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analysis first Urbanisation
after devolution relief Freedom
of press and journalistic ethics — II Ad-hoc
arrangement trade Acts
of deceit and fraud
analysis If the American government defaults, the American dollar is likely to go into free-fall, thus causing chaos not only within the US but the whole world By Aasim Sajjad Akhtar On Tuesday August 2nd, the global financial
architecture is in danger of being turned on its head. For weeks now, It is not as if the various stakeholders did not see this coming. And it is not as if the inertia within political circles can be put down to destructive partisan politics - fissures within both the Democratic and Republican parties are almost as sharp as those across the party divide. Perhaps more intriguing than anything else is the complete lack of serious critique within the intellectual mainstream - just like the Global Financial Crisis of 2007-8 before it, the impending government default is being depicted as the handiwork of a few important actors rather than a symptom of a deep structural malaise. The US government debt has soared over the past decade, in large part because of the exponential increases in defence spending since the onset of the so-called 'war on terror'. However, the multi-trillion dollar deficit precedes the administration of George W. Bush. Notwithstanding the emergence of an aggressive right-wing politics with the election of Ronald Reagan in the 1980 presidential election featuring a strong emphasis on reduction of government spending, the public debt has grown steadily since the late 1970s. Successive administrations - particularly the Republican ones - have incessantly spewed out rhetoric about the need to rationalise public expenditures, yet have been unable (or more accurately, unwilling) to cut the military-industrial complex down to size. Spending on health, education and public works has fallen, while the taxation regime has become more and more regressive. In the manner that only American governments are capable of doing, the rest of the world - and particularly third world countries - has for years been preached to about the perils of deficit spending. The international financial institutions (IFIs) - which to some are effectively instruments of American hegemony - have forced governments such as ours to adopt austerity measures in varying degrees, even while the leader of the pack has continued to spend recklessly and in complete contravention of its own stated ideological principles. Having said this, in certain cases, Washington has
encouraged spending beyond means in a manner not dissimilar to the
American 'way' because geo-strategic interests demand that such leeway be
granted. The Pakistani example stands out in this regard - we are a
country that cannot pay its electricity bills, has a spiraling external
debt burden and a failing industrial base, yet the imperatives of
'fighting terror' are such that the military-industrial I am not one who necessarily believes that deficits are bad, per se. They are, however, nothing less than a noose around a country's neck when a majority of public monies are dedicated towards non-productive ends that do nothing to improve the welfare of working people. In cases such as the US and Pakistan where ordinary people are effectively funding a bloated military-industrial complex the situation is particularly bad (obviously more so for us than for them given that we are much poorer, not a superpower and continue to be burdened by the legacies of colonial modernity). The US is, of course, a special historical case in the context of the existing capitalist world system. The reason why the spectre of August 2 hangs over the heads of (both private and public) bankers all over the world is that the American dollar is effectively the world's reserve currency. China, for example, holds more than a trillion dollars of American treasury bonds. Most third-world countries, including Pakistan, also hold American treasury bonds as liquidity of the last resort. If the American government defaults, the American dollar is likely to go into free-fall, thus causing chaos not only within the US but the whole world. Indeed, the value of the dollar relative to the other major currencies around the world has been plummeting for months now, and the continued uncertainty as the deadline date approaches is causing a great deal of anxiety on financial markets everywhere. At the end of the day, it would be a great surprise if
American lawmakers did not hammer out a last-minute settlement which pays
lip service to the need to cut government spending in years to come (while
ignoring the Crucially, it is not only in the belly of the beast that the superficiality of intellectual discourse sticks out like a sore thumb. It is telling how little comment there has been within Pakistan on the unfolding debt problem within the US and how our own problems are tied into the global political economy. It seems that we - like our neighbours next door - are currently preoccupied with our new foreign minister and her trailblasing India tour. One might argue that it is welcome relief that our myriad problems are at least temporarily taking a back seat to the American debt crisis. But this betrays a lack of understanding of what we otherwise so cheerily refer to as the 'global village'. Capitalism is a global system, and military establishments have always been a major pivot of this system. Into the 2nd decade of the 21st century, the nexus of munitions companies, expansionist states and sensationalist media outlets are slowly bankrupting the world. If this is progress then I want to have no part of it. person Considered view “The Saudis and the Iranians continue to pour in money and support to self-styled custodians of Islamic morals in Europe” By Zaman Khan Ishtiaq Ahmed, a PhD
from Stockholm University, is a Professor Emeritus of Political Science at
the same university. He is also Honorary Senior Fellow of the Institute of
