Education System: Reengineering

Education should be the high priority of the government. It should be recognized as one of the fundamental rights of a citizen and universal access to every citizen. Pakistan’s sustained economic growth can only be achieved with higher emphasis on timely investment in education. This can pay rewarding dividends for future economic growth and well being of the society as a whole.

Physical condition of many schools in the province is a fundamental problem that should have been undertaken before stepping on to other areas. A factor hindering high attendance is the poor infrastructure. Out of some 60,000 public-sector primary schools - with about 4.5 million students - some 8 percent have no buildings, while thousands more are without drinking water, electricity and toilets. The government must allocate resources for the provision of basic infrastructure and facilities in educational institutions.

The junior teacher that forms the lifeline of the nation, as in making the generation, draws lesser in money than that of an unskilled worker. There are 350,000 teachers in Punjab. Since there is nothing done for their welfare, the slogans like ‘Educated Punjab’ appears a mere hoax.

PTC/ JVT teachers are in grade 7 in provincial government and in grade 9 in federal setup and they draw Rs 2000 and Rs 2600 respectively. The United Nations has defined poverty line as 2 Dollars a day and in Punjab Province alone 350,000 teachers and of them 175,000 is living below poverty line.

The Punjab Ombudsman Report 2004 says, “There were 63,000 schools functioning in the Punjab where nine million students were studying. The second highest number of complaints (1193) was filed against the Education Department. It is strange that while Punjab chief minister is spending million of taxpayer money on personal projection and publicity on the electronic & print media, he has not paid any attention to the Education Department. Every thoughtful Pakistani is upset with Pakistan's system and quality of education. It is tragic and quite ironic that Pakistan ranks among the lowest in the world in term of literacy. Most developed and even developing countries spend six or ten percent of their GDP on education but Pakistan only spends 2. 3 % of its GDP.”

The present education system has failed to disclose before the new generation the founding reasons of Pakistan. The most alarming aspect besides ideological confusion and moral degradation is the falling standard of education. Class distinction in education has been created. Because of this, Pakistani nation is most discreetly broken down into an upper English medium and a lower Urdu medium class. Ironically each school has its own curriculum. The education system needs to be reengineered by every inch. Pakistan studies and the national character should be the fundamental elements.

Creating sectarian cohesion and teaching regional and social parity, a uniform syllabus, system of examination and medium of instructions should be enforced in all educational institutions.

Private institutions, at all levels have failed to maintain a regular quality supremacy over public schools. Private schools have now become an industry. According to the first census of private education institutions there are 22,855 private institutions in Punjab. It can be inferred that private schools have not been able to play a significant role in improving the education system. Since it is a transformed industry, the educational infrastructure provided by private schools is small and have poor facilities and untrained teachers. Some 64% are registered, and 3.4% recognized. The rest are unregistered. Nevertheless many parents prefer the inadequacies of the private sector to the government school, provided that there is one in the vicinity.

Exploitation by private educational institutions in the name of education should be regulated. These institutions should be made to boost standardized education on the one hand and on the other, to embrace all classes of society on basis of merit.

Punjab needs concrete planning but the tools to educate need immediate attention or it will stay as an advertisement gimmick.Asif J. Mir, Organizational Transfortmation

Poverty and Development

It is widely recognized that development is about much more than growth of GDP. Equally, everyone appreciates that democracy is more than simply a matter of universal suffrage and the holding of regular multiparty elections, essential though these are. So we need to understand exactly what is meant by development and democracy today, in the twenty-first century.

There is a need to recognize the links between democracy and good governance on the one hand, and poverty, development and conflict on the other.

A strong, effective, accountable state is the first pillar of democracy and development. International institutions alone cannot and should not take responsibility for eradicating poverty, authoritarianism and conflict.

The foundations of a democratic state are worth recalling: a freely and fairly elected parliament that is broadly representative of the people; an executive (government) that is answerable to parliament; an independent judiciary; a police force that responds to the law for its operations and the government for its administration; and armed forces that are answerable to government and parliament.

The financial affairs of any democratic government should be monitored by parliament through a public accounts committee, and by an auditor-general answerable to parliament.

