption can be avoided. Whereas new plants can bolster the energy sector, savings and conservation can always have a long-lasting effect.




The ultimate choice

Corruption seems to be the only way for the poor to survive in these gruelling times

 

By Mohammad Saleem Shahid

Owing to the spiralling price-hike, indulging in corrupt practices remains the ultimate choice for many of the poor segments of society. The unabated hike in the prices of daily-use items -- such as wheat, flour, sugar, rice, vegetables, ghee and cooking oil -- has broken their back. These oppressed people are expressing their resentment at the unchecked price-hike and are frustrated to the extent that they are committing suicides. The other contributing factors to this phenomenon are growing poverty and unemployment. Only in the last few months, as much as 40-80 per cent increase has been recorded in the prices of edible goods and transport fares, while the rich are getting richer following the 'pro-poor' policies of the previous government.

The sky-rocketing price hike has paved the way for the people to indulge in corrupt practices. Banks are making hefty profits through heavily marked-up consumer banking, which they should pass on to the depositors by increasing the rate of return on deposits. The increasing inflation is ultimately affecting the poor. Price-hike does not only hurt the poor masses, but also brings bad name to the government. The unusual price-hike is in itself a matter of corruption.

The prices of ghee, cooking oil and wheat / flour, the primary staple food, have been rising continuously for the last six months. There are reasons for the price hike -- hoarding and smuggling of the commodities to neighbouring countries, particularly Afghanistan. A buying spree and a frustration gripped the common people and long queues emerged in front of the utility stores to get the wheat / flour, ghee and cooking oil at subsidised rates.

Media reports suggest that inflation, measured through the Sensitive Price Index (SPI), surged by 22.71 per cent in the week ending April 17 over the corresponding period in the last year, owing to unhindered increase in the prices of essential commodities. The data compiled by the Federal Bureau of Statistics (FBS) shows that SPI inflation, sky-rocketing since the adjustment of oil prices in March, surged to 22.71 per cent on April 17 from 12.16 per cent on February 28, making life harder for the low-income groups. The purchasing power of low-income group squeezed by the last increase is yet to bear the impact of first adjustment made by the new government after increasing oil prices in the international market.

The current ruling coalition has taken up the issue and is blaming the previous government for its failure to control the prices. Inflation is one of the major challenges for the Pakistan People's Party (PPP)-led coalition government along with trade, current and fiscal deficits. The State Bank of Pakistan (SBP) anticipates that inflation would persist and magnify in the months ahead. It is yet to be seen as to how the new government will tackle the uphill task it has inherited.

Ironically, the government has failed to arrest price-hike, inflation and corruption; maintain law and order; and provide good governance, justice, employment and security to the people. School and college fees and prices of textbooks and stationery items have also doubled in the recent past. Public transport fares have been increased by 40-70 per cent, while gradual devaluation of the rupee has cut down its purchasing power by 20 per cent. Overall prices of essential commodities have risen by almost 80 per cent. Lower incomes and enhanced taxation is an additional burden on the poor.

The government functionaries -- ministers, MNAs, MPAs and bureaucrats -- cannot comprehend the misery that rising prices are causing to the poor and middle-class people, because the national exchequer bears all their expenses and, in addition, they own properties worth billions besides huge bank balances. They just do not belong to the common people. When a poor man fails to provide two meals to his family members, get proper medical treatment for them, is unable to pay their school / college fees or get them new clothes for Eid, he feels fed up with life and thinks of committing suicide. The answer to hunger and employment is writ large on his face, saying embrace death if you do not find bread.

The people working in the private sector are enjoying a handsome salary package with fringe benefits, whereas government servants can hardly make both ends meet. Though the previous regime had constituted a Pay and Pension Committee to compensate about 2.9 million government servants, yet the task is a challenging one in the wake of the widening budget deficit. The previous government had granted an 'ad-hoc relief', keeping in view the increasing price-hike at that time, but what the government employees actually had been demanding was a revision in their basic pay scales.

The actual benefit received by government servants in BPS 1-16 was not more than Rs 200-900 in terms of dearness allowance. The problem arises when the government expects from its employees a high proficiency in delivering services. How can people perform better if their social life is disturbed by the imbalance between their actual take-home salaries and their needs? It is a natural phenomenon that when people fail to earn according to their needs, they look for other choices to make extra money. They may either opt for part-time jobs or look for safe ways of corruption. One cannot perform his duties efficiently if his pocket does not allow him to do so.

