Tall on promises, short on delivery

THE disturbingly low utilisation of public sector development funds during the first nine months of the current fiscal year belies the official claim of having improved governance, reduced inefficiencies and the higher absorption capacity of the economy. Nothing short of a miracle would now be needed to meet the Rs 272-billion target of the current fiscal year’s Public Sector Development Programme (PSDP). Even if that happens, the shortfall is likely to remain as high as 30 per cent by the end of the year. This would mean that by June this year we would have spent almost the same amount as was spent last year on development. If this is adjusted against the rate of inflation, which had remained over eight per cent all these months, the actual PSDP expenditure this year would be much less than what was spent on the programme in 2004-05. Such a massive decline in one year in development spending in a country where all kinds of deficiencies have kept increasing all these years is a matter of serious concern.

There was a time, not very long ago, when the country was hovering around the default point and, therefore, to an extent, it was understandable if we had very little to spare for development. One could also partly blame the political uncertainties of a democratic dispensation of those days for the bad governance leading to the gross under-utilisation of development funds. But today, as opposed to the decade of the 1990s, we have plenty backed by a record $12 billion in foreign exchange reserves. With the so-called ‘unity of command’ at the top, a relative political and social calm is prevailing today in the country. Why then is there such a similarity in the utilisation rate of development funds during the seven years since 1999 and that of the decade of the 1990s? One can find part of the answer to this question in the style of governance of this regime. It has made a habit of announcing grandiose plans and projects worth billions to eradicate poverty from the country ostensibly to usher in rapid progress and prosperity but without actually doing much about their implementation. This results in social and physical infrastructure gaps widening ever more.

According to press reports, the government is planning to enhance the next year’s PSDP by about Rs 100 billion to Rs 375 billion. But if the rates of utilisation and inflation remained the same as this year, then perhaps the actual expenditure on development in 2006-07 will continue to stagnate at the level of 2004-05. Most of the current inflow of foreign funds being unencumbered, they are not likely to remain open for long. Already only Rs 10 billion is reported to have been disbursed by the foreign donors in the nine months against a full year’s foreign project assistance budget of over Rs 60 billion. It is time, therefore, for the government to stop promoting the casino culture in the name of market economy and implement policies that would improve governance, efficiencies and the absorption capacity of the economy. Otherwise, we would miss for the third time a great opportunity in the form of generous foreign assistance to improve our lot and achieve economic self-reliance.

Healthcare for rural areas

THE Sindh government’s move to table a bill on compulsory healthcare services in the country’s rural areas should be widely welcomed. It seeks to address the medical needs of the bulk of the province’s population. At the moment, the heavy urban bias of the health system means that large swaths of the rural areas remain deprived of even basic medical services. Thus, it comes as no surprise that Pakistan has some of the worst figures in the region for infant and maternal mortality. Moreover, diseases such as malaria, tuberculosis and polio — cases of which still crop up from time to time — are prevalent, particularly in the rural areas where poverty, poor awareness, and limited outreach to health facilities are at their worst. There is no doubt that steps must be taken to counter the deteriorating health situation in the rural areas. Pakistan has made progress in eradicating polio and has brought several districts under DOTS (a TB control programme) coverage. Besides the number of lady health visitors to rural areas has been increasing. But all this has not kept pace with the healthcare needs and demands of the rural population. The national doctor-patient ratio is one to 1,300, and in the rural areas the proportion is much worse.

Obviously, the situation in the rural areas calls for considerable improvement, including higher investment in healthcare services and a much greater presence of doctors, nurses and paramedics in the rural hinterland. However, given the remoteness and underdevelopment of many of the areas where medical staff from the cities is supposed to work, it is small wonder that doctors and nurses are unwilling to go there. Not only does the lack of a proper health infrastructure make their job a difficult one, their monetary package and living arrangements are usually not attractive enough for them to even consider a short stint there. These are problems that the government will have to rectify if it wants its health professionals to serve in the rural areas. Legislation is not going to be enough to ensure that they shoulder their responsibilities there.

