Friday, March 5, 2010

Privatization of Key State Functions in Pakistan

The last few years in Pakistan have seen significant proliferation of privatization of traditional state functions. There are a growing number of private security companies providing armed guards, private toll roads, private education at all levels, private hospitals and clinics, private water delivery businesses, and private clubs. Instead of helping improve the situation for all of their fellow citizens, it seems that the Pakistani elite are retreating into their own shells to isolate themselves from the terrible effects of deteriorating governance in their land.

Privatization wave is not limited to Pakistan alone. Prompted by growing security concerns and faced with huge budget deficits, the United States is seeing increasing privatization of security functions, often referred to as "dual law enforcement". Gated communities patrolled by private security guards are popping up all over the United States. Privately operated prisons are also growing, along with private police forces in America.

The US wars in Afghanistan and Iraq have seen new highs in levels of privatization in intelligence and combat support roles. The number of US contractors working for the US military and the CIA in the Afghanistan and Pakistan region exceeds the total strength of the US troops and CIA personnel, according to estimates by Jimmy Scahill who has researched and written extensively about Blackwater (aka Xe Services). The presence of over 80,000 US military and intelligence contractors in Afghanistan and Pakistan makes the level of privatization of war unprecedented. US is reportedly employing private security contractors provided by the American private military company (PMC) Dyncorp to carry out intelligence and security operations in Pakistan.

Pakistan's neighbor India, too, has hired, armed and trained private militias like Salwa Judum in its war against the Maoists in Chhattisgarh and other Indian states. There have been allegations in the past two years of rape, murder and extortion by Judum and other such private armies backed by the state.

Sweden based security firm Securitas is emerging as one of the largest private security contractors in the world. Securitas has acquired companies to become a player in many countries from the Czech Republic to Mexico and Morocco.

Another private global security company G4S Wackenhut has presence in Pakistan, with its headquarters located in Karachi. It provides services such as armed guards, cash services, security systems, facility management, research & collection services, canine services, consultancy & risk management, to its Pakistani clients.

“These recent acquisitions (by private security corporations) reflect opportunities created by the current economic crisis. Global security providers like Securitas aspire to continual global growth and expansion, and their biggest profit margins are generally in emerging markets. As profits come under pressure in the more mature markets of Europe and North America, a global acquisition strategy becomes even more important,” Professor Rita Abrahamsen and Professor Michael C Williams of the Graduate School of Public and International Affairs at the University of Ottawa, told ISN Security Watch.

Local government services are being cut in many areas in the United States. California city of Tracy has decided to charge residents for responding to emergency calls. Residents can pay a $48 voluntary fee for the year which allows them to call 9-1-1 as many times as necessary. Or, there's the option of not signing up for the annual fee. Instead, they will be charged $300 if they make a call for help.

At a recent debate organized by Intelligence Squared, the attendees voted in the affirmative for the motion that "California is the First Failed State", because of its inability to provide basic services to its residents, like those in Tracy, California.

Here's a tongue-in-cheek guest post by freelance writer Syed F. Hussaini. It pushes the envelope by proposing privatization of police functions for improving the deteriorating law and order situation in Pakistan:

Pakistanis were heartbroken to see The National Geographic casually listing their country as a failed state in its September, 2009, issue.

There is no calibrated scale to measure how bad is the breakdown of law and order in Pakistan. One convenient barometer can be the personal experience. How many people an ordinary Joe knows who had been a victim of a recent crime? This simple, first hand approach would tell us that the gravity of the problem has reached a level where almost every single individual has a recent story to tell of how he himself or, a family member or friend, became a victim of a crime. It was not so in the 1970s. Back then, incidents of pickpocketing aside, a common man had to search his mind hard to think of somebody he personally knew as a crime victim.

The inability of the state to maintain law and order created a market which has since been growing steadily. Private security companies provide armed guards at the homes of the rich who now travel in convoys of sport utility vehicles loaded with gunmen. Private citizens are dispensing ready justice on the streets of big Pakistani towns burning robbery suspects alive. And, security service providers appear to be working hard to catch up with the enormous needs of this vast market of 173 million consumers.

It is not the first time the private sector is seen marching into the domain of the state and bringing in some positive change. Once upon a time, you needed good connections to get a telephone connection in Pakistan. Or, you had to pay tens of thousands of rupees as bribe to the government officials at the telephone department to have a phone line brought to your home or office.

