Criterion April/June 2010 Volume 5, Number 2 Pakistan and Nature of the State: Revisionism, Jihad and Governance Khaled Ahmed 3 A.G. Noorani 22 Religion and State in Pakistan Iqbal Ahmad Khan 42 Nuclear Politics and South Asia S. Iftikhar Murshed 60 Taimur Khilji 87 Jinnah’s 11 August, 1947 Speech Asia Rising? Inequality and Patterns of Growth in Asia Essays Pakistan’s Economy on the Razor’s Edge: Reform Imperatives Zubair Iqbal 137 Mountain & Glacier Response to Climate Change Impact of Transnational Media on Broadcastng in Pakistan The Future of Small Scale Enterprises Aisha Khan 150 Hamid Raza Khan 163 Shahid Kardar 179 PAKISTAN AND NATURE OF THE STATE: REVISIONISM, JIHAD AND GOVERNANCE Khaled Ahmed* Abstract (Threat perceptions are produced by the mind. National strategies are produced by imagination on the basis of nationalism and geopolitical compulsions. Threats have to be imagined so that armies can be trained and weapons acquired accordingly. Some states have fixed enemies. All dangers are to be interpreted on the yardstick of this fixed enmity. Other nations are flexible and keep changing their perceptions of threat. It can be Russia today and China tomorrow. External threats can be “created” to distract from internal threats. Pakistan’s permanent danger is supposed to be from India. As a challenger state it is supposed to endanger India to a point where it relents on Kashmir. But the strategy of endangering India has its reverse side, that of an anticipation of counter-threat. From early days, Pakistan endangered India in its tribal northwest. India endangered Pakistan in its tribal Balochistan. Starting 1990, Pakistan enhanced its capacity to endanger. After that Pakistan and India went into a whirlwind of action and reaction. Today it is difficult for most Pakistanis indoctrinated by the media to see who endangers first and who is merely “reactive.” Author.) The course of democracy has never run smooth in Pakistan. Every time the state is ruled by a dictator, the urge for democratic governance increases. Yet, each democratic interregnum has unfolded amid controversy and wrangling till it is no longer tolerable for the * Khaled Ahmed is Director, South Asia Free Media Association, Lahore. Khaled Ahmed state. Ironically, looking back, scholars find only the periods of nondemocratic rule more economically successful. The normal state of the state in Pakistan appears therefore to be non-democratic. While the variations in the mode of governance introduced by dictators to achieve acceptance and legitimacy have been studied, there is still space for studying the changing nature of the state itself.1 After the creation of Pakistan in 1947, Pakistan faced many problems associated with newly independent states in history. Two of them, lack of funds and opposition from India, later became a part of its nationalism, again in line with nationalisms in history: the consciousness of a “painful birth.” The most significant factor in this consciousness was the war with India over Kashmir. It determined the nature of Pakistani nationalism at an early stage. The unspoken “mission statement” of Pakistan became based on “revisionism” positing “injustice” of the annexation of Kashmir by India and promising its reclamation through a “just war.” Like other states, nationalism determined the nature of the “revisionist” state in Pakistan. All the classical features associated with nationalism were there: India was designated as the “enemy state” whose survival meant end of the survival of Pakistan because India was not reconciled to the existence of Pakistan; the use of the “external enemy” as the cementing factor inside a multi-ethnic Pakistan.2 From the expenditures made on defence in the first 25 years, one can say that this revisionist doctrine embedded inside Pakistani nationalism invested the Pakistan army with special importance. Over time, this developed into an institutional supremacy that periodically becomes contentious. Pakistani revisionism placed a tough task on the army and shaped its outlook for years to come. It was required to challenge a state many times larger than Pakistan, a state it could not win a war against or annex as a trophy of war. Since these factors of “fundamental inequality” normally determine the strategy of an army, strategy was discarded by the Pakistan army to enable it to challenge the Indian army tactically. In consequence, the Pakistan army became a “tactical” organisation whose officers had more panache than intellect, in line with the Islamic concept of jihad that relied on faith rather than on the calculus of relative military 4 CRITERION – Volume 5 No.2 Pakistan and Nature of the State: Revisionism, Jihad and Governance power. It fought “niche” or “set-piece” wars with India on the basis of Pakistan’s revisionist nationalism with results that could be interpreted vaguely as victories. The Cold War era helped Pakistan to continue adherence to its nationalism which also meant yielding paramountcy to the army. The army “took over” every time it needed to remind the civilian leaders that they had reneged on nationalism. Every time it took over it also touched base with its own “tactical” nature and provoked war with India. The fall of East Pakistan should have shaken Pakistan out of the groove of its revisionist thinking, but it encouraged revanchism instead. Under civilian rule the army was once again strengthened by this instinct for revenge. The nationalist myth of binding the nation on the basis of the “external enemy” began to fall apart. Communities inside Pakistan that had suffered because of Pakistan’s excessive attention to the “Indian threat” began to challenge the civilian rule. Another aspect of Pakistani nationalism was its ideology, based on Islam but in no small measure propelled by a desire to differentiate Pakistan from India and prevent its “relapse” into India. Islamic governance, based on the doctrine of non-separation of state and church, became an early intellectual challenge but could not be resolved through creative re-interpretation. The army, already in the habit of using tribal lashkars or non-state actors in national wars with India, consolidated Pakistan’s nationalism by adding to it the element of religion. It became the guardian of frontiers as well as ideology. This was completely in tune with the Pakistan’s post-1947 Muslim ethos. After the 1971 war in East Pakistan, the Pakistan army seriously inducted the concept of the non-state actors into its tactical philosophy of “death by a thousand cuts” on the presumption that India was already in the process of falling apart.3 Jihad and creation of ‘ungoverned spaces’ The induction of jihad into national war had its consequences for the sovereignty of the state and its “monopoly of violence.” The formation of jihadi militias and their location within civil society after their military CRITERION – April/June 2010 5 Khaled Ahmed training tended to create multiple centres of power in Pakistan. Because of this new phenomenon, the first fissures of loyalty within the Pakistan army made their appearance. For the first time, during the war in Afghanistan against the Soviet Union, a kind of “reverse-indoctrination” in favour of the mujahideen became observable inside the army: the “handlers” became won over to the cause of jihad in supersession of the authority of the state. What comes first: Islam or the state? By the 1990s, public discussions showed that that more and more Pakistanis were inclined to say that they were Muslims first and Pakistanis later.4 In the 2000s, because of the proliferation of madrassas as nurseries of jihad and as intellectual guides for the common man, the TV channels began to reflect this subordination of the state as an accepted value in Pakistan. Pakistan always had “ungoverned spaces” on its territory. This is where the non-state actors came from in the 1947, 1965 and 1999 wars against India. It is moot whether the retention of these territories was propelled by the “civilian” desire to preserve the traditional way of life of the tribes or the “military” need to obtain non-state actors. However after the Afghan war, in which Pakistan participated covertly together with the United States and its other allies, expanded these ungoverned spaces and brought them into the settled areas. The madrassas network, aided by the mujahideen militias, partook of the sovereignty of the state, benefited from the additional centres of power they increasingly represented. Allegiance of the army officer became divided and he began to show more loyalty to the Islamic warrior he was handling than to the Pakistan army.5 The rise of the “ungoverned spaces” as bastions of jihadi power after 2001 began another process: the tribalisation of Pakistan’s settled areas and the retreat of state governance from the provinces. This new trend in the Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) was carried on the Islamic demand for sharia that challenged the Constitution of Pakistan and its implementation of sharia through the Federal Shariat Court. The jihadi sharia was based on the enforcement of “marufaat” – not in the Constitution - as well as the punishment of “munkiraat” – contained 6 CRITERION – Volume 5 No.2 Pakistan and Nature of the State: Revisionism, Jihad and Governance in the Constitution. By 2005, all the clergy in Pakistan, including the non-jihadi section, believed in the enforcement of “marufaat” and thus indirectly rejected the Constitution. Tribalisation of Pakistan was now quite visible as suicide-bombing shifted to the cities. The NWFP did not only lose the Malakand region of PATA, it lost most of the cities outside Peshawar to the Taliban, including important military and air force bases in Kohat and Bannu.6 There are two trends that set Pakistan apart from the Third World norm as a state with problems specific to itself: its permissive stance towards the expansion of “ungoverned spaces” and its acquisition of nuclear weapons. Both incidentally favoured the environment of jihad at the expense of the sovereignty of the state since jihad was fought by non-state actors. The acquisition of nuclear weapons was actually more suited to Pakistan as a revisionist state vis-à-vis India than to India which had renounced revisionism vis-à-vis China. (Why India did not choose to challenge China, many times more powerful than itself, makes for a separate study reflecting non-dominance of the Indian army in the state because of the nature of Indian nationalism.) The “niche” war doctrine of Pakistan army could now be carried out under a nuclear umbrella. After failing to tackle aggression after bilateral nuclearisation, India has now decided to confront Pakistan with Pakistan’s own concept of “limited war.”7 Sacrifice of governance for national security While external sovereignty of the state is a myth, no state can exist without internal sovereignty. Before the 20th century international order became consolidated, the only measure of a state’s existence was its writ: its ability of governance over territory it claimed, including taxation and law and order. The adoption of jihad by the state was directly instrumental in the gradual deprivation of the writ of the state. It began in Balochistan and the Tribal Areas and crept into the cities in the shape of “no-go” areas. Balochistan suffered as a province owing to many factors but not least because Pakistan’s security concerns were focused more on the eastern border; and its only concern for Balochistan was expressed through the presence there of the Pakistan army and Frontier CRITERION – April/June 2010 7 Khaled Ahmed Constabulary (FC). The political consensus in Balochistan today is against the presence of the police, against the presence of the army and the FC, clearly a signalling for a status far beyond the confines of federalism. And when India decided in favour of “limited war” with Pakistan it opted for activism in Balochistan. Governance depends on the writ of the state which precedes governance. Governance in regions without writ of the state or writ shared with non-state actors will be flawed. In the Tribal Areas and in Malakand for at least two years, the local infrastructure was not in the control of the state, there was no law and order and people could survive only by renouncing their loyalty to the state of Pakistan. In Balochistan, the infrastructure is under challenge and assets of the federal state are unprotected despite the presence there of the army and its paramilitary adjuncts. The police is either non-existent outside Quetta and some other cities or under challenge from the system of levies the Baloch leaders favour. Private armies are the norm and the only order that works is the law of deterrence and intimidation. If you add up Balochistan, the Tribal Areas of FATA and PATA plus most cities of the NWFP, the no-go areas of Sindh and the city of Karachi, and an increasing thinning of the state in South Punjab, you come up with nearly 60 percent of Pakistan without proper governance, or areas where governance is not possible because of the weakness of the writ of the state. Governance, at the primitive level, means law and order. After that comes the ability to collect taxes, especially direct taxes linked to people’s incomes; tax collection is also an indicator of the “outreach” of the state. Both factors of governance have been lacking in Pakistan for over a quarter of a century. The Third World state is generally deficient in tax-collection and, to some extent, its ability to achieve effective executive and judicial outreach. But Pakistan has certain characteristics that it doesn’t share with the Third World states; it shares them rather with the failed or failing states like Somalia, Chad and Afghanistan. The first is absence of law and order in large rural and urban areas; the second is the prostration of the judiciary and the executive in the face of intimidation from the terrorists and jihadi organisations. The third factor that is unique to Pakistan is that foreign terrorists and Pakistani non8 CRITERION – Volume 5 No.2 Pakistan and Nature of the State: Revisionism, Jihad and Governance state actors are able to carry out terrorist acts outside Pakistan, as far afield as Europe and the United States. This opens Pakistan to invasion from the aggrieved states under international law. Pakistan is now subject to insurgencies aimed at changing the map of the state from the inside. There are non-state actors, meant originally to strike outside Pakistan, who are now striking inside Pakistan on behalf of the very foreign states once targeted by Pakistan through them. There are non-state actors who are labelled foreigners but are a part of the Islamist-terrorist global movement fighting the West in general and the United States in particular. They are supposed to be located in some parts of Pakistan where the state doesn’t have its writ; they are also said to be located in other parts of Pakistan where they are protected by the intelligence agencies of Pakistan. This development is complicated by Pakistan’s policy of dividing the Taliban into two categories, the good and the bad Taliban, ironically the bad ones being Pakistani Taliban. The dominant sentiment in Pakistan is anti-American which means it finds itself handicapped in inhibiting militant elements opposed to the United States. Anti-Americanism has brought disadvantages in its wake. The US policy in the region is in lockstep with the thinking of the other regional and non-regional states threatened by terrorism. Adopting an antiAmerican posture is advantageous in Pakistan for politicians as well as institutions looking after or enhancing their turfs. While it is empowering to be anti-American in Pakistan, it comes at the price of isolation at the international level. Given the pattern of economic dependence, Pakistan can ill-afford this isolation. Attention is deflected from this realistic scenario through appeal, once again, to national security - to “threat from India” - which traditionally trumps threat from economic malfunction. In the absence of a Cold War environment, the reliance on “threat from India” is a dangerous introversion since no one among the allies of Pakistan, including the United States, believes it. Does appeal to “threat from India” create the sort of national solidarity it did in the past?8 From evidence on the ground, it doesn’t, but it does unite all the centres of power against the incumbent government. CRITERION – April/June 2010 9 Khaled Ahmed The provinces, demanding autonomy after half a century of uneven economic growth, apparently feel no need to curb their criticism of the federation and the federal executive in the national security interest. However, the “centres of power”, appearing on the scene during the struggle to remove General Musharraf in 2007, use the traditional anti-Indian rhetoric with the new anti-American rhetoric to attack and destabilise the federal government. Pakistani nationalism has run its course and insurrections in Balochistan and other regions do not respond to it, affirming the failure of “nationhood” in Pakistan over time because of the imposition of the national security state from above. The media at times joins the establishment in Islamabad in insisting that Pakistan be considered a national security state in order to maintain the posture of hostility towards India.9 Pakistan’s Six Pillars of the State All states have three mutually balancing “centres of power” or pillars of the state: the legislature, the executive and the judiciary. As the nationalist and ideological pressures mounted in Pakistan, a fourth informal pillar was added: the army. Over time, this evolved into what is called the establishment, supplemented by other permanent institutions of the state: the military-bureaucratic pressure group. The shibboleth of “security” brought the intelligence agencies of the state to the top of the establishment hierarchy. Today ISI plays the role of the strategic mind of the establishment, while an increasingly active MI confirms the dominance of the army in the establishment. Two more centres of power have been added to the pillars-of-the-state theory: the media and the jihadi organisations. Out of the “six pillars” in 2009, five were intensely anti-American and anti-Indian in varying degrees. The executive, seen as pro-American and pro-India, was seriously undermined by this imbalance in the checks-and-balance mechanism of the state and by calls for “mid-term” elections in the media, which accuses the opposition in the legislature of being too soft on a renegade government. Today, the “existential” pillars of the state are: 1) Legislature, 2) Executive, 3) Judiciary, 4) Army plus Establishment, 5) the Media and 6) Jihadi Organisations. The rise of the media as arbiter and manufacturer 10 CRITERION – Volume 5 No.2 Pakistan and Nature of the State: Revisionism, Jihad and Governance of pressure through “public opinion” is dated to the years in power of General Musharraf who allowed a proliferation of TV channels and, through them, dominance of the Urdu-medium opinion expressed by rightleaning ideological columns. The first instalment of TV anchors came from the top-rung Urdu columnists; later, as the channels proliferated, second- and third-grade columnists too found their place among the “mind-benders” of the nation. The rise of the Jihadi Organisations was made possible gradually over the years because of the use made of them in the covert and low-intensity wars staged by the Pakistan army in Afghanistan and Kashmir. The rise of the jihadi militias as “centres of power” arose over the years because of the protection they were given by the state in their intercourse with civil society. The judiciary too became subordinated to them in the countryside where seminaries attached to the jihadis could force the lower judiciary to deliver verdicts of their liking. One can say that even the higher judiciary did succumb in many cases to their intimidation.10 The campaign to oust Musharraf brought together three entities: the media, the agitating lawyers and the judiciary. There was support from civil society to this movement as the campaign symbolised rejection of military rule and elevation of a judiciary that broke the past tradition of judges submitting to military takeovers. The other support for this movement was not universally recognised, the one coming from the jihadi organisations. The jihadi organisations were offended by Musharraf’s switching-off of the Kashmir jihad and his clampdown on the Al Qaeda elements with which the jihadis were aligned. The religious parties, as Muttahida Majlis Amal (MMA) had felt betrayed by him equally after they agreed to be a part of the Muslim League Quaid (PMLQ) alliance by not relinquishing charge of his dual armychief-and-President office. The MMA parties were aligned in differing measures with the jihadi organisations and the Taliban and backed the movement for the restoration of the judges fired by Musharraf after his showdown with the chief justice of the Supreme Court, Justice Iftikhar Muhammad Chaudhry. After the 2008 general election the PPP government in Islamabad took its time restoring the judges fired by Musharraf and violated the CRITERION – April/June 2010 11 Khaled Ahmed agreement it had signed in this regard with the largest political party in the parliamentary opposition, and the ruling party in Punjab, Muslim League Nawaz (PMLN). As the PMLN distanced itself from its traditional rival the PPP and the lawyers stepped up their campaign for the restoration of the judges – this time against the PPP government – the media and the judiciary formed a bond of solidarity. During the 2007 Lal Masjid siege in Islamabad, opposition to Musharraf compelled the TV channels to take a pro-cleric stance, which affected the attitude of the Supreme Court about the Lal Masjid clerics for the same reason. It was in this way that the judiciary, the media, the lawyers and the PMLN were seen as “friendly” by the Taliban, the jihadi militias and Al Qaeda. It should be noted that Al Qaeda had taken a stand at the highest level of its leadership on the side of the defiant clerics of Lal Masjid. The PPP government, in light of the pledge made in the Charter of Democracy (2006) began to make moves to “normalise” relations with New Delhi, beginning with the Trade Policy of 2008 which the “establishment” did not like judging from the articles thereafter placed in the press. The Trade Policy, apart from increasing the tradable items to 2000, envisaged the setting up of an Indian factory near Lahore for the manufacture of CNG-equipped buses. In November 2008, after the Mumbai attacks by Pakistani non-state actors, the government first offered to send the ISI chief to India for consultations, then tried to subordinate the ISI to the Interior Ministry, both actions falling foul of the establishment. Earlier, President Zardari had announced that he was ready to forswear the doctrine of nuclear first strike against India because he was not scared of India. All these purported “policy changes” were opposed by an angry media remarkable in its uniformity of views.11 As observed above, the effect of jihadi organisations on the judiciary, especially in the districts, has been a familiar consequence of the state’s waging of covert war. Journalism too has been under the pressure of intimidatory tactics in the districts where the jihadi militias locate themselves. The English-language press misses out on the districts news because of a lack of reporters with ability to write in English. This “blackout” on the dominance of the jihadis in the countryside is also owed to additional two factors: 1) that the Urdu newspapers do not pay 12 CRITERION – Volume 5 No.2 Pakistan and Nature of the State: Revisionism, Jihad and Governance salaries to their district correspondents, forcing them to rely on handouts they receive from people whose news they get printed in the newspapers; and 2) that the intimidated district correspondents work literally as the “press branch” of the jihadi militias, printing only news that showed the jihadis in a favourable light while attacking their victims, non-Muslims and Shias, as the offending parties. This has undermined the “independence” of the media the same way as it undermined the “independence” of the lower judiciary in the districts. If the TV channels assert their independence daily by attacking the PPP alliance in government, their “independence” to do so will be legitimised only if they are able to comment freely on the activities of the jihadi organisations as well. Most newspapers continue to write “militants” instead of “terrorists” and abstain from referring to the terrorist organisations by name, only applying the term “a banned organisation” when reporting an act of extreme violence by one of them. In a paper read at a seminar of the Pak Institute for Peace Studies (PIPS) on 18 November 2009 some observations were made about the partisanship or lack of independence of the media in Pakistan: “Many media experts would tell you that the newspapers and TV channels in Pakistan do not perceive the Taliban as a threat to the country or its people despite butchering thousands of men, women and children and flouting in the most blatant manner the rights and protection guaranteed by the constitution. Only a few months ago – before the launch of the military operation in Swat – countless newspaper reports and TV talk shows were opposing military action or justifying the illegal and unconstitutional demands of the Taliban when they had effectively ended the writ of the state in Malakand division and were quite literally slaughtering security forces personnel, public representatives and common citizens. At that time, there were many voices in the media either calling for reaching an understanding, or an agreement with the Taliban and ceding more territory to them, or generally writing and airing favourable reports, either out of fear or on the establishment’s behest. It is painfully obvious why elements in the establishment would still be interested in a favourable press for the Taliban and other militant extremists.”12 CRITERION – April/June 2010 13 Khaled Ahmed The same paper speaks of the trouble one Lahore-based daily had with the warlord of Khyber Agency, Mangal Bagh, on calling him “a thief” in its second editorial after noting his ransom-taking activities in the agency and in Peshawar. The terrorist warlord picked up the newspaper’s reporter from Peshawar and made him grovel at his feet for hours, asking him to reveal the name of the editorial-writer. The paper finally gave in, apologised to him and placed an embargo on any news thought to be negative about Mangal Bagh and his men. The editors of a Lahore English-language weekly had to abjectly apologise to a jihadi organisation based in Lahore for writing a critical “inside” account of the militia. The apology was “arranged” by the Punjab administration on the condition that similar material never be published again. A similar incident took place in Lahore after an English-language newspaper published a cartoon that gave offence to the wife of the Lal Masjid cleric, Abdul Aziz. The paper came under threat from the jihadis ready to die for Lal Masjid. The PIPS paper goes on to put on record another incident which is thought to be typical of the press in Pakistan: “A leading English language daily newspaper referred to the Taliban as militants in its coverage. Then one day someone asked the editor’s wife if her husband’s newspaper did not consider Taliban terrorists and if it did then why would it not say so in its reports. The following day that newspaper started referring to the Taliban as terrorists. The same week, the newspapers’ reporters from Malakand and the NWFP pleaded with the main office in Lahore that the Taliban had threatened to kill them if the paper referred to them as terrorists once more. The next day Taliban had got back the tag of militants.” More blatantly: “In October 2009, a Taliban group sent two letters to the Lahore Press Club – one on October 12 and the other on October 14 – warning that if the media ‘does not stop portraying us as terrorists ... we will blow up offices of journalists and media organisations.’ The list of threats and warnings individually sent to journalists and media organisations is a long one.” One typical example was the threat to author and columnist Dr. Ayesha Siddiqa carried in the publication Al Qalam belonging to Jaish-e-Muhammad, rebuking her on writing 14 CRITERION – Volume 5 No.2 Pakistan and Nature of the State: Revisionism, Jihad and Governance about the power of Maulana Masood Azhar in Bahawalpur. Dr Siddiqa understood the editorial comment as a threat and was greatly concerned about her safety as were her friends, especially as her book Military Inc was considered highly critical of the Pakistan army. It is a pointer to the continuing co-existence of the state with jihadi organisations that firing of automatic weapons in November 2009 on the house of columnist Kamran Shafi in Wah was confused between terrorists who rang him after the incident and the state itself. The creation of uniformity of opinion in the media has directly undermined the authenticity of public opinion in Pakistan.13 The interaction between the moulder of public opinion and public opinion itself has given rise to the censoring of the variant point of view on the TV channels. Columnist Saleem Safi wrote in Jang (6 Dec 2009) that in a TV discussion he held the position that President Karzai would continue to be president of Afghanistan because the Americans had no alternative to him despite tentative reference to Ashraf Ghani and Agha Sherzai. He added that sadly Pakistan and the Taliban too had no alternative to Karzai but had thoughtlessly unleashed propaganda against him. Only when non-Pashtun Abdullah Abdullah came up against Karzai in the elections was it realised in Islamabad that Karzai was still the best option for Pakistan. The TV anchor so disliked his opinion that he cut it out of the show during editing. When public opinion is not formed in conditions of freedom guaranteed by the writ of the state, it loses its validity and may be extremely dangerous to the survival of the state. It begins to resemble the public opinion produced in fascist and totalitarian states through a coercive state propaganda machinery. In Pakistan, this lack of freedom emanates from the weak writ of the state and the ganging up of the five pillars of state power against the executive, have brought about a dangerous trend towards populism. This has introduced distortion in the objective and expert handing of the affairs of the state, producing the judicial trend of “interference” in areas requiring expertise rather than reference to public opinion. Populism has been defined as a negative trend in democratic societies being run on scientific lines by politicians elected by the people. Its most harmful traits include stereotyping CRITERION – April/June 2010 15 Khaled Ahmed of communities and states and the propagation of these stereotypes through dogmatic assertion. In the case of Pakistan, public opinion thus formed has damaged the economy and curtailed the flexibility of stance in the domain of foreign policy; or it has habituated the people to see the suppleness of foreign policy options as a kind of capitulation and betrayal of national honour (ghairat).14 Conclusion: Getting out of India-based threat perception Pakistan has “discovered” the political and economic disadvantage of relying on the threat perception established by nationalism. Both the mainstream national parties, after being alternately overthrown from power following their attempts to “normalise” with India, pledged themselves to change the country’s India policy in the Charter of Democracy in 2006. After coming to power in 2008, the PPP government, backed by its traditionally pro-India ally parties, the ANP and the MQM, tried to fulfil the pledge made in the Charter. Apart from his efforts described above, President Zardari became the spearhead of some concrete measures in the direction of normalisation. These efforts were in line with such earlier efforts to create security through “interdependence” with India as the project of Iran-Pakistan-Indian gas pipeline. There was international pressure on Pakistan during the Musharraf era to move towards economic interdependence with India to end the decades of conflict the two countries had engaged in. The World Bank offered liberal credits if any plans were made to build trade routes through Pakistan to enhance its strategic importance as a “trade corridor.” Musharraf was thinking in paradigmatic terms about converting Pakistan into a trading hub for the regions lying around it. Since he had begun to build the Gwadar Port – not first conceived by him, let us admit – the network of roads and railway tracks branching from the port seemed to leave India out. But later he began to speak in more general terms and was once privately in favour of conceding the Indian request that a corridor be given it for trading with Central Asia. The idea of the Indian corridor got sidelined because the general deferred to the “defence” angle and abstained from de-linking it from Kashmir after having 16 CRITERION – Volume 5 No.2 Pakistan and Nature of the State: Revisionism, Jihad and Governance strangely established the precedent of de-linking the IPI from Kashmir. As a general he probably knew that he was standing on the edge of an identity-change of the state of Pakistan. Perhaps he realised the limits of how far he could go as a military leader in changing the country from a warrior state to a trading nation. President Zardari was less half-minded in extending this policy and moving more quickly towards a policy of economic interdependence with India. The SAARC summit had issued a declaration in April 2007 on the desire of the member states to develop “connectivity” including roads that would link the South Asian region for trade and travel. In May 2009, when he was in Washington and met his Afghan counterpart, President Karzai, he signed an MOU with him which was significant in its strategic outreach. Pakistan and Afghanistan agreed “to begin talks on a transit trade agreement which will ultimately allow India to use the Wahga-Khyber route for trade with Kabul.” The memorandum committed the two countries “to achieving a trade transit agreement by the end of the year.” US Secretary of State Ms Hillary Clinton, hosting the round, said: “This is a historic event. This agreement has been under discussion for 43 years without resolution.” Although India was not mentioned as a beneficiary in the memorandum, its ghost was very much present on the occasion. Ms Clinton spelled out all the implications – a set of Western beliefs in trade as antidote to war which is not greatly appreciated in Pakistan – of what the opening up of Indo-Afghan trade through Pakistan will imply: “Nothing opens up an area to economic development better than a good road with good transit rules and an ability to transport goods and people effectively.” The DG ISI of Pakistan was among the delegation led by President Zardari which saw the memorandum being signed by the foreign ministers of Pakistan and Afghanistan. Later, the Foreign Office in Islamabad was compelled to play down the MOU in words that implied non-commitment. Pakistan in 2009 was busy diverting the threat perception from internal elements to India. Threat perceptions are produced by the mind. National strategies are produced by imagination on the basis of nationalism and geopolitical CRITERION – April/June 2010 17 Khaled Ahmed compulsions. Threats have to be imagined so that armies can be trained and weapons acquired accordingly. Some states have fixed enemies. All dangers are to be interpreted on the yardstick of this fixed enmity. Other nations are flexible and keep changing their perceptions of threat. It can be Russia today and China tomorrow. External threats can be “created” to distract from internal threats. Pakistan’s permanent danger is supposed to be from India. As a challenger state it is supposed to endanger India to a point where it relents on Kashmir. But the strategy of endangering India has its reverse side, that of an anticipation of counter-threat. From early days, Pakistan endangered India in its tribal northwest. India endangered Pakistan in its tribal Balochistan. Starting 1990, Pakistan enhanced its capacity to endanger. After that Pakistan and India went into a whirlwind of action and reaction. Today it is difficult for most Pakistanis indoctrinated by the media to see who endangers first and who is merely “reactive.” After the November 2008 attack in Mumbai by Pakistani non-state actors, India has emerged as a source of renewed threat in Pakistan. Nationalism has made a reactive comeback “to stand up to India’s accusations.” On the other hand, India has changed its “dialogue policy” and has increased its presence in Afghanistan as a policy of counter-threat with the clear approval of the US and its allies. Despite evidence to the contrary after the capture of many terrorists, most attacks including suicide-attacks in Pakistan are officially blamed on India. On the December 7 attack on Moon Market in Iqbal Town Lahore, the Punjab Law Minister said that the attack had come from India and Israel working together. The Punjab governor was less sure about it and linked it to the Taliban reaction to Pakistan army’s successful operation in South Waziristan. The NWFP senior minister Bashir Ahmad Bilour refused to blame India for a blast that occurred in Peshawar the same day. On the other hand, Interior Minister Rehman Malik stuck to his position that India “and others” – meaning the US – were involved in terrorism inside Pakistan. Some TV channels expressed anger at those who refused to blame India. Public opinion, created through a unidirectional media, has come to the conclusion that confrontation with India has become inevitable. 18 CRITERION – Volume 5 No.2 Pakistan and Nature of the State: Revisionism, Jihad and Governance International opinion however is insistent that the epochal Indo-Pak conflict can only be resolved through economic inter-dependence. Economists located inside Pakistan seem to agree with the nationalist sentiment in favour of confrontation, but Washington-based Shahid Javed Burki, former finance minister of Pakistan and former vice-president of the World Bank, thinks it more urgent than ever that Pakistan should opt for an economic partnership with India as a means of resolving its disputes with it. After observing that Pakistan is not likely to solve its resource problem any time soon - like increasing either its domestic savings rate to invest more in the economy or its tax-to-GDP ratio for the government to turn its attention to provide services to the poor - he proposes: “One way of opening it is to work closely with India on the economic front and get foreign investment to come from that route. With better relations with Pakistan, Indian companies may be willing to invest in Pakistan. I believe during the Musharraf period Tata Computer Services had shown some interest in investing in Pakistan, making use of the cheaper skilled labour available here compared to the demands of workers in India. The Reliance Group also wanted to develop oil storage facilities in the Jhelum area making use of the exhausted salt mines. This would have reduced the amount of freight and storage India was paying on the Middle Eastern oil. But Pakistan did not permit these investments for political reasons. A democratic government may be able to take a different policy stance. Another way Pakistan could benefit from the revival of interest in India on the part of foreign investors is to establish strong links with some of the industrial sectors in India. Automobile industry is one such candidate. Recent industry data showed sales of trucks and buses in India rose 52 per cent in October, the fourth consecutive monthly rise and the strongest expansion since April 2007.”15 The civilian meaning of “geopolitical importance” of Pakistan is its median position as a trade corridor; the military meaning of the term is Pakistan’s ability as a median state to obstruct trade in order to exert pressure for a better bargaining position on Kashmir. In the middle of Pakistan’s war against internal terrorism the state has once again chosen CRITERION – April/June 2010 19 Khaled Ahmed to insist on the solution of the dispute of Kashmir.16 (The author read this paper at the Irtiqa Institute of Social Studies as the Hamza Alavi lecture for 2009) References: 1 2 3 4 5 6 7 20 Raymond Hinnesbusch in his paper Authoritarian Persistence, Democratization: Theory and the Middle East: An Overview and Critique in Democratisation in the Muslim World: Edited by Frederic Volpi & Francesco Cavatorta; Routledge 2007; p.12: “authoritarian regimes can adapt to new conditions; specifically, their political liberalisation or pluralisation is, for structural reasons, more likely to be a substitute for democratisation than a stage on the way to it”. Shades of this would be observable in the Muslim world as well as in the non-Muslim world but one has to agree that Muslims are more vulnerable to this substitution. Dr Ishrat Hussain, Public policy and Social Sciences, in Critical Perspectives on Social Sciences in Pakistan; Edited by Pervaiz Tahir, Tahir Kamran & Rizwan Omer Gondal; GC University Lahore 2008; p.72: “Since its inception, Pakistan has faced the monumental task to spell out an identity different from the Indian identity. Born from the division of the old civilization of India, Pakistan has struggled for constructing its own culture, a culture which would not only be different from the Indian Culture but one that the whole world would acknowledge”. Public statements by ex-army chiefs like Aslam Beg and ex-ISI chiefs like Hamid Gul keep referring to scores of insurgencies inside India which will one day unhinge India. Hafiz Said of Jamaatud Dawa repeated this in his article in daily Jinnah in the 6 December 2009 issue. Pakistan simply has to deliver a cut here and there to get India to implode. Army General Kayani repeated that on visiting the dead of Rawalpindi’s Parade Lane mosque in December 2009, saying that the army would die for Islam and Pakistan, and confirming that the priority of faith before the state was accepted. Herald, April 2009: Major General (Retd) Faisal Alvi revealed that he had written a letter to the army chief saying that serving generals had joined up with the Taliban. Alvi was later killed by Major (Retd) Ashiq who worked for another retired army officer – denied by the Pakistan army – Ilyas Kashmiri now located with the Taliban in North Waziristan. Khaled Ahmed, The Friday Times, 21 September 2007, Islam and its function of retribalisation: “After Islamisation, and the part played in it by Saudi Arabia through the manipulation of the Council of Islamic Ideology, the rest of Pakistan too began its backward journey to tribalism. Jirgas and panchayats began to raise their ugly head as parallel systems of justice with the ideal of revenge-seeking at the centre of their codes of conduct. The modern state began to be pulled down gradually as the Islamic state came into its own. The Pakistani society, honour-based because of the persistence of its collective tribal memory and low ‘secular’ literacy, began to say goodbye to the municipal law already dysfunctional because of lack of reforms in the institutions that ran it. The madrassa saw itself as the presiding authority over this retribalisation and instrumentalise the concept of jihad to give itself the power of the executive. Daily Times, 25 November 2009: “Indian Army chief General Deepak Kapoor’s address CRITERION – Volume 5 No.2 Pakistan and Nature of the State: Revisionism, Jihad and Governance 8 9 10 11 12 13 14 15 16 during a defence seminar indicated that the possibility of a limited nuclear war was “very much a reality in South Asia”. Christoph Jaffrelot, A History of Pakistan and its Origins, Anthem Press, 2004; p.37: “The limits of national integration explain the campaigns against ‘others’, regularly brought into play by Pakistani leaders in order to weld the unity of the country once more. These campaigns are launched against ‘bad Muslims such as the Ahmadi or against the Hindus or the Christians. The orchestration of this antagonism is all of a piece with the perpetuation of the conflict over t over Kashmir. Pakistan, therefore, might well be a case of nationalism without a nation”. Chief Editor Jinnah (8 Nov 2009) wrote that PPP spokesperson Fauzia Wahab told the press that Pakistan was not a security state but an economy-based state. He took strong exception to this and observed that Ms Wahab should not have said this in the open. Because not terming Pakistan a security state could harm the PPP government. He stated that if Ms Wahab had said it in rage (tap gai) she should learn to control herself. He thought an economy-based Pakistani state would have to normalise relations with India and that was not acceptable. Justice (Retd) Bhatti of Lahore High Court who allowed bail to Christian Salamat Masih accused of blasphemy was killed after retirement in his chamber. In the case of sectarian killer Riaz Basra of Lashkar Jhangvi a number of judges retired during the hearing of the murder of Iranian consul Sadeq Ganji but did not pronounce judgement. Shia-killers Akram Lahori and Malik Ishaq are about to be released from Multan and Lahore courts in 2009 because the witnesses in the trial have either been killed or have resiled. Literature on nuclear war does not recognise the credibility of the doctrine of “second strike” and therefore renouncing the doctrine of “first strike” is rendered meaningless. Najam U Din, Mainstream media’s response to radical extremism, paper read on 18 Nov 2009 at Holiday Inn Lahore, during PIPS seminar. Ahmed Rashid, Pakistan conspiracy theories stifle debate, BBC website 27 Nov 2009: “Switch on any of the dozens of satellite news channels now available in Pakistan. You will be bombarded with talk show hosts who are mostly obsessed with demonising the elected government, trying to convince viewers of global conspiracies against Pakistan led by India and the United States or insisting that the recent campaign of suicide bomb blasts around the country is being orchestrated by foreigners rather than local militants”. Lyrical columnist Irfan Siddiqi wrote in Jang (17 Oct 2009) that the bride of ghairat (honour) has left the house of Pakistan. And carrying the kashkol (begging bowl) and wandering in the streets of the world is the fate of the nation. We are empty in the pocket of our robes (tahi-daman) and cannot live within our means; but then why is the spark of ghairat rising from our ashes? Dawn, 30 Nov, 2009, Working with India. Stephen Cohen, The Idea of Pakistan (Vanguard, 2005), p.51. Cohen thinks the ‘Kashmir Curse’ of Pakistan has “seriously damaged Pakistan’s prospects as a state…a cost that several generations of Pakistani leaders have been willing to pay”. CRITERION – April/June 2010 21 JINNAH’S 11 AUGUST, 1947 SPEECH A. G. Noorani* Abstract (Muhammad Ali Jinnah meant every word of what he said on 11 August 1947. He was opposed to an Islamic State as understood by its protagonists in Pakistan like Abul Ala Maududi relying on Abul Hasan al-Marwardi and others but of which Jinnah was innocent – he did not demand because he wanted to establish an Islamic State. Like others he was concerned at the play of majority rule in a country with communal divisions. The Congress rejected power-sharing in 1937-39 and drove him to ask for partition. It was a political not a religious demand. Author) Quaid-e-Azam Mohammad Ali Jinnah’s Presidential address on 11 August 1947, to the inaugural session of Pakistan’s Constituent Assembly, was one of the most consequential pronouncements in the history of South Asia. Even sixty years later and despite archival disclosures, debate persists on its true import and significance. Very understandably, because it touches the very fundamentals of the state, the Islamic Republic of Pakistan. In contrast to the Constitution of 1956, the Constitution of 1973 prescribes in its various oaths of office a pledge to “strive to preserve the Islamic Ideology which is the basis for the creation of Pakistan.” (Third Schedule; vide the Second Schedule to the Constitution of 1956). There was no ambiguity whatever in the formulations Jinnah used: “You may belong to any religion or caste or creed – that has nothing to do with the business of the State … you will find that in course of time Hindus would cease to be Hindus and Muslims would cease to be * A.G. Noorani is an eminent Indian scholar, legal expert and columnist. Jinnah’s 11 August, 1947 Speech Muslims, not in the religious sense because that is the personal faith of each individual, but in the political sense as citizens of the State” (Jamiluddin Ahmad (ed.)