Pensioners are perhaps the worst victims of the recent price-hike. In developed countries, pensioners are given many incentives, such as insurance policies, social protection, old-age funds, etc. In South Asia, pensioners are considered as a burden on the national kitty and are discarded from social life. In Pakistan, where government provides no social security to the pensioners in their old age, the National Saving Scheme (NSS) remains the only hope for them -- they could deposit their gratuity after retirement and get a reasonable profit on it. But in the last couple of years, profit rates on the NSS have been drastically reduced, thereby depriving the pensioners of their last ray of hope.

(The writer is an Islamabad-based freelance journalist.

Email:saleemshahid@journalist.com)



The real challenge

International organisations are issuing warnings about the repercussions of food crisis in countries such as Pakistan

 

By Sikandar Ali Hullio

"Providing two meals to the family is getting unmanageable, as the prices have soared out of our reach," laments middle-aged Zareen Khan, standing in a queue at a Utility Store in a lower-middle class locality. Another aged lady, Sabiha, with dimmed glasses, also had a similar but more depressing complaint: "Initially, only atta was out of stock. Now it is the turn of other items." These are just two pictures of the chronic atta, rather food, crisis from the very heart of Islamabad.

This crisis is getting worse throughout the country, amid allegations that black-marketers are working in collusion with top government officials. "The new government has fixed the rate of wheat at Rs 620 per 40 kg, but this should have been done in September last year," comments a top official of the Ministry of Food, Agriculture and Livestock (Minfal) on condition of anonymity. "The new government must initiate an inquiry into the Rs 16 billion wheat scandal," he demands.

The food, mainly atta, crisis in Pakistan has been inherited by the current government from the previous government of Shaukat Aziz, who silently slipped from the country even before the recent elections. He is often blamed for playing up wheat production figures -- initially exporting wheat to the neighbouring countries and then importing the same at much higher rates.

This went on unchecked till to the ongoing crisis, coupled with increasing petroleum prices, hit the country and its people really hard. In this context, the International Fund for Agricultural Development warned last week: "The households in Pakistan are devoting a larger proportion of resources to food and cutting back on consumption, with the number of food-insecure people increasing from 60 million to 77 million in 2007-08, resulting in increased levels of malnutrition."

Another report, released recently by the World Bank, says: "The prices of rice, wheat, corn, cooking oil, milk and other foodstuffs have all risen sharply in recent months, sparking violent protests in many countries. The global wheat prices jumped over 181 per cent over the past 36 months to February, with overall food prices up 83 per cent. In Pakistan and Thailand, troops have been deployed to prevent the seizure of food, especially rice, from fields and warehouses." A similar warning was also issued by one of top humanitarian officials of the United Nations at a conference held in Dubai earlier this month: "Continually rising food prices could cause unrest and political instability worldwide." His comments came after two days of rioting in Egypt over economic conditions, where the food prices have doubled in the past year.

Despite these latest warnings by international organisations, the rights-based food activists seriously question their validity -- there is enough food to feed the world's unfed poor, which is either being mismanaged or black-marketed. "Globally, the food politics is monopolised by the fast-growing international food chains. The ultimate objective of investments by developed countries in developing countries, led by the World Bank in the sector of agriculture, is to gain control over the latter's food resources," explains Mustafa Talpur, a food-rights activist.

Food was first declared a right in the UN's 1948 Universal Declaration of Human Rights. By 2004, the UN's Food and Agriculture Organisation (FAO) had adopted "voluntary guidelines for the progressive realisation of the right to adequate food", with 187 governments as signatories. Twenty-two countries, including Pakistan, have enshrined the right to food in their constitutions, either for all citizens or specifically for children. Though the right to food has been recognised and included in the 1973 Constitution, the poor hardly know about it.

Despite the global food politics and the latest warnings by international organisations, the case of Pakistan is different, mainly because of the dominance of agriculture in its economy. According to Minfal, agriculture accounts for 20.9 per cent of the gross domestic product (GDP) and employs 43.4 per cent of the total workforce, mainly in rural areas.

The wheat production of 23.295 million tonnes in 2006-07 was the highest-ever in the country's history, registering an increase of 9.5 per cent over 2005-06. This is going to cross the limit of 24.045 million tonnes, according to a recent report of the State Bank of Pakistan (SBP). Unfortunately, despite the almost 10 per cent increase in the production of wheat, the country faced an acute shortage of the commodity. In addition, the government has already announced its plans of importing more wheat this year.