South Asian Studies, National University of Singapore. Of The News on Sunday (TNS): Please tell us about your family background and education? Ishtiaq Ahmed (IA): I belong to Lahore where I was born in our ancestral house at Temple Road on February 24, 1947. My father was involved in a number of anti-colonial struggles and was incarcerated several times. The last time was just before Pakistan came into being. My mother told me that she used to take me to Lahore jail when I was a newly-born baby so that my father could see me. I studied at St Anthony’s High School, Lahore, then at FC College, Lahore, securing Honourable Mention each year and the Mehta Chuni Lal Gold medal in 1968. Then I did MA in political science from Punjab University in 1970. I secured the first class first position, but since there was a walkout from one exam and a re-examination of that paper the result of our class was declared in the supplementary exam. As a result, somebody from Government College got the gold medal though my numbers were higher than his. Later, I migrated to Sweden. I obtained a PhD from Stockholm University. My thesis was entitled: The Concept of an Islamic State: An Analysis of the Ideological Controversy in Pakistan. It was published later as a book from London, New York and Lahore. TNS: How and why did you become interested in politics/Marxism? IA: That must have been a process that evolved over many years. From my early childhood I was acutely aware of the injustices that were present in our society and that sensitivity led me to seek rational explanation of why some human beings had so much power and others were powerless, deprived and dehumanised. Marx and Engel’s’ analyses of 19th century European society seemed to be the story of our own 21st century Pakistan. TNS: Why did you choose to be an academic instead of becoming a civil servant? IA: This choice was rather easy: I had come to the conclusion that I did not want to be part of exploitative and repressive state machinery and teaching seemed to be the obvious alternative way of earning a living. Many times later in life I wondered if making such a choice was good for me because the educational system was so thoroughly distorted during General Zia’s long dictatorship and I would have suffocated in such an atmosphere had I not left for Sweden in 1973. TNS: What is the field of your research? IA: My research covers a wide and varied field: politics of religion, especially Islam, ethnicity and nationalism, human, women and minority rights and, indeed, South Asian politics, especially those of Pakistan and India. TNS: How did you become interested in Punjab? IA: That was inevitable, once you have a heart that beats for the weak, vulnerable and powerless. The story of the Punjab partition told by Krishan Chander, Saadat Hasan Manto, Rajinder Singh Bedi and scores of other fiction writers and poets make you curious to find out what happened to a Punjab that is no more and what its consequences are for our own generation and coming generations of Punjabis. TNS: Would you like to share salient features of your forthcoming book on Punjab? IA: I have presented the first chronological account of 1947, contextualising it in the cultural and political history of the Punjab and theorising the partition process through a framework of ethnic cleansing that I have propounded. I have provided abundant evidence collected from official government sources but more importantly through painstaking interviews with survivors, witnesses and even perpetrators of the crimes of committed against helpless humanity by thugs, criminals, vain politicians and partisan police and administrative and judicial officials. What I demonstrate is that no religious community — Hindu, Muslim or Sikh — was a paragon of only good or evil. TNS: What difficulties did you face during your research? IA: The greatest difficulty was to conduct field research in the two Punjabs. Doing so in the Pakistani Punjab was not a problem but you know no Pakistani is allowed to travel freely in the Indian Punjab just as no Indian can do it in the Pakistani Punjab. Fortunately, as a Swedish citizen, I could travel to East Punjab and thus overcome the logistical hurdle presented by the international border that now exists between the divided Punjab. Then, the choice of interviewee selection was not going to be easy but I solved it as I went around talking to people. I must say I received goodwill wherever I went. It confirmed my basic hunch that people wanted to talk about those traumatic days and weeks to someone and I came along just in time. The material I provide is extensive and no researcher can single-handedly manage it unless he has the madness to devote years in the search for truth. TNS: Being a Pakistani, how do you look at the Pakistani state? IA: The Pakistani state is in an acute crisis which is a product of a complex interplay between national identity, fear of real and imaginary existentialist threats posed by India, and a general corruption of the leadership willing to rent out Pakistan to foreign powers in return for money and other privileges that the ruling class can share among themselves. TNS: What are the causes of religious extremism in Pakistan? IA: It derives from both internal obsession of translating the sovereignty of God into a constitutional formula. Pakistan came into being as a confessional state and I have shown in my book on the Punjab that wild promises of making Pakistan an Islamic state were made during the 1945-46 election campaign. Such promises came to haunt Pakistan as soon as it came into being and the politicians had no intention of establishing a secular democracy. Jinnah’s August 11, 1947 speech declaring that “Hindus will cease to be Hindus and Muslims will cease to be Muslims, not in a religious sense because that is a matter of private belief, but as citizens” was not going to be an effective antidote against a mindset that had been created about the superiority of a so-called Islamic democracy or the ‘Ulema’s’ notion of an Islamic state which was anti-democratic without any confusion. TNS: Once Western educational institutions used to produce the liberal left but then during the Afghan war they produced religious extremist. Even English medium schools in Pakistan are producing fundamentalists? IA: I am not in a position to express an opinion on this matter with any authority because I have been away for too long to follow what our educational institutions are doing. I think the ideology of victim-hood that Islamism has so successfully manufactured makes some Western-educated individuals feel that they are waging liberation struggle against imperialism. That is not only ironic but also deeply tragic. TNS: How do you look at Islam bashing in Europe? IA: There has always been anti-immigration forces present in Western Europe but were marginalised until Ayatollah Khomeini began to preach worldwide Islamic revival which meant essentially preventing integration of Muslims in the host societies. The Saudi ‘Wahabis’ were not to be beaten at that game and they began to promote equally negative cultural and social values. That was the excuse for the racist and anti-immigration forces in Europe to start talking of a grand Muslim conspiracy to take over Europe through immigration and rapid population growth. Since