Curbs on Nepal’s monarchy

IN yet another victory for the people of Nepal, the newly reinstated parliament curtailed the king’s powers on Thursday and deprived him of his position as head of the army whose chief will now be appointed by the lawmakers. The Raj Parishad or the privy council will be dismantled. Nepal will become a secular state, and no longer call itself a Hindu kingdom. His Majesty’s Government of Nepal will simply be the Nepal government. The king and his relatives will lose their legal immunity and pay taxes along with the rest of the Nepalese. If the Maoist rebels, who control much of Nepal’s countryside, have their way, matters could get worse for the monarchy which may well be on its way out, following the establishment of a new political dispensation by a constituent assembly.

King Gyanendra has only himself to blame for the debacle confronting him and the monarchy itself. His autocratic ways over the last four years did not endear him to the people or the political parties. But what came as a surprise during last month’s widespread protests in Nepal was the army’s reluctance to overstep its limits and indulge in the killing of protesting civilians. Protestors have no doubt been killed or severely wounded in fracases involving the army, for which the latter must be condemned. But, given the scale of the uprising, the death toll has not been as extensive as feared. Just as welcome is the Nepal army’s apparent resolve, despite an internal tussle over the measures de-linking the king from the military, not to subvert the recent parliamentary declaration. This augurs well for democratic prospects in Nepal and for a peaceful solution to the protracted armed conflict with the Maoists who have indicated that they are willing to cooperate so long as their demands are incorporated into the political changes taking place.

D-8: imperatives of unity

ONE theme that has inspired succeeding generations of Muslims but as a goal has remained elusive is the unity of the Islamic world. A utopian Islamic commonwealth transcending borders and the sovereignty of states has fired the imagination not only of visionaries but of hardnosed economist and politicians as well.

The half century preceding the new millennium saw the emergence of regional organisations with a focus on economic and security issues in Europe such as Nato and the European Economic Community. Their evolution into a monolithic group, providing a sense of prosperity and security and overriding historical prejudices and conflicts between member-states, made Muslim visionaries more acutely conscious of the need for Muslims to arrest their decay, forge closer alliances and pursue common goals and policies.

The emergence of Pakistan as an ideological state and the philosophy of pan-Islamism pursued by its founding fathers and the contemporaneous creation of Israel in the heart of the Arab world became the catalyst for this movement; the first as a positive force and the latter as a counter to security concerns.

The first manifestation of this urge for unity and solidarity, both to close ranks in the Muslim world and to protect the Arabs against Zionist policies was the Arab League, inspired by the leaders of the Muslim Brotherhood, Hasan Al-Banna and Syed Qutub.

This led to the formation of other regional organisations, most with limited objectives and geographic contiguity, such as the Regional Cooperation for Development (RCD) and Gulf Cooperation Council (GCC). These organisations, however, lacking strong foundations and committed leadership failed to make a mark. Intra-regional political differences and priorities kept them comatose.

The first major organisation with a global reach covering Muslims from Indonesia to Morocco was the Organisation of the Islam Conference (OIC), set up in September 1969, to seek the end of the occupation of Arab lands lost in the June 1967 war to Israel and to promote unity in the Islamic world. The experience, however, has belied hopes. In spite of all efforts to rejuvenate it to play a meaningful role in the affairs of the Muslim world, the OIC has remained dormant.

In South Asia, the sentiments of Islamic brotherhood and solidarity have always been strongest, and the creation of Pakistan was seen as the vindication of the resilience of Islam and hence the beginning of Islamic renaissance.

Against this background, it was only natural for Pakistan to play the lead role in giving tangible shape to a Muslim vision of unity and cooperation. Pakistan’s successive leaderships, in concert with popular sentiments, encouraged multilateral cooperation with mostly Muslim countries and also supported the creation of organisations purportedly devoted to working in unison to form an Islamic bloc.

The formation of the Developing-8 (D-8) group was inspired by the same vision, though the initiative was by taken by the Turkish Prime Minister Necmettin Erbakan. The D-8 was set up on June 15, 1997 as an ‘institutionalised cooperative mechanism for deeper and wider cooperation among the eight largest Muslim countries in the political, economic, technological and cultural spheres and to present a role model to other Muslim states, smaller in size and with fewer resources.

