Saturday, May 31, 2014

Majyd Aziz quoted in this article published in BusinessLine (The Hindu - from Chennai, India) 20140526


A new awakening?

Rasheeda Bhagat
 
Having the SAARC leaders at his swearing-in has given Modi a head start with neighbours

As the Narendra Modi government was being sworn in at New Delhi on Monday evening, the excitement had already passed from the BJP’s unbelievable victory to Modi’s masterly move in heralding India as a true SAARC leader and scoring a foreign affairs coup even before his government was in the saddle. This he did through the decision to invite SAARC leaders for his swearing-in. 

That this group had heads of two troublesome neighbours — Pakistan and Sri Lanka — made the exercise even more interesting and exciting. As for a full two days the media speculated on whether Pakistan’s Prime Minister Nawaz Sharif would accept Modi’s invitation or not, these questions appeared ludicrous.
Of course Sharif will come, I told whoever asked me. Why wouldn’t he? After all the Sharif of today is a more pragmatic and sober leader than the leader of the late 1990s, who was so unceremoniously thrown out by a Musharraf coup in 1999. 

Lahore bus journey
Soon after the baton passed from the Vajpayee government to the UPA I in 2004, I heard surprisingly disappointed voices in both Karachi and Lahore. There was almost a dirge being sung in Pakistan on the future of Indo-Pak ties. Prime Minister AB Vajpayee’s bus journey to Lahore might have been reciprocated with a Kargil by the treacherous Pakistani Army, but the flamboyant, poetry-quoting and ever-smiling Indian Prime Minister had stolen the hearts of quite a few Pakistanis. 

“If at all India and Pakistan can move towards lasting peace, it can be only during a BJP prime minister’s reign” is the refrain I’ve heard in Pakistan over the last two decades. Their reasoning is simple: the RSS will never allow a Congress-led regime to shake hands with Pakistan. 

Well, after the nightmare of 26/11 unfolded in Mumbai, there was no way a Congress-led UPA could hold any meaningful dialogue with any Pakistan government. Forget the BJP or the RSS, the fury in this country and its people who had watched on their TV screens that horror unfold over three long days, would allow no dialogue with Pakistan.

A leap of faith
That was the past. Coming to the present, while one mostly heard voices of horror in the Pakistani media over an impending Modi victory during the campaign phase, in Karachi, the trade and industry lobby was actually looking forward to a Modi victory. Well before the results came out, Majyd Aziz, former president of the Karachi Chamber of Commerce and Industry (KCCI), had written: “The buzz in the (Pakistani) bazaars and in various trade organisations is that there would be a shift in the Pakistani-specific thinking from Chief Minister Modi to Prime Minister Modi.” 

He had recalled how a KCCI delegation that had met Modi in December 2011 in Ahmedabad had been assured that the Gujarat chief minister wanted cordial relations with Pakistan. “He had even said he was in favour of relaxing visa norms, particularly for travel to the Ajmer dargah. Advising the power-starved Sindh region to follow the Gujarat model of development in infrastructure, drinking water availability and power generation, he had invited Pakistani industrialists to establish textile units in Gujarat, telling them the state had sufficient power and all facilities would be extended to Pak investors.”

So what expectation does he, as a textile industrialist, have from the Modi government now? “As a Pakistani industrialist who has a zealous preference for liberalisation of trade and investment between the two SAARC members, I think India now has a pragmatic, corporate-minded, focused leader who will not sacrifice the economy at the altar of parochial or dynastic politics.”

High expectations
Aziz is willing to ignore the “rhetorical outbursts regurgitated by hawkish elements within the BJP or its fundamentalist allies”. He believes Modi has a “game plan ready to make India an economic powerhouse; he has understood the dynamics of regional economic integration and this was superbly manifested by his landmark invitation to SAARC leaders to attend his swearing-in ceremony. A small step for diplomacy but a giant leap for SAARC trade/investment process.”

How closely a beleaguered Pakistan is watching the new ministry formation in India can be seen from Aziz, an ethnic Gujarati whose parents had migrated from Kathiawar, cheering well before the actual announcement “Modi’s choice of Arun J and Nirmala S in Finance and Commerce”!