the 9/11 terrorist attacks and later those in the UK, Spain and only last year in Stockholm, Sweden Islam-bashing thrives on the evidence that the Muslims are a veritable threat to democracy, freedom, equality of men and women and all those values that represent progress and humanism. The fact that only some very minute numbers of Muslims are involved in such extremist behavior is often forgotten because people do not calculate the threat in such terms. Stereotyping comes rather easily in such circumstances. TNS: Why Pakistanis/Asians could not assimilate in the European culture? IA: The processes of cultural assimilation are always slow. In a research article I once wrote I argued that economic integration is the easiest as it requires only the willingness to work and an employer ready to give you a job. Political integration is the next that immigrations can benefit if democracy opens the way for everyone to take part in election and contest public office. Cultural integration takes place over generations. Of all the South Asians, Pakistanis are the slowest, when Indians, Hindus and Sikhs, are more advanced because both Hindus and Sikhs are not burdened by some fixation to establish separate legal communities. Pakistanis are caught up in the fundamentalist stranglehold of not only Iranian and Saudi Islamism but also the tradition of Islamic state building at home that they carry with them wherever they go. However, by and large the younger generations are integrating even when those captured by the fundamentalist imagination remain worryingly large. TNS: How do you look at the debate on purda? IA: I am for the freedom of women and that means that ‘purdah’ in my opinion is a relic from a culture that assumed women to be private property only to be looked at by their owners. Our own mothers and sisters discarded the worst type of ‘purdah’ in the form of the tent-like ‘burqa’. Now it is being revived largely because the Saudis and also the Iranians continue to pour in money and support to self-styled custodians of Islamic morals in Europe. Most of them never work and live on doles received from the social security department or money form Saudi and Iranian regimes. The headscarf which many Muslim women use is a good midway solution but the ‘burqa’ is an odious anachronism. The French banned the headscarf only in school because they were of the opinion that minor girls do not make free choice and are coerced by men to wear such headgear. TNS: How do you look at occupation of Iraq and Afghanistan by the US? IA: In my understanding, there is a fundamental difference between the invasion and occupation of Iraq in 2003 and the attack on Afghanistan and later the presence of US and NATO troops in Afghanistan. The former was unlawful and wrong; the later was a response to a vicious terrorist attack emanating from an organisation based in Afghanistan and protected by the Taliban regime. Under international law, all states have a right to retaliate and the Americans were exercising such a right. TNS: How do to look at the Arab spring? IA: It is a promising start and we need to support the urge and aspirations of the Arabs to live in freedom and enjoy democracy. That may not be easy as the Islamist threat is always there but with proper international help and solidarity the path to democracy can be taken. It is a racist thing to say that Arabs or Muslims cannot become democratic. It is, however, morally and intellectually correct to say that they cannot become democrats as long as they are not willing to remove religion from the state and make it a matter of private belief and source of spiritual and moral values and inspiration. The road to democracy in the Arab world will be full of obstructions and the experiments can fail. Nothing in history is pre-destined. TNS: What may be the future of Libya and Syria and other Arab kingdoms? IA: I think Gaddafi will have to go, so will Bashar al-Asad, as both have been around for too long and represent a type of authoritarian modernity which has become moribund. We can only hope that their exit will not mean the coming into power of Islamist regimes. That would be a disaster.
Urbanisation after devolution Transfer of powers to the provinces raises questions about its impact on cities By Gulbaz Ali Khan Floods, earthquake, suicide attacks and ongoing war on terror have strong implications on the landscape of the country, especially the urban sprawl. The existing mismanaged urban sprawl has resulted in acute shortage of services and increase in urban population resulting in the creation of slums without basic amenities. A recent report on Asia reveals that more than 50 percent of the city population lives in slums and informal settlements. The urbanisation trend
in the world will turn the globe urban soon. By 2030, an overwhelming
majority of the Under the 18th amendment, 17 departments have been devolved to the provinces and very few subjects retained by the federal government. It put enormous responsibilities on the provinces in terms of proper planning and management of the provincial resources. The more vibrant a provincial economy will be, the more it will attract migrants from all over the country that will create pressure on the urban sprawl. Amidst such situation, it is highly important to look into the dynamics of the land or real estate market in the province. There is a need to adopt new models of development encompassing the involvement of private sector into public service delivery mechanism by promoting public-private partnership. However, there is likelihood that opportunity offered by 18th amendment will be lost if urban issues are handled through the rural mindset. Implementation of the 18th amendment clearly shows the state of affairs as conflict arises transferring ministries. Lack of vision at the provincial level will definitely affect effective handling of the transferred ministries due to lack of absorptive capacity and human resource. It has a strong bearing on the provinces and their development pattern which will also encompass the urbanisation issues at district level. Provinces have not yet developed urban policy, although efforts are made at planning and development boards to devise strategies to streamline issues at grassroot level. The significance of urban policy has gained more importance in the post devolution scenario. The government has to develop policy with a vision to create urban excellence centres across the province, focusing on intermediate cities and streamlining urban problems in large cities like Karachi. The current state of solid waste management, water and sanitation, urban transport and health and education show