Things changed. The winds of privatization blew away the monopoly of the telephone department and the advent of the cell phone sent armies of sales personnel chasing the consumers. Overnight, the culture of bribes disappeared from the telephone industry; at least, at the consumer end. Pakistanis would love to see a similar change in the law and order business.



If a guy goes to a police station in Pakistan to report that his car had been stolen, he has to pay thousands of rupees as bribe to have his complaint registered in the precinct records. He is robbed twice, unless he has connections.

Newspapers report robberies committed by police officers. Legend goes that the top police officials auction off the precincts to subordinate officers. The highest bidder is appointed the station house officer as the auction proceeds precinct by precinct.

Gangs run gambling, narcotics, alcohol, prostitution and other illicit businesses and pay the police off to look the other way. The police make additional money by extorting side-walk vendors, transport operators or the law-abiding motorists.

Then, there are the walk-ins seeking justice. They come in to report they had been robbed at gunpoint out on the street or at home, of their wallets, cell phones, motorcycles, automobiles or other possessions. At the precinct, everybody has to pay to have a report registered. That is good, sound, multi-billion-rupee business.

This huge revenue would be the greatest incentive for the private sector to jump into the arena of law-enforcement. Privately-owned companies can set up offices right next to the police stations and start registering First Investigation Reports (F.I.R.) for a fee. Competition between these companies would guarantee fair prices for this service.

Armed with proper government licenses, permits and authority and escorted by lawyers, these private companies can take these reports to the police precinct and have them entered into the government records.

The extortionist police officers at the precinct would lose their leverage over the lone, helpless, scared and stressed out crime victim trying to file an F.I.R. He would never set foot in their den. The police officers would think twice before they mess with the representatives of a licensed, multi-billion-rupee law-enforcement company with its corporate offices adjacent to the interior ministry in Islamabad and at the four provincial capitals.

These private companies in Pakistan can bring some law and order back to the streets of rough neighborhoods by arrays of surveillance cameras and patrols paid for by the crime-weary residents and businesses.

Such companies can set up competent crime scene investigation units and modern forensic and DNA testing labs. Their possible clients would be the families of missing or kidnapped persons and the insurance companies trying to recover stolen property, like automobiles, insured by them.

Pakistan's political leaders are mostly feudal lords or tribal chiefs. It is almost a master-slave relationship between the elected politician and the common man. A government job in Pakistan is a license to steal and extort. It is a parasite-host relationship between a government official and the common man.

However, the relationship between the industrial-business class and the common man in Pakistan is essentially a retailer-consumer one; in essence, an interactive business relationship. It is not an oppressively lopsided master-slave or parasite-host relationship. That is a great qualitative difference, a beacon of hope and solid ground to start working together for a change in the country to bring back the rule of law for mutual benefit.

Another common factor between the industrial-business class and the common man is the fear of being kidnapped for ransom. As the poor common man walks down the street looking over his shoulder, the poor rich man is firmly denied the simple pleasure of a stroll around his own mansion. The rich generate more ransom revenue, run more risk of being kidnapped and live in more fear. They, too, would like to leave their palaces by themselves any hour of day or night without any armed escort and just walk up to the roadside restaurant next block for an ice-cream or, a cup of tea, the way they did back in the 1970s.

True administration of justice, the firmest pillar of good government, is a related issue. Pakistani courts are overwhelmed with a backlog of unresolved cases. There are instances where the complainant and the respondent both have long been dead, killing the case itself. The courts do not know this because they do not have the resources to sift through their backlog for dead cases. There are cases where two parties are just looking for mediation, a fair adjudication, a lawful compromise. Buried in the backlog, the courts are unable to provide even this simple judicial service.

However, government-licensed private courts can provide these simple but essential judicial services swiftly. It would drastically reduce the backlog at the state courts. With their performance and quality of adjudication, these private courts may prompt the state courts to improve their own image.

Over decades, private companies moved into education, water supply and health care as the state failed to perform in these sectors. Now is the time for Pakistani tycoons to move into the business of maintaining law and order and administration of justice.

Free enterprise and competition compel the cell phone companies in Pakistan to offer the best price and the best service to their poorest consumers.

The market forces would compel the private sector to guarantee true administration of justice in Pakistan.


