There has been a sudden eruption of articles in the Pakistan press in which writers with different political persuasions have, with a touch of serendipity, made the startling discovery that the only way this country can be put right, is to hold national elections - the sooner the better. After all, if Afghanistan, Iraq and the Palestine Authority can do it, why can't we?
It's not just the columnists and the letter writers who have been harping on this issue. Members of the bar, so tight and squally at the top, if reasonably resplendent in the middle, have also begun to nod sagely whenever the subject is discussed after office hours.
They have been joined by the latest entrant to the club, the retired politician who though over the hill, still clings to the slim hope that Musharraf will, in the not too distant future, do the Leghari or the Ghulam Ishaq on the graduates in the two assemblies, and after sending everybody packing, invite him to join a national government.
One of these old codgers, a retired bureaucrat, recently appeared on a television talk show where a trendy host, slumming it a bit, flaunted his intellect and asked questions he didn't care two hoots about.
After much pretentious rumbling of voice and wafting of gesture, the bureaucrat came to the inevitable conclusion that fresh elections should be held forthwith. It was the only way to save the country. Elections in fact, have become the off-putting toffee that gums up all but the most determinedly assured.
The bureaucrat, along with so many of the other members of the league of retired gentlemen, who appear on the idiot box from time to time, reminded me of the undisputed master of the King's gambit, Wilhelm Steinitz, one time world chess champion.
Years after he had lost his crown to Dr Emmanuel Lasker and was no longer a feared rival, he still managed to defeat one of the strongest players in the world in a competition held in Vienna.
After the applause had died down and the tournament secretary had ordered a round of schnapps, Steinitz said he might be an old lion, but if somebody were stupid enough to put a finger in his mouth, he would bite it off.
These old warriors on the talk shows are full of suggestions on what should and what should not be done, and who should do what and when to make Pakistan a better place. Like Steinitz, they are ready to bite off a lot of fingers. But one does at times wonder why they didn't assert themselves when they were in power and in a position to do some good.. If they had performed their duties with honesty and sincerity, and put the wagons back on the rails, surely things wouldn't have come to such a sorry pass.
However, the real issue is not how bad things have become, but the fact that there appears to be a collective proclivity to ensure that no elected Pakistani government should ever be allowed to complete its term.
Both Nawaz Sharif and Benazir Bhutto have gone through the experience-twice. And people have already started to predict when the present government will be filing into the departure lounge.
This constant state of temporariness, of keeping things in flux, of not wanting to complete something that has been started, is part of the national psyche, like sycophancy, switching sides and freeloading at the taxpayer's expense.
Nobody in his right mind could possibly describe Pakistan as a democracy, especially after the 1973 Constitution has been given a mauling on a regular basis. Even the statements of the American policymakers when referring to the system prevailing in this country are guarded and loaded with innuendo. But the point is, even if another election was held, what guarantees are there that things would be any different?
If one is to believe the stories that are circulating about a rapprochement between the head of state and the two leaders languishing in exile, the King's party can't possibly have much of a future. There is a distinct possibility that the religious parties might be cut down to size.
Even though the holy warriors still have an abidingly powerful grip on the popular imagination in two of the four provinces, and are the third largest political grouping in the country, it is doubtful if the president will make the same mistake twice, and allow the clerics to win by default.
In the past, the Jamaat-e-Islami that provides much of the inspiration in the six-party religious alliance, couldn't muster enough support to win a seat in a national election, and candidates frequently had to forfeit their deposit.
Though a complete denouement is unlikely, a certain amount of attrition will take place, and it is doubtful if the alliance will ever be in the same dominant position in future, giving in to undemocratic overtures while maintaining the posture of an opposition party.
For the time being the men of the cloth needn't worry. The president had stated quite categorically that there wouldn't be any elections until 2007. But then, as Qazi Hussain Ahmed pointed out, didn't the president also say he would take off his uniform at the end of last year?
It is obvious that the people who are demanding fresh elections haven't asked themselves if the colossal expenditure that will be incurred in seeking the people's mandate is really justified, when it is almost certain that barring a few marginal changes the same assortment of retrogressive rightwing candidates will be returned.
The country went through this painful exercise six times between 1970 and 2002, and there hasn't really been any qualitative improvement in the candidates selected to guide the destiny of the nation.
In fact, the class of 2002, armed with graduate and post graduate certificates, while they didn't come up with a single progressive bill, did at times provide light relief to members of the public.
How often have television cameras captured the astonishing variety of actions employed by members of the opposition when engaged in protest? And how often have these same cameras focused on a debate which was as pointless as it was inane? One has been led to believe there were fewer rowdies in the assemblies during Benazir Bhutto's and Nawaz Sharif's tenure.
