| 21 March 2004 | Sunday | 29 Muharram 1425 |
Elections in Malaysia
On talking 'garbage'
The three-day Pakistan Development Forum (PDF), which concluded in Islamabad on Friday, has done well to propose the drawing up of a five-year infrastructure development programme focusing mainly on water and power sectors. While the overall state of the physical infrastructure in Pakistan is in poor shape, the situation in the water and power sectors is frightening.
With the population galloping at over 2.4 per cent annually, Pakistan's irrigation water needs and power requirements seem to have already out raced the existing capacities in these two sectors. With the country poised to enter what appears to be a sustainable growth cycle of six per cent and more annually, water and power shortages will serve to hold back the economy, threatening to nullify the gains of the last couple of years.
What is highly encouraging in this respect is the fact that the World Bank, the main sponsor of the PDF, has agreed to join hands with the government in developing this proposed five-year plan and also to finance the first-year requirements for its implementation.
Pakistan desperately needs a couple of big dams to add to its irrigation water storage capacities and produce more hydel power to meet future needs at economical cost. There is no time to be wasted on developing what is called a national consensus on controversial water projects. What is needed is to take up those projects on a priority basis which are non-controversial as well as economically feasible.
Along with this, the country should prepare and implement a nationwide network of smaller dams, specially in the NWFP, which has many natural waterfalls, and in Balochistan, where rain water dams are feasible. A German company had five years ago presented to the government a comprehensive plan for the construction of small dams in the country. The plan could be updated and submitted to the planning commission for incorporation in the proposed five-year plan.
Pakistan needs to attack poverty meaningfully. The first task should be to create massive employment opportunities, especially in the rural areas, where the health of the agricultural sector is far from what it should have been. Roads not only create new jobs, they also bring services to remote and backward areas. Besides roads, there should be a thrust toward developing the physical infrastructure in a big way, with more bridges, airports and seaports coming up.
One school of thought led by the World Bank and the IMF believes that a sustained growth rate of 6-7 per cent would reduce poverty to acceptable levels. But others believe that the incidence of massive poverty in the range of 33-35 per cent itself would make it impossible for the country to grow at such high rates. This appears to be the proverbial chicken and egg case. But then an innovative approach to the problem keeping in mind the socio-economic and political peculiarities of this country could perhaps do the trick.
Elections in Malaysia
As Malaysians vote today in the country's first post-Mahathir polls, the performance of the ruling party's main rival, the Parti Islam SeMalaysia (PAS), will be closely watched. In the last general elections four years ago, the PAS, which subscribes to a conservative Islamic agenda, not only almost quadrupled its seats in parliament, it also wrested a key state from Mahathir Mohamad's United Malay National Organization (UMNO), the dominant party in the ruling coalition.
Aiming to win the vote of the Muslim Malays, the majority ethnic group, the PAS has now set its sights on six more states. While analysts predict a victory for the ruling coalition which has already won 17 parliamentary and 11 state seats unopposed out of 219 and 505, respectively, many see the current polls as a barometer of public support for the greater role of Islam in national affairs.
This perception has forced the UMNO to project itself as an upholder of progressive Islamic values, and it has attempted to do so by including religious scholars on its panel of candidates. Conversely, the PAS, anxious not to alienate Malaysia's Chinese and Indian minorities, has taken pains to nominate professionals on its list of hopefuls.
Even as the two parties seek to give a moderate face to their image to win public approval, it must not be forgotten that Malaysia's remarkable position as a well-developed and peaceful Muslim state rests on the ethnic and religious harmony among its people. There is discontent in some quarters, as evidenced in the "reformasi" movement during the last elections that cost the UMNO some valuable seats. But there are several factors, including a fast-growing economy and the ongoing crackdown on corruption, that augur well for the country's future.
Most Malaysians are expected to vote keeping the larger picture in mind, while many will be influenced by religious and other considerations. However, whatever the outcome of the polls, Malaysia's next rulers, on both the national and state levels, would do well to remember that a tactless handling of ethnic and religious issues has often led to bitter feuds in societies. This would be unpardonable in a nation that is consistently cited as a shining example of modernity and progress among the Asian countries.
On talking 'garbage'
The State Bank Governor, Dr Ishrat Hussain, has made it something of a habit to criticize the press for what he considers to be ignorant reporting of economic policy and for presenting a distorted picture of the economy. He repeated this charge during a lecture in Islamabad the other day when he reportedly advised his audience of students not to be taken in by the "garbage thrown by the newspapers" and other opinionated persons airing various theories about the reasons for Pakistan lagging behind other nations.
While it is true that some newspaper comment may be ill informed or not as well researched as it should be and that a straight-talking State Bank governor may not be such a bad phenomenon, glib generalizations are unwelcome, wherever they come from. It remains a harsh fact that our economic managers have become so engrossed with the task of setting things right at the macro level that they have assumed an attitude of total indifference to the mounting problems of the common citizens.
Is it talking 'garbage', Mr Governor, to say that flour prices have hit Rs18-20 a kg, with an inflationary effect on other essential commodities? Is it 'garbage' that petrol prices and utility rates have been steadily going up? That even the so-called middle classes are finding it increasingly difficult to afford housing, clothing and schooling from their eroding incomes? Is it 'garbage' that people in the big cities have to spend hours commuting between home and workplace? That more people are slipping below the poverty line despite the much trumpeted and atrociously named "pro-poor" policies? Is it 'garbage' that unemployment is rampant and we have growth without job creation?
The State Bank governor also said at the same Islamabad function that the people were to be blamed for sluggish growth because they did not save enough and invest in the economy. How much can a family with an income of Rs12-15,000 a month save? And if you do manage to save, how much return do the banks give in savings? Small depositors actually get a negative return. If, Mr Governor, you are not overly concerned with the citizens' everyday woes, at least don't trivialize them. And if you can't do anything to improve the average Pakistani's lot, kindly keep quiet. Dumping garbage is not anyone's monopoly.