., Speeches and Writings of Mr. Jinnah; Vols. I and II; Sh. Muhammad Ashraf; Lahore; Vol. II, pp. 403-4). This marked the abandonment of the two-nation theory, explicitly. For Jinnah referred in the same speech to “a nation of 400 millions souls in subjection” to the British rule. His much acclaimed biography by Stanley Wolpert, far from providing any cogent explanation for this volte face, expresses bewilderment. “What was he talking about? Had he simply forgotten where he was? Had the cyclone of events so disoriented him that he was arguing the opposition’s brief? Was he pleading for a united India – on the eve of Pakistan – before those hundreds of thousands of terrified innocents were slaughtered ….?” (Jinnah of Pakistan; Oxford University Press; p. 304). This tells us more about Wolpert than Jinnah. What lends ambiguity to the text is the context. Since 1939, even before he demanded Pakistan, Jinnah had put forth the two nation theory. From 1940 onwards the demand was sought to be justified on the basis of the theory. The “Muslim nation” had fought for and achieved statehood in Pakistan. Inevitably it would be a Muslim state. But he had not hesitated in his programme of mass mobilization, to press Islam into service. References to the Quran were freely made. The followers – at least a good many of them – could hardly be blamed for imagining that Pakistan would indeed be an Islamic state. It is unthinkable that Jinnah also shared this ideal. The speech sowed the seeds of a contest between the modernists and the Islamists, which has continued to rock Pakistan to this day. It did not declare closure. For even after the speech, Jinnah – now Governor-General and head of state – continued to invoke Islam and the Quran. Not surprisingly the speech came as a shock to his followers. The chronicler of Pakistan’s Press, Zamir Niazi, one of the most honest journalists, has recorded the reaction in his book The Press in Chains (Royal Book Company, Karachi; pp. 36-37). His account is based on authentic contemporary sources. Hamid Jalal revealed that the Establishment sent a press advisory to black out the speech. Altaf CRITERION – April/June 2010 23 A.G. Noorani Husain, editor of Dawn, foiled the move by threatening to “go to the Quaid himself.” Zamir Siddiqui corroborated Hamid Jalal’s account. The prime culprit was Majid Malik the Principal PRO. The fact that he spoke to Chaudhry Mohammed Ali, Secretary-General of the Cabinet, before withdrawing the advisory casts the latter in a dubious role. Zamir Niazi records also attempts in later years to censor the speech (p. 38). The speech passed muster in the historical records. It did not shape policy. There is an aspect, however, which is commonly overlooked by those who cite Jinnah’s references to Islam and the Quran to imply that he did not quite mean what he had said. Jinnah knew the personal law of Muslims. Very few, in his times, knew of “the Islamic State”. It was some time after the establishment of Pakistan that the concept began to be defined, with varying degrees of vagueness. Jinnah never did, never could have subscribed to the concept as propounded. It is dishonest to extrapolate his strong occasional remarks to the formulation of advocates of an Islamic State. (Vide the writer’s essay The Islamic State; A Mirage; Criterion; July-September 2009; pp. 28-55). We have two authentic accounts of his rejection of the concept totally. One is by the Raja of Mahmudabad, who was close to him. He wrote “My advocacy of an Islamic State brought me into conflict with Jinnah. He thoroughly disapproved of my ideas and dissuaded me from expressing them publicly from the League’s platform lest the people might be led to believe that Jinnah shared my view and that he was asking me to convey such ideas to the public.” (C.H. Philips and Mary Doreen Wainwright (Eds.) The Partition of India; George Allen and Unwin Ltd.; Some Memories p. 388). Sir Prakasa, India’s first High Commissioner to Pakistan, took up the issue with Jinnah in September 1947 on the basis of a speech he had never made. Sir Prakasa urged Jinnah that no “stress should be laid on Pakistan being an Islamic State. … he said he had never used the word ‘Islamic.’ He added ‘You are a responsible man, and you should tell me where I have done so.’ ” Sir Prakasa cited “in your broadcast from Lahore on 31 August you had yourself spoken of Pakistan as an Islamic State.” Jinnah was quite sure that he had not done so, and asked me to let him 24 CRITERION – Volume 5 No.2 Jinnah’s 11 August, 1947 Speech have the original version, if I could. At this he suddenly got up. I could see he was visibly livid with rage. I was summarily dismissed.” (Sir Prakasa; Pakistan: Birth and Early Days; Meenakshi Prakashan; p. 57). Jinnah was perfectly justified. The memoirs cite no detail significantly. None of the compilations of the Governor-General’s speeches contain the broadcast. What is fully established is that Jinnah regarded advocacy of an Islamic State as a reproach since he rejected the idea completely. He did broadcast from Pakistan Radio, Lahore. It was on 30 October 1947. He spoke of Pakistan as a “Muslim State” (ibid; p. 427). However this fact does not answer a reproach based on the incontrovertible record of his speeches in which he did speak of Islam and the Quran. A noted scholar Farzana Shaikh grapples with this problem in her able work, Making Sense of Pakistan (Foundation Books, New Delhi, Hurst & Company, London; 2009). Her views deserve to be quoted in extenso. “Uncertainty about national identity and the lack of consensus over Islam greatly affected the country’s constitutional and political development; they also impinged on the construction of a coherent economic and social vision. Jinnah was famously ambivalent about his understanding of the relationship between Islam and politics. While he had done more than most to tighten the bond between religion and nationalism, thus laying the foundations of Pakistan, he was by all accounts a reluctant convert to his own idea. Moreover Jinnah, like the political and military leaders who succeeded him, was unable to resist the temptation of mobilizing the language of Islam to generate power – power that lay for the most part beyond the reach of mass democratic politics, about which Jinnah was also ambivalent.” She proceeds to add “Jinnah, no romantic, soon realized that while the principles of Islam might represent a panacea for the resolution of the Muslim national question, they were unlikely to help address the real shortcomings of Muslim society. These shortcomings were brutally exposed at Partition, when Muslims (like others) demonstrated that the primeval impulses of their religion remained dangerously in place. By August 1947 Jinnah was forced to recognize that, whatever the national CRITERION – April/June 2010 25 A.G. Noorani claims on behalf of Islam, he could not tame the Islamic tiger. In his famous inaugural speech to the first meeting of the Constituent Assembly, he appeared to acknowledge the damaging effects flowing from the use of religious rhetoric to justify his demand for Pakistan.” …. “Jinnah’s own prevarication did little to clear the confusion. In a speech to the Sind Bar Association in Karachi on 25 January 1948, he even seemed ready to abandon his earlier stance, which had called for religion to be kept out of politics, and denouncing as ‘mischief’ attempts to ignore ‘Shari’at Law’ as the basis of Pakistan’s constitution. While few would deny that these inconsistencies were to be expected from Jinnah, who by that time was consumed by fatal ill-health, they set an unfortunate precedent for his successors. Many have since used the ambiguity cultivated by Jinnah to negotiate their own positions and, in doing so, have continued the legacy of a movement that under Jinnah himself came to represent all things to all men. “The Objectives Resolution passed in March 1949, which has served as a preamble for all three of Pakistan’s constitutions (1956, 1962 and 1973), was symptomatic of this ambiguity. Though regarded as the country’s ‘constitutional Grundnorm,’ its endorsement was marred by a discord that demonstrated the fragility of the consensus underpinning the new state.” (pp.82-83). As will be pointed out later, her reading of Jinnah’s speech is inaccurate. But it speaks volumes for the speech that despite the Objectives Resolution, the Constitutions of 1956, 1962 and 1973 and four military coups, its central theme is still recalled as a beacon light. In January 2001 President Pervez Musharraf announced a ban on all militant groups, including sectarian outfits, signaling thereby a break in relations between the army and its militant protégés in Afghanistan and Kashmir. His decision came in the wake of a daring attack by militants on the Indian Parliament in December 2001, which had brought Pakistan to the brink of a dangerous military confrontation with India. In his speech justifying the ban, Musharraf recalled Jinnah’s vision of ‘the ideology of Pakistan,’ which he claimed stood in contrast to the ‘theocratic state’ advocated by Islamist parties and their militant allies. Their attempts 26 CRITERION – Volume 5 No.2 Jinnah’s 11 August, 1947 Speech to establish a ‘state within a state,’ he declared, would be defeated by his military regime, which had come to recognize that “today Pakistan is not facing any threat from outside … the real threats are posed from within.’” Since ambiguity arises from Jinnah’s other speeches, before and after the partition, the best way to unravel the mystery, such as it is, is first, to determine Jinnah’s “Public Philosophy,” to use Walter Lippmann’s expression, trace the slide towards the two-nation theory and the invocation of the faith, and lastly, analyze the terms of the speech in the light of the speaker’s pronouncements before and after he spoke as he did. Speaking in the Central Legislative Assembly on 7 February 1935 on the Communal Award, Jinnah said: “I entirely reciprocate every sentiment which the Honourable the Leader of the Opposition expressed, and I agree with him that religion should not be allowed to come into politics, that race should not be allowed to come into politics. Language does not matter so much. I agree with him, if taken singly one by one. Religion is merely a matter between man and God. I agree with him there entirely, but I ask him to consider this, - Is this a question of religion purely? Is this a question of language purely? No, Sir, this is a question of minorities and it is a political issue.” (Ahmad; Vol. 1; p. 5). He repeated these views even after the Lahore Resolution on Pakistan (1940) when he addressed students of the Ismaili College in Bombay on 1 February 1943. He said “Which government, claiming to be a civilized government can demolish a mosque, or which government is going to interfere with religion which is strictly a matter between God and man? The question is that the Musalmans are a nation, distinct from the Hindus.” (ibid; p. 469). His presidential address to the Delhi session of the All India Muslim League on 21 April 1943 was a documented indictment of Gandhi’s injection of religion into politics. (ibid. pp. 481-482). CRITERION – April/June 2010 27 A.G. Noorani Earlier at the Aligharh Muslim University Union on 5 February 1938, Jinnah took pride in the fact that “What the League has done is to set you free from the reactionary elements of Muslims …. it has certainly freed you from that undesirable element of Maulvis and Maulanas” (ibid. p. 43). The record is consistent and clear and the speech of 11 August 1947 fully accorded with the outlook these remarks expressed. This brings us to a sorry omission in the entire discussion on that speech. It was delivered on the establishment of Pakistan. Surely in order to ascertain “the ideology of Pakistan” it is far more relevant to consider Jinnah’s speech delivered at the first espousal of Pakistan, at the Lahore Session of the League on 23 March 1940. It had not the faintest hint of an Islamic State. It offered arguments in support of a political solution. In a broadcast on All India Radio on Eid Day 15 November 1939 he said pointedly “we shall be guided by our rational interpretation of the Quran.” The address at the Lahore session fell in to two parts. One concerned recent politics, the other, the demand for Pakistan. The two-nation theory cemented both (ibid.; p. 156 and 162). Islam came last in the peroration which exhorted “come forward as servants of Islam.” But neither the Lahore Resolution nor the League President asserted that India’s partition was being demanded in order to establish an Islamic or, for that matter, a Muslim State. “The ideology of Pakistan” is a belated, artificial and an utterly bogus construct. However, it must be emphasized that it was not a secular state but a majoritarian State that Jinnah began demanding with strident consistency. It was far removed from Jawaharlal Nehru’s concept of secularism. Few of his senior colleagues shared it. (S. Gopal; Nehru; Oxford University Press; Vol. II; p.15). There was a false construct which Jinnah began tirelessly to propound – the homelands of Muslims lay in the areas in which they formed a majority. This is based on a historical falsehood. Islam came first to Malabar not to the north. To this day the namaz is said in an 28 CRITERION – Volume 5 No.2 Jinnah’s 11 August, 1947 Speech ancient mosque in Cannonore in the manner it was in the days of Prophet Mohammad (PBUH). It is absurd to aver that the seats of Muslim culture in U.P., Hyderabad, and Bengal are not the Muslims homelands. This theory had a pernicious corollary – the rest of India comprised the Hindus’ homelands. Sample this amplification of the Lahore resolution. “The question for the Muslim minorities in Hindu India is whether the entire Muslim India of 90,000,000 should be subjected to a Hindu majority raj or whether at least 60,000,000 of Musalmans residing in the areas where they form a majority should have their own homeland and thereby have an opportunity to develop their spiritual, cultural, economic and political life in accordance with their own genius and shape their own future destiny, at the same time allowing Hindus and others to do likewise. Similar will be the position of the Hindus and other minorities in the Muslim homelands.” (ibid.; p. 166). Specifically “What the Muslim League wanted was that the Muslims should have opportunity to have their own governments in the two zones which they considered as their homelands and develop their own culture. He wished Godspeed to the Hindus to have their own governments in the other parts and develop according to their own genius.” (ibid. p. 220). The two States would be given over to the two communities. But note this formulation on 2 January 1941. “The question is not merely cultural but of political, economic and social problems which can only be solved according to our genius in our homelands, provided that they are independent states and in no way under the control of any centre for all India. Safeguards, constitutional or otherwise, will be of no use. So long as there is communal Hindu majority at the centre, safeguard will remain on paper. Therefore I think of nothing better or more suitable having regard to the conditions and realities than separation of Muslims in my proposed homelands.” A statement issued in May 1941 came close to the “faith” but it was obviously rhetorical. “Therefore, the Muslims asked that where they were in a majority they should be allowed to have their own way of life, and that where Hindus were in a majority they should continue to have CRITERION – April/June 2010 29 A.G. Noorani their way of life, each nation according to its own philosophy, faith and culture.” (ibid., p. 292). It was bad enough propounding a proposal which did not, could not possibly, resolve the communal problem. It was far worse to embellish it with a theory which legitimized majoritarian States in both parts – a Muslims State and Hindu State. It is most unfair to deny Nehru the credit for rejecting this theory and opting instead for a secular state, however imperfect it may be in actual practice. The minorities have a yardstick by which to hold the State to account. It was of course, not an Islamic State that Jinnah had in mind. The ideas he floated gave succour to those who did. Jinnah did not realize this. He resented charges that he wanted a religious state in a speech at Aligarh on 2 November 1941. K. M. Munshi was reported to have said, “The State under the Pakistan scheme would not be a civil government responsible to a composite legislature consisting of all communities, but a religious State pledged to rule according to the teachings of that religion thus by implication excluding all others not following that religion from a share in the government. One crore and thirteen lakhs of Sikhs and Hindus would constitute a minority under the protection of the religious State of the Muslims. These Hindus and Sikhs would be on sufferance in the Punjab and would be foreigners in Hindustan.” Jinnah replied “Is it not an incitement to the Sikhs and excluding them from all power, is entirely untrue. He seems to suggest that non-Muslims in Pakistan will be treated as untouchables. Let me tell Mr. Munshi that untouchability is only known to his religion and his philosophy and not ours. Islam stands for justice, equality, fair play, toleration and even generosity to non-Muslims who may be under our protection. They are like brothers to us and would be the citizens of the State.” (ibid.; June 1941; pp 313-314). Jinnah’s honesty is not questioned. His clarity of thought, consistency and lack of sense of responsibility is. He had not thought through the implications and consequences of his ideas. 30 CRITERION – Volume 5 No.2 Jinnah’s 11 August, 1947 Speech He regarded the minorities virtually as citizens of the “other” State. “You will protect and safeguard our minorities in your zones and we will protect and guard your minorities in ours” (ibid., p. 441; 2 November 1942). It was Muslim exclusivism in excelsis. If a plebiscite on Pakistan was to be taken in the Muslim majority provinces, the Hindus and Sikhs were not to vote. His demand repeated all too often was “give effect to the verdict of a Muslim plebiscite and carry out the Pakistan scheme” (ibid.; p. 448). How could the disfranchised minorities have an equal position in a state formed thus? A careful student of Jinnah’ policies will notice a significant shift in emphasis every time he spoke in the NWFP. A message to the NWFP Students Federation, on 4 April 1943, read thus: “You have asked me to give you a message. What message can I give you? We have got the greatest message in the Quran for our guidance and enlightenment” (ibid., p. 472). By then the maulanas at whose political marginalization he had rejoiced were being invited to join and did join the League in droves. The infiltration increased as elections began to loom large. Jinnah was too wide alert not to sense the danger which “ideological confusion” posed in such a situation. He declared emphatically at the League’s Session in Delhi on 24 April 1943: “The Constitution of Pakistan can only be framed by the Millat and the people. Prepare yourselves and see that you frame a constitution which is to your heart’s desire. There is a lot of misunderstanding. A lot of mischief is created. Is it going to be an Islamic government? Is it not begging the question? Is it not a question of passing a vote of censure on yourself? The constitution and the government will be what the people will decide. The only question is that of minorities. “The minorities are entitled to get a definite assurance and ask: ‘Where do we stand in the Pakistan that you visualize?’ That is an issue of giving a definite and clear assurance to the minorities. We have done it. We have passed a resolution that the minorities must be protected CRITERION – April/June 2010 31 A.G. Noorani and safeguarded to the fullest extent and as I said before any civilized government will do it and ought to do it. So far as we are concerned our own history, our Prophet have given the clearest proof that non-Muslims have been treated not only justly and fairly but generously.” (ibid., pp 507-8). At no time did Jinnah utter the words “Islam in danger” which his detractors attribute to him; never citing the source. “It is for you all to put your heads together, your Council of the All-India Muslim League, and undertake proper and systematic planning, I can only repeat once again, for educational uplift, social uplift, economic uplift, political uplift and cultural uplift of the nation.” –protection of Islam was not mentioned. (ibid., p. 513). But faith kept cropping up. “What was it that kept the Muslims united as one man, and what was the bedrock and sheet-anchor of the community,” asked Mr. Jinnah. “Islam,” he said, and added; “It is the Great Book, Quran, that is the sheet-anchor of Muslim India. I am sure that as we go on and on there will be more and more of oneness – one God, one Book, one Prophet, and one Nation.” (ibid., p. 575). With the character of the State was bound up its duty to persons of the same religious affiliation in the other part of the split country. “How could Pakistan help the Musalmans of C.P., U.P., Madras, Bombay and elsewhere? What could be the objective of the Musalmans of these provinces? Safeguards could be the only thing. But what would be the use of these safeguards if there was no authoritative sanction to ensure their fulfillment. If they achieved for provinces where Muslims were in a majority the cherished goal of Pakistan, it would mean independence for seven crores of their brothers and enforcement of safeguards in the Muslim minority provinces, and this would guarantee a just and fair treatment to all minorities.” (Ahmad, Vol.; 2; pp. 19-20, on 13 March 1944). The linkage between the State and its wards outside was clearly stated. “The crux of the issue is, are you prepared to trust your minorities with us and are we prepared to trust our minorities with you and accept 32 CRITERION – Volume 5 No.2 Jinnah’s 11 August, 1947 Speech the position that where you are dominant it shall be your dominant government and it shall our dominant government where we are in a majority?” (ibid., p. 166). The nature of the help was not left vague, either. He had no wish to quarrel, Jinnah said but if “our minorities are ill-treated Pakistan cannot remain a passive spectator. If Britain in Gladstone’s time could intervene in Armenia in the name of protection of minorities, why should it not be right for us to do so in the case of our minorities in Hindustan – if they are oppressed?” This was stated as late as on 11 April 1946 at the League Legislators’ convention. Gladstone intervened militarily on behalf of the world’s strongest imperial power. Moreover, was Jinnah not conferring, implicitly, a similar right to the stronger neighbour? (ibid.; p. 286). The record must be viewed as a whole and objectively. The debate has been reduced to an exchange of polemics on both sides. Which is why Jinnah’s statements are recalled here at some, perhaps tiresome, length in a quest for understanding; not in an effort at proving a preconceived thesis. One thing is clear. Even when recalling the Quran and its injunctions he never extended them to the structure of the State. Sample this. “Everyone, except those who are ignorant, knows that the Quran is the general code of the Muslims. A religious, social, civil, commercial, military, judicial, criminal, penal code; it regulates everything from the ceremonies of religion to those of daily life; from the salvation of the soul to the to the health of the body; from the rights of all to those of each individual; from morality to crime, from punishment here to that in the life to come, and our Prophet has enjoined on us that every Musalman should possess a copy of the Quran and be his own priest. Therefore Islam is not merely confined to the spiritual tenets and doctrines or rituals and ceremonies. It is a complete code regulating the whole Muslim society, every department of life, collective and individually.” This comprehensive formulation made on Eid Day 1945 omitted the State. (ibid., p. 209). The Associated Press of America was told on 1 November 1945 that “This would be a Muslim State. As far as the Musalmans are CRITERION – April/June 2010 33 A.G. Noorani concerned there would be no social barriers of any kind against the Hindus or anyone else. The Musalmans are a people who believe in and act on the basic principle of equality of manhood and fraternity. … Hindu minorities in Pakistan can rest assured that their rights will be protected. No civilized Government can be run successfully without giving minorities a complete sense of security and confidence. They must be made to feel that they have a hand in Government and to do this they must have adequate representation in it. Pakistan will give this.” (ibid.; p. 232). This was a pledge in the most explicit terms that the minorities would have a share in power, “a hand in Government”, as distinct from what he called “paper safeguards.” (ibid., p. 232). Pakistan would be “a Muslim State in which the minorities would enjoy equal rights. The duality is glaring. Peshawar always inspired him to go the extra length to keep the flock together. Students of the Islamia College were assured during his tour of the Province in November 1945 that “the League stood for carving out States in India where Muslims are in a numerical majority to rule them under Islamic law.” (ibid., p. 233). We do history no service in glossing over the flaws in the thinking. Jinnah’s pronouncements on Islam and the minorities were riddled with contradictions. On the occasion of his 70th birthday the Memon Merchants Chamber hosted a tea party in Bombay. It was a good occasion for reassuring Muslims in non-Muslims majority provinces. He seized on a statement by Ravi Shankar Shukla, former Premier of the Central Provinces and one of the more rabid Hindu communalists in the Congress, that Muslims in such provinces would be treated as foreigners. “It was amazing to find that Congress leaders were indulging in such reckless and irresponsible threats” (ibid., p. 269). A little over three months later, in an interview to the BBC at New Delhi on 3 April 1946 – when partition had emerged as a distinct possibility – Jinnah himself offered three options to the Muslims minorities and did so in terms which the BJP and RSS could playfully quote in support of their credo though it is diametrically opposite to 34 CRITERION – Volume 5 No.2 Jinnah’s 11 August, 1947 Speech Jinnah’s liberal credo. He said “These areas, like Madras for instance will have a Hindu government and the Muslim minorities will have three courses open to them: they may accept citizenship in the State in which they are. They can remain there as foreigners; or they can come to Pakistan. I will welcome them.” (ibid.; p. 282). A year later he stressed that all the minorities would be equal and loyal citizens of the State to which they belong. This was not a new formulation. The fundamentals of the 11 August 1947 speech were always present; not least at the Legislator’s Convention on 11 April 1946. “What are we fighting for? What are we aiming at? It is not theocracy, not for a theocratic state. Religion is there and religion is dear to us. All the worldly goods are nothing to us when we talk of religion; but there are other things which are very vital; our social life, our economic life, and without political power, how can you defend your faith and your economic life?” (ibid.; p. 284). This brings us to the speech. Jinnah’s biographer Hector Bolitho asserts that “he worked, for many hours, on the Presidential Address” which was undoubtedly “the greatest speech of his life.” (Jinnah Creater of Pakistan; Oxford University Press, Karachi; pp. 175-6). A textual analysis suggests that it was delivered extempore. It was rambling in parts. The man spoke from his heart. Notice the topics he addressed first. They were “law and order;” “bribery and corruption;” “black-marketing;” and “nepotism and jobbery” - in this order. He next turned to the partition of India and of the Punjab and Bengal. “I know there are people who do not quite agree with” it. He understood the feelings of the minorities, but “a division had to take place.” A united India could not have worked, adding “may be that view is correct; may be it is not; that remains to be seen”. It was “impossible to avoid” the situation of minorities in both states. “Now what shall we do?” The famous, indeed immortal words, are an answer to that question. Their core is reproduced here. “If you will work in co-operation, forgetting the past, burying the hatchet you are bound to succeed. If you change your past and work together in a spirit that every one of you, no CRITERION – April/June 2010 35 A.G. Noorani matter to what community he belongs, no matter what relations he had with you in the past, no matter what is his colour, caste or creed, is first, second and last a citizen of this state with equal rights, privileges and obligations, there will be no end to the progress you will make. “I cannot emphasize it too much. We should begin to work in that spirit and in course of time all these angularities of the majority and minority communities, the Hindu community and the Muslim community – because even as regards Muslims you have Pathans, Punjabis, Shias, Sunnis and so on and among the Hindus you have Brahmans, Vashnavas, Khatris, also Bengalees, Madrasis, and so on – will vanish. Indeed if you ask me this has been the biggest hindrance in the way of India to attain the freedom and independence and but for this we would have been free peoples long long ago. No power can hold another nation, and specially a nation of 400 million souls in subjection; nobody could have conquered you, and even if it had happened, nobody could have continued its hold on you for any length of time but for this. …” Inter-Muslim differences were put on a par with Hindu-Muslim differences and the fact of “a nation of 400 million souls was accepted.” He added “Therefore, we must learn a lesson from this. You are free; you are free to go to your temples, you are free to go to your mosques or to any other places of worship in this State of Pakistan. You may belong to any religion or caste or creed – that has nothing to do with the business of the State. …” “Now, I think we should keep that in front of us as our ideal and you will find that in course of time Hindus would cease to be Hindus and Muslims would cease to be Muslims, not in the religious sense, because that is the personal faith of each individual, but in the political sense as citizens of the State.” (ibid.; pp. 403-4). The theme was repeated with increasing emphasis in passage after passage and it is one which is in accord with the theme for which the vintage Jinnah was known. Later on in October 1947 he advised Muslims in India “to give unflinching loyalty to the state in which they happen to be.” (ibid., p. 420). 36 CRITERION – Volume 5 No.2 Jinnah’s 11 August, 1947 Speech One is at a loss to understand why the 11 August 1947 speech is regarded almost as a unique pronouncement. Compare the words he uttered then with what he used at his last press conference in New Delhi on 14 July 1947: “Q. Could you as Governor-General make a brief statement on the minorities problem? A. At present I am only Governor-General-designate. We will assume for a moment that on August 15, I shall be really the GovernorGeneral of Pakistan. On that assumption, let me tell you that I shall not depart from what I said repeatedly with regard to the minorities. Every time I spoke about the minorities I meant what I said and what I said I meant. ‘Minorities to whichever community they may belong, will be safeguarded. Their religion or faith or belief will be secure. There will be no interference of any kind with their freedom of worship. They will have their protection with regard to their religion, faith, their life, their culture. They will be, in all respects, the citizens of Pakistan without any distinction of caste or creed. “They will have their rights and privileges and no doubt, along with it goes the obligation of citizenship. Therefore, the minorities have their responsibilities also and they will play their part in the affairs of this State. As long as the minorities are loyal to the State and owe true allegiance and as long as I have any power, they need have no apprehension of any kind. Q. You said that minorities in Pakistan, if they are loyal, will be dealt with generously and justly, may we take it this applies to Muslims in Hindustan as well? A. It applies to any minority anywhere in the world. You cannot have a minority which is disloyal and plays the role of sabotaging the State. That minority, of course, becomes intolerable in any State. I advise Hindus and Muslims and every citizen to be loyal to his State. CRITERION – April/June 2010 37 A.G. Noorani Q. Will Pakistan be a secular or theocratic state? A. You are asking me a question that is absurd. I do not know what a theocratic state means. A correspondent suggested that a theocratic state meant a state where only people of a particular religion, for example, Muslims, could be full citizens and non-Muslims would not be full citizens. A. Then it seems to me that what I have already said is like throwing water on a duck’s back. When you talk of democracy, I am afraid you have not studied Islam. We learned democracy thirteen centuries ago. “ (Jinnah: Speeches and Statements 1947 – 1948; Oxford University Press Karachi; pp. 13 and 15). In his interview to Reuters on 25 October 1947 Jinnah recalled his famous speech. “Minorities belonging to different faiths living in Pakistan or Hindustan do not cease to be citizens of the respective States by virtue of their belonging to a particular faith, religion or race. I have repeatedly made it clear, especially in my opening speech to the Constituent Assembly, that the minorities in Pakistan would be treated as our citizens and will enjoy all the rights and privileges that any other community gets. Pakistan shall pursue that policy and do all it can to create a sense of security and confidence in the non-Muslim minorities in Pakistan. “Every citizen is expected to be loyal to the State and to owe true allegiance to it. The arm of law should be strong enough to deal with any person or section or body of people that is disloyal to the State. We do not, however, prescribe any school boy tests of their loyalty. We shall not say to any Hindu citizen of Pakistan ‘if there was war, would you shoot a Hindu.’” (ibid., p. 61). Hindus in East Pakistan were assured on 22 March 1948 that the Central and Provincial Government “were now their own Governments.” 38 CRITERION – Volume 5 No.2 Jinnah’s 11 August, 1947 Speech (ibid.; p. 153). In a broadcast to the United States in February 1948, he said “In any case Pakistan is not going to be a theocratic State – to be ruled by priests with a divine mission. We have many non-Muslims – Hindus, Christians, and Parsis – but they are all Pakistanis. They will enjoy the same rights and privileges as any other citizens and will play their rightful part in the affairs of Pakistan.” (ibid.; p. 125). He repeatedly characterized Pakistan as a Muslim state; except on one occasion, at Peshawar, predictably. It was at the Edwards College on 18 April 1948 when he described Pakistan as land “under a rule, which is Islamic, Muslim rule, as a sovereign independent State” (ibid., p. 201). Jinnah could not have failed to learn the reaction the August speech had produced. The speech which Farzana Sheikh considers as a virtual retraction of the August speech must be read in context. He was trying to assuage fears but without committing himself to accepting the demands. He was speaking on the occasion of the Holy Prophet’s (PBUH) birthday at the Bar Association in Karachi. According to the report published in Dawn on 26 January 1948, “Quaid-i-Azam Mohammad Ali Jinnah, Governor-General of Pakistan, speaking at a reception given to him on the Holy Prophet’s (PBUH) birthday, by the Bar Association, Karachi, said ‘Why this feeling of nervousness that the future constitution of Pakistan is going to be in conflict with Shariat Laws?’ The Quaid-iAzam said ‘Islamic principles today are as applicable to life as they were 1,300 years ago.’ “The Governor-General of Pakistan said that he would like to tell those who are ‘[some are] misled by propaganda’ that not only the Muslims but also the non-Muslims have nothing to fear. ‘Islam and its idealism have taught democracy. Islam has taught equality, justice and fair play to everybody. What reason is there for anyone to fear democracy, equality, freedom on the highest standard of integrity and on the basis of fair play and justice for everybody.’ (ibid.; p. 97). CRITERION – April/June 2010 39 A.G. Noorani In this the Quaid-i-Azam adopted the very technique which was later deployed by Charles de Gaulle on 4 June 1958. He had just come to power and desperately needed time, de Gaulle assured the rebellious colors in Algeria “Je vous ai compris … “ (I have understood you). A few days later he spoke of “algerie francaise” (French Algeria). De Gaulle alone could have granted independence to Algeria and that too at the risk of his life. In both cases those in the know knew what the leader was aiming it. But, ambiguity always exacts a toll especially if used in defining the nation’s identity. “If the trumpet give an uncertain sound, who shall prepare himself to the battle?” (I Corinthian xiv, 8). India is still paying the price for defining itself in the very first Article of the Constitution as “India, that is Bharat. ..” and capping this with a “Directive Principle of State Policy” for banning the slaughter of cows. The likes of Abul Ala Maududi were opposed to the demand for Pakistan. They seized on some stray utterances of the Quaid to argue that he too wanted an Islamic State. The Pir of Manki Sharif urged Jinnah on 19 July 1947, to establish a separate portfolio “for affairs concerned with Shariat.” (Z.H. Zaidi (ed.) Jinnah Papers, First Series Vol. III; p. 512). The Governor of NWFP Rob Lockhart reported to the Governor-General Lord Mountbatten on 9 August 1947, “dissensions amongst the local League leaders.” He added that “some are annoyed because Jinnah said he could not establish Shariat law” (ibid.; Vol. IV, p. 462). Jinnah’s rhetoric exacted a toll. Significantly not one political party, not even the Muslim League, over which he had presided for over a decade, championed Jinnah’s credo. Nor did Z. A. Bhutto, by no means a religious person. That was left to a band of intellectuals. Sibte Hasan wrote in Dawn of 28 March 1976 “The Struggle for Secularim is an integral part of the struggle against feudalism.” In 1986 appeared his book The Battle of Ideas in Pakistan (Pakistan Publishing House, Karachi). 