Related Links:

Crises Worsen Class Divide in Pakistan

Are India and Pakistan Failed States?

Eleven Days in Karachi

Armed and Dangerous: Private Police on the March

Pakistan Telecom Boom

US-induced Privatization of Security in Pakistan

Jinnah's Pakistan Booms Amidst Doom and Gloom

Incompetence Worse Than Corruption

Creative Financing of Pakistan's Energy Projects

Pakistan's Energy Crisis

Light Candles, Do Not Curse Darkness

Taliban Exploiting Class Rifts in Pakistan

Water Scarcity in Pakistan

Salman Ahmed Rocks Silicon Valley

Life Goes On in Pakistan

Pakistan's Higher Education Reform

10 comments:

Riaz Haq said...

Here is a BBC report on kidnap-for-ransom criminal business in Pakistan, highlighted by the kidnapping of a British Pakistani child in Jhelum:

The kidnapping of young Briton Sahil Saeed has focused the international spotlight on one of Pakistan's more murky secrets.

Kidnapping for ransom is one of the most profitable and widespread criminal enterprises in the country. But it is one that has, until now, been fairly well hidden.

Five-year-old Sahil was kidnapped after armed men broke into his family home in the town of Jhelum in central Punjab province.

Since then, amid huge media attention, the police have been making an all-out effort to recover him.

Those efforts at the moment appear to have reached an impasse.

'Mistake'

"The main thing to do at the moment is not to lose hope," says Jameel Yusuf, one of Pakistan's top anti-kidnapping experts.

Mr Yusuf is the former head of the Citizen Police Liaison Committee (CPLC), a unique joint venture between officers and citizens in Pakistan's largest city of Karachi.

The committee was formed in 1990 to tackle abductions in collaboration with government security agencies.

While the CPLC has broadened its functions, kidnapping for ransom has remained its forte.

Mr Yusuf has been involved in the investigation of more than 400 cases, most of which have been solved.

He was instrumental in the investigation into the kidnapping of US journalist Daniel Pearl, playing a key role in the arrest of the culprits.

Of the Sahil case, Mr Yusuf says: "Whoever made the decision to go public made a mistake.

"In a kidnapping for ransom, the best thing you can do is to keep the matter as quiet as possible.

"This goes doubly for a child, who is much more difficult to handle than an adult."

Mr Yusuf says it is clear from the facts that these are not professional kidnappers - the gangs who make abduction for ransom a regular trade in Pakistan.

It is a big business. In 2009, 480 people were officially recognised as having been kidnapped for ransom in Pakistan.

But the figure is misleading - as police try to separate kidnapping for ransom from simple kidnappings, which are related to what they term family incidents.

"The police often do this to lower crime statistics", says Mr Yusuf.

"A person is listed as having been 'kidnapped' if a family member, or a close friend or associate, is involved.

"The police only register the case as being 'kidnapping for ransom' if a known gang of professional kidnappers is involved."

Such gangs abound in Pakistan.

They are especially active in the industrial regions of the Punjab and in Karachi.

The targets are mostly rich businessmen and entrepreneurs or their family members.

The gangs often have a threefold set-up.

One team stakes out and kidnaps the target and then hands the victim to a middleman.

The middleman then transfers the person to a third party, who keeps the victim until a successful bargain is made.

This is usually in an area such as Pakistan's tribal region, where police have no control.

Death penalty

While such organised gangs play a large role in Pakistan's kidnapping industry, they are not the only ones involved.

Many smaller gangs or petty criminals are also active, especially in small rural communities or within the baradari (trade-based community) network of the Punjab.

The victims are usually known, or even related, to the culprits.

Mr Yusuf says "kidnapping" carries a penalty of up to life in jail, whereas "kidnapping for ransom" can carry the death penalty, which is often enforced.

If the cases of "kidnapping for ransom" in 2009 were below 500 in all of Pakistan, "kidnap" cases in Punjab alone were more than 11,000 in the same year.

Riaz Haq said...

Here's recent piece in the Guardian from its departing Indian correspondent Randeep Ramesh after six years in India:

In my six years there, it was hard not to be infected by the hubris of India – a nation that feels part of history, an essential actor on the global stage. Yet even as I admired a country that had thrived as a democracy despite unbounded poverty, mass illiteracy and entrenched social divides, experiencing India as a reporter was a string of enervating and dispiriting episodes.

