Business Principles

The development of the business principles is a first stage for developing and raising the standards of practice in countering bribery. The fair business principles provide a practical tool to which companies can look for a comprehensive reference to good practice to counter bribery. Business principles are becoming an essential tool in the future for businesses and the companies of today should encourage using them as a starting point for developing their own anti-bribery systems or as a benchmark.

I had heard and even observed how the Indian businesses add the extras to win export orders. For toting up luster to the evenings of the visiting business partners particularly from Gulf States, they fix up their visits to discotheques and nightspots. They also maintain luxury flats outfitted with floozy beauties for making the stay of the business guests a unique affair.

Unfortunately, such unethical practices have sneaked into our system via some (not all) Pakistani businesses. That’s what I personally experienced when once as member of a foreign business team visiting Pakistan and staying at a hotel in Karachi, a Pakistani knowing that a Pakistani was member of the importers group, tried unethical tricks to win business contracts. He called from the lobby and told about the undeserved and undesired gift he brought for me.

Years ago in a Lahore-Islamabad flight a passenger seated next to me told that he was visiting Islamabad about a tender business. He was confident that he would win the contract. When I asked about the source of his confidence he pointed to two girls seated in the rear and said, “Those butterflies (exquisite women) will make it happen.”

Most of Pakistan’s private sector contributes to election campaigns of this candidate or that. Interestingly sometimes some companies sponsor candidates of two opposing political parties. The idea is to get unjustifiable favors after the horse wins.

There can be endless list of such companies, which are ready to do anything to get business favors.

It is no mystery that a lapse in business ethics or even the appearance of one can significantly harm the reputation and business of a company. Once a company is suspected, accused, or found guilty of corporate wrongdoing, it often becomes subject to the scrutiny of governmental agencies, the corporate community and the general public.

Private sector organizations must now take account of increasingly stringent domestic and international regulatory frameworks. There is growing corporate awareness of the risks posed by bribery, particularly in the light of scandals, and the public is expecting greater accountability and probity from the corporate sector.

Emphasis needs to be laid on business principles for enterprises to prohibit bribery in any form whether direct or indirect. They should also commit to implementation of programs for countering bribery. These principles are based on a commitment to fundamental values of integrity, transparency and accountability. Firms should aim to create and maintain a trust-based and inclusive internal culture in which bribery is not tolerated.

Thus an enterprise’s anti-bribery efforts including values, policies, processes, training and guidance will become tools of future corporate governance and risk management strategies for countering bribery and unethical practices.

As part of civil society, at macro level, Federation of the Chambers of Commerce and Industry of Pakistan, should work out a framework reflecting size of the companies, business sectors, potential risks and locations of operations. This should, clearly and in reasonable detail, articulate values, policies and procedures for preventing bribery from occurring in all activities under their effective control.

Such programs should be consistent with all laws relevant to countering bribery in all the jurisdictions in which an enterprise operates, particularly laws that are directly relevant to specific business practices.

At micro level each enterprise should develop programs in consultation with its employees, trade unions or other employee representative bodies. It should ensure that it is informed of all matters material to the effective development of the program by communicating with relevant interested parties.

While developing its program for countering bribery, the companies should analyze which specific areas pose the greatest risks from bribery. The programs should address the most prevalent forms of bribery relevant to each firm but at a minimum should cover areas such as bribes, political contributions, facilitation payments, gifts, hospitality and expenses.

A company should prohibit the offer, gift, or acceptance of a bribe in any form, including kickbacks, on any portion of a contract payment, or the use of other routes or channels to provide improper benefits to customers, agents, contractors, suppliers or employees of any such party or government officials.

It should also prohibit an employee from arranging or accepting a bribe or kickback from customers, agents, contractors, suppliers, or employees of any such party or from government officials, for the employee’s benefit or that of the employee’s family, friends, associates or acquaintances.

The enterprise, its employees or agents should not make direct or indirect contributions to political parties, organizations or individuals engaged in politics, as a way of obtaining advantage in business transactions.

Each company should publicly disclose all its political contributions, charitable contributions and sponsorships. It should ensure that charitable contributions and sponsorships are not being used as a subterfuge for bribery.

The enterprise should prohibit the offer or receipt of gifts, hospitality or expenses whenever such arrangements could affect the outcome of business transactions and are not reasonable and bona fide expenditures.

The board of directors, CEOs and senior management should demonstrate visible and active commitment to the implementation of the business principles.

The business organizations should assert elimination of bribery; demonstrate their commitment to countering bribery; and make a positive contribution to improving business standards of integrity, transparency and accountability wherever they operate. Business principles are going to evolve reflection of changes in anti-bribery practice as well as the lessons learned from their use and application by business.