Civil society is the third pillar of pro-poor development and democratization. Building the capacity of citizens’ organizations and a free and well-informed media are critical for promoting citizen participation, holding government to account and empowering poor communities. Poor people and poor communities, for example, are in the best position to understand and articulate their own needs, and their voices should be heard directly within government. But they are not and here political rights and opportunities can be bolstered through community action.

The media plays an important role both in giving voice to citizens and in holding government and the private sector to account on their behalf.

Where international economic organizations such as the IMF, the World Bank and the WTO set down conditionality or constraints on policy, it must be in the pursuit of pro-poor development, and must work in ways that do not erode democratic institutions and human rights at the national and sub-national levels.

There is a need for responsibility, partnership and concrete actions – from the government, private sector, civil society and international community. Without responsibility on all these levels, development and democracy will remain rhetoric rather than become reality.

The principal aim of development no longer focuses on maximizing marketable production of goods. The emphasis now is on expanding opportunities and strengthening human capacities to lead long, healthy, creative and fulfilling lives. Development is about enabling people to have the ‘capabilities’ to do and be the things that they have reason to value. Poverty is the deprivation of basic capabilities and development as the process of ensuring that the most basic capabilities are achieved by all.

Basic capabilities include: being adequately nourished, avoiding preventable morbidity and premature mortality, being effectively sheltered, having a basic education, being able to ensure security of the person, having equitable access to justice, being able to appear in public without shame, being able to earn a livelihood and being able to take part in the life of a community.

Developing countries have a weak administrative capacity. Public officials are poorly trained or lack experience in public expenditure management. State institutions, such as ministries and judiciaries lack sufficient resources or are plagued by entrenched systems of corruption. Inadequate numbers of women at decision-making levels in the civil service and judiciary means that women’s interests are not represented in policy formulation and implementation.

Ill-health is also a cause of poverty. A single experience of sickness in a family can divert energy and resources, leaving the household in deep poverty. Diseases such as malaria, and tuberculosis are not only personal tragedies; a high prevalence of such diseases is associated with significant reductions in economic growth.

Many anti-poverty plans are no more than vaguely formulated strategies. Developing countries need a genuine action plans - with explicit targets, adequate budgets and effective organizations. They do not have explicit poverty plans but incorporates poverty into national planning. And many of these then appear to forget the topic.

The governments have difficulty in reporting how much funding goes to poverty reduction - unable to distinguish between activities that are related to poverty and those that are not. They confuse social spending with poverty-related spending. But much government spending could be considered pro-poor if it disproportionately benefits the poor. Under these conditions it is probably best to set up a special poverty reduction fund - to give a better financial accounting and to allow government departments and ministries to apply to the fund for financing for their poverty-focused programs.

The scope of development policy has become broader, making ‘pro-poor development’ a vital additional analytical category that orients attention towards those people most in need. Recognizing that ‘development’ is still used loosely in the policy world to refer to development strategies, rather than particularly for poor people, it is important to distinguish and promote ‘pro-poor development’. Development policies aimed at the general population may have a more limited positive impact on particularly disadvantaged groups. Pro-poor development concerns those policies that are specifically designed to enhance the quality of the lives of the poor. Asif J. Mir, Organizational Transformation

The Pounding Head of Poverty

Future trends show that the world poverty is decreasing and we are nearing the era when the poor of today will live the standard of the average rich of today. Contrary to this trend, in Pakistan poverty levels are going further up. Although many Pakistanis have greatly improved their standard of living since 1947, yet over 30 percent of them—around 42 million people—still live below the poverty line. The gap between the rich and poor has widened with some gaining financial comfort while others are finding it impossible to permanently escape from destitution.

Poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see a doctor. Poverty is not being able to go to school and not knowing how to read. Poverty is fearing the future, living one day at a time. Poverty is losing a child to illness brought about by unclean water. Poverty is powerlessness, lack of representation, and freedom.

Poverty has many faces, changing from place to place and across time, and has been described in many ways. Most often, poverty is a situation people want to escape. So poverty is a call to action—for the poor and the wealthy alike—a call to change the world so that many more may have enough to eat, adequate shelter, access to education and health, protection from violence, and a voice in what happens in their lives.

