Rolling out the Red Carpet

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Showing posts with label prosperity. Show all posts
Showing posts with label prosperity. Show all posts

Sunday, March 29, 2009

The Consumer Class

Our world is one of contrasts. While 1.7 billion people earn enough to be classified as members of the consumer class (users of items including televisions, telephones, and the Internet, along with the culture and ideals these products transmit), as many as 2.8 billion people including Pakistanis struggle to survive on less than $2 a day, and more than one billion lack reasonable access to safe drinking water. Yet providing adequate food, clean water, and basic education for the poorest could all be achieved for less than people spend annually on makeup, ice cream, and beverages.

Private consumption expenditures—the amount spent on goods and services at the household level—topped $20 trillion in 2000, up from $4.8 trillion in 1960. Some of this four-fold increase occurred because of population growth, but much of it was due to advancing prosperity in many parts of the globe. Production efficiencies of the 20th century have driven much of the consumption boom. Modern industrial workers now produce in a week what took their 18th century counterparts four years. In the semiconductor industry, production efficiencies helped drive the cost per megabit of computing power from roughly $20,000 in 1970 to about 2 cents in 2001. Global spending on advertising reached $446 billion in 2002, an almost nine-fold increase over 1950.

According to a survey on Consumer Spending and Population, by Region, in 2000 it is found that 5.2% of world population in United States and Canada has 31.5% share of world consumption expenditures. Out of 6.4% of world population in Western Europe has 28.7%, 32.9% in East Asia and Pacific has 21.4%, 8.5% in Latin America and the Caribbean has 8.5%, 7.9% in Eastern Europe and Central Asia has 3.3%, 22.4% in South Asia has 2.0%, 0.4% in Australia and New Zealand has1.5%, 4.1% in Middle East and North Africa has1.4%, and 10.9% Sub-Saharan Africa has1.2% share of world consumption expenditure.

The health status of women and children in Pakistan is awful—eight babies are born every minute, one mother dies every 20 minutes and about 15 of them suffer from morbidity every 20 minutes, about 50 percent women are suffering from malnutrition and anemia. Less than 20 percent of them are receiving help during delivery and about 25 percent of children are being born under weight. The vision of reproductive health in Pakistan is less costly than the amount spent on smoking.

Smoking contributes to around 5 million deaths worldwide each year. In 1999, tobacco-related medical expenditures and productivity losses cost the United States more than $150 billion—almost 1.5 times the revenue of the five largest multinational tobacco companies that year.

Time pressures are often linked to the need to work long hours to support consumption habits—and to upgrade, store, or otherwise maintain possessions.

In 2002, 1.12 billion households—about three quarters of the world's people—owned at least one television set—Pakistan had 4 million TV sets with only 2,823,800 registered. Some 41 million passengers vehicles rolled of the world's assembly lines in 2002, five times as many as in 1950. The global passenger car fleet now exceeds 531 million, growing by about 11 million vehicles annually. Consumers across the globe now spend an estimated $35 billion a year on bottled water and consumes 33 million liters (35 million quarts) a year in Pakistan.

In 1999, some 2.8 billion people—two in every five humans on the planet—lived on less than $2 a day (Pakistan falls within this category with Per Capita Income as $492). In 2000, one in five people (2 in 5 people in Pakistan) in the developing world—did not have reasonable access to safe drinking water. 2.4 billion people worldwide—two out of every five (and in Pakistan, 3.5 in every 5)—live without basic sanitation. Providing adequate food, clean water, and basic education for the world's poorest could all be achieved for less than people spend annually on makeup, ice cream, and pet beverages.

When the annual expenditure on luxury items in the world are compared with funding needed to meet selected basic needs we see that Annual Expenditure on products like makeup, perfumes, ice cream and beverages.

Consumer goods and services are often sold on the premise that they make life easier and more fulfilling. But too often, beneath the surface of these claims, lay hidden costs. Automobiles are often advertised as bringing freedom to their owners, yet in reality, the average adult urbanite now spends 50 minutes a day behind the wheel. As consumers upgrade, store, or maintain possessions, they are also likely to experience time pressures linked to the need to work long hours to support consumption habits.

If a person is very poor, there is no doubt that greater income can improve his or her life. But once the basics are secured, well being does not necessarily correlate with wealth. Most governments make ongoing growth in the gross domestic product (GDP) a leading priority, under the assumption that wealth secured is well-being delivered. Yet undue emphasis on generating wealth, particularly by encouraging heavy consumption, may be yielding disappointing returns. Overall quality of life is suffering in some of the world's richest countries as people experience greater stress and time pressures and less satisfying social relationships, and as the natural environment shows more and more signs of distress.

