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DAWN - the Internet Edition


November 03, 2008 Monday Ziqa'ad 4, 1429


Letters







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Capitalism in hot water
Demise of sports
Higher education and our future
Local bodies’ system
Trouble at KU
Confusion between northern and tribal areas
Morons at Shandur & assorted ...
Our economy
Power generation



Capitalism in hot water


THE global economic crisis which primarily exploded because of real state crisis in the US is engulfing the whole world into it. Some financial sector sources have estimated the losses incurred due to the real estate mortgage crisis at $300 billion in the US alone, and another $550 billion outside America.

Therefore, affected nations, particularly rich ones, are pumping billions of dollars into financial markets to restore confidence while ignoring the basic foundation of free market and laissez faire, which capitalists used to hold as something sacrosanct. Whatever efforts capitalists have planned to salvage the system can at best relieve its pain temporarily because the basic foundation of capitalism is weak. Therefore, a patchwork cannot result in any durable solution. There are four factors at the heart of capitalism’s foundation that need to be addressed.

One, curbing of gold as the sole standard for currency by bringing in the dollar as a parallel standard at the end of the Second World War under the Bretton Woods’ agreement and then, finally, replacing gold by the dollar as the monetary standard in the early 70s rendered the global economy susceptible to any economic shock in the US.

This was because currencies of most other countries, if not all, were tied to the dollar instead of gold, even though the value of the dollar bill itself is that it is not more than a piece of paper printed in America.

Even after the advent of euro in the arena, the dollar generally retained its position, as most currencies were tied to it. It is for this reason that unless gold returns as the monetary standard, such economic crises will certainly be repeated.

Any dollar shock will automatically shake the economies of other countries.

Even US policies that impact the dollar will have effects outside of America. Indeed, this can happen with any paper, fiat currency of any influential state.

Two, interest-based loans result in great economic difficulties. Even though the original loan, or principal, gradually decreases with respect to the interest payments, individuals or states are unable to repay loans, in many instances. This results in a loan repayment crisis. Economic activity slows down due to the inability of many, or most, of the middle income bracket to repay loans and this affects production as well.

Three, the system and practices in financial markets and stock exchanges of buying and selling of shares, financial instruments and commodities do not require possession of goods. Rather these are sold and bought many times over, without being actually transferred from the original seller.

This practice is invalid. It causes difficulties rather than solves them, because it inflates and depreciates prices of goods, even though the goods are not in possession. All this triggers shocks in the markets. Thus profits and losses accrue through various speculative means. These may accrue repeatedly, unabated and undiscovered, until an economic crisis ensues.

Four, a very important factor is the complete lack of awareness about the reality of ownership, in both the East and the West. Under the communist/socialist ideology, ownership is vested in the state and under the liberal capitalist ideology, it is held by the private sector with no state intervention, simply because the liberal capitalist ideology promotes free market. This is further compounded and exacerbated by globalisation.

Ignorance of reality leads to such economic crises and tremors. In comparison, the economic system of Islam has looked into this reality comprehensively and defined clearly what can be owned by the state and individuals and what would be kept in public property.

Similarly Islam has established that currency must have intrinsic value behind it in the form of gold and silver. Also, Islam is against the practice of giving loans on interest, trading in futures, speculation and forward selling.

The world is witnessing history in the making; the collapse of capitalism is inevitable since the basic problems are in its foundation. On the contrary, the Islamic economic system is comprehensive and has addressed and treated all economic problems and crises resulting from man’s heartlessness.

MUHAMMAD OSAMA EHTESHAM
Karachi

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Demise of sports


Just like other things in Pakistan, the field of sports has also been on a steady decline. Not long ago Pakistan was a force to reckon with in numerous sporting events: cricket, hockey and squash topping the charts, but serious deficiency of skilled sportsmen to hold the reins of the boards of these sports have led us to the verge of annihilation of sports. Lack of interest by recent governments has rather harmed the cause. Many fake controversies were created in these sports to distract people from focusing on the real issues in promoting sports, which again dented the popularity of these sports among the masses.

Politically-motivated appointments of chairmen for the boards of hockey and cricket – Mr Jamali and Dr Naseem Ashraf, respectively – have hurt these games the most. The exit of the national team from the cricket World Cup at the hands of minnows, Ireland, and the recent performance of the hockey team have been painful experiences for the nation. Once a shining cricket team, which had a bowling attack of superstars such as Wasim Akram, Waqar Younis, Saqlain Mushtaq and other great names, now looks very inadequate

Is there a lack of talent in the country? I think the answer is in the negative as Pakistan has been and will remain the country with best raw talent; and I use the word raw because even a diamond has to be polished before it sparkles. This dearth of young talent, planning, and defective structure, not to mention the abuse of money granted to the boards of these games, has lead us to a point of no return.

