| 08 December 2004 | Wednesday | 25 Shawwal 1425 |
Rising inflation
Remembering Bhopal
Monday's attack on the American consulate in Jeddah, Saudi Arabia, highlights several uncomfortable truths about the two countries. First, even though US military targets and economic interests have been attacked in the past, this is for the first time that an American diplomatic mission in Saudi Arabia has been targeted.
Two, the attackers did not choose to blow up the embassy by a car-bomb; instead, the militants stormed the heavily-fortified American mission. This shows the strength and daring of the underground terrorist network.
Secondly it is fair to assume that, the attackers must have enjoyed covert support from some sections of the deeply alienated forces. Thirdly, the attack reflects the extent of frustration among the Arabs with the existing socio-political status quo. Fourthly, the attackers gave vent to the anti-Americanism that is now sweeping the Muslim world.
The dissent within Saudi Arabia has been surfacing for several years now. There have been pitched battles fought between security forces and the dissidents in quite a few cities.
Terrorists have attacked the police and targeted buildings housing foreigners. These attacks have occurred even in the kingdom's capital, Riyadh. Obviously, the dissent resorts to violence because democratic avenues for airing grievances are not available.
The kingdom has no parliament, no political parties and no free press. The king rules with the help of a Shura (consultative council) which consists of nominated men.
All important posts and resources are monopolizd by a relatively small aristocracy whose lavish life-style at home and abroad evokes strong criticism from religious elements who would like them to emulate Islam's injunctions on simple living.
Economically, too, things are not quite in order. Joblessness among the middle class is rising and incomes have gone down. These are ideal conditions for religious militants to exploit.
The biggest charge against the Saudi government is its perceived pro-Americanism, especially the presence of US troops on Saudi soil. This helps Osama bin Laden's cause, since one of Al Qaeda's principal aims is to rid Saudi Arabia of American bases.
These bases have been there for decades, but their presence appears to be anathema to all Arabs when they see them against the larger American role in the Middle East.
America has been Israel's backer and patron for decades. Under the Bush administration, however, the neocons running the White House these days have added new dimensions to America's blind support to the extremist Likud party led by Mr Ariel Sharon.
All these years, the US has never failed to support Israel even when the Jewish state was blatantly wrong - like the massacre in Jenin, the reoccupation of areas earlier vacated, the destruction of Yasser Arafat's Ramallah headquarters and his virtual arrest.
To all this has been added the hoax of WMDs, the attack on, and continued occuption of, oil-rich Iraq, the prisoner abuse in Abu Ghraib, and the mounting civilian casualties. To sections of the Saudi people, their government appears to side with such a foreign power.
The attack on the consulate should serve as an eye-opener for both Riyadh and Washington. Political reforms are long over due in the kingdom. The dissent can be stopped from turning to terror if it is offered democratic avenues for airing its views.
As for America, it has to re-examine its current role in the Arab-Islamic world, and realize the overriding need for pulling out of Iraq and finding a solution for the underlying problems that breed terrorism - Palestine and Kashmir, for instance.
Rising inflation
Prime Minister Shaukat Aziz has hinted that inflation will rise by about seven per cent during the current fiscal year as against an earlier estimate of five per cent.
Economists say that the rise does not necessarily mean that the economy is going to grow faster than at the targeted pace of 6.6 per cent but that the hike in inflation comes as a consequence of the present growth figures.
For the government, the challenge now will be to come up with a balancing act through a combination of fiscal, monetary and trade policies to contain this trend. While the government has been absorbing the rise in oil prices without passing this on to the consumer, one can now expect the State Bank to tighten the monetary policy which could signal a rise in interest rates.
At a time when most economic indicators point to a positive outlook, the inflation rate seems to threaten to nullify the gains. In the absence of a price control system under which essential commodities are sold at reasonable prices to the public, the need to keep a check on the prices of essentials in the market is most crucial.
The two areas of concern are the rise in fuel prices, which impact on a number of other goods and services, and the hike in the prices of essentials like flour and wheat. A substantial part of private sector loans available at low interest rates are diverted towards end-consumers who use the money to buy more of the goods and services beyond their real need.
This inflates prices and pushes up inflation. Similarly, when people borrow to invest in the stock market or real estate to make capital gains, that too gives rise to inflation.
While economic managers argue that higher inflation is a price that has to be paid for greater economic growth, the fact remains that while inflation affects the common man immediately, the benefits of the economic growth have yet to trickle down to the common people who need them the most.
Remembering Bhopal
Twenty years have passed since the world's worst industrial disaster, involving a gas leak from a pesticide plant, killed thousands in the Indian city of Bhopal. To this day, Bhopal residents continue to feel the physical effects of the catastrophe, although the memory of that tragic night in December 1984 does not seem to have made much of an impact on Indian environment authorities, and tonnes of toxic material continue to lie about in the plant.
This carelessness is not new to developing countries. Apart from being convenient locations for multinational units, they are least bothered about instituting safety measures in industrial plants that would reduce the chances of danger to workers or to those living in the neighbourhood.
In Pakistan, industrial and environmental accidents occur on a regular basis, and though none have been like the Bhopal tragedy, the likelihood of a disaster of similar proportions cannot be ruled out.
Apart from the possibility of a catastrophe, factory workers in the country run a far greater risk of suffering injuries and death than those in similar situations in developed nations that lay down strict safety rules for all industrial units to follow.
Labour in Pakistan is cheap and in abundance, and workers are not considered worthy of being provided with maximum protection, even while performing dangerous tasks.
What should also be noted is the insidious way in which tragedy can affect not only workers but all those living in industrial environs. The virtual absence of treatment plants for effluents has led to widespread pollution of the environment - soil, water and the air - that in turn affects plants, animal and human life.
The higher authorities need to pay greater attention to the damage, potential and actual, caused by industrialization, and to institute a set of checks and measures to keep its ill-effects from spilling over.