40 CRITERION – Volume 5 No.2 Jinnah’s 11 August, 1947 Speech Hasan Zaheer was no Communist. He lamented “had it not been for its involvement in the (Rawalpindi) Conspiracy, the Communist Party might have become a significant element in the mainstream politics in both wings in Pakistan.” (The Times and Trial of the Rawalpindi Conspiracy Case 1951; Oxford University Press, Karachi, p. 208). The lament was made in the specific context of “the feudal and tribal social structure of West Pakistan.” In India, likewise, anti-Communists like this writer noted the Communist Parties’ fight against anti-secular forces. This the legacy which Jinnah’s ambiguous rhetoric left. The record, like any other, must be viewed as a whole without allowing one’s views to emphasize one or the other statement or factor or circumstance unduly. Seven propositions emerge incontestably. First, Muhammad Ali Jinnah meant every word of what he said on 11 August 1947; Secondly, he was opposed to an Islamic State as understood by its protagonists in Pakistan like Abul Ala Maududi relying on Abul Hasan al-Mawardi and others but of which Jinnah was innocent; Thirdly, he did not demand Pakistan because he wanted to establish an Islamic State. Like others he was concerned at the play of majority rule in a country with communal divisions. The Congress rejected power-sharing in 1937-39 and drove him to ask for partition. It was a political not a religious demand; but, fourthly, his espousal of the pernicious twonation theory – which he threw out of the window on 11 August 1947 – inescapably brought in Islam as part of the identity of Muslims as he defined it; fifthly, some of Jinnah’s statements in his campaign of political mobilization were just that and no more; sixthly, while Jinnah indubitably described Pakistan as a Muslim State, equally indubitably he insisted on equal rights for all citizens, regardless of their religion. The two-nation theory could be discarded. Pakistan’s identity which it had forged was fixed with a Muslim character; and lastly, even this would disappear with the passage of time as he said all too clearly on 11 August 1947. Therein lies the enduring, undying legacy of Quaid-eAzam Muhammad Ali Jinnah’s famous speech which the Islamists wish had never been delivered. The speech will remain to inspire all who fight for Jinnah’s Pakistan. CRITERION – April/June 2010 41 RELIGION AND STATE IN PAKISTAN Iqbal Ahmad Khan* Abstract (The Quaid-e-Azam Mohammad Ali Jinnah gave clear and unambiguous guidelines to the constitution makers of the new state of Pakistan. His historic address of 11 August 1947 embodied the raison d’être of Pakistan. “You may belong to any religion or caste or creed that has nothing to do with the business of the State,” he told the members of the Constituent Assembly. With his passing away and the emergence of parochial and incompetent governments, there set in a gradual dilution of the Quaid’s message. The most lethal attack came with the attempt by the military dictator General Ziaul Haq to set up a theocratic state in Pakistan. Presently, we are facing the blowback from his misguided and duplicitous policies. The general sought inspiration from a religion-based political party which had the dubious distinction of opposing both the founder of the country and the Pakistan freedom movement. It is the unenviable task of the incumbent democratic government to cleanse the body-politic of the policies and practices pursued by the dictator. If this is not done Pakistan will continue to harvest the bitter fruit of intolerance, bigotry and religious persecution. Despite its history of faith-based persecution and wars of religion, such oppression and violence has been absent from the west in recent centuries and lessons can be drawn from this experience. Author.) Religion-related violence in Pakistan has become a familiar and painful part of the contemporary socio-political scene. It has pitted the * Iqbal Ahmad Khan is a former ambassador of Pakistan. Email ghazalakhan27@hotmail. com Religion and State in Pakistan citizens of the country against each other; it has given birth to hatepreachers who exploit the powerful medium of a free media to spew poison against opponents; it has led to the emergence of militant sectarian outfits armed and trained in the targeting and physical elimination of their so-called adversaries; it has regrettably demonstrated the inefficacy of state institutions entrusted with the responsibility of protecting the lives and properties of citizens; even worse, it has given rise to widespread allegations from a range of credible sources about the complicity of certain state institutions with militant outfits; it has badly stained the international image of the country with predictable consequences; it has made women, who account for more than half of the total population of the country, retreat further into seclusion because of fear and confusion; it has instilled fear and insecurity among the minorities, and; it has seriously undermined economic and social development and prompted emigration of professionals and the flight of capital. The following events which occurred in the past few months illustrate poignantly the brutalization of Pakistan society. The end of February 2010 saw the celebrations on the occasion of the birthday of the Holy Prophet (PBUH) marred by the tragic deaths of several Muslims at the hands of a rival sect. A large number of people were also injured and considerable damage was done to public and private property by an enraged and unruly mob. The police attempted to restore a semblance of order, but it too fell victim to mob violence. The bloody incidents took place on 28 February in the districts of Dera Ismail Khan and Faisalabad. Troops had to be deployed in D. I. Khan and Section 144 imposed in Faisalabad. According to a newspaper report a procession commemorating the anniversary of the Holy Prophet’s (PBUH) birthday was fired upon in D. I. Khan as it passed by a seminary. Soon thereafter a charged mob retaliated by launching an attack on the seminary.1All this fratricidal violence occurred on one of the most auspicious days in the Muslim calendar. On the same day and on the same occasion Faisalabad too witnessed armed clashes between two sects, one of which was celebrating the birthday of the Holy Prophet (PBUH) and the other allegedly fired upon the procession and that too from the precincts of a mosque. The clashes CRITERION – April/June 2010 43 Iqbal Ahmad Khan were followed by accusations and counter-accusations while arson and vandalism caused extensive damage to public and private property. An editorial carried by a Lahore-based English newspaper revealed that the clashes took place essentially between the Barelvis and Deobandis. The Barelvis “more rooted in the culture of the subcontinent and deeply influenced by Sufism have always promoted the more human side of religion by spearheading celebrations of the birth of the Holy Prophet (PBUH)….This has irked the conservative schools of Sunni Islam, notably the Deobandis, who had been campaigning before the occasion that celebrating the birth of the Holy Prophet (PBUH) was a heresy because neither he nor his companions celebrated the event. The eruption of violence on such an insignificant issue between two Sunni denominations is an indication of deep insecurities and a wish to impose one’s interpretation of religion on all others.”2 A few weeks earlier on yet another religious occasion - the martyrdom of Hazrat Imam Hussain - a several thousand-strong procession of mourners in Karachi were subjected to a heart wrenching bombing in which dozens perished and hundreds received injuries. Property including landmark buildings worth billions of rupees were looted and burnt. The misery encompassed hundreds more who overnight lost all their worldly possessions or their near and dear ones or both. The scale of human suffering which this one act of sectarian terror inflicted on a peaceful religious procession of devoted and reverential men, women and children was unimaginable and simply unbelievable. The state could neither protect the celebrators of the birthday of the Holy Prophet (PBUH) nor those who had come out to mourn on the anniversary of the tragic slaying of his grandson, Imam Hussain. It was widely reported that the security agencies had received credible intelligence that rival groups would try to violently disrupt the commemorations. To date it is unknown what progress the police have made in apprehending the perpetrators of the heinous crimes. The inability of law enforcers to deliver is hardly surprising given the magnitude of the terrorist challenge that has been mounted against the 44 CRITERION – Volume 5 No.2 Religion and State in Pakistan state and the limited resources at their disposal. These crimes ironically have been committed in the name of a religion which considers the killing of one innocent person, Muslim or non-Muslim, as tantamount to the murder of humanity. The insecurity and helplessness that the ordinary Pakistani faces at the hands of these fanatics cover all sections of society, Shias and Sunnis, Muslims and non-Muslims, rich and poor, men and women. Only a few months before the Ashura massacre, innocent and harmless Christians were targeted in the town of Gojra. It was alleged that the Holy Quran had been defiled. That was enough to provoke a Muslim mob to kill Christians and torch their houses and churches. In a rehearsal of similar incidents in the past, gangs of marauders packing weapons and incendiary material arrived in the village to literally add fuel to the fire. The Punjab Law Minister declared that preliminary investigations had revealed no evidence of the Quran having been defiled. The Federal Minorities Minister’s orders to the police to ensure peace and security to the Christian population were reportedly ignored. The Minister claimed that here too the banned militant organization the Sipah-eSihaba was involved.3 The same murderous outfit is also believed to have been responsible for the carnage in Shantinagar in 2005. In that tragic incident a mob of 3000 aided by the police played havoc with the lives and property of the poor unarmed, defenseless Christian minority community. A common factor which emerges in all the bloodletting, whether its victims were the commemorators of the Holy Prophet’s (PBUH) birthday, the Shia mourners or the minority Christian community is the reported involvement of Sipah-e-Sahaba (SS). The SS was born in Jhang in 1984, a product of General Ziaul Haq’s program of Islamisation. It was a Sunni militant organization which not only spewed venom against Shias but was responsible for the targeted killings of hundreds of Shias. Emboldened by the State’s indifference or perhaps even indirect support, the SS assassinated the Iranian Consul in Lahore. It also initiated a campaign of providing recruits from its madrassas to the Afghan jihad.4 CRITERION – April/June 2010 45 Iqbal Ahmad Khan The very same organization, which was allegedly behind the killings of the hapless Christians in Gojra and Shantinagar and which had been banned by the government, was openly besought by the ruling party in the Punjab in an election in Jhang in March 2010 to a provincial assembly seat. In a letter addressed to the Punjab Chief Minister, the Governor of the province claimed that the government of Punjab had released two convicted terrorists of the Sipah-e-Sahaba ahead of the by-election in Jhang to get their support. The Governor urged the Chief Minister to take action against the provincial Law Minister under the Anti-Terrorism Act. The Minister it was alleged was accompanied by known terrorists of the Sipah-e-Sahaba at public meetings addressed by the Minister.5 Such violent encounters among Muslims, while tragic and painful, do not appear all that absurd to those versed in the interpretation of Islam by various ulema, who boast of large followings. Aitzaz Ahsan, a jurist and a scholar, in an address on “A case for Secularism. Were Iqbal and Jinnah secularists?” referred to the observations made by Justices Munir and Kayani of the Punjab High Court which form a part of the report of the Court of Enquiry appointed by the government to determine the causes of unrest in the early 1950s during what was called the antiAhmediyya movement. After eliciting the views of various ulema the Justices observed: “Keeping in view the several definitions (of Islam) given by the ulema, need we make any comment except that no two learned divines are agreed on this fundamental. If we attempt our own definition as each learned divine has done and that definition differs from that given by all others, we unanimously go out of the fold of Islam. And if we adopt the definition given by any one of the ulema, we remain Muslims according to the view of the alim, but kafirs (non-believers) according to the definition of everyone else…….The net result of all this is that neither Shias nor Sunnis nor Deobandis nor Ahl-i-Hadith nor Barelvis are Muslims and any change from one view to the other must be accompanied in an Islamic State with the penalty of death if the government of the State is in the hands of the party which considers the other party to be kafirs.”6 46 CRITERION – Volume 5 No.2 Religion and State in Pakistan Religion-based persecution and violence was virtually unknown in Pakistan during the period spanning its birth and till the 70s. The advent of General Ziaul Haq and his compulsion to gain legitimacy, both within the country and abroad, set in motion a process whose bitter fruit the nation is reaping today. It represented the most drastic and the most disastrous departure from the ideals and principles of the Quaid-e-Azam Mohammad Ali Jinnah. Unlike Ayub Khan, General Zia had deposed a legitimately elected civilian government which constituted an act of treason under Article 6 of the 1973 Constitution. Moreover, unlike the weak and incompetent government Ayub Khan overthrew, that headed by Prime Minister Zulfikar Ali Bhutto was arguably one of the most popular in the history of Pakistan. Thirdly, the army under General Ziaul Haq did not enjoy the same prestige that it did when Ayub Khan was its commander-in-chief. In the past nearly two decades it had been politicized, accused of corruption and held responsible for the shame and humiliation of the 1971 defeat at the hands of India and the subsequent disintegration of the country. General Ziaul Haq was a usurper. The action that he took on 5 July 1977 was purely and simply a power grab. The usurper general was able to extract some measure of legitimacy from an obliging Supreme Court, but this too was conditional. The Supreme Court accepted the legitimacy the 1977 coup on the grounds of the ‘doctrine of necessity’ but while doing so clearly stated that it had validated the coup “not only for the reason that he (CMLA) stepped in to save the country at a time of a grave national crisis….but also because of the solemn pledge ….that the period of constitutional deviation shall be of as short a duration as possible and that during this period all his energies shall be directed towards creating conditions conducive to the holding of free and fair elections leading to the restoration of democratic rule in accordance to the dictates of the constitution.”7 The Supreme Court’s verdict notwithstanding, as the months went by the military regime found itself increasingly isolated, both domestically and internationally. Internally, General Zia decided to acquire the required legitimacy by attempting to transform the Quaide-Azam’s Pakistan into a theocratic state by unilaterally initiating a process known as Islamisation. The period between 1977 and 1984 was traumatic. During this phase, Pakistan’s political system began to CRITERION – April/June 2010 47 Iqbal Ahmad Khan exhibit characteristics commonly associated with totalitarian regimes. In February 1979 General Zia announced the Hadood Ordinance which contained severe punishments for theft, adultery and drinking, such as amputation of hands, stoning and flogging. In a unique decision, the Shariat Court declared that stoning for adultery was against Islam. As a result the Shariat Courts were barred from reviewing martial law ordinances. Through a series of ordinances in 1980, 1982 and 1986 the Pakistan Penal Code and the Criminal Procedure Code were amended to declare anything implying disrespect to the Holy Prophet (PBUH), members of his family, his companions, Islamic symbols and the Quran a cognizable offence, punishable with death, imprisonment or fine depending on the nature of the violation. It is relevant to point out that barring flogging, the other two penalties were never carried out primarily on account of the strong domestic and international criticism directed against these laws. The targets of the most severe criticism were provisions directly affecting women in cases of adultery. Indeed, it became extremely difficult to distinguish rape from adultery. The father of an 18 year old blind girl Safia Bibi registered a case of rape leading to pregnancy against her employers, father and son. Both father and son were finally acquitted while the girl was sentenced to 15 lashes in public, 3 years imprisonment and fine. In view of an enraged public, the Federal Shariah Court rescinded the judgment. A Law of Evidence was promulgated which in certain cases equated the evidence of two females with that of one male. The Law of Qisas (Retribution) and Diyat (Blood Money) provided half payment for a murdered woman as against full payment for a murdered man. As a general policy, the government exercised its patronage in favor of the explicitly conservative elements. Among other things, the new approach led to the task of rewriting the history of Pakistan, in order to highlight the vanguard role of Islamic ideology and ulema in the struggle for independence. General Zia’s inspiration and concept of an Islamic state came from Maulana Maudoodi the head of the Jamaat-eIslami whose Islamic state involved an all powerful, monolithic, public institution upholding a coherent religious ideology. Maudoodi’s state 48 CRITERION – Volume 5 No.2 Religion and State in Pakistan envisioned that the full weight of state power would ensure that all segments of society reflected the character of an Islamic polity.8 Omar Noman analyzing General Zia’s Islamization process claims that it represented a distinct shift in the ideological paradigm within which the state operated. It marked a departure from the conception of society held by the Muslim elite, which led the Pakistan Movement. Their perception of society symbolized a different form of Islamic response to the modern age. They were the intellectual descendents of Sir Syed and Allama Iqbal, both of whom evolved a flexible interpretation of Islam, which made it compatible with 19th century Western liberalism. This was done by separating the principles from the letter of the law, disengaging the spirit of religion from the social context of 7th century Arabia. This view of religion necessitated the rejection of specific punishments and measures contained in the Quran and the Hadith on the grounds that they were meant to be applied only to the particular social formation in which the prophet and his immediate descendents lived. This approach was one in which the delineation of what is good and desirable is made, and such positive attributes are shown to be compatible with the spirit of religion properly understood. This is in direct contradiction with the fundamentalism preached by the Zia regime.9 Unfortunately for the general his Islamization program could not confer legitimacy to his rule. He then had to resort to further political maneuvering to achieve his goal. Assistance for the general came from a totally unexpected quarter – the Soviet Union. On 27 December 1979 the Soviet Union invaded Afghanistan. This set in motion a series of events whose repercussions we continue to feel to this day. The embattled General Ziaul Haq accepted the US and Saudi proposal for the use of Pakistan territory to train, arm and launch Afghan freedom fighters into Afghanistan in a jihad to force the Soviets to withdraw. The goal was achieved 10 years later. In these 10 years, Pakistan received over 3 million Afghan refugees and guns, drugs and violence spread like cancer within Pakistan society. The CIA reportedly recruited some 25,000 Arabs to join the Jihad or holy war against the Soviet Union. There were hundreds of others who, fired by the passion to rid a Muslim CRITERION – April/June 2010 49 Iqbal Ahmad Khan country of infidels, volunteered their services and provided financial assistance. Among them Osama Bin Laden and his Al Qaeda outfit. When the Soviet Union withdrew from Afghanistan in February 1989, Pakistan was confronted not only with 3.5 million Afghan refugees, thousands of non-Afghan Mujahideen who refused to return to their countries of origin, but also with a civil war in Afghanistan among the Mujahideen factions which had ousted the Soviet Union. To make matters worse for Pakistan, the US which was the principal beneficiary of the war packed up and left. It simultaneously imposed economic and military sanctions on Pakistan on account of its nuclear program. These multiple problems Pakistan had to manage at a time when internally it was undergoing a transition from an 11 year old military dictatorship to a democratic order. Pakistan at this stage could have totally extricated itself from the Afghan imbroglio and concentrated its energy and resources on internal consolidation and growth. Unfortunately, a nascent democratic government had to on matters of national security give in to the military who adopted the policy of acquiring ‘strategic depth’ in Afghanistan and of ‘coercive diplomacy’ in Kashmir. The former led to the creation of the Taliban and the latter to Jaish-e-Mohammad and the Lashkar-eTayyaba. These groups have now combined with Al Qaeda to terrorize Pakistan. It was this extremely sensitive and potentially divisive relationship between religion and the state which was uppermost in the mind of Quaid-e-Azam Mohammad Ali Jinnah as he prepared to confront multiple challenges facing the new state of Pakistan. The Quaid had the utmost respect for the rule of law, justice, fair play and equity. He was liberal, modern and democratic. His belief, that the formal mixing of religion and politics, would necessarily lead to intolerance, in-fighting, and disunity surfaces time and again in his political career. It is evident as early as 1929 during the debate in the Legislative Assembly on the Child Marriages Restraint Bill which was introduced in 1927. The bill had evoked widespread anger among the fundamentalists, who sent thousands of petitions to the Assembly alleging that the bill violated 50 CRITERION – Volume 5 No.2 Religion and State in Pakistan rights of the Muslims and demanded that it be withdrawn. This massive opposition from the fundamentalist lobby did not cow down Jinnah. In his remarks, while accepting the right of the fundamentalist lobby to voice their anti-bill sentiments, Jinnah asserted that he could not allow such opposition to drag them down and be an impediment to the march of progress. “In the name of humanity, I ask you. And if we are going to allow ourselves to be influenced by the public opinion that can be created in the name of religion, when we know that religion has nothing whatsoever to do with the matter I think we must have the courage to say: No, we are not going to be frightened by that.” Several years later on 7 February 1935 Mr. Jinnah observed in the Legislative Assembly that “Religion should not be allowed to come into politics…..Religion is merely a matter between man and God.”10 Admittedly, there were certain contradictions between the twonation theory and the demand for a state where religion and politics would be in separate compartments. On the eve of the passage of the Lahore Resolution Mr. Jinnah in his presidential address spelt out the two-nation theory. He said that Islam and Hinduism were not religions in the strict sense of the word, but distinct and different social orders. The Muslims and the Hindus did not inter-marry, they did not inter-dine; they derived their inspirations from different sources of history; the hero of one is the foe of the other and their victories and defeats overlap; indeed they belonged to two different civilizations based mainly on conflicting ideas and conceptions. While the emphasis on theological divergence in Jinnah’s address was unmistakable, the Lahore Resolution passed the next day had only a marginal reference to religion. It was this resolution that became the manifesto of the All India Muslim League and it was on this basis that an overwhelming majority of the Muslims opted for a separate state for the Muslims of India. Similarly, when in April 1943 Dr. Kazi at the Muslim League’s Delhi session called for the constitution of the proposed state of Pakistan to be based on the Quran and the Sunnah and the principles of government established during the reign of the first four Caliphs, Jinnah insisted that CRITERION – April/June 2010 51 Iqbal Ahmad Khan the resolution be withdrawn.(Pirzada, Foundations of Pakistan.) In the same fashion Allama Iqbal, the poet-philosopher who played an important role in the freedom movement and in raising political consciousness among Muslims took pains at the 1930 Allahabad meeting of the All India Muslim League to reassure Hindus and Sikhs that there would not be religious law in the autonomous regions where there was Muslim rule. Pakistan was the culmination of Jinnah’s decades long struggle. It was the fruition of a movement whose direct aim was the establishment of sovereign power for the Muslims of South Asia within a defined territory. This and not a theocratic state had the support of the people who believed that their political and socio-economic interests would be best safeguarded in an independent Muslim state. Quaid-e-Azam Mohammad Ali Jinnah’s address on 11 August 1947 to the Constituent Assembly of Pakistan on his election as its president embodied a definition of the struggle that led to the establishment of Pakistan and the foundation on which the edifice of the state was to be raised. The address was by the creator of Pakistan to those entrusted by the people to formulate the fundamental law governing the new state and delivered on the eve of the formal establishment of the state. It was perhaps the most important speech of his political career. Given the enormous significance of the address, it would be appropriate to reproduce the words that the Quaid used and which pointed in one and only one direction, namely, that religion is essentially a personal matter and that is how it should be in the new state. The Quaid said: “If you change your past and work together in a spirit that everyone of you, no matter to what community he belongs, no matter what relations he had with you in the past, no matter what is his color, caste or creed, is first, second and last a citizen of this State with equal rights, privileges and obligations, there will be no end to the progress you will make……In course of time all these angularities of the majority and minority communities, the Hindu community and the Muslim community- because even as regards Muslims you have Pathans, Punjabis, Shias, Sunnis and so on among the Hindus you have Brahmins, Vashnavas, 52 CRITERION – Volume 5 No.2 Religion and State in Pakistan Khatris, also Bengalees, Madrasis and so on-will vanish…..This has been the biggest hindrance in the way of India to attain the freedom and independence….Therefore, we must learn a lesson from this. You are free; you are free to go to your temples, you are free to go to your mosques or to any other place of worship in this State of Pakistan. You may belong to any religion or caste or creed-that has nothing to do with the business of the State. As you know, history shows that in England conditions, some time ago, were much worse than those prevailing in India today. The Roman Catholics and the Protestants persecuted each other…… The people of England in course of time had to face the realities of the situation and had to discharge the responsibilities and burdens placed upon them by the government of their country and they went through that fire step by step. Today, you might say with justice that Roman Catholics and Protestants do not exist; what exists now is that every man is a citizen, an equal citizen of Great Britain and they are all members of the Nation….. Now I think we should keep that in front of us as our ideal and you will find that in course of time Hindus would cease to be Hindus and Muslims would cease to be Muslims, not in the religious sense, because that is the personal faith of each individual, but in the political sense as citizens of the State.”11 The above is an extensive quote from the Quaid’s address. It is necessitated by the fact that it contains in clear and unambiguous language guidelines for members of the Constituent Assembly entrusted with the onerous responsibility of drafting the fundamental law of the country. He draws attention to the ethnic and religious diversity existing in the new state. He recalls the conflict between the Protestants and Catholics and admires the measures taken by the State to ensure that both communities live side by side in peace and harmony. He cites this as the ideal that needs to be kept in mind and if this indeed is the case then in ‘course of time Hindus would cease to be Hindus and Muslims would cease to be Muslims, not in the religious sense, because that is the personal faith of each individual, but in the political sense as citizens of the State.’ CRITERION – April/June 2010 53 Iqbal Ahmad Khan Similar interpretation of the Quaid’s speech and thinking is given by leading scholars and jurists. Aitzaz Ahsan in the above-mentioned address at the Institute of Peace in Islamabad in his typically learned and logical fashion makes a convincing case for the separation of religion and the state. In the process he quotes the observations of Justices Munir and Kayani contained in the report of the Court of Enquiry appointed by the government to determine the causes of the unrest in 1953 during the anti-Ahmediyya movement. The Justices characterize the Quaid’s 11 August address as a landmark event which was intended to define the ideal towards which the new state was to devote all its energies. “There are repeated references in this speech to the bitterness of the past and an appeal to forget and change the past and to bury the hatchet. The future subject of the state is to be a citizen with equal rights, privileges and obligations, irrespective of color, caste, creed or community. The word ‘nation’ is used more than once and religion is stated to have nothing to do with the business of the state and to be merely a matter of personal faith for the individual.”12 These are the observations of two learned judges of the Punjab High Court and they leave no doubt as to the role of religion in the new state. The Quaid’s speech has also been commented upon by Hamid Khan, a Senior Advocate of the Supreme Court of Pakistan and a former president of the Supreme Court Bar Association. In his book “Constitutional and Political History of Pakistan” Hamid Khan observes that it is evident that “Jinnah’s prescription for the Constitution of Pakistan included guarantees that: one, all citizens of Pakistan would be equal regardless of their belief, caste or creed; two, that all citizens would be guaranteed freedom to practice whatever religion they believed in; three, that all religious, sectarian, ethnic, linguistic, and other similar distinctions would cease to matter in political sense, and the Constitution would ensure that the nation should progress regardless of such distinctions; and, four, that Pakistan would not be a theocratic state and religion would be a citizen’s private and personal matter.”13 Dr Mubarak Ali, a respected historian and former Chairman of the History Department, Karachi University believed that Jinnah was a perfect secularist as far as his private life was concerned, yet he believed 54 CRITERION – Volume 5 No.2 Religion and State in Pakistan in using religion for public consumption to achieve his political ends. The propelling slogan during the struggle for Pakistan was to establish a distinct identity of Muslims as a nation. And Jinnah used Islam as a motivating force to rally the Muslims to the cause of Pakistan politically. But the state he aimed to create was to be secular, not a theocracy. And the method to achieve the goal was not a religious movement but political agitation. At this stage it would be appropriate to take a glance at the rise of secularism in Europe, particularly since the Quaid-e-Azam made a special reference in his 11th August speech to the animosity and persecution that once existed between Protestants and Catholics. It is noteworthy that religion-generated violence is virtually unheard of in the overwhelmingly Christian countries of Western Europe and the United States. This was not the case a few centuries ago. In the 15th century the vast mass of Europeans were Christians and those who lived in Central and Western Europe owed complete allegiance to the Catholic Church. They believed that a common faith and a common moral code was part and parcel of a safe, secure and stable society. Every child born to Christian parents was born into the Church. The Church had recognized official standing and the state made sure that its citizens respected the authority of the Church. The Church, it was believed, was founded by Jesus Christ to teach and disseminate his message to enable its members to properly order their lives in this world and to prepare for the hereafter. Those guilty of showing disobedience or challenging the Church’s divine authority, were likely to be punished by the state. As the 16th century dawned an increasing religious consciousness made many Christians aggressively and many eloquently and wittily question the corruption, immorality and worldliness rampant both in Rome, where the Pope resided as well as among clergymen in general. The invention of the printing press enabled this criticism to be disseminated among the masses by a host of pamphleteers. There were, on the one hand, many within the Catholic Church who demanded religious reform, which could best be achieved by means of a reformation within the Catholic Church, that is, without disturbing the unity of the Church. A large number of critics of the Church also felt, CRITERION – April/June 2010 55 Iqbal Ahmad Khan in common with the reformists that all good Christians should be able to find under divine guidance the same truths in the same Bible. Martin Luther was convinced that his reading and interpretation of the Bible reflected true and pious Christianity, as did John Calvin with respect to his interpretation or Henry VIII of England who regarded himself as infallible and like Luther and Calvin put to death many in the name of religion who differed from them in their reading of the religious texts. The split between the Catholics and the Protestants transformed Europe into a bloody battlefield the likes of which Europe had seldom experienced. “Catholic leaders felt that they were defending traditional Christian civilization against anarchical forces of rebellion and greed. Protestant leaders felt quite as sincerely that they were restoring the pure Gospel and safeguarding it against despotism, superstition and corruption. To the former, Luther and Calvin and all the so-called “reformers” were possessed of devils; to the latter, the Pope was the beast, the “anti-Christ.”14As the battles surged through Europe every Christian, Catholic or Protestant fanatically believed in his own version of Christianity and was prepared to kill to have his ideas accepted. The religious upheaval did indeed consume thousands of men, women and children who became victims of bigotry and fanaticism. In the long run, however, the unprecedented intolerance and bloodshed served to create a situation which contributed significantly to religious tolerance. The belief that political unity depended on religious unity gave way to the realistic assessment that dictated tolerance of religious differences. It was felt that diversity in religion was not necessarily destructive of national unity, that a state or a national monarchy might be strengthened, rather than weakened, by extending its protection to religious minorities. Secondly, sincere Christians, especially if they were of a minority group in a given country, were anxious to secure toleration for themselves and could be counted upon to back the efforts of conciliatory statesmen. In Protestant countries the Catholic minority espoused the principle of religious liberty, while in Catholic countries Protestants were natural advocates of freedom. 56 CRITERION – Volume 5 No.2 Religion and State in Pakistan The most important lesson derived from the religious upheaval of the 16th century by the statesmen and political thinkers outweighed all the other benefits. It gave a strong impetus to a process, called secularization, which involved the gradual transfer of direction and control of numerous activities to state authority. Previously, these activities involving education and taxes, in certain cases were under the exclusive jurisdiction of the Church. Religion increasingly became a personal affair and a wide array of social, economic and educational matters passed under the jurisdiction of the temporal power. In the United States too, a society which grew as immigrants from all corners of the world professing different religions and cultures swelled the US population, religious conflict or even religious intolerance is practically unknown. The roots of religious tolerance go back to the same constitutional amendment which guaranteed freedom of speech. This First Amendment to the Constitution contains the equally basic guarantee of freedom of religion. It states that “Congress shall make no law respecting an establishment of religion or prohibiting the free exercise thereof.” Two provisions concerning religion are contained in these famous words of the First Amendment. The first, the “nonestablishment” clause forbids the government to support any particular religious establishment. The second, the “free exercise” clause, bars the government from interfering with the freedom of Americans to worship as they wish. The separation of the Church from the State was reinforced by President Thomas Jefferson in 1802 in a letter to a group known as the Danbury Baptists. President Jefferson wrote: “Believing with you that religion is a matter which lies solely between Man & his God, that he owes account to none other for his faith or his worship, that the legitimate powers of government reach actions only, & not opinions, I contemplate with sovereign reverence that act of the whole American people which declared that their legislature should “make no law respecting an establishment of religion, or prohibiting the free exercise thereof,” thus building a wall of separation between Church & State” 15 CRITERION – April/June 2010 57 Iqbal Ahmad Khan This was further reinforced by President James Madison, when in a letter to Edward Livingston he expanded, “We are teaching the world the great truth that Governments do better without Kings and Nobles than with them. The merit will be doubled by the other lesson that Religion flourishes in greater purity, without than with the aid of Government.” The 16th century religious wars tore apart the fabric of European society. European leaders were quick to learn lessons so that the postWestphalian political order set in motion the process of separating religion and the state. From then on religion became essentially a personal affair and the state protected every individual’s fundamental rights, irrespective of the religion he professed. The system ended religious persecution and religious conflict in Europe. The founding fathers in the United States were quick to grasp the significance of this development for their country and ensured that their constitution placed religion and the temporal responsibilities of the state in different compartments. The mixing of religion and politics has harmed our national unity, undermined peace and stability, stymied our economic development and tarnished our image abroad. It now poses a serious challenge to our national security. It has become a serious impediment to the emergence of Pakistan as a modern state. It is ironic that the most vociferous protagonists of a theocratic state have been a hated military dictator and a political party which was opposed to the Quaid and the Pakistan movement and whose performance in the elections has been at best rather mediocre. Now that we have a representative government it is in its interest, in the interest of democracy and that of the future of Pakistan to reverse the creeping religious extremism in the country. The Constitution too needs to be amended to align it with the ideas and beliefs of the founder of the country. References: 1 2 3 4 5 58 Dawn, 1 March 2010. Daily Times, 2 March 2010. Daily Times, 2 August 2010. Jalal, Ayeshah; Partisans of Allah. The News,6 March 2010. CRITERION – Volume 5 No.2 Religion and State in Pakistan 6 7 8 9 10 11 12 13 14 Quoted by Aitzaz Ahsan in his lecture on “A Case for Secularism: Were Iqbal and Jinnah Secularists?” delivered at the Institute of Peace, Islamabad, 1994. Judgment of the Supreme Court of Pakistan headed by Chief Justice Anwar-ul-Haq and delivered on 10 November 1977. Noman, Oman; Pakistan – Political and Economic History since 1947. Ibid. Jinnah’s address to the Central Legislative Assembly, 7 February 1935. Quaid-e-Azam Muhammad Ali Jinnah, Speeches and Statements. Quoted by Aitzaz Ahsan in his lecture on “A Case for Secularism: Were Iqbal and Jinnah Secularists? Khan, Hamid: Constitutional and Political History of Pakistan. Hayes, Carlton J.H.; Modern Europe to 1870. 15 Thomas Jefferson, “Jefferson’s Letter to Danbury Baptists.” CRITERION – April/June 2010 59 NUCLEAR POLITICS AND SOUTH ASIA S. Iftikhar Murshed* Abstract (Chance or accidental discoveries may have played a part in the development of nuclear weapons yet, had they not occurred, the Manhattan Project would still have been initiated, albeit, at a later date. The inevitable would merely have been postponed. The psychology of strength is consistently evident in the politics of nuclear weapons. The initial years of nuclear weapons technology clearly demonstrated that monopoly of a weapon of mass destruction leads to assertiveness in foreign policy. Its possession by more than one power results in a balance of terror which was the signature tune of the Cold War era. The experience of South Asia has been no different. An invisible Berlin Wall of unresolved disputes, particularly Kashmir, obstructs the establishment of good-neighbourly and cooperative relations between Pakistan and India. The tensions that have marked the equation between the two countries for the last six decades have resulted both in conventional as well as sub-conventional wars. After the nuclearization of South Asia in 1998, the continuation of aggressive postures by either country can have disastrous consequences. For this precise reason, there is an urgent need for a strategic restraint regime involving the three interlocking elements of conflict resolution, nuclear and ballistic restraint and conventional balance. Author) * S. Iftikhar Murshed is the publisher of Criterion. Email: [email protected] Nuclear Politics and South Asia The Initial Phase in West The possession of nuclear weapons has influenced the manner in which countries interact with each other. This is as true of contemporary South Asia as it was of the bipolar world during the Cold War era. These weapons of mass destruction were introduced by the West and it was there that the nuclear factor became a major determinant of foreign policy. The experience of South Asia has been no different after Pakistan demonstrated its nuclear capability at the end of May 1998 in response to the Indian nuclear tests earlier that month. The contours of nuclear diplomacy emerged in the US-led West at the end of the Second World War and since then the possession of nuclear weapons has not only determined the pattern of interstate negotiations but has also been instrumental in establishing a tenuous global and regional equilibrium based on the fear of total annihilation. It is said, perhaps wrongly, that the world stumbled across the nuclear bomb by chance. According to physicist Hans Bethe it was only very “slowly and painfully, through a comedy of errors, (that) the fission of uranium was discovered.” Research scholars support this view and explain that chance was instrumental in Enrico Fermi’s discovery in 1934 that the atom’s nucleus is capable of capturing slow neutrons. Fermi’s “seemingly accidental findings” were predicated upon developments that began with “Albert Einstein’s famous 1905 papers and continued with subsequent reports and inventions by scientists such as Leo Szilard (in connection with the cyclotron) and James Chadwick (in connection with the existence of the neutron).”1 These “accidents,” which may have been merely incidental to ongoing research and development, accelerated the advent of the nuclear age with the testing of the world’s first device by the US on 16 July 1945 in the desert north of Alamogordo, New Mexico. On 6 August of that year the US dropped an atomic bomb on Hiroshima and three days later on Nagasaki thereby ending the Second World War. This unleashed a chain of events that was to have permanent and profound political consequences. After the Soviet Union tested its nuclear device CRITERION – April/June 2010 61 S. Iftikhar Murshed four years later, the Cold War began and mutually assured destruction became the dominant theme of the era The initial US monopoly of the bomb resulted in political decisions which, under other circumstances, would have been inconceivable. Foremost among these was Washington’s decision to rearm and rebuild its erstwhile enemy, Germany. At Yalta, Roosevelt had unambiguously affirmed that American public opinion would never allow the reemergence of Germany as a security threat and, furthermore, US troops would have to be brought home from Europe in view of the isolationist pressures that were gathering momentum in Congress. A broad agreement on controlling Germany was sought with the Soviet Union, the other major military power. Roosevelt also favoured the early dismantling of the German military-industrial complex which would result in the twin objectives of ensuring against German resurgence and provide short term reparations to the war-ravaged Soviet economy. The Yalta agreement envisaged: (a) big power control of Germany; (b) payment of approximately US $ 20 billion (half of which was to go to the Soviet Union) by Germany as reparations; and, (c) a vague declaration on the status of Eastern Europe. After Alamogordo, US policy changed radically. The idea of the neutralization of Germany was abandoned. Washington acted unilaterally to reconstruct the western portion of the country and, later, to integrate it into a West European military alliance. Similarly, the understanding on German reparations was also discarded while little respect was shown for Soviet security concerns in East Europe. The nuclear monopoly that the United States had acquired induced, in the words of President Harry Truman, “an entirely new feeling of confidence.” Shortly after Hiroshima, the Secretary of War, Henry Stimson, noted in his diary that Secretary of State James Byrnes “was very much against any attempt to cooperate with Russia. His mind is full of problems with the coming meeting of foreign ministers and he looks to having the presence of the bomb in his pocket, so to speak, as a great weapon to get through the thing.” It is significant that the nuclear tests in June 1946 at the Bikini Atoll in the Pacific, code-named “Operation 62 CRITERION – Volume 5 No.2 Nuclear Politics and South Asia Crossroads,” took place when Byrnes was meeting Vyacheslav Molotov, the foreign minister of the Soviet Union. By 1948, the US had fifty weapons in its nuclear arsenal. US policy, particularly on the German question, became more assertive and unilateral with the increase in its nuclear stockpile. It was obvious that this would be unacceptable to the Soviets. On 29 August 1949, the USSR conducted its first nuclear test in Kazakhstan. The other powers were not to be left behind. Britain went nuclear in 1952 and France conducted its first test in 1960 in Algeria while China exploded a nuclear device on 16 August 1964 at its Lop Nor site. Five declared nuclear weapons states had thus come into existence and the possibility of the complete destruction of the world became a persistent nightmare. The Cuban missile crisis of 1961 provided startling evidence that the danger was real. The following year saw nuclear testing at its peak with the United States and the Soviet Union carrying out more than 170 explosions between themselves. More than two thousand nuclear tests were conducted in the period 1945-1996 as per the following computation: US USSR France UK China India Atmospheric: 215 219 50 21 23 0 Underground: 815 496 159 24 22 1 Total: 1030 715 209 45 45 1 It is significant that after the peak year for nuclear testing the Partial Test Ban Treaty of 1963 was signed. Under this accord, the United States, the Soviet Union and Britain agreed to stop all nuclear explosions in the atmosphere, underwater and, with an eye to the future, in outer space. From that time nuclear tests went underground though France and China continued testing in the atmosphere till 1974 and 1980 respectively. It took thirty-three years and an end to the Cold War for the world to move on from the Partial Test Ban Treaty to the imperfect Comprehensive CRITERION – April/June 2010 63 S. Iftikhar Murshed Test Ban Treaty (CTBT) of 1996. The few and far between steps towards nuclear disarmament in this period include: (a) The Nuclear Non-Proliferation Treaty (NPT) which was opened for signature on 1 July 1968 in London, Moscow and Washington forbids the spread of nuclear weapons beyond the five declared nuclear powers. India, which exploded its device in 1974, was not considered a nuclear power under the NPT. All countries except Pakistan, India and Israel became signatories. (b) On 3 July 1974 the US and the USSR signed the Threshold Test Ban Treaty limiting underground tests to 150 kilo tons which is equivalent to 150,000 tons of high explosives. (c) On 31 July 1991 the two superpowers signed START 1 which reduced their nuclear arsenals by about one-fifth to between eight and nine thousand weapons. (d) START II which was signed by the United States and Russia on 3 January 1993 aimed at reducing long-range nuclear arsenals to a maximum of 3,500 warheads each. The Comprehensive Test Ban Treaty Prior to the vote in favour of the CTBT by 158 members of the UN General Assembly on 10 September 1996, France conducted its last nuclear test in the South Pacific in 1995 whereas China exploded its final underground device at Lop Nor, in the remote north-western desert region of Xingjiang on 29 July 1996. India, along with Bhutan and Libya voted against the CTBT while Syria, Lebanon, Cuba, Mauritania and Tanzania abstained. The CTBT was signed by the five declared nuclear powers on 25 September 1996. On this occasion, President Clinton said that he had signed the Treaty with the same pen that had been used by President John F. Kennedy for concluding the Partial Test Ban Treaty of 1963. The purpose was probably to emphasize the importance of the CTBT 64 CRITERION – Volume 5 No.2 Nuclear Politics and South Asia but it also served as an unintended reminder that it took more than three uneasy decades for the world to move from a partial to a comprehensive test ban treaty despite its imperfections. However, on 13 October 1999, the US Senate rejected ratification of the CTBT. Subsequently, during his election campaign in 2008, President Barack Obama declared: “As president, I will reach out to the Senate to secure the ratification of the CTBT at the earliest practical date.”2 This was reiterated more forcefully when Obama visited Prague on 5 April 2009 during which he also committed the United States to “take concrete steps towards a world without nuclear weapons.” However, the US-India nuclear cooperation agreement which was signed by Condoleeza Rice and Pranab Mukerjee on 10 October 2008 not only implicitly recognizes India as a nuclear weapons state but has also administered a crippling blow to the prospects of strategic restraint regime in South Asia. Furthermore, this was preceded by a similar deal between Paris and New Delhi the previous month. “A world without nuclear weapons” as envisaged by President Obama is, therefore, unlikely. The CTBT, contrary to what the initials imply, is not a comprehensive treaty - the “Basic Obligation” as defined in Article I of the treaty is restricted to prohibiting nuclear test explosions but not all tests related to nuclear weapons. This left the door open for nuclear weapon states to conduct sub-critical tests to ensure the safety and reliability of their arsenals and to continue research and development for the qualitative improvement of the devices already in their possession. At the Ad Hoc Committee of the Conference on Disarmament where the text of the treaty was painstakingly deliberated upon for more than two years, Pakistan