Dialogue of the Deaf

 Majyd Aziz

“Hasad ki aag jo seeno mein pai jati hai/Ye aag khud nahi lagti, lagai jati hai” (the fire of envy in the hearts is not self-ignited but measures is lit by others) can best describe the bilateral relationship between South Asia’s two large neighbors, Pakistan and India. On August 14 and 15, 2013, both nations celebrated their own Independence Day with the usual patriotic zeal and fervor. However, this year, the festivities were shrouded in jingoistic outbursts and overarching emotional calls for irrational and virulent measures. The omnipresent media provided fertile ground for pseudo-fanatics to spew out venom over the airwaves. Political activists needed a rabble-rousing justification to get their arsenal ready for the upcoming May 2014 elections in India. Both governments are unable to rein in the ferocious bulls that have played havoc with their china-shop economies. The armed forces need to justify the billions spent on men, machines, and perks. More prominently, both nuclear powers were moving at a faster pace towards liberalization of trade, investment, and facilitation. All in all, the right time for misguided elements to do the Haka, the traditional Maori war-dance.

The recent hostilities at the border and the resultant uncivilized reaction was not unexpected by the business community. Liberalized trade is a fragile commodity and becomes a punching bag for those who are not comfortable with such initiatives. Conventional Wisdom accepts such intrusions and ensuing roadblocks. Nothing new! What is ominous is the fact that while liberal trade facilitation would enable documentation, transparency, and official bilateral trade, the sinister motives of those indulging in informal trade or those who are committing extremist acts or those who fear loss of their privileged positions continue to prevail over all efforts to bring in some sanity in the peace process.

Although it is the firm belief of most of the citizens that peace between Pakistan and India is tantalizingly illusive, there is always the hope and prayer that this quest for peace would not remain illusory forever. It is beyond rationality, it is beyond commercial and economical logic, and it is beyond sensibility why after 66 years it is still a dialogue of the deaf? If one adheres to superstitious beliefs, one could very rightly term it as the sub-continent ritual of ‘kala tika’ (black mark of mascara on face supposedly to ward off evil but also denoting placing a curse).

It was just in recent years that the pronouncements of people in corridors of power were so resplendent with flowery fragrance of confidence and glittering with shiny flecks of optimism that these messages reflected the upbeat mood that it’s time to change the paradigm of conflict. Prime Minister Manmohan Singh stated at the SAARC Conference in Maldives in November 2011 that “the time has come to write a new chapter in India-Pakistan relationship and I am glad the business community is writing this chapter” while then Pakistani Prime Minister expressed optimism at a Indo-Pak moot in Lahore in May 2012 that “the time for prophets of doom and gloom is over.” Even before Premier Nawaz Sharif took oath of office, the signals coming out of Raiwind were positive and pragmatic about the new government’s line of action regarding relations with the eastern neighbor. But, in the immortal words of Margaret Thatcher, “what is to be said has been said, but not everyone has said it.”

Inspite of so much highlighted, as well as surreptitious, animosity and trumpeting of confrontational clarion calls, efforts are undertaken by business leaders, social activists, Track II advocates, and arts and culture supporters, to endeavor to usher in an era of good feelings and reasonableness. The underlying objective is that future generations must not carry the excess baggage of hatred, contentious issues of the past, and a roller-coaster bilateral relationship with scary short stops during the ride. If Berlin Wall can fall down, why can’t the Atari Gate that symbolizes a barrier of rancor, distrust and frenzy not be smashed?

So, what next? Would the gains made in the past couple of years to liberalize trade, to open up investment, and to facilitate people-to-people contacts and movement become victims of chauvinistic brouhaha or would the recurrence of hostile events be downplayed and discouraged? Would political and militaristic issues and thinking continue to dominate channels of communication and actions? Would the denizens of the sub-continent remain vulnerable to fanatical mindset of radicals extremists like Shiv Sena and Lashkar-e-Jangvi? Alas, this is the black and white reality. The frightful legacy this generation may leave for its progeny should titillate the conscience of all who desire to live under the canopy of peace and prosperity.

Is there a way out, many a rational person does ask? This is what those who are in their winter years want to know. If provided an opportunity, many would want to imbibe the aroma of nostalgia by making a trip to their ancestral homes across the border. This is what those who have kith and kin across the border want to know. Emails, Skype or phone calls are middling alternatives for an emotional hug or a heartwarming embrace. This is what enlightened businessmen who understand the dynamics of regional trade want to know. They contend that trade between the two nations is a win-win situation and that free and fair trade would dilute the bitterness and malice that still prevail odiously.