For many, lack of access to income-generating activities, coupled with lack of basic services in education and health, is the determining factors behind acute poverty. In Pakistan, lack of access to credit, training in income-generating activities, basic social services, and infrastructure are critical factors behind the persistence of substantial poverty, especially in underserved rural and urban areas. Poverty levels also differ depending on where people live. The metropolitan poverty rate differs greatly between suburbs and the central city.

At the Millennium Summit in 2002, major development organizations looked at development goals, which had been agreed at international conferences and world summits during the 1990s, and distilled them into eight goals with eradication of extreme poverty and hunger at top. The Goals were formed in response to what was seen as uneven development progress, where globalization benefits millions, but poverty and suffering still exist.

This is scarcely surprising considering that those who live below the poverty line and that any supplementary income from working children becomes unavoidable for their families to make ends meet. We have to understand as why children go to work. If parents don't send their children to work I am sure factories will not be able to consume them. No mother likes her child to go for work. It is financial crisis, which forces. Our understanding should be little more practical as no parents want their children work at the age when children are to study and play.

The stress on a gradual approach towards eliminating child labor is the correct one. At the same time, poverty alleviation efforts must be stepped up, so that the loss of an earning member of the family is not felt, so actually and over an indefinite period of time.

Poverty is no longer just a matter of calories or of pricing a consumption bundle. It has to do with the poor defining and achieving their well being themselves and living a life in a participative society where the State is an enabling rather than a hindering institution. It is not that income or consumption level is unimportant. It remains at the core of any definition of poverty. But we must view it as an input as much as an outcome. It is an input which contributes towards well being. But just as important are public goods – health care, clean water, literacy, and healthy environment.

Pakistan's rural sector accounts for more than 70 percent of employment, and roughly two thirds of rural employment is in agriculture. Less than a third of rural households get loans, only 10 percent of which are from institutional sources. Pakistan's credit institutions are not helping the country accelerate agricultural growth and reduce poverty.

To improve performance in the rural economy and efficiency in financial institutions, rural credit markets must be liberalized.

Produce and price controls must be replaced by prudent regulation and supervision, combined with policies to stabilize the economy. Commercial banks must operate in a competitive environment. They must be allowed to set interest rates for rural lending that cover their transaction costs. Credit must be made available to support productivity growth for agricultural smallholders and small producers of the rural non farm sector, where Pakistan's growth potential lies. Credit must be made available to women and to the rural poor for consumption smoothing and for sustainable income generating activities.

Policy should be directed at developing a market based financial system for rural finance, but because of market failures to support disadvantaged groups, a special priority program may be needed to get credit to women, smallholders, and the rural non-farm sector.

Subsidizing interest rates is not the way to help marginal borrowers. Instead, they can be helped through fixed cost subsidies and self-selected targeting. NGOs should be encouraged to help, keeping in mind such success stories as the Grameen Bank in Bangladesh and Badan Kredit Kecaratan (BKK) in Indonesia.

Pakistan needs to make the policy choices to help it translate economic gains into real poverty alleviation for its citizens. It needs social protection, human development, and a well-coordinated rural strategy. Issues of governance are at the heart of many of the difficulties encountered in mitigating poverty and broadening access to social services for the poor. Asif J. Mir, Organizational Transformation

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

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

Cutting out a Pro-Poor Budget

In developing countries each time the budget has come, it means the elimination of benefits for the poor and elevated benefits for the rich. The hopes of the governments for making their countries as the most vibrant economies are laudable but the development policies have no relevance to the man in street.

The majority of the people in poor countries yearns for a pro-poor budget. Promoting pro-poor growth requires a strategy that is deliberately biased in favor of the poor so that the poor benefit proportionally more than the rich.

In general a pro-poor budget is one that takes into account the needs of the poor. It is one that seeks to make a difference in the lives of the poor. It is one that would impact positively on the poor so as to enable them to actively participate in and benefit from the process of development. A pro-poor budget would enable the poor to have increased opportunities In order to be healthy, educated, productive and responsible people. Such a budget would have to have a deliberate bias so that the poor would benefit proportionately more from government expenditure than the rich.

The first step in achieving a pro-poor budget is the identification of who the poor are. The understanding and measurement of poverty has evolved over time. Today it is generally accepted that poverty is not only a money related deprivation, but a combination of several deprivations that result in lack of well being. Consequently budget provisions must respond, to this complex situation of poverty. This is no easy task. In formulating a pro-poor budget there is need to have up to date information of the levels, intensity and types of deprivations that make up poverty.