It is a matter of concern as to why we haven’t really been able to produce another Wasim Akram, another Hasan Sardar, or Jahangir Khan to step in the shoes of these great names who did Pakistan proud with their magnificent performances. We haven’t used their experience to train our youth. The board officials have been involved in mundane politics instead of asking them to coach raw talent at the grassroots level so that Pakistan could once again gain its former glory in these sports.

But as they say there is always light at the end of the tunnel. The recent sackings of the chairmen of cricket and hockey have given us something more than just hope. The new hierarchy in both the games has apparently been busy flushing out the black sheep in recent weeks from posts of power.

Hopefully the situation will improve and we will be making our way to the stadiums once again to cheer our heroes from the stands, and hopefully some silverware will be delivered to the trophy cabinet in the coming new seasons, but all this needs some serious backing from the government and the local public. I would like to ask sports fans to remain patient and fully support our players and officials if we want our former glory back.

YASSER ALI SHAH
Karachi

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Higher education and our future


I AGREE with Dr Zahoor H. Baber (Oct 24) that the HEC scholarship programme has only increased the brain drain in this country. The scholarship programme, particularly the faculty development programme, should have focused on the institutions that need to be improved.

Distance learning and short-term student exchange programmes should have been encouraged. Instead the HEC is bent on forcing the intellectual manpower of this country into the ‘neverland’ (never return to the land). If you look at the number of successful candidates who have returned to this country, you will be quite shocked.

Let us consider the example of COMSATS Institute of Information Technology (CIIT) that has received considerable proportion of the Rs20 billion that has been doled out to the HEC. It has awarded hundreds of scholarships to its students and faculty members.

However, even after five years of commencement of this programme, only a handful of successful scholars have returned. Those who have been unsuccessful are being threatened with severe monetary retribution. This has forced them to find newer opportunities overseas and never return to their homeland.

This also raises questions about the nature of the agreement that the students are forced to sign. It lays great stress on the final result of the academic programme; however, it fails to consider external influences that may significantly alter the course of studies such as:

— Costs associated with a particular institution/region (all scholars are given a flat rate),

— Status of the scholar at his home institute (student, research associate, faculty member),

— Exchange rate variations that can significantly alter the amount received by a scholar,

— Unavoidable circumstances may force a student to withdraw from a programme (personal and family health-related issues being the most important),

— Standard of the institution that the student has been sent to (a particular institution may consider two refereed publications to be sufficient for a PhD while another may not).

It has been reported that the HEC is seeking a replacement for Dr Ataur Rahman. It is hoped that the new chairman would look into the weaknesses of the current scholarship programme and remedy them at the earliest.

SALIM AHMED
Karachi

(II)

THE news that Dr Atta ur Rehman has resigned for the chairmanship of the Higher Education Commission is sure to have depressed the large number of the Pakistani scientists.

Scientists of his calibre very few in the country. Elsewhere in the world even a scientist after his superannuation is retained to give the benefit of his erudition and long experience.

The president and the prime minister should not accept his resignation as long as a person of his attainments, experience and qualities is not available. If anything is done in a hurry, education will suffer greatly.

M. SHAFIQUE AHMED
Karachi

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Local bodies’ system


SINCE the sinking of the ship of dictatorship, there is perhaps no other issue than the local bodies system on which a lot of national consensus has developed.

Every other person seems to be of the view that the government needs to take some practical steps than buy time by mere show of intentions. The dominant view is for abolition of the local bodies system that has played havoc with the public administration. In my view, local bodies system must be preserved as per the demand of the donor agencies as we need their help. Instead, it must be amended radically in the best interest of good governance.

First and foremost, the magistracy system should be restored that is the best check on law and order, price hike, smuggling, hoarding and violation of traffic rules.

Secondly, due largely to the increased death rates of prisoners in police custody, arrest warrants, presence of magistrates during raids and regular report of the police to the DDO-R, DCO and Divisional Commissioners about law and order must be ensured.

Thirdly, local nazims must ensure that local funds are properly utilised. They may debate annual budget and may give directions to the DCO about work on development projects.