The comparison of wheat production in Pakistan with the neighbouring countries also offers a bleak picture. India has recently relaxed 36 per cent duty on the export of wheat. Afghanistan has warned about the impending starvation of four million people due to the shortage of wheat. Iran also imports wheat, but even the baked food is subsidised there. Similarly, the Central Asian Republics have been chronically in the deficit of wheat production.

As a result, the Pakistani atta is smuggled to meet the food needs of these countries. Alarmingly, the global production of food items dropped by 19 per cent last year. Among these items, the global production of wheat dropped by as much as 36 per cent. Moreover, only in the last 10 months, the prices of food items in the international market have increased by up to 45 per cent, thus further aggravating the global food crisis.

In this backdrop -- and coupled with the local ineptitude, corruption and regional black-marketing -- the atta crisis in Pakistan could pose serious challenges if not checked timely. It is also a challenge for the current PPP-led ruling coalition to ensure that the people at least get food items at affordable prices. Moreover, with the lifting of ban on trade unions by the new government, Minfal must also plan unionisation of the agricultural sector in the country, for the protection of rights of food producers, while at the same time creating an equitable equation with the producers, marketers, buyers and regulators for the safe provision and security of food.

(The writer is an Islamabad-based freelance writer and works with an international organisation.

Email: sikandarhullio@yahoo.com)

 

 

inequality

For the rich only

Income and wealth

disparities galore in our society

 

By Huzaima Bukhari and Dr Ikramul Haq

According to a study conducted by the Centre for Research on Poverty and Income Distribution (CRPID), 63 per cent of poor in Pakistan fall in the category of 'transitory poor'. The State Bank of Pakistan (SBP) has also admitted in its annual reports that the standard definition of 'transitory poor' includes those households that are below the poverty line for most of the time, but not always, during a defined period.

The remaining 32 per cent and five per cent of the population that subsist below the poverty line are 'chronic' and 'extremely poor', respectively. 'Chronic' and 'extremely' poor are those households that are below the poverty line all the time during a defined period. Similarly, on the other side, 13 per cent and 21 per cent of total non-poor (above the poverty line) are classified as 'transitory vulnerable' and 'transitory non-poor', respectively.

This portrays an alarming situation, as more and more people are moving from the 'transitory' category to the 'chronic category', courtesy inequitable distribution of income and wealth, monopoly over assets and regressive tax policies. Rulers in Pakistan have never showed any commitment to economic and social justice as their primary political goal. One wonders if the new government is aware of this state of affairs and is devising some practical ways to help improve the situation.

Political economy is the theory of wealth, and of how wealth is created and shared within the society. Its key concepts are production, distribution, exchange and consumption. Historically, political economy is a response to the rise of capitalism and capitalist society. Its concepts are refined, redefined and added to as capitalism progresses from the mercantile or merchant capitalism of the sixteenth and seventeenth centuries to the agricultural and manufacturing capitalism of the eighteenth century; to the industrial capitalism of the nineteenth century to the rise of a unipolar world power in the twentieth century; to the quest for monopolies in the twenty-first century.

In the last five years, unfortunately, no one has conducted a comprehensive research to determine all the dimensions of the rich-poor divide in Pakistan. Various studies, wherein inequality-measuring criteria like the Lorenz Curve and the Gini Coefficient have been used, however, provide estimates of inequality in Pakistan. According to A R Kemal, studies on income inequality in Pakistan show different estimates because of the following five important factors:

One, different studies use different data sets -- some are based on Household Income and Expenditure Surveys, others make use of income tax data and still others splice the two sets of data. Two, while some studies consider inequalities in income, others consider inequalities in the consumption expenditures. Three, while some studies are done for Pakistan as a whole, others examine income inequalities in both the rural and urban areas. Four, while some studies report income inequalities across households, others report inequalities across population or earners. Five, some researchers classify data by deciles prior to the estimation of the Gini Coefficient; while others employ the income intervals that are not uniform.

All studies, however, confirm that income inequality in 2000-2007 was more than in any other time period in the history of Pakistan. The poorest 30 per cent lost their share, while the richest 20 per cent gained in both the urban and rural areas during the Musharraf-Shaukat era. The Gini Coefficient is named after Corrado Gini, an Italian economist who introduced it in 1912. The Gini Coefficient is derived from a statistical formula, and expresses the degree of evenness or unevenness of any set of numbers as a number between 0 and 1.