There are many reasons, both practical and strategic, to establish a conceptual linkage between gender and poverty for promoting gender-sensitive budgets. It would be a mistake to simply equate the two categories. Gender imbalances and inequalities should run across every social, economic and political classification. The exclusion and deprivation experienced by the poor is not the same, and tends to be even more acute for women than for men. Gender allows us to stop envisioning the poor as a homogeneous category of people, whose needs can be addressed in a uniform way.

Pro-poor growth should direct resources disproportionately to the sectors in which the poor work (e.g. agriculture), areas in which they live (underdeveloped regions), factors of production which they posses (such as unskilled labor), outputs, which they consume (such as food), translated into strategy of pro-poor growth - employment generation combined with price stability of goods and services which are essential items. Policies need to be designed to reflect concerns of poverty.

In order to address poverty effectively the budget will need to have more direct rather than indirect means of taxation. This would help reduce prevailing high-income inequalities and help spread the benefits of economic growth.

Pro-poor growth means that the poor benefit disproportionately from economic growth. This is to say the proportional income growth (i.e. their income growth rate) of the poor must exceed the average income growth rate. The per-capita income growth rate of the poor must exceed growth rate.

Three obvious policy messages emerge. First, policies to promote growth should help the poor although they could do so more if they made growth pro-poor rather than neutral as it currently is. Second, reducing initial inequality, particularly asset inequality, should receive highest priority, due to its triple effect on poverty. Third, reducing gender inequality should equally be of highest concern to policy makers that want to achieve pro-poor growth.

It is clear that pro-poor growth that directly reduces poverty must be in sectors where the poor are and use the factors of production they possess. The vast majority of the poor is in rural areas, a majority depends directly or indirectly on agriculture for their livelihood, and the factor of production the poor possess and use most is labor, sometimes land, and even more rarely human capital. Thus pro-poor growth must be focused on rural areas, improve incomes and productivity in agriculture, and must make intensive use of labor. These things are nearly tautological, but often forgotten and are clearly not reflected in public policies or in the allocation of public funds by national governments or donors.

Heavy investment in the human capital of the poor will yield two benefits on poverty reduction. It will increase economic growth and it will make growth more pro-poor. The record of East Asia is a good illustration where high human capital accumulation promoted growth and poverty reduction.

Beyond a concern for increasing average incomes and reducing poverty, there is a greater appreciation for a need to enhance the security for the population if one is to ensure sustainable pro-poor growth. The security of the poor is threatened by physical threats. Thus, the poor are forced to avoid risks that may carry high rewards, can get trapped in cycles of poverty and insecurity, and are regularly pummeled by shocks that militate against sustainable reductions in poverty.

Our budget-makers need to remember that real enemy is poverty and deprivation, that their key weapon is their skill and professionalism and that their modus operandi is their humility. They are the custodians of a value system that defines our objective as demonstrating every single day that we are a caring democracy.

Attaining a pro-poor budget is a big challenge. It requires a bottom-up approach; that ensures that poverty eradication is a central issue and not a donor driven requirement. The principles of equity and accountability with particular attention to efficiency and effectiveness have to be continually respected at each stage of the budget process. www.asifjmir.com

Globalization & the Poor

The urbanization of poverty is being propelled by a tremendous increase in the transnational movement of people and capital. The rapid transfer of money and jobs to cities and countries where cheap labor can be found has fueled by a race to the bottom. For the urban poor who are impacted by this race, there are no winners, and the losers will most likely find themselves among the projected two billion people who will be living in slums by 2030.

Hardest hit by globalization are women and children - the most vulnerable of urban dwellers. Poor women are becoming increasingly marginalized as the feminization of poverty manifests itself in many parts of the world.

The positive aspects of globalization, including greater longevity, increased literacy, lower infant mortality and wider access to infrastructure and social services, mask the unfortunate truth that these benefits are not being shared equally. The effects of globalization on cities – both positive and negative – need to be better understood if public policy is to be effective in bettering the lives of those who live in them.