In the Indo-Pak context, untruths are often flaunted as patriotism. India has to remove more cobwebs than Pakistan. Without India, Pakistan is more of a roadside tea junction rather than a crossroads. The sustainability and critical mass of SAARC is primarily dependent on where Pakistan and India stand. SAARC countries are also susceptible to three worldwide trends that impact trade, namely, slowdown in economies, constraints of trade finance, and xenophobic rise of protectionism. Hence, SAARC leaders must eliminate the damnosa hereditas (Latin for a disastrous inheritance that is more problematic than beneficial) that haunts the nearly 1.50 billion Indians and Pakistanis.

Pakistan’s business barons – their role in economic prosperity

Majyd Aziz

Jinnah’s clarion call for Muslims to leave their estates, jobs, and businesses and swear allegiance to the nascent nation motivated millions to chant, “Here we come”. Among the millions were businessmen who left their ancestral abodes and income sources, bundled up families and whatever possessions they could lay their hands on, and crossed the border. Many left thriving businesses and were compelled to working for others. The enterprising among them did not lose heart and immediately got their act together and were open for business.

In those days, trade between Pakistan and India was not subject to Non-Trade Barriers or religious discrimination. Businesses blossomed, opportunities were galore, and inspite of many handicaps, the entrepreneurial spirit continued to flicker. The Korean War presented the momentum to strike gold. Pakistan started developing the industrial base ever since Jinnah laid the Foundation Stone of the first textile mills in SITE Karachi in 1948.

Come 1958 and a military revolution changed the dynamics of the motherland. Though democracy was still decades away from taking revenge, the Ayubian era ushered in an Industrial Revolution across the nation’s landscape. This was also the age of licenses, permits, and sanctions. The centralized economy gave rise to the first stage of cronyism and enabled certain families to maintain a stranglehold on the economy. Gradually, their hold became formidable and it seemed that the rules of business were designed exclusively for the selected few.

Lo and behold! The power and influence of this blue-eyed elite discouraged many budding entrepreneurs to enter the field and so, sadly, many business families and newcomers were not able to enjoy the fruits of this Industrial Revolution. In 1968, Dr Mahbub ul Haq alleged that 22 industrial family groups had come to dominate the economic and financial life of Pakistan and controlled about two-thirds of industrial assets, 80 percent of banking and 79 percent insurance. His allegation at a time when Pakistan was witnessing a superb GDP growth rate of over 6% and exports growing by 8% bewildered the government and came on like a drone attack on the privileged minority, the so-called 22 families.

It is true that monopolies and oligopolies are anathema to a democratic economic order. Notwithstanding this premise, it is pertinent to mention that there are periods when strong-spine entrepreneurs are imperative to develop certain industries, primarily because they have the critical mass to sustain fall-outs. Dr Haq’s comments were not properly understood. He did mean control over, not owning, the assets. Moreover, instead of properly comprehending Dr Haq’s allegations, the social activists started targeting individual families rather than dissecting the whole obsolete economic regime. Instead of demanding change in various laws that encouraged, directly or indirectly, cartels, managing agencies, trusts etc, instead of demanding abolition of antiquated laws on the statute books, and instead of calling for pragmatic and enlightened reforms, whether land reforms, worker reforms, or reforms that may end blatant government patronage, their focus centered on families.

The two consecutive Martial Laws and the 1971 war led to a different political culture.  Z A Bhutto, a man with aristocratic taste and with a superb command over demagoguery, galvanized the peasants, industrial workers, and the downtrodden and used the 22 families mantra with distinction. Nationalization became the hallmark of this regime. It was entirely another story that the nationalization process devastated years of economic progress. Big business was the culprit, they said. Business tycoons were the enemies. The 22 families must be destroyed.  This brouhaha was capitalized by Bhutto and his minions and the dark days of Pakistan’s progress were the manifestation of the economic massacre committed by the pseudo-socialist policies of the regime.

Sanity in Pakistan’s economic development process became apparent when General Zia and his team put into motion certain policies that would remove the cobwebs that had surrounded investment and industrialization. Although his tenure has been branded as one of religious zealotry or draconian decisions, the fact is that businessmen and investors were encouraged.

The fateful plane ride ushered in the tenures of Nawaz Sharif and Benazir Bhutto, each doing two half-baked terms. Sharif talked business opportunities and mega infrastructure projects while Bhutto wanted to shed the stigma of her father’s socialist policies. The 22 families became 2200 families after the elimination of most of the regressive policies of licenses, permits, and sanctions. Privatization became the buzzword, although how it was done left many people with heartburns. Privatization and de-nationalization resulted in the re-emergence of the big boys of business and many units were dropped in their laps since they had clout and influence in the corridors of power.

