Desperate need for apt policy planning

The stump oratory must have reached people about sharpshooter or inept public managers’ actions, GDP growth rate is declining; foreign exchange reserves are depleting fast, record downfall in exports and of foreign investment. Ipso facto, no previous government in past decades confronted issues like these when financial stability has become a forgotten song, it has miserably. Yes, the government has completely failed in efficient service delivery to the poor. Consequently, it has contributed sweet nothing in reducing poverty and hunger that goes on to sustain stark national inequalities in wealth, assets, incomes and opportunities.

The Asian Development Bank estimates that 40 million people in Pakistan live below the poverty line. In its stated bid to ensure national security, Pakistan is spending more on arms and defense, and less on social security and protection, public distribution systems and welfare programs.

In the direst situations suicide rates among the poor are on the rise. Ironically, while national level defaulters on debt benefit from enhanced facilities to restructure debt and continue borrowing, the overwhelming burden of national debt is borne by the poor.

Lacking job opportunities in rural areas cause migration to urban cities. This takes the form of low quality jobs in the informal economy, or in the case of women and girls, prostitution or domestic service. Migration under conditions of economic stress exacerbates food insecurity. Owing to weak economic and social profile of the country, the adult population could not be gainfully employed, resulting in an 8.3 per cent current unemployment rate (more than 10 per cent in urban areas), plus substantial under-employment. Today, of the current workforce of some 48.40 million- as many as 8 million- are unemployed.

More and more workers, especially women, are being forced from the relatively protected formal sector to the unprotected informal sector. This is accompanied by concentration of assets and resources in the hands of the rich and newly prosperous, who have been able to take advantage of the economic opportunities offered by modernization and globalization.

Graft and corruption in government are a significant cause of continuing poverty and hunger. Despite NAB being there, corruption is on the increase and being accentuated by the companies of the developed countries through their underhand dealings with the national officials.

Sitting in luxurious offices the economic managers of Pakistan juggle with statistics rather than conducting surveys. This is often done to draw statistics acceptable to donors or financial institutions. To duck the WB in 2001, for instance, it drafted the poverty reduction strategy, just about the time when the WB initiated a new line of credit (PRGF) for countries that were equipped with such a strategy.

The increase in the tax-GDP ratio is apparently marginal but in the numerical terms, bulk of the burden has been shifted from direct to the indirect taxes and the share of the regressive sales tax being recovered at the highest rate over the globe has sharply gone up. It is affecting the whole population. The sales tax formed over 44 per cent of the total tax collection during the fiscal 2002-03. The result is that quantum of sales tax has grown from 27.11 in 1998-99 to 42.33 per cent during July 2004-January, 2005.

The Oil Companies' Advisory Committee fixes the prices of various products on fortnightly basis. It is claimed that the committee fixes the prices in a very transparent manner keeping in view the international prices. But the transparent formula was never made public either by the government or the committee. Oil companies have thus been licensed to plunder the poor.

Pakistan currently has about 74 percent of the population living on $1 per day and 86 percent living on $2 per day, implying that one out of every three households going to sleep hungry every day.

The narrow focus on economic growth has not only failed to eliminate poverty, it has also resulted in policies that have created new forms of, or aggravated existing conditions of poverty and hunger. Shaukat Aziz institutionalized policies that opened up economy and shrunk government’s direct responsibility for redistribution of assets and benefits. Public support and subsidies were systematically torn down, and market based price systems were made the primary determinant of allocation and distribution. With privatization and withdrawal of government subsidies for domestic industry, a significant proportion of the work force was shunted into the informal sector. By and large, previous government achieved economic growth at the cost of well being of workers, small-scale agricultural producers and consumers. The greatest beneficiaries of PM Shaukat Aziz’ adjustment programs were the rich, large private producers, distributors, traders, and MNCs.

Poverty and hunger are violations of human rights. They result in exclusion and feelings of hopelessness and helplessness. The human rights of people to housing, water, and sanitation—guaranteed under international law and commitments of development targets made at global summits, including the Millennium Summit and the World Summit on Sustainable Development—drag on to erode. By ratifying a number of international human rights instruments, such as, the International Covenant on Economic, Social and Cultural Rights, Pakistan has voluntarily accepted the obligations to progressively realize human rights to food, health, adequate housing, water and sanitation, which are essential for the well being of its citizens.

Pakistan needs policies that protect the rights of people to water, land, forests, other natural resources, biodiversity and indigenous knowledge. Policies are also needed that ensure people’s access to a services essential to their development especially among the poor and historically marginalized, this includes education, social security, healthcare and information, etc. Access must be equitable and the quality of services must not vary according to socio-economic or gender backgrounds. (www.asifjmir.com)