A Gini Coefficient of 0 would indicate equal income for all earners. A Gini Coefficient of 1 would mean that one person had all the income and nobody else had any. Thus, a lower Gini Coefficient indicates more equitable distribution of wealth in a society, while higher a Gini Coefficient means that wealth is concentrated in the hands of a few people. Sometimes, the Gini Coefficient is multiplied by 100 and expressed as a percentage between 0 and 100 ('Gini Index').

According to a US State Department report, released in 2006, the Gini Coefficient for Pakistan is 68.0. According to the same report, the 'Gini Index' for Japan is 14.9, for Sweden is 21.0, for Switzerland is 21.1, for Germany is 22.3, for the United Kingdom is 23.0, for Canada is 23.1, for France is 32.7, for Iran is 41.0, for the United States is 46.6, for Argentina is 52.2, for Mexico is 54.6, for South Africa is 57.8 and for Namibia is 70.7. According to another United Nations report, from 1987 to 1999, the Gini Coefficient for Pakistan was in the range of 0.33 to 0.43, but it increased to 0.68 in 2006, yet the previous government kept on harping the tune of a 'wonderful' economic turnaround.

Income inequalities in Pakistan, as elsewhere, largely reflect inequalities in the distribution of assets. Since the poor have virtually no assets and the lower middle-class owns very few assets, income distribution is skewed. Distribution of state land; development of plots and houses for the common people at affordable rates; the sale of shares of public enterprises in smaller lots; human resource development; and credit to micro-, small- and medium-enterprises are some of the ways that might help the poor in acquiring assets. However, the role of various official bodies set up by federal and provincial governments in this regard has been poor to say the least.

The income inequality in Pakistan has increased drastically in the last eight years and the trend continues unabated despite all claims of poverty reduction. The main factors that govern personal income distribution include distribution of assets; functional income distribution; transfers from other households, government and rest of the world; and tax and expenditure structure of the government.

However, the single most devastating factor for increased income and wealth inequalities in Pakistan remains the regressive tax system. Incidence of tax on the poor in the last 10 years has increased substantially (by about 35 per cent), while the rich are paying almost no direct tax on their colossal income and wealth. Study of Pakistan from this political economy perspective is very crucial, as our society is fast adopting dehumanising characteristics. We are faced with economic disparities, shortage of food and lack of essentials services. The great divide between the rich and the poor in today's Pakistan is assuming alarming proportions, and may eventually lead to a civil war if preventive measures are not adopted immediately.

(The writers are tax advisers and legal historians. They also teach at LUMS).


 

On state's expense

Subsidy is given to political parties in one form or the other in many countries of the world

 

By Alauddin Masood

For their multifarious roles, political parties require funds on a sustained basis. Till the 1950s, they raised funds for party organisation / functioning through membership fees and donations. In 1954, Costa Rica initiated a system of public funding of political parties and candidates. Argentina followed suit next year and Germany in 1959. Thereafter, Austria, Canada, France, Italy, the United Kingdom, the United States, Scandinavian countries, Hungary, India, Japan, South Korea and Thailand also started giving subsidy to political parties in one form or the other.

The state funding started on the premise that if some public funding / subsidy was not provided to political parties, their organisation could falter, public communication could hamper and the money for electioneering could be difficult to procure. Now, many countries fund parties, political groups / think-tanks / foundations because funds raised by the parties from private sources are insufficient to meet their monetary needs. Generally, governments support political parties through two modes of funding: direct funding and indirect financing

Direct funding

For cash financing, there are usually three methods. The first is assistance in proportion to public support that a party enjoys. Among established democracies, Germany has the distinction to be the first to adopt this method. However, according to German Law on Political Parties, state funds must not exceed the annual income generated by a political party from membership fees, donations and other revenues. Further, this law has set a maximum limit for state funds to be 133 million euros from the year 2002.

German political parties can accept donations from both individuals and corporate bodies, with certain restrictions and disclosure requirements. For example, they may accept cash donations of up to 1,000 euros; foreigners can donate up to 1,000 euros, and political parties can accept donations from German / European Union citizens or an enterprise whose 50 per cent shares are owned by German / EU citizens. However, donations cannot be accepted from political foundations, parliamentary groups, public corporations and non-profit organisations / charities.

Though there is no legal limit for contributions by individuals / corporations, tax deductions apply for individuals who donate up to 3,300 euros per annum. Donations in excess of 10,000 euros given to a party, as per the law, must be recorded with names / addresses of donors and the amount. Single donations exceeding 50,000 euros have to be reported to the Bundestag (the parliament's Lower House) president, who publishes it, stating donor's name / address, as a parliamentary paper.