proposed amendments that would have proscribed qualitative improvements of nuclear weapons in accordance with the negotiating mandate of the Committee. However, this was rejected by the nuclear weapons states. The provisions of the treaty fell short of the expectations of the international community inasmuch as there was an absence of any commitment, either in the operative or the preambular portion of the text, to nuclear disarmament and to the elimination of all nuclear weapons within a time frame. Through the CTBT negotiations India CRITERION – April/June 2010 65 S. Iftikhar Murshed played a waiting game. The hope, quite clearly, was that some other country would block the proposed treaty. It was only in 1996, when it became apparent that the CTBT would be concluded, that India tabled its demand for a “time-bound” programme for nuclear disarmament to justify its rejection of the treaty. No such precondition was stipulated when India co-sponsored the US resolution at the UN General Assembly in 1993 proposing the CTBT negotiations nor did it raise this issue at the Ad Hoc Committee meetings between 1994 and 1995. During the negotiations, Pakistan, along with several other countries, had repeatedly affirmed that the verification of the CTBT must be accomplished primarily by the International Monitoring System (IMS) and that on-site inspections (OSIs) must be a rare and exceptional occurrence. In this context it was also accepted that IMS information would have primacy over data obtained from National Technical Means in view of the unequal capabilities of states in this respect. Sufficient safeguards were built into the Treaty against intrusive or abusive on-site inspections, including the requirement of approval for an OSI by 30 of the 51 members of the Executive Council as well as the right of the inspected state to deny access to certain sensitive facilities and buildings etc. The decision-making formula in the Executive Council which was changed from a simple majority to 30 votes ensured that the process would not be dominated and determined by the major powers. Although the CTBT has not entered into force, a monitoring mechanism is in place. This outfit employs seismology, hydro-acoustics, infrasound and radionuclide methods to monitor the underground, the waters and the atmosphere whenever there is any sign of a nuclear explosion. Despite the reservations of countries such as Pakistan, onsite inspections will be provided for after the treaty comes into force. Currently the monitoring network consists of 337 facilities located worldwide. By September 2009, 250 of such facilities had been certified. The information collected by these stations is processed and analysed at the international data centre of the Vienna-based Comprehensive Test Ban Treaty Organization and then sent to countries that have signed the Treaty.3 66 CRITERION – Volume 5 No.2 Nuclear Politics and South Asia The “Entry into Force” provisions under Article XIV require the treaty to be signed and ratified by the 44 “Annex 2 states” i.e., states that had participated in the CTBT negotiations between 1994 and 1996 and possessed nuclear power reactors or research reactors at that time.4 This was to include the five nuclear powers and the three threshold states, i.e., Pakistan, India and Israel. It was Pakistan that had insisted on the inclusion of this clause on the ground that the treaty’s effectiveness depended on its simultaneous acceptance by the nuclear capable states. This was staunchly resisted by India at the time of the negotiations. As of November 2009, 151 states ratified the CTBT while an additional 31 countries, including nine of the Annex 2 states, have signed the treaty but are yet to ratify it. 5 India, Pakistan and North Korea are not signatories. Chance or accidental discoveries may have played a part in the development of nuclear weapons yet, had they not occurred, the Manhattan Project would still have been initiated, albeit, at a later date. The inevitable would merely have been postponed. The psychology of strength is consistently evident in the politics of nuclear weapons. The initial years of nuclear weapons technology clearly demonstrated that monopoly of a weapon of mass destruction leads to assertiveness in foreign policy. Its possession by more than one power results in a balance of terror which was the signature tune of the Cold War era. The Nuclear Issue and South Asia There has never been any ambiguity in India’s objectives of developing a nuclear weapons capability. When the Indian Atomic Energy Commission was established in 1948, Prime Minister Jawaharlal Nehru expressed the view that “every country would have to develop and use the latest scientific device for its protection.” This was echoed by Dr. Homi Jehangir Bhabha (1909-1966), the father of India’s nuclear industry, when he said that it was imperative for his country to pursue a “dual capacity” research and development programme. Subsequent CRITERION – April/June 2010 67 S. Iftikhar Murshed events would show that these initial pronouncements were based on a well considered political decision to acquire nuclear weapons. Pakistan’s stance on nuclear weapons, unlike that of India, has not been consistent. From 1947 to 1970 it had fought two wars with its more powerful neighbour and these resulted in stalemates. This gave Pakistan the confidence that despite India’s military prowess, it would be able to acquit itself well in the event of a future conflict. In that period, Pakistan did not seriously entertain any ambition of acquiring nuclear weapons and the few non-proliferation initiatives that it took were sincere. However this was to change after its conclusive defeat in the 1971 war with India which resulted in the dismemberment of the country and the creation of Bangladesh. It was then that Pakistan realized that it had no other option but to pursue a nuclear weapons programme as only the possession of such a device would neutralize India’s conventional military superiority. From 1971 till 28 May 1998 when Pakistan demonstrated its weapons capability, in response to India’s nuclear tests earlier that month, it sought to capture the high moral ground, while pursuing a clandestine nuclear weapons development programme, by proffering several regional non-proliferation proposals which it knew New Delhi would reject. India’s approach was far less subtle and was predicated on the unattainable demand of total global nuclear disarmament. It made the usual noises about its commitment to the elimination of weapons of mass destruction but did little to hide its nuclear ambitions. All this was known to the international community which did not seriously discourage India from pursuing its research and development efforts to acquire a nuclear arsenal. For instance, no safeguards were required for the research reactor CIRRUS that was supplied by Canada. In addition, Canada also assisted India with a heavy water plant, a nuclear fuel complex and two large reactors in Rajasthan. For its part, the United States provided 21 tons of heavy water without safeguards, two light water reactors were financed through US AID and thirteen hundred scientists were trained by the Americans. Washington also helped India to build a reprocessing facility in Trombay and provided 68 CRITERION – Volume 5 No.2 Nuclear Politics and South Asia training to 24 specialists for this purpose. Expertise and technological know-how for the extraction of plutonium from spent nuclear fuel were provided by France. On 7 September 1972, Prime Minister Indira Gandhi gave verbal authorization to the scientists at the Bhabha Atomic Centre to assemble the nuclear device they had designed for testing.6 Throughout its development phase the device was usually referred to as the Smiling Buddha and it was tested at Pokhran on 18 May 1974 coinciding with the Buddha Jayanti festival in India marking the birth of Gautama Buddha.7 This was the first confirmed nuclear test by a country outside the five permanent members of the UN Security Council. India described the detonation of its nuclear device as a “peaceful explosion.”The reaction of the international community, even by the most fervent proponents of non-proliferation, was astonishingly muted and the French Atomic Energy Agency actually sent its felicitations. No sanctions were imposed and no preconditions linking aid to nuclear restraint were put forward. On the contrary, a month after the Pokhran test, India was rewarded by the Western donors’ consortium with a 200 million-dollar increase in development assistance. In contrast, it was Islamabad that was singled out for punitive measures. In 1972, an IAEA study had recommended that Pakistan should meet its energy shortfall through nuclear power. Twenty reactors and a complete fuel cycle, including enrichment and reprocessing, were envisaged. That year Canada supplied the KANNUP reactor to Pakistan under safeguards. However, after the Indian nuclear test, the Canadians halted fuel supplies for KANUPP, retracted from their commitment to provide a fuel fabrication plant and then unilaterally ended all nuclear cooperation with Pakistan. Subsequently, France also reneged on a 1979 agreement with Pakistan for the sale of a reprocessing plant under IAEA safeguards. The US Congress enacted stringent non-proliferation laws in this period which impacted mainly on Pakistan as it pursued its clandestine nuclear weapons development programme. The Symington Amendment CRITERION – April/June 2010 69 S. Iftikhar Murshed of 1976 which was modified by the Glen Amendment the following year made it mandatory for the US administration to terminate economic and military assistance to any country which acquired or provided enrichment facilities, materials or technology after 1976 without fullscope safeguards. Thus, India, which had already obtained all the technology it required for pursuing a nuclear weapons programme was automatically exempted from the sanctions prescribed under this law. The country-specific Pressler Amendment was adopted in 1987 under which American assistance and military sales to Pakistan were prohibited unless the US president certified annually that Pakistan did not possess a nuclear device. Analysts in Pakistan believe that the international community was strangely wayward in its commitment to nuclear non-proliferation. They are of the view that a distinct historical pattern is apparent suggesting a conscious decision to provide material and technical assistance for India’s nuclear programme. Similarly, at the multilateral plain, there was an eagerness to accommodate India’s views on non-proliferation. Though Pakistan supported Ireland’s 1957 proposal for a Non-Proliferation Treaty, it was India, not Pakistan, which was represented in the eighteennation Disarmament Conference in Geneva. It was here that India put its full weight behind the Soviet demand to legitimize peaceful nuclear explosions. This was accepted by the NPT’s sponsors and, subsequently, provided India with a tailor-made excuse for its 1974 nuclear test. At the time of the establishment of the IAEA, Pakistan proposed that all civil nuclear activities should be under international inspection. In 1965 it wrote to the co-chairmen of the Geneva conference on disarmament documenting Indian preparations for a nuclear explosion. This warning fell on deaf ears. The representatives of the United States and the Soviet Union did not even accept Pakistan’s note. Similarly, Canada ignored the information provided by Pakistan in 1967 detailing Indian efforts aimed at carrying out a nuclear test by diverting plutonium from the CIRRUS reactor. Subsequently, a step-by-step narration was given by the Pakistan delegation to the UN General Assembly. However, the world chose to ignore these warnings either because of 70 CRITERION – Volume 5 No.2 Nuclear Politics and South Asia genuine scepticism or because of a deliberate, well-thought-out policy of encouraging India in its nuclear ambitions. Despite its reservations, Pakistan voted for the adoption of the NPT in 1968 at the UN General Assembly. It made clear its willingness to accede to the Treaty on condition that the nuclear-weapons-states provide adequate security guarantees to the non-nuclear states and persuade the threshold nuclear powers, including India, to accept the Treaty. In pursuance of this objective, Pakistan convened the Non-Nuclear Weapon States Conference at Geneva in 1968. The meeting was derailed by the US and the USSR. When the KANNUP reactor was being inaugurated in 1972, Prime Minister Zulfikar Ali Bhutto proposed the creation of a nuclear weapon free zone in South Asia. The proposal, which it was obvious would be unacceptable to New Delhi, was revived after the Indian nuclear explosion in 1974 and was repeatedly adopted by the UN General Assembly. A number of other proposals, aimed at achieving an equitable nonproliferation regime in South Asia, also emanated from Islamabad. These included: (a) a joint Pakistan-India declaration renouncing the acquisition or manufacture of nuclear weapons (1978); (b) mutual Pakistan-India inspection of each other’s nuclear facilities (1979); (c) simultaneous Pakistan-India adherence to the NPT (1979); (d) acceptance by the two countries of full-scope IAEA safeguards; (e) a bilateral or regional test ban treaty (1987); and (f) the creation of a zero missile zone in South Asia (1994). These initiatives, which Pakistan knew would be rejected by India, provided it a smokescreen to pursue its own nuclear weapons development programme. These proposals did not elicit the least support from the major powers probably because of their suspicions about Islamabad’s nuclear ambitions. It was only after 1988, when it became apparent that Pakistan had acquired a nuclear capability, that Washington endorsed a regional approach towards non-proliferation in South Asia. Even then sanctions under the Pressler Amendment were imposed on Pakistan in 1990 but this did not deter Islamabad from persevering with its pursuit of CRITERION – April/June 2010 71 S. Iftikhar Murshed nuclear weapons while New Delhi continued with its own nuclear and missile development programmes. The objective of promoting nonproliferation in South Asia was thus defeated. US Defence Secretary William Perry conceded that Pressler was a “blunt instrument” and an impediment to Pakistan-US relations and, in the final analysis, to nonproliferation prospects in South Asia. It was revised, to an extent, by the Brown Amendment which removed form the Pressler law non-military assistance, restored the provision of International Military Education Training (IMET) and allowed a one-time waiver of the Pressler Amendment for the release of embargoed military equipment worth approximately US $ 368 million. This however did not apply to the 28 F-16s purchased by Pakistan but, in all fairness, President Clinton promised to take measures for the refund of the money to Islamabad. The Brown Amendment was signed into law by the US president in January 1996. The realization that Pakistan had attained nuclear capability resulted in its being taken more seriously. Despite the sanctions under the Pressler law, there was a progressive de-escalation of the nuclear-related demands on Pakistan. For instance:(a) In 1991-93, the US asked for a “roll back” of Pakistan’s nuclear programme; (b) in 1993-95, it gave this up and instead proposed a unilateral “verified freeze” in exchange for delivery of Pakistan’s embargoed military equipment; (c) in 1995, the US gave up the “freeze” proposal and, instead, pressed Pakistan to accept the early conclusion of the a multilateral Fissile Materials Cut-off Treaty. Subsequently there was a shift from discriminatory bilateral pressures to the adoption of multilateral and non-discriminatory measures; and (d) in 1996 the Brown Amendment was finally adopted. India and Pakistan were equally duplicitous in their nuclear weapons research and development programmes. The former, despite the Pokhran test of 1974, unconvincingly called for comprehensive nuclear disarmament while further developing its weapons programme; the latter repeatedly proposed a number of measures built around the unattainable goal of a nuclear-free South Asia while stealthily pursuing its quest for the bomb. Despite their declaratory policies, neither New Delhi nor Islamabad was committed to either disarmament or non72 CRITERION – Volume 5 No.2 Nuclear Politics and South Asia proliferation. India’s nuclear programme was not merely for reasons of security but was also motivated by its yearning to acquire the status of a major power. After its bitter experience in 1971, Pakistan’s nuclear ambitions were security-driven and were spurred by the conventional military imbalance in South Asia that was weighted heavily in favour of India. Though Islamabad had acquired a nuclear weapons capability by the end of the 1980s, like Israel, it pursued a policy of ambiguity leaving it for the international community to guess whether or not it had the bomb. This was to change after May 1998. India shocked the world by conducting nuclear tests on 11 and 13 May 1998 but even then it did not abandon its declaratory stance of abhorring weapons of mass destruction. It unconvincingly reiterated that it remained committed to nuclear disarmament and maintained that it had been compelled to carry out the tests because of threats to its security. Despite this, it did not conceal its desire for recognition as a nuclear power. Thus in his address to the Lok Sabha on 27 May 1998 Prime Minister Atal Bihari Vajpayee stated: “... In 1947, when India emerged as a free country to take its rightful place in the comity of nations, the nuclear age had already dawned. Our leaders then took the crucial decision to opt for self-reliance, and freedom of thought and action. We rejected the Cold War paradigm and chose the more difficult path of non-alignment. Our leaders also realized that a nuclearweapon-free-world would enhance not only India’s security but also the security of all nations. That is why disarmament was and continues to be a major plank in our foreign policy. “During the 50’s India took the lead in calling for an end to all nuclear weapon testing. Addressing the Lok Sabha on 2 April, 1954, Pt. Jawaharlal, to whose memory we pay homage today, stated ‘nuclear, chemical and biological energy and power should not be used to forge weapons of mass destruction’. He called for negotiations for prohibition and elimination of nuclear weapons and in the interim, a standstill agreement to halt nuclear testing. This call was not heeded. CRITERION – April/June 2010 73 S. Iftikhar Murshed “In 1965, along with a small group of non-aligned countries, India put forward the idea of an international non-proliferation agreement under which the nuclear-weapon States would agree to give up their arsenals provided other countries refrained from developing or acquiring such weapons. This balance of rights and obligations was not accepted. In the 60’s our security concerns deepened. The country sought security guarantees but the countries we turned to were unable to extend to us the expected assurances. As a result, we made it clear that we would not be able to sign the NPT. “The Lok Sabha debated the issue on 5 April, 1968. Prime Minister Indira Gandhi assured the House that ‘we shall be guided entirely by our self-enlightenment and the considerations of national security’. This was a turning point and this House strengthened the decision of the then Government by reflecting a national consensus. “Our decision not to sign the NPT was in keeping with our basic objectives. In 1974, we demonstrated our nuclear capability. Successive Governments thereafter have taken all necessary steps in keeping with that resolve and national will, to safeguard India’s nuclear option. This was the primary reason behind the 1996 decision for not signing the CTBT, a decision that also enjoyed consensus of this House… “India is now a nuclear-weapon State. This is a reality that cannot be denied. It is not a conferment that we seek; nor is it a status for others to grant. It is an endowment to the nation by our scientists and engineers. It is India’s due, the right of onesixth of human-kind. Our strengthened capability adds to our sense of responsibility. We do not intend to use these weapons for aggression or for mounting threats against any country; these are weapons of self-defence, to ensure that India is not subjected to nuclear threats or coercion. We do not intend to engage in an arms race. 74 CRITERION – Volume 5 No.2 Nuclear Politics and South Asia “Our nuclear policy has been marked by restraint and openness. We have not violated any international agreement either in 1974 or now, in 1998. The restraint exercised for 24 years, after having demonstrated our capability in 1974, is in itself a unique example. Restraint, however, has to arise from strength. It cannot be based upon indecision or doubt. The series of tests recently undertaken by India have led to the removal of doubts. The action involved was balanced in that it was the minimum necessary to maintain what is an irreducible component of our national security calculus...’” 8 Vajpayee’s solemn pledge before the lower house of the Indian parliament that India would not use its nuclear weapons for aggression “or for mounting threats against any country” could not have been intended to be taken seriously. Newspapers after the tests at Pokhran carried banner headlines highlighting the provocative statements and threats made by the Indian leadership against Pakistan. Islamabad was told that the strategic balance had changed and that India would teach Pakistan a lesson. On the night between 27 and 28 May, there were credible intelligence reports that India had planned pre-emptive strikes against Pakistan’s nuclear facilities and this left Islamabad with no option but to demonstrate its nuclear capability on 28 and 30 May after which the threats from New Delhi came to an abrupt end. Consequent to the nuclear tests by India and Pakistan, the Conference on Disarmament convened its first ever special session on 2 June 1998. The Pakistan representative identified avoidance of conflict and the easing of current tensions, South Asian nuclear stabilization, rectifying the conventional military imbalance between India and Pakistan; and a just settlement of the Kashmir dispute as the four aspects of the South Asian crisis that needed to be addressed by the international community.9 All this, of course, fell on deaf ears and Pakistan-India tensions have continued to bedevil the South Asian security environment. As in the West during the Cold War era, the nuclear factor was to dominate issues of peace and security in South Asia. After May 1998, the nuclear postures adopted respectively by Pakistan and India became the main determinant of the manner in which the several militarized crises between the two countries would unfold. CRITERION – April/June 2010 75 S. Iftikhar Murshed The Nuclear Postures of Pakistan and India In March 2009, Gen. Shankar Roychowdhry, a former Indian Army Chief of Staff, conceded that Islamabad’s threat of nuclear use had deterred India from undertaking conventional military strikes against Pakistan.10 According to Vipin Narang, a Ph.D. candidate in the Department of Government at Harvard University and a research fellow at Harvard’s Belfer Centre for Science and International Affairs, India’s nuclear weapons failed to deter Pakistan’s sub-conventional attacks in Mumbai and Delhi as well as its “conventional aggression” in the Kargil conflict in 1999.11 Narang identifies three regional nuclear postures, namely, (i) catalytic; (ii) assured retaliation, and; (iii) asymmetric escalation. India has adhered to an assured retaliation posture whereas Pakistan moved from a catalytic posture in the early years of its nuclear weapons program to asymmetric escalation after the May 1998 nuclear tests by the two countries. Analyses of the militarized crises between Pakistan and India since 1986 demonstrate that the asymmetric escalation posture which is built around the first use of nuclear weapons in the event of a conventional attack has been “deterrent optimal” for Pakistan and has dissuaded India from crossing the international border on a number of occasions. In fact because of the widening conventional military imbalance in favour of India, Pakistan currently has no other option but to adopt a credible first use posture. CATALYTIC POSTURE A catalytic posture is based on an ambiguous nuclear capability and is directed at “catalyzing” third party intervention in the form of diplomatic or military assistance in the event of a possible attack by neighbouring countries. If such assistance is not forthcoming then the state employing a catalytic posture threatens to discard the ambiguity surrounding its nuclear capability and unsheathe its weapons thereby escalating the conflict.12 76 CRITERION – Volume 5 No.2 Nuclear Politics and South Asia Thus the distinguishing feature of this posture is that it is not directed at the adversary but at a third party in order to trigger its intervention. As an example, Narang cites the Yom Kippur War of 1973, when Israel put into effect its catalytic nuclear posture. Three days into the war at a time when Egyptian and Syrian forces threatened Israel’s survival, the latter carried out operational checks of its delivery vehicles discernible only to US intelligence to signal that it was seriously contemplating using its nuclear weapons. The purpose was to prompt the urgent supply by the US of conventional state-of-the-art weapons to Israel to deal with the threat and also to pressure the Soviet Union to restrain Egypt and Syria.13 What is important in this illustration, if accurate, is that Israel directed its signal not at Egypt or Syria but at the United States. It is also instructive that Israel’s nuclear capability did not deter the Egyptian and Syrian attack and its rapid intensification. The catalytic posture was also employed by South Africa in the 1980s.14 ASSURED RETALIATION POSTURE The assured retaliation posture is founded on a second strike capability and is aimed at deterring nuclear attack or even the threat of such attack. It entails moving up the spectrum of nuclear capabilities as well as deployment procedures. Central to this posture is the development of a survivable second strike capability that can hit the adversary’s strategic facilities. India and China have adopted the assured retaliation posture. ASYMMETRIC ESCALATION POSTURE The focus of the asymmetric escalation posture is the certainty of rapid (and asymmetric) first use of nuclear weapons against conventional military attacks in order to deter the adversary from such aggression. This obviously entails making nuclear weapons operational and usable at short notice. The credibility of such a posture, built as it is around the first use of nuclear weapons, necessitates transparent capabilities, deployment patterns and conditions of use. This posture is adopted by countries that encounter serious security threats from proximate adversaries that possess superior nuclear and CRITERION – April/June 2010 77 S. Iftikhar Murshed conventional capabilities. Under such circumstances, the first use of nuclear weapons becomes the only option available. In his well-researched article titled “Posturing for Peace? Pakistan’s Nuclear Postures and South Asian Stability,” Narang gives the example of Cold War Europe where NATO and French forces were pitted against a conventionally superior and nuclear-armed Soviet Union. They accordingly adopted an asymmetric escalation posture that threatened the first use of nuclear weapons against Soviet military incursions into Western Europe.15 Though the intensity of the asymmetric escalation posture can vary from massive retaliation to flexible response, its core ingredient is a credible threat of first use of nuclear weapons against conventional aggression in order to deter such an eventuality. The South Asian Experience When India first tested a nuclear device in 1974, it had a rudimentary aircraft-deliverable strike capability. It was under Rajiv Gandhi in the 1980s that it made significant advances on weapons designs and developed nuclear-capable missile systems after which it adopted an assured retaliation posture. Analysts believe that the “core aim of Pakistan’s nuclear weapons program is to prevent a repetition of 1971…to deter an Indian attack that might reduce Pakistan’s size even further, or perhaps even put the country out of existence entirely.”16 After the debacle of 1971 Pakistan is said to have embarked on a nuclear weapons development program. By the end of 1987, the US assessment was that “Pakistan had produced enough fissionable weapons-grade uranium for four to six bombs.”17 Thus by the mid to the late 1980s both Pakistan and India were de facto nuclear weapons states although Islamabad had yet to carry out any tests. This marked the commencement of the South Asian nuclear period and, since then, all three nuclear postures have been adopted in the region. While India has been consistent with its assured retaliation posture, Pakistan switched from a catalytic posture to asymmetric escalation after May 1998 when it discarded its policy of ambiguity and demonstrated its nuclear capability in response to the Indian tests. This entailed the full 78 CRITERION – Volume 5 No.2 Nuclear Politics and South Asia integration of its nuclear weapons into its military forces to credibly and directly deter Indian conventional attacks. In January 2002, the director general of Pakistan’s Strategic Plans Division, Lt. Gen (r) Khalid Kidwai, is reported to have stated that the country’s “nuclear weapons are aimed solely at India. In case that deterrence fails, they will be used if: (a) India attacks Pakistan and conquers a large part of its territory; (b) India destroys a large part of either its land or air forces; (c) India proceeds to the economic strangulation of Pakistan; or (d) India pushes Pakistan into political destabilization or creates large scale internal subversion in Pakistan.”18 The asymmetric escalation posture has been effective in deterring Indian attacks against Pakistan in: (a) the Kargil war; (b) Operation Parakram which was launched after the 13 December 2001 attack on the Indian parliament, and; (c) the 2008 Mumbai attacks. During the Kargil war, according to Lt. Gen. (r) V.K.Sood and Pravin Sawhney, Prime Minister Atal Bihari Vajpayee was “known to have seriously considered a Pakistani nuclear strike had India escalated the war.”19 India’s Chief of Army Staff at that time, Gen. Ved Malik, also admitted that Pakistan’s nuclear posture compelled New Delhi to “rule out full-scale conventional war.”20 In “Four Crises and a Peace Process: American Engagement in South Asia,” P.R. Chari, Pervez Iqbal Cheema and Stephen Cohen agree that the BJP government was firm about “not enlarging the theatre of operations beyond the Kargil sector or attacking Pakistani forces, staging posts, and lines of communications across the LoC, despite the fact that this defied military logic and entailed acceptance of heavier casualties. India’s air force had strict orders to avoid attacking targets in Pakistan-administered Kashmir. This restraint was in marked contrast to India’s response in the 1965 and 1971 conflicts, when nuclear weapons had not entered the equation and it had not displayed any inhibitions in invading Pakistan.”21 Operation Parakram, which was launched on 18 December 2001, involved some 800,000 troops and is said to have been the largest Indian mobilization since 1971. Infantry and mountain divisions CRITERION – April/June 2010 79 S. Iftikhar Murshed were positioned along the LoC while India’s three strike corps were moved from Malthura, Ambala and Bhopal22 and deployed along the Thar Desert in Rajasthan in order to launch a massive attack against Pakistan. This took several weeks and gave Islamabad the time to also mobilize its forces. Subsequently tensions abated somewhat only to flare up again after a mujahideen attack in May 2002 at Kaluchak in Jammu. India, which had not withdrawn its strike corps from the border, seemed resolved, yet again, to move deep into Sind in line with the socalled Sundarji doctrine espoused by New Delhi from 1981 to 2004.23 This doctrine, named after Gen. Krishnaswamy Sundarrajan, was based on administering Pakistan a devastating blow in response to attacks by Pakistan-based jihadi groups.24 Islamabad responded by threatening to use its nuclear weapons and Lt. Gen. Javed Ashraf Qazi, the director general of the Inter-Services Intelligence, declared “If Pakistan is being destroyed through conventional means, we will destroy them by using the nuclear option.”25 Subsequently the Parakram Operation was terminated and the strike corps were withdrawn from the border. The opinion of Indian analysts was that this operation “ended as an ignominious retreat after having failed to secure even its minimum objectives.”26 Lt. Gen. Sood conceded that had India “crossed the international border and severed Punjab and Sind with its conventional forces…Pakistan would use nuclear weapons in that scenario.”27 After the Mumbai attacks in November 2008, the war hysteria among segments of Indian society became progressively ascendant and this triggered similar saber-rattling in Pakistan. However, the leadership in both countries were able to defuse, albeit gradually, the inflamed public outcry. The Congress-led government in India was convinced that a conventional military attack against Pakistan was not an option as that could have escalated the conflict to the nuclear level and this was also admitted by the former Chief of Army Staff, Gen Shankar Roychowdhry: “Pakistan’s nuclear weapons deterred India from attacking that country after the Mumbai strikes…(and) it was due to Pakistan’s possession of nuclear weapons that India stopped short of a military retaliation following the attack on Parliament in 2001.”28 80 CRITERION – Volume 5 No.2 Nuclear Politics and South Asia Analysts believe these three crises illustrate that the asymmetric escalation posture adopted by Islamabad since 1998 has been effective in deterring India from launching conventional military strikes against Pakistan. On 22 November 2008, President Asif Ali Zardari took the world and, more so Pakistan, by storm when, during a videoconference organized by The Hindustan Times, he told his Indian audience that Pakistan would “certainly not” be the first to use nuclear weapons. He then quoted his late wife, former Prime Minister Benazir Bhutto as saying that “there was a bit of Indian in every Pakistani and a bit of Pakistani in every Indian,” and added “I don’t feel threatened by India and India shouldn’t feel threatened by us.”29 The initial reaction of Indian strategic analysts was to cautiously welcome the president’s remarks. For instance, one such scholar, C. Uday Bhaskar, was remarkably accurate in his assessment that: “It is quite a breakthrough, but we have to wait till tomorrow to see how the General Headquarters in Rawalpindi responds to Mr. Zardari’s political initiative.”30 Nothing was to change as far as Pakistan’s nuclear posture was concerned and President Zardari’s comments generated the perception that he could not be taken seriously. However, on 25 December 2008 i.e., more than a month after the videoconference, Pakistan’s Defence Minister Choudhry Ahmad Mukhtar told reporters in Gujrat that the president had meant every word of what he had said and no one could make Zardari change his mind.31 Four days after President Zardari’s categorical pronouncements on the no first-use of nuclear weapons, the Mumbai attacks took place and the Congress leadership, as noted earlier, ruled out a conventional military attack against Pakistan for fear that a conflict could spiral to the nuclear level because of Pakistan’s asymmetric escalation posture. Since Mumbai, Pakistan-India relations have been marked by tensions. This was more than evident during the first post-Mumbai top level contact between the two countries when President Zardari and Prime Minister Manmohan Singh met at the sidelines of the Shanghai Cooperation Organization Summit in Yekaterinburg, Russia, on 16 June 2009. In his opening remarks, Manmohan Singh declared before the media that his mandate was confined only to discussing what Pakistan had done to stop terrorist attacks against India emanating from its soil.32Later the CRITERION – April/June 2010 81 S. Iftikhar Murshed Indian Prime Minister told reporters he had not realized that the media was still present in the room and that he had not meant to hurt President Zardari. Four weeks later, when the prime ministers of the two countries met at the fringes of the NAM Summit in Sharm El Sheikh on 17 July 2009 they agreed “that dialogue is the only way forward. Action on terrorism should not be linked to the Composite Dialogue process and these should not be bracketed.” 33This demonstrated statesmanship and courage on the part of Prime Minister Manmohan Singh but unfortunately it triggered a severe backlash from nationalists amid accusations of weak-kneed capitulation to Pakistan. The Indian prime minister was vehemently criticized in parliament and New Delhi reverted to its position that a resumption of dialogue between the two countries was contingent to Pakistan bringing the alleged perpetrators of the Mumbai attacks to justice. The 25 February 2010 talks in New Delhi between the foreign secretaries of the two countries achieved little as India insisted on a onepoint terrorism-related agenda while Pakistan wanted a comprehensive discussion of all outstanding issues. The two delegations therefore talked at rather than with each other. In the absence of a regular structured dialogue between the two countries and the consequent building of mutual trust and confidence, another terrorist incident in India could instigate a conventional strike against Pakistan. Such an eventuality is a possibility and cannot be brushed under the rug because of the dangers inherent in India’s current military doctrine. After the Operation Parakram fiasco of 2002, the Sundarji doctrine was discarded and in April 2004 the Indian army announced the Pakistanspecific Cold Start doctrine. This envisages quick mobilization, rapid strikes against Pakistan, and shallow incursions “50-80 kilometers deep that could be used in post-conflict negotiations to extract concessions from Islamabad”34 (as opposed to the Sundarji doctrine of cutting Pakistan in half). What has not been factored in the Cold Start concept is that, Islamabad would be left with no option, because of the conventional imbalance, other than to respond with a nuclear first-strike. 82 CRITERION – Volume 5 No.2 Nuclear Politics and South Asia Walter C. Ladwig III, a doctoral candidate at the Oxford University’s Merton College, writes: “The Cold Start doctrine requires reorganizing the Indian army’s offensive power away from the three strike corps of the Sundarji doctrine into eight smaller division-sized integrated battle groups that combine mechanized infantry, artillery and armor…The eight battle groups would be prepared to launch multiple strikes into Pakistan along different axes of advance.”35Since the announcement of the Cold Start doctrine in 2004, five exercises of varying sizes have been held to test the concept. These are: (i) Divya Astra (Divine Weapon) in March 2004; (ii) Vajra Shakti (Thunder Power) in May 2005; (iii) Desert Strike, the largest since the 1985 Brass Tacks exercise, was held six months after Vajra Shakti; (iv) Sanghe Shakti (Joint Power) in May 2006 was the largest Cold Start exercise. Ominously instead of the usual “red” and “blue” land, the two sides were posited as Pakistan and India, and; (v) Ashwamdeh (Horse Sacrifice referring to an ancient ritual of Hindu kings to assert their superiority over neighbouring kingdoms) in April-May 2007. 36 Cold Start has been described as a “limited war doctrine” and the absurdity of this claim becomes immediately obvious because of the certainty of a nuclear first strike by Pakistan should Indian forces cross the international border and occupy even a small part of its territory. Furthermore, the presumption that hostilities will end after Indian conventional forces have made shallow incursions into Pakistan is wishful thinking. In this event the conflict will not end and the areas occupied by Indian troops will not be available to New Delhi as a bargaining chip to negotiate with Islamabad. Military doctrines based on invasion and occupation of territory that make have been feasible before the nuclearization of South Asia are now anachronisms and no longer relevant. War, no matter how brief, is not an option available to either Pakistan or India because of the probability of such conflicts escalating to the nuclear level. The disastrous consequences of a Pakistan-India conflict seem to have been lost on hardliners in both countries and, in particular, the Indian military leadership. General Deepak Kapoor, who retired as the army chief on 31 March 2010, “identified five thrust areas for the CRITERION – April/June 2010 83 S. Iftikhar Murshed Indian military build-up: the ability to fight a two-front war against Pakistan and China; optimize capacity to counter asymmetric and subconventional threats; enhance capabilities for strategic reach and outof-area operations from the Persian Gulf to the Malacca Straits; acquire strategic (intercontinental) and space-based capabilities and ballistic missile defences, and ensure a technical edge over adversaries (that is, Pakistan and China)…But the greatest danger for Pakistan emanates from the concept of the so-called ‘Cold Start’ strategy, propounded by General Kapoor, to mobilize and strike fast (within 96 hours) at Pakistan ‘under a WMD overhang.’”37More than 70 percent of India’s military capabilities are deployed against Pakistan. Kapoor’s statement was discussed at a meeting in Islamabad on 13 January 2010 of the National Command Authority which “took serious note of recent Indian statements about its capability to conduct conventional military strikes under a nuclear umbrella” and these were described as being “oblivious to the dangerous implications of adventurism in a nuclearized context.”38 An invisible Berlin Wall of unresolved disputes, particularly Kashmir, obstructs the establishment of good-neighbourly and cooperative relations between Pakistan and India. The tensions that have marked the equation between the two countries in the last six decades have resulted in conventional as well as sub-conventional wars. After the nuclearization of South Asia in 1998, the continuation of aggressive postures by either country can have disastrous consequences. For this precise reason, there is an urgent need for “a strategic restraint regime involving the three interlocking elements of conflict resolution, nuclear and ballistic restraint and conventional balance.”39 The wisdom of keeping the recently resumed Pakistan-India talks on track is selfevident. References: 1 2 3 84 “The Centrality of the Bomb;” Gar Alperovitz and Kai Bird; Foreign Policy, Spring 1994. “Nuclear Testing is an Acceptable Risk for Arms Control;” Scientific American March 2009. http://www.ctbto.org/press-releases/2009/us-nuclear-security-administratordagostinovists-the-ctbto/ CRITERION – Volume 5 No.2 Nuclear Politics and South Asia 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 “CTBTO Preparatory Commission.” CTBTO Press Centre. Preparatory Commission for the Comprehensive Nuclear-Test-Ban Treaty Organization (2010). “Status of Signature and Ratification.” Accessed on 21 February 2010. Wikipedia, “Smiling Buddha.” Ibid. Quoted by Ambassador Savitri Kunadi at the Special Session of the Conference on Disarmament on 2 June 1998 for discussion the South Asian nuclear crisis. Statement by Ambassador Munir Akram at the Conference on Disarmament on 2 June 1998. “Pakistan’s Nuclear Weapons Deterred India,” Hindu, 10 March 2009. “Posturing for Peace? Pakistan’s Nuclear Postures and South Asian Stability,” Vipin Narang. This term was used to describe South Africa’s nuclear posture. See Terrence McNamee, “The Afrikaner Bomb: Nuclear Proliferation and Rollback in South Africa,” in Avner Cohen and McNamee, Why do States Want Nuclear Weapons? The Cases of Israel and South Africa. (Oslo: Norwegian Institue of Defence Studies, 2005, p.14) Avner Cohen, “The Last Nuclear Moment,” The New York Times, 3 October 2003; Hermann Eilts quoted by Janice G. Stein, “The Failure of Deterrence and Intelligence,” transcript of round table discussion, reprinted in Richar B. Parker, ed. The October War: A Retrospect, Gainsville: University of Florida Press, 2001, p.121, and Avner Cohen, “Nuclear Arms in Crisis under Secrecy: Israel and the Lessons of the 1967 and 1973 Wars,” in Peter R. Lavoy, Scott D. Sagan, and James J. Wirtz, eds. Planning the Unthinkable: How New Powers Will Use Nuclear, Biological and Chemical Weapons, Ithaca, N.Y.: Cornell University Press, 2000, p.118. Peter Liberman, “The Rise and Fall of the South African Bomb,” International Security, Vol. 26, No. 2, Fall 2001, pp.45-86. See, for example, David S. Yost, “France’s Deterrent Posture and Security in Europe.” Part I “Capabilities and Doctrine,” Adelphi Papers, No. 194, London, International Institute of Strategic Studies, 1984/1985. Sumit Ganguly and Devin T. Hagerty, Fearful Symmetry: India-Pakistan Crises in the Shadow of Nuclear Weapons, Seattle, University of Washington Press, 2005, p.123. Hendrick Smith, “A Bomb Ticks in Pakistan,” New York Times Magazine, 6 March 1988. Quoted in Paolo Cotta-Ramusino and Maurizio Martellini, “Nuclear Safety, Nuclear Stability, and Nuclear Strategy in Pakistan: A Concise Report of a visit by Landau Network Centro Volto,” 14 January 2002 http://www.pugwash.org/September 11/pakistan-nuclear. htm. V.K.Sood and Pravin Sawhney, Operation Parakram: An Unfinished War, Delhi, Sage, 2003, pp. 70-71. Kapur, “Ten Years of Instability in Nuclear South Asia,” p.79, and Kapur, “India and Pakistan’s Unstable Peace,” p.147. P.R. Chari, Pervaiz Iqbal Cheema, and Stephen Cohen, Four Crises and a Peace Process: American Engagement in South Asia; Washington D.C. Brookings Institution Press, 2007, 137. “A Cold Start for Hot Wars,” Walter C. Ladwig III, International Security, Vol. 32, No.33, Winter 2007/2008 pp. 158-190 Pakistani Air Comdr. Tariq M. Ashraf termed the conventional military strategy pursued by India from 1981 to 2004, the Sundarji doctrine (after Gen. Krishnaswamy Sundarrajan CRITERION – April/June 2010 85 S. Iftikhar Murshed 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 86 in “Doctrinal Reawakening of the Indian Armed Forces,” Military Review, Vol. 84 No. 6, November-December 2004, p.54. Gen Sundarrajan’s overhaul of the Indian Army’s conventional doctrine in the 1980s is mentioned in Amit Gupta, “Determining India’s Force Structure and Military Doctrine: I Want My MiG,” Asian Survey, Vol. 35 No. 5, May 1995, pp.449-450. Walter C. Ladwig III, “A Cold Start for Hot Wars.” “Pak Will Not Hesitate to Use Nuke against India,” Press Trust of India, 22 May 2002. Praveen Swami, “Beating the