Fourthly, for depoliticising bureaucracy and keeping intact the integrity of bureaucracy, their ACRs/PERs must not be written by nazims.

Fifthly, for making civil servants the true agents of public service by giving them cost-free incentives, the nomenclature of commissioner must be restored. This will also help in making the revamped local bodies a success story because the civil servants will not be adverse to them.

Lastly, for channelling quick orders of the chief ministers and for coordinating district departments, DDO-R and DCOs may be given the responsibility to oversee the working of all such departments.

I strongly believe that only such a system can help us come out of the multiple challenges we are facing today. In the proposed model, even the civil servants will make allout efforts towards the smooth functioning of the local bodies.

SAUD KHAN YOUSAFZAI
Peshawar

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Trouble at KU


THE events that took place in Karachi University recently were unfortunate and served as a warning to the administration to wake up from their slumber and take action.

Violence, disruption of academics and uncertainty should not be the ‘highlight’ of a any state-run university.

After the Aug 26 violence, students were horrified as there was no end to the unnecessary fighting between parochial and interest-oriented groups who don’t even represent students.

We, the students, spent the month of Ramazan in great strain as we had to walk for 20 to 30 minutes in the heat, while fasting, to reach our classes. Many of us arrived late for class or even missed them. The administration did not have enough buses to run shuttles for the students.

The Rangers and security guards allowed the members of student groups to enter the university premises without checking their vehicles, while girl students were not allowed to enter the campus though they were in their vans.

Now again, as the semester is ending, so many things are due and courses need to be finished but these groups, who have no other motive but to create trouble, are forcing students out of classes, harassing employees and ruining the environment.

Therefore, as a senior student of the university, I support and welcome the new academic policy of pre-entry tests so that the academic and disciplinary standard of the university may improve and become more competitive.

As reported in your newspaper (Oct 24), a member of a student group ‘denied involvement of students in a forced boycott and claimed that students voluntarily left classes in support of their demands.

This is wrong. There was a forced boycott, the KU point buses were not allowed to drop off students on Oct 23, and even private vans were told by the student groups not come to the university on

Oct 24.

Where is the KU administration? Don’t they have any responsibilities? How do these student groups (backed by major political parties) have so much power? The KU administration cannot keep turning a blind eye to this. Enough is enough.

A STUDENT
Karachi

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Confusion between northern and tribal areas


THE news item, ‘Pakistan needs to attack militants: US diplomat’ (Oct 24). The newsagency, AFP, quoted a US diplomat as saying: “Pakistan must attack militants in its northern areas and tackle extremists threatening its stability and complicating international efforts in Afghanistan.” One is appalled to note that our media and journalists have scant knowledge of the geography of their country, as does the US diplomat. The news item carried the words ‘northern areas’.

The Northern Areas of Pakistan is the northernmost part of Pakistan and poles apart from the tribal areas. The tribal areas, the scene of the current turmoil and US bombing raids, are situated in the extreme northwest of the country, bordering southwestern Afghanistan, while the Northern Areas, comprising the districts of Diamar, Gilgit, Astor, Ghizar, Ghanche and Skardu (Baltistan), lie in the extreme northeast of the country, bordering China to the north-northeast and India’s Ladakh province to the east, as also India-held Kashmir.

Not only in terms of miles but ethnically and linguistically too, the Northern Areas are world apart from the tribal areas. The people of Northern Areas are as peaceful (and peace-loving) as one could have them be. There’s no insurgency or fighting there. It is unfortunate that some journalists while referring to fighting in Fata and Swat mention it as fighting in the ‘Northern and Tribal Areas’. It is unfortunate to read of Swat and Malamjaba being referred to as being on the Karakoram Highway. They are hundreds of miles away from the highway.

The Northern Areas is the nomenclature for that part of the country which was governed by the Maharaja of Kashmir and announced accession to Pakistan on Nov 1, 1947. This included the states of Hunza and Nagar and the agencies of Gilgit and Baltistan, no connection with the tribal areas whatsoever.

The people of the Northern Areas, who have been denied constitutional rights since their independence from the Dogra rule on Nov 1, 1947, and their unconditional merger with Pakistan, are also racially and culturally totally different from the Pakhtoons of the NWFP or the tribal areas. We, the residents of the Northern Areas, are not Pakhtoons as referred to by the most educated segment of society.

Through these columns the media as a whole is informed that now onwards it should be careful about the difference between the Northern Areas and the tribal areas. I am sure the media would be aware of the dangerous implications such apparently innocuous slips could have on the future of the country. Surely it wouldn’t like to have the Northern Areas occupied or bombed by the US too.

