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DINA
DAWN - the Internet Edition



27 February 2005 Sunday 17 Muharram 1426

Editorial


Trade with India
Bullying won't do
Lowering the dropout rate




Trade with India


The results of Pakistan-India trade talks in New Delhi earlier this week were not spectacular. But they did make significant progress. There was no mention at the talks of the MFN status which Pakistan is yet to extend to India. And, of course, there was no insistence from our side that no progress on the issue was possible without simultaneously coming to grips with the Kashmir issue. In Pakistan tariff and non-tariff barriers are very low compared to those in India.

So, there is no commercial mileage for Pakistan in according India MFN status as a reciprocal gesture to India's earlier decision to extend this status to Pakistan. In fact, Pakistan would lose a lot if trade relations between the two countries were established on this principle. In order to side-step this road block, Pakistan had earlier proposed that the two countries should tackle the issue under the proposed Safta agreement.

Pakistan believed the route offered a level playing field in bilateral trade with India. But this route would have taken at least 10 years to open up mutually beneficial trade opportunities. So, it was the right thing to do for the two countries to approach the problem from yet another angle.

As a result of the New Delhi trade talks, the two countries have rightly decided to probe the issue further to see if there are any more obstacles in the way and what exactly the two can trade in. One way of expediting the matter is for India and Pakistan to enter into a Preferential Trade Arrangement (PTA). This would enable them to treat each others' goods at an equitable level of tariff without violating the WTO rules governing the MFN principles. And if this proves mutually beneficial over the medium term, the two could upgrade the arrangement to a free trade one.

India already has free trade arrangements with Sri Lanka. As a result, trade between the two has increased tremendously and Indian investors have gone and invested heavily in Sri Lanka. Pakistan, too, has very recently entered into a free trade arrangement with Sri Lanka. There is an apprehension in Pakistan and India that if we do not make some kind of mutually beneficial trade arrangement without further loss of time, Indian goods would start entering the Pakistani market via Sri Lanka under FTA carrying 'Made in Sri Lanka' labels and Pakistani goods under the same arrangement would enter India under a similar label.

India being a larger and more developed economy would surely cause a lot of dislocation in Pakistan's economy if bilateral trade with that country is liberalized. But, then, this would have a more positive rather than a negative impact on the overall economy as Pakistan would get cheaper raw materials and intermediaries from India with freight cost coming down steeply, considerably lowering the cost of our exports.

Also, India at best would get a market of about two billion dollars in Pakistan, whereas if we succeed in getting a foothold in the Indian market even for two or three items Pakistan would perhaps make much more than two billion dollars because of the sheer size of the market. So, besides economic benefits, trade between them would also enable the two countries to open a new phase of friendship and cooperation in their bilateral ties.

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Bullying won't do



The redeployment of Syrian troops in Lebanon to the Bekaa valley along the Syrian-Lebanese border, as announced by Damascus on Thursday, is seen in Washington as a move that offers too little. Pressure has mounted on Syria to withdraw its 14,000-strong force from Lebanon since the assassination on Feb 14 of the former Lebanese prime minister, Mr Rafik Hariri, in Beirut.

During his recent tour of Europe, President George Bush kept up his rhetoric about Syria's alleged involvement in Mr Hariri's murder, demanding an immediate Syrian withdrawal from Lebanon. Adding his voice to the American demand, UN Secretary-General Kofi Annan has also called on Syria to pull out its troops by April, as required under last year's Security Council resolution. Failing this, the secretary-general has warned, the SC may consider further action against Damascus.

Syrian policy on Lebanon has drawn increasing criticism from many western quarters and even from some of its Arab neighbours. Arab League Secretary-General Amr Mousa told Syrian leaders just as much on a recent visit to Damascus. Syria says it is willing to implement the intra-Arab Taif Accord of 1989 which requires it to redeploy its troops in the Bekaa valley, followed by a withdrawal from Lebanon at a mutually agreed date with Beirut.

The pro-Syrian Lebanese government has also come under tremendous pressure by the opposition in that country which has demanded an immediate Syrian withdrawal. Damascus has offered to hold a dialogue with the US over the issue but there is every indication that Washington will rebuff the offer at this time. The latter has used Mr Hariri's assassination to pressure Syria into acquiescence, just as it has tried to use the nuclear non-proliferation issue to arm-twist Iran into submission.

Washington had earlier accused Damascus of sheltering Iraqi Ba'athists and of hiding Iraq's alleged weapons of mass destruction. It is time the US realized that bullying Syria and Iran can only lead to more chaos and unrest in the Middle East. This can compound America's predicament in Iraq and detract from its war on terrorism.

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Lowering the dropout rate



A minister of State's observation that "we cannot achieve remarkable success" in boosting literacy without lowering the dropout rate in schools comes as something of an understatement. With the national literacy rate at a little over 50 per cent - although independent sources believe this figure to be inflated - and an almost equal percentage of primary school dropouts in the country, the goal of attaining "remarkable success" in education seems nowhere in sight.

What is a greater cause for concern is that, according to one report, the dropout figure is on the increase. While Punjab has chalked out a comprehensive strategy (Punjab Education Sector Reforms Programme) and is implementing measures to increase enrolment and curb the number of dropouts, other provinces have yet to evolve a similar strategy, although a national policy emphasizing educational reforms has been in place for some years now.

A number of reasons can be cited for the high dropout rate in schools. Among them are child labour - a direct consequence of widespread poverty - fear of corporal punishment, long distances, ramshackle infrastructure, lack of schooling facilities and teacher absenteeism. The situation is worse in the rural areas where the bulk of the population lives, and where conservative attitudes, especially towards women, prevails. These are among compelling reasons that stand in the way of education for our children.

There are a number of measures that the government can take to rectify the situation - from improving infrastructure to ensuring that students, especially girls, do not have to walk long great distances on foot to get to school. But what is more important is a change in perception. The government and civil society must jointly try to promote the idea that more than a cost-incurring activity, education is an investment for a better future and a means of getting out of the poverty trap. This realization itself would encourage people to see education as a precious asset and stop their children from dropping out of school.

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© The DAWN Group of Newspapers, 2005