Bureaucracy and Change

While new technologies, new paradigms of governance, and new management structures are being put forward the bureaucracy of Pakistan is driving into the future using only rear view mirror.

At the beginning of the twenty-first century, change is everywhere. The reality of yesterday proves wrong today, and nobody really knows what will be the truth tomorrow. Social, political and economic change has come fast like a small boat dancing on the waves. People feel that they do not have any influence In the mainstream of this environmental milieu, people of Pakistan are detesting bureaucracy, from inside and outside: red tape, punctiliousness, delay, extra social overhead, unresponsive monopoly of authority; professional deficiency; and obsolete policy planning.

Below the politically appointed ministers is the civil service. Efforts to reform and modernize the traditional civil service were never made to improve the professional competencies of senior civil servants. The prevailing unanswered issues demonstrate that the training acquired by government officers at NIPA or Pakistan Administrative Staff College is ineffective, redundant and unproductive. Thus the need to reform has fallen behind its expansion in size and functions, making Pakistan an over-administered society. All governments pared back the state's control over the economy but failed to restrain the growth of the state bureaucracy and allowed its standards and efficiency to decline.

Our bureaucracy tries to fulfill government strategies, which had been formulated years ago, under totally different baseline conditions. Service quality is often not more than an empty phrase. The competence of our bureaucracy can be measured from the fact that it could not workout a policy for urbanization. Consequently, luckless consumers continue to be treated worse than one-time colonial rulers. Everyone has tales of dealing with bureaucrats who seem utterly unsympathetic to real problems and explain why the rules don’t allow a solution.

Our bureaucracy has utterly failed in using creativity in policy making. Thus, it could not generate new ideas for issues like unemployment, economic development and poverty alleviation. Management creativity is about using simple techniques to find innovative solutions to prevailing problems. And creativity, which is extraterrestrial skill to our bureaucracy, isn't just nice-to-have. In a fast change, furious public administration, it's a matter of survival.

Change happens. And while we can't control much of the world changing around us, we should know how to respond. We can choose to anticipate and embrace changes or resist them. Resisting change is like trying to push water upstream. Our bureaucracy is recognized as the one that resists change. It's much harder for bureaucracy to admit to its own change resistance.

Pakistan’s bureaucracy defends the status quo long past the time when the quo has lost its status. (Status Quo Ante Erat is, literally, state of things as it was before, meaning the present current, existing state of affairs. "Maintaining the Status quo" usually connotes to "keep things the way they presently are").

There are some problems with bureaucracies: red tape, duplication, and waste. Red tape is the existence of complex rules and procedures that must be followed to get something done. Duplication occurs when two government agencies seem to be doing the same thing, such as when the Customs Service and the Narcotics Control Board both attempt to intercept illegally smuggled drugs.

Our bureaucratic structure has failed owing to lack of management scientists, competent economists, and outstanding professionals. Brain drain is another reason. No institution has ever attempted to develop a national agglomeration of competent managers. All academic institutions are ineffective.

Today's bureaucracy continues without an object, multiple layers of unneeded staff, endless reports with little value, and gridlock. The basic managerial models and practices within government are behind those used today. The system itself facilitates entrenchment, mediocrity, decay and inertia. Given these assertions as premises it should be explored what can be learned and translated from the private sector's organizational structures and practices to cause a renaissance in bureaucracy. Organizational schema as well as leadership and managerial practices can be explored for their potential to contribute to bureaucracy.

The amount of information and data is doubling every few years. Even in poorer economies Intranet is being used for inter-department data transfer, files exchange, and information share, but our bureaucracy is far from the fundamental concepts of Management Information Service. In this situation of sheer chaos, suddenly computer network offers a new order. When the world has largely benefited from the fruits of computer use, a question might be asked: do our government managers know computer basics?

The bureaucracy of Pakistan should move away from rule governance to value-based management. Value-based management seeks to give employees more freedom when carrying out their job functions. In a time of radical change, increased public expectations and many new tasks, the bureaucratic structure needs to be able to provide a flexible service. Rules and procedures, which are far too rigid, can prevent the public obtaining a service that matches their needs and wishes. But if value-based management is to work, a common set of values is required.

The goal - or vision - for value-based management should be the set of values adopted by Pakistan’s civil bureaucracy. These values require that Islamabad, as the capital and influential center for South Asian Region, must act as the driving force behind human, cultural and economic development. It is imperative that our bureaucracy can provide services, which transforms it to a role model.