Whether I was visiting a rural police station where half-naked men were hung from the ceiling during an interrogation, or talking to the parents of a baby bulldozed to death in a slum clearance, the romance of India's idealism was undone by its awful daily reality. The venality, mediocrity and indiscipline of its ruling class would be comical but for the fact that politicians appeared incapable of doing anything for the 836 million people who live on 25p a day.

The selling of public office for private gain was so bad that the only way to make poverty history in India would be to make every person a politician. Last year the wealth of local representatives in the northern state of Haryana rose at an astonishing rate of £10,000 a month. Their constituents were lucky if their income increased by a few pounds.

Riaz Haq said...

Here is Soutik Biswas of the BBC on India's vast bureaucracy:

Like the UK and other countries, India hires it civil service recruits through competitive examinations. But its bureaucrats also face being moved around much more frequently than elsewhere. At least half of those working for the Indian Administrative Service - the country's fabled "steel frame" - spend less than a year in a single position, studies have found.

They can also end up working for India's vast number of state-run factories, hotels and airlines without much experience. So an official administering a small north-eastern state ends up running an ailing airline or a senior policeman can head up a liquor company. Most state-run companies - Air India is a good example - are poorly run, critics say, and perpetually in the red.

Bureaucrats are also hobbled by interference as politicians promote, demote or transfer them at will. There is corruption among a section of officers. Few alternate between state and federal governments, leading to accusations of provincialism in the ranks. More worryingly, some officers are perceived as champions of their religious or caste-based communities and act as "protectors" of their group's interests.

India has a range of forward-looking policies but a poor record on implementing them - for which many say bureaucrats must take a major share of the blame.

It's not as if those in charge are blind to the need for civil service reform: I have counted nearly three dozen reports and committees set up by the government since 1947 to streamline and modernise the bureaucracy. "There is growing concern that our civil services and administration in general have become wooden, inflexible, self-perpetuating and inward-looking," said one government paper.

The question is why does a bureaucracy which does a fine job in some areas - rehabilitating tsunami victims, managing millions at religious festivals, conducting the world's biggest elections - struggle to conduct day-to-day affairs of the state smoothly?

The answer may be simple. India's bureaucrats need to be insulated from political influence, observers say. They deserve transparent appointments and promotions and fixed tenures. The civil service needs a code of ethics. But most important, as one analyst says, is the need to develop a "climate of probity in public life".


Many of these observations apply to Pakistani bureaucracy as well.

Riaz Haq said...

Here's an excerpt from a paper on police reform in India by Maja Daruwala, G.P Joshi, Mandeep Tiwana:

The Police Act of 1861 governs most police forces in India. Some states like Maharashtra, Gujarat, Kerala and Delhi have indeed enacted their own Acts but even these closely resemble and are modeled on the Act of 1861.1 The National Police Commission, 1979-81 (NPC) was alive to the need for reform in legislation governing the police and went on draft a ‘Model Police Act’ in its Eighth Report submitted in
1981. Unfortunately, this proposed bill, which was developed as a response to the context of the times, and addressed to end some of the ills that plague policing has not been adopted by any state. Nevertheless, it has served as the template for nascent initiatives for many who are trying to replace the out of date Police Acts in their states with more relevant legislation.2
However, these initiatives, coming by and large from within the police establishment itself, have borrowed selectively from the NPC Model in ways that have the effect of strengthening the police establishment without the guarantee of accountability or responsiveness to the public. None of these initiatives has ever crystallised into an Act in any state in India.


http://www.humanrightsinitiative.org/programs/aj/police/papers/advocacy_paper_police_act_1861.pdf

Riaz Haq said...

Here's an Express Tribune story on housing trends in Lahore, Pakistan:

...as the middle class of the city has expanded, real estate developers have now increasingly begun to offer more affordable variants of the gated housing community, primarily by reducing the size of the average house. Builders predict the fastest growth in demand for the 125-square-yard duplex or townhouse, which is made affordable by offering an instalment plan for the full price, which can start as low as Rs1.2 million.

“The higher end of the market is saturated. Now the industry needs to cater to the rapidly growing middle class that is seeking comfortable housing facilities,” said Abdul Aleem Khan, who runs a real estate development business based out of Lahore.