The Musharraf tenure further emboldened businessmen and the big brokers in stock exchanges too became a potent force. They had cash and they played the stock exchange to their own personal advantage.  The Karachi Stock Exchange became the darling of investors and there was a deluge of foreign funds. The economic managers further vitalized the economy with favorable policies and soon 22,000 families were among the community of business barons. Later, in the regimes of Chaudarys of Gujrat and Zardari clan from Nawabshah, economic policies were formulated amateurishly, haphazardly and, in many cases, detrimental to the common man. The Sharif brothers are back in command and their economic managers are trying to get their feet on the ground.

So, what does this narrative tapers down to? Are there any links between it and the role of big business? What has been the end result? The answers may sound preposterous and maybe far-fetched, but they are evident. Over the past many decades, the business barons dictated many economic policies but these were mostly self-centered rather than universal. However, these policies did introduce capitalization of resources and enabled the country to move forward. But, when the barons were neglected by any ruling junta, the ensuing result was economic disaster. When the tide turned and the barons become the preferred ones, the country again inched towards economic prominence. Still, the question remains not fully answered. What about mainstream business community? What about shop keepers who have shutter power? Do they have any voice? This here then lays the contradiction. The barons and the small business leadership are not on the same page in lobbying for their common interest. It is very much reflected in the divergent views of Pakistan Business Council, a body of 40 mega businesses, and the contention of FPCCI or other Chambers.

There are no easy or laid-back solutions to Pakistan’s economic malaise. A pragmatic approach is for Sharif to convene a two- day Economic Convention where apart from business community, leaders of all political parties, economists, stockbrokers, bankers etc would deliberate and decide on a five-year economic policy that would be owned by all. Business community is the largest stakeholder and it is the businessmen who have the power to provide employment, earn foreign exchange, and be the real ambassadors in the global marketplace. Not just 22 or 2200 or 22000, but each one of them. But then, John D Rockefeller once said: "Just so the wealth of the country, its capital, its credit, must be saved from the predatory poor as well as the predatory rich, but above all from the predatory politician."

Enforce Punishment Sincerely

Majyd Aziz

The word “accountability” has taken prominence in Pakistan ever since President Pervez Musharraf set up the National Accountability Bureau after his 1999 coup d’état. Eight years into his rule, his action against the Chief Justice of the Supreme Court brought up the phrases “judicial activism” and “rule of law” in full stream. Another word that entered the political lexicon was “NRO”. According to Wikipedia: “The National Reconciliation Ordinance (NRO) was a controversial ordinance issued by General Pervez Musharraf, on 5 October 2007. It granted amnesty to politicians, political workers and bureaucrats who were accused of corruption, embezzlement, money laundering, murder, and terrorism between 1 January 1986, and 12 October 1999, the time between two states of martial law in Pakistan. It was declared unconstitutional by the Supreme Court of Pakistan on 16 December 2009, throwing the country into a political crisis.”

Inspite of all this hype about cleansing the mess and also providing justice for a rich tycoon to a daily wage-earner, inspite of extensive media coverage of the highest court, and inspite of determined social media activists, the fact is that a lot is missing in the logical attainment of the rule of law. A disturbing feeling is that society seems to be going from bad to worse and the honest-to-goodness citizens are really in a state of confusion and desolation. The question that bewilders them is that so often there are announcements that NAB has roped in a defaulter or an embezzler or even an infamous and notorious corrupt government official but soon that person is released after imposing a pitiable fine and debarred from a governmental job or disqualified from contesting elections.

The rot becomes more loathsome when, for example, most of the people dealing with any government department know for sure that they have to bribe their way through to attain their objectives, and yet keep silent and thus perpetuating the corruption environment. Even this universal knowledge at times escapes the tentacles of NAB. Officials are aware that they can continue to extract their pound of flesh with impunity because they are confident that “You scratch my back, I scratch your back” works wonderfully and conveniently.

The committing of crimes, whether street-based or whether from offices or fancy estates, becomes more appealing because the gains far out-weigh risks. It is more depressing when corrupt officials, defaulting businessmen, and politicians with unexplained wealth are feted, fawned over, and complimented publicly. A retired Lt Colonel becomes an overnight billionaire and rubs shoulders with the high and mighty while no one questions the source of his wealth. A politician who waited on tables becomes an owner of vast properties at home and abroad just because he hit the right chord within his organization. Stories and anecdotes keep circulating in Stock Exchanges, Chambers, and markets about the corruption rate of various officers. A Customs official very nonchalantly lets out that he has so many millions to invest and needs advice what business should he set up for his none-too-bright son. He lost a bundle in the Dubai real estate debacle but is still chirpy and upbeat because of his family connections in the right quarters.  A lowly officer in a financial institution strikes gold and whizzes his way up the trade and industry ladder, name-dropping on the way, and soon hobnobbing with the rich and famous. Strategically placing himself at the right place with the right people, bounties start falling in his lap, and soon bank write-offs and easy credit availability allows him to shoot for the moon.