The objectives of improving the economies of member — states through diversified cooperation in trade and commerce and fostering a brotherly and fraternal spirit were the guiding spirit. The emphasis was on peace, justice, dialogue, cooperation, equality and democracy, and thus both in its objectives and membership the D-8 emerged as a global organisation.

The member-states include Pakistan, Bangladesh, Indonesia, Egypt, Iran, Malaysia, Turkey and Nigeria. To give effect to these objectives, the D-8 meets every two years at the summit level. So far Istanbul, Cairo, Dhaka and Tehran have hosted summits. The fifth summit was held in Bali recently. The D-8 secretariat is in Istanbul.

The D-8, though only eight years old, has shown potential unlike other similar organisations. It has become more relevant as a forum in this age of globalisation and terrorism which transcend geographical and religious frontiers. Initial ambivalence regarding the need and rationale of the grouping has now been overcome and the potential of the D-8 as a group of countries to balance the asymmetry and differences between the West and Islam is increasingly being recognised.

The events following 9/11 have underlined the importance of this forum. The statements made by the participating heads of state/government during the recently-held summit in Bali and the strategy adopted to tackle the issues confronting the Muslim world. The Business forum and the trade fair, the two major economic events held concurrently, demonstrated the practical side of D-8 cooperation. The D-8 is being increasingly recognised as an important bridge in the promotion of a constructive engagement and dialogue with the West.

The Bali summit issued a wide-ranging declaration and, besides economic issues, laid particular emphasis on the commitment to “develop alternate and renewable energy resources and the use of nuclear energy for peaceful purposes” and the need to promote dialogue among civilisations, by denouncing terrorism. President Susilo Yudhoyono of Indonesia in his inaugural address urged Muslim nations to build partnerships that could bring back the glorious days in the first millennium when Muslims were at the forefront of scientific advancement. Denouncing terrorism, he observed that Muslims could achieve their objectives peacefully, skillfully and wisely.

The Bali declaration reflected issues that have a profound effect on international relations. As for Islamic unity the references to current issues like terrorism, the cartoon controversy and peaceful nuclear energy found expression in discreet and indirect terms, without being mentioned directly. The declaration underlined the right of freedom of expression, but urged that it be exercised responsibly and not as a pretext for incitement to hatred or insult to another religion.

The declaration also took note of economic issues such as debt, trade and investment. The member-states signed two accords on preferential trade agreement and mutual administrative Assistance in custom matters. Despite possessing 70 per cent of the world’s resources and representing a quarter of the world’s population, our collective contribution to the global economy is insignificant. The volume of trade within Muslim countries is also insignificant. The trade among member-states more than doubled to $33 billion in 2004 from $14.5 billion in 1999, though it reflects only four per cent of the $720 billion among Asean countries. The D-8 has a record of modest achievement, but its moderate and realistic policies inspire faith in the organisation.

The need is for greater commitment to the organisation. Egypt and Bangladesh did not participate at the head-of-state level. Perhaps the attendance at summit level should be made obligatory as in Saarc. Similarly, the D-8 needs to organise itself on the Ecosoc pattern, and concentrate on projects directly related to poverty alleviation and improving the quality of life. It should develop institutional linkages with institutions such as the World Bank, IMF, and the IDB etc. The D-8 countries are by far the most advanced and human resource-rich countries among Muslim states and their comparative advantages and expertise need to be shared with non-member states. Simultaneously, the D-8 should formulate new strategies, policies and concepts to effectively enhance D-8 cooperation and this can be achieved only by strengthening the D-8 secretariat.

Prime minister Shaukat Aziz representing Pakistan in the Bali summit rightly reminded his audience to restructure their economies to benefit from international capital flows and foreign direct investment. Oil rich countries should transfer their capital and investments to capital-deficient Muslim countries. This, in turn, will accelerate the process of economic integration. He also proposed that the D-8 should identify reputed scientific and technological centres in the member-states for promotion of exchange programmes and preferential access to the youth. The phenomenal technological progress, rapid development of communication and information revolution pose new challenges and at the same time offer new opportunities.

The D-8 reflects a shared vision of the Muslim world to promote economic, trade and technological cooperation among member-states, in keeping with the spirit of our times. It needs only commitment and realistic policies to realise its objectives.

The writer is a former ambassador.