Monday, April 14, 2014

Disney takes the Mickey out of Pakistan

Majyd Aziz

“Mickey Mouse is a funny animal cartoon character and the official mascot of The Walt Disney Company. He was created by Walt Disney and Ub Iwerks at the Walt Disney Studios in 1928. An anthropomorphic mouse who typically wears red shorts, large yellow shoes, and white gloves, Mickey has become one of the most recognizable cartoon characters in the world.” ~ Wikipedia
Walt Disney took an animal that is usually found in filth, in dirty holes, and in polluted sewers and transformed it into an intelligent, endearing and adorable icon loved by millions of children and even adults. Mickey Mouse is 86 years old, and the company he and his fellow cartoon characters “represent” all over the globe is the largest in terms of appointing licensees and vendors for various products that proudly carry the Disney logo.
The Walt Disney Company has an enlightened and focused approach towards its Corporate Social Responsibility policies. According to its official website, “it is committed to act and create in an ethical manner.  This commitment is essential in maintaining the value and unique appeal of the Disney brand for the benefit of our shareholders, our employees, our business partners and, most importantly, our customers around the world.  This commitment extends to our own operations and to the independent licensees, vendors, and facilities involved in the production and distribution of Disney-branded consumer products. . . . We have long recognized the great challenges this vast extended supply chain creates in working to ensure that the consumer products bearing our brands meet our expectations for the highest ethical standards and highest quality.
Disney has licensees and vendors in many countries. It has a very strict monitoring system and also relies on International Labor Organization and International Finance Corporation standards under their Better Work program.  The Permitted Sourcing Countries Policy is a refined method and enables Disney to effectively manage and to ensure an ethical conduct by all in the supply chain. However, this does not mean that Disney gives a carte blanche to all those desirous of becoming official licensees or vendors. In fact, Disney does not do business in forty-four countries that do not qualify above the threshold of 25 points under the World Governance Index. Countries like Zambia, Mongolia and even Burkina Faso qualify but now Pakistan has been removed from the list of Permitted Sourcing Countries.
The Disney announcement did not spring up overnight. The warning signals were sent over a year ago to the licensees and vendors in Pakistan citing safety standards of workers in the supply chain. The decision was prompted by the 24 November 2012 fire at the Tazreen Fashions Factory in Bangladesh's capital Dhaka that killed 117 people and injured over 200 and another fire on 11 September 2012 in Baldia, Karachi Pakistan where 262 garment workers lost their lives and 600 workers were injured. The licensees and vendors in Pakistan claim an annual Disney business in excess of $200 million and these are big names in the textile sector. They have assiduously worked hard to adhere to the rigid and tough standards and policies of Disney and it is to their credit that they have prospered.
Unfortunately, the lackadaisical attitude of government functionaries and the laid-back manner in which global conditionalities are considered by the bureaucracy have brought Pakistan nothing but shame and blame. The Pakistani officialdom does not comprehend the intricacies of a nut-and-bolt methodology of the international brands that have to adhere to the progressive demands of their customers on a priority. This is no IMF or World Bank dictation that these officials conveniently side-step or evade. International evaluation, such as the Disney decision, is the core issue that cannot be disregarded. It is pathetic that most of the government officials who deal with labor standards, who do not miss a single opportunity to go on ILO junkets or conferences, are totally oblivious of the ramifications of the Disney decision. It is a sad fact that the big names in the textile industry have to run from pillar to post to convince the policymakers to get on the ball and right the wrong.
Mr S M Muneer, the well-known tycoon, has taken up the mantle of CEO of TDAP. The ball is now in his court. He must get a detailed orientation from the affected licensees and vendors as to what went haywire. Then he should bring on the carpet all those irresponsible officials for their lax and nonchalant behavior. For crying out loud, thousands of jobs and the country’s image are on stake and the financial consequences for those who toil to manufacture quality products would be unbearable and devastating. The leaders of the textile sector have to get their act together. One is not sure how much personal lobbying they did with the Disney people. News reports reveal that even Pakistan’s Ambassador to the United States, Jalil Abbas Jilani, did attempt individual intervention but he was not able to get Disney to review the decision.
This writer has been advocating for many years that the Pakistani private sector must create a Lobbying Fund and must appoint lobbyists in Washington to work on the policymakers there as well as in Congress. There is a need for a pro-active approach but the private sector is wanting in this field. Yes, some Pakistani companies or groups do have their own lobbyists and pay a retainer accordingly, but there has never been a sustained and organized institutional approach in understanding and lobbying within the right circles in Washington. Sadly, the many representative bodies of the Pakistani Diaspora in USA have also been delinquent in this respect. The prime reasons being ego-trips and protecting own turfs. Lessons should be learned from how the Indians and Bangladeshi private sector work the ropes in Washington.
Pakistan may have to wait for a year or two, once ILO does the necessary inspection and certification of Pakistan under the Better Work program. Till then, the government and private sector need to do some serious introspection. Meantime, I have prepared the Appeal for the licensees and vendors for newspapers. I have also sent the following comment to NEWSPOST of The News International: “It seems that Mickey Mouse has made the Pakistan government look like Goofy, who is not sure where he is going, and the exporters made to look like Donald Duck, the Walt Disney icon who does not wear any bottoms"