the inability of the governments to cope with the expected urbanization. Solid waste management is marred with financial, social, and economic constraints. The existing service delivery mechanism amidst inadequate policies demand of the provincial management to formulate the SWM policies to cope with the growing needs of urban settlers. Shortage of human and technical resources indicate requirement of investments to be pumped in to bridge these gaps. The technical machinery should be adopted while keeping in view the local environment and suitability. It is well documented that more than half of the waste goes uncollected in the cities. The vibrant CSO in the country has to play an important role for “Zero Waste” through attitudinal shift. The government has to rethink their policy as SWM services are not charged. Increased urbanisation will make it difficult for the provincial managements to develop financially sustainable services. Water and sanitation is no exception and marred with multiple problems leading to low and inefficient service delivery. Health of urbanites is going to be an issue due to lack of waste water treatment plants. Pakistan Council of Research in Water Resources (2004) conducted water quality test in 14 districts in the country and found high amount of arsenic in the water. They concluded that 83 percent of the samples are unfit for the human consumption. The technical, economic and financial constraints also vitiate the service delivery in cities. One of the experts calculated the estimated cost of US$5 billion for the replacement of old and retarded satiation system in Lahore. Think of replacing the old sanitation infrastructure in ten large cities in the country, requiring billions of dollars which seems a dream. They lack urban water policies at provincial and city level. A few departments overlap their functions. Transport is the best example to quote here as it is managed, maintained and developed by different agencies. In Lahore city alone, there are more than ten departments looking after the transportation affairs and, still, the Lahorites face acute problems. Police, district government, provincial transport authorities, national highway and many others control transport affairs in cities. Mismanagement on their part has become a norm. Erratic growth pattern during the last decade has resulted in the increase of poverty, which has now focused more on the urban poor living in slums of the cities. The achievement of Millennium Development Goals (MDGs) has become a dream for federal and provincial governments. The new development model of the country presented by apex planning body envisages cities as engine of economic growth to alleviate poverty. However, the provincial government has to draft local economic development strategies to transform the cities into growth engines. Provincial governments have to formulate “provincial urban commissions” with the mandate to gauge urbanisation trends in the provinces and suggest measures to streamline urbanisation. Secondly, the commission must also be mandated to develop SWM, WSS, transport and urban land and housing policies and help cities to devise strategies as well. Further devolution to the lower tiers of governments is a prerequisite for better management of growing urbanisation. Provincial finance commission should be announced for better resource allocation among the cities. The writer is a researcher at Sustainable Development Policy Institute in Islamabad and can be reached at gulbaz@sdpi.org Homeless and forgotten, one year on Flood affectees still live in poor By Zulfiqar Shah A group of young people are busy in preparing placards in Labour Square flood relief camp in Gulshan-e-Maymar Karachi, The slogans being inscribed on white sheets include: “build our homes”, “save us from hunger”, “we want education and health”, “fulfill your promises”, “woman want justice”, among others. The group is preparing for a protest rally to mark the
first anniversary of the last year’s devastating floods, which The rally planned in Karachi was part of a series of rallies the civil society organisations and flood affectees bring to light the state of affected population a year after floods. More than 6,000 people, affected by last year’s flood and sheltered in the Labour Square in Karachi are still unable to return to their homes due to slow rehabilitation process in their native villages. About 70,000 to 100,000 people, mainly from northern parts of Sindh, had sought refuge in the relief camps, set up by the government and private organisations in Karachi. Though a large majority has returned, estimated 15,000 to 20,000 people are still in different camps in Karachi. For those living in Labour Square camp in the vicinity of Gadap town, life is not easy as there is complete absence of civic facilities at the place with water the most sought after commodity, the situation in native villages is even worse. “If I go back what will I do in my village, there is nothing left,” says Salma Mahar, 19, residing in Labour Square camp. Taking active part in preparing placards for the protest rally, Mahar says her family, along with eight other members hailing from a small village namely Akil in Shikarpur, were rendered homeless after floods. “We were living in a katcha house, which was completely swept away by flood. We lost each and every thing. Till we have a place to live we cannot go back,” she adds. Shikarpur, the district in upper Sindh where Salma previously lived, was one of the worst-affected districts in Sindh. The district was inundated due to breaches in Thori dyke on August 7, 2011. According to local activists, rehabilitation work is very slow and would further need 2-3 years to complete. Though government and non-governmental organisations have started helping people in rebuilding homes and other infrastructure, a large number of populations still need to be reached by such initiatives. “I think only 25 percent of flood-affected
