No consensus
Monday, 25 May, 2009
ON Friday, Sardar Assef Ahmed Ali, deputy chairman of the Planning Commission of Pakistan, told the media in Islamabad that the controversial Kalabagh dam remained on the list of key water and power projects. The dam had been announced as scrapped by the water and power minister shortly after the inauguration of the new government last year because of the opposition to the project by the smaller provinces. Now we are told that the dam would be built but only after the removal of objections. There appears to be little likelihood of consensus on this issue in the foreseeable future. The Musharraf government’s effort to build consensus on the project boomeranged and the three small provinces passed resolutions against it in their assemblies. In Sindh, for the past 16 years, the Thar coal project has also been subjected to delays. But here, the delay has been caused by a dispute between Islamabad and Karachi over the managing rights. The good news is that the president is trying to find a middle way to kick off work on the project that promises the country pure gold: 10,000 megawatts of electricity.
The dispute over the two projects considered crucial for cheap energy production and water storage for agriculture is indicative of the deeper, long-standing issue of provincial autonomy. The 1973 Constitution, and other previous documents for that matter, allow free inter-provincial movement of labour, goods and services — although Punjab sometimes tends to curb wheat movement out of its territory — which have largely fostered a ‘common economic market’ in the country. This generally free movement is a remarkable achievement given the tensions such an issue can generate and has done so all over the world. On the other hand, the centre seeks to maintain its control on many subjects that should have long been transferred to the provinces. Besides, the smaller provinces suspect the centre is tilted towards protecting the rights of Punjab. Working against the federation as these suspicions do, they also jeopardise collective economic interests. The controversy over Kalabagh dam and the dispute over the Thar coal project are just two examples.
Inter-provincial disputes are hurting the country’s economic interests. The situation demands that the centre scrap the concurrent list as promised by the prime minister soon after he took oath. Punjab could also contribute to inter-provincial harmony by supporting the smaller provinces’ demand to change the formula for inter-provincial distribution of funds under the National Finance Commission. It could make up for its loss on account of the changed formula by convincing Islamabad to substantially increase the provincial share from the divisible tax pool and hand over revenue-generating provincial sales tax on services to the provinces. If it does so, Punjab will find the smaller provinces supporting it.
************************************************** ********
A devastated economy
Monday, 25 May, 2009
NECESSARY as it had become to fight the militants in Malakand division, the military option was always going to have severe consequences on the civilian population of the area. At the moment, the immediate plight of the IDPs and the need for relief operations has preoccupied the state and its international allies. However, already there are disturbing signs of the tough road ahead for the IDPs even if they can return to their homes sooner rather than later. AFP has reported that the IDPs “fear hardship and hunger as crops spoil in untended fields, with aid agencies warning that it could take years for farmers to recover”. Wheat, maize and vegetables — subsistence crops for Malakand’s poor farmers — are all set to rot and deal another devastating blow to the region’s economy. The problem is that the inability to harvest the crop will not only leave the people wholly reliant on food aid, but they will also be unable to earn any money to pay for the resources needed to sow the next crop. This means that even if the military operation could be wrapped up in the next few weeks or months, the people of Malakand will still need a great deal of help from the state for the foreseeable future. The fact is, after the implosion of the tourism economy in the country’s northwest, the latest blow to the other main source of subsistence for the region’s population has for all intents and purposes created an economic void — a dangerous situation in an area where a counter-insurgency is being fought.
State planners will have to address the economic plight of the people in the northwest or else risk the population embracing the militants in order to survive. If the choice is between survival and starvation, the people will make the rational choice and turn to cash-rich militants, who may seek to hide among the population and drag the state into a drawn-out guerrilla war. Of course, none of this is unexpected — the military operation was always going to severely impact the local economy — but it does highlight the fact that a successful counter-insurgency campaign continues long after the guns have fallen silent. In this regard, it is good that the government is at least thinking along the right lines; the ‘3R’ approach — relief, rehabilitation and reconstruction — is a sensible one. However, there’s many a slip ’twixt cup and lip; having a plan is very different from implementing it. The IDPs should not be left to fend for themselves when they return home.
************************************************** ********
People take on Taliban
Monday, 25 May, 2009
EVEN the worm turns. For long left at the mercy of the Taliban, the people of the Swat valley now seem to be mustering the courage to stand up to the rebels and fight back. As reported in this newspaper on Saturday, the effectiveness of the army’s operations against the Taliban has encouraged the non-combatants to organise their own defence to foil the Taliban’s attempt to re-enter the villages from where they had been dislodged by the army. Last Thursday non-combatants in Kalam beat back attempts by the rebels to get a foothold in the area to resume their activities. Even though a minority, the Taliban have shown ruthlessness in their attempt to impose their version of religion on the people of Swat, who traditionally have been cosmopolitan in outlook because of the valley’s tourism economy. The most barbaric aspect of the Taliban philosophy revealed itself in their attitude towards women: they beat up even those who had the ‘audacity’ to go to bazaars for essential shopping wearing a burka. They also brazenly advertised their anti-modernity ideology by blowing up schools and colleges. Devoid of the rudimentary concepts of compassion and mercy, the Taliban have slaughtered people and shown off their acts of barbarism on video.
Having destroyed the once-flourishing tourist trade, the Taliban further hurt the people’s livelihood by threatening tailors and barbers and blowing up CD shops. No wonder the people of Swat have realised that it is their own survival that is at stake and that they have no choice but to help the army crush the rebels. What the government should note is that this change in attitude has occurred because the army has finally decided to do its job to destroy the enemy. If they have confidence that the government will not once again make a ‘deal’ with the Taliban, and the army will not abandon them, the people may be more encouraged to fight the Taliban and be an asset in a conflict that has countrywide ramifications.
************************************************** ********
OTHER VOICES - North American Press Get moving on worker mobility
Monday, 25 May, 2009
MANY countries, especially the US under Barack Obama, are using the global recession to reform their societies, such as changing the rules on credit. They want to be more competitive when their economy revives. Many, however, overlook one idea that provides a strong edge: making it easier for workers to move to new jobs. For decades, the US has had such an edge with its high rate of labour mobility….
The Christian Science Monitor
But the Census Bureau reports that the nation’s “mobility rate” in 2008 set a post-World War II record low. Also last year, the smallest number of residents moved since 1962…. This stay-put trend began before the current recession, which suggests its causes are diverse and difficult to reverse. But more recently, the housing crisis has left a rising number of Americans trapped with mortgages worth more than their home — about a one-fifth of all mortgage holders. This makes it difficult to sell a house in order to move … or to train elsewhere for new skills.
Washington may be on track in considering such mobility-enhancing ideas as allowing workers to keep healthcare insurance if they move to a new job or making it easier to obtain job training anywhere while on unemployment benefits. But it must be bolder to restore America’s mobility. The housing market, for example, needs reforms that help people find renting as financially advantageous as owning a home…. Companies, too, must provide better incentives for current or prospective workers to move…. Despite an unemployment rate of more than eight per cent in the US, more than three million jobs are still available…. The American dream of upward mobility for all has faded with this latest trend against moving. Both government and business can do more to keep the dream alive. — (May 21)