 MOCK MEDIA ADVERTISEMENT PREPARED BY MAJYD AZIZ

Sunday, April 13, 2014

Modi Magic in Indo-Pakistan Trade

Majyd Aziz

A Pakistani industrialist is sanguine that Narendra Modi will infuse new life in Indo-Pak trade and investment regime and transform the present scenario of policy paralysis and lack of optimism into more bang for the buck.


“For now it is Modi, Modi, Modi for me. For the country, actually.” Jitender Singh, a 38-year-old rickshaw driver in a purple turban in the old part of Delhi, commented to a news agency. Singh, one of the 814 million legitimate voters, is going to take part in this nine-stage polling process for elections of 543 members of the Lok Sabha. The Bharatiya Janata Party is leading the pack and the projections are that BJP is on its way to form the government, albeit with support from smaller as well as regional parties who are more inclined towards the BJP ideology. All eyes are, therefore, on the now possibility of the Gujarat Chief Minister, Narendra Modi, taking over the mantle from Manmohan Singh.

The various analysts and commentators on Pakistan’s electronic media and in their columns in the national newspapers generally opine that things would be rough for Pakistan once Modi settles into the driving seat at 7, Race Course Road in New Delhi. Usually they give more importance to the rhetorical balderdash regurgitated by Amit Shah and his ilk who maintain their aggressive posture at most of the campaign rallies. They also routinely refer to anti-Pakistan and anti-China statements of Modi to prove their point. Most of them bring up the 27 February 2002 burning of the train and the ensuing carnage that swept through the Muslim-dominated areas of Gujarat where upto 2000 Muslims were massacred by violent mobs. They fear the revival of anti-Muslim hysteria once the National Democratic Alliance commences its tenure. Hardliners in Pakistan foresee enhanced religious polarization and they are focusing on propagation that the Muslim population in India would be dangerously subject to the Hindu fundamentalist upsurge.

The business community of Pakistan, most of whose leaders are gung-ho about liberalization of trade and investment with India, are, for the first time, discussing, watching, and trying to understand the dynamics of the Indian election process and especially the ramifications of a Modi government. The buzz in the bazaars and in various trade organizations is that there would be a shift in the Pakistani-specific thinking of Chief Minister Modi and Prime Minister Modi. The enlightened businessmen are of the opinion that the trade liberalization process would withstand the present mantra of some BJP leaders during the campaign where foreign policy, national security, and religion are clubbed together, and aspersions and insinuations are cast on India’s western neighbor. The Indian Election Commission has rightly issued a gag order against Amit Shah in response to opposition petitions that he was “poisoning the atmosphere with communal invectives against Muslims.” This is a manifestation of maintaining the secular principles over prejudiced or intolerant attacks on a religious minority.

The businessmen and industrialists of Karachi Chamber of Commerce and Industry take cognizance of the reciprocity extended by Modi when a KCCI delegation met him in Dec 2011 in Ahmadabad. According to news reports and interviews with some delegation members, Modi assured them that he is in favor of cordial relations with Pakistan. He wants to help Pakistan out of its power crisis, especially in Sindh.” He advised the delegates that “Sindh could follow the ‘Gujarat Model’ for development of infrastructure, drinking water availability and power generation.” The delegation members said that “inspite of whatever Pakistan may think about Modi, he was in favor of the fact that procedure to get visas should be relaxed for Pakistanis wanting to visit Ajmer Sharif shrine. Modi informed them that instead of inviting Foreign Direct Investment, it is better to improve trade ties with Pakistan and he invited Pakistani industrialists to establish textile units in Gujarat. He said provision of energy is not an issue in Gujarat and all facilities would be extended to Pakistani investors.” This invitation was given despite the then Pakistan-specific clause of Reserve Bank of India prohibiting investment from Pakistan and Indian investment across the border. This offer and this assurance reflect a different Modi than the political demagoguery at campaign rallies and whistle-stops.