Retreat,” Frontline, Vol. 19 No. 22, 26 October 2002. Quoted in S. Paul Kapur, Dangerous Deterrent: Nuclear Weapons Proliferation and Conflict in South Asia, Stanford Calif. Stanford University Press, 2007, p.138. “Pakistan’s Nuclear Weapons Deterred India,” Hindu, 10 March 2009. Dawn, Karachi, 23 November 2008, report from New Delhi by Jawed Naqvi. Ibid. Zee TV, news file 26 December 2008. The Hindu, report by Nirupama Subramanian from Islamabad, 19 June 2009. Joint Statement on the conclusion of the meeting the meeting between the prime ministers of Pakistan and India at Sharm El Sheikh on 17 July 2009. Walter C. Ladwig III, “A Cold Start for Hot Wars (The Indian Army’s New Limited War Doctrine),” International Security, Vol. 32 No. 3, Winter 2007/08, pp.158-190. Ibid. Ibid. Muneer Akram, “Meeting India’s military challenge,” The News, Lahore, 28 January 2010. Quoted by Muneer Akarm in “Meeting India’s military challenge.” Shamshad Ahmad, “This melon is not yet ripe,” The News, Lahore, 27 January 2010. CRITERION – Volume 5 No.2 ASIA RISING? INEQUALITY AND PATTERNS OF GROWTH IN ASIA: TOWARDS A REGIONAL POLICY FRAMEWORK Taimur Khilji Abstract (Persistent inequality, in addition to being ethically wrong, is politically risky and is likely to arrest development gains. In a continent that is now largely democratic, issues of equity will shape the future of governments. Rising levels of inequality across Asia underscore the regional dimension of the problem. Although currently lacking, a coherent regional response to address this issue is desperately needed for Asian countries to make a smooth development transition. If the transition from developing to developed is to be achieved by the least developed countries in Asia while keeping inequality in check, then the transition from rural to urban needs to be managed carefully. The policy focus needs to shift from pursuing merely growth to developing a more inclusive form of growth. This requires that the distribution of, as well as the contribution to growth be critically questioned. Author). Context Rising levels of income inequality in Asia is becoming a central public policy problem. Over the past two decades the level of income inequality, as measured by the Gini index has steadily increased in a number of Asian economies (Milanovic 2009). Across countries, inequality has also increased as measured by differences in per capita Taimur Khilji income over time. The emerging, and now more developed economies of Asia have grown at a much faster rate than the fourteen Least Developed Countries (LDCs) in Asia. While the policy focus has been on sustaining economic growth, reducing inequality has largely been off the development agenda (Mishra 2009; Jolly 2009). Asia is often projected as a fast growing region with China and India leading the way (Winters and Yusuf 2007). There is good reason to see Asia through the lens of growing prosperity. The rapid economic successes of several East Asian countries, including South Korea, Singapore, Malaysia, Taiwan, and Thailand, were aptly deemed miracles (Stiglitz 1996). The region’s fastest growing economies have reaped the benefits of globalization and made commendable strides in reducing poverty (Habito 2009). Through the 1990s and into this century, East Asian economies have come together to form complex trade networks within the region based on intra-regional trade in electronic parts and components, where the production process has been fragmented according to dynamic comparative advantage to provide almost 30 percent of world’s merchandize exports (ADB 2006; WTO 2008). China and India, the two most populous countries in the world, continue to be the fastest growing within the region. From such a vantage point, Asia provides an exceptional example of economic achievement. In sharp contrast, Asia comprises the largest number of poor on a single continent; the number is close to a billion (World Bank 2009). In 2008, the number of hungry was 500 million (FAO 2008). The fourteen LDCs of Asia have an average per capita income of just over $500 (UNDP 2005). A number of countries, including Afghanistan, Pakistan, Philippines and Indonesia, are faced with conflict while others, such as Sri Lanka, Nepal and Timor Leste, are just beginning to recover from it. The recent rise of domestic food prices has disproportionately affected the poor, especially where the poor are net consumers (Ivanic and Martin 2008). In Pakistan, for example the number of food insecure people increased from 60 million to 77 million in 2007/2008. Most recently, the global financial crisis has not only affected those employed in the financial sector, but also those in the manufacturing 88 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia and services industries (Chhibber et al. 2009). Current social protection and social security measures that help buffer the vulnerable population during times of crises have proved inadequate as they do not extend to those working in the in the informal sector (Baulch et al. 2008). On the one hand, Asia has made unprecedented economic progress, but on the other it is still grappling with basic development issues. While growth has been consistent and strong, there are still large pockets of poverty. India, for example has the largest number of billionaires in Asia (Petras 2008), and is also home to over 450 million persons living below the $1.25 poverty line (World Bank 2008). Both extremes must be considered to capture the dynamic nature of income inequality. The gap between the more developed and less developed economies has widened as has the gap between prosperous and less prosperous regions within countries. Also, the top 20 percent of the income distribution has steadily increased its share in total income, while the bottom 20 percent’s share has decreased (ADB 2007). Furthermore, for most countries in the region the Gini index values are not only high but have increased over time. It is also worth noting that inequality is not just limited to income, but is also prevalent in access to essential social services such as education and health (ADB 2007). Current development literature has either taken up inequality within specific countries in Asia (such as China, India, and a number of East Asian economies) or explored it at a global level. Although a comprehensive study of inequality in Asia was recently published by the Asian Development Bank (2007), the report focuses mainly on trends and patterns and fails to develop a regional policy framework to address this critical issue. This paper attempts to provide a comprehensive overview of inequality in Asia, and also to develop a regional policy framework. This paper treats inequality separately from poverty. Inequality and poverty have historically been grouped together in development literature, which has led to the development of a common set of policies for countries. Addressing economic inequality demands a structural change in policy thinking and design—from devising ways to reduce absolute income CRITERION – April/June 2010 89 Taimur Khilji poverty to addressing relative income level. This represents a shift from viewing inequality as part and parcel of a static income problem to treating it as a dynamic and relative issue. Poverty, and by association inequality, has traditionally been viewed in absolute and isolationist terms, where the focus has been limited to reducing the number of poor. The broader concept of inequality, however, requires exploration of the difference in levels (of income, of provision to public goods, of opportunity, etc.) between individuals and groups in society. It requires looking at society at large and identifying the sources of disparate outcomes, which tend to be social, geographical, political and economic in nature. Is income inequality bad? Economists have historically cast the inequality debate in terms of efficiency vs. equity, where inequality is to be tolerated and indeed accepted as a trade-off to efficiency and economic growth. Posner (2007) has argued that “income inequality is not bad in general when it does not involve any reduction in the incomes of a substantial fraction of the population.” His rationale is quite simple: in the event that incomes of the bottom quintile increase by two percent while incomes of those in the top quintile increase by ten percent, everyone is better off even though inequality has increased. Posner (2007) believes that as long as incomes increase across all groups, it is not significant whether one group’s average income is increasing at a faster rate. In a similar vein, inequality is viewed as irrelevant by some, and what seems to matter is absolute increase in income and not relative increase (Krueger 2002; Feldstein 1999). However, there is agreement amongst economists that extreme inequality is bad, as Posner concedes that extreme inequality “can be politically destabilizing.” Psychological studies show that relative incomes do matter and that people care about where they stand in the social hierarchy (Graham and Felton 2005, Frank 2005). According to Milanovic, “national inequality [is] an issue—simply because people compare their own standard of living and make judgments whether these income differences [are] deserved or not.” Using time series data on views about income inequality and social policy preferences in the 1980s and 1990s, Kenworthy and Macall found that “Americans do tend to object to inequality and to believe 90 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia government should act to redress it.” Kuznets, who famously argued that income inequality is a common feature of a developing economy, also noted, “it is only through contact that recognition and tension are created, one could argue that the reduction of physical misery associated with low income and consumption levels[…]permit[s] an increase rather than a diminution of political tensions [because] the political misery of the poor, the tension created by the observation of the much greater wealth of other communities[…]may have only increased.” The difference in relative incomes has led development economists and political scientists to explore the link between income inequality and conflict (Cramer 2003; Piazza 2006; Stewart 2002). A study of 85 developing countries between 1973 and 1977 found inequality to be a significant predictor of political violence (Muller and Weede 1990). Income and wealth differentials based on ethnicity, religion, and other groupings have been the cause of social violence. In Sri Lanka, for example, income, wealth and employment differentials between the minority ethnic Tamils and the majority Sinhala population has been the sources of a 25-year-long conflict (Gunewardena 2009). In Malaysia, despite considerable improvements, the incomes of the Chinese Malays are almost twice as much as those of the Bumiputeras (Stewart 2005). In India, the stark difference in incomes based on caste and religion has led to communal violence (Kundu 2009). In the neoclassical economics framework, inequality is bad if it is perceived as detrimental to economic progress. Thus conceived, the value (bad or good) of inequality is largely determined by whether it impedes conditions for sustaining growth. While extreme inequality is considered bad for economic growth, there is no consensus as to what constitutes this extreme. This is partly due the elusive nature of inequality manifests: development experience of how income inequality plays out and its impact on economic progress has been mixed (Mishra 2009). A high degree of inequality in country X may not immediately result in adverse social and economic outcomes, whereas a relatively lower degree of inequality in country Y may quickly escalate conflict, which in turn would hamper growth. In Nepal, for example, despite increases in GDP, increases in income inequality over a relatively short period (5-7 years) became a rallying point for the Maoist opposition party, CRITERION – April/June 2010 91 Taimur Khilji and had in effect, helped fuel the insurgency (Murshed and Gates 2003; Khatiwada 2006). China, on the other hand has grown at an average of more than eight percent in the past two decades, despite a sharp rise in inequality over the same period. Lately, vast differences in average incomes between rural and urban areas, and across provinces in China, is becoming apparent, and there is growing realization that future growth will be compromised due to the widening income disparities (UNDP 2005). In consequence, increasing inequality in China is now viewed by the national government as a limiting factor to growth. Reducing inequality is thus seen instrumental (and as a means) to sustaining growth. In philosophical literature the concept of equality/inequality is couched in ethical terms. Issues of equity, including a more equal distribution of income, are associated with ideals such as justice and fairness (Aristotle 1912 (1282); Berlin 1956; Rawls 1971). Social scientists and policymakers often forge a link between income inequality and unjust social and political practices. Inequality therefore emerges as a manifestation of unjust practices and bias policies (Rawls 1971, 1977; Reddy and Pogge 2002; Singer 2002). As such, reducing inequality is seen as an end in itself and an inherently worthwhile pursuit; its value is not derived based on whether it drives or limits growth. In sum, extreme inequality is bad, both from an ethical and an economic point of view. Inequality in Asia has risen to unprecedented levels, posing a threat to economic growth. This presents a timely opportunity for ethical and economic thinking to come together to address the issue through public policy. 1. Research Questions What are the recent trends in growth, as measured by GDP and GDP per capita, for countries in Asia? What are the trends in inequality, both across and within countries, for the major economies? How have the different sectors of the economy grown over time? What is the status of regional inequality within countries? How can governments, multilateral organizations, and regional bodies work together to develop a 92 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia framework for reducing inequality at the regional level? What short and long-run policy options do governments have at their disposal to achieve a more equitable income distribution and a balanced growth trajectory? 2. Hypotheses Based on increasing levels of inequality across and within countries, this paper attempts to present the broad outlines of a regional policy framework for reducing inequality in Asia. Any serious attempt to reduce inequality will require decoupling policies and programmes geared at reducing the number of poor from those aimed at reducing inequality. While poverty has significantly reduced in Asia in terms of persons living below a-dollar-day, inequality remains not only persistent but has dramatically increased in the region, especially since the 1990s (ADB 2007; World Bank 2009). Given the secular rise in inequality, we must take a fresh look at inequality and consider it separately from poverty, both in theory and in practice. This paper will focus on the following hypotheses. Growth in Asia has been driven by the expansion of manufacturing and services, at the expense of the rural sector. As most of the poor reside in and are employed in this sector, they are excluded from the growth engines of the economy. Growth of the economy is increasingly shouldered by a limited segment of society, specifically those employed in the manufacturing and services. Reductions in inequality would require broadening the economic base to include a greater proportion of the working population as well as measures that make growth a more inclusive enterprise where, over time, low income earners account for a greater share in Gross Domestic Product (GDP). Direct investments that help build the potential of semi-and unskilled workers to be productive members of society are urgently needed. Finally, education provides the main means for building human capital and realizing productive potential. The conventional approach to reducing inequality through increased and targeted government spending and so-called ‘redistribution,’ although CRITERION – April/June 2010 93 Taimur Khilji useful in curbing poverty, is not a sustainable solution for decreasing inequality. While direct income transfers and social protection measures are necessary, especially in helping to lift persons out of poverty, they do not directly build the capacities and the productive assets of the poor. The fiscal expansionary policies (such as those instituted by a number of emerging economies in the aftermath of the recent global financial crisis) focused on providing employment, building infrastructure, and extending basic social services to the low income segment of the population, need to be complemented by deeper structural policy reform that develops human capital and works with the values of societies to reorient the current pattern of growth. Income inequality is a regional issue as it continues to affect the majority of countries in Asia. The paper will, therefore, develop the broad outlines of a regional policy framework to address inequality. 3. Methodology In the analysis section of the paper, the focus is on capturing the pattern of inequality both across and within countries. Given that rising inequality is not limited to a few economies in the region, but rather is prevalent in a several Asian economies, a regional lens is applied in capturing and addressing the rise in inequality. Both inequality across countries (as measured by respective country GDP per capitas over time) and within country inequality (as measured by respective Gini coefficient/Gini index values) are considered in the analysis. China and India, due to their population size, high growth rates, and increasing levels of inequality, are analyzed in greater depth than other countries. Due to lack of data gathering and standardization, the paper limits the country-level analyses to China, India, Philippines, Bangladesh and Vietnam. The growth-inequality link is explored through a sectoral analysis of growth. A disaggregation of growth by sector (i.e. services, manufacturing and agriculture) is used to identify sectors that drive growth. Employment data for select countries in the region, disaggregated by sector, is used to look at the distribution of the labor force across sectors. 94 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia Based on the above analyses, the policy section attempts to develop a regional policy framework to address inequality. 4. Analysis Inequality between Countries Data on Asia over the past three decades supports three broad trends. First, the majority of countries in Asia have reduced poverty in terms of persons living under the internationally defined dollar-a-day poverty threshold (Dollar 2004; World Bank 2008). East Asian countries, and more recently China, have been the major players in this respect (World Bank 1993; Dollar 2007). Second, the region as whole has achieved a high level of sustained economic growth. Asia has grown faster than any other region over the past 20 years (World Bank 2008). Finally, income disparities between countries in the region have widened and the distribution of income within countries has become more uneven (ADB 2007). While the first two trends are positive, the third—rising inequality across and within countries—poses a risk to future growth (Humphrey 2007). To better understand the potential causes of increasing inequality requires 1) a close look at the nature of the growth process that has accompanied the divergence in incomes and 2) an analysis of the structural shifts that have aided and abetted economic growth. Figure 1 reflects the GDP per capita values of countries in Asia and the Pacific since 1985 and into the 2000s. The comparison, based on PPP adjusted GDP per capita also helps to assess whether Asian economies are displaying what economists commonly refer to as σ convergence, the claim that the dispersion in incomes across countries should decrease over time. CRITERION – April/June 2010 95 Taimur Khilji Real GDP per capita time trend (All of Asia) 0 10000 20000 30000 40000 Figure 1: Growth Trajectory of Countries in Asia and Pacific, PPP US$, 1985-2000s 1985 1990 1995 2000 2005 year Time trend in chained PPP adjusted GDP per capita over the time period of 1985-2003 for all Asian countries: Afghanistan, Bangladesh, Bhutan, China, Fiji, Federated States of Micronesia, Hong Kong, Indonesia, India, Iran, Cambodia, Kiribati, ROK, Laos, Sri Lanka, Macao, Maldives, Mongolia, Malaysia, Nepal, Pakistan, Philippines, Palau, Papua New Guinea, North Korea, Singapore, Solomon Islands, Thailand, Tonga, Taiwan (China), Vietnam, Vanuatu, and Samoa. Each line in Figure 1 corresponds to a particular country’s Purchasing Power Parity (PPP) adjusted GDP per capita value in US dollars over a period of approximately 20 years. The dispersion in 1985 GDP per capita values across countries is much less than in the 2000s, indicating a divergence over time in GDP per capita across countries. While the average per capita income of a number of countries grew at a similar rate, several economies appear to have undergone a growth spurt, in effect branching off on higher growth paths. As a consequence, disparities in average per capita GDP have increased between faster growing 96 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia economies (including China, Hong Kong, Malaysia, Singapore, South Korea, Philippines, Taiwan, Thailand, and Vietnam) and relatively slower growing economies (including Bangladesh, Cambodia, Laos, Nepal and Pakistan). Countries such as Mongolia and North Korea have experienced little or no growth over the period. Although China had per capita incomes as low as those of North Korea and Mongolia in the mid1980s, spectacular growth in the 1990s and 2000s has propelled China away from these two poorer economies. Ultimately, these growth trends have led to clear winners and losers, reflected as increasing divergence in economic fortunes. Applying a similar exercise to other sub-regions, including East Asia, South East Asia, and South Asia, also shows a pattern of divergence in GDP per capita over time (Figures A1-A3 in Annex 1). The Pacific Island Countries (PICs) are an exception, as they do not conform to this general trend of divergence, but they do not show convergence either (Figure A4 in Annex 1). What is noteworthy is that none of the PICs showed strong or sustained growth, and therefore no particular economies took off while leaving others behind. Instead, these countries seemed to share similar economic experiences and therefore while they have not exhibited the divergence seen in other regions. Testing for β Convergence According to Barro and Sala-i-Martin (1991), β convergence occurs when initially poorer countries catch up to initially richer countries by growing at a higher rate. This exercise is not meant as a formal test of the theory behind β convergence, especially as it is unlikely that an economy like South Korea has the same steady state growth rates as an economy like Cambodia. It is instead employed merely to show that Asian economies have lacked a tendency to converge in terms of PPP adjusted per capita GDP. Figure 2 plots the average annual growth rate in PPP adjusted GDP per capita between 1985 and 2003 on the y axis and the log of initial level of PPP adjusted GDP per capita in 1985 on the x axis (following Barro and Sala-i-Martin 1991). The red line also shows the linear relationship CRITERION – April/June 2010 97 Taimur Khilji between the two variables from a linear regression of the log of the initial level GDP per capita (1985 value) on the growth rate of GDP per capita (over the period 1985-2003). For β convergence to occur, there should be a negative relationship between the two variables. Clearly, there is no evidence in favor of β convergence. If anything, Figure 2 shows that there is divergence. The coefficient from the linear regression is positive. The initially richer countries appear to grow faster than the initially poorer countries, resulting in a widening gap in GDP per capita over time between the two sets of economies. Along with the previous analysis of simple GDP per capita trajectories of economies, this result paints a picture of rising inequality across the Asian region. .2 Figure 2: Testing for β convergence in all of Asia for the time period of 1985-2003 .15 Testing for Beta Convergence (all of Asia) CHN .1 KOR TWN MDV .05 BTN 0 KHM IND THA MYS IDN LKA SGP MAC HKG BGD NPL LAO KIR PAK -.05 PRK MNG SLB PNG PHL TON WSM FSM FJI IRN VUT PLW AFG 6 7 8 9 10 log_rgdpch1985 grgdpch_1985_2003 Linear prediction There is a noticeable difference in the growth trajectory between high/middle income countries on the one hand and the low income and the least developed countries on the other. Figure 3 groups countries according to their respective income levels; by indexing the Gross 98 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia National Income (GNI), the difference in growth over time becomes apparent. While the GNI of currently high/middle economies in the region grew 7.5 times over 1980-2005, the GNI of LDCs grew at less than half this rate. The low income countries grew slightly faster than the LDCs, but markedly slower than high income countries. Figure 3: Rate of GNI growth, 1980-2005 (1980=100) Source: World Development Indicators 2007, The World Bank Assessing inequality across countries requires careful examination of specific policies that have led to a lag in economic growth for some and have sparked tremendous growth for others. However, as inequality between countries has been measured by average per capita income, it tells us very little about within country inequality. A relatively slower growing economy such as Mongolia may have a more even distribution of income across its population compared to its faster growing neighbor China where the income distribution is heavily skewed in favor of the CRITERION – April/June 2010 99 Taimur Khilji upper deciles. Should Mongolia grow faster to catch up with other countries at the expense of greater inequality within its borders? Or should it grow at a slower rate, but maintain a more constant level of equality? Such questions are commonly posed and highlight the apparent trade-off between equity and growth. It is assumed that there exists an inverse relationship between growth and equality (Stigltiz 1996). This paper will argue that it is indeed possible to have faster growth with equity leading to less disparate growth between and within countries. Inequality Within Countries Income inequality within countries has also increased. Figure 4 depicts the percentage change as well as the final value of the Gini index for a select group of countries. All countries excepting Thailand record increases in income inequality. While Thailand reduced its Gini index value by slightly over four percent over the past fifteen years, it still has relatively high levels of inequality with a final Gini index value of 42. Economies showing high rates of Gini index increase include both relatively developed economies (i.e. Hong Kong, South Korea, Philippines and Singapore) and developing economies (China, Nepal, and Sri Lanka). Contrary to Kuznet’s famous hypothesis (1955), increases in inequality are not limited to periods of development, but also occur after passing milestones of development. Kuznet’s predicted that inequality should increase during periods of development, and ought to taper off and begin to decrease once a country achieves a certain level of development. Japan, South Korea, Singapore, and Taiwan for instance, should thus show a declining trend in Gini index values. This, however, is not the case, as increasing inequality seems to affect both developed and developing economies (Figure 4). 100 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia Figure 4: Levels and Changes in Gini Index, 1990s-2000s (percentage Gini points) 17.5 % China (46.9) Sri Lanka (40.2) Nepal (47.3) China, urban (33.3) Hong Kong SAR (51.4) China, rural (36.3) Philippines (46.1) Singapore (48.1) Korea (33.1) Lao PDR (34.7) Bangladesh (31.8) Malaysia (49.2) Taiwan POC (33.9) New Zealand (33.7) Japan (31.4) Thailand (42.0) -6 -4 -2 0 2 4 6 8 10 12 Source: IMF 2006, data from World Bank PovcalNet, WIDER World Income Inequality Database 2008, OECD 2005 The Gini index has increased in several countries not covered in Figure 4; in India (from 32.2 in 1986 to 36.8 in 2004), in Indonesia (from 32.4 in 1984 to 36.3 in 2005), and in Vietnam (from 32.8 in 1993 to 37 in 2004). In the case of Pakistan it declined slightly (from 32.44 in 1985 to 30.6 in 2002). By and large, for most countries Asia, inequality has increased within countries, with relatively shaper increase in this divergence over the past decade and a half. What has driven this increase in inequality within countries? Finding an answer to this question requires a careful analysis of the nature of growth; specifically, a sectoral analysis will allow us to assess how the three main sectors of the economy—services, manufacturing/ industry, and agriculture have grown relative to each other. In addition to examining disparities across sectors, regional differences in income within countries will also be described. Certain geographical locations (urban and coastal regions for instance), have experienced greater economic activity and economic growth, while other locations (rural and inland regions) have achieved lower levels (ADB 2007). CRITERION – April/June 2010 101 Taimur Khilji Sectoral Analysis of Growth What is immediately noticeable and supported by sectoral growth data (Table 1) is that GDP growth has been largely driven by industry, manufacturing and the services sectors. The high growth rates that East Asia and South Asia have been able to sustain are derived from the growth of these sectors. While East Asia’s GDP has grown at an average of over eight percent per annum since 1990, its industry, manufacturing and services sectors have grown significantly faster. South Asia is similar in this respect. On the other hand, in both of the sub-regions the agricultural sector has grown at a much slower rate than the other three sectors and overall GDP growth. In effect, agricultural growth, by being markedly slow relative to other sectors, has tempered overall GDP growth.1 There is evidence suggesting that sectoral composition of growth impacts inequality independently of the rate of growth (Ravallion and Chen 2007). The slow growth of agriculture has contributed to increasing inequality in spite of the high average growth rate for economies as a whole. Table 1: Sectoral Growth for Countries in Asia 1990-2005 Countries GDP Agriculture 1990- 2000- 19902000 05 2000 E a s t A s i a 8.5 8.4 3.4 and Pacific Cambodia 7.1 8.9 3.9 China 10.6 9.6 4.1 Indonesia 4.2 4.7 2 K o r e a , 5.8 4.6 1.6 Rep Lao PDR 6.5 6.2 4.8 Malaysia 7 4.8 0.3 Mongolia 2.7 5.8 3.7 P h i l i p - 3.3 4.7 1.7 pines Thailand 4.2 5.4 1 Vietnam 7.9 7.5 4.3 South Asia 5.6 6.5 3.1 102 Industry Manufacturing Services 2000- 1990- 2000- 1990- 2000- 1990- 200005 2000 05 2000 05 2000 05 3.7 11 9.4 10.8 9.8 8.1 8.7 5.7 3.9 3.4 -0.1 14.3 13.7 5.2 6 14.2 10.9 3.9 6.3 18.6 12.7 6.7 7.3 14.1 11.1 5.2 7 7.1 10.2 4 5.6 8.2 10 6.2 3.7 2.8 3.4 0.1 3.9 11.1 8.6 2.3 3.5 12.1 4.6 7.5 3.3 11.7 9.5 9.7 3 10.4 5.2 5.5 4.3 6.6 7.3 0.2 4 6.7 5.3 7.8 6 1.9 3.8 2.4 5.7 11.9 6.1 6.9 10.2 7.2 6.9 11.2 6.6 7.2 11.5 7 3.7 7.5 7.1 4.5 6.9 7.8 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia Bangladesh India Iran Nepal Pakistan Sri Lanka 4.8 5.4 2.9 2.5 7.3 7.3 7.2 6.7 4.5 5.6 6 3.1 4.9 3.8 5.3 7 5.8 2.8 4.8 4.2 3 3.2 2.4 4.4 1.8 2.5 5.5 3.2 2.3 0.7 6.3 2.6 7.2 4.1 6.9 7.5 7 1.1 6.5 3.3 7 5.1 8.9 3.8 8.1 6.9 10.2 -0.6 9.1 2.9 8 3.8 6.4 4.4 5.7 8.5 5.1 2.8 5.4 5.8 Source: World Development Indicators, World Bank 2008 While manufacturing, industry and services are currently driving Asian growth, this was not historically the case. Over time, the value added as a share of GDP for industry, manufacturing and services has steadily increased for both East Asia and South Asia, while the relative contribution of agriculture towards GDP has declined (Table 2). The decline in agriculture’s value added has been significant: for East Asia its share in GDP shrunk three times, from 34.6 percent in 1970 to just 11.9 percent of GDP in 2008. In South Asia’s case the decline was more than 20 percentage points, from 41.5 percent to 18.6 percent over the same period. Although the shift from being predominately agrarian to manufacturing and services oriented is in line with typical development trajectory, but has taken place over a relatively short period of time in Asia.2 The abrupt structural change, with a focus on the secondary and tertiary sectors has paid dividend in way of unprecedented growth. However, a significant proportion of the population has neither contributed to, nor has benefited from the increased growth. Table 2: Value-added by Sector, 2008 (percentage of GDP) Agriculture East Asia and 1970 the Pacific 34.6 South Asia 41.5 1990 2008 25.0 11.9 29.1 18.6 Industry/Manufacturing 1970 1980 2008 1970 36.0 21.0 39.8 26.1 47.5 28.6 Services 1980 2008 29.3 35.2 40.6 37.1 44.7 53.4 Source: World Development Indicators, World Bank 2009 Each sector’s contribution to GDP over time underscores that many Asian economies are no longer agriculture-based. While the agriculture sector has grown at the slowest rate and has contributed the least towards CRITERION – April/June 2010 103 Taimur Khilji GDP amongst the main sectors, it employs the majority of the labor force (Table 3). In South Asia, agriculture still accounts for almost half of total employment, whereas in East Asia over 40 percent of the employed are in agriculture. The emerging dynamic is clear: agriculture has come to contribute least to the GDP, employs considerably more persons than industry and services, and, thus, also pays relatively lower wages on average. On the other hand, industry and services contribute significantly more to the GDP than agriculture, employ significantly fewer persons, and consequently pay relatively higher wages on average. This dynamic over time has led to a widening disparity in average incomes between those employed in agriculture and those employed in more productive sectors (ADB 2007). Table 3: Employment by Sector, 2008 (percentage) Agriculture 41.1 Industry/Manufacturing East Asia and the Pacific South Asia 47.7 Source: ILO Kilm 6th Edition 2009 Services 21.7 36.4 22.2 30.1 While there has been high and sustained economic growth, it has not led to significant increases in employment. There has been a general lack of absorption of labor by the more productive sectors, which is reflected by the low employment elasticity of growth (Pasha and Palanivel 2004).3This phenomenon of high economic growth in conjunction with low employment growth has been termed “jobless growth.”4 In fact, the level of unemployment has increased over the past ten years in South Asia and Southeast Asia and the Pacific (Figure 4).5 In East Asia, the unemployment rate showed a slight decline from around 4.6 percent to 4.2 percent between 1998 and 2008 despite record levels of economic growth during the period. 104 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia Figure 5: Unemployment Rate 1998, 2008 (percentage) Source: ILO Kilm statistical database 2009 The Geography of Growth Increased industrial dynamism, over a sustained period, has not been without consequence. Growth has not only been labor saving, but has also had a geographical bias. Certain regions with better access to international trade through historical ties to world trade, better infrastructure, reduced transport costs, better management by the state, or regions specifically targeted for foreign investment by government policy, have benefited more from economic industrialization and liberalization than other regions. For example, the coastal regions in China are now many times more well off than the inland regions, the central area of Thailand including Bangkok is much wealthier than the north eastern and southern states of the country, and states like Maharashtra and Karnataka in India are much more economically and technically advanced than states like Bihar and Orissa. CRITERION – April/June 2010 105 Taimur Khilji The experiences of several high population countries in Asia show income differentials between geographical regions to be large and on the rise. China and India, due to their enormous populations, account for the majority of the poor in Asia; in both countries the issue of rising regional inequality has come to the fore, and has been well documented.6 Even though the Chinese central government has recognized the urgent need to reduce these regional disparities through large government campaigns such as the Great Western Development project (Goodman 2004), regional inequality persists. The Human Development Index, a well-being index composed of GDP, life expectancy and gross enrollment ratio, showed urban areas to be much better off than rural areas (UNDP 2005). Urban areas recorded an HDI of 0.816 (comparable to Turkey, Russia, and Brazil), while rural areas recorded an HDI of 0.685 (comparable to Namibia, Tajikistan, and Bhutan). Figure 6 shows the different rates of GDP per capita increase over time across five provinces of China. As a member of the burgeoning coastal regions, Shanghai is noticeably ahead of the other provinces for which data is available. Another coastal province, Zhejiang, is also growing faster than other provinces. Shandong province, a remnant of the heavily industrial state owned enterprise dominated region of the pre-reform era, has seen less growth and started at a lower level than the two coastal regions. Nonetheless, it is still ahead of the inland province of Hunan and the western province of Xinjiang. As suggested by Figure 6, the inland and western provinces have yet to really share the massive wealth gains of the other regions. Factors that have contributed to such large gaps between provinces have been preferential policies that have shifted productive resources towards manufacturing, creating Special Economic Zones to encourage foreign investment, restrictions on labor and capital mobility, and urban biased policies (Yang 2002; Ravillion and Chen 2007). In addition, regional differences have come to exist in other aspects of society including access to health, education, and government fiscal expenditure (UNDP China Human Development Report 2005). These disparities are believed to have reinforced income inequality across regions. 106 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia GDP per capita Time Trend for Selected Provinces 0 10000 20000 30000 40000 Figure 6: GDP per capita (in Chinese Yaun) growth in Chinese Provinces 1994 1996 1998 year SHANGHAI gdp_per_capita XINJIANG gdp_per_capita SHANDONG gdp_per_capita 2000 2002 HUNAN gdp_per_capita ZHEJIANG gdp_per_capita Like China’s, India’s urban areas have experienced a disproportionately large share of the country’s growth, leading to rising income inequality. In 1986, India had a Gini index of 32.2. By 2004, the value of the index had increased fourteen percent to 36.8. The rural Gini has hovered around 29 and the urban Gini has fluctuated around 36 in recent years. This lack of drastic movement of the rural and urban Gini cannot account for the increase in the overall Gini. It seems that the increase in the overall index is due to the increasing disparity between the rural and urban areas. India’s regional inequalities have been driven mostly by inequalities in the agriculture and service sectors (Das and Barua 1996). For example, not all states benefited equally from the sharp productivity gains of the Green Revolution. Also, only a few states have significantly changed the structure of their economy and driven India’s rise to global leadership in the information technology industry. Consequently, one observes trends such as the one depicted in Figure 7 (below), where states such as Karnataka and Maharashtra lead other states such as Bihar CRITERION – April/June 2010 107 Taimur Khilji and UP. However, urban centers such as Delhi are even wealthier than the relatively wealthy states of Karnataka and Maharashtra. Inequality across states has been further exacerbated by reductions in fiscal spending, skewed sectoral and geographical distribution of domestic and foreign direct investment (FDI), and the impact of trade liberalization on employment intensive sectors (Pal and Ghosh 2007). GDP per capita Time Trend for Selected States 0 20000 40000 60000 80000 Figure 7: GDP per capita (in Rupee) across select Indian States 2001-2006 2001 2002 2003 year KARNATAKA gdp_per_capita BIHAR gdp_per_capita DELHI gdp_per_capita 2004 2005 2006 UTTARPRADESH gdp_per_capita MAHARASHTRA gdp_per_capita In Philippines the National Capital Region (NCR) that encompasses Manila accounts for more than one third of the national economy and has a GDP per capita three times the national average. In contrast, the region of Mindanao has GDP per capita that was less than one quarter of the national average. Since 2000, the incidence of poverty has been lowest in NCR with eleven percent of the population below the poverty line, whereas the poverty incidence has been consistently over 50 percent in the Mindanao and Visayas regions (ADB 2005). The Philippines have relatively more complete and consistent data for the time period of 2001-2006. As shown in Figure 8, the metropolitan 108 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia Manila area has much higher per capita GDP compared to the other regions. It is the region that seems to have experienced the most growth in GDP over the early half of the 2000s. GDP per capita Time Trend for Selected States 0 10000 20000 30000 40000 Figure 8: GDP per capita (in Philippine Peso) across regions in Philippines, 2001-20067 2001 2002 2003 2004 2005 2006 year METROMANILA gdp_per_capita CORDILLERA gdp_per_capita MUSLIMMINDANAO gdp_per_capita ZAMBOANGAPENINSULA gdp_per_capita BICOL gdp_per_capita Bangladesh is no exception to the general trend of regional disparity across Asian economies. Dhaka exceeds the other regions of Bangladesh significantly in terms of GDP per capita, as shown in Figure 9. Chittagong and Khulna form the mid-level regions in terms of wealth and Barisal, Rajshahi, and Sylhet trail far behind. CRITERION – April/June 2010 109 Taimur Khilji 25000 Figure 9: GDP per capita (in Taka) across regions in Bangladesh, 1996-20008 10000 15000 20000 GDP per capita Time Trend for the Regions of Bangladesh 1996 1997 1998 year BARISAL gdp_per_capita DHAKA gdp_per_capita RAJSHAHI gdp_per_capita 1999 2000 CHITTAGONG gdp_per_capita KHULNA gdp_per_capita SYLHET gdp_per_capita Given the scarcity of regional data, average agricultural wages across districts has been used as a proxy for income (Mahmoud et al. 2008). While average wages had increased across all districts, inequality also increased over the period 1993-2004 as wages in some districts (Chittagong) grew much faster than in other regions (Rangpur). Maholoud et al. (2008) cite regional distribution of public spending skewed in favor of richer districts as one of the main sources perpetuating inequality over time. With the Doi Moi economic reforms in Vietnam, particular regions of the country have been heavily promoted at the expense of others. While there was a general decline in inequality within rural and urban areas, the national rise in inequality is attributed to a rise in inequality between rural and urban areas (Glewwe et al. 2000; VASS 2007). Notable reforms took place with regard to land and agriculture (dismantling of agricultural communes), private sector (promoting business), public sector (closing down of state-owned enterprises), 110 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia trade (liberalization through reductions in import tariffs and duties), and investment (promoting domestic and foreign investment) (McCaig et al. 2009). With real per capita expenditures growing at 133, 117, and 111 percent between 1993 and 2004 for South East, North East, and Red River Delta respectively, inequality between regions grew (McCraig et al. 2009). Since the South East and Red River Delta, containing Ho Chi Minh City and Hanoi, were already the two richest regions in 1993, their faster growth has widened the relative gap between the richest and poorest regions. These fast growing regions (around Ho Chi Minh City, Hanoi, and Haiphong) have led growth and have left the mountainous areas of the North, the North-central, and parts of the central highlands mired in relative poverty (Glewwe et al. 2000; McCaig et al. 2009). Factors contributing to inequality are education disparities, ethnicity, uneven access to infrastructure, and low employment status of head of household (Van de Walle and Gunewardena 2001, Molini and Wan 2008). Importantly, education has been singled out as a key determinant, as it was consistently found to be higher amongst urban households and positively correlated with higher income (Nguyen et al. 2006). 5. Developing a Regional Policy Framework for Addressing Inequality Inequality emerges as a regional issue, prevalent in the majority of countries in Asia. It also coincides with the economic rise of Asia and has manifested itself most visibly in the faster growing economies of the region. Thus far, a regional level response has not been articulated to deal with rising inequality. Regional institutions such as ASEAN and SAARC have focused on regional integration and cooperation, culminating in trade and investment agreements (ASEAN 2007, SAARC 2009). However, the charters of these multi-national organizations, like that of the United Nations, are grounded in peace building and not necessarily in economic development. While the United Nations, the World Bank, and the Asian Development Bank have continued to highlight social and development concerns, none have developed a specific regional framework that squarely addresses rising inequality. 9 CRITERION – April/June 2010 111 Taimur Khilji Regional bodies and global multi-lateral institutions must work together to develop a framework similar to the Millennium Development Goals and the Climate Change agenda that addresses inequality. The approach should: 1) set specific country and regional level targets and metrics that can be monitored; 2) identify dominant values that promote equality; 3) share and build on experiences of successful interventions; and 4) develop action oriented policies and programmes that attempt to achieve growth with equity. The Millennium Development Goals that emerged out of the Millennium Declaration,10 where 189 member states pledged to eradicate poverty by 2015, was an initial step in creating the conditions necessary for global and regional cooperation on social issues. Although the goals in full are unlikely to be achieved by 2015, they are quantitative and time bound, with a roadmap/development framework that can be adapted to suit the specific context of a country.11 Similarly, regional level agreement on reducing inequality, conceptualized in the form quantitative, measurable and time-bound targets, would be a necessary first step in realizing the regional dimension of inequality. The Gini index or the Gini coefficent is the commonly used measure for income inequality. At the national level, consumption/expenditure data are often used as proxies to measure wellbeing and inequality between regions and provinces (Slesnick 1994; Gradín et al. 1998; Anwar 2006). Ideally, household surveys such as the Living Standard Measurement Surveys12 used by the World Bank should be used to maintain consistency and accuracy of data across countries and within countries. Eventually, by building their statistical capacity, each country should be able to report disaggregated levels of inequality—between and within states/provinces, between rural and urban areas, and across the male and female population. 