population has somehow got rehabilitated and the rest remains in very After a whole year one year after the floods, a large number of flood-affected people still wait for rehabilitation. Actual work on the ground does not seem matching tall promises made by the government. In many cases, people even feel betrayed. Take the example of those brought to Karachi with promise of land for shelter and resettlement. “Government promised to give us a plot for building a house in Karachi but the promise is yet to be materialised,” says Khuda Bux, another flood affectee from Jacobabad, now living in shattered tent on Super Highway near Sohrab Goth in Karachi. In August last year, PPP government announced its plan to give 80-yard and 120-yard residential plots to 7 million affected people in eight cities of Sindh, including Karachi and Hyderabad but one year down the road that remains a mere announcement. The government also did not fulfill its promise of payment of Rs100,000 to head of each household family, affected by floods through Watan Cards. The small number of people who got Watan Cards could be able to draw Rs20,000 as first installment. The process of that payment was also full of flaws and a large number of genuine affectees were deprived of payment. The state of a few hundreds of affected people living in tents along with Super Highway near Sohrab Goth in Karachi is a classic example of poor attitude of state officials. The people were left on their own after some initial relief work at some camps began. A large number of people could not get space in these relief camps, so they were compelled to live in open places or along Super Highway. Those living along Super Highway have spent the entire year in tents braving chilling winter and now the sizzling summer with no water, sanitation, and any other support. Urban middle class is also indifferent. Many people have termed them beggars or land grabbers. However, an objective analysis suggests that these people have no alternative. Ironically, the government not only failed to fulfill its promise of giving them residential plots in Karachi, it failed to meet even basic needs such as provision of water, which otherwise is the responsibility of state for all citizens. At Super Highway camp, over a dozen people have lost lives while crossing the busy highway in search of water. In the Labour square, small children, women, and men are humiliated while knocking the doors of people in a middle class neighborhood of Gulshan-e-Maymar in search of water. The entire process of fetching water is against human dignity, yet the government remains unconcerned. Interestingly, all those living in Labour square hailing from Jacobabad and other parts of upper Sindh are PPP voters but the party and government has completely closed its doors on them. The government even after a year has failed to chalk out any proper strategy to rehabilitate them either in their homes or in Karachi. Interaction with the affectees, now living in Karachi for over a year, reveals that the flood affectees are living in a state of complete denial. Hundreds of thousands of children do not go to schools. This state of deprivation has resulted in ignorance and complete absence of a responsive state. This situation has further damaged the level of trust between state and its citizens. “I have done intermediate and want to continue my education but there is no one to help me,” says Salma. “I have lost all hopes as we are living a pathetic life for the last one year. We have no home and no employment.” Freedom of press and journalistic ethics — II The sad truth is that today in India there is a large disconnect between the mass media and the mass reality By Justice Markandey Katju Today, India is passing through a very difficult transitional phase, between feudal agricultural society and modern industrial society. This is a very painful period as a study of European history between the 16th and 19th Centuries discloses. In this crucial period in our country’s history it is very important that the people are given full information realistically about the happenings in our country and also in the world. But is the media discharging this responsibility? What do we see on TV these days? Some channels show film stars, pop music, disco and fashion parades, astrology, or cricket. Is it not a cruel irony and an affront to our poor people that so much time (and money) is spent on showing cricket, film stars, disco dancing, pop music and astrology? What have the Indian masses, who are facing terrible economic problems, to do with cricket, film stars, fashion parades, disco, pop and astrology? Historically, the media was born as an organ of the people against feudal oppression. In Europe, the media played a major role in the transformation of feudal society to a modern one. Everyone is aware of the great role the print media played in preparing for, and during, the great British, American and French Revolutions. The only media at that
time was the print media, and this was used by great writers like
Rousseau, Voltaire, The media became a powerful tool in the hands of the people at that time because the people could not express themselves through the established organs of power since these organs were in the hands of feudal and despotic rulers. Hence, the people had to create new organs which would serve them. It is for this reason that the print media became known as the Fourth Estate. In Europe and America it represented the voice of the future, as contrasted to the feudal or despotic organs which wanted to preserve the status quo in society. In the 20th century other types of media have emerged e.g. radio, T.V., and the internet (the electronic media). What should be the role of the media? This is a matter of great importance to our country today when it is facing such massive problems of poverty, unemployment, corruption, price rise, etc. To my mind, in underdeveloped countries like India the media has a great responsibility of fighting against backward ideas like casteism and communalism, and help the people in their struggle against poverty and other social evils. Since a large section of the people is backward and ignorant it is all the more necessary that modern ideas must be brought to them and their backwardness removed so that they become part of enlightened India. The media has a great responsibility in this respect. Underdeveloped countries like India are passing through a transitional age, between feudal, agricultural society and modern, industrial society. This is a very painful and agonizing period. A study of the history of England of the 17th and 18th centuries and of France of the 18th and 19th centuries shows that the transitional period was full of turbulence, turmoil, revolutions, intellectual ferment, social churning, etc. It was only after going through this fire that modern society emerged in Europe. India is presently going through this fire. For instance, the barbaric `honour killings’ in several parts of the country of young men and women of different castes or religion who get married or wish to get married, etc. show how backward we still are, full of casteism and communalism. Our national aim must, therefore, be to get over this transitional period as quickly as possible, reducing the agony which is inevitable in this period. Our aim must be to create India as a