The other method is allocating an equal sum of money to each party or candidate regardless of electoral / parliamentary strength. Thailand has adopted this system and provides equal funding to parties during and between election periods. The third method is a combination of the principles of proportionate funding and equal funding. For example, in Hungary 25 per cent of the state money is equally distributed among all parties that obtain a seat in the parliament, while the remaining 75 per cent is allocated on the basis of actual votes obtained by a party in elections.

Indirect financing

In this mode, state funding is restricted to providing subsidies in kind during the election period. As in India and the UK, following this principle states usually provide free air time on radio / television, and give concession in postal tariff and / or tax exemptions. In India, since 1998, candidates of parties recognised as national / state parties under Elections Symbols (Reservation and Allotment) Order 1968, get free time on state radio and television during election campaigns. A maximum of two panel discussions / debates are also organised on Doordarshan and All India Radio, and each nationally recognised party can nominate one representative to such programmes.

Private funding through membership fees / donations, therefore, remains the main source of revenue for Indian political parties. However, individual donations exceeding 10,000 Indian rupees must be recorded along with names / addresses of contributors. Under Section 293A of the Companies Act 1956, Indian companies can make donations to parties provided their annual donation does not exceed five per cent of the average net profits during the last three years; these are approved by the company's board, and are also disclosed in its profit and loss account. However, political parties cannot accept foreign contributions unless permitted by the government.

Likewise, in the UK, parties are vastly run on donations from business organisations, labour unions and wealthy individuals. However, during elections, the government provides assistance in the shape of free air time, free postage and free meeting rooms to candidates. In addition, it gives a grant of two million pounds to recognised political parties for policy research. In the US, parties are funded mostly through private donations, though there are no membership dues for members. However, during election, the parties receive public grants for national party conventions to choose presidential candidate.

Since the 1976 elections, eligible candidates for the presidential elections are using public funds in primary / general election campaigns; while major parties are using public funds to pay for their nominating conventions. However, candidates receiving public funding must agree to limits on campaign funding as laid down by the Federal Election Commission Act and endorsed by the Supreme Court. If they do not wish to receive state funding, presidential candidates can spend as much as they want. In addition, in a presidential election, both Republican and Democratic candidates receive a grant of $ 20 million plus cost-of-living-adjustment to cover their campaign expenses.

Funding of foundations

Both in Germany and the US, political parties have foundations affiliated with the party in terms of ideology / programmes, but independent in organisation, management, funding and decisions. Largely state-financed, the foundations provide professional / sustainable education in social policy and democracy. In Germany, the foundations get funds in keeping with the strength of the political party to which they are affiliated. The two major political foundations in the US, namely the National Democratic Institute (NDI) and the International Republican Institute (IRI), receive state grants. Both the foundations aim at political party development, governance, citizen participation and election processes.

The situation in Pakistan

The success of political systems, in particular of its parliamentary form, largely depends on strong, organised and vibrant political parties. Unfortunately, most of the political parties in Pakistan are weak in internal democracy, serving as power bases of the elite. There is a lack of communication between party leaders, workers and members. The relative weakness of party branches results in candidates being chosen by the central leadership according to wealth and influence.

Majority of the parties do not even have adequately staffed secretariats and other requisite infrastructure to foster relations with public on a sustained basis or discharge functions in party development, governance, citizen participation and election processes. Since the very bedrock -- the political parties -- is weak, the system that is built over it remains feeble. Thus, the need for public funding of political parties with a view to removing deficiencies / drawbacks and strengthening them and, in turn, the political system, to meet challenges of statecraft.

(The writer is an Islamabad-based freelance columnist.)

 

A negative phenomenon

The huge gap between the rich and the poor in our society is widening with each passing day

 

By Tahir Ali

In its essence, equality implies two things: one, no one should enjoy special privileges; and two, adequate and equal opportunities should be provided to all for their development. If this is not the case in a society, then democracy and liberty there will be nothing more than a farce. Equality does not mean that all citizens should have equal wealth; rather it means that the primary needs (food, clothing, shelter, etc) of all citizens should be satisfied before any inequality of wealth is allowed. "I have no right to cake if my neighbour, because of that right, is compelled to go without bread," as Laski beautifully puts it.