112 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia Often, income inequality is accompanied by other types of inequalities, for instance, a low income person is likely to suffer from inequalities in basic rights, education, health, social standing, etc. (Stewart and Langer 2007). Tracking the wider associations of inequality such as access to health and sanitation, education, transportation (infrastructure), and social capital should be included as part of a broad set of indicators. This exercise should help identify the complementarities income inequality may have with other forms of inequality. For a sustainable solution to the issue of inequality, we need to carefully analyze the prevalent value system of a society, and see whether it encourages a sense of equality between individuals. We need to identify and work with values that lead to greater equality. While promoting values such as individual achievement, the merits of cooperation must also be emphasized. Introducing changes to the national education curriculum can be a starting point, where collective effort is rewarded. On the playing field, fairness, team effort, talent and skill, should take precedence over winning. In the workplace, social responsibility and sharing of profits should underpin business strategy. In places of worship, similarities between religions should also be highlighted, encouraging acceptance and tolerance of other religions. By working within the value system of a society, behavioral shifts can alter our standard notions of success such that individual success can come to be more closely associated with public benefit rather than personal gain (Barr and Gilg 2006; Cárdenas 2009). This may seem like a utopian vision. However, current public policy on climate change and the environment is already making headway in creating conditions for a more equal society. The emphasis on environmental sustainability is encouraging societies to rethink individual consumption patterns (Jorgenson 2003; Mont and Plepysa 2007). It is questioning the notion of mass production of food items, and advocating a more local, community driven approach to farming (Rosset 2000; Hole et al. 2004). It is instilling the value of sharing through carpooling, public transportation and the use of renewable sources of energy (Kockelman 2008). It is checking wasteful behavior by making recycling an everyday activity. Finally, it is promoting CRITERION – April/June 2010 113 Taimur Khilji cooperation at the highest political level by bringing world leaders together to act collectively to set norms and standards.13 Many of these behavioral shifts and their likely impact on what constituents the Zeitgeist go unnoticed. However, our inability to measure such change does not render it inconsequential. As cooperation, sharing, a collective sense of responsibility, and prudence become dominant values, gross differences in income are less likely to be tolerated. Such a normative stance can be developed and articulated at the regional level through partnerships between governments, international NGOs, and multilateral and regional bodies. The main lesson emerging from the success of the Asian miracle economies was that they achieved “rapid and equitable growth.”14 The early development experiences (1960s -1980s) of Indonesia, Malaysia, Thailand, Taiwan, Singapore and Hong Kong were marked by little or no positive change in the Gini coefficient while sustaining high levels of per capita growth (World Bank 1993). According to the World Bank report, the key ingredients that led to balanced growth were 1) sound macro-economic policy, 2) gradual liberalization and export-led growth, and 3) and investments in human and physical capital. Moreover, despite the diminishing role of agriculture, the sector grew at a formidable rate with high levels of productivity. The main engines of growth were “private domestic investment and rapidly growing human capital,” and the education policies instituted by these countries “focused on primary and secondary schools [generating] rapid increases in labor force skills.” 15 Rural incomes, especially of those employed in agriculture, were not taxed excessively. Another commonly cited aspect of success was government intervention, which “was conducive to technology transfer.”16 With regard to maintaining equality, or rather preventing inequality from worsening, South Korea, Japan and Taiwan carried out land reforms which led to greater productivity and savings for farmers, thereby increasing domestic demand. Redistribution of income contributed to overall political stability, and relatively stable housing prices eased the burden on the poor (Stiglitz 1996). Finally, Stiglitz believes that Thailand’s program to provide credit to the rural sector “seemed not only to have promoted 114 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia equality but also to have yielded reasonably high economic returns.”17 In recent years, Thailand also dramatically reduced its military budget, from 20.6 percent of GDP in 1985 to 8.6 percent of GDP in 2001; at the same time, the Thai government increased spending on human development (Numnak 2006). Although useful, the experiences of growth with equity may not be easily replicable. What may have worked in Taiwan in the 1970s may not work in India in the 2010s. As such, the sharing of experiences stands rather as a testament, contrary to popular belief, that growth and equity can complement one another. Conventional theory, including Kuznet’s hypothesis, has long supported the idea that inequality is necessary for growth and that the initial growth trajectory produces inequality. The next and final step toward a regional stance on addressing inequality is for countries in the region to develop their own policies and programmes to achieve more equitable and inclusive development. The analysis section identified two common and interrelated concerns. First, the sectoral analysis of growth revealed that the agricultural sector lagged behind industry and manufacturing. Second, there is a growing rural-urban development gap, one manifestation of which has been a growing disparity in incomes between those employed in a rural setting and those working in the more lucrative and productive urban sectors. The two concerns are interconnected as agriculture is the mainstay of the rural economy. According to the World Bank (2008) poverty is a rural phenomenon: “75 percent of the developing world’s poor live in rural areas.”18 Moreover, “between 80 to 90 percent of the poor are rural in all the major countries of the [Asia and the Pacific].”19 The working poor of Asia are very much part of the agricultural economy, one that has been in steady decline over the past two to three decades (IFAD 2002). Faced with these alarming facts, a regional strategy to make growth more equitable would require a focus on rural areas in general, and on the agricultural sector in particular. As such, policies should consider the following: Growth should take place in sectors in which the poor work: the majority of the poor in most Asian countries are engaged in rural CRITERION – April/June 2010 115 Taimur Khilji economic activities and need support in raising living standards through public investments in rural infrastructure and services. In particular, the focus must be on raising productivity of small farms and on promoting off-farm employment opportunities in rural areas (Pasha and Palanivel 2003). Growth should occur in backward and marginalized areas where the poor live: poverty rates are generally much higher in backward areas, sometimes over twice the national average (World Bank 2008). Therefore, the development strategy has to focus on uplift of backward areas and removal of the basic obstacles to growth. Growth should derive from the factors of production that the poor possess and enhance their capabilities: labor demand created during the process of growth should be concentrated on creating employment opportunities for unskilled and semiskilled workers. Sectors characterized by high levels of laborintensity should be encouraged by preferential allocations of credit and tax treatment. In addition, the ability of the poor to avail the emerging opportunities should be enhanced by greater investment in human development, especially in basic education and health services. Growth must keep prices of goods and services consumed by the poor, like food, relatively low: high rates of growth may fail to achieve significant poverty alleviation if simultaneously the rate of inflation, especially in food prices, also rises (Palanivel 2008). Not only is there a need for supporting domestic food production but also for improving marketing arrangements of such items (Timmer 1991). Thus, an inclusive and equitable growth strategy in the shorter to medium term horizon has to focus on sectors, areas, factors of production and items of consumption, which play a critical role in increasing the productivity and incomes of the rural population. As the growth of economies is clearly driven by manufacturing, 116 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia industry and services, skill development will play a key role in raising incomes, productivity and the capabilities of the working population at large in the longer run education (Te Velde and Xenogiani 2007; Kirkegaard 2007). Currently, the proportion of the population driving Asian growth is marginal compared to the region’s total population; over 50 percent of the labor force is employed in agriculture suggesting a narrow base responsible for growth. Investment targeted towards high growth sectors reveals a skill-bias in favor of high-skilled workers, leaving out the majority of the population in Asia, especially the rural unskilled workers (Goldberg and Pavcnik 2007). Different levels of education have been known to manifest themselves as differences in skill level among workers, and as a consequence account for the disparity in wages (Juhn, Murphy & Pierce 1993). Reaping the benefits of globalization, and simultaneously enlarging the economic base so that a greater proportion of the population contributes to long-term growth, requires a focus on education and skills development. Currently, most governments, particularly in South Asia, spend less than three percent of their GDP on education, and in some cases it is as low as two percent of GDP. Clearly, an increase in public expenditure on education is desirable, especially targeted towards the poor. 6. Conclusion Persistent inequality, in addition to being ethically wrong, is politically risky and is likely to arrest development gains. In a continent that is now largely democratic, issues of equity will shape the future of governments. Rising levels of inequality across Asia underscore the regional dimension of the problem. Although currently lacking, a coherent regional response to address this issue is desperately needed for Asian countries to make a smooth development transition. If the transition from developing to developed is to be achieved by the least developed countries in Asia while keeping inequality in check, then the transition from rural to urban needs to be managed carefully. The policy focus needs to shift from pursuing merely growth to developing a more inclusive form of growth. This requires that the distribution of, as well as the contribution to growth be critically questioned. CRITERION – April/June 2010 117 Taimur Khilji While the role of agriculture is likely to diminish in the future, it still employs a significant proportion of the working population. By building the potential and capabilities of individuals, especially of those employed in agriculture, the economic base can be broadened. This would allow for a greater proportion of society to increase their respective contribution toward growth and development. Under such an outcome, the benefits of growth are also likely to be shared more widely. Finally, if disparities are to persist in the short term, then we should ultimately be driven by the Rawlsian maxim, where inequalities are permitted only if they are to the greatest benefit of the least-advantaged members of society. (The author is solely responsible for the views expressed in this paper, and the opinions expressed in this paper do not necessarily reflect the views of the United Nations Development Programme. The author is also indebted to Dr. Hafiz Pasha for his guidence). References: Anwar, T. (2006). Changes in Inequality of Consumption and Opportunities in Pakistan during 2001-02 and 2004-05, Centre for Research on Poverty Reduction and Income Distribution, Planning Commission, Islamabad, Pakistan Aristotle, Politics.(1912). Translated From The Greek Of Aristotle By William Ellis, A.M. J M Dent & Sons Ltd. Available at http://www.gutenberg.org/etext/6762 ASEAN. (2007). 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Inequality and Patterns of Growth in Asia the West”: National, Provincial- level and Local Perspectives. Ed. David S.G. Goodman. Cambridge: Cambridge University Press Goldberg, P.K., and Pavcnik, N. (2007). Distributional Effects of Globalization in Developing Countries, Journal of Economic Literature, 45 (1), pp. 39-82 Gradín, C., Cantó, O., and del Río, C. (1998). Inequality, Poverty and Mobility, Choosing Income or Consumption as Welfare Indicators, Instituto de Estudios Fiscales Graham, C. and A. Felton (2005). “Does inequality matter to individual welfare? An exploration based on household surveys in Latin America”, Center on Economic and Social Dynamics Working paper series No. 38. Brookings Institutions, Washington D.C. USA. Gunewardena, D. (2009). Inequality in Sri Lanka: Key Trends and Policy Response, UNDP Regional Centre for Asia Pacific, Colombo, Sri Lanka Habito, C. F.(2009). Patterns of Inclusive Growth in Developing Asia: Insights from an Enhanced Growth-Poverty Elasticity Analysis, Asian Development Bank Institute Hole D.G., Perkins A.J., Wilson J.D., Alexander I.H., Grice P.V., Evans A.D. (2005). Does organic farming benefit biodiversity? Biological Conservation, 122 (1), pp. 113-130. Humphrey, J. (2006). Prospects and Challenges for Growth and Poverty Reduction in Asia, Development Policy Review, 24 (1), pp. s29-49(50) IFAD. (2002). Assessment of Rural Poverty: Asia and the Pacific International Fund for Agricultural Development IMF.(2008). World Economic Outlook Database, April 2008 -----------. (2007). World Economic Outlook 2007 Ivanic, M. and Martin, W.(2008). Implications of Higher Global Food Prices for Poverty in Low-Income Countries, World Bank Policy Research Working Paper Series, paper 4554 Available at SSRN: http://ssrn.com/abstract=1149097 Jolly, R. (2009). Inequality in Sri Lanka, UNDP Regional Centre for Asia CRITERION – April/June 2010 121 Taimur Khilji Pacific, Colombo, Sri Lanka Jorgenson, A.K. (2003). Consumption and Environmental Degradation: A Cross-National Analysis of the Ecological Footprint, Caliber, Vol. 50, No. 3, Pages 374–394. Juhn, C, Murphy, P. and Pierce, B. (1993). Wage Inequality and the Rise in Returns to Skill, Journal of Political Economy, 1993, 101 (3) Kanbur, R., and Xiaobo, Z. (2001). “Fifty Years Of Regional Inequality In China: A Journey Through Revolution, Reform And Openness,” Working Papers 7236, Cornell University, Department of Applied Economics and Management Kenworthy, L., and McCall, L. (2009). Americans’ Social Policy Preferences in the Era of Rising Inequality.” Perspectives on Politics, Vol. 7 Issue 3, pp 459, 2009 Khatiwada, L. (2006). Inequality and Conflict: A Case of Western Hill of Nepal, Paper presented at the annual meeting of the Rural Sociological Society, Seelbach Hilton Hotel, Louisville, Kentucky, Aug 10, 2006 Kijima, Y. (2006). Why did wage inequality increase? Evidence from urban India 1983–99, Journal of Development Economics, 81(1), pp 97-117. Kirkegaard, J. F. (2007). Offshoring, Outsourcing, and Production Relocation Labor-Market Effects in the OECD Countries and Developing Asia. IIE Working Paper No. 07-02. Available at SSRN: http://ssrn.com/abstract=988067 Kockelman, K., Thompson, M, and Whitehead, C. (2008). , Travel Choices and their Relative Contributions to Climate Change: What Behavioral Shift will buy us, and opportunities for Household-level Caps, Submitted for Presentation at the 87th Annual Meeting of the Transportation Research Board available at http://www.ce.utexas.edu/prof/kockelman/public_html/ TRB08ClimateChange.pdf Köhler, G., Cali, C., and Stirbu, M.(2009). Social Protection in South Asia: A Review, UNICEF ROSA, Kathmandu, Nepal 122 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia Knight, J. (2007). Reform, Growth and Inequality in China, Paper presented at the conference on ‘Experiences and Challenges in Measuring National Income and Wealth in Transition Economies’, to be held in Beijing on September 1921, 2007. Available at http://www.iariw.org/papers/2007/knight.pdf Krueger, A. O.(2002). Supporting globalization, Remarks at the 2002 Eisenhower National Security Conference on “National Security for the 21st Century: Anticipating Challenges, Seizing Opportunities, Building Capabilities”, September 26, 2002. Available at http://www.imf.org/external/ np/speeches/2002/092602a.html Kundu, A. and Sarangi N. (2009). Inclusive Growth and Economic Inequality in India under Globalization: Causes, Consequences and Policy Responses, UNDP Regional Centre for Asia Pacific, Colombo, Sri Lanka Kuznets, S. (1965). Economic Growth and Structure: Selected Essays, New Delhi: Oxford & IBH Publishing Company -----------. (1963). Quantitative Aspects of the Economic Growth of Nations: VIII. Distribution of Income by Size, Economic Development and Cultural Change, 11 (1) -----------. (1955). Economic growth and income inequality, American Economic Review, Vol. 45 (1). pp 1-28. Mahmoud, C.S., Wadood, S.N., and Ahmed, K.S.(2008). Addressing Regional Inequality Issues in Bangladesh Public Expenditure. Centre for Policy Dialogue Occasional Paper Series 71, Dhaka, Bangladesh McCaig, B., Benjamin, D., and Brandt, L.(2009). The Evolution of Income Inequality in Vietnam, 1993-2006, Working Paper, Australia National University Milanovic, B. (2009). Global Inequality Recalculated: The Effect of New 2005 PPP Estimates on Global Inequality, World Bank Policy Research Working Paper 5061 -----------. (2006). Global Income Inequality: What it is and Why it Matters, World Bank Policy Research Working Paper 3865 CRITERION – April/June 2010 123 Taimur Khilji -----------. (2005). Worlds Apart: Measuring International and Global Inequality, Princeton University Press. Molini, V., Wan, G. (2008). Discovering sources of inequality in transition economies: a case study of rural Vietnam, Economic Change and Restructuring, Springer, 41(1), pages 75-96 Mont O., Plepys A. (2008). Sustainable consumption progress: should we be proud or alarmed? Journal of Cleaner Production, 16 (4), pp. 531-537. Mishra, S. (2009). Economic Inequality in Indonesia: Trends, Causes and Policy Response, UNDP Regional Centre for Asia Pacific, Colombo, Sri Lanka Muller, E.N. and Weede, E. (1990). Cross-National Variation in Political Violence, Journal of Conflict Resolution, 349 (4), pp 624-651. Murshed, S. and Gates, S. (2003). Spatial-horizontal Inequality and The Maoist Insurgency in Nepal, Department for International Development, London, UK Numnak, G.(2006).Development and Structural Diversification of the Thai Economy: The Cause of Labour Immigration, presented at IZA/World Bank Conference, 2006. Available at http://www.iza.org/conference_files/ worldb2006/numnak_g2728.pdf Palanivel, T. (2008). Rising Food and Fuel Prices in Asia and the Pacific: Causes, Impacts and Policy Responses, UNDP Regional Centre for Asia Pacific, Colombo, Sri Lanka Pasha, H. A., & Palanivel, T. (2003). Pro-poor growth and policies: The Asian Experience. The Pakistan Development Review, 42 (4). Petras, J. (2008). Global ruling class: Billionaires and how they “make it”, Journal of Contemporary Asia, Vol 38, (2), pp 319 – 329. Piazza, J. (2006). Rooted in Poverty?: Terrorism, Poor Economic Development, and Social Cleavages, Terrorism and Political Violence, 18:pp. 159–177. Pogge, T. W. and Reddy, S. (2002). Unknown: The extent, distribution, and 124 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia trend of global income poverty, version July 26. Available at http://www. columbia.edu/~sr793/povpop.pdf Ravallion, M. and Chen, S. (2008). The Developing World Is Poorer Than We Thought, But No Less Successful in the Fight against Poverty, World Bank Policy Research Working Paper 4703. -----------. (2007). China’s (uneven) progress against poverty, Journal of Development Economics , vol. 82(1), pages 1-42. Ravallion, M. (2005). “A Poverty-Inequality Trade-Off?” World Bank Policy Research Working Paper 3579. -----------. (2003). “The Debate on Globalization, Poverty, and Inequality: Why Measurement Matters,” World Bank Policy Research Working Paper No. 3038 -----------. (1988). Inpres and Inequality: A Distributional Perspective on the Centre’s Regional Disbursements. Bulletin of Indonesian Economic Studies 24, no. 3: 53–71. Rawls, J. (1971). A Theory of Justice, Belknap Rosset, P. (2000). The Multiple Functions and Benefits of Small Farm Agriculture in the Context of Global Trade Negotiations, Development, 43 (2), pp. 77-82(6). SAARC. (2009). Areas of Cooperation. Retrieved from http://www.saarc-sec. org/main.php?t=2 Sachs, J., and Warner, A. (1996). Trends in inequality in China, China Economic Review, 7 (1) Sala-i-Martin, Xavier. (2002). “The World Distribution of Income (estimated from individual country distributions).” National Bureau of Economic Research Working Paper 8933. Sen, Amartya. (1973). On Economic Inequality, New York, Norton. Sharma, S. (2009). Income Inequality in Nepal, UNDP Regional Centre for CRITERION – April/June 2010 125 Taimur Khilji Asia Pacific, Colombo, Sri Lanka Singer, P. (2002). One World: The Ethics of Globalization. New Haven, USA: Yale University Press. Slesnick, D.T. (1994). Consumption, Needs and Inequality, International Economic Review, 35(3), pp 677-703 Solow, R. A. (1956). Contribution to the Theory of Economic Growth, The Quarterly, Journal of Economics, 70 (1). Stewart, F. and Langer, A. (2007). Religion Horizontal inequalities: Explaining persistence and change QEH Working Paper No. 39. Oxford: Queen Elizabeth House, University of Oxford. Stewart, F. (2009). Religion Versus Ethnicity as a Source of Mobilisation: Are There Differences? QEH Working Paper No. 70. Oxford: Queen Elizabeth House, University of Oxford. -----------. (2005). Policies towards Horizontal Inequalities in Post-Conflict Reconstruction, QEH Working Paper No. 7. Oxford: Queen Elizabeth House, University of Oxford. -----------. (2002). Horizontal Inequalities: A Neglected Dimension of Development. QEH Working Paper No. 1. Oxford: Queen Elizabeth House, University of Oxford. Stiglitz, J. (1996). Some Lessons from the East Asian Miracle, The World Bank Research Observer, vol. 11, no. 2 (August 1996), pp. 168 Te Velde, D., Xenogiani, T.(2007). Foreign Direct Investment and International Skill Inequality, Oxford Development Studies Timmer, P. (1991). Agricultural employment and poverty alleviation in Asia in Agriculture and the State: Growth, Employment, and Poverty in Developing Countries, Cornell University Press United Nations Development Programme. (2005). China Human Development Report, UNDP, China 126 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia UNDP-UNESCAP. (2005). Voices of the LDCs of Asia and the Pacific, UNDPUNESCAP, Bangkok, Thailand UNESCAP.(2008). Statistical Yearbook for Asia and the Pacific, Bangkok, Thailand Van de Walle, D. and Gunewardena, D.(2001). “Sources of Ethnic Inequality in Viet Nam” Journal of Development Economics, vol 65 (2001): 177-207. Wei, Y.D (1999). Regional inequality in China, Progress in Human Geography, 23 (1), pp 49-59. Winters, A. and Yusuf, S. (2007). Dancing with Giants: China, India and the Global Economy, The World Bank. Washington DC, USA World Bank.(2009). World Development Report 2009, Washington DC, USA -----------. (2008). World Development Indicators 2008, Washington DC, USA -----------. (2008). World Development Report 2008, Washington DC, USA -----------. (2007). World Development Report 2008, Washington DC, USA -----------. (2006). World Development Report 2006, Washington DC, USA -----------. (1993). The East Asian Miracle: Economic Growth and Public Policy, World Bank Policy Research Report, Oxford University Press. World Trade Organization. (2008). International Trade Statistics 2008, Geneva, Switzerland Yang, D.T. (2002). What has caused regional inequality in China? China Economic Review, 13 (4), pp 331-334. CRITERION – April/June 2010 127 Taimur Khilji Annex I: Figures of Real per capita GDP Time Trends for Sub-regions in Asia Real GDP per capita time trend (East Asia) 0 5000 10000 15000 20000 Figure A1: Time trend in chained PPP adjusted GDP per capita over the time period of 1985-2003 for East Asian countries: China, South Korea, North Korea, and Mongolia 1985 1990 1995 year CHN rgdpch MNG rgdpch 128 2000 KOR rgdpch PRK rgdpch CRITERION – Volume 5 No.2 2005 Asia Rising? Inequality and Patterns of Growth in Asia Real GDP per capita time trend (Southeast Asia) 0 10000 20000 30000 Figure A2: Time trend in chained PPP adjusted GDP per capita over the time period of 1985-2003 for Southeast Asian countries: Indonesia, Vietnam, Malaysia, Cambodia, Philippines, Singapore, Thailand, and Laos. 1985 1990 1995 year IDN rgdpch VNM rgdpch MYS rgdpch KHM rgdpch 2000 2005 PHL rgdpch THA rgdpch LAO rgdpch SGP rgdpch Figure A3: Time trend in chained PPP adjusted GDP per capita over the time period of 1985-2003 for South Asian countries: Pakistan, Bangladesh, Nepal, Maldives, India, Sri Lanka, and Bhutan. CRITERION – April/June 2010 129 Real GDP per capita time trend (South Asia) 0 1000 2000 3000 4000 5000 Taimur Khilji 1985 1990 1995 year PAK rgdpch BGD rgdpch NPL rgdpch MDV rgdpch 2000 2005 IND rgdpch LKA rgdpch BTN rgdpch 2000 4000 6000 8000 10000 Figure A4: Time trend in chained PPP adjusted GDP per capita over the time period of 1985-2003 for Oceania: Papua New Guinea, Kiribati, Tonga, Fiji, Federated States of Micronesia, Solomon Islands, Vanuatu, Palau, and Samoa. 1985 Real GDP per capita time trend (Oceania) 1990 1995 year PNG rgdpch KIR rgdpch PLW rgdpch SLB rgdpch VUT rgdpch 130 2000 FJI rgdpch FSM rgdpch WSM rgdpch TON rgdpch CRITERION – Volume 5 No.2 2005 Asia Rising? Inequality and Patterns of Growth in Asia Annex II: Notes on Data The data used for the majority of the following analysis is the Gini coefficient/index database compiled by Branko Milanovic. It can be downloaded from http://econ.worldbank.org/projects/inequality and also used his book, Worlds Apart: Measuring International and Global Inequality, Princeton: Princeton University Press, 2005. This database is the most encompassing database of world Gini coefficients/index values currently available. Created in 2004, it compiles and adapts three existing datasets: the Deininger-Squire dataset that covers the years 1990-1996, the UNU Wider dataset that covers the period 1950-1998, and the World Income Distribution dataset that covers the period 1985-2000. For the Milanovic database, Milanovic only included Gini coefficients of the previous datasets that were compiled from nationally representative household-based surveys.20 And in an attempt to supplement the Milanovic database, the 2008/2009 CIA World Factbook and IMF Statistics were also used. However, note that these later figures may not have undergone the same rigorous filtering process as the Milanovic figures. Additionally, the Gini coefficients for the rural and urban economies of particular countries were extracted from the UNU-WIDER WIID2 database. Since Milanovic only extracted Gini coefficients from nationally representative surveys, he left out many useful Gini coefficients that were computed from either rural or urban representative household-based or individual-based surveys. Consequently, returning to the original WIID2 database allowed rural and urban trends to be analyzed. However, because the WIID2 database compiled data from a variety of sources, care was taken to only pick the Gini coefficients from the most credible sources. There was also a deliberate attempt to sacrifice number of data points in favor of consistency. For example, China offered numerous sources for rural and urban data. Nonetheless, only one source, Chotikapanich et al 2006, was used because it contained the relatively highest quality data and a relatively broad coverage of years. Using Gini coefficients from different sources sometimes significantly changes the patterns. For Countries Data limitations led to an analysis on a handful of countries in Asia: CRITERION – April/June 2010 131 Taimur Khilji China, India, Bangladesh, Philippines, and Vietnam. Even then, the data quality varies by country. For China, the 1997, 1998, 1999, 2000, and 2003 Statistical Yearbooks published by the National Bureau of Statistics of China were used to calculate the province level GDP per capita figures. All figures are in Yuan and are in current market prices. Since province level GDP per capita figures are not reported by the Statistical Yearbooks, they are crudely calculated by dividing the province level GDP figures by the province level populations. For India, the data are taken from the Directorate of Economics & Statistics of respective State Governments, the Central Statistical Organisation, and the 2001 Census of India. The state level GDP per capita figures are denominated in current price Rupees. Also, the data for 2006 is based off a population projection conducted by the Census. Since state level GDP per capita figures are not available, they are calculated crudely by dividing the state level GDP figures by the state level populations. The Indonesian data are from Badan Pusat Statistik (BPS-Statistics Indonesia). The GDP per capita figures are denominated in Rupiah and are in constant 2000 prices. Again, since province level GDP per capita figures are not reported, they are calculated crudely by dividing the province level GDP figures by the province level populations. The data for the Philippines was extracted from the National Statistical Coordination Board and are denominated in pesos at 1985 constant prices. Here, region level GDP per capita figures are reported and are therefore used in the analysis. The data for Vietnam are collected from the General Statistics Office, Viet Nam Economy in the Years of Reform, Statistical Publishing House, Hanoi and are data from 2002. The Vietnam figures are actually the gross regional product per capita as a ratio of the national average. Other sources have also been used and have been cited accordingly. Finally, the Bangladesh data are from the Bangladesh Bureau of Statistics and some are extracted from the March 2008 “A Strategy for Poverty Reduction in the lagging Regions of Bangladesh,” published by the General Economics 132 CRITERION – Volume 5 No.2 Asia Rising? Inequality and Patterns of Growth in Asia Division. The data here are GDP per capita at current market prices and are denominated in Taka. References: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 The extent to which growth has been affected depends on the agricultural sector’s relative weight in country/regional GDP. In the case of much of Western Europe and United States the process of development was spread over a much longer period of time. Employment elasticity of growth is the incremental increase in employment due to a one percent increase in GDP. Pasha and Palanivel (2004) calculated the employment elasticities of growth over time and across sectors for several Asian economies. Their results show that manufacturing and services sectors, especially since 1990, have shown a declining employment elasticity of growth. UNDP-ILO Press Release, ROAP/07/04, February 20, 2007, p1. Available at http://www.undprcc.lk/Publications/MDGI/ILO_UNDP_Asian_econ_report_ PR_format.pdf The 2008 unemployment level reflect pre-crisis (global financial crisis) levels. For China see Wei 1999, Sachs at el 1996, Kanbur and Xiaobo 2001, Yang 2002, UNDP 2005). For India see Datt and Ravallion 1990, Das and Barua 1996, Deaton and Dreze 2002, Chamarbagwala 2006) GDP per capita time trends for the Metropolitan Manila area, Cordillera, Muslim Mindanao, the Zamboanga Peninsula, and Bicol. Note that only two data points have been taken (1996 and 2000). More recent figures were not available. Currently the advocacy focus of these three organizations has been at the regional level, with an emphasis on climate change (in the longer term) and the social and economic impact of the financial crisis (in the short-term). Available at http://www.un.org/millennium/declaration/ares552e.html Additional goals have been added by some countries: Mongolia added Human Rights and Democratic Governance as its 9th goal, whereas Afghanistan added Human Security as its 9th goal. In addition, countries such as Thailand that have fared well have set new—MDG plus--targets for themselves. For more information on Living Standard Measurement Surveys is available at http://www.worldbank.org/lsms/ The Kyoto Protocol and the Global Climate Conference held in Copenhagen are examples. The World Bank .(1993). The East Asian Miracle: Economic Growth and Public Policy, World Bank Policy Research Report, Oxford University Press, pp v The World Bank. (1993). The East Asian Miracle: Economic Growth and Public CRITERION – April/June 2010 133 Taimur Khilji Policy, World Bank Policy Research Report, Oxford University Press. pp 5. 16 Stiglitz, J. (1996) Some Lessons from the East Asian Miracle, The World Bank Research Observer, vol. 11, no. 2, pp. 151. 17 Ibid., pp. 168. 18 World Bank. (2008). World Development Report 2008. pp 45. 19 IFAD. (2003). Assessment of Rural Poverty: Asia and the Pacific, pp 3. 20 Note: For some countries, the Gini coefficient was only available for a very limited set of years. Consequently, a detailed analysis of the trend in income inequality in those countries cannot be conducted. In addition, some countries were left out of the following analysis all together due to lack of data. 134 CRITERION – Volume 5 No.2 Essays PAKISTAN’S ECONOMY ON THE RAZOR’S EDGE: REFORM IMPERATIVES Zubair Iqbal* Overview The deterioration of the Pakistan economy over the past 2-3 years can be attributed mainly to the continuation of inappropriate macroeconomic policies since, at least, 2005/06. The sudden and debilitating weakening of the international economic and financial environment added to the turmoil. While the major economic challenges - sharply declining growth, rising unemployment, increasing poverty, high inflation, and widening external imbalances - are easy to grasp and policy options to address them are also not difficult to articulate, there is a singular lack of will to implement the needed reforms in a timely fashion. The strategy pursued in the first six years of the decade, which focused on accumulating external reserves as protection against external terms of trade shocks without strengthening domestic policies, predictably proved to be ineffective. In addition, political inaptitude, lack of national consensus on economic objectives, and a continued misreading of the depth of the challenges faced by the economy - in the face of a worsening security situation and global financial meltdown have compounded the crisis. Although, recently there has been some recognition of the underlying problems, the authorities are apparently either unable or unwilling to take the bull by the horns. These have deepened the vicious cycle in which inaction and a declining ability to act have militated against corrective action. * Zubair Iqbal is an Adjunct Scholar at the Middle East Institute, Washington DC. Essay Pakistan’s economy is presently on the razor’s edge. If remedial measures are not taken expeditiously, it could permanently derail from its potential growth path estimated at about 6-7 percent per annum. The obvious fallout would be incremental unemployment pressures which, in turn, will spur political instability. The recent tentative steps to move away from the precipice need to be built upon so that the vicious circle can be converted into a virtuous cycle. The Dye is Cast It has become commonplace to attribute the current economic malaise to the “wrong” growth strategy or strategies pursued during the past 60 years. Such reiterations are not only meaningless but also unhelpful for understanding the current policy imperatives. Undoubtedly, there has been a weakening of institutions but that cannot be proffered as an excuse for inappropriate policies. Pakistan’s economy has typically gone through “booms and busts” as policies have not been changed expeditiously to respond to changing conditions. In most cases, booms have been associated with increases in foreign funding followed by busts when such inflows ceased or debt service payments rose. Foreign inflows have had an unintended consequence in as much as they have reduced domestic effort to mobilize savings and effect liberal policy reforms, thus leaving the country without adequate resources when the crutch provided by such funding was withdrawn.1 The current crisis is a link in the same chain - albeit, more serious because of the deeper international economic downturn. It should be recognized that, during the 1990s, some reforms were undertaken in response to the shrinking access to global savings (both from official and private sources). Although many of these reforms were haphazard, the economy experienced some important structural changes. Steps had been taken to conform prices of publically supplied goods and services - including the exchange and interest rates - to market conditions as well as reforms in the financial sector, and privatization. Steps had also been taken to get budget outlays under control by reducing some subsidies and improve tax administration. 138 CRITERION – Volume 5 No.2 Essay During 2002/03-2006/07, as the external resource pressures eased (through debt relief, increased foreign aid, and resumption of external private capital inflows), these reforms were instrumental in allowing the expansionary policies of the previous government to generate a temporary surge in growth. At the same time, the improved external environment and domestic political stability facilitated effective private sector investment decisions which contributed to an improvement in factor productivity.2 However, higher spending in the face of limited production capacity and primary focus on credit-financed consumption and imports, led to the re-emergence of macroeconomic imbalances. The external current account deficit started to widen as export growth slowed and dependence on uncertain external private capital inflows grew. Concurrently, private sector investment stagnated while public sector investment was not adequately focused on addressing the looming shortages of infrastructure (particularly, energy and water) and improving competitiveness. Fiscal deficits started to widen and - combined with an overly expansionary monetary policy - inflation started to increase briskly, which also appears to have worsened income distribution and reversed progress in reducing poverty. Given the focus on consumption and import-led growth, the economy had not been deepened enough through investment in productive capacity to withstand emerging external and internal shocks. By the end of 2006, there was firm evidence that continuation of the ongoing policies would be counterproductive. The external current account and the fiscal deficits had reached 5 percent of GDP, respectively. The authorities initially misread the emerging imbalances which were masked by the continued brisk growth and no timely corrective action was taken. And then the crisis of judicial independence erupted, which with elections looming, drastically reduced room for politically unpopular steps, including mobilization of revenues and rationalization of expenditures. The private sector lobbied for increased subsidies and maintaining expansionary policies characterized by increasingly negative real interest rates and an appreciating rupee. As export competitiveness declined, official subsidies to the manufacturing sector were increased CRITERION – April/June 2010 139 Essay rather than adjusting the exchange rate, further worsening the fiscal position without benefiting exports. In the event, national savings fell further and the corresponding external current account deficit rose, putting pressure on foreign exchange reserves and the exchange rate. There was little cushion left to “finance” the way out of the looming crisis. The deteriorating economic situation was dramatically worsened by the sharp increase in world oil and food prices in 2007/08, the worldwide financial crisis, and the consequent global economic contraction. The authorities’ decision not to immediately pass on the higher prices and recourse to printing money to pay for the burgeoning government expenditure - a politically expedient ploy - meant a further reduction in external reserves and escalation of domestic inflation. Exports slumped while the import bill rose sharply, and capital inflows fell on account of global economic slowdown and political uncertainty in the country.3 It should be emphasized that the impending economic crisis would have happened even if oil prices had not gone up; it simply brought the underlying un-sustainability of policies to the fore sooner and more dramatically. The deepening domestic and external imbalances would have sapped external reserves and, under unchanged policies, would have forced an intensification of controls, capital outflow, and drop in growth. Not surprisingly, growth fell in 2007/08 to about 4 percent from an average of over 6 percent during the previous four years. The budget deficit shot up to over 7 percent of GDP as revenues declined by more than one percent of GDP and expenditures rose by about 3 percent of GDP. With a sharp increase in money supply as the deficit was financed mainly by borrowing from the State Bank of Pakistan, inflation more than doubled to about 22 percent (end-of-year basis). Reflecting, in part, the dissavings at the government level (rising fiscal deficit), overall national savings fell to an all-time low of less than 14 percent of GDP. Although investment fell slightly, the saving-investment gap rose sharply to an unsustainable level of over 8 percent of GDP with a corresponding increase in external current account deficit. In the process, 140 CRITERION – Volume 5 No.2 Essay gross foreign exchange reserves fell to the equivalent of less than three months of imports - a dangerous level, indeed, for Pakistan’s economy in the deteriorating global environment. Problems were compounded by a total disregard of economic crisis by the new government in the initial period; valuable time, during which the crisis could have been staved off, was lost.4On the other hand, Pakistan’s competitors took early corrective policy steps and established a solid basis to bounce back once the current global downturn is reversed. The volatile political and security situation continued to undermine economic confidence and militated against early corrective policy response. Moment of Truth, 2008 By mid-2008, Pakistan was confronted with a moment of truth. Its approach to the so-called “friends” for emergency assistance had failed. It had to seek IMF resources to support its economic program for staving off further deterioration, stabilize the economic situation, and to lay the foundations for sustainable recovery. The belated promises of assistance by “friends” under the Tokyo Agreement remain to be honored. Although the program underlying the arrangement with the IMF is quite mild given Pakistan’s economic situation, its implementation so far has been mixed. The original program, supported by an arrangement with the IMF for $7.6 billion for about two years - subsequently augmented to $11.3 billion - called for reducing the fiscal deficit to 4.2 percent in 2008/09 and 3.3 percent in 2009/10 while allowing for increased spending on the social safety net. It envisaged important reforms in tax policy administration, and cutbacks in subsidies, while monetary policy was to be tightened to fight inflation and protect external reserves. Increased donor support, a reduction in financial account pressures, and continuing IMF assistance were expected to allow a significant increase in international reserves to a more comfortable level. With security pressures, unexplainable delays in the implementation of fiscal reforms - especially for raising tax/GDP ratio - and delays in CRITERION – April/June 2010 141 Essay disbursements by the so-called “friends” under the Tokyo Agreement, the fiscal deficit target had to be revised upwards: even the most recent targeted deficit of 5.2 percent for 2009/10 may not be met. This is not to detract from a callous failure of the so-called “friends” to meet their obligations which had been considered critical for meeting pressing social and development needs, avoiding excessive recourse to domestic financing, and thus meeting the fiscal targets. The present economic position is somber and highly vulnerable to internal and external shocks. Reflecting energy shortages, inefficiencies in large scale manufacturing, poor export performance, and credit restraints, the real GDP growth is estimated to have fallen to about 2 percent in 2008/09 and is not projected to exceed 3 percent during 2009/10. While national savings have shown little increase during the two years, 2008/09-2009/10, investment has fallen, underpinning the low growth of GDP. Only a part of the fiscal deterioration can be explained by unbudgeted outlays on internally displaced persons or security. Revenue collection has declined further to an all-time low of 14.3 percent as tax evasion has continued to grow. With monetary expansion contained, inflation has fallen but remains unacceptably high at 13 percent with serious implications for the standard of living, poverty, and income distribution. Core inflation remains unacceptably high at about 16 percent. The external position of the economy improved somewhat on account of a sharp drop in imports (by 10 percent) on account of lower oil prices and continued increase in workers’ remittances. Exports, on the other hand, declined by 6 percent in 2008/09 and are expected to fall further by over 2 percent in 2009/10 as traditional exports, such as textiles, plummeted reflecting declining competitiveness and a stagnant world economy. Moreover, because of political uncertainty, lack of market confidence in the sustainability of official adjustment policies, and security concerns, net capital inflows fell by about $3 billion (by 40 percent) in 2008/09. While gross external reserves have been built up through IMF financing, net reserves remain low. The exchange rate weakened further in line with the market conditions as the State Bank of Pakistan showed “flexibility” about its level. Furthermore, the financial 142 CRITERION – Volume 5 No.2 Essay sector showed signs of increasing stress as the share of nonperforming loans increased under the weakening economic conditions. The near and medium-term outlook, under the current policy stance, remains difficult and vulnerable to a number of external shocks such as oil price increases, potential political instability, and the regional security situation. In addition, vulnerabilities remain strong on account of the continued revenue shortfalls, an increase in nonperforming loans, energy subsidies, and large dependence on commodity imports. Weaknesses in the infrastructural capacity will also continue to constrain growth. Even if energy shortages were to be adequately addressed and the fiscal position is less onerous than in the recent past, growth will recover only modestly in the medium term because of the negative effects of global economic stagnation, little pick up in domestic investment, and continued insecurity. Also, the external position will see only a gradual improvement. Moreover, even if adequate restraint is maintained against bank financing of the budget, global oil prices do not increase significantly, electricity tariff rates are increased gradually, and monetary policy is not eased prematurely, inflation may not see a significant decline until after 2009/10 (Table 1). Table1. Pakistan—Basic Economic Indicators, 2004/05-2011/2012 2004/05- 2007 2006/07 /08 2008 2009 2010 2011 /09 /10e /11p /2012p GDP growth (%) 7.1 4.1 2.0 3.0 4.0 4.5 Inflation (%) 7.8 12.0 20.8 11.0 7.0 6.0 Budget deficit/GDP(%) -3.6 -7.3 -5.0 -5.2 -4.1 -3.2 Tax revenue/GDP (%) 10.5 10.6 10.2 10.7 11.4 12.2 Savings/GDP (%) 17.9 13.5 14.1 14.2 16.3 17.0 Ext. current account deficit/GDP (%) -3.4 -8.4 -5.6 -4.2 -4.6 -4.5 Government debt/GDP 57.0 58.4 (%) Sources; Government of Pakistan, and IMF. 55.6 56.4 55.8 54.7 CRITERION – April/June 2010 143 Essay Any meaningful improvement over this somber medium term outlook will, critically depend upon the maintenance of a tighter fiscal position, strengthened competitiveness, and improved governance so as to reduce the vulnerabilities listed above. In the short run, generation of employment opportunities is critical for the success of the medium term strategy. In this context, elimination of energy shortages will provide the much needed spur to the use of installed capacity, facilitating growth, improving employment opportunities, and creating room for higher revenues, thus easing the path of adjustment over the medium term. Fiscal reform will, above all, call for an acceleration of tax reform effort so as to generate a significant increase in revenue in 2009/10 and sustained into the medium term. At present, given the political uncertainties, it is unclear whether the authorities will be able/willing to implement difficult, but necessary, reforms in the tax system, reductions in direct and indirect subsidies, and the needed control on provincial outlays. It also presupposes that any shortfalls in donor disbursements under the Tokyo Agreement will not be made up through domestic financing. In this context, it is unclear as to whether any further reduction in interest rates would be opportune. In the event of an expansionary fiscal stance supported by an easy monetary policy, the authorities will have to accept a further weakening of the rupee, with attendant domestic inflation. Medium-term growth will remain hostage to low domestic savings and investment. Reaching the growth rate of 6 percent a year level average rate of growth registered during 2002/03-2007/08 - even by 2014/15 would, given the outlook for external financing, call for domestic savings to increase to at least 21 percent of GDP in 2014/15 from 14 percent presently. Even if the above is realized, given the expected population growth, income per capita would increase only marginally over the next 5 years and poverty would remain high. Given the head start that other countries in the region and other competitors have over Pakistan, the scenario above will put Pakistan behind them by about a decade! The political ramifications of such a development are not hard to grasp. Hence the need to do more than that envisaged above. 