modern, powerful, industrial state, for only then will we be able to provide for the welfare of our people and get respect in the world community. Today the real world is cruel and harsh. It respects power, not poverty or weakness. When China and Japan were poor nations they were derisively called `yellow’ races by the Western nations. Today, nobody dares to call them that as they are strong industrial nations. Similarly, if we wish our country to get respect in the comity of nations we must make it highly industrialised and prosperous. For this purpose, a powerful cultural struggle, that is, a struggle in the realm of ideas must be waged by our patriotic, modern-minded intelligentsia. This cultural struggle must be waged by combating feudal backward ideas e.g. casteism and communalism and replacing them with modern, scientific ideas among the masses. The media has an extremely important role in this cultural struggle, as already mentioned above. But is it really performing this role? No doubt the media sometimes refers to the farmers suicide in Maharashtra, the price rise, etc. but this occupies only a very small part of its coverage (may be 5 to 10 percent), while most of the coverage is given to cricket, film stars, astrology and disco dancing. The sad truth is that today in India there is a large disconnect between the mass media and the mass reality. (The speech was delivered on 4.9.2010 at the National Media Seminar 2010 at Thalassery, Kerala organised by the Barrister M.K. Nambyar Trust.) The
writer is a Judge, Supreme Court of India (to
be continued) Ad-hoc arrangement Can governance work through contracts and privatisation? By Dr Noman Ahmed Dr Kaiser Bengali, former adviser to Sindh Chief Minister criticised bureaucracy for its over-reliance on contracting enterprises. He is said to have stamped out nearly 400 schemes from the provincial development programme for their inadequacy and inappropriateness. Similarly, during July 2011, news reports about
alleged mismanagement of LNG contracts were abounding. Media On the other hand, Pakistan Railways has showed signs of paralysis. Its fuel drums ran dry only to be replete through a government’s emergency bail out to two billion rupees. Chances are that it may be made a basket case to justify its privatisation. During the past decades, successive regimes have shown an expanding tendency of running the country through contracts. With the passage of time, the typology, sectors of application, spread and scales have multiplied manifold. Whether it is a simple task of maintenance and minor repairs of a government building to the mega assignment of generating hydro-electrical power, contractors rule the roost. Governments usually come up with strong justifications in support of the policy of doling out essential tasks as contracts. Increase in private investment, reduction in government liability, promotion of free market economy, provision of goods and services at competitive prices, enhancement of local and national level entrepreneurship and spread of employment and livelihood opportunities are some reasons cited to justify the mounting numbers of contracts. But if one compares the state of affairs of everyday public life of recent past with the present times, it appears that the level of service and output has gone down. For instance, there are hundreds of private security agencies that deal with watch and ward of private and public enterprises, safety and security of installations and patrolling of designated sites. With a few exceptions, it is found that private security companies have miserably failed to live up to their expectations. A long list of shortcomings is there about their performance. Low quality human resource is inducted to carry out field duties in a bid to minimise expenditure and maximise profits. This results in the total collapse of security, inappropriate response in the wake of a threat or attack. Corruption and malpractices also mar the performance. It is alleged by many stakeholders that the license to open private security agencies cannot be obtained without greasing the palms of officials concerned. To balance hidden costs, operators try to dilute the service levels to lowest scales which result in serious lapses. Incidence of bank robberies and other crimes in the presence of security guards in major cities is a case in point. Several agencies do not investigate the social background of their employees. Many guards with criminal intentions and records have also been recruited, apparently on low salaries and tough working conditions. Thus, in some cases, the same guards turn into robbers and conveniently disappear after looting the same premises which they are appointed to secure. Absence of effective regulatory regime results in the mushrooming of dubious security companies which possess little competence to deliver. Needless to say, that maintenance of law and order cannot be contracted out to private enterprises which only connive to scale up margin of profits without any concern to the public service. Contracts to privatise various utilities, such as the power sector, have become a perpetual source of concern for ordinary people. The worsening crises of power sector in Karachi are a glaring example of the failure of governance. The whole episode has become an ugly tussle of invisible power wielders protecting their respective stakeholders without any consideration for the hapless consumers. In Pakistan, retrenchment of staff is not a workable option. Private management of KESC probably misread the writing on the wall while finalising the deal to acquire the utility. This also makes an important lesson for economic managers of the country who are preparing to offload other loss-making enterprises, corporations and utilities through conventional sale-outs. If done, they shall contribute enormous problems of governance with adverse impacts on ordinary people. Improvement of governance of contracts requires political will. The foremost step is to limit the award of contracts in respect to matters of public importance. The government will do well by creating and strengthening existing institutions by running them as autonomous outfits. Withdrawing political interference, encouraging competent professionals to join and work for such outfits; promoting concepts and approaches of self governance; are some possibilities. To test the validity, the government should pick and test this approach in any one of the corporations and then replicate the learning from experience. trade Doha Round: the best tool The main By Pradeep S Mehta One of the critical
issues in the international trading system is the Aid for Trade programme.