Nawaz Sharif did at least try to shift some of the spotlight away from the landed gentry to the businessman. But events conspired to ensure that his adventure was short lived.
People interested in learning more about the elections would be advised to read the comprehensive survey conducted by the Pakistan Institute of Legislative Development and Transparency carried out in January 2003, in association with two other agencies. This document provides an insight into the elements of continuity and change in electoral behaviour with special reference to the 2002 election.
An interesting broad observation was: in the 2002 election, most voters made their voting decision during the election campaign. This is in sharp contrast to past practice where a voter had already made up his mind long before the leaders started to beat the tin drum. For those who get a kick from wading through statistics, there are a number of interesting features that emerge from the research.
Nearly 60 per cent of eligible voters did not vote. Out of this apathetic lot, 53 per cent stated that they just weren't interested in politics and 53 per cent pointed out, with certain pride, that they never voted. Twenty-six per cent said they didn't like any of the candidates. 16 per cent didn't care for the candidate put up by the party. Eighteen per cent discovered that the polling station was too far from where they lived.
Forty per cent, who were obviously citizens of sterling character and reputation, had every intention of casting their vote but were prevented from doing so by "circumstances." Forty-eight per cent said they just didn't feel like voting and 14 per cent cold shouldered the whole thing because the party no longer stood for what they believed in.
It was, however, the 39 per cent which really knew what it was talking about. They were certainly on the same frequency as I was. They said that there was really no point in voting because their vote would not change anything in Pakistan. Could anything be clearer than that?
Need for an effective strategy: Reducing inequalities-II
By Sartaj Aziz
While accelerated GDP growth is a necessary condition for poverty reduction, it is not sufficient, without a measure of equity in terms of income groups, regions and gender.
The results of recent research show that high inequality is an impediment not only to poverty reduction but also to growth through reduced aggregate demand and a shrinking economic base. A strategy to reduce inequalities can be evolved on the following main elements:
- Giving priority to poor households in the allotment of land in rural and urban areas. In Pakistan the land allotment policy in urban areas gives priority to influential and high income members of society who also have access to cheap credit for buying land or building houses.
The growing demand for urban land under such a policy has increased land prices to such an extent that even middle class families can no longer fulfil their dream of owning modest dwellings.
- Ownership of livestock through micro-credit on a substantial scale, together with access to marketing opportunities for milk and meat.
- Improved agricultural terms of trade to ensure that the prices that farmers pay for agricultural inputs do not rise faster than the prices which farmers receive for their output.
- Reasonable and stable food prices. In the past five years, food prices have increased by almost 60 per cent which in turn has had an adverse impact on the growth of real wages - a very important factor in poverty reduction.
- Enhanced real wages for workers in urban and rural areas. These in turn depend on the creation of new employment opportunities in the formal and informal sectors.
Fiscal and other policies that can help reduce inequality must include the following:
- Expanding investment particularly in small and medium enterprises. A ratio of 20 per cent of the GDP or more is necessary, not only to achieve a sustained GDP growth of six per cent per annum but also to absorb the additions to the labour force by expanding employment opportunities.
- Increasing the ratio of development expenditure on social services (education and health) to at least six per cent of the GDP.- Improving the ratio of direct to indirect taxes.
The present tax regime in Pakistan is biased against the poor because the share of direct taxes in total tax revenues (without withholding taxes) is only 22 per cent, compared to 30 per cent in India and 40 per cent in Iran.
Since the lower income households carry a greater burden of regressive indirect taxes, the 10 per cent poor households contribute 16 per cent of their meagre incomes to the three indirect taxes and the richest 10 per cent contribute on the average only about 10 per cent of their incomes to the tax revenues. A decisive shift towards direct taxes in raising revenues is thus critical for poverty reduction.
Similarly, it is equally important to reduce non-development expenditures and divert the amount saved to development expenditures on social services i.e. education, health, rural roads, drinking water and sanitation. Since 2001-2002, Pakistan has additional fiscal space of Rs60 billion a year from debt rescheduling of $1 billion.
But only half of this unexpected addition to our resource pool has been diverted to the development programme. We must expand the public sector development programme by Rs60 to 80 billion a year to regain its eight per cent ratio to the GDP in the next five years.
Human development is the ultimate objective of any development process, but it also contributes to poverty reduction through strengthening skills in poor households, and improves their income earning opportunities. It also contributes to the social and economic empowerment of the poorer and under-privileged segments of the population.
The principal elements of human and social development are education, health care, social protection, and population control. These elements have direct linkages to growth, employment and poverty reduction.