Another factor that Pakistani businessmen note on a positive scale is the influence of India’s mega tycoons who are reported to be heavily bankrolling the BJP campaign. The iconic photo of Modi bear-hugging Mukesh Ambani at the Vibrant Gujarat Summit 2013 is taken as a reflection of the close nexus between him and the moneybags of India. The Ambanis, the Godrejs, the Mittals, the Manjals, and the Bajajs, et al, are strong proponents of Indo-Pak trade and investment. Yasin Siddik, the dynamic Chairman of the powerful All Pakistan Textile Mills Association, is highly optimistic when he remarked to an Indian journal that “Congress has been conservative in its approach and things are moving very slowly. If BJP comes into power, they may take a few bold steps that may boost trade”. The pragmatism of Modi is also succinctly noticeable when someone asked him when he would distribute free laptops in Gujarat. He replied, "I will give them jobs so that they can buy laptops." This is the constructive perception that Pakistani businessmen see in Modi’s thinking process.

The Pakistani businessmen have openly supported granting the status of Most Favored Nation to India. However, Islamabad, sensing the sensitivities of the misconceived connotations of MFN, changed the nomenclature to a more palatable Non Discriminatory Market Access. Yet, the dilly-dallying continues, there is again an aborted take-off, and the issue side-stepped with a terse declaration that once the new government in New Delhi is ready to talk on comprehensive bilateral issues, the NDMA will become operative.

The business community of India and Pakistan must not remain prisoners of history nor should they ignore the fact that over six decades have gone by and the peace dividend has yet to be encashed. There are powerful forces on both sides of the border who continue to demonize the trade liberalization process. At the same time, emotions and sensationalism reach a high crescendo whenever negative episodes occur. It seems that the bilateral relationship swings between nostalgia and deadlock. The weeds of neglect and contempt are still on the railroad tracks and the cobwebs of distrust and conflict are visible on the ceilings. The businessmen must become energetic game changers in a more prominent way to get the myriad roadblocks on the motorway of trade liberalization removed. The conferences and conclaves are great public relation extravaganzas but there is no vigorous determination to achieve nuts and bolts solutions. Are the denizens of the sub-continent waiting for divine interventions or are they ready for a regional paradigm shift on a fast track? A lot needs to be done, more goodwill needs to be created, and Narendra Modi can transform the illusive, but inevitable, into a black and white reality. Lord Buddha said, “As a solid rock is not shaken by a strong wind, so wise persons remain unaffected by praise or criticism.”

Thursday, April 10, 2014

South Asians: Destined to be Underprivileged

Majyd Aziz

“To me, a world without poverty means that every person would have the ability to take care of his or her own basic life needs. In such a world, nobody would die of hunger or suffer from malnutrition. This is the goal world leaders have been calling for, for decades, but have never set out any way of achieving it.” Muhammad Yunus, Founder of Grameen Bank, in his autobiography “Banker to the Poor”, a copy that he signed for this writer in Karachi in December 2009.

The idealistic belief of the Bangladeshi icon reflects the established opinion that an improved, committed and comprehensive poverty reduction strategy needs to be orchestrated to progress towards achieving this objective. The political and military hierarchies of the eight South Asian nations have to come out of their self-built rabbit holes and realize the impact that deprivation, abandonment and marginalization have had on a very large segment among the denizens. If compared to regional blocs, such as ASEAN, NAFTA, EU or even MERCOSUR, the situation of SAARC is akin to a ramshackle shanty while these other blocs portray a palatial edifice, with well-manicured gardens, ebullient lighting, and residents having rosy cheeks.

The aim here is not to denigrate or belittle a region having 1.60 billion people but to highlight the glaring shortcomings and lack of opportunities that this population bulge suffers from. Income-based poverty alone is not the sole criterion to evaluate the multidimensional magnitude of poverty. Poverty has many facets that are recognized as essential components encompassing many structures of human insufficiencies. The fundamental right of each person is to have access to universal education, livable residential facility, basic health services, safe drinking water, sanitation, fair and fast justice, and even a constitutionally defined right of enfranchisement. This then is where three significant points should be discussed:

1. Despite the large population of poor in South Asia, the expenditure on development in the region continues to be very low.
Economic development is imperative for achieving any country’s objectives of equality and participation in the comity of nations, for building up a formidable military force, for the health and welfare of the citizens, for a workable and competent authority in the affairs of the country,  and for the preservation of national, cultural and ethnic history and traditions. South Asian nations have suffered the ignominy of being in the center of external and domestic conflicts, whether hard-core secessionism or extremism, or bitter political polarization that often transcended all civil and social norms, or even the loss of people’s faith in government as a whole over the last many decades.