At one level, it is scary to note that expectations from the Modi regime are high not only in India but Pakistan too! This is a far cry from Modi’s “Mian Musharraf” days and a significant example of the huge transformation in the BJP leader and his swift journey from being a divisive and polarising leader to the prime minister of a country as diverse and pluralistic as India. 

By a single stroke and a diplomatic coup in inviting the SAARC leaders, including Sri Lankan President Mahinda Rajapakse, sending into a tizzy Tamil Nadu leaders, particularly Chief Minister J Jayalalithaa, who despite her non-NDA status is an ally of sorts, Modi has made a huge symbolic statement. 

One who has travelled in the Indian subcontinent is surely aware how hated India is among its smaller neighbours, including Bangladesh which we had, ironically, “liberated”. All of them call us “big brother”, in other words “big bully”. An Indian Prime Minister who can change that idiom will surely have his name etched memorably in history. Forget India and Indians, Modi, with his overwhelming mandate and such a strong government that is not dependent on any of its allies, has the unique opportunity of taking entire South Asia on the path of development and prosperity even while changing the fortunes of an India that was poised for an economic take-off a few years ago, before it faltered, stumbled and fell off the global radar. 

For almost a decade now Indians have been waiting impatiently for their lives to improve; and what ordinary Indians ask for is not much: a decent education, a decent job, enough food in their homes and the ability to live their lives in dignity, safety and peace. Hopefully in all the pomp and glory and triumph of the colourful swearing-in ceremony, the man who came from a humble background and fought against all odds to reach 7 Race Course Road, will keep his gaze focused on these millions of ordinary Indians even while he ends the policy paralysis that corporate India has been asking for and unshackles the power of a sleeping giant. 

Only then will that giant really awaken. Just like Rabindranath Tagore said: “Where the mind is without fear and the head is held high…into that heaven of freedom my Father, let my country awake.”

Modi and Sharif: Corporate Prime Ministers


Majyd Aziz

“A creative man is motivated by the desire to achieve, not by the desire to beat others” ~ Ayn Rand

I was in New Delhi during the weekend prior to the landmark day when all expectations and anticipations were directed at the next leader of the 1.237 billion Indians. On May 26, billions watched the swearing-in ceremony held at the imposing Rashtrapati Bhavan. Among those present at this momentous occasion, another state leader was also getting special attention. When the oath-taking ended, this personality walked up towards the former and, as the world witnessed, these two leaders warmly shook hands. This historic moment was the real time contact between two Corporate Prime Ministers - - Narendra Damodardas Modi of India and Muhammad Nawaz Sharif of Pakistan. This handshake reflected hopes, aspirations, and optimism. This handshake also had its vociferous detractors who floated their negative vibrations in more ways than one. More prominently, this handshake infused new enthusiasm into the advocacy process that has been jointly undertaken by trade and industry leadership of both the countries.

The May 27 meeting between the two leaders was eagerly awaited. A timeline of 35 minutes was allocated, 10 minutes more than granted to other SAARC leaders. I had jokingly remarked to my hosts and fellow participants that the meeting would cross the allotted time by 10 minutes or more because Modi would offer another glass of Lassi to his esteemed guest. The tété-e-tété took up 50 minutes. This denoted seriousness as well as urgency and both leaders understood it quite well. What is the next phase? Would trade and investment continue to be hostage to other contentious issues that have plagued both neighbors, because, as Sushma Swaraj, the first woman to become External Affairs Minister who alongwith Secretary Sujatha Singh, incidentally a woman, proclaimed that normalization progress is difficult when bombs are bursting in air.

Notwithstanding the braggadocio that has always been the hallmark of spokespersons in Foreign Ministries of both India and Pakistan, notwithstanding the rhetorical outbursts regurgitated by hawkish elements within BJP or by its fundamentalism-oriented allies in India, notwithstanding the vitriolic warnings espoused by self-proclaimed extremists under the banner of pseudo-religious organizations in Pakistan, and notwithstanding the bubbling hype against any thaw in bilateral relations, I am bullish about a Modi Administration and I am of the firm opinion that India has a pragmatic, corporate-minded, focused leader who will not sacrifice the economy at the altar of parochial or dynastic politics. I would venture further and add that the Sharif economic team would also emulate the same vision and, thus, there would be favorable breakthroughs in the coming months regarding more liberalization of trade and removing major roadblocks in the investment scenario in each other’s territory. Modi understands the dynamics of regional economic integration and it was superbly manifested by his invitation to SAARC leaders to attend his swearing-in ceremony. A small step for diplomacy but a giant leap for SAARC trade and investment process.