Pakistan was created to enable its citizens to lead a life free of exploitation, injustice and inequality. Considerations of economic, political and social equality for all, as well as an equitable distribution of wealth and resources, irrespective of any discrimination, were the main objectives behind the struggle for independence. But can we say that these objectives have been achieved? Have the common people been provided with even the primary needs of life as of now, let alone the secondary ones? There is a huge gap between the haves and the have-nots in our society. Those with limited sources of incomes are finding it hard to live a human-worthy life. A substantial increase in the prices of essential commodities -- such as atta, ghee, sugar, life-saving drugs, etc -- has made life even more miserable for the poor.

The new economic managers will try to make us believe that the government is unable to improve the lot of the poor because of economic constraints on account of record current account deficit, stagnant exports, increasing fiscal deficit, poor social indicators, sky-rocketing petroleum prices in the international market, energy shortage and rising inflation. But there are many who believe that successive governments and regimes have been adopting economic policies that benefit the rich only and that too at the cost of the poor.

Article 3 of the Constitution of Pakistan declares: "The state shall ensure the elimination of all forms of exploitation and the gradual fulfilment of the fundamental principle, from each according to his ability to each according to his work." And Article 37(a) says that "the state shall secure the well-being of the people, irrespective of sex, caste, creed and race, by raising their standard of living, by preventing the concentration of wealth and means of production and distribution in the hands of a few to the detriment of general interest, and by equitable adjustment of rights between employers and employees, and landlords and tenants."

But in practice, alarming inequalities are seen regarding the availability of food, housing, health, education, clothing, and security of life and property. The poor daily queue up in front of Utility Stores outlets to get cheap atta, but only a few are fortunate enough to have it. The public sector educational institutions -- where the majority of lower middle-class families get their children enrolled -- are the most neglected. Health facilities are out of the reach of the poor, while the ruling elite is entitled to free treatment abroad.

The discrimination is even more apparent in the housing sector -- while the rulers' palaces are big and consume billions from the national budget, millions of the poor have no shelter and live in extremely inhuman conditions. The law is selectively applied and while the defaulters of small loans are rounded up, the 'big fish' are benefitted through National Reconciliation Ordinance (NRO)-type laws. The ruling class has also always escaped the clutches of the law because of the impunity provided to it.

In the case of electricity, the common people are subjected to load-shedding and highly unjust billing, but the wealthy and the mighty do not face any such problems. An official of the Peshawar Electric Supply Company (Pesco) told The News on Sunday on condition of anonymity that while the wealthy class is responsible for most of the line losses, it is the poor that have to bear the brunt in the form of inflated electricity bills.

In the summer season, when the common people wait for power supply in the scorching heat, members of the ruling elite enjoy a continuous flow of power to run the air-conditioning plants of their palaces. Special arrangements are made even for their temporary staying points -- public meeting places, for example. The poor are practically left to themselves to have food, education, health, housing, justice and other basic necessities. while the rich and their kith and kin enjoy these facilities at the state's expenditure.

The low-cadre government employees -- who belong mostly to the poor and needy classes -- are discriminated against in all spheres of life. Their salaries are too low, as they are appointed mostly on ad hoc, contract or daily-wage basis. They have to complete 30 stages, as against 14 for the upper-cadre government employees, to get a move-over to the next scale. They still await equal opportunities for career development and higher education on the state's expenditure like the upper-cadre government employees.

Finance Minister Ishaq Dar told the Senate's Standing Committee on Finance the other day that the government will pass on the whole burden of Rs 157 billion subsidy on petroleum prices to the consumers by the end of the current financial year (June 2008). On the other hand, there is no dearth of money for the ruling elite to buy new aircraft and bullet proof cars, and to go on 'important' foreign visits.

This is in sharp contrast to what Iranian President Mahmoud Ahmadinejad is doing: he changed his personal carrier -- the president's aircraft -- to a cargo aircraft in order to save the spending from the public treasury and decided that he will be flying with the ordinary airline in the economy class. The president still lives in his old house and does not draw any salary. What a splendid example of selfless service! It is no surprise then that hundreds of thousands of people are seen in his public meetings, and his entire nation stands behind him.

The elections have taken place and new governments have been formed in the Centre as well as the four provinces, but a million dollar question is: what will the new government give to the poor in terms of financial relief and provision of basic needs? A sound welfare-oriented political system is a must to ensure that all sections of the society accrue benefits. If that is not possible, then hunger must equally be shared by all. The rulers and leaders should not live a life above the common standard. In short, benefits or hardships should be jointly and equally shared by the rulers and the ruled. There should be equality of opportunity for both of them, and rulers and leaders must not enjoy any special and preferential treatment.

 



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