144 CRITERION – Volume 5 No.2 Essay Reform or Low Growth Trap Pakistan is presently encountering a dual problem: (1) macroeconomic imbalances and inflationary pressures arising out of a dysfunctional fiscal system supported by a compliant monetary policy stance; and (2) low domestic savings which, given the present outlook for capital inflows, are inadequate to sustain a level of investment needed to achieve a higher growth rate over the long run that will be necessary to reduce poverty without inflation and with debt sustainability. It is worth noting that average savings in countries in the same income category as Pakistan are significantly higher than in Pakistan; for example, India’s savings rate is about 30 percent as compared with 14 percent in Pakistan in 2008/09! Over the past year, the apparent shortage of energy has also added to the gravity of the two fundamental problems identified above. These are inter-related problems and have to be dealt with under a comprehensive reform program. The primary factors underlying these challenges are: low level of revenue mobilization and out of control expenditures, policies discouraging improvement in productivity in both agriculture and manufacturing; and large implicit and explicit subsidies (estimated as equal to about 4 percent of GDP). These subsidies, which are needed to sustain certain inefficient private manufacturing activities, increase budget deficit, reduce savings, allow the maintenance of prices such as exchange and interest rates out of line with market conditions, and promote speculative activities. Moreover, inappropriate sectorspecific policies have continued to misallocate resources. Finally, the deteriorating official capacity to formulate and implement effective policies - poor governance - has become a major impediment. Above all, there is no convergence between the interests of the ruling elites and the masses - this lack of national consensus has resulted in a policy gridlock. Inaction has continued to build upon itself, fueling corruption, thus progressively reducing the effectiveness of policy responses. A new strategy is needed to not only shift the focus of growth, but also alter the mode of implementing policies. The policy stance should CRITERION – April/June 2010 145 Essay be shifted to rebalance growth from the past heavy dependence on consumption and imports to higher investment and exports. This will call for not only fundamentally correcting the macroeconomic imbalances, but also significantly increasing savings in a sustained fashion, reducing dependence on uncertain foreign aid, and redirecting foreign direct and domestic investment to export-oriented activities. It is to be hoped that foreign capital inflows would eventually resume as the economy returns to a sustainable path. While a significant reduction in insecurity will be a pre-condition for the success of the proposed policy reform, a sustained implementation of policy reforms to cement market confidence will be central. Full implementation of the current adjustment program which is supported by the IMF should help get over the short-term macroeconomic crisis and help lay foundations for the needed paradigm change in the philosophy underlying Pakistan’s development strategy. Without fundamental reforms of the fiscal sector aimed at raising domestic revenues and increasing room for outlays to improve the abysmally poor infrastructure—energy, education, health, water resources, agriculture, and transportation-- any sustained improvement in growth outlook is unrealistic. Any attempts to increase domestic spending through bank financing will reignite inflation, destabilize exchange rate, encourage uncertainty, and promote capital flight, thus worsening the already fragile situation. The recent easing of monetary policy should therefore be revisited to ensure that it would not compound the effects of the current expansionary fiscal policy. Finally, a sharp increase in reliance on external capital to compensate for lower domestic savings will not only increase the cost of financing, but also weaken debt sustainability, thus hurting the longer term outlook for growth. It is critical that early steps are taken to reform the tax system. In particular, the planned VAT tax should be implemented in 2009/10 while tax administration is improved to at least reduce tax evasion which, at present, is an endemic problem. New avenues for additional taxation and a more equitable sharing of burden should be seriously considered; agricultural income, real estate, and capital gains are readily available avenues. It is critical that steps be taken to ensure that the elites - which have been notorious and brazen in not paying taxes - step forward and 146 CRITERION – Volume 5 No.2 Essay settle their liabilities. If necessary, major tax evaders should be given exemplary punishment. Such an action could break the gridlock that has paralyzed effective policy actions so far. Official external financing could also be made conditional on steps to improve revenue mobilization over a defined 2-3 year period. It is worth noting that at about 10 percent of GDP, tax revenue in Pakistan is one of the lowest in the world and well below the average level for economies in the same income per capita range as Pakistan. Delays in implementing the critical energy sector reforms will not only keep actual growth well below the potential growth rate in the short run, but also drain the budget through subsidies, and hurt the medium term growth prospects. It is necessary to determine whether it is a problem of low tariffs or of electricity theft—the latter could not be solved through increases in tariffs.5Closely associated with the energy issue, and of fundamental long term importance, is the issue of emerging water shortages which would have debilitating effect on agriculture. Major investments are needed to drastically improve water supply and irrigation so that agricultural growth could underpin long term growth and food security without which political stability could not be ensured. While the near-term savings-investment decisions can be influenced by changes in the budget and monetary policy, the longer term savingsinvestment patterns are primarily structured by the relative openness of the economy, policy biases for allocation of resources, and the ability of the financial sector to attract, mobilize, and allocate savings - both domestic and foreign. In Pakistan, non-performing loans have started to increase significantly on account of excessive and speculative lending in the recent past, and the sharp economic slowdown. Moreover, the large interest rate spreads have encouraged capital flight and disintermediation. Bank regulation and supervision need to be strengthened. Increased competition in the financial sector would help resource mobilization and allocation. Some of the critical prices, such as the exchange rate and the interest rate structure, have been distorted to support private sector activity which, CRITERION – April/June 2010 147 Essay in turn, have raised subsidies and perpetuated inefficiency in resource use. This is an opportune time to correct such prices, particularly the exchange rate. It is critical that Pakistan’s export competitiveness is restored so that it is ready to compete when the world market emerges from the current contraction. While the rupee has depreciated in nominal terms over the past year, it is unclear whether the level is consistent with the expected external current account deficit. Given the lags in response to the exchange rate correction, an early action would be highly desirable. Such an action will provide the much-needed space and time for the authorities to put in place structural reforms that will be needed to sustain the required export-orientation of the economy. Governance and Challenge of Implementation None of the proposed reforms will make any headway without a dramatic and sustained improvement in governance - not simply in terms of formulation of policies and strengthening of institutions to implement them. There is incontrovertible evidence that difference in governance explains the differences in growth paths of developing countries. This is an area where Pakistan has experienced widening gap with its competitors in the region and at large.6 At the core, there is a need to develop national consensus on the economic challenges faced by the country and proposed solutions, and for all actors - political parties, military, civil society, elites, and the masses - to buy into it. At present, such a consensus does not exist. The ruling elites do not seem to fully grasp the enormity of the crisis and are therefore more interested in seeking external financing to “finance” the way out of the problem - as in the past-rather than face it heads on. At this juncture, the donor community can play a critical role to forge the needed consensus. It is critical that donor financing must be conditional in order to ensure that Pakistan takes painful, but necessary, steps that are needed for it to durably ensure growth and thus eliminate the need for global handouts every so many years. One way would be for such assistance to be tied to reform programs agreed with multilateral lending agencies. In particular, consideration should be given to linking 148 CRITERION – Volume 5 No.2 Essay disbursements with irreversible domestic actions to raise revenues and domestic savings rate over a defined period so that domestic savings rise enough in a durable fashion to permanently obviate the need for foreign aid. The importance of policy reforms and commitment to their implementation is thus self-evident. (The views expressed in this article are solely of the author and in no way reflect views or opinions of the Middle East Institute) References: 1 2 3 4 5 6 See Moyo, Dambiso; “Dead Aid: Why Aid is Not Working and How There is a Better War for Africa;” Farrar, Straus and Giroux, 2009. Prof. Bhagwati noted that in the absence of conditions for proper use, aid is more likely to harm than help growth by discouraging or postponing necessary policy reforms. For detail see IMF Country Report on Pakistan, N0. 08/21, January 2008. See also IMF, Pakistan-Public Information Notice, 17 December 2007. Economic Survey of Pakistan, 2007-08, June 2008. For a good analysis of the emerging crisis see IMF, Pakistan – Request for Stand-by Arrangement, 20 November 2008. An important example of the lackluster approach to the mounting economic problems is that, in the first six months of the new government, finance ministers were changed three times and secretaries of finance twice which did not provide continuity of policy implementation and mixed signals to the market, leading to significant capital outflows. The emerging consensus for energy reforms calls for an early settlement of the circular debt followed by repairs of installed capacity to increase production of electricity. Estimates show that the latter can be achieved in a few months and would cost only a fraction of the planned outlays on rental units. For more details on the role of governance in growth see: Mark Gradstein, “Governance and Growth,” Journal of Development Economics, Vol. 73, Issue 2, April 2004, pp. 505-518; and Mushtaq H. Khan, “Governance, Economic Growth, and Development since 1960s,” background paper for the World Economic and Social Survey, 2006. CRITERION – April/June 2010 149 MOUNTAIN & GLACIER RESPONSE TO CLIMATE CHANGE Aisha Khan* The ecological trend of greatest concern in Pakistan today is the continuing loss, fragmentation and degradation of its natural and modified habitats. The country, situated as it is in Southern Asia, borders the Arabian Sea and is flanked by India in the east, Iran and Afghanistan in the west and China in the north. Much of its geography is shaped by the collision of the Asian and Indian plates which dominate the contours of its relief in the north and, together with the plateaus, make up three-fifths of its total area. This tectonic fault-line runs almost parallel to the Indus River which derives its waters from these mountains and glaciers and, along with its tributaries, represents one of the world’s single largest water management systems spanning an area of 317,000 square kilometers. The biophysical environment The impact of the mountains and glaciers in a country like Pakistan is therefore of enormous significance and becomes the cause and effect of the biophysical environment. The latter is the symbiosis between the physical environment and the biological life-forms within the environment and includes all varieties that comprise the earth’s biosphere. The biophysical environment can be divided into two categories: the natural environment and the built environment with some overlap between the two. The built environment has become an increasingly * Aisha Khan is the CEO of the Mountain and Glacier Protection Organization (MGPO). Essay significant part of the earth’s environment. The part of the earth in which all life occurs is called the biosphere and falls within the scope of the biophysical environment. A biophysical environment is the complex of biotic, climatic and edophic factors that act upon an organism and determine its form and survival and morphs itself in the process. Ecosystems are also a defined part of the biosphere. Within an ecosystem there are a number of habitats in which organisms exist. At its most natural state an environment would lack any effect of human activity but the scale of this activity is such that there is no area on earth that is not influenced in some way by humans. At the other end of the scale is the built environment and in some cases the biotic component is virtually absent in it. The biophysical environment can vary in scale from microscopic to global. They can also be subdivided in accordance with their characteristics. The interactions within the biophysical environment and its impact on natural environment, built environment and social environment are the studies undertaken by environmental scientists to collect empirical evidence and provide green guidance to people in order to help them make informed choices about their future and quality of life. The countries that contain eco-fragile areas within their geographical boundaries bear the additional responsibility of minimizing or eliminating the effect of human activity on the biophysical environment. The issues of concern usually relate to the natural environment with the more important ones being climate change, species extinction and old forest growth loss. Mountains as water towers Mountains comprise 25 percent of the earth’s surface. Together with their peripheral areas, they constitute 26 percent of the habitat for the global population and occur in 75 percent of the world’s countries. They are a source of fresh water for almost half of humanity. More than half of the world’s fresh water originates in the mountains and all its major rivers are fed from mountain sources. The earth’s snow and ice-covered mountains constitute the water towers of vital supply for CRITERION – April/June 2010 151 Essay hundreds of millions of people. In many places each annual melt of snow and ice, recharges the river basins and reservoirs of the earth. But world water use per person has also doubled in the past century and the surge in demand for the commodity is likely to become an increasingly contentious issue in the coming years. Mountain ecosystems are among the world’s most vulnerable biogeographical domain. From the Andes to the Himalayas they are very distinct from lowlands and encompass heterogeneous habitat under threat from deforestation, destruction, loss of biodiversity, poorly conceived infrastructure, unregulated tourism and a host of other activities incompatible with mountain environment and beyond the carrying capacity of its land and resources. Mountains have therefore acquired unique global significance as biodiversity “hot spots” and “water reservoirs.” The importance of the world’s mountain regions was internationally recognized at the 1992 Earth Summit in Rio de Janeiro. Mountains are characterized by a high degree of biological and cultural diversity. High latitude and mountain environments are very complex due to the interaction of tectonic, geomorphic, ecological and climate agents and are known for their sensitivity to habitat and climate change. In addition to the continental ice masses, several geographic regions have been identified as critical regions and include Alaska, Patagonia, the Himalayas and the Karakoram. Glaciers and water supply Glaciers are frozen rivers of ice and affect the environment by moving across land and making valleys. They also provide critical clues about global warming. Glaciers are sensitive to temperature fluctuations accompanying climate change and can help provide scientists with answers to questions like the rate of atmospheric warming between the Ice Ages and the impact of human activity on global warming. Glacial ice ranges in age from several hundred to several hundreds of thousands 152 CRITERION – Volume 5 No.2 Essay of years. The ice cores drilled and extracted from the glacier contain information regarding past climate. Scientists analyze components of cores trapped in bubbles which reveal past atmospheric composition, temperature variations and types of vegetation from thousands of years ago in tiny bubbles. This information not only helps to reconstruct the past eras but can be used to predict change in the future. Since the early twentieth century, with few exceptions, glaciers around the world have been retreating at unprecedented rates. Some ice caps, glaciers and even an ice shelf have disappeared altogether in this century and many more are retreating so rapidly that they may vanish within decades. The production of electricity, along with the use of coal and petroleum in industry affects our environment in ways we did not previously understand. In the last 200 years human activity has increased the amount of carbon dioxide and other greenhouse gases released into the atmosphere. Glacial loss poses a risk to specific regions, habitats and species. Glaciers grow and shrink in length, width and depth in response to climate fluctuations and, because they are sensitive to temperature and precipitation changes, the rate of their growth and decline can serve as an indicator of regional and global climate change. Glacier changes can affect agriculture, drinking water supplies, hydro electric power, transportation, tourism, coastlines and ecological habitats. The mountains & glaciers of Pakistan A mountain range is a group or chain of mountains that are close together. Mountain ranges are usually separated from each other by passes and rivers. The Himalayas are the world’s highest mountain range with 30 peaks over 7315 meters while the Andes Mountains are the longest continental range stretching 7200 Km from north to south along the west coast of South America. Pakistan is home to many mountains above 7000 meters. Five of the world’s fourteen peaks above 8000 meters are located in the country. The three main ranges are the Karakoram, the Himalayas and the Hindu Kush. Most of the high peaks are in the Karakoram Range of which K2 (8611 meters) is the second highest in the world. The highest peak of the Himalayan range in Pakistan is Nanga Parbat (8125 meters).The other CRITERION – April/June 2010 153 Essay 8000m-plus peaks include Gasherbrum1 (8068m), Broadpeak (8047m) and Gasherbrum2 (8035m). Located in the region of Gilgit Baltistan, the Karakoram Range spans the Pakistan-China border and is situated east of the Hindu Kush, south of the Pamirs, west of Tibet and north of the western Himalayas. It stretches roughly 480 km from east to west and 210 km from north to south. In a central 160 km area the Karakoram has 60 peaks above 7600 meters and 4 peaks above 8000 meters. This agglomeration of towering peaks and the lure of its idyllic landscape have fascinated and captured the imagination of people worldwide for a variety of reasons. The magnetic attraction of the region for scientists and mountaineers alike is self-evident. The Karakoram Range represents a significant region which, together with the mountains of High Asia and the immense Tibetan Plateau, constitutes a major topographic part of planetary climate control and serves as catchments of snow and ice as well as watershed for the surrounding dry lowlands. This critical region is thought to contribute 16 percent of the water transferred to the world’s oceans. Fresh water in the form of ice constitutes about 80 percent of the water that is not in oceans which is far greater than any other stored source and also about 2 percent of the total water on the planet. In recent years there has been considerable debate over climate forcing and landscape responses as complex geodynamics regulate feedback mechanisms that couple climatic, tectonic and surface processes. Concerns over green house gas forcing and warmer temperatures have prompted research into understanding climate forcing and associated earth system response. The largest glaciers outside the sub-polar region are located in the Karakoram Range. The total length of the glaciated area is approximately 6160 square kilometers which means that almost 37 percent of the Karakoram Range is covered with glaciers as against 17 percent in the Himalayas. The Siachin Glacier is the longest (70km) and largest midlatitude glacier in the world, with high nourishment zones above 5000 meters altitude. Political problems aside, the Siachen Glacier and the other nearby ice masses such as the Baltoro Glacier (62km) to Mount K2 (second highest on the planet) span a range of elevations and geographic positions that offer unique opportunities for a broad range of scientific 154 CRITERION – Volume 5 No.2 Essay research, alpinism and adventure tourism. Some of the other glaciers in the region include Biafo (68km) Hispar (53km) and Batura (58km). Detailed scientific studies are required to fully understand the manifold problems associated with such things like climate change that can have local and perhaps global consequences associated with the world’s highest peaks. There is also some indication that the massive mid-latitude glaciers may be responsible for the major up-roofing of the Karakoram massif and the focused isostatic adjustment (P.Koons, persona comm., 1998) that is responsible for the uplift of so many 8000m-plus peaks in the region, more than anywhere else in the world. Glaciers are sensitive to climate change and recent reports indicate changes in the Himalayas and other parts of High Asia; mostly of glaciers retreating fast. The impact of this on water availability and other associated hazards is of concern at the local, national and transnational scales. Scientific Research Hazards in the cryosphere represent a continuous and growing threat to human lives and infrastructure, especially in high mountain regions. Glacial lake outbursts, floods, surges, debris flow, landslides and avalanches are all cryosphere-related disasters in the mountains that can kill hundreds of people at once and cause damage worth millions. Changes in glacier and permafrost equilibrium are shifting hazard zones beyond historical experience or knowledge. The increase in world population is pushing human settlements and activities into endangered zones. Empirical knowledge alone does not avert disaster and therefore needs to be replaced by scientific understanding of the processes that cause and affect changes that impact on the shrinking resource of the planet. Climate change could bring hydrological chaos, even with an average temperature rise of only a few degrees Celsius over the coming century, which is expected to bring more rain, less snow and more and earlier melting. This may halve snow pack volumes and increase flood and landslide hazards. Drastic change in hydrology over a period of time has a cumulative adverse effect that may become irreversible. The global hydrological cycle of the earth is therefore absolutely critical for sustaining the biosphere. Rational water management can only be founded upon a thorough understanding of water availability CRITERION – April/June 2010 155 Essay and movement which requires that its components are quantitatively measured and accounted for in hydrologic or mass balance. The most significant elements of the hydrologic cycle are: The volumes of solid, liquid and gas within subsystems. Residence time during which a unit remains within a subsystem reservoir. Paths of motion from one system to another. These scientific conclusions are the result of 35 years of research studies by Professor John F Shroder, Jr. on the mountains and glaciers of Pakistan. The high altitude, geodynamic systems of the Karakoram and Himalayan ranges are thought to be the direct result of climate forcing, although the climate forcing versus tectonic causation of the highest peaks is still being debated (e.g., Raymo et al.,1988; Raymo and Ruddimann,1992; Zeitler et al., 2001 a & b). Fundamental to this is the understanding between climate versus tectonic forcing and glacial response (Dyurgerov and Meier, 2000). In the absence of detailed information about glacier distribution and ice volumes, mass balance gradients, regional mass balance trends and landscape factors that control ablation it is difficult to assess the scope of hazard-potential in this region and its implications. The rapidly changing glaciological, geomorphologic and hydrological conditions of the region present a different kind of looming crisis in terms of decreasing water supply, increased hazard potential and further geopolitical destabilization. However there is a growing recognition that glacial conditions in the region are very diverse, and so are their responses to climate change. Scientific progress in understanding the western Himalayas has been slow due to the complex and difficult topography, paucity of field measurements, limitations associated with information, military restrictions and other difficulties. Scientific problems include limited information on: 1. Enumeration and distribution of glaciers. 2. Glacier mass balance gradients and regional trends. 156 CRITERION – Volume 5 No.2 Essay 3. Estimates of the contribution of glacial melt water to observed rise in sea level. 4. Natural hazards and the imminent threat of land sliding, ice and moraine dams and catastrophic outburst caused by rapid glacier fluctuations. Concerns over green house gas forcing and warmer temperatures have caused initiation of research into understanding climate forcing and associated earth system responses. The decade ending in 2009 was the warmest on record according to new surface temperature figures released by the National Aeronautical and Space Administration. The agency also found that 2009 was the second warmest year since 1880, when modern temperature measurement began. The warmest year was 2005. The other hottest recorded years have all occurred since 1998 (NASA). There are many different implications in different societal contexts and in relation to rapid socio-economic changes, water resource projects and security crises but the main impact of climate change will be on water supplies. Desertification, flash floods, melting glaciers, heat waves, cyclones or water borne diseases such as cholera are among the impacts of global warming and inextricably tied to water. World-wide field investigations and remote sensing indicate that many glaciers are retreating and down wasting. This has also been observed in the western Himalaya and Hindu Kush (Shroder and Bishop, 2005 a,b) even though most of the glaciers in the Himalayas have accumulated zones at altitudes from 6000-8000 meters that are permanently frozen and would be less affected by global warming. From a scientific perspective, climate forcing has had a significant impact on this region in a relatively short period of time (Shroder and Bishop, 2000; Bishop et al., 2002). Research however has yet to determine whether atmospheric warming will produce negative or positive regional mass balance trend. The local and mesoscale topographic variations also modify the regional climatic patterns and tectonic forcing which in turn govern climate and glacier dynamics (Hubbard, 1997; Shroder and Bishop, 2000). CRITERION – April/June 2010 157 Essay From the resource perspective, ice masses in the Hindu Kush and the Himalayas constitute the potential melt water resource from the mountain “water towers” of South Asia and the total volume and condition of these long and short term storages will be critical to the management and prediction of future water resource availability. Irrigation, agriculture, tourism, hydroelectricity, drinking water, catastrophic floods and cross-border conflicts can all be significantly affected by the changing conditions of the Asian ice masses. Already the drought in the western most areas, particularly the Hindu Kush of Afghanistan, is dramatically reducing the many small glaciers that still provide or once provided the melt water supplies. Glaciations and de-glaciations in the region, especially the disruption of melt water resources through damming and diversions, as well as instabilities produced by mountain-wall undercutting and removal of ice and rock support buttresses generate numerous hazards that can have catastrophic effects (Hewitt, 1989a; Richardson and Reynolds, 2000; Costa and Schuster, 1988). This fact has significant implications for hazard production that need to be given serious consideration before undertaking any developmental projects in the area that can become trigger factors for man-induced disasters. Although the reality of climate change is not questioned but some recent scientific observations in particular to unresolved problems of understanding high altitude glaciers and their relation to climate change needs to be further explored. Globally most glaciers are reported to be diminishing and reports of “disappearing glaciers” have also come from many parts of high Asia. However this is not the case in the Karakoram Himalaya where many have started thickening and advancing. While there was roughly 10 percent reduction of the Karakoram ice cover in the first 60 years of the 20 century, no significant reduction has occurred in recent decades. While a threat from “disappearing glaciers” is cause for concern, the growing glaciers are not necessarily benign. The worst consequence in recent history came with enlarged ice cover of the Little Ice Age: a period of several centuries, ending just over 100 years ago, when glaciers grew throughout the northern hemisphere. The considerable reduction of the glaciers between 1910 and the 1960s 158 CRITERION – Volume 5 No.2 Essay was in effect removing ice stored in the Little Ice Age. The evidence of advances in the Karakoram not only indicates a different response to changing climate; it also raises the prospect of the hazards of advancing ice not seen since the Little Ice Age. Enhanced melt water production may contribute to the well known profusion of glacier surge activity in the region and associated en-glacial and pro-glacial floods for which there is no mitigation of risk reduction strategy in place to develop people’s capacities to cope with and adapt to environmental change. The complex geo-dynamics of the region combined with the unpredictable impact of climate change makes collaborative research in the following areas both important and necessary: 1. Seismic Hazard Research Sharing standardized seismic data between all countries in the region. Collaborative effort between engineers and seismologists where impoundment construction is being considered in close proximity to active fault-lines specially to avoid risk of dam failure with reservoirs. Shallow subsurface studies of earthquake fault areas. A study of alluvial fans and seismic hazards associated with landslides and other disturbances in their vicinity. 2. Monsoonal Variations with Climate Change and Microclimatic Impacts: Interdisciplinary analysis of monsoonal variation. Palaeoclimatic studies using sediments from glacial lakes and other normal lakes to understand the behaviour of monsoons in the region. Watershed modeling of Western Himalayan river systems between hydrologists, climatologists and restoration ecologists to assess anthropogenic disturbances to riparian areas. 3. Glacial Behaviour: CRITERION – April/June 2010 159 Essay Study of past and current glacial behaviour and its impact on downstream ecosystems and communities. Primary research to understand the cyclic versus anthropogenic impacts of glacial changes in the Himalayas. Data collection of Glacial Lake Outbursts and regional coordination to develop risk management strategies. The impact of mountaineering and armed conflict on glaciers in the Western Himalayas. Environmental Economics In developing countries rapid population growth is often combined with rapid environmental degradation and a diminishing resource base sets the stage for environmentally induced conflicts. There is already evidence of environment and demographic stresses creating societal strife both at the national and international levels. Although environmental scarcity is not the sole cause of conflict but environmental degradation and environmental scarcity feed into each other and together unleash the market forces that pit vested interest groups against each other for the capture of the critical resources at the cost of marginalization of poor groups, rising economic hardships and social instability. This in turn creates and fuels ethnic, communal and class-based rivalries which increases and promotes group identity and deprivation conflicts as groups resort to violence to address their grievances. The Millennium Eco System Assessment, the work of 1300 scientists and experts from 95 countries in which UNEP played a pivotal role, gives some of the first firm figures on the environment’s economic value. Damage to natural capital does not only undermine our life-support systems but erodes the economic basis for future generations. The goods and services provided by nature are worth millions and restoring damaged ecosystems is both costly and time consuming. The burning of 10 million hectares of forest in Indonesia in the late 1990s cost an estimated $ 9 billion as a result of factors such as increased healthcare and tourism losses. The value of timber and fuel wood from a forest is worth less than a third when compared with the value of services such as watershed protection, recreation and the absorption of pollutants 160 CRITERION – Volume 5 No.2 Essay like green house gases. Environmental economics will therefore play a critical role in the coming years as the world wrestles with increased populations, indiscriminate use of natural resources, disproportionate consumption patterns, inequitable distribution of wealth and shrinking base of vital natural assets. According to the United Nations University (UNU) experts, 50 million people will be environmental refugees within the next five years. The UNU says that the number of people forced to move by environmental related conditions already approximates the number of officially recognized “persons of concern” recently calculated at 19.2 million. The UNU also cites research by the International Federation of Red Cross that shows that more people are now displaced by the environment than by war. Conclusion Mountains are beautiful and provide a transcendental experience by elevating the mind to a higher level of consciousness but mountains also serve another purpose which is not sufficiently understood by the majority who regard mountains as a destination for recreation or a challenge to summit a peak. Mountains support and sustain life and their glaciers and landforms hold clues to past and future problems and possibilities. The mountain regions of Gilgit Baltistan in Pakistan are core strategic assets that need to be preserved and protected not only for our own land and people but also for regional geopolitical stability. In concrete terms their sustainable management means enabling mountain communities to earn a livelihood, providing protection against natural hazards, conservation of natural resources and supporting developments that take into account the special features of mountain regions and ensure that both mountain and lowland populations become equal partners of a fundamental social contract. The Millennium Development Goals signed by 191 nations provides a roadmap for the future global progress with benchmarks and timelines. CRITERION – April/June 2010 161 Essay It identifies 8 goals as paramount for human development. Each goal holds its own merit but goal 7, which calls for Ensuring Environmental Sustainability, has an overarching importance and determines the relevance of all the other goals. If the human race is threatened with extinction then the other goals will automatically become redundant. Mountains can give life and mountains can destroy life. We in Pakistan need to understand our mountains, respect their power, fear their fury and learn to live in harmony with nature. In the concept of deep ecology the living and the non-living parts of the earth interact and constantly modify each other. The answer lies in seeking balance between individual, regional, national and international efforts to work for a common goal with shared objectives. Saving the planet is not one person’s, one community’s or one nation’s responsibility. The responsibility for the protection of the environment lies with all sections of the national and international communities. There is enough evidence to indicate that degradation of the environment in one part of the world will affect the lives of many others in distant lands. Global warming too is no longer an abstract theory but a reality with scientific data to support its findings. Mountains and mountain ecosystems are part of our life and future. Mountains mean water and water means life. The need to understand mountains and glaciers is a vital prerequisite to preserve these water towers for the future survival of the human race. 162 CRITERION – Volume 5 No.2 IMPACT OF TRANSNATIONAL MEDIA ON BROADCASTNG IN PAKISTAN Hamid Raza Khan* Introduction The advent of globalization and the proliferation of modern communication technologies have led to the emergence of a new media order which has dramatically reshaped national boundaries. This has, in turn, made it difficult for countries to restrict worldwide cultural flows and control forces of global communications. Giving way to this trend are the national media systems which are increasingly becoming transnational in character as they negotiate cross-border movements of ideas, goods, capital and people. The impact of transnational media differs from one region to another depending upon the dynamics of regional politics and inter-state relations (Page, D. and Crawley, W. 2005). However, some of the common features in the development of transnational and regional media are visible in the way a number of them have expanded themselves to acquire a global reach. One of the countries to have witnessed an impressive growth of the transnational media in recent years is Pakistan which has emerged as another success story in this area. In effect, the transnational media spearheaded by dozens of private TV channels has revolutionized the broadcast sector, making it a new decisive factor in determining the course of major social and political developments as they unfold in Pakistan which, in terms of population, is the sixth largest country in the world. * Hamid Raza Khan is a civil servant currently heading the public relations department of a large public sector organization. Essay Contextualizing broadcasting in Pakistan At the time of its independence in 1947, Pakistan inherited a small broadcast media comprising five radio stations. Against the background of the tragic events which preceded the partition of the South Asian subcontinent and the emergence of Pakistan in the name of Islam, it was left to the newly established Pakistan Broadcasting Service to forge a strong sense of national unity and Islamic identity among the masses who were largely dispersed in the rural areas with limited access to schooling, electricity and other amenities. The radio was, in time, joined in this mission by Pakistan Television (PTV) founded in 1964 with financial and technical assistance from Japan. The first television station was set up in Lahore. The idea was to tap the talent the city offered being a hub of art and culture. As PTV’s programmes progressively became popular for being “spontaneous, literary and experimental,” the government bought majority shares in the corporation, bringing it effectively under its control (Pasha, Shireen 2000). In the preceding years, TV and radio provided the public a certain degree of awareness and entertainment through music and plays. PTV plays were not only popular within the country but also captured a huge viewership in India (Pawar, Yogesh 1999). However, the downside was its obsession with the twin task of promoting Islamic identity and ensuring the “legitimization” of the incumbent regime. This seriously hampered the progressive evolution of creative ideas indispensible for innovative programming. Official control became increasingly stringent and any criticism of the country’s domestic and foreign policies entailed serious consequences for the producers. Consequently, PTV’s flagship news bulletin, ‘Khabarnama,’ aired at 9:00pm became a tool of official propaganda and was jokingly characterized as ‘9 pm with one pm’ for its almost incessant coverage of the prime minister and his ministers (Barraclough, Steven 2001). This incrementally spawned a culture of self-censorship and gave birth to “a new cadre of people, within and outside the electronic media, who unabashedly sided with this opportunity reducing the media to a genre of mediocrity, hypocrisy and degeneration” (Pasha, Shireen 2000). The coercive regime of restrictions which the PTV encountered became particularly pronounced in the 1980s when, during General 164 CRITERION – Volume 5 No.2 Essay Zia-ul-Haq’s military dictatorship, Islamization