Rolling out the Red Carpet

I welcome you to my blog and hope that you will like the tour. Please leave your footmarks with comments and feedback. This will through and through enhance my knowledge and profundity of thought. Enjoy! Asif J. Mir
Showing posts with label economic. Show all posts
Showing posts with label economic. Show all posts

Tuesday, February 10, 2009

Issues Face-to-face South Asia

Music of Earth is never dead. Symbolically, the truth of this statement is verified in the folk songs of Asian peoples. The oriental queens of melody, like Abida Perveen, Lata Mangeshkar, continue to sing of the agonies of a heart that refuses to submerge its feelings in the complexities of modern age. In the domain of art, literature, paintings, culture, the music of love, of beauty, of life and nature, of horrors of war, of agonies, of racial discrimination and frantic cries of the oppressed continue to permeate the fibers of man's creative art. Art is stated to be a defense against fate. The fate is, however, being made miserable by the forces that have made world affairs difficult to handle. In South Asia the plague spots have emerged in the environment of those areas that do not augur well for survival of a peaceful world ---a world where peace could and should win over forces of war and destruction.

The scientific inventions in all fields of human endeavor have undoubtedly brought comforts to our world, but not without its side effects. Peoples in South Asia live miserable lives full of chaos and tension. They feel insecure. They are not confident about regional peace. The issues that can possibly lead to war still remain potential threat to peace. The terrorism has emerged as a new enemy of humanity. The unprecedented arms race continues in the mainstream of unprecedented population growth. All resources are being consumed in buying destructive arms. But the people want food, shelter and jobs. They require medicines for their sick. They need books for their children. They yearn to live in an environment that is free of problems, free from exploitation and free from tension.

World affairs have come to such a pass that no prospect for peace seems to be visible even at the farthest end of horizon. The events such as Mumbai attacks in South Asia tend to damage our hope for world peace. Mind agitates to ask: Who would stem this tide of emerging chaos, confusion, and moving tension? Should we wait for a certain Messiah to bless life in our sagging spirits, which have become dead under the burden of inertia of idle hours?

The symptoms of fanaticism—mother of terrorism in all forms, exploitation, racial discrimination and a growing fear of insecurity being felt by the down trodden of South Asia, must put us all on alert. We must take some such steps as could crush snakes in grass that threaten peace.

The recession in world economy is casting its shadows on the economic developments in South Asia. The yellow lights of sunset of dollar augur well for this raw material producing region. They should, however, exercise their sovereignty over their exclusive right to fix prices for their raw material to such a level as could cover the expenses incurred on the imported machinery and equipment.

The World Bank and IMF have given free hand to plunder the material resources of this region. The horrible rate of population explosion has, however, got to be controlled without which the economic growth cannot be accelerated.

South Asia is bursting, as it seems, for the birth of a new economic cooperation—cooperation for economic dispensation that suits both the region and the developed world.

South Asian nations should turn away from centralized management and government controls and toward the incentives and rewards of the free market. They should invite their citizens to develop their talents and abilities to the fullest and provide jobs, create wealth, build social stability and foster faith in the future of all. The economic summits of the industrial democracies have already paid tribute to these principles.

The leaders of the South Asia should welcome the call for reform leading to greater reliance on their private sectors for economic growth. Overcoming hunger and economic stagnation requires policies that encourage regions own productivity and initiatives. Such a policy framework will make it easier for the rest of the world to help. The laws of economic incentives should not, nevertheless, discriminate between developed and developing countries. They should apply to all equally.

Much of the recent recovery in the world economy can be directly attributed to the growth of economic freedom. And it is this trend that offers such hope for the future. And yet this new hope faces a grave threat: the menace of trade barriers.

The Charter of the United Nations is based not only on avoiding the scourge war but also on establishing the conditions for friendly relations among nations and on solving problems of an economic, social, cultural or humanitarian character, for the development and preservation of peace.

Notwithstanding the foreboding of the prophets of doom, the efforts for peace, at all levels, by all men who matter at national affairs of every country, should be made. It is high time that all countries of the region should hearken to the call of their conscious—the demand for peace.

Breakthroughs in resolving regional conflicts in South Asia have been accompanied by an explosion of national and ethnic clashes; many of them related to the collapse of old centers of power. It is not surprising that there is a talk of both a new world order and a new world disorder. They are like two sides of the same coin. One side represents mankind's ideals and aspirations, the other its fears and hatreds.

Forces of integration and disintegration are shaping the region of South Asia simultaneously. Terrorism has peeped out as high powered force of disruption—a destabilization factor. Viewed from one angle, modern communications, technology, trade, and the appeal of political and economic freedom have the potential to create a global democratic capitalist society where international cooperation will be more successful than in the past.