Crimes are at their peak. Recently, two high profile murders of brilliant students were committed by scions of the rich and powerful. In one instance, all legal and illegal steps were taken by the murderer’s paterfamilias. Many officials, in sensitive and civilian set-ups, colluded with him and indirectly became abettors. The accused was convicted but no action has been taken on the abettors. In the other case, the law-enforcing agencies are still searching for the uniformed guard who was allegedly ordered by his young employer to pump bullets into the victim. 

Women are routinely assaulted, raped, killed, and blatantly taken advantage of. They are often accused by perverted minds and killed for honor, alongwith a male person, through a shameful medieval custom known in Sindh as karo-kari. More so, children are often victims of pedophile perpetrators all around the country. Child labor and slavery are still rampant inspite of all pronouncements to the contrary.

Pakistan is also victim of terrorists and extremists as well as of those who abhor the very existence of this motherland. They still manage to live in secured surroundings. They commit crimes and walk away scot-free or with minimum punishment. This gives them the critical mass to continue with their nefarious activities. Pressure from influential people, especially from politicians and government officials, and the compliant mentality of those in the judicial system are two reasons for this situation. A lenient punishment becomes the catalyst for further occurrences of such crimes. Sadly, people then get desensitized to the atrocity of the criminals. Will this vicious cycle be broken? Patrick J. Buchanan, an American conservative political commentator and author gives this advice:

"A modern society that outlaws the death penalty does not send a message of reverence for life, but a message of moral confusion. When we outlaw the death penalty, we tell the murderer that, no matter what he may do to innocent people, to those in our custody and care, women, children, old people, still his most treasured possession, his life, is secure. We guarantee it in advance. Just as a nation that declares that nothing will make it go to war finds itself at the mercy of warlike regimes, so a society that will not put the worst of its criminal to death will find itself at the mercy of criminals who have no qualms about putting innocent people to death."

Pensive Mood on Independence Day

Majyd Aziz

August 14. A day etched deep into our souls, the souls of 190 million Pakistanis. A day to bolster our profound commitment to the achievements of the goals, aspirations, and vision of the Founding Fathers. A day to meditate, to contemplate, and to remember. Every citizen of Pakistan celebrates the day as an ultimate reminder of the struggle for Independence from the British Raj. It is on August 14 that Pakistanis forget their privileged ethnicity, their provincial affiliation, and their heart burning prejudiced sensitivities. There are no political party flags fluttering and the only colors visible are the green and white that make up the country's proud standard.

August 14. Preparations for this memorable day begin weeks in advance. The stores and the roadside vendors are fully geared to stock and sell their patriotic wares. The electronic media has chalked out programs to highlight the day and provide dazzling entertainment for the viewers. The marketing departments of newspapers are out soliciting advertisements for the Independence Day supplements. The Press Information Department is busy digging out messages from the President and the Prime Minister from its archives that they would polish, buff, and then send to all newspapers. The motivating vision of the Founder of Pakistan, Muhammad Ali Jinnah, concise and significant, is oft repeated and reminded. His remarkable words, Unity, Faith, and Discipline, are the hallmarks of a true visionary. He was absolutely sure that these three words would, a few decades down the road, ensue into a formidable nation, a unified country, and a prosperous Pakistan.

August 14. Quaid-e-Azam Muhammad Ali Jinnah, the Leader, and Allama Sir Muhammad Iqbal, the Dreamer, are revered by every citizen for it was they who guided the Muslims of British India to persevere, to strive, and to achieve freedom from London. Jinnah, educated at the Lincoln's Inn, and Iqbal, with knowledge gained during his sojourn in Germany, were far-sighted and bold gentlemen. They knew that the economic, political, and social emancipation for the Indian Muslims would only be achieved in an environment where there were no shackles of slavery and no strangulation from the domination of the Hindu juggernaut. Their dream and vision culminated into freedom at midnight on August 14, 1947.