RAJA ZAFAR ALI KHAN
Gilgit, Ghizar district,
Northern Areas

Top



Morons at Shandur & assorted ...


I AM shocked at the language used in the article, ‘Morons at Shandur and assorted idiots’ (Oct 21).

It seems that the writer has tried to settle score of his personal deprivation and frustration with poor Shandur travellers.

In fact, he exposed himself against the subject by indirectly claiming to be the best storyteller were he given a chance on PTV.

He also exposes his bias against the PTV producer who, I believe, rightly advised him against a 25-minute travel documentary for a beginner.

I must remind Mr Rashid that during his days of PTV, people used to be glued to PTV from emblem title music at 4pm till colour bar appears after 12 midnight, not any more sir.

Now people have the choice of more than 50 channels in their remote control.

Embarking on the quixotic idea of making a 25-minute documentary after watching the BBC’s ‘ancient lives’ would be like a layman like me or Lollywood Gujar filmmaker claiming to compete James Cameron — scarce facilities notwithstanding.

I must tell Salman Rashid that he may be a good travel writer but the TV media is a different game all together.

Dawn should not have printed such a personalised attack.

FAYYAZ HYDER MANGI
Karachi

(II)

APROPOS of the article, ‘Morons at Shandur and

assorted idiots’ (Oct 21), I am appalled at the kind of derogative language the writer has used, ‘Two fat morons…”, or man accompanied by “bimbos…”

Salman Rashid may have been author of ‘several travel books’, but he has obviously never produced any documentaries, and watching documentaries certainly makes him no expert on the subject.

TANIA SALEEM
Karachi

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Our economy


THIS is apropos of the statement by President Asif Ali Zardari citing Dubai as an example of growth and criticising the former government for inappropriate spending. One very important aspect which the president overlooked or is perhaps unaware of is oil-rich Abu Dhabi’s backing for its neighbour.

Such a fatherly figure for Pakistan would have done wonders for our country irrespective of the party/personality in power; thus any such ill-conceived remarks should be refrained from as they only work for the embarrassment of our president and the country.

On a different note, according to the news item, “Tareen wants quick removal of KSE ‘floor’ restriction…”, the finance adviser argues in favour of free stock markets.

Being a right-wing, free market proponent I, in principle, agree with Mr Tareen. However, the free market theory is not an all-applicable, win-win formula. Such policies are better adopted keeping local realities in mind. For a country like Pakistan which has a significant retail element in its stock market, it might not be the best idea to remove the floor from the KSE.

In this already volatile economic environment, any downward movement in the market resulting from the ‘floor’ removal is more likely to exacerbate the already low consumer confidence, consequently impacting the real economy.

In my opinion, we would be better off applying the ‘simulated free market’ theory where mild government intervention is present but is rather positive and is only to divert resources to the right channel.

Such policies have worked in many East Asian countries and are worth applying to Pakistan. Keeping current global economic upheaval in mind, it is imperative to remember that free market, complete deregulation and capitalist policies are not always the best.

F. KIDWAI
United Kingdom

Top



Power generation


The present power crisis has brought about a turmoil situation for the economy of this country. It has mainly shot up because the electricity production via hydel power projects is low due to low water levels. Furthermore, water supply to crops has also reduced, resulting in a decrease in all commodities production / agricultural sector. My suggestions are as follow:

a. Why is seawater not being used for desalination purpose and coupled with electricity production? This will allow the water in Tarbela and Mangla dams to be utilised for crops, resulting in an increase in production of commodities.

b. Wind turbines are also a good option but they take more area. However, they can be established at sea and, therefore, save the land, at the same time producing the badly needed electricity.

c. Pakistan is blessed with rich minerals. Multi-billion tons of coal deposits exist in Pakistan and with the passage of time new technologies are emerging. Coal-to-liquid (CTL) technology allows us to convert coal into a fuel for power generation. If the same is focused, we can generate fuel for power plants for more than 100 years, thus eliminating import of diesel and furnace oil worth trillions of dollars.

Why aren’t such hi-tech technologies being addressed by the government and focused to manage the electricity crisis in Pakistan?

I also invite specialists and experts to come forward and mutually lead to a workable solution to this crisis in the supreme interest of Pakistan and I would like to board with them without any reservation.

M. OZAIR AZAM
Karachi

Top





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