The issue of human rights, as it has emerged out of the ideas of the enlightenment, still remains alien to certain South Asian countries. The Universal Declaration of Human Rights adopted by the United Nations is now more or less five decades old. Born out of the holocaust and the atrocities of World War II, the Declaration outlaws murder, torture, and political imprisonment. These steps reflect the lessons of the Second World War, which demonstrated that internal regimes were not just a domestic matter but could they become a menace to world peace. This Declaration was adopted in the final years of Stalinist rule, when mass repression was still institutionalized, seemed to many to be a hypocritical gesture. In many of the signatory countries this characterization remains true, but the human rights are being violated at alarmingly rate in this region. The law enforcing agencies, in this region, are committing rapes murders, torture and other atrocities. Kashmir is just one illustration.
A search for peaceful resolution to the Kashmir issue, however, should be the focus of international experts in the emerging discipline of interactive and diplomatic conflict resolution. Dialogues on conflict resolution, bridging theory and practice and striving for a plebiscite in dealing with this international conflict should receive top priority.

Water has become another great threat to peace. The Indus River Basin has been an area of conflict between India and Pakistan. Spanning 1,800 miles, the river and its tributaries together make up one of the largest irrigation canals in the world. The basin provides water to millions of people in northwestern India and Pakistan. Dams and canals built in order to provide hydropower and irrigation has dried up stretches of the Indus River. Water projects have further caused the displacement of people and have contributed to the destruction of the ecosystem in the Indus plain.

The enmity between India and Pakistan over water started early when India discontinued water supplies to Pakistan. Hard bargaining and the mediation of the World Bank led to the world acclaimed Indus Water Treaty in 1960. The treaty allocated the three Eastern Rivers — Ravi, Sutlej and Beas — to India, the three Western rivers — Indus, Jhelum and Chenab — to Pakistan.

A permanent commission known as the Indus Waters Commission was constituted to resolve the disputes between the parties. This treaty is globally respected that it has survived wars and periods of acute tension between the two hostile neighbors. However, the treaty has encountered hiccups wherein some contentious issues have cropped up.

If India and Pakistan take a political decision to restructure their relations, they will have to ensure that water serves as a flow to bring them together, rather than taking them further on the course of conflict.

Modern societies are moving away from the belief that there always will be conflict. There are now situations where we can marginalize conflict and where great changes can be made if parties can be led to perceive the causes of their disputes in new way.

In addition to regional disputes, the grave threat of terrorism also jeopardizes the hopes of peace. No cause, no grievance can justify it. Terrorism is heinous and intolerable. It is the crime of cowards who prey on the innocent, the defenseless and the helpless. The region should come up with modern approach to countering terrorism.

The maniacal arms race is dominating the economies of the poor South Asian countries. The bulk of their budgets go in buying or developing destructive arms and ignoring major issues. Days in and days out, voices are raised that arms control has become the dire need of the day.

In 455, the Eastern Roman Emperor, Marcian prohibited the export of all weapons and materials for making weapons, to the barbarians. The 1968 treaty on the Non-Proliferation of Nuclear Weapons (NPT) and the 1987 Missile Technology Control Regime (MTCR) bear more than a casual resemblance to Marcian' s policy enunciated fifteen hundred years earlier.

But then, as now, a mixture of politics and greed rendered control over the supply of weaponry an expedient of only temporary and partial value, at best. Lethal instruments are not important, but they acquire their significance from politics. The Huns and barbarians, no doubt, found the Roman supply blockade of weapons to be an inconvenience. Today the NPT and the MTCR similarly are inconveniences, but only inconvenient, to would-be acquirers of nuclear weapons and missiles.

But if politics subverts arms control, so does it facilitate arms control. Speaking in the House of Commons on July 13, 1934, Sir Winston Churchill claimed, "It is the greatest possible mistake to mix up disarmament with peace. When you have peace you will have disarmament.”

We can be hopeful about the world and the prospects for freedom We only need to look around to see the new technologies that may someday spare future generations from the nightmare of nuclear terror, or the growing ranks of democratic activists and freedom fighters, or the increasing movement toward free market economies, or the extent of worldwide concern about the rights of the individual in the face of brute state power.

Nonetheless, it is high time for the governments of South Asia to hate all tensions that create exploitation, war and bloodshed. They should promote peace, liberty, justice, democracy and human rights. However, when peace is denied, liberty is snatched, justice is taken away and democracy usurped, they should support all such efforts at all governmental and non-governmental levels that aim at restoring basic rights everywhere. They all should put in their best to ensure that the beautiful world of ours continues to pulsate with heartbeats of life, music and love.

The potential for a lasting peace is there. The potential for a destabilizing peace is there, too. If the leaders of the South Asia fail to face the problems head on, they have the ingenuity. They have the need. Only the question remains: Do they have the will? I think, they do. Asif J. Mir, Organizational Transformation

Sunday, February 8, 2009

Gawadar: A Strategic Partnership

Gwadar, as a seaport platform, was first recognized in 1964 yet it received serious attention in 2001 when China also condescendingly nodded yes to participate in the construction and development of the deep-sea port.

Gwadar, a fishing village of Baluchistan, is situated on the Arabian Sea coast, just 72 kilometers away from the Iranian border. Its proximity with the Persian Gulf and particularly Strait of Hormuz is way off 400 km that highlights its strategic significance. Strait of Hormuz is recognized as a principal water channel for worldwide oil transportation.

The role of China in Gwadar project is substantial and hypostatic. From the total cost of the project as US$1.16 billion, China has committed to contribute near enough $198 million for the first phase. This contribution is somewhere around four times over and above from what Pakistan is flinging around for this phase. This phase comprises construction of three multi-purpose ship berths. China has additionally drizzled $200 million for the construction of a highway networking Gwadar Port with Karachi. The financial aid of China has been supplemented by technical assistance that includes deployment of some 450 engineers and experts.

The second phase of Gawadar Project comprises nine more berths, an approach channel and storage terminals. China will also put up the money in this phase.

Once completed, both Pakistan and China visualize grandiose economic returns from Gwadar port. Project’s contribution to regional peace and stability will also be tremendous. First and foremost benefit, which Gwadar port will spur, to be gleaned by the under-developed Baluchistan. Augmented by infrastructure development in Baluchistan, the Gwadar project will transform it into an attractive investment hub.

Owing to its proximity with Strait of Hurmuz, through which 40% of the world's oil passes, Pakistan looks out for high economic returns from Gwadar port. This is going to be a key shipping point, bringing much-needed income for Pakistan. Once Pakistan completes the networking of its communication system with Afghanistan and CARs, this region will reverberate as a trade hub. Gwadar would provide landlocked Afghanistan and the Central Asian republics direct approach to the sea. These regional countries will thus be able to ship merchandise, oil and gas reserves to world markets through Gwadar port. Gwadar port may be designated as a free trade zone and an export-processing zone, simultaneously.

Gwadar provides China a transit terminal for crude oil imports from Iran and Africa to China’s Xinjiang region. Pakistan’s road and rail links to Afghanistan and CARs will also provide access to China to these markets.


Gwadar port, therefore, attaches great significance for both China and Pakistan. This will de-escalate the pressure on Karachi Port Trust in addition to lending a strategic advantage—India blocked Karachi in 1971 war causing negative bearings on Pakistan’s economy. In 1999 also when Kargil episode came about, India threatened to blockade Karachi port. Gwadar will make 725km far off from India and thus less vulnerable to Indian designs.

Owing to its propinquity to the Strait of Hormuz, Gwadar also promises many strategic prerogatives to China. Some 60% of China's energy supplies come from the Middle East. US that have significant presence in the region threaten these supplies.

From Gwadar, China can also monitor US naval activity in the Persian Gulf, as well as, Indian activity in the Arabian Sea and future US-India naval cooperation in the Indian Ocean.

India keeps in perspective China-Pakistan partnership at Gwadar and China's presence in the Arabian Sea apprehends fencing round by China from all sides. Iran also perceives the development of Gwadar port in its neighborhood as probable erosion of the impact of its ports, particularly Chabahar port that was built with India’s help.

Gwadar port symbolizes the story of two regional neighbors collectively, harmoniously and unanimously working to serve their corresponding strategic, economic and political considerations. Asif J. Mir, Organizational Transformation

Friday, January 30, 2009

Seeking new Pastures in Education

The state of education in Pakistan is depressing. Today we cannot compete even with third-rate countries in standard indicators of academic achievement. Weak curricula and discipline have guaranteed educational failure for tens of millions of our children. The nation should therefore look to itself and conclude that something must be done.

We are perhaps after increasing the number of educational institutions and ignoring the future of education, which is about the demise of the classroom-based teacher, and an information technology lead revolution in schools, colleges and universities.

For meeting our future economic needs, we must not lose sight of the fact that education is a process, not a commodity. It benefits the individual, and society as a whole, in all sorts of ways that are not necessarily quantifiable in terms of our national balance sheet.

Developed societies use teachers not as objects, but engines of education reform. Contrarily, our policymakers use them not as engines but tail cabins. Thus teachers are not involved in policy process for education. We need to see teachers as custodians of intellectual and cultural tradition, not servants of a government mission.

The report of the Pakistan Task Force on Improvement of Higher Education estimates that 18 million people are in the age between 17 to 23 years, eligible for tertiary education. Out of them, only 475,000 (or about 2.6%) are actually enrolled in higher education institutions. This proportion is among the lowest in the world: India (in 1990) had a tertiary enrolment ratio of 6.2%, while Iran (in 1994) had 12.7%. This is pathetic. It asks for direction and relevancy of higher education research.