of PTV resumed in earnest. Even radio felt the weight of this policy when “absurd attempts to mutilate music” were made by officials as they sought “to ‘Islamise’ the names of classical music ragas” (Mooraj, Anwer 2007). For PTV, some of the early targets of Zia’s policy were women presenters who were directed to cover themselves with an all-encompassing dupatta (scarf). If they refused, they were summarily dismissed. It was however the burgeoning film industry that felt General Zia’s draconian measures more when he ordered a clampdown on the so-called vulgarity exhibited in the Urdu and Punjabi movies. The consequences were so pervasive that over the next 10 years more than 1000 cinema houses were closed and the owners forced to “do everything from advertising soap to running a circus to make money” (Kennedy, Miranda 2004). Liberalising the airwaves For more than four decades, Pakistan’s 152 million citizens have had to bear with official news offerings reflective of one-sided propaganda and a blinkered view of major political events. But the winds of change started blowing in the 1990s when India liberalized its media sector which recorded an exponential growth from one state-owned television channel in 1991 to 70 in 1998 (Thusso, Daya Kishan 1999). Given their availability on the dish antenna and cable, the Indian channels penetrated Pakistani society through their superior, more open and glamorous programming. For some years, Pakistani rulers looked askance at this development and toyed with the idea of reforming Pakistan Television by encouraging private productions though avoiding permissive programming. These faltering measures, however, failed to stop the cultural juggernaut of Indian channels from making further inroads into Pakistani society (Barraclough, Steven 2001). The turning point came during the Kargil war when the Indian channels successfully “squeezed out the Pakistani point of view” (Page, D. and Crawley, W. 2005). The PTV response was pathetically inadequate both in terms of content as well as quality with its “wooden-faced newscasters” woefully failing to make any impact on Pakistan’s own public who turned to Indian channels to get the latest on the Kargil conflict. CRITERION – April/June 2010 165 Essay The ascendant influence of Indian channels on Pakistani society became a cause of considerable concern for the government of Pervez Musharraf who decided in 2002 to create a “media deterrent” to New Delhi’s propaganda onslaught. The government thinking was led by Javed Jabbar, the information minister at the time, who saw “a huge asymmetry” Pakistan faced in comparison to the Indian media. While pointing out “an insidious aspect to the way in which, between the song and dance, Indian media seek to undermine the rationale that validates and motivates Pakistaniat,” he stressed the need “to develop the media equivalent of nuclear weapons so as to equalize and neutralize the Indian superiority in conventional numbers and the attempts to corrode our persona” (Jabbar, Javed 2003). It was therefore less for “altruistic” reasons and more for countering the “pervasiveness” of Indian TV channels that the military government of General Pervez Musharraf decided to open up the broadcast sector to private ownership in 2002. But the move came as a blessing in disguise for the Pakistani public who hungered for a real, reliable and relevant source of independent information. In the intervening two years, the Pakistan Electronic Media Regulatory Authority (PEMRA) issued about 100 FM radio and 25 satellite TV licences, transforming the country’s media scene drastically. Since then, the number of private channels to have entered the market in Pakistan has increased steadily and by the end of 2009, the country boasted of 77 private satellite channels and 129 FM radio stations – an increase attributable to a considerable relaxation in cross media ownership restrictions and enhanced national advertising budget owing to the advent of many FMCGs (fast moving consumer goods) on the national horizon (PEMRA Annual Report, 2009). Impact on state broadcasting The impact of the transnational channels on the broadcast sector in Pakistan has been phenomenal. For one, it has helped end the monopoly of state broadcasters who are now suddenly up against a slew of formidable rivals challenging the long-held dominance of PTV among the viewers. Feeling the weight of the competition, the PTV introduced in the 1990s a more liberal approach in the news and current affairs 166 CRITERION – Volume 5 No.2 Essay programmes as reflected in ‘Open Forum’ and ‘Meezan’ (Scales) – two popular talk shows of the time. On the entertainment side, programmes such as Spotlight (beauty tips), PTV Gold and Her Taan Hay Deepak (film music), Lok Rang and Sohni Dharti (folk music) were a welcome departure from the “oppressive” Zia era (Barraclough, Steven 2001). However, the arrival on the scene of local private channels dramatically changed the nature and scope of competition for PTV which found its new rivals far more competitive than the Indian channels in terms of resources and the reach they had to report the local events. While ARY and Indus gave PTV a run for its money, the real competition came from Geo TV, launched by Jang Group, which quickly staffed itself with some of the most well-known journalists already working with the Group’s Daily Jang and The News, two newspapers in Urdu and English with the largest countrywide circulation. In response PTV scrambled to put in place an assortment of new programmes, hired professionals from the market and went for all possible professional and technological innovations. A clear change was perceptible in the PTV plays which lent themselves to changes “in attire and idiom of characters corresponding to modernization of certain sections of the population” (Wasim, Mohammad 2006). There was also “a visible movement from unilinear to multi-linear themes of plays, reflecting a greater awareness about complex issues of public and private life than before” (ibid). Plays were also aired on themes that were previously considered sensitive and taboo including violence against women, family planning and AIDS. In recent years, plays like ‘Umrao Jan Ada’ which depicts the life of a 18th century sex worker and ‘Shaid Kay Bahaar Aye’ which details the struggle of a lawyer who is raped but fights her circumstances and finally emerges successfully from her ordeal, mark a clear shift in the official policy on entertainment (Kiran N. Ahmed, Uzma T. Haroon, 2003). However, the openness displayed in entertainment programmes is at complete variance with the stricter government control on the news and views which continue to reflect the state’s point of view. This was glaringly apparent in an incident narrated by noted Pakistani broadcaster, Beena Sarwar, who wrote that soon after the 9/11 tragedy a short news film showing a protest against General Musharraf and US President Bush CRITERION – April/June 2010 167 Essay was telecast apparently inadvertently by PTV’s Tando Allahyar relay centre in Sindh. This prompted stern action by the PTV management who suspended the entire technical staff at the station “for violating the policy against covering anti-government unrest” (Sarwar, Beena 2002). After the US-led invasion of Afghanistan, there was a discernible shift in PTV’s policy towards the religious right and views critical of extremism were aired. While some analysts welcomed this stance against religious bigotry, others felt that it was motivated by no higher purpose than to justify the government’s change in policy towards the Taliban regime in Kabul (Sarwar, Beena 2002). The launch of a current affairs and news channel in October 2000 was also an attempt by PTV to deal with the competition from private channels. Two noticeable current affairs programmes were Question Time, based on recording of the question hour in the parliament, and Open Forum which brought ministers and officials face to face with the public on civic and political issues. One of the popular current affairs programmes was ‘News Night’ aired daily soon after the main 9:00pm Khabarnama (news bulletin). Hosted by Syed Talat Hussain, considered one of the top journalists of Pakistan, the programme attracted a sizeable viewership because of its variety of political views, the quality of debate and the perspectives that emerged during the live discussions. A real treat for the informationhungry PTV viewers came on the occasion of the SAARC (South Asian Association for Regional Cooperation) Information Ministers’ Conference in Islamabad in March 2002 when ‘News Night’ aired live interviews with the visiting ministers, including India’s Sushma Swaraj. The interview was a massive hit and received press reviews both in Pakistan and India because of the particularly tense relations prevailing between the two countries at the time. In recent years, PTV has tried to rejuvenate itself by improving its professional and technical resources as well as extending its outreach. Apart from PTV One, various new channels such as PTV National, AJK TV, PTV Bolan, PTV World and PTV Global have been launched. In 168 CRITERION – Volume 5 No.2 Essay August 2007, PTV One and PTV World were renamed as PTV Home and PTV News respectively. There is also a comparative improvement in the news and entertainment content. The duration of hourly news bulletins has increased and PTV has also begun to provide live coverage of selected events. Its marathon transmissions during the devastating earthquake that left over 70,000 people dead in Pakistan’s northern region were appreciated considerably. PTV also won appreciation for a programme hosted by popular compere Tausiq Haider who visited hospitals, clinics and relief camps set up in Islamabad and Rawalpindi for the quake victims and interviewed the patients separated from their families after being airlifted for medical treatment. The programme continued for several weeks and helped reunite many families. Besides strengthening the profile of its news telecasts, PTV has also launched several current affairs programmes like News Morning (Urdu) and News Plus (Urdu) broadcast in the morning and News Night (Urdu), Aitraz (Urdu) and Salim Safi Kay Sath aired in the evening. World View is another talk show which caters to the English-speaking viewers. However, PTV’s most popular current affairs programme in recent years has been Sach Tu Yeh Hay which is aired every Saturday, followed by a repeat telecast the following day. Its panelists, often six, are drawn in equal number from the government and opposition political parties and they discuss threadbare key national issues often in two episodes, each of 50 minutes duration. On the whole, PTV has adopted a far more open and liberal approach following the phenomenal expansion of transnational media but this is, to an extent, offset by the continuous government control which undermines its credibility and impedes creativity in its entertainment and general presentations. Impact on news and entertainment The impact of transnational media is clearly evident in the way news and entertainment segments of TV programming have been transformed in recent years in Pakistan. Far from the days when one-sided official propaganda churned out by PTV was imposed on viewers, private CRITERION – April/June 2010 169 Essay channels have made considerable advances in terms of engaging the public and educating them through well-informed analyses of social and political issues and this has been instrumental in influencing popular opinion (Wasim, Mohammad 2006). In recent years, some of the major national events which were closely monitored and reported by the private channels include the general elections of 2002 and 2008 as well as the earthquake tragedy that visited the northern areas of Pakistan in October 2005. It was the enormity of the tragedy that prompted massive electronic media coverage for weeks on end and this evoked a spontaneous and generous response from the local and international community. Yet another occasion when the country’s private television channels stood out for their fearless news reporting came during the judicial crisis in 2007 after President Musharraf sacked Chief Justice Iftikhar Mohammad Chaudhry. The situation deteriorated sharply after the president imposed emergency and deposed half of the country’s higher judiciary. This blatant violation of the constitution ignited popular outrage and the country hurtled towards turmoil. The ensuing mass movement spearheaded by the lawyers and supported to the hilt by the intelligentsia assumed the proportions of a political tidal wave. This contrasted starkly with events in India in 1975 when civil society “caved in” during the emergency imposed by Indira Gandhi. (Nayar, Kuldip 2007). The private television channels joined the fray and refused to be cowed down by the government which wanted them to moderate their extensive coverage of the anti-Musharraf protests. The media was determined to protect their hard-won freedom. The turning point came when the private channels provided a blow by blow coverage of the riots in Karachi in May 2007 when armed government supporters killed dozens of their rivals (Walsh, Declan 2007). This was a complete departure from the past, especially the 1980s when Karachi was aflame with ethnic violence and bomb explosions wreaked havoc in the markets and populous civic centers which the controlled electronic media was unable to report. 170 CRITERION – Volume 5 No.2 Essay Indeed, one of the reasons for the steep fall in popularity of the Musharraf government was the worsening security situation that was effectively projected by the private channels through their live or ontape reporting of bombs blasts and other terrorist incidents. For instance the country watched in sheer horror the live reporting of the bomb explosion killing over 140 people during the massive PPP rally organized in Karachi to welcome its chairperson, former Prime Minister Benazir Bhutto, on her return from exile on 18 October 2007. A little more than two months later, the entire country was again stunned when television cameras captured images of the suicide bombing that targeted and killed Benazir Bhutto as she waved to crowds while driving home from a public rally in Rawalpindi’s Liaquat Garden on 27 December 2007. The private channels have also changed the concept of political reporting and with it the country’s politics and the conduct of politicians. This is clearly visible in the political talk shows which “feature a diversity of views that would please Ofcom” (Waraich, Omar 2007). People love to watch politicians as they ramble and squirm in the face of teasing questions by hosts keen to scrutinize their personal and professional conduct on matters of public concern. The private channels “freely criticize the government for going against the spirit of the constitution, violating democratic traditions and being unaccountable to the public at large for inflation, unemployment, poverty, deterioration of the law and order situation and highhandedness against opposition” (Wasim, Mohammad 2006). Indeed, the popularity of political talk shows such as Capital Talk, Jawab Dayh (Accountable), Mairay Mutabiq (For Me) and Aaj Kamran Khan Kay Sath (Today with Kamran Khan) of Geo News; Live with Talat Hussain and Bolta Pakistan (Pakistan Speaks) of Aaj TV; Off the Record, Second Opinion and Q&A with PJ Mir of ARY; Doosra Pehlu (Other Aspect) of CNBC Pakistan; and Kal Tak (Until Tomorrow) and Centre Stage of Express News is such that even after a repeat telecast by their respective channels, many of these programmes land up at popular websites such as YouTube, blip.tv, pkpolitics.com, awaz.tv, politicsarea.com for the viewers to see them all over again. Religion has always been at the centre of social and cultural life for a majority of the Pakistanis. Religious programmes therefore get a sizeable CRITERION – April/June 2010 171 Essay chunk of daily TV programming. While PTV’s religious programmes had a simple format, now such programmes by private channels have moved away from the stereotype. For instance, GEO’s Alim Online has a suave young host with a closely cropped fashionable beard who has a laptop and a telephone in front of him. The programme is unique in the sense that it brings together scholars from the Shia and Sunni sects which have often been embroiled in sectarian violence against each other. The outreach of the private channels is vast and broad-based thereby enabling hitherto marginalized communities to voice their grievances and to bring these within the ambit of public consciousness and become a part of the broad national discourse. Furthermore, religious festivals and community functions of minorities are reported widely while special programmes are run to mark other events such as Valentine’s Day and New Year celebrations. While the liberal programming has broadened the minds of the people, it has also made them aware of issues which were previously swept under the rug. The rampant domestic violence against women and their exchange as goods of trades to settle disputes in certain tribal areas have been highlighted consistently by the private channels. “And social mores have relaxed to the point where fashion shows and a transvestite talk show host, Begum Nawazish Ali, are proving more popular than the new breed of Muslim televangelists” (Waraich, Omar 2007). Private channels regularly feature edgy comedies such as Geo’s Hum Sub Umeed Say Hain, Dunya’s Hasb-e-Haal and Aag Channel’s 4 Man Show which often satirize politicians and celebrities from film and sports alike. Geo TV broke taboos when it launched its popular weekly show ‘Marriage Online’ which is frequented by the youth who describe themselves and ask prospective suitors to contact their parents. Geo also caused a public outcry in 2004 when it broadcast a report on Rawalpindi’s Internet cafes serving as hubs for pornography and meeting spots for young lovers. A year later, the channel again created a stir when it aired a discussion on the ultra-sensitive topic of incest on its Agony Aunt programme, Uljhan Suljhan. During the show, host Hina Khwaja Biyat read out a victim’s letter in which she wrote how her brother had sexually abused her for six years. Among the panelists was a doctor 172 CRITERION – Volume 5 No.2 Essay who identified the mutual dependency situation as incest and strongly recommended the use of contraception to prevent further complications. It was a daring talk on issues considered highly provocative in the deeply conservative Pakistani society and the channel had to pay for it when a group of armed men claiming affiliation with a religious organization attacked Geo’s Karachi building, beat up security guards and ransacked the first two floors. In recent years, this freedom has been used to delve deep into the labyrinths of politics with channels going into an overdrive to unmask incidents of corruption, malpractice and maladministration. From a legislator cheating in an examination hall or shopping on a stolen credit card to police officials publicly lashing persons under detention are some of the spectacles that are coming as a routine daily diet on television news. Indeed, the media has become an effective watchdog, holding the government and opposition leaders to constant scrutiny and exposing corruption and highlighting social ills and human rights violations (Lodhi, Maleeha, 2010). The media has also transformed and enlarged the public space and enhanced citizens’ engagement with issues which are now debated on the television screen, not the floor of parliament (ibid). Occasionally, this unchecked freedom has also been used by new channels to step into legal controversies. In 2006, Geo ran a series of debates titled Zara Sochiey (Think for a moment) to highlight “lacunae” in the controversial Hudood laws dealing with cases of rape and adultery. Consequently, the government amended the law to make it more balanced. Although, the liberal view presented by new channels is often frowned upon by ultra-conservative Islamic groups, there is also a sense of satisfaction at the way new programmes have replaced the international media, like BBC, CNN, Fox (CBS News, 2004). The new channels argue that while they have a responsibility to fight conservatism, they will continue to “to nudge it towards the middle, bringing it out of these dark dungeons of PTV programs but protect it from ‘Sex and the City’” (ibid). CRITERION – April/June 2010 173 Essay While new channels continue to cleave to the notion of bold and liberal programming, the impact of such programmes on the society is already visible. Pakistan-born British novelist Mohsin Hamid who travelled to Pakistan in 2007 to watch his would-be wife performing the lead role in a show called Jutt and Bond, an Urdu sitcom about a Punjabi folk hero and a British secret agent, recounts “the incredible new world of media that had sprung up in Pakistan, a world of music videos, fashion programmes, independent news networks, cross-dressing talk-show hosts, religious debates, stock-market analysis, and dramas and comedies like Jutt and Bond” (Hamid, Mohsin 2007). “Views both critical and supportive of the government are voiced with breathtaking frankness in an atmosphere remarkably lacking in censorship. Public space, the common area for culture and expression that had been so circumscribed in my childhood, has now been vastly expanded. The Vagina Monologues was recently performed on stage in Pakistan to standing ovations” (ibid). The contribution of private channels towards promotion of popular music genres is also significant. The phenomenon set in the late eighties by the likes of pop stars Nazia and Zohaib and later picked up by Vital Signs and Junoon has been taken to a new high by dedicated 24-hour music channels led by MTV Pakistan, The Music, Indus Music and Aag Channel. Massive corporate sponsorships and availability of more air space for pop acts have resulted in hundreds of amateurs and underground bands trying to burst on the music scene (The News 2007). Pakistani singers Atif Aslam, Shafqat Amanat Ali, Jawad Ahmed, Rahat Ali Khan and Ali Zafar routinely perform in India. Popular songs by some of them have also been included in Hindi movies. The story of Amanat Ali, a 19-year-old lad from Faisalabad, ending up as second runner up after polling 43.8 million votes in a global music contest organized by Zee Music in 2007, reflects on the music mania private channels have created in Pakistan. Besides music channels, entertainment channels featuring infotainment, drama serials and sit-coms have also encouraged frequent injections of music videos and soundtracks being composed by established musicians. 174 CRITERION – Volume 5 No.2 Essay The proliferation of television channels has also opened up new vistas for the corporate world which has catapulted the advertising industry to new heights at the back of a competitive economic environment and strong consumer spending. Pakistan’s robust telecom industry boasting over 80 million subscribers at the start of 2008, the banking sector which has maintained one of the best growth rates in the region, and a resurgent construction business spearheaded by companies like Emaar and AlBuraj Group have all combined to transform the country’s advertising industry which now boasts of Rs 17 billion annual revenues (Yasir, Muhammad 2007). And the prime beneficiaries of this boom remain private television channels whose revenues have skyrocketed. While new channels join the foray increasing the on-air ad space, ad rates on the satellite channels have continued to climb. During the early days of its launch, Geo TV sold ad time for between 5,000 to 10,000 rupees per minute with ARY and Indus also enjoying similar rates (Qizilbash, Talib, 2007). “Now, Geo’s prime time tariff rates (undiscounted) are quoted at 75,000 rupees. Among the other top channels, ARY One World and Indus Vision command 60,000 rupees, while Hum TV and Aaj TV ask for 45,000 and 37,500 rupees respectively for a 60-second prime time spot” (ibid). The Pakistani TV going transnational has also reached the expat community all over the world, bringing them closer to events at home. Channels such as Geo, ARY and Aaj enjoy a massive viewership among the Pakistani expatriate community. The number of telephone calls made to television talk shows and news magazines by Pakistanis living abroad is a measure of their engagement with politics back home. The impact of transnational media on broadcasting is also reflected in an overall transformation of professional skills and work ethics. The quality of news and investigative reporting is consistently improving. The demand for quality has also contributed to better wages for the journalists. With the expansion of the broadcast sector, the intake of fresh blood into the industry has also increased manifold. At the time Jang Group launched Geo TV, it added 2,000 employees to the existing 3,000 workforce and some 500 journalists were trained for six months through international media consultants. This was in addition to a CRITERION – April/June 2010 175 Essay network of reporters developed across Pakistan and in 10 major cities throughout the world. The new channels have also contributed to an all-time high intake of students in mass communication departments of Pakistani universities. The standard of journalism has also improved considerably. Subjects such as TV production, investigative and online journalism are quite popular now. Conclusion This essay has encapsulated the impact of transnational media on the broadcasting sector in Pakistan with references to the changes the sector has undergone in recent years. From the way it has shaped itself, this broadcasting revolution has been thrilling and “a reality television in the truest sense of the word” (Qizilbash, Talib, 2007). While the future television landscape in Pakistan is likely to change with the focus shifting to very few hybrid channels and many more regional and news channels, the nature of infotainment and its presentation has undergone an irreversible change. The beneficiaries of this revolution are the viewers who now have a “smorgasbord” of TV viewing options. Indeed, from Quran TV which has championed religious programming, to Fashion TV Pakistan which gets away with partial nudity in the middle of the day, to Muzik which showcases Pakistani pop arts, to Pakistan’s first English language Dawn News, there is little the burgeoning new industry is not auditioning (Mufti, Shahan, 2007). The phenomenal growth the broadcast industry has registered in Pakistan has already spawned a healthy competition which is likely to result in more viewing options for the public, more revenue and jobs for the national economy and more opportunities to make money for the entrepreneurs and prospective investors. Bibliography 1. Barraclough, Steven, 2001. Pakistan Television Politics in the 1990s – Responses to the Satellite Television Invasion. Gazette, 63/2-3 225-239. Available from http://gaz.sagepub.com/cgi/reprint/63/2-3/225 (Accessed 29 January 2010) 176 CRITERION – Volume 5 No.2 Essay 2. CBS News, 2004. TV loosens up in Pakistan. CBS News, 28 July. Transcript available from http://www.cbsnews.com/stories/2004/07/28/world/main632551. shtml (Accessed 21 February 2010) 3. Hamid, Mohsin, 2007. General Pervez Musharraf: Pakistan’s big beast unleashed. The Independent, 11 February. Available from http://www.independent.co.uk/ news/world/asia/general-pervez-musharraf-pakistans-big-beast-unleashed435738.html (Accessed 16 February 2010) 4. Jabbar, Javed, 2003. To Ban or Not to Ban? Monthly Newsline, September 2003. Available from http://www.newsline.com.pk/newsSep2003/guestsep.html (Accessed 2 January 2010) 5. Kennedy, Miranda, 2004. Lollywood Goes Pop, radio report. On the Media, 2004. Aug 20. Transcript and audio available from http://www.onthemedia.org/ yore/transcripts/transcripts_082004_lolly.html (Accessed 6 March 2010) 6. Kiran N. Ahmed, Uzma T. Haroon, 2003. Proliferation of TV channels in Pakistan. SDPI Research and News Bulletin, March-April 10(2). Available from http:// www.sdpi.org/help/research_and_news_bulletin/may_june_bulletin/articles/ Proliferation%20of%20TV.html (Accessed 11 February 2010) 7. Lodhi, Maleeha, 2010. Who sets the political agenda? The News, February 16. Available from http://www.thenews.com.pk/editorial_detail.asp?id=224532 (Accessed 2 March 2010) 8. Mooraj, Anwer, 2007. A hundred years of radio. Daily Dawn, January 12. Available from http://www.asiamedia.ucla.edu/article.asp?parentid=61315 (Accessed 4 March 2010) 9. Mufti, Shahan, 2007. Musharraf’s Monster. Columbia Journalism Review, November/December 2007. Available from http://www.cjr.org/feature/ musharrafs_monster.php?page=3 (Accessed 2 March 2010) 10. Nayar, Kuldip, 2007. Assault on the judiciary. Daily Dawn, 24 March. Available from http://www.dawn.com/2007/03/24/op.htm#2 (Accessed 21 January 2010) 11. Page, D. and Crawley, W., 2005. The Transnational and the National: Changing Patterns of Cultural Influence in the South Asian TV Market. In: Chalaby, Jean K., ed. Transnational Television Worldwide. London and New York: I.B. Taurus, 128-153 12. Pasha, Shireen, 2000. A Historical Overview of Television in Pakistan. Paper presented at the 1st South Asia Media Conference: Towards a Free, Fair and Vibrant Media, June 1-2, 2000, Islamabad, Pakistan. Available from http://www. CRITERION – April/June 2010 177 Essay southasianmedia.net/conference/1st_conference/shireen_pasha.html (Accessed 27 March 2010) 13. Pawar, Yogesh, 1999. Indian Army the giant killer in Kargil, according to PTV. The Indian Express, 3 June. Available from http://www.indianexpress.com/res/ web/pIe/ie/daily/19990603/ige03061.html (Accessed 16 February 2010) 14. PEMRA Annual Report, 2009. PEMRA, 2009. Available from http://www.pemra. gov.pk/pdf/Annaul_Report.pdf (Accessed 4 March 2010) 15. Qizilbash, Talib, 2007. TV’s Prime Times. Monthly Newsline, January 2007. 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Available from http://www.guardian.co.uk/media/2007/jun/11/ mondaymediasection16 (Accessed 13 February 2010) 21. Wasim, Mohammad, 2006. The electronic media explosion. Dawn, 6 November. Available from http://www.dawn.com/2006/11/06/ed.html (Accessed 17 February 2010) 22. (Yasir, Muhammad 2007). Advertising industry witnessing busiest session. The News, 13 March. Available from http://www.thenews.com.pk/daily_detail. asp?id=46582 (Accessed 13 February 2010) 178 CRITERION – Volume 5 No.2 THE FUTURE OF SMALL SCALE ENTERPRISES Shahid Kardar* Until recently underdeveloped infrastructure like road networks, transportation, etc., had created sheltered local markets for small enterprises. The only competition they encountered was amongst each other from the overcrowding in such a market. Then there were government policies that created the perverse incentives to remain small and operate in an isolated manner. However, even in Pakistan the business environment and the ways of doing business have changed radically. Competition has heightened because of the government’s strategy to create a more competitive environment through deregulation and liberalization of the investment regime, significant dilution of sector-specific protection from competition and globalization, increasing integration of world economies, the formation of the WTO forcing member countries to scale down trade restrictions and rapid technological developments that have sharply reduced costs of transportation and communications, facilitating the free movement of goods, services, capital and knowledge. We are therefore seeing large formal sector entities and imported finished products steadily taking over some of the market share held earlier by small and medium sized enterprises, resulting in the reduced growth in their numbers, if not the closure of large numbers of small/ cottage-sized manufacturing, in recent years. In Pakistan SMEs face economic, technological, marketing and financial constraints. Reliable and efficient infrastructure like power, water, transport and communications are pre-requisites for efficient performance and competitive capability. The problems on account of * Shahid Kardar is a former Finance Minister of the Punjab Government. Essay infrastructural deficiencies are more acute in the case of SMEs since they are located in an unplanned, uncontrolled and dispersed manner. In particular, poor availability of reliable supply of electricity in the last two years has hit small scale industry disproportionately, since a large part of it neither has the financial wherewithal to acquire and operate generators and still remain competitive, despite the high incidence of GST and income tax evasion in this sector. The cumulative impact of these developments has been the drastic transformation of the economic environment in which small and medium sized enterprises function, leaving them with only the option to compete or perish. In these changed circumstances and improved road and communication networks large manufacturing companies have managed to extend their operations into rural areas, thereby opening up markets that, as argued above, were sheltered because of product and geographical segmentation of the market. These larger enterprises have also managed to enhance their market share with the closing down of a sizeable section of small scale industry as a consequence of crippling load shedding. Given the impact of globalization, better road networks providing access to large scale industry, lack of energy/power and the sharp deceleration in the rate of growth of large manufacturing enterprises to whom small industrial units either sell, or buy from, it is simply bizarre that government growth statistics claim that the small scale manufacturing sector grew by almost 30 percent in nominal rupee terms in 2008/09! Having discussed how the business environment has altered for the small scale industrial sector the rest of this article will focus on the challenges that they face from globalization. The challenges from globalization have been overwhelming, requiring forced adaptations in management techniques, automation and technology. Companies are switching from large fixed investments to computer controlled, flexible specialization, and changing their structures to enable quicker responses. In a highly competitive global market experiencing rapid changes in product mix, design and technology, fixed investments have not only become less attractive and more expensive but now also play a reduced role. Along with lower fixed costs of search for markets and customers and of advertising, the factors identified above have reduced 180 CRITERION – Volume 5 No.2 Essay the importance of economies of scale, increasing the scope and potential to exploit opportunities for product differentiation. The role of the standardized mass market is diminishing and that of exclusive niche markets for differentiated products growing. The new communications technology has also brought new areas, like services (computer software, consultancy), into the framework of external trade. Earlier services were not tradable across time and space. Now they can be exported via the internet and even stored electronically and used a long time after they have been produced. Now that services are tradable they can be included as a component in the comparative advantage of developing countries, export of labour-intensive services (programming, data entry, call centers, etc.). Computers can be used to automate low productivity tasks previously performed by office secretaries. The tradability of services across space and the shrinking importance of economies of scale are combining to provide developing countries the opportunity to sell their labour-intensive services and manufactures. At same time, the increasing internationalization of production, distribution and marketing is enabling the creation of global commodity chains (i.e. business networks of various sized units) from the stage of supply of raw materials to the production, marketing and retail of any product. These commodity chains are either producer-driven or buyerdrive. There are producer-driven commodity chains for capital and technology-intensive products like automobiles and electronics. The manufacturers of such products are the major driving force. Buyerdriven commodity chains are relevant for products that are design and marketing intensive but relatively labour intensive in their manufacturing stage, e.g., textile garments and leather products. In such cases retailers and brand merchandisers control the chains. The existence of such global commodity chains leaves industrial enterprises no choice but to become part of the chain, simply to access markets. Pakistani manufacturers, even those small sized, know they cannot operate in isolation any more. However, to become a part of these production and trade networks CRITERION – April/June 2010 181 Essay individual enterprises have to meet standards of price, quality and delivery schedules. All this requires upgrading of technology and development in organizational structures and information systems as increasing presence of multinationals opens up opportunities for subcontracting and outsourcing. The Chinese development experience demonstrates how each enterprise can grow at a faster pace by focusing on its core competency while subcontracting other work, instead of following the Pakistani model of doing everything in-house through vertical integration of production structures within an organization. Poor contract adherence norms in our social system and a weak and tedious judicial system for enforcing contracts are the key obstacles to the development of more productive efficient industrial and commercial structures based on core competencies. Admittedly, issues like environmental and labour standards under the WTO are adding to the pressure to develop technology, raising the cost of production. Therefore, the need for strategic alliances with others in the global commodity chains to gain access to technologies and markets. This will require a change in attitudes of government functionaries, involving an environment of trust in SMESs, while improving their access to decent quality infrastructure (road networks, railways, ports and utilities - like electricity, gas, water and drainage) and facilitating the development of global associations - the latter being their primary role in accelerating the process of growth of the sectors of industry and services. 182 CRITERION – Volume 5 No.2 Back Issues Available Price per issue is Rs. 200/- (Inclusive of postage) Payments can be made by cross cheque payable to Criterion and sent to House 16, Street 15, F-6/3, Islamabad Volume 1 Number 1 October-December 2006 The Contemporary Challenge to Global Peace and Security – S. Iftikhar Murshed Bilateral Negotiations on Kashmir: Unlearnt Lesson – A.G. Noorani Interview with Qazi Hussain Ahmad – Navid Zafar Islamic Polity and the Constitutional Process in Pakistan – Walid Iqbal Post-9/11 Foreign Policy of Pakistan – Shamshad Ahmad Pitfalls and Economic Prospects of Pakistan – Dr. A.R. Kemal Education in Pakistan: Some Reflections – Dr. Manzoor Ahmad Volume 2 Number 1 January-March 2007 My Vision for Pakistan – Shaukat Aziz Problems and Prospects of Peace and Development in the SAARC Region: A Perspective from Bangladesh – Mohammad Mohsin Baluchistan: Pakistan’s Existential Dilemma – Tanvir Ahmad Khan Search for a Viable Solution to the Jammu and Kashmir Problem – Anwar Kemal On Economics and Civil War & Terrorism – Syed Mansoob Murshed Emerging Monopolies in the Pakistani Media – Muzaffar Abbas Iran’s Nuclear Programme – Challenge and Response – Javid Hussain Volume 2 Number 2 April-June 2007 Causes of the Rebellion in Waziristan – Khalid Aziz Globalization: Its Lures and Discontents in the Muslim World – S.M. Naseem Madrassas: The Potential for Violence in Pakistan – Dr. Tariq Rahman The Death of Zia-ul-haq – Khalid Ahmed Pakistan and the Convention on the Elimination of all forms of Discrimination Against Women – Sabrina Khan Current Afghan Ground Realities – Rustam Shah Mohmand Role of Media in National Development in the 21st Century – Javed Jabbar The Kashmir Dispute: A Kashmiri Viewpoint – Abdul Hameed Karimi Volume 2 Number 3 July-September 2007 Using Trade as a Driver of Political Stability: Prospects in Indo-Pak Context – Moeed Yusuf Pakistan: On or Off? Examining the Future of US-Pakistan Relations in the War on Terror and Beyond – Farhana Ali The Parliamentary System in South Asia – A.G. Noorani Fundamentalism, Extremism and Islam – Dr. Anis Ahmad OIC – Retrospect a Prospects – Tayyab Sddiqui The Shia of Iraq and the South Asian Connection – Khaled Ahmed Turning on the Faucets of Thought – Anjum Niaz Volume 2 Number 4 October-December 2007 Political Uncertainty and Extremist Violence – Editorial The Politics of Economic Policy Reforms – Ishrat Hussain Kashmir Dispute: Is there a Viable Solution? – Zamir Akram The Roots of Sectarianism in Pakistan – Khaled Ahmed Need for a Pak-Afghan Treaty on Management of Joint Water – Khalid Aziz Defining Moments: The Political Implication of State Policy – Shahwar Junaid Iran, the United Stated and Regional Stability – Iqbal Ahmad Khan Some Reflections on Islam and Governance – Dr. Manzoor Ahmad Volume 3 Number 1 January-March 2008 The Broken Pledge – Editorial Pakistan Peoples Party and the War on Terror – Iqbal Ahmad Khan Pakistan – US Relations and the War on Terror – Zamir Akram Balti Tandoori and Chicken Tikka Masala: Culture as National Power – Toheed Ahmad Militancy in the Pashtun Belt; Perspective of a Peace Jirga – Khalid Aziz Meeting Pakistan’s Energy Needs – Mukhtar Ahmad Should Islam Modernize Itself? – Dr. Khalid Zaheer Stock Market Performance in Pakistan: A Scrutiny – Inayat A. Mangla Musharraf’s Kashmir Policy: An Appraisal – Tayyab Siddiqui Combating Terrorism through Film – Mushfiq Murshed Volume 3 Number2 April-June 2008 New Government, Old Problems – Editorial Governance Reforms in Pakistan – Ishrat Hussain A Liberal Islam in South Asia – A.G. Norani Muslim Radicalism, Western Concerns – Tanvir Ahmad Khan The Bomber Under the Burqa – Farhana Ali The Law of Aerial Bombardment and Civil Casualties: Kosovo and Afghanistan – Prof. Hayatullah Khan Security Alliances and Security Concerns: Pakistan and NATO – Shahwar Junaid Zulfiqar Ali Bhutto’s Legacy and the Rebuilding of Pakistan – Iqbal Ahmad Khan Of Tongues and Languages: The Tao of Translation – Toheed Ahmad Dimensions and Consequences of NATO Expansion to Eurasia: Reviewing Iran’s Security Environment – Arif Kemal Volume 3 Number 3 July-September 2008 Impeachment of President – Editorial Interview with Justice Khalil-ur-Rahman Ramday – Criterion Team Jinnah’s Worldview/Outlook on World Affairs – A.G. Noorani The MQM and Identity Politics in Pakistan – Niloufer Siddiqui Transformation of Al Qaeda – Khaled Ahmed Patterns of Regional Cooperation: Options for Pakistan – Shahwar Junaid Nations of Saints and Scholars: a Portrait of Ireland – Toheed Ahmad The Status of Women in Pakistan: A Ray of Hope – Talat Farooq FATA at the Crossroads – Ayaz Wazir Volume 3 Number 4 October-December 2008 Suicide Terrorism at the Islamabad Marriott – Editorial How to Develop the Afghan-Pakistan Tribal Belts – Shahid Javed Burki Jinnah & Muslims of India – A.G. Noorani The Haroon Report - A.G. Noorani Notes on Pakistan’s Trade and Industry Policy – Faizullah Khilji Some Thoughts on Democracy – Kazi Anwarul Masud Pakistan Muslim League: a Reality Check – Talat Farooq Pakistan: Religion, Terrorism and Democracy – K.S. Dhillon Volume 4 Number 1 January-March 2009 The Mumbai Attack – Editorial Liberation Tigers of Tamil Eelam (LTTE) – Syed Rifaat Hussain Jinnah & the Nizam of Hyderabad-A Tragic Liaison – A.G. Noorani A Critical View of the Political Developments in Pakistan – Kazi Anwarul Masud War and State Expansion: A Theoretical Framework – Talat Farooq Drugs, Counter Narcotics & State Building in Afghanistan – Nazia Hussain Economic Governance in Pakistan – Ishrat Husain The Muslim World in a Bind-Whither the Ummah? – Khalid Saleem Volume 4 Number 2 April-June 2009 Terrorism and Political Turmoil– Editorial Jihad vs. Terrorism – A.G. Noorani The USSR’s Last Gamble – The Why and Wherefore – Khalid Saleem Islam and Western Modernism: Is There a Way Forward? – Talat Farooq Mumbai Attacks and the North Arabian Sea – Muhammad Azam Khan Education: the Perennial Questions – Mahvesh Khan Navid Zafar – S. Iftikhar Murshed India – Emerging Global Power – Tayyab Siddiqui Minorities and Human Rights – Raja Tridiv Roy Volume 4 Number 3 July-September 2009 Pakistan and the Challenge of Extremism - Editorial Supreme Court of Pakistan: The Case of Missing Persons – Dr. Tariq Hassan. The Islamic State: A Mirage – A.G. Noorani Islam and Apostasy – S. Iftikhar Murshed Analysis and responses to the Global Food Crisis – Veena Jha Pakistan’s Economic Problems: Some Non-Conventional Therapies – Anwar Kemal The Inequitable Tax Structure – Shamim Ahmad The Transition to Democracy – Cyril Almeida A Deconstruction of Some Myths about the Pakhtun - Farhat Taj A Blueprint for Victory - Lt. Gen. (r)Javed Alam Khan Afghanistan: The Case for a UN Peace Keeping Force – Saeed Khalid Defeating Terror: Lessons from Recent History – Iqbal Ahmad Khan Volume 4 Number 4 Octobre-December 2009 Terrorism and the Blasphemy Laws of Pakistan – Editorial Notes on the Financial Crisis, Global – Faizullah Khilji Imbalances, Recovery and the East Asian Response: What We Know and What We Do Not Know The SINO-PAK Boundary Agreement – A.G. Noorani The Afghan Turmoil From 1747 to 2001 – S. Iftikhar Murshed Internal Security Challenges for Pakistan – Shahwar Junaid Promoting Political Parties and an Independent Legislature in Afghanistan – Niloufer Siddiqui Institutional Role Behind Civil-Military Equation – Muhammad Ismail Khan A Strategy to Fight Militancy? – Cyril Almeida Between Dreams and Realities – Iqbal Ahmad Khan Cooperative Mechanism to Save Kashmir Environment and Water Wars – Iftikhar Gilani The Price of ‘Sea Blindness’ – Muhammad Azam Khan Publisher S. Iftikhar Murshed Director Finance Ismet Murshed Editor-in-Chief S. Mushfiq Murshed Business Development Manager S. Rashed Manzur Executive Advisers S. Mashkoor Murshed Riaz Khokhar Aziz Ahmad Khan Faizullah Khilji Dr. Tariq Hassan Cover Design by Fariha Rashed Printers Lawyersown Press 28, Alfalah Askaria Plaza, Committee Chowk, Rawalpindi. Editors Talat Farooq (Executive) Iffat Rashed Contact Editor The Criterion House 16, Street 15, F-6/3, Islamabad Tel: +92-51-2822659 Fax: +92-51-2822689 www.criterionpk.com ‘Criterion’ is a quarterly magazine which aims at producing well researched articles for a discerning readership. The editorial board is neutral in its stance. The opinions expressed are those of the writers. Contributions are edited for reasons of style or clarity. Great care is taken that such editing does not affect the theme of the article or cramp its style. Quotations from the magazine can be made by any publisher as long as they are properly acknowledged. 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