August 14. Sixty six years after Independence, Pakistan has not reached the heights Jinnah had visualized. A belligerent Eastern neighbor not yet reconciled to the fact that Pakistan exists and has made its presence felt globally, a wobbling North Western neighbor still suspicious of Pakistan's role in its sovereignty, a reactionary Western neighbor mindful of the dominance of Pakistan's Sunni majority, and the benevolent Northern neighbor who proudly acclaims Pakistan as its all-weather friend, all have in more ways than one impacted on the sustainability and survival of this Islamic nation. The past events witnessed the separation of the erstwhile East Pakistan from West Pakistan thru a diabolical and Machiavellian conspiracy hatched in Agartala, India, and tacitly supported by forces inimical to the ideals of Pakistan. Moreover, pygmy politicians joining hands with self-centered bureaucrats managed to create havoc and conspired to throttle the prosperity of the country. They waited for Jinnah and Liaquat to die and then they put their satanic game plan into action. The muddle created by them encouraged the protectors of the borders to move the troops out from the cantonments and march towards the capital. Of course, there were intermittent occasions when the façade of democracy was thrust upon the citizens, evidently with damaging ramifications.

August 14. Pakistan's economy has had a checkered history. A centralized, regimented, and controlled economy that favored a selected few restricted the entry of enterprising entrepreneurs and those who had the urge to venture into industry. Licenses, permits, and approvals were sanctioned to the blue-eyed industrialists and this created an appalling wide gap between the so-called 22 families (a term popularized by the late Dr Mahbub ul Haq and used by him in a contemptuous manner) and those who owned SMEs. Zulfiquar Ali Bhutto superbly exploited this frustration when he rallied the nation against these conglomerate moguls and which ensued into the disastrous nationalization action of the first PPP government. Although the Ayubian era was considered as the Decade of Reforms that witnessed massive industrialization, the fact remained that the 22 families savored the cream and the small industrialists resigned themselves to eating crumbs. After the takeover by the Zia-led junta, there was again a flurry of industrial activity and gradually the confidence of industrialists and businessmen was restored.

August 14. Just three days after Independence Day in 1988, Zia, whom Bhutto had appointed as Chief of the Army, incidentally on April Fool's Day 1976, did not pay heed to the warning to stay away from mangoes. His death brought in four short-lived political governments headed twice each by supreme political rivals, Benazir Bhutto and Nawaz Sharif. Calling each other traitors, the two fiddled with democracy and the Treasury. Pakistan became a pauper in the comity of nations and the economy was on a roller coaster ride. The golden period emerged after Musharraf came into the scene and brought his technocrat government to salvage whatever remained of the Islamic Republic. Post 9/11 brought in oodles of manna and soon the country was on the path of economic prosperity mainly due to the foundations set in the first three years of Musharraf's tenure. Freedom to do business. Freedom to set up industry. Freedom of the media. Telecommunication revolution. Incentives to foreign investors. The list goes on.

August 14. The year 2007 saw Musharraf being hijacked by his myopic advisors and the motley crowd known as PML- (Q), led by two cousins from Gujrat and supported by a banker turned pygmy politico on whom Lady Luck smiled and made him a Prime Minister. Calamitous decisions undertaken by the government resulted in the rapid downslide in the popularity of Musharraf. The arrival of Benazir and her assassination at the fag end of 2007 was the last straw that broke the back of this government. PPP, alongwith its allies, formed a coalition government and tried to tackle the rising inflation, the fall in exports, the increase in imports, the dependence on dole from IMF, the infrastructure shortages, the menace of terrorism and extremism, and general discontent. Five years passed with inept, ad hoc, and voodoo economic and financial management putting the country at the precipice of disaster.

August 14. The Independence Day in 2013, one hopes, could be the harbinger of a new age of economic prosperity. But Pakistan is at the mercy of the fury of nature alongwith human mistakes and governmental apathy. The nation is still reeling under the pressure of a messed-up economy. The credibility and trust factor is missing. The advent of a new government has already brought high prices and shortages everywhere, even in this so-called 100-days honeymoon period. This is surely going to be a somber Independence Day following a tough Holy Month. Pakistan’s prosperity is still hostage to vague governmental decisions and priorities.

August 14. The dice is loaded against the government, the stakes are high, and the avenue is full of roadblocks, potholes, and debris. The government is maneuvering to sustain thru ad hoc measures and avowed long term planning conjured up by ignorant and hopeless domestic and foreign-returned consultants. Policies are prepared in an NGO mode rather than oozing with pragmatism. These should have been done when the present rulers were in opposition. What is sorely needed is total focus on the economy and the way to do is to take into confidence the real stakeholders, that is, the business and industrial community. This is the right approach and one that surely works. When will the government listen? The answer, as always, is blowing in the wind.