Under globalization, manufacturing activities in cities have been relocated offshore to the developing economies whose lower labor costs, lower taxes and less rigorous environmental protection enable higher profits. The socio-economic consequences of globalization weaken access to basic infrastructure and housing, fuel the creation and expansion of slums, and reinforce the negative environmental and health impacts affecting the urban poor in many cities.

Demographic shifts, including transnational migration and poor integration of ethnic and racial groups, add impetus to these changes. So, too, does the ability (or not) of households and individual people to cope with rapid economic change. Those on the losing end of these changes can easily find themselves confronted with the loss of jobs, and the consequent sale of assets in order to survive, converting them into the new poor, leaving them even more insecure and vulnerable in the face of economic change.

The last two decades have witnessed a transformation of the global economy, which has led to vast economic, social and political realignments in many countries and cities. The trend towards open markets has enriched some countries and cities tremendously, while others have suffered greatly. World trade in this period has grown from about US$580 billion in 1980 to US$6.3 trillion in 2004—11-fold increase. Flows of capital, labor, technology and information have also increased tremendously.

Among the losers in this race are female workers, whose wage levels and working conditions have declined as a result of the dropping of barriers to footloose industries. This same dynamic is evident inside individual cities as well, leaving many people unable to obtain stable jobs and incomes. This leads to changes in patterns of social inclusion and exclusion across cities, often along racial and ethnic lines.

The distribution of the fruits of globalization reflects private-sector judgments about the expected financial returns to these investments, their security, and the economic and political environments in which they occur. Corporations have tended to concentrate direct investment in ten countries, including China, Brazil, Mexico, Indonesia and Thailand. In stark comparison, the poorest countries have seen no such investment.

The vacuum created by footloose industries is rarely filled by job opportunities for the poor. Rather, any new jobs tend to be in knowledge-intensive industries, many requiring university-level education.

The race also occurs within individual cities, resulting in job losses where large segments of the labor force have to shift from one sector to another. The urban poor are losing jobs and benefits and must now find other income-generating opportunities in the informal sector, which offer no security or benefits.

The loss of secure jobs with secure community roots fosters an informalization of the urban economy, with more people eking out a living in unregulated sectors. Several economic processes converge to informalize employment and other aspects of urban life. The closing of formal-sector enterprises often coincides with the downsizing of ancillary industries and services. As one industry declines – as with light engineering in Karachi - incomes in the city as a whole reduce. Former employees are no longer able to purchase services on the street; hence, street vendors also suffer. Simultaneously, if utility tariffs increase, other enterprises suffer and are forced to reduce their operations or close altogether.

Globalization has set cities against each other in a desperate competition for a share of highly mobile capital and trade. The needs and desires of global capital must be balanced with policies based on the needs of the region’s own inhabitants. Otherwise, any effort to alleviate urban poverty will expire, as meaningless gestures that provide little more than temporary relief – and the gap between rich and poor will continue to grow larger.

Jobs, consumption patterns and opportunities for social mobility are all easily influenced by external factors. This instability can be manifested in both national and local contexts through at least four important channels: patterns of investment, labor markets, prices and public expenditures. Moreover, they occur in different locations within the city, creating patchworks of decay, renewal, and economic revitalization. The challenge for national and local authorities is to identify which kinds of changes are occurring, or better still, which types of changes can be anticipated, in order to consider whether there are measures that can cushion or mitigate these impacts. To do that, changes must be anticipated and capital set aside to deal with them.

While government may feel its budget is severely constrained, it needs to apply discipline to save some of their resources for these future needs. This does not mean borrowing and thereby passing on debts to future generations. It means saving for the future. In reality, this saving is an insurance policy against future unknowns. Having such resources at hand allows decision-makers to face the future more confidently and to smooth out the impacts of volatile changes in the global economy at large. (www.asifjmir.com)

The Brain Drain

The future trends explain that the nanotechnology will elongate life spans and thus the West and the Japan is going to have enlarged older population and diminishing youth. To fill in the demographic gap those countries will hire skilled youth from Asia. This will intensify the stream of brain drain from Pakistan. This calls for use of strategic human management and economic reasons as key actions needed to meet the challenges of the 21st century.

The term brain drain was popularized in the 1960s with the loss of skilled labor-power from a number of poor countries, notably India. Of particular concern was the emigration of those with scarce professional skills, like doctors, engineers and management scientists, who had been trained at considerable expense by means of taxpayers' subsidies to higher education.