This aid programme is The elaborate third review conference on AFT was organised in Geneva last week. The event was impressive and attended by a large number of countries, intergovernmental and non-governmental organisations. Thanks to the WTO head, Pascal Lamy’s determination. The meeting was addressed by heads of the international lending institutions, UNDP, OECD and a large number of ministers and diplomats. Surprisingly, the head of UNCTAD was missing, though the UN Secretary General, Ban Ki Moon also addressed the conference. What was sadly not mentioned in the big meeting was that the Doha Development Agenda (DDA) by itself is the best way forward to assist the poor to trade their way out of poverty. After all, the DDA was designed to deliver development gains to all developing countries by addressing the imbalances in the Uruguay Round Agreements. Alas, the DDA calculus continues to boggle minds about its non-progress, but one never knows what lies in the future. Bob Zoellick, head of the World Bank, and former US chief trade negotiator, who launched the DDA in 2001, in his remarks at the opening session, launched a broadside against the US government for “dumbing down” the ongoing and largely-stalled Doha round of world trade talks. “The whole discussion has become very defeatist. I draw out the US, because the US should still be world leader”. Zoellick did not even spare his former boss, George W Bush, for the impasse and did not wish to appear that he was blaming Obama alone. He also criticised the emerging economies like Brazil, China, and India for being a part of the problem. “None of the major trading nations are talking ambitiously about how to lower trade barriers — particularly for the less-developed countries on which the bank’s work focuses”. Expectedly, the US reacted against the “dumbing down” criticism and as always shifted the blame to big developing countries like China and India for not doing enough. Former Indian Ambassador to the WTO, Ujal Singh Bhatia, in an electronic debate on the CUTS Trade Forum, reminded us that the Doha mandate provides for special and differential treatment to developing countries, and less than full reciprocity for developing countries. “If the US and others who played a strong role in designing the Doha mandate had reservations about the status of developing countries, they should have said so at that time. You do not change the rules when the game is coming to a close”. Be that as it may, the fireworks at the AFT event at Geneva last week have raised the ante on the DDA again. In my article on this page on May 22nd on a Plan B for Doha, I had raised several important points, but let me revisit just two of them to envision if the Plan A can be resurrected. Firstly, one does not know what the Plan B would entail. Secondly, to address the demands of the US, I had argued that for India it defies economic logic to maintain bound rates four-five times higher than the average applied rates in some farm goods. The international community have been discussing Plan A for 10 years, and are now descending to a lighter Plan B, and one does not know even if that will be a smooth road. Imagine the huge cost of the decade-long talks, and some have started linking the failure of DDA talks as something which will affect the WTO itself. This is a highly mistaken notion because countries are bound to the WTO discipline for the agreements already in force, save and except the contentious ones which need to be amended or progressed towards better balance. The main reason behind non-progress of the Doha Round of negotiations by the WTO members is that there is no clear, committed constituency behind it in most countries. Neither the political leadership nor the business is interested in concluding the DDA. On the other hand, there is a committed constituency in favour of the multilateral trading system, i.e. the WTO. Unfortunately, the latter has not strengthened the former. Now, there is a danger that lack of commitment on the former seeps into the latter. It is not necessary to equate the DDA and its positive outcomes with the vitality of the WTO. The success of the Plan B or even Plan A will depend on de-coupling of these two issues. While an early and positive outcome of the Doha Round would have strengthened the WTO, should the opposite be necessarily true? The Doha Round should be taken off WTO’s back by putting it on a track that is not organically linked to WTO’s core strengths, i.e. the dispute settlement system among others. The relevance, vitality and utility of the WTO are not wholly dependent on conducting rounds of negotiations. Is there a lack of interest on the part of business to push their governments to conclude the Doha round? Since 60 percent of trade in manufactured goods is mainly intra-industry the business appetite to get a deal on Doha is not so attractive, while most countries are vigorously pursuing non-multilateral deals. The CUTS trade forum debate addressed this issue as well, when some argued that companies need to be supported by their governments to enable smooth global supply chains. Some disagreed that this should be the only role of the government. Ujal Bhatia set it right by saying that it is not business which can be blamed for the Doha impasse, but the governments’ apathy. The challenge for the never-say-die Lamy is to cajole governments to bury their apathy and move ahead on Plan A. Only time will tell whether he would succeed like Robert Bruce of Scotland, after he re-launched his attack on England in the 14th century when inspired by a spider who went through on its ninth attempt, and won. The writer is Secretary General, CUTS International.
Transparency and accuracy seem to be missing from figures about revenue collection By Huzaima Bukhari and Dr. Ikramul Haq In a press release issued by the Federal Board of Revenue (FBR) at the close of financial year 2010-11, it was claimed that revised target of Rs1588 billion was exceeded and that “historic achievement” was unprecedented. Later, the media exposed this claim and proved that through an act of deceit and fraud FBR grabbed Rs43 billion from some big taxpayers on June 30, 2011 and returned the amount by way of refunds within a few days. Through this act an impression was created that revenue target was exceeded whereas in reality there was huge shortfall of over Rs40 billion. Former Foreign Minister, Shah Mehmood Qureshi, raised the issue in Parliament on 22 July 2011 and requested the Speaker to constitute All Parties Parliamentary Committee (APPC) to investigate the matter of alleged fudging of figures by FBR. He said, “It is a cruel joke with the nation and the House. It has tarnished the image of Pakistan at international level. International economic institutions are raising questions over these figures. It is very serious issue and the government and opposition should take up this matter seriously”. In a news item (‘Revenue target met through artificial figure’, The News, July 22, 2011), it was claimed: “the revenue amounting to Rs1590 billion was not accumulated in the national exchequer till the night of June 30. The FBR had managed to secure about Rs43 billion from major banks and oil companies to show that the target was met. However, the amount was reimbursed in the first 