In education, the overall expenditure has remained between 2.0 and 2.3 per cent of the GDP throughout the past 15 years, although as a result of the Social Action Programme, the highest growth in primary enrolment has been in 1990s (8.6 per cent per annum for females and 7.7 per cent for male students).
The period 2000-2003 stands out for record growth in the appointment of primary and secondary school teachers but hardly any growth in new enrolment (only 1 per cent for males and negative (-3.4 per cent) for female students.
In the health sector, the number of hospital beds over 30 years, from 1973 to 2002 has grown only at 3.6 per cent, or only slightly above the population growth, and that also mainly in urban areas. The growth of health services in rural areas has been much slower.
Any effective strategy for poverty reduction must ensure a quantum jump in education and health, not only in terms of raising total expenditures to four and two per cent of the GDP respectively, but also to ensure that poor households receive their due share in these services.
Recent research has shown that on the average, heads of poor households lose about one-sixth of their annual earnings due to sickness and in the absence of adequate health services, have to sell their animals or other assets to tend to their sickness, thus accentuating their chronic poverty.
In terms of social protection, Pakistan has three major schemes: employee's social security and old age benefits schemes for workers in the organized sector, Zakat and Bait-ul-Mal. But their coverage is relatively limited, as all the schemes together cover only 16 per cent of the labour force.
In other words 84 per cent of the total labour force, 73 per cent of the non-agricultural labour force and 86 per cent of the population below the poverty line, is not covered by any form of social protection. Apart from the lower coverage, average benefits per beneficiary are also meagre, ranging from Rs132 to Rs585 per month, well below the official poverty line of Rs844.
It should be clear from the foregoing analysis that even if Pakistan were to maintain an average GDP growth of six per cent per annum over the next few years, it would not be able to achieve the millennium development goal of halving poverty by the year 2015 because of growing inequality in the rural and urban economy.
In fact under the status quo scenario, the incidence of poverty over the next five years might increase further from 32 to 35 per cent of the population and the unemployment rate will remain constant at the socially-explosive rate of eight to nine per cent.
Now that Pakistan has said goodbye to the IMF Programme for Poverty Reduction, it is time to formulate its own 10-year strategy for halving poverty by 2015. Such a strategy to be effective will have to explore, inter alia, specific policies and programmes that can address the problem of inequality.
(Concluded)
Gwadar's strategic importance
By Talat Masood
Ever since the creation of Pakistan, China has been clearly Pakistan's strongest supporter in the military, economic and diplomatic fields. The relationship has transcended major changes in both governments.
The people of Pakistan have demonstrated a sustained pro-China sentiment that has further strengthened the bonds. China has been an invaluable external source of military equipment and technologies to Pakistan, especially during the period when the United States and other countries imposed sanctions on this country.
Over the years a large number of collaborative projects in the field of defence have been completed that include manufacture of tanks, guns, missiles, patrol boats, communication equipment's, trainer and fighter aircraft and construction of nuclear power plants.
The Karakoram Highway linking the Chinese Xinjiang province is another landmark project between the two countries. Islamabad considers China a strategic partner and the Chinese have characterized their relationship with Pakistan as constructive partnership.
Semantics aside, maintaining a close relationship with an ascending power and close neighbour has always appealed to Pakistan's policy-makers across the political spectrum.
On the other hand, China recognizes Pakistan's geo-strategic importance, its eminence among the Muslim countries and its usefulness as an ally at the international forums. With the two countries enjoying such good relations it is no surprise that they have engaged in the development of the Gwadar port project.
The new port of Gwadar will supplement Karachi port and its Port Qasim extension, which was constructed in the late eighties. Karachi port handles nearly 50 million tonnes of cargo annually and with Pakistan's economy expected to grow at a minimum of six per cent annually, the volume of trade is projected to be around 75 million tonnes in the year 2015. The government has undertaken expansion programmes at both ports to enable them meet the growing demand of trading and commercial activity.
Nonetheless, there is still need for an additional seaport to handle peak season overflow of incoming and outgoing sea cargo and to cater to the transit traffic flowing from Central Asian states and Afghanistan.
Equally significant is the defence requirement to repair and rebuild the redundant portion of the communication infrastructure. A single port complex is vulnerable during times of crisis or war.
The Gwadar project came about as a result of a Sino-Pakistan agreement in March 2002, under which China Harbour Construction Corporation will build the port. Beijing has provided $198 million for the first phase of the project and Islamabad's contribution has been $ 50 million. The scope of phase-1 includes construction of three multi-purpose berths each 200 meters long and capable of handling vessels up to 30,000 DWT.