By redefining prosperity to emphasize a higher quality of life—rather than the mere accumulation of goods—individuals, communities, and governments can focus on delivering what people most desire. Indeed, a new understanding of the good life can be built not around wealth, but around well being: having basic needs met, along with freedom, health, security, and satisfying social roles. Asif J. Mir, Organizational Transformation

Friday, March 6, 2009

Reengineering the Politics

Pakistan is a country that runs politics without politicians. And this has remained a major, if not the sole, obstacle against political stability in the country. The conviction of the people suffers from a serious scarcity of politicians with the capacity of perceiving, exploring and exploiting political-democratic opportunities for their necessitous citizens. This scarcity has left Pakistan with the option of practicing politics without politicians. And the result has remained the same: despair, pessimism, cynicism, and neglected pile of problems such as unemployment, poverty and a broken society.

Politics in Pakistan is a ghastly pursuit—what helps one group is thought inevitably to harm another; what benefits one must hurt the other. It is a politics of despondency. In the name of advancing the interests of one's own group, it rejects attempts to educate, pressure, or change the society as a whole, thus accepting the status quo and revealing its essentially conservative nature. It is a politics of defeat and demoralization, of pessimism and narcissism. By seizing as much as possible for one's self and group, it exposes its complete disregard for the whole from which it has separated—the rest of the society. It thus rejects the search for a just and comprehensive solution to social problems. It is fundamentally conservative, working against progressive change and supporting the status quo.

In politics of Pakistan the intent is acquisition of power, and a culture prevails where people as well as the nation have become insensitive to human values and feel no hesitation in trampling over the rights of others. The ambition for power has thus turned out to be the tumbling block for establishing peace, equality and a true sense of fellowship. Such exhortation to goodness and moral superiority will remain in a pious ideal if our political leadership failed to translate it in social and political policies.

As ill luck would have it, the name of the game in Pakistan has become winning the elections and not incessant development and prosperity for all. Consequentially, problems such as unemployment, inflation and rule of law are bumping up and no political entity in Pakistan seems concerned. The only implicit, overt and covert concern is for power.

The manifestos of all political parties are no more than points of etiquette. They lack the power to foster commitment, motivation and clarity of vision and purpose. They do not surround certain principles and processes, which are properly observed in their development and deployment. They fail to connote the manifesto of political parties forming the basis for strategic direction and daily action. They are not developed in ways that they become powerful tools. Our political parties do not adopt the new philosophy, institute leadership, and eliminate slogans and exhortations. They fall short of doing away with personal goals and putting everyone to work to accomplish transformation. This requires leadership and commitment to a common mission, which all political parties lack.

Perhaps Z. A. Bhutto was the first (and the last) to offer a program that ignited the spirits of people. Today’s political organizations, including the party he left behind, lack agenda, harmony with values, inspiration, motivation and the ability to capture the heart and soul of the people. Consequently, whatever deficient programs these parties offer are identical, monotonous and ambiguous. They only differ in phraseology and verbosity.

Manifestos of most major political organizations are substance deficient. Even during a supplementary election recently held in my vicinity, I could not determine the main thrusts of political agendas of the contestant political groups (one candidate supported by a coalition of PPP, MMA, PML-N, Tehrik-e-Insaf while the other represented PML-Q). The entire campaign pivoted around attacks and counter-attacks. I could not even grasp the vision of PML-Q. Different leaders had different interpretations. Regrettably, no political party in Pakistan has a stated vision.

For all our political groups are without the vision people are locked in their past and present and incapable of imagining a future that will be better, they’ve lost hope. Politics has thus become mere “business,” horse-trading, squabbling about power with little sense of the ends to which power is the means. Gaining and holding on to power has become the purpose. For vision is what generates purpose for a society, without vision public life in Pakistan has become a battle of interests, unconstrained by a larger horizon of meaning. By and large, the losers are the powerless and the vulnerable—the luckless people.

By having a manifesto with people’s soul in it, a political party can have continuity. This is one of the major benefits of managing and leading by a manifesto developed by a participative process. It provides a long-term continuity and help leadership to maintain a long-term competitive advantage because it has direction and purpose. And when individual values are harmonized with those of the political enterprise, people work together for common purpose that is deeply felt. They contribute more as a team than individually. Thus the productivity not just gets better it gets dramatically excellent.

Today Pakistan is in dire need of people-service engineers, political-democratic entrepreneurs, and change agents who can dedicate their careers to the job of serving their people in solving their micro and macro-societal needs.

Pakistan needs those political leaders who can yield their personal interests to national interests and have the need of maintaining public accountability; who can keep the political machinery going for the future growth of their political career which is needed by the society; and who can discern that the military is right there seeking and watching out to grab power and impose dictatorship.