UNESCO defines the brain drain as an odd form of scientific exchange among states because a movement in one direction that inevitably flows to developed countries characterizes it.

Pakistan is suffering from two main problems, one is poverty, which is increasing day by day and the other is increasing rate of crime. Both are result of unemployment. The wrong distribution of wealth due to wrong policies and over-population has made the situation even worst. This paved a way for skilled citizens to go abroad especially, the educated youth.

Other reasons include: they feel that they have a better future, a greater security; will be better off financially, and they feel that they and their children will get better education.

The receiving countries are the winners while the sending countries are the losers. The receiving countries include the US, England, Australia and West Germany. The sending countries include beside others, Pakistan. The rulers of Pakistan who remain indifferent to prevailing problems, and fail to respond to the employment problem creatively, contributes to brain drain.

Pakistanis who completed their studies in Europe and the US are not returning to Pakistan. Since one in three Pakistani professionals will like to live outside Pakistan, Pakistani universities are actually training one third of their graduates for export to the developed nations. We are thus operating one third of Pakistani universities to satisfy the manpower needs of Great Britain and the United States. Stated differently, the Pakistani education budget is nothing but a supplement to the American or British education budgets. In essence, Pakistan is giving developmental assistance to the wealthier western nations, which makes the rich nations richer and the poor nations poorer.

It is the best and brightest that can emigrate, leaving behind the weak and less imaginative. We cannot achieve long-term economic growth by exporting our human resource. In the new world order, people with knowledge drive economic growth. We talk a lot of poverty alleviation in Pakistan. But who is going to alleviate the poverty? Or the uncreative bureaucracy that created poverty? Hypothetically, the most talented should lead the people, create wealth and eradicate poverty and corruption.

In theory, overseas Pakistanis are morally obliged to return back home. In truth, it is unrealistic thinking that that a Pakistani professional will resign from his $60,000 a year job to accept a $3,000 a year job in Pakistan. A more meaningful question will be to ask: What measures can be taken to entice Pakistanis leaving abroad to return home and what can be done to discourage those professionals in Pakistan to remain in Pakistan?

The brain-drain seriously affects the quality and delivery of public and private services there are two obvious solutions (a) make it worthwhile for highly-trained professionals to stay and (b) replace them with competent locals at a rate as fast or faster than their departure brain train.

Another solution is to devise strategies of brain gain. These can take the development of a brain gain network. Pakistan is not effectively encouraging the use of its diaspora in contributing to development at home (e.g., 80 per cent of recent foreign investment in the People's Republic of China came from overseas Chinese). The brain gain network can help in the promotion of joint research and teaching posts, the use of medical specialists in periodic return visits, short-term training assignments and even systematic professional and research collaboration on electronic networks. These could be effective ways of harnessing the skills of some of the distinguished scientists, medics, artists and educators with Pakistani origins living abroad.

With good employers, attractive working conditions, improved telecommunications and the entrepreneurial climate in India today, young professionals are moving back and strengthening the economic sector. Then IT professionals in India are quite often paid in foreign currency at international rates to prevent brain drain and hence exports of Indian software industry is now in the range of $10 billion.

Pakistan’s bureaucracy, rigid hierarchies and frustrating professional fragmentation also pushed people away. Pakistan is a mess, a haze of over-regulated and overcomplicated bureaucracy smothering the rare flames of true entrepreneurial brilliance.

Lack of opportunities compelled me to leave Pakistan in early 80s. Since then I acquired not just high education from prestigious universities of Europe and America, my practice also earned global recognition with rain of medals and achievement awards. Now that I have voluntarily come back, rather timorous of my credentials, government officials are keeping me at bay. The President House vainly tried to get me Consulting jobs at two federal departments. It failed for I was undesirable most probably due to my high credentials. Government managers who have utterly unsuccessful in planning for even paltry matters such as payment of utility bills only creates road blocks for such Pakistanis who want to come back. Thus in a society comprising sycophants and greedy relatives, I am twiddling with no job in hand. Rhetoric aside, one question dominates my mind: does Pakistan have any repatriation policy for such Pakistanis who are globally recognized and who are capable of offering prescriptions for prevailing ills? (www.asifjmir.com)

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)