10 days of July 2011...this was one of the reasons for resignation of Governor State Bank”. FBR, in the wake of publication of this story tried to control the damage by issuing a statement to a newspaper which said that: “the net revenue collection of the FBR for 2010-11 stood at Rs1550 billion against the annual target of Rs1588 billion, reflecting a shortfall of Rs38 billion. Earlier, the figures of Rs 1590.462 billion were the gross revenue collection of 2010-11. The final figures of net revenue collection as on July 22, 2011 were Rs1550 billion for 2010-11 against thrice downward revised target of Rs1588 billion, showing a shortfall of Rs 38 billion. The net figures of Rs 1550 billion have been computed and calculated after refund payments and reconciliation of data during the period under review”. The FBR has a long history of overstating the revenue collections by manipulating figures. In 1999, tax bureaucrats misreported to the International Monetary Fund (IMF). Subsequently, a commitment was made to the IMF to review fiscal data from financial year (FY) 1989-90 onwards. The data compiled for FY 1994 to FY 2000 confirmed that tax revenues were inflated by Rs5.2 billion. The tax collectors showed higher tax collections through fudging of figures and the nation had to pay a heavy cost for it (not only in terms of fine paid to the IMF) but by further tarnishing of image in the international community. Time and again the independent analysts and foreign institutions have expressed their indignation over this fraud, but the FBR has never ordered any inquiry into the matter. FBR does not disclose in its statements how much undisputed and established refunds were payable on the closing date of the fiscal year, which must be subtracted from gross revenue receipts to record the correct revenue collection. It only shows the actual refunds issued, whereas accrued and ascertainable liability of refunds should also be taken into account to reflect the true picture of net revenue realised during a financial year. The acts of manipulation by FBR testify to the criminal culpability of political masters as well. They want to show higher collection figures to foreign lenders, especially IMF, World Bank, and Asian Development Bank to secure more and more funds for their personal gains. FBR on its own cannot indulge in this criminal act unless backed by the government of the day. Blocking of income tax and sales tax refunds of various sectors to meet targets and for self-aggrandizement is an undeniable reality. In his statement before Public Accounts Committee on 16 November 2005, the then Chairman FBR admitted that refunds worth Rs321 billon due to banks as on 30 June 2005 were not paid. FBR withheld duty drawback claims of Rs5.7 billion. In respect of other established and undisputed income tax, sales tax and customs refunds, at least Rs. 15 billion due on 30 June 2005 were delayed. 2005 was not an isolated year. This is the story for every year. Had the Public Accounts Committee, before whom the Chairman FBR on 16 November 2005 admitted manipulation for exceeding the targets, taken stern action, things would have been much different. On the contrary, the culprits that year and thereafter received awards and rewards. The latest effort to show higher figure of tax collections is yet another shameful episode. It is a sad reflection on our fiscal management. The data manipulators, as before, will escape accountability. The top bureaucrats sitting in FBR accuse tax officials at the lower level of taking bribes but what they are doing in data manipulation is by no means a less heinous crime — the unethical acts of fudging figures. The latest episode of “exceeding set target” drama has exposed the credibility of the entire tax system. The team of data manipulators has done this right under the nose of the IMF and World Bank. This is a serious situation as such malpractice has distorted the image of the entire tax machinery — those who genuinely achieved their budget targets have also lost their credit. Time has come to make FBR an independent body run by a professional board of directors rather than by bureaucrats. The successful model of Mauritius Revenue Authority can be adopted for better management and collection of taxes. The writers, tax lawyers, are Adjunct Professors at Lahore University of Management Sciences (LUMS). Home|Daily Jang|The News|Sales & Advt|Contact Us| |
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the intractable debt crisis facing the government of the United States of
America has been making news across the world and in recent days a
noticeable panic has been spreading within the (often murky) financial
universe as the depth of the problem has become apparent. In short, the US
budget deficit has grown so large that American lawmakers must now lift
the goverment's US$14.3 trillion borrowing limit or face default. Public
resentment is reaching fever pitch both within the US and the world more
generally as a quibbling American political establishment stumbles over
itself to find a way out of the impasse.
complex continues to grow rapidly, thanks in large part to the gracious
supply of munitions and 'expertise' by its American counterpart.
white elephant in the room, of course). Thus, yet another warning signal
that the fundamental structural flaws in the global capitalist order are
becoming untenable will be scrupulously ushered into history.
Pakistani origin, he is a Swedish citizen now. Ishtiaq has a number of
publications to his credit. His upcoming book, “The Punjab Bloodied,
Partitioned and Cleansed, is being published simultaneously by Oxford
University Press, Karachi and RUPA Publications, New Delhi. He was
interviewed by Zaman Khan by email.
population will live in urban areas. This will place
enormous pressure on the cities and their management. The devolution
through the 18th amendment will empower the provinces and they will have
the powers in finding financial and political solutions to their problems.
Now they have the liberty to develop policies, regulation and standards.
It is thus imperative that the solutions for the changes wrought by the
demographic change and by the constitutional amendments must fit the
challenge.
affected over 20 million people, rendered 1.6 million families homeless
and about 2,000 people lost their lives.
difficult situation,” says Paryal Mari, President of Insaf Social
Welfare Association, a local community-based organisation and also head of
local chapter of Pakistan Red Crescent Society in Shikarpur. “Many
people, including the government, are doing good work but the response has
not been up to the expectations,” he adds.
Thomas Paine, Junius, John Wilkes, etc, in the fight of the people against
feudalism and despotism. Everyone knows of the great stir created by
Thomas Paine’s pamphlet `Commonsense’ during the American Revolution,
or of the letters of Junius during the reign of the despotic George III.
dispatches reveal that clandestine efforts were made yet again to oblige a
firm that was singled out for its incompetence and capacity to execute the
task.
to help poor countries to enable them to access gains from trade
liberalisation through financial and technical assistance as a stand alone
programme without mixing it with other aid programmes.