The new challenge lays ahead—the challenge to enable society to operate in dynamic balance with the threatening external environment. The nation yearns for leadership capable of providing direction and inspiration needed to survive and prosper into the 21st century. Pakistan desperately needs political re-engineering for driving the nation toward survival and prosperous future.Asif J. Mir, Organizational Transformation

Sunday, November 23, 2008

Emphasizing Well-being

In recent years, psychologists studying measures of life satisfaction have largely confirmed the old adage that money can’t buy happiness—at least not for people who are already affluent.

A nation is successful not when it’s rich but when its people are happy. If you are very poor, there is no doubt that greater income can improve your life. But once the basic needs are secured, well-being does not necessarily correlate with wealth. The social and psychological needs of human beings also shape our cultures, and help to determine whether our civilization is sustainable or not. Good life is redefining prosperity to emphasize a higher quality of life, rather than the mere accumulation of goods.

The Prime Minister is busy sketching up plans for making continuing increases in gross domestic product (GDP) as a chief priority of domestic policy, under the assumption that wealth secured is well-being delivered.

Whether due to curbs on hundi business as a post-9/11 scenario or owing to connoisseur planning, foreign exchange reserves (FER) of Pakistan touched highest levels ever in the previous government. With increased GDP and FERs the number of suicidal deaths also grew larger when poverty ridden people take their lives. This situation demonstrates that some link was broken somewhere. And that’s about social moorings and calls for a shift in paradigm.

The government must focus on delivering what people most desire. Indeed, a new understanding of good life can be built not around wealth but around well-being: having basic survival needs met, along with freedom, health, security, and satisfying social relations. Consumption would still be important, to be sure, but only to the extent that it boosts quality of life.

Pakistani society if focuses on well-being will involve more interaction with family, friends, and neighbors, a more direct experience of nature, and more attention to finding fulfillment and creative expression than in accumulating goods. It should emphasize lifestyles that avoid abusing our own health, other people, or the natural world. In short, it will yield a deeper sense of satisfaction with life than many people report experiencing today.

What provides for a satisfying life? The disconnection between money and happiness in wealthy countries is perhaps most clearly illustrated when growth in income is plotted against levels of happiness. In the United States, for example, the average person’s income more than doubled between 1957 and 2002, yet the share of people reporting themselves to be very happy over that period remained static.

Happiness is best predicted by the breadth and depth of one’s social connections. People who are socially connected tend to be healthier—often significantly so. More than a dozen long-term studies in Japan, Scandinavia, and the United States show that the chances of dying in a given year, no matter the cause, is two to five times greater for people who are isolated than for socially connected people.

International development professionals also now acknowledge that strong social ties are a major contributor to a country’s development. The World Bank, for instance, sees social connectedness as a form of capital—an asset that yields a stream of benefits useful for development.

Creating a higher quality of life requires us to help create new political, physical, and cultural infrastructures of well-being. Pakistan has no such infrastructure and is thus ranked 167 out of 180 countries in Well-being Index. Sri Lanka ranks 49 and Bangladesh 131. Interestingly, Nigeria ranks 133, a position better than Pakistan.

Year after year, the Human Development Index report shows Pakistan lagging behind the rest of the regional countries. Our investment in realizing the human potential remains the lowest in South Asia. The HDI report lists a shocking situation of the poor quality of life in Pakistan.

The standard tool used to measure societal health, GDP, is much too narrow to serve as a yardstick of well-being because it sums all economic transactions, regardless of their contribution to quality of life. It also ignores entire swaths of non-market activity that contribute to individual and society well-being.

A well-being society would offer consumers a sufficient range of genuine choices rather than a large array of virtually identical products. Businesses would be encouraged through economic incentives to deliver what consumers really seek—reliable transportation, not necessarily a car; or strong neighborhood relationships in lieu of a large house with a big yard. Choice would be redefined to mean options for increasing quality of life rather than selections among individual products or services.

If focused on well-being Pakistani society would ensure that everyone in it has access to healthy food, clean water and sanitation, education, health care, and physical security. It is virtually impossible to imagine a society of well-being that does not provide for people’s basic needs.

Making the transition to a society of well-being is a challenge to the new premier given people’s habit of placing consumption at the apex of societal values. All the same, any move in this direction starts out with two strong advantages. First, the human family today has a base of knowledge, technology that can be invested in well-being rather than in continued material accumulation for its own sake. A second advantage is simple but powerful: for many people, a life of well-being is preferred to a life of high consumption.

By nurturing relationships, facilitating healthy choices, learning to live in harmony with nature, and tending to the basic needs of all, the PPP Government will leave its indelible footprints in history if it shifts from an emphasis on consumption to an emphasis on well-being. This could be an apposite response to the growing number of suicidal deaths due to poverty, and to be his great achievement in the twenty-first century.