SAARC countries today have surely achieved new heights of prosperity that is apparent in the collective sense but the underlying discontentment among the populace is that the benefits of the formation of SAARC or attaining a democratic political dispensation or becoming stronger economic entities or attracting global attention have not trickled down to the masses. This growing feeling of lack of care and outright neglect has not abated.

A disturbing point lies in the procedure that allows elected representatives to obtain maximum political advantage through lobbying for what are usually referred to as pork-barrel projects. The mantra of you scratch my back, I scratch yours has been institutionalized in developing countries too and this has ensued into a haphazard and injudicious resource allocation. Ergo, developments in certain areas get precedence over the legitimate rights of areas or constituencies that are not in the good books of the ruling clique.

2. SAARC countries spend the bulk of their budgets on purchasing weapons. They are poor but their military spending is much more than that of developed countries.
A potent, well-trained, and fully-equipped military establishment is always a nation’s pride. It is imperative that national security is not sacrificed or put at risk just because there is rhetorical opposition from various sectors. Take Pakistan for example. Notwithstanding the periodic imposition of a military-led government, the influence and authority of the military establishment has always remained paramount. International events and dependence on external largesse and financial support brought Pakistan in the frontline of war against terror on the western borders even when the volatile eastern border involved the deployment of substantial troops.

However, it is sensible for countries to determine what should be the equitable allocation for defence spending. It should be determined, in existing circumstances of each country, the optimum amount of military expenditure that will not destabilize the foundations of economic growth and put at risk the prospects of raising the living standards of its population. Conventional wisdom dictates that there must be the right mix of economic and military spending when formulating the national budget. The decision makers have to be on the level when determining between high priorities of military requirements and longer term economic security. This is a vivid message for policymakers in SAARC capitals to absorb

The time now is for SAARC political and military hierarchies to stop playing the Curzonian "Great Games" in the region and instead focus on bonding regional and economic cooperation. George Curzon was Viceroy of India two centuries ago. The SAARC denizens want deliverance from the economic malaise and despondency. A glance at the population and military spending of SAARC countries points out the awesome allocation for defence.

Country
Population (Millions) 2012
Defence Allocation (US$ Billions)
Afghanistan
    30.00
11.500
Bangladesh
  155.00
  1.600
Bhutan
      0.75
  0.014
India
1237.00
46.000
Maldives
       0.35
   0.045
Nepal
     27.00
   0.210
Pakistan
   180.00
   7.000
Sri Lanka
     21.00
   1.500                      
Total
1652.10
  67.869
 
3. What are civil society organizations, social movements and people’s networks doing to fight the structural causes of poverty and social injustices in the region and beyond?
The altruism of a large number of socially-oriented organizations in SAARC, working for the overall good of the region, has been recognized as achievements of a non-official Track II initiative. However, most of the NGOs are exclusive to their own countries and spearhead projects with resources from domestic support or through grants from international organizations. Primarily, these NGOs endeavor to offer pro-poor projects that are targeted to defined sectors or groups. SAARC can boast of the splendid work being done by Edhi Foundation of Pakistan, Indian Council for Social Welfare, BRAC of Bangladesh, Sarvodaya Shramadana Movement in Sri Lanka, Rural Women's Network Nepal (RUWON Nepal), Tarayana Foundation in Bhutan, or Welfare Association for the Development of Afghanistan (WADAN) to name a few. 

The fact is that mainly due to the abdication of responsibilities by the governments, either through bureaucratic or political compulsions, or either through misallocation of financial resources, or even through lack of concern by the decision makers, the onus has been put in the courts of dedicated NGOs to take up the mantle. This is the unfortunate negative and incomprehensible aspect of any country’s governance. Decades of bombastic rhetoric, corruption, and ill-conceived policies and schemes have played havoc with the destiny of the SAARC population. 

It is obligatory upon the governments to prioritize their policies for the poor. The yoke of poverty can best be removed through a concerted undertaking by all stakeholders. This is where the NGOs become the game changers. This is where civil society can have a deciding and powerful voice. This is where a radical shift is achieved in the quality of life of the citizens. This connection is still missing due to vested interests and diversity of views. 

In a nutshell, the poverty reduction strategy should be pro-poor in its most profound sense and should be designed to provide a sustained economic growth, availability and affordability of social infrastructure, a transparent social safety net mechanism, and enabling the capacity building and empowerment of all income groups and segments of society. There is no need for a foreign-prepared recipe. All elements of the strategy should be indigenous and must be owned and accepted by everyone.

A poignant message for all political leaders is the declaration of Caliph Omar that “if a dog dies hungry on the banks of the River Euphrates, Omar will be responsible for dereliction of duty.” Alas, this is 2014 and the SAARC political leadership leaves much to be desired.