We need to inculcate professionalism, expertise, competence and systems to make our civil services, meet the realities of the 21st century. This is high time to part ways from poor governance, inertia, lack of knowledge that spawned a culture in which wasteful expenditures, leakages of resources and low efficiency are the norm. Sound policies cannot see the light of day until our institutional capacity is strengthened and reoriented. Change in the brass tacks of our bureaucracy provides a way into the future. (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)

Perishing from Earth

As in the experience of all other civilizations it can be with us if we do not recognize the principles for survival. If we failed to learn from history and recognize the future trends we will eventually go back into darkness from whence we came, and we the people will perish from the earth.

If you retrace your thoughts back to where there were those old civilizations, some five or six thousand years ago, the Egyptians, you will find that they were very intelligent, highly advanced but through corruption, selfishness, prejudice and moral degradation went into the debris of ancient history. We, in this advanced civilization, are representing similar predilections, can also follow the same destiny and go back into the dark-age from whence we came.

Egyptian civilization has been forgotten. It went down, not just mentally, scientifically, intellectually, but also physically, to let us see and know that those who go down mentally and do not alter their ways also go down physically.

After the Independence, we lost our vision, transformed into one of the corrupt nations worldwide, all the nasty crimes once akin to the West are now dominating our national life, and last but not the least each individual of Pakistan seems to be on the looting binge. Instead of contributing our role in nation building, we started pillaging our own land. When we are nurturing the same traits that caused extinction of Egyptian Civilization, why then our destiny would be any different?

The societies that sustain physically, mentally, and otherwise are those which undergo a series of divergences in development, much like the branching of a tree. The dynamic people are those who are responsive to issues, essentially open, fast paced, balanced, and tend to survive and prosper on a fairly reliable basis. Problems come to them, but they usually manage to work them out.

The struggling society of Pakistan, contrarily, outdoes the people in narrow areas of endeavor from time to time, and becoming more retarded in overall development as time goes by.

Outwardly, we are a developing society. But like a muscular athlete with a terminal cancer, a disease is eating away at us from the inside. A well-balanced nation cannot be destroyed from the outside until it falls first from the inside.

No matter how well we might arm ourselves against enemies outside our borders, we need to primarily identify the more detrimental enemy. And this greatest enemy is none else but us, who place destructive devices inside our destructive minds, causing us to morally implode, like an imploding building.

Ever since independence in 1947, we have experienced a complete abandonment of our sense of good and evil. The true crisis of our time has nothing to do with monetary troubles, unemployment, or terrorism. The true crisis has to do with the fact that we have lost our way.

If you drop a frog into a pot of boiling water, the frog will immediately jump out. But if you place the frog in a pot of lukewarm water and slowly turn up the heat, the relaxed frog will just swim around, growing accustomed to the increasing warmth until it eventually boils to death. This is what is happening to us and our cultural decay. It is a gradual process that slowly dulls our senses until what was once seen as unacceptable somehow becomes acceptable.

After the death of Quaid-e-Azam, we have allowed corruption to creep into our society as a way of life. Thus, we have become desensitized to corruption and our moral judgment is impaired. Even worse, at each step along the way, we eliminated Islamic injunctions from our lives and culture.

What will remain of civilization and history if the accumulated influence of Islam, both direct and indirect, is eradicated from literature, art, practical dealings, moral standards, and creativeness in the different activities of mind and spirit?

Consequently, a flood of immorality, corruption and violence has entered into our national life, and we have unfortunately been recognized as a culture of death from the womb to the streets. Many of our young people have no concept of the true spirit of Islam and are connoting falsely to satisfy their political agendas. Hence, many are tragically engaged in dying or killing the innocents. A sense of hopelessness prevails, a feeling of fear surrounds.

We have forgotten our true nature, divinity, because scientifically it cannot be proved! We are ignorant of true purpose of life. Values like solidarity, natural love, forbearance, compassion, generosity, and altruism do not find any place independent of an 'individual'.

The culture shows signs of degeneration into lawlessness, disease, and want on one hand, and affluence and sense gratification of wanton degree on the other. With this decline in cultural values, ethical values are also eroded. Not one particular field is afflicted with this 'virus of corruption'; all departments of human interaction show the same trend. It is difficult to find an isolated island of purity in the sea of corruption all around.

Ethics is the reflection of cultural health of the society. In course of evolution of human societies, man creates progressive cultural and moral ethos. But then a stage comes when cultural growth slows down for want of fresh ideas. Consequently ethics also remain a mere shadow of its own previous glory. However, when matter is worshiped as supreme and privileges are sought after, ethical decline is not a surprise. The remedy lies in adding spiritual dimension to existing culture and in course evolving a new moral and ethical code for coming generations. Time is still not gone. We can learn lessons from Egyptian civilization or else face extinction. Choice is only ours. (www.asifjmir.com)

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.

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)