“After completing one project with mostly larger units, I announced that I would build one with smaller, more affordable units and an easy instalment plan,” he said. “The response was very positive. People clearly need affordable housing and this [middle class] is a very neglected market segment.”

Eden Housing, one of the largest real estate companies in Pakistan, was the first to create such housing schemes in the 1990s, which typically include better roads and infrastructure than the rest of the city they are in. Since then, this formula has been copied by many developers, who saw how rapidly Eden was able to sell off its inventory.

“To live in such a community, which provides you with good infrastructure and security, is relaxing,” said Mujahid Ali, a resident of Eden Avenue, a gated community in Lahore developed by Eden Housing. “I moved here two years ago and have the peace of mind that there is no street crime or robberies within the scheme’s premises. My job requires me to visit other cities and I used to worry for my family’s safety. But since moving here, I can travel without that tension.”

Many of the facilities have hired a full-time staff of maintenance staff. The security is often provided by one of the more than 600 private security companies that now hire out both equipment and guards to a Pakistani middle class that is increasingly concerned for its safety.

Lahore has at least two dozen of these gated communities. In keeping with the temperament of the people in the Central Punjab region, there are hardly any apartments. Most of the housing units are bungalows, townhouses or duplexes. Some of the largest units can be spread over as much as 1,200 square yards, with the smallest ones generally being no more than 125 square yards. Other common sizes include 150 and 200 square yard units.

Builders often locate these communities close to major thoroughfares. Yet as real estate within Lahore proper grows increasingly scarce, many developers have begun to create such offerings on the outskirts of the city, taking advantage of the improvements in the transportation infrastructure in Punjab that includes a highway network comparable to that in some parts of the developed world. Once Lahore’s Ring Road is completed, such housing projects will be able to offer even faster access to the inner city.

Khan, the real estate developer, says that nearly all of the buyers of houses in these projects tend to be buying their own primary residences. “These schemes are not really meant for investors,” he said.


http://tribune.com.pk/story/328177/the-rise-of-pakistans-middle-class-as-crime-rises-property-developers-beef-up-security/

Riaz Haq said...

Here's an LA Times story on gated communities in Pakistan:

Reporting from Rawalpindi, Pakistan — The houses and manicured lawns slope up the artificial hill edged by unbroken sidewalks and white picket fences, as children play and residents exchange pleasantries.

This sprawling subdivision called Bahria Town — "Come home to exclusivity," it boasts — operates its own garbage trucks, schools, firehouse, mosques, water supply and rapid-response force — a kind of functioning state within a nonfunctioning one. And all supplied without the bribes you'd pay on the outside, residents say.

"I like living here," said Abdul Rashid, a sixtysomething retired government worker. "It's like you're in a little protected country — tidy, utilities work, the family can relax. If there's any problem, you just ring up security."

The jarring presence of a middle- and upper-class retreat in this increasingly violent nation has been paved, in part, by the involvement of the country's powerful military. Benefiting from laws put in place during British Empire days to reward friendly armies and militias with land grants, the military now controls about 12% of Pakistani state land, by some accounts. And its privileged position allows it to partner with and otherwise route valuable tracts to favored developers.

Bahria Town and its partner, the military-run developer Defense Housing Authority, occupy twice as much land as Rawalpindi, the garrison city 30 minutes from the capital, Islamabad.

In the posh Safari Villas subdivision, past Sunset Avenue and College Road, Mohammad Javed, 69, surveys his pocket garden before heading into his three-bedroom corner house with a beige sofa ensemble and Samsung flat-screen TV. Houses in the neighborhood run from $25,000 to $60,000, well out of reach of most Pakistanis.

Bahria Town has been a hit not only with moneyed Pakistanis but also with returnees. Javed, who owned a gas station in Canada before retiring, hopes to replicate his North American lifestyle. Bahria's protective walls bring security, he said, although he still won't let his grown children visit lest something bad happen beyond its confines. "We meet in Thailand or Canada," he said.
-------
"No one besides the military has such access," she said. Bahria Town advertised on a recent Sunday for retired major generals and lieutenant generals to fill positions at the company, Siddiqa said: "These are his keys" to greater access.

But for resident and food industry entrepreneur Shaheryar Eqbal, these are minor issues relative to what Bahria Town delivers.

"The government should take these communities as a model and replicate them," he said. "The army already has a joint venture with Bahria Town. Things work. Pakistan must get through this terