Globalization

The world of today is barely recognizable when compared with the world, which faced our parents when Pakistan was created. And it is a radically different world to the one that challenged our grandparents' generation when they were young adults. Of course, change has always been with us, but the difference today is that the pace of global change is quickening.

Globalization is shaping and reshaping today's world and the world of tomorrow - your world - in extraordinary and far-reaching ways.

The defining feature of globalization is that firms, social networks, political structures and information flows are increasingly being organized along trans-boundary lines with the emphasis on the exercise being undertaken rather than on traditional boundaries. What globalization is teaching us then is that the greatest security we have comes from excellence, innovation and adaptability. It comes from the dynamic ability to deploy and expand our skills and talents as individuals and societies. It comes from knowing that we have the strength and resources to meet any challenges that come our way - not always by ourselves, but often with the help and support of our friends and neighbors.

The real choice for most other people in the world is the extent to which we participate in a wealth-generating process of global proportions, and harness its potential, not whether we participate. That is why the future will belong to those who embrace globalization and are willing to prepare for it. And education is the key to preparing for our shared, global future.

The world of tomorrow will require people with a genuine depth and breadth of talents - not just the formal skills found in the engineering, scientific, economic, legal, medical or other professions - vital though they are - but many other skills as well. The global information and telecommunications revolution is an excellent example of what I am talking about.

New forms of communications technology, emerging by the month, are ensuring that no corner of the world will be untouched by globalization. The notion of a purely domestic market is becoming obsolete with the spreading use of the Internet. Once a product or service is available on the Internet, it can be sold to the world at large.

Recent estimates suggest that the value of goods and services transacted on the Internet will grow from its current value. And before too long, it will be possible to access the Internet not just in English but in the user's own language.

The fast growing services sector is another dynamic part of the global economy, which offers unique challenges and opportunities for tomorrow's professionals. To succeed in this demanding sector, you will need to understand and work in a range of different cultures, languages and legal and financial systems. You will need to think and act in region-wide and global terms.

That is why tomorrow's world will require people who are willing to embrace the world around them and all that it offers. It will require people who can shape global and regional forces to the advantage of their societies and enterprises, and not be cowered and defeated by them.

Above all, the 21st century is the century of the knowledge worker. Universities are sources of the new knowledge, which will be needed by tomorrow's leaders, and are key repositories of the wisdom and insight we have garnered to date.

If the process of global enrichment is to continue unabated, universities and other applied institutions will need to drive the development of global knowledge workers. Pakistan needs to make a strong policy commitment to promoting education, not just for Pakistanis but also for people from throughout the Asia, Africa and beyond, in preparation for the new era.

I know that the new skills and insights people have gained will help them build their own futures with pride, and the futures of our countries with equal pride. But the vital contribution people make to the success and stability of Pakistan will do more than enhance the lives of their friends and families. It will lay the foundations for the well-being and security of people throughout the Asia.

I believe that Pakistan needs to do something to recognize this important link between knowledge and the development of better and more effective relations between countries. We need to harness the intellectual `horse power' of the Pakistan’s university system. We need to place this unique educational asset in the service of our national interests more systematically and productively.

Pakistan has a proud history of educating people. Today we are confronted with the challenge of preparing the worthy custodians of that tradition.

According to UNESCO's global estimate, 1.35 million tertiary students study outside their home countries. And Pakistan hosts a number not worth considering of these students on a per capita basis than other Asian countries. This is a clear indication not just of the quality of our institutions but of the little primacy we attach to education and particularly our national identity established by the West after the 9/11. Lucklessly this identity has been tarnished mostly by the power that considers Pakistan as the major ally in its war against terrorism. Pakistan must do something to scratch out this image.

Pakistan has great institutions with remarkable traditions of excellence in higher learning and personal development. Nobel Laureate Dr Abdul Salam symbolizes this tradition.

A successful global future requires a global education, and it requires deep respect for the cultures, values and experiences of others. It also requires advanced studies in reading the futures, upcoming trends and above all corporate and administrative creativity. They need to tailor courses for our future policy planners to study creativity and innovation.

Being a developing country Pakistan’s industry is emerging and in a buildup stage. Hence informed decision-making in investment is significantly needed. It should use commercial intelligence as a tool to have a nodding acquaintance with future trends and sneak out of stereotyped and monotonous thinking. Asif J. Mir, Organizational Transformation

English in 21st Century

The future of today’s global language, English, is more complex and less certain. It will retain its excellence in the 21st century and is unlikely to be displaced as the world’s most important language. Its usage is an intricate system in which many factors act together in ways that are not easily foreseeable. Just the same, recent progress in shaping the behavior of complex systems, like weather, could help us understand the patterns that may emerge in the globalization of English.

From north and south and east and west, there are more than 1,400 million people living in countries where English has official status. One out of five of the world’s population speaks English at some level of competence. Demand from the other four fifths is bumping up. English is the main language of books, newspapers, airports and air-traffic control, international business and academic conferences, science technology, diplomacy, sport, international competitions, advertising and pop music.

Almost all those who are professionally associated with the English language worldwide acknowledge that there is no imminent danger to the English language, or to its global attractiveness.

Yet with the emergence of new world order and global transition, the next 20 years or so will be a critical time for the English language and for those who hang upon it. The structures of usage and public attitudes to English will have long-term consequences for its future.

The future of English will be more complex, more demanding of understanding and more challenging for the position of native-speaking countries than has up till now been thought.

The global popularity of English is in no immediate danger, but that it would be unwise to see in the mind’s eye that its predominant position as a world language will not be threatened in some world regions for use as the economic, demographic and political shape of the world as it transforms.

The future of English will however be a complex and plural one. The language will grow in usage and variety; yet simultaneously diminish in relative global importance. To put it in economic terms, the size of the global market for the English language may increase in absolute terms, but its market share will probably decline.

Additional reasons that have resulted the reduced fervor threaten trends of increased usage of English. The growing adoption of English as a second language, where it takes on local forms, is leading to disintegration and multiplicity. No longer will be the case, if it ever was, that English unifies all who speak it.

The future is going to be a bilingual one, in which a growing ratio of the world’s population will be eloquent speakers of more than one language. There is little to help us understand what will happen to English when the majority of the people and institutions who use it do so as a second language.

Native speakers may feel that the language belongs to them, but it will actually be those who speak English as a second language or foreign language who will determine its world future—the fact that 19th century futurologists failed to foresee that the growth in second and foreign language speakers would be a much more important phenomenon.

As the number of people using English grows, second language speakers will be drawn towards the inner circle of first language speakers and foreign language speakers to the outer circle of second language speakers. All through this status migration, attitudes and needs in respect of the language will change; the English language will diversify and other countries will emerge to compete with the older, native-speaking countries in both the English language-teaching industry and in the global market for cultural resources and intellectual property in English.

The future and globalization symbolizes a significant discontinuity with previous periods. The Internet and related information technologies, for example, may upset the traditional patterns of communication upon which institutional and national cultures have been put together.

In four key sectors, the present dominance of English can be expected to give way to a wider mix of languages: first, the global audio-visual market and especially satellite TV; second, the Internet and computer-based communications including language related and document handling software; third, technology transfer and associated processes in economic globalization; fourth, foreign language learning especially in developing countries where growing regional trade may make other languages of growing economic magnitude.

Computer technology has changed the way people act together both locally and globally. At the present we are at the core of personal and group communications. The Internet will remain the flotilla leader of Global English and it will be a quite different language from what it is today. Nevertheless, there seems to be developing a new, global English-speaking market in the knowledge-intensive industries.

At this point in time there is a significant increase in the numbers of people learning and using English, but a closer examination of driving forces suggests that the long term growth of the learning of English is less secure than it appears to be.

Overtly and covertly, the use of English language is most ubiquitous amongst professional groups and middle class families are most likely to embrace English as the language of the home.

By and by, no single language will occupy the monopolistic position in the 21st century, which English has—almost—achieved by the end of the 20th century. As communications infrastructure ameliorates and relative costs plunge, more telephone conversations around the world will be held in languages other than English.

English must keep up a range of corporate roles and identities and must be usable for both team working and service interactions. Not surprisingly, demands on an employee’s competence in English will rise.

The ELT industry needs to respond to changing international social values—to ensure that the reputation of English language is enhanced rather than diminished. Asif J. Mir, Organizational Transformation

21st Century Business Leaders

In comparing the desired characteristics of future business leaders with the desired characteristics of the past business leaders there are both similarities and differences. Many qualities of effective leadership are seen as being important for yesterday, today and tomorrow. Characteristics like vision, integrity, focus on results and ensuring customer satisfaction which are still alien to Pakistan, are factors that were critical in the past and will be so in the future.

21st Century leaders will be thinking globally, appreciating cultural diversity, demonstrating technological savvy, building partnerships and sharing leadership.

Globalization is a trend that will have a major impact on the leader of the future. In the past, even major companies could focus on their own country or, at most, their own region. Those days are soon going to be over. The trend toward globally connected markets is likely to become even stronger in the future. Not only would leaders need to understand the economic implications of globalization; they will also have to understand the legal and political implications.

Two factors that are seen as making global thinking a key variable for the future are the dramatic projected increases in global trade and integrated global technology. There will be difficulty buying something made in one country because it will almost be impossible to determine what percent of the product is actually made in that country. Future leader will need to spend time in multiple countries to better understand how multi-country trade could help their organizations achieve a competitive advantage. In an environment where competitive pressures are rapidly increasing, producers will have to learn how to manage global production, marketing and sales teams.

New technology is another factor that is going to make global thinking a requirement for future leader. With the use of new technology it will be feasible to export even office and "white collar" work around the world. Computer programmers in Pakistan will communicate with designers in Italy to help develop products that will be manufactured in Indonesia and sold in Brazil. Leaders who are stuck in local thinking will be hard-pressed to compete in a global marketplace. Leaders who can make globalization work in their organization's favor will have a huge competitive advantage.

As the importance of globalization increases, future leaders will also need to appreciate cultural diversity. They will have to understand not only the economic and legal differences, but also the social and behavioral differences that are part of working around the world. Respect for differences in people is one of the most important qualities of a successful global leader. Developing an understanding of other cultures will not be just an obligation, it will be considered as an opportunity.

The appreciation of cultural diversity will need to include both the "big things" and "small things" that make up a unique culture. For example, few Europeans or Americans who work in the Middle East have taken the time to read (much less understand) the Qur’an.

The ability to motivate people in different cultures would become increasingly important. Motivational strategies that are effective in one culture may actually be offensive in another culture. Leaders who can effectively understand, appreciate and motivate colleagues in multiple cultures will become an increasingly valued resource in the future.

Technological savvy will be a key competency for the global leader of the future. It means that every future leader will be a gifted technician or a computer programmer. It also means that leaders will need to understand how the intelligent use of new technology can help their organizations; recruit, develop and maintain a network of technically competent people; know how to make and manage investments in new technology and be positive role models in leading the use of new technology.

New technology would become a critical variable that will directly impact organization's core business. I however feel pity for Pakistani executives who stubbornly think that they are either "too busy" or "too important" to learn the power of new tools. The organizations that have technologically savvy leaders will have a competitive advantage over organizations that did not.

Many of the future leaders will see the management of knowledge workers to be a key factor in their success. Knowledge workers are people who know more about what they are doing that their managers do.

In dealing with knowledge workers old models of leadership will not work. Telling people what to do and how to do it becomes ridiculous. The leader will be more in a mode of asking for input and sharing information. Knowledge workers of the future may well be difficult to keep. They will probably have little organizational loyalty and view themselves as professional "free agents" who will work for the leader who provides the most challenge and opportunity. Skills in hiring and retaining key talent will be a valuable commodity for the leader of the future. Sharing leadership may be one way to help demonstrate this skill.

To successfully prepare for the next millennium, tomorrow's organizations will have to either change the mind-set of many leaders or change their employment status. For leaders who are near retirement, this may not be an issue. For middle-aged leaders who lack the needed new skills this may be a challenge. Leaders will have to learn why the new skills are important. They will have to understand what they need to learn and be shown how they can best learn it.

The "bad news" is that many existing leaders do not see the value of these new competencies. The "good news" is that almost all of the top high-potential future leaders do see the value of these new competencies. Future leaders may be recruited to help mentor and develop present leaders. If future leaders have the wisdom to learn from the experience of present leaders and present leaders have the wisdom to learn new competencies from future leaders, both parties can share leadership in a way that can benefit their organization. Asif J. Mir, Organizational Transformation

The McWorld raiding the Culture

Today’s global economy has a tendency to insulate consumers from the various negative impacts of their purchases by stretching the distance between different phases of a product’s lifecycle—from raw material extraction to processing, use, and disposal. Yet at the same time, social challenges accompanying economic globalization call for innovative forms of political mobilization across international borders. Shifting to more sustainable patterns of consumption and production worldwide will require pursuing new ground rules in order to forge a global economy based on protecting cultural values.

What we see is the onrush of the economic, technological, and ecological forces mesmerizing peoples everywhere with fast music, fast computers, and fast food—one McWorld tied together by communications, information, entertainment, commerce and especially the culture.

Today, the global spread of McWorld is rapidly bringing the consumer society of USA to the rest of the planet. The globalization of the consumer economy is closely linked with the general economic boom and growth in the movement of goods, services, and money across international borders, which accelerated during the 1990s.

McDonald’s operates 30,000 restaurants in 119 countries and serves 46 million customers each day. Its total revenue was $15.4 billion in 2002. On opening day in Kuwait City, the line for the McDonald’s drive-through was over 10 kilometers long. McDonald's has also spread expeditiously across Pakistan in almost 5 years with 18 restaurants in major cities. Strangely, there is no McDonald’s outlet in Peshawar and Quetta. McDonald’s costs the same in Pakistan as in the US, and given the per capita GDP disparity between the two countries, it is the cheapest food in one country, while being one of the most expensive in the other.

Pizza Hut also operates a chain of outlets in Pakistan and planning further to invest approximately 1 billion rupees in expansion. The money is being used to open 20 new outlets.

Coca-Cola sells more than 300 drink brands in over 200 countries. More than 70 percent of the corporation’s income originates outside of the United States, and its net revenues reached $19.6 billion in 2002.

Meanwhile, corporate strategies focused on boosting consumer demand in Pakistan have lead to increases in purchases of all manner of goods, from cars and televisions to paper and fast food. While it is ethically problematic to suggest that developing countries are not entitled to have the same options for material consumption that have long been taken for granted by western consumers, the global adoption of industrial country–style consumption patterns would place unbearable strains on local cultures.

The 1990s saw the emergence of many important international agreements and commitments embracing the need to transform unsustainable patterns of consumption and production. Agenda 21, the action plan that emerged from the 1992 Earth Summit in Rio de Janeiro, called on international institutions and national governments to promote greater energy and resource efficiency, minimize waste generation, encourage environmentally sound purchasing, and shift toward pricing systems that incorporate hidden environmental costs.

The UN Commission on Sustainable Development has provided a useful annual venue for governments and others to discuss consumption and production issues. The deliberations have produced little concrete action though. There is no voice raised for conservation of social values.

At the 2002 World Summit on Sustainable Development in Johannesburg, South Africa, governments agreed to develop a 10-year framework of programs to accelerate the shift toward sustainable consumption and production. These include offering a better range of products and services to consumers, providing more information about the health and safety of various products, and establishing programs of capacity building and technology transfer to help share these gains with developing countries. The World Summit also generated more than 230 partnership agreements among diverse stakeholders.

The Organization for Economic Co-operation and Development has sponsored a series of meetings and papers aimed at encouraging governments to implement innovative sustainable consumption and production policies.

In all these forums, apart from consumption and production, no emphasis is laid on the issue of social influence. Unfortunately, the limited gains made since 1992 in shifting toward more-sustainable patterns of consumption and production have been largely overwhelmed by the continued global growth of the consumer society. The controversial lifestyle issues continue to haunt.

The breakdown of WTO negotiations in Cancún in September 2003 provided reform-minded governments and activists with an opportunity to push for bringing future trade negotiations into better balance with sustainable development concerns. The way forward, nevertheless, is not yet clear.

Several new initiatives have emerged in the corporate and financial sectors, including the United Nations’ Global Compact, which calls on participating companies to integrate nine core values related to human rights, labor standards, and environmental protection into their operations, and the Equator Principles, which call on leading banks to manage environmental and social risks in their lending operations.

The international trade negotiations can provide opportunities to push for policy reforms needed to promote more-sustainable consumption and production. All the same, WTO rules and negotiations can also be used to protect cultures and social taboos of the host countries of MNCs.

Brands like McDonald’s, Pizza Hut, Pepsi and Coca-Cola are not just cultural aggression but also an expression of power; once America lost its power these will go. It is nonetheless impossible to filter culture. In the past we hated the British raj but gradually adopted its symbols. Today we hate America and don’t want to adopt what we think is its culture. Pakistan must save its own culture to counter the onslaught. There is a need for reform in our culture, but this should not be obfuscated through this hatred or that. The only answer to the American cultural onslaught is the protection of Pakistan’s own culture. www.asifjmir.com

Making a Dead Set at Corruption

Corruption is an insidious plague that has a wide range of corrosive effects on society. It undermines democracy and the rule of law, leads to violations of human rights, distorts markets, erodes quality of life, and allows organized crime, terrorism and other threats to human society to flourish. As defined by Transparency International: “Corruption is the abuse of entrusted power for private gain.” According to Kofi Annan, “Corruption hurts the poor disproportionately—by diverting funds intended for development, undermining a government’s ability to provide basic services, feeding inequality and injustice, and discouraging foreign investment and aid.”