So how should the course of trade and investment liberalization proceed, now that there are business-oriented heads of government installed, and inspite of the inflammatory slogan mongering or inspite of the venomous balderdash emanating out of the naysayers? Remarkably, various political parties are in harmony with the governments and this has given impetus to the business communities in both the countries to forge ahead and not lose traction. 

Both the Prime Ministers should immediately set up a Joint Task Force to address trade and investment related issues. This body should be alternatively chaired by the Commerce Secretaries and should meet once every month for a two-day caucus in each country’s capital. The members of the Task Force should have a predominant private sector representation as well as from the legal community, customs, and banking sector. Since a composite decision encompassing all issues is not possible in an immediate mode, it is recommended that whatever is mutually agreed should be implemented on a priority basis. 

It is imperative that Pakistan grant Non Discriminatory Market Access, a bureaucrat-conjured euphemism for Most Favored Nation status. This is unnecessarily a thorn in the side and dilly-dallying by Islamabad is reinforcing any point scoring by New Delhi. The granting of NDMA would also enable the business community to demand withdrawal of some of the irritating Non-Trade Tariff Barriers that have vitiated the already mistrusted environment present today. 

The Central Banks, that is Reserve Bank of India and State Bank of Pakistan, are presumably on the same page when it comes to allowing deserving banks to set up branches across the border. The right announcements have been made and the banks are waiting for the green signal. At this moment in time, any delay in this process of providing financial infrastructure facilitation is affecting enhancement in trade and at the same time increasing the cost of trade transactions. It is hoped that the mutually agreed decision is implemented so that local banks, depending on their own network, are allowed to commence cross-border banking business.

The jamming of mobile phone signals at the borders is also a sore point and there is no justification for denying mobile communication connectivity. Whatever may be the security concerns, the fact is that cellphones from third country service-providers are routinely used by those citizens or foreigners who have roaming facility. It is time to come out of a xenophobic mentality and enter the global age of freedom.

Both the Prime Ministers must ensure that trade facilitation is best done if more than one channel of passage are available. The present situation is locked on to the Wagah-Attari channel. This is discriminatory and reflects a discriminatory mindset of the policymakers. Businessmen from Sindh, Rajasthan, Gujarat and Maharashtra, for example, are demanding the opening of the Munabao-Khokhrapar route as well as opening of Deputy High Commissions in Mumbai and Karachi. Untenable and ludicrous excuses are always proffered whenever these issues are discussed or demanded. The delay in opening of DHCs and the Munabao-Khokhrapar route are adding to the cost of products as well as cost of travel and creating delays in movement of goods as well as people. 

The onus also lies on the representative bodies of the business communities of India and Pakistan to become game changers. It is now incumbent upon Confederation of Indian Industries, Federation of Indian Chambers of Commerce and Industry, Federation of Pakistan Chambers of Commerce and Industry, and to some extent the SAARC Chamber of Commerce and Industry to use their critical mass to bring about a paradigm shift. There is need for a revisit of the composition of SAARC CCI since it needs revitalization and introduction of a new, young and dynamic leadership. This is imperative if this apex body representing business and industrial community of all eight countries desires to be the catalyst of change.

More importantly, it is essential for the private sector to provide strength to the two political leaders to steer in vibrancy in their economic agendas. Four or five years of determination may be the answer to reduction of poverty, providing income opportunities, enabling prosperity, and most important of all, ushering in an era of peace and friendship in the sub-continent.  Iqbal Azeem, the late Karachi-based poet very vividly put it:
Koi Bataai Ke Manzil Ka Kya Qasoor, Iqbal
Humeen Ne Raah Mein Deewar Khud Kharri Ker Li