As work is progressing satisfactorily, the first phase should be completed by early 2005. Phase two is planned for development by the private sector at an estimated cost of $600 million and envisages the development of ten more berths and a five kilometre approach channel and will take vessels up to 50,000 DWT.
By virtue of its excellent location, Gwadar port is also visualized to become a regional hub serving incoming and outgoing commercial traffic of the Middle Eastern and Gulf countries, the Xinjiang province of China, Iran in the west and Sri Lanka and Bangladesh in the south and east.
Its location at the mouth of the Gulf and at the opposite end of the strategic choke points of Straits of Hormuz and the Gulf of Oman enhances its strategic importance. Its development could favourably influence the geo strategic environment of the region and have an overall beneficial impact on Pakistan.
Additionally, the port should facilitate efficient exploitation of the exclusive economic zone of Pakistan, which so far has remained largely unexplored. The area is rich in fisheries and if the 600-kilometre long coastal line is fully exploited it could give a big boost to fish and crab exports and promote food-processing industries. Lying in the vicinity of oil-rich Gulf states, Gwadar could also be a potential source of offshore gas and oil exploration.
The existing highways on the Afghan border, connecting the border towns of Chaman and Torkham provide the shortest all-weather road and rail links to Gwadar. These will have to be brought up to international standards if the part's potential of becoming a major economic and commercial centre is to be realized. Pakistan is already developing the road and highway network connecting Gwadar with its own major cities and ports through the 700-mile Mekran Coastal Highway.
The development of a comprehensive network of roads and other communication infrastructure would call for a lot of investment and would take a few years to complete. Similarly, rail and air services will have to be developed between Gwadar and other important commercial centres in Pakistan.
The development of the Gwadar port should benefit the overall economy of Balochistan and unlock its potential. Regrettably, the people of the area, and more so the tribal leaders, are not enthusiastic about the project and in fact some are actively opposing it.
Their fears are that outsiders, whether foreign or domestic, will undertake development work and threaten the identity and livelihood of the local inhabitants. Tribal leaders, who have monopolized power in this backward province are apprehensive of losing their hold over the people when the project materializes.
This would entail building consensus through a sustained and well-coordinated political process and winning the confidence of the local people. It is unfortunate that the government had given a low priority to this important aspect in the past. Moreover, Islamabad should also ensure that the short-term interests of the land mafia and other vested groups do not damage the genuine interests of the Baloch people.
As of now, most of the infrastructural development is related to coastal roads and linking Gwadar with Karachi. The government should pay equal if not greater attention to developing road and rail links from Gwadar to the hinterland of Balochistan so that the Balochs equally share the benefits of development.
Benefit of the Gwadar port is also directly linked to the stability in Afghanistan and Central Asia. Another prerequisite would be the physical infra-structural development in these countries. Linking Torkhum-Jalalabad and Chaman-Kandahar roads with modern highways will be in the mutual long-term interests of both Pakistan and Afghanistan.
According to some sources, Beijing also intends to take advantage of Gwadar's accessible international trade routes to Central Asian republics and Xinjiang. The plan envisages extending China's east-west railway from the border city of Kashi to Peshawar.
The incoming and outgoing cargo from Gwadar can then be delivered to China through the shortest route from Karachi to Peshawar. The same road and rail network can also be used for the supply of oil from the Gulf to the western provinces of China.
Additionally, China could also gain rail and road access to Iran through Pakistan's internal road and rail network. Use of Gwadar port by China should accelerate the growth and development of the port and the hinterland and enhance its overall commercial and strategic value.
The Chinese have all along denied that the joint project of Gwadar has any military dimension and have stressed that it is a civilian port, but being a major importer of oil from the Gulf and mostly routed through this sea-lane it has a justifiable interest in having secure and uninterrupted flow of oil.
Occasional goodwill visits by its naval vessels and increased trade and commercial activity with Pakistan are likely to raise Chinese profile in the Arabian Sea.
As a matter of policy, China has always assisted Pakistan in strengthening its defence capability. Beijing's involvement in the Gwadar sea port is primarily motivated by commercial considerations, but it also perhaps sees the advantages accruing to Pakistan and its own navy for having a friendly port of call close to the Gulf region.
Together with this when a reliable network of road and rail links is established, it could benefit both Pakistan and China commercially as well as strategically.
From a defence perspective, Pakistan Navy would find it easier to operate closer to the Gulf. During times of crisis it could move its naval assets farther from any Indian naval and air threat.
In the event of an unfortunate war, the port of Gwadar would provide strategic depth to Pakistan's commercial and military vessels and be in a relatively advantageous position to operate against the Indian Navy. Gwadar is, however, well within the range of land-air and sea-based Indian missiles.