The good news is that future of corruption is not so bright it will not entirely finish though.

No country is entirely free of corruption. Efforts to fight corruption encourage transparency and accountability, thanks to an increased understanding of corruption's social and economic costs. There is the need for expanding the econometric framework, as well as to more general future research directions and policy implications in the field of governance.

Corruption is principally a governance issue, a failure of institutions and a lack of capacity to manage society by means of a framework of social, judicial, political and economic checks and balances. Good governance and globalization (at both the country as well as at the city level) do matter for performance in terms of access and quality of delivery of infrastructure services.

Corruption is deeply embedded in the political culture and poverty of Pakistan. Regulatory bodies are particularly vulnerable to corruption as they have the power to make key decisions on profit-making activities. Corrupt regulatory bodies can thus dangerously impede economic development.

Discretion creates more opportunities for corruption than where regulatory requirements are laid out through clear, precise and formal rules. Debate about corruption tends to focus almost exclusively on the receivers of corruption, rather than the purveyors. Corruption is alive and well and living in myriads of places. Bribery is simply the way business is done in Pakistan.

Within Pakistan's political dynamics, corruption figures as a very critical element. Prevalence of corruption in various political regimes has been the main cause of their downfall. The incumbents have placed accountability and the anti-corruption drive very high on its agenda in form of NAB its operational approach is rather controversial.

Corruption increases the number of capital projects undertaken and tends to enlarge their size and complexity. The result is that, paradoxically, some public investment can end up reducing a country’s growth because, even though the share of public investment in gross domestic product (the total of all goods and services produced in a country in a given year) may have risen, the average productivity of that investment is dropped.

For a private enterprise, getting a contract to execute a project, especially a large one, can be very profitable. Therefore, managers of these enterprises may be willing to offer commission to politicians who help them win the contract. Conversely, in many cases the act of bribery may not start with the enterprise but with the officials who control the decisions. It is apparently impossible to win a government contract in Pakistan without first paying a bribe. Interestingly, the laws of certain major industrial countries regard commissions paid by domestic enterprises to foreign politicians as not only legal but also tax deductible.

In some of these phases, a strategically placed high-level official or elected leader can manipulate the process to select a particular project. He can also tailor the specifications of the design to favor a given enterprise by, for example, providing inside information to that enterprise at the time of issuance of tender.

The enterprise that pays the commission rarely suffers from the payment of the bribe, since it is fairly simple to recover that cost. First, if corrupt officials of winning the bidding competition assure it, the enterprise can include the cost of the commission in its bid. Second, it can reach an understanding with the influential official that the initial low bid can be adjusted upward along the way, presumably to reflect modifications to the basic design. Third, it can reduce its spending on the project by the amount of the bribe by skimping on the quality of the work performed and the materials used. Fourth, if the contract is stipulated in a cost-plus fashion, the enterprise can recover the cost of the commission by overpricing.

The first step towards tackling corruption is preventing it. In attempting to prevent the laundering of proceeds of corruption mechanisms need to set up to review suspicious transactions, and analyze financial information.

Transparency and accountability in matters of public finance must also be promoted, and specific requirements established for the prevention of corruption, in particularly critical areas of the public sector, such as public procurement.

Citizens have the right to expect a high standard of conduct from their public servants. They also have to participate in preventing public corruption. For these reasons there is a need to actively encourage and promote the involvement of non-governmental and community based organizations, as well as, other elements of civil society, and to raise public awareness of corruption and what can be done about it.

There is a requirement for the prevention of corruption in the judiciary. Decision-making should be entrusted to committees rather than individuals. Although this adds to the cost of regulation, it may eventually save money by facilitating mutual monitoring and accountability.

New attitudes, better financial systems, prosecution of the guilty, better management of diamonds and real accountability to the people … this is the agenda for change. In taking it forward, the leading role must obviously be taken by the people and Government. But tackling corruption effectively requires a real focus, coordinated action and shared responsibility. Everyone’s energies must be thrown behind this anti-corruption strategy. It is the key to a better future for the people of Pakistan. (www.asifjmir.com)

"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)

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)