Higher education in Turkey is worth talking about. The average annual growth rate of students in higher education in Turkey during the period 1980-85 was one of the highest in the world: 14.1% as compared to 7.8%in Canada, 5.0% in the UK, 1.4% in Italy, 0.2% in the US, -0.2% in Hungary, and -5.3% in Poland. The number of students enrolled in engineering is high: 18.33 %of the total enrollment as compared to 8.20 %in Italy, 7.90 %in Austria, and 3.29 %in France. In the area of higher education, can we seek some route from Turkey’s experience?

People need more education than ever before, and distance learning—connecting cable and classroom—offers a way to meet that need. Internet delivers course material to homes or offices. Discussions, assignments and exams are being done online. Some of these are courses offered by traditional universities, of which the University of Phoenix is the largest, some by accredited virtual universities with no on-campus instruction and some by unaccredited institutions. For many students, however, especially those with full-time jobs or those far from campuses, the savings in commuting and the flexibility to make their own schedules make the total cost less than that of alternatives.

The concept of virtual university is not a bad idea, which Pakistan must adopt at a large scale. It can distribute cheap Internet access and classroom content to modular learning kiosks in several thousand villages. Distributing several thousand simple, mass-produced kiosks might be less expensive than creating even one old-style university campus.

Pakistan has recently allocated resources greater than ever before. Nonetheless, it didn’t fully utilize even what paltry had been allocated earlier. Owing to intricate bureaucratic labyrinth drawing money is like pulling teeth. Consequently, the trend of spending in Pakistan is far less than the allocated money in all eight plans. There are around twenty-two steps to draw the allocated money. For survival in the new world, Pakistan has got to adopt new ways of governance.

South Korea offers an interesting paradigm in modern history. Most observers agree that it's spectacular progress in modernization and economic growth since the Korean War is largely attributed to the willingness of individuals to invest a large amount of resources in education.

Korea's liberation from Japan marked a turning point in the history of education. As the country underwent a transition from totalitarian rule to democracy, a primary concern was to provide everybody with equal educational opportunities. The period from 1945 to 1970 witnessed a dramatic expansion of education. In spite of the widespread destruction and economic suffering brought about by the Korean War (1950-1953), Korea succeeded in virtually eliminating illiteracy. Such a rapid expansion was naturally accompanied by problems, the most serious being deterioration in the quality of education. As the 1960s drew to a close, Korea's educators turned their attention to these problems and several projects were launched to improve the curricula and the methods of instruction

Although only primary school was compulsory in Korea, proportion of age-groups of children and young people enrolled in primary, secondary, and tertiary level schools were equivalent to those found in industrialized countries, including Japan. The percentage of students going on to optional middle school the same year was more than 99 percent. Approximately 34 percent, one of the world's highest rates of secondary-school graduates attended institutions of higher education in 1987, a rate similar to Japan's (about 30 percent) and exceeding Britain's (20 percent). The number of students in higher education had risen from 100,000 in 1960 to 1.3 million in 1987, and the proportion of college-age students in higher education institutions was second only to the United States.

Can Pakistan learn from the South Korean experience that explains the important role of education in its evolution from one of the world's poorest countries 50 years ago eating dogs to fuel the stomach, into a major economic success today?

A serious look at the state of the world raises a question regarding the thought process of Pakistan’s decision makers. Years of traditional education are no guarantee of a mature intellect. Entrenched mentalities need to change or institutions will continue to play the same old games and repeat the same old tunes. Schools of the future have an opportunity and responsibility to change the tune. Asif J. Mir Organizational Transformation

Thursday, January 29, 2009

The Disquieted Consumers

Pakistan is perhaps the exceptional country with absolute disregard for consumer rights and where all and sundry manipulate consumers including street vendors to monopolistic utility providers, doctors and even the government hospitals.

Unlike other developing countries where consumer rights are protected Pakistan is the lone country where they continue to go on unrecognized even in the Constitution.

The other day in a family occasion the chitchat transformed into a serious talk on the medical malpractices being followed equally by government and private hospitals as a heavenly overt act.

Mr. Mushtaq is a familiar name in our civil society for he runs an NGO, Insan Foundation. He went to Shaikh Zayed Hospital to donate blood to his bedridden friend. The compulsive test revealed Hepatitis positive. Naturally this disclosure sounded to him as it were a death knell. He spent many odd hours in preparing himself to die out. He consumed quiescent somber nights begging to Supreme Being for mercy. He even elucidated his wet-eyed missus how to manage family and business affairs after his probable crack of doom.

Some friend suggested to him to undergo alternative tests from other labs. Acting on these pious advices, he went to all other renowned labs. They declared negative. When he contacted Shaikh Zayed Hospital, the people concerned took it as a routine matter, as if nothing had happened. Mushtaq is now taking legal words of wisdom from his lawyers for further course of action. Although this was a spine-chilling story for me, I was made to understand that each patient visiting any hospital, government or private, has more bloodcurdling scenarios.

My friendly word in Mushtaq’s ear is not to follow any legal suit. He will thus undergo not nice experience either. For the Constitution of Pakistan does not protect the rights of the consumer, the case will be run under civil procedure and hence linger on infinitely.

Consumerism, and the mass culture that accompanies it, is a necessary evil of our society. All societies require some structuring principle to prevent unrestrained competition, malpractice and abuse of consumer rights. Pakistan seems unconcerned.

Consumption is the process by which goods and services are, at last, put to final use by people. Consumption is at the end of the line of economic activities that starts with an evaluation of available resources and proceeds through production of goods and services and distribution of goods and services (or the means to acquire them) among people and groups. At last, the goods and services come into use. The effect of this consumption, including depletion of resources and generation of waste as well as enhancement of human survival and flourishing, determines the resource base for the next round of economic activity.

The belief that consumer satisfaction is the ultimate economic goal and that the economy is fundamentally ruled by consumer desires is called consumer sovereignty.

There are, indeed, two quite different answers to the question of why consumers are important in economics. One is the traditional assumption, that final consumption is the ultimate purpose of all economic activity; production and distribution exist solely to increase the well being of consumers. In this view, consumers are the justification for economic activity and therefore for economic theory as well.

The other answer is that consumers keep the economy going by generating demand for goods and services. Without this demand, the supply side of the economy would expire: How long can producers keep producing if no one buys their goods? From this perspective, consumers as a source of demand are central to the mechanism that makes the economic system run.

Regarding the justification argument for consumer sovereignty, it should be remembered that although the end products of production derive their value solely from their contribution to the well-being of society and of individual consumers, the process of production is valuable for other reasons as well. People are more than just consumers. Consumption activities most directly address living standard (or lifestyle) goals, which have to do with satisfying basic needs and getting pleasure through the use of goods and services.

Regarding the view that consumer sovereignty is the fundamental mechanism that guides economies, we need to recall that consumers—as members of complex larger organizations including families, communities, corporations, and nations—are subject to many influences from social institutions. The idea of a “sovereign consumer” implies someone who independently makes decisions. But what if those decisions are—instead of being independent—heavily influenced by community norms and aggressive marketing by businesses? Who “rules” then? When we look at an economy from this perspective, we can see that consumer behavior is often cultivated as a means to the ends of producers, rather than the other way around. Asif J. Mir Organizational Transformation

Wednesday, January 28, 2009

The Demographic Trap

As we approach the future, new demographic criteria are needed. The world is dividing largely into countries where population growth is slow or nonexistent and where living conditions are improving and those where population growth is rapid and living conditions are deteriorating or in imminent danger of doing so. Pakistan is in second group in its sixth decade of rapid population growth. Not only has it failed to complete the demographic transition, but the deteriorating relationship between people and ecological support systems is lowering living standards.

Pakistan’s population now just around 160 million is projected to reach 330 million before it stops growing toward the middle of this century. It is more than double before stabilizing. This means combination of soil erosion and ill-conceived agricultural policies will lead to poverty increase. Population projections in Pakistan where life support systems are already trifling can only be described as projections of disaster.

The wide variations in projected population growth suggest that a demographically divided world is likely to become more deeply divided along economic lines as well. Unless this relationship between rapidly multiplying populations and their life-support systems can be stabilized, development policies, however imaginative, are likely to fail.

Throughout most of human history, the general increase in human numbers was accompanied by a slow expansion of the cropland area. As populations grew, land pressures built, the landless migrated to big cities. This is the cause of urbanization in Karachi, Lahore and other big cities. The cropland area might have grown but not nearly as fast as population. Thus the result is growing rural landlessness—lack of access to land either through ownership or tenancy. Though fueled by population growth, rural landlessness is exacerbated by the concentration of land ownership.

The growth in landlessness can be curbed or even reversed by initiating land reform. To check the growth in landlessness is to slow population growth through effective family planning. Land reform can reduce landlessness in the short run, but in the long run only population stabilization will work.

Numerous linkages exist between population growth and conflict, both within and among societies. Conflict arises when growing populations compete for a static or shrinking resource base. Inequitable distribution of resources—whether of income, land or water—complicates the relationship. Increased competition and conflict fray the social fabric that helps maintain social harmony.

For Pakistan, the global economic slowdown has come just as record numbers of young people are entering the job market. The specter of growing numbers of restless unemployed youngsters in the street does not convey an image of social tranquility. Unemployed youths roaming the streets of Pakistan where half the population under 18 years of age, with no prospect of job formation, hungry, and looking to irregular leaders to lead them in new and as yet unpredictable movements—there is little question that even more political explosions are on the immediate horizon.

In Pakistan the demographic trap is becoming the grim alternative to completing the demographic transition. The high fertility, low mortality stage cannot continue for long. By now Pakistan should have put together a combination of economic policies and family planning programs that reduce birth rates and sustain gains in living standards. If it failed further, continuing rapid population growth eventually overwhelm natural support systems, and environmental deterioration starts to reduce per capita food production and income.

Pakistan perhaps does not know when it is crossing the various biological thresholds that eventually lead to economic decline. One of the first economic indications that pressure on the land is becoming excessive is declining grain production per person. In earlier agricultural societies, population increases were simply matched by those in cultivated area. Grain output per person was stable. When population growth is rapid and there is no new land to plow, expanding the use of modern inputs fast enough to offset the effects of land degradation and to raise land productivity in tandem with population growth is not easy. It comes as no surprise that per capita grain production is declining.

When this happens it is a matter of time until the government translates into a decline in per capita income, and into the need for food imports. Rising food imports contribute to growing external debt. If external debt rises fast enough, it will eventually cross a debt-servicing threshold, beyond which Pakistan can no longer pay all the interest. At this point lenders insist that the unpaid interest be added to the principal, expanding the debt further.

The demographic trap is not easily recognized because it involves the interaction of population, environmental, and economic trends, which are monitored by various ministries and departments. And managers frequently fail to distinguish between triggering events and underlying instability in the population-environment relationship.

Lacking a ground in ecology and an understanding of carrying capacity, all too many economic planners and population policymakers have failed to distinguish between the need to slow population growth and the need to halt it. If societal demands are far below the sustainable yield of natural systems, then slowing population growth is sufficient. But when they have passed these thresholds, the failure to halt population growth leads to deterioration of support systems.

Other countries are moving into uncharted territory in the population-environment-resources relationship. Pakistan cannot remain much longer in the middle stage of the demographic transition. Either it must forge ahead with all the energies at its disposal, perhaps even on an emergency basis, to slow and halt population growth, or it will slide into the demographic trap. At present the government is faced with the monumental task of trying to reduce birth rates as living conditions deteriorate a challenge that may require some new approaches. If it failed, economic deterioration could eventually lead to social disintegration of the sort that undermined earlier civilizations when population demands became unsustainable. (click here to view professional professional profile of Asif J. Mir)Organizational Transformation

Friday, January 23, 2009

Women in Leadership Roles and Nay-sayers

This is an era for women in Pakistan to create history. It started with Mohtarma Benazir Bhutto to not just become the first women head of government of Pakistan but also the first woman prime minister of Muslim World. Treading on the heels of Benazir Bhutto, six more Muslim head of states were produced comprising Mame Madior Boye of Senegal, Tansu Ciller of Turkey, Kaqusha Jashari of Kosovo, Megawati Sukarnoputri of Indonesia and Khaleda Zia and Sheikh Hasina Wajed of Bangladesh.

Then we heard about Dr Shamshad Akhter becoming the first woman governor of State Bank of Pakistan. Yet another history was written when Pakistan’s premier business association, The Overseas Chamber of Commerce & Industry, appointed its first ever women CEO Unjela Siddiqi, followed by the appointment of Jehan Ara, the first paid CEO of Pakistan Software Houses Association. Last but not the least, Mrs. Nasrin Haq has become the first woman to head Karachi Port Trust as Chairperson. The story about installing women in high-powered decision making positions thus goes on and on. It appears as if Pakistan has become conscious of the power of women and hence bringing the female talent to the fore to head various institutions of significance.

Although the recent history of most Muslim countries points to a poor track record in engaging women as productive contributors to their economic and social prosperity, some recent trends point to a positive shift. Some leading women executives serve as role models and inspiration including Guler Sabanci, Chairman, Sabanci Holding (Turkey), Nahed Taher, Founder and Chief Executive, Maha Al-Ghunaim, Founder, Vice Chairman and Managing Director, Global Investment House (Kuwait), Lubna Olayan, Chief Executive, Olayan Financing (Saudi Arabia.), Sheikha Lubna Al Qasimi, UAE Minister of Economy and Planning, and Chief Executive Officer of Tejari (an online B2B marketplace).

Pakistan is widely recognized that although female participation in the paid labor force is increasing, it is still at a low level. According to Federal Bureau of Statistics, Pakistan’s labor force survey, only 0.3% employers are female.

Notwithstanding the huge women population in Pakistan with a flagrantly paltry female workforce, we are indeed changing—from the notion that women got married, had children and stayed home. Still we have a long way to go to ensure the best talent makes it into leadership positions. Women in leadership roles continue to be an important topic for top professionals and women themselves. Not just a matter of fairness - it makes good business sense to retain and promote the best talent, irrespective of gender.

Through and through in a male dominated society like Pakistan, for women acquiring leadership roles, is like a hard nut to crack. Such women, who acquire top slots in organizations, have to confront a perfervid repugnance from male peers. Despite Mrs. Nasrin Haq represents an acronym of extraordinary academic credentials and well practiced knowledge in road, rail and sea transportation, a campaign of vilification and contempt has been launched against her.

Verily, Nasrin Haq must be confident in her leadership abilities, not letting nay-sayers stand in her way. She can take the lead from Fran Keeth, the CEO of Shell Chemical, who faced incredible resistance from executive officers at her company, but she just kept doing the best job she could, and doing it with a smile. It took her some doing to get herself accepted and earn her spurs. She eventually became accepted.

Women leadership can also learn from Carleton Fiorina who was chairperson of HP—world’s second-largest computer maker. With close to $50 billion in annual revenue, it's one of the 20 largest companies in the world. Carleton Fiorina was crowned the most powerful woman in American business by Fortune magazine. She also played a critical role in the spin-off of Lucent Technologies Inc. in 1996. Taking over at HP in 1999, she was thought by all to be the one who would rescue the faltering computer giant—and she gracefully did it.

Nasrin Haq needs to break down the glass ceiling right through using leadership skills that have taken her to the very top of the KPT. Indeed women such as Nasrin Haq have beaten the odds by delivering above average results, their industry knowledge and superior leadership abilities.

The critics of Nasrin Haq should get to know that full participation of women in decision-making processes has been recognized as a human right in international human rights conventions and global policy frameworks and as critical for the achievement of gender equality.

The outcome of the Fourth World Conference on Women in 1995, the Beijing Platform for Action, considered the inequality between men and women in the sharing of power and decision-making at all levels as one of the critical areas of concern for the empowerment of women. It also noted that women's equal participation in decision-making is not only a precondition for justice or democracy but is also a necessary condition for ensuring that women's interests and rights are taken into account. Without the active participation of women and the incorporation of gender perspectives at all levels of decision-making, the goals of equality, development and peace cannot be achieved.

In the 2005 World Summit, Member States reaffirmed that the full and effective implementation of the goals and objectives of the Beijing Declaration and Platform for Action was an essential contribution to achieving the internationally agreed development goals, including the Millennium Development Goals. To put this commitment into practice will require that women have equal opportunities to participate fully in all decision-making processes.

The dilemmas faced by women in terms of assuming leadership roles, climbing the corporate ladder and contributing to decision-making processes in the organization are, anchored in the socio-cultural context as well as in the maps and definitions they carry from the past.

Despite their comparable qualifications, however, female managers are not entering the highest leadership positions at the same rate as their male counterparts. At the start of the 1990s, only five of the Fortune 500 industrial and service companies had female CEOs, and of the highest paid officers and directors of the 1,300 largest industrial and service companies, women made up less than 0.5%. The numbers have improved, but another survey found only 11% of Fortune 500 board members were women. These statistics raise the question of why women have encountered limited access to senior leadership roles. Perceptions, rather than reality, may be the answer.

Just as successful managers are defined in masculine terms, perceived leader effectiveness is also associated with male characteristics. Masculinity in male and female leaders is perceived by all subordinates as effective, whereas female leaders displaying feminine characteristics are not seen as effective. Especially in cases where they occupy highly male-dominated leadership roles, women are vulnerable to “prejudiced evaluations and lowered effectiveness.” In leadership positions that are rarely held by women, and that perhaps as a result become strongly associated with male characteristics, women may need to display masculine characteristics to be seen as effective. In fact, current advice to women adopts this strategy. Women need to be assertive. Men in the business world often misjudge women's behavior style ... as an in ability to lead.

We recognize that women leaders in the public sector face the same challenges as their counterparts in the private sector in terms of breaking through the class ceiling. The limited career opportunities is an issue, the constraint of traditional gender roles is another.

In keeping with the quote of Dr. Shamshad Akhter, “Even in traditional societies, the widening of women’s horizons and the promotion of their confidence and social awareness can facilitate women’s involvement in community affairs and even in the leadership of their communities.” She also said, “Don’t just promote women for the sake of promoting women. Promote competent professionals. By design you will promote women who have contributed substantially to the good work.” Dr. Shamshad Akhter has always moved up through merit and being a female did not really help her to get to the giddy heights of glory, for she probably deserved them by virtue of her commitment and hard work.

The challenges to increasing female participation in mainstream economic activity, and the creation of leadership within women entrepreneurs, are manifold. These challenges range from social taboos; conservative lobbies; lack of access to education, information, and finance to discriminatory behaviors by male counterparts, severely inhibiting the ability of women to develop leadership skills and to participate in the policymaking process. Yet another complexity is the non-existent gender focused institutions such as women chambers, which generally act as facilitators in networking, mentorship, and learning opportunities.

The corporate sector of Pakistan stands to benefit from these trends in increasing and improving their productivity as well as applying diversity in their capabilities. In more conservative societies, entrepreneurs stand to gain by engaging women in a culturally sensitive way and leveraging technologies such as the internet to enhance their participation in the economy and society at large.

The Government also needs to recognize the key role women can play in communities and society at large. We want to see more women in key decision-making positions. This is crucial if we are to ensure we have policies that deliver for women. (www.asifjmir.com)

Wednesday, January 14, 2009

"We the people . . . . ."

From the lost Constitution of 1973 to its current structure, all incumbents have been cutting holes with amendments to fortify their power. No effort has ever been made to consolidate the power of people. Never has there been any attempt to include the parts that protect consumer rights. Thus and so, the Constitution of Pakistan does not guard the consumer rights of the citizens of Pakistan. Implicitly, first come the rights of the citizens, and then comes the Constitution. If a constitution contains adequate procedures to protect rights, it can be legitimate even if it was not consented to by everyone; and one that lacks adequate procedures to protect human rights is unfair even if it was consented to by a majority.

Future is on our head with the concept of globalization that is changing the focus of governance. Instead of territory, human rights are now getting significance. And consumer rights happen to be the component of larger human rights program.

Consumer means people. By barely defining consumers as customers, we bar millions of citizens who due to lacking resources can’t buy. So consumers are citizens. Moreover, everybody has to consume to survive—consumption is a natural process for human survival. Thus, everyone is a consumer by default.

Consumers are the largest economic group in any country’s economy, affecting and affected by almost every public and private economic decision. But they are also the only important group that is not effectively organized, whose views are not heard. Therefore, the Government, the highest spokesman for all people, has a special obligation to the consumer’s needs.

The consumer rights have a universal significance as they symbolize the aspirations of the poor and disadvantaged. On this basis, the United Nations, in April 1985, adopted its Guidelines for Consumer Protection. They include: 1) the protection of consumers from hazards to their health and safety; 2) the promotion and protection of the economic interests of consumers; 3) access of consumers to adequate information to enable them to make informed choices according to individual wishes and needs; 4) consumer education on the environmental, social and economic impacts of consumer choice; 5) availability of effective consumer redress; and 6) freedom to form consumer and other relevant groups and the opportunity to present their views in decision-making processes affecting them.

No legislator, no political scientist, no intellectual, and no so-called constitutional expert ever provided a new, realistic and philosophically rigorous theory of constitutional legitimacy that justifies both translating the Constitution according to the needs of people and, where that need is vague or open-ended, construing it so as to better protect the rights of the people. Consequently, even the general principles defined by the UN could not be realized.

The consumer protection issues are seldom included in the agendas of utility service providers, most of which are in public sector. Consequently, the rights of poor Pakistanis are being trampled even by public sector organizations like WAPDA, Sui Gas, and PTCL, to mention a few. Little attention is given to consumer protection policies, and consumer friendly market structures, incentive regulation, tariff regimes, deregulation and competition.

Consumer issues can be chronicled even before partition under the colonial rule that established monopoly regimes, when consumers had no voice at all. Same structure was adopted after independence and it continues on and on disregarding the advent of competition, which has given rise to greater concern about consumer welfare. Hence the consumers in Pakistan today feel that they remain to be excluded from the decision-making process. They believe that they are still far off from the regulatory process that provides them no opportunity to influence or even overturn critical decisions. And so consumer perceptions and opinions about the marketplace scenario are depressing.

In Pakistan lack of choice among alternative service providers due to a single or dominant operator is making consumers vulnerable. They have no right, whatsoever, for intervention where dominant operators are protected by the government, where there is no quality of service performance requirements and where dominant operators are authorized to set tariffs without rationale and beyond reach of the majority.

An informed consumer is an empowered consumer. Regulators should make every effort to empower consumers. Specific educational mass-media campaigns are needed to educate consumers about their rights. School textbooks are another useful but neglected channel to educate consumers about their rights. Education is a powerful, albeit, long-term action to shape people’s attitudes about enforcing their rights as consumers.

Activities that regulators should consider in setting up the consumer agenda include: establishing customer services, creating mass awareness of consumer rights, enforcing those rights, creating nationwide offices to address consumer issues and offering dispute resolution systems.

India is getting a global reputation for the rapid development of its consumer movement. Today that is perhaps the only country in the world, which has exclusive courts for consumer redressal of grievances that too within 90 to 150 days. One of the greatest achievements of the Indian consumer movement is the enactment of the dynamic consumer law in 1986: COPRA. Coming 39 years after Independence, it has acknowledged the rampant consumer abuses, including those of the government owned public utilities like telephones, transport, power etc.

Pakistan does not have a cohesive national consumer policy. Neither it has a national consumer protection law. The Federal List in the Constitution does not include the issue of consumer protection. Perceptibly, the provinces also don’t have consumer protection laws. The federal capital promulgated a consumer protection law in 1995 but was never implemented. Since the State has not provided any protection mechanism that consumers could use to protect them, hence they feel very helpless. Controversial amendments or litigious issues aside, our legislators ought to think about people and at least give a national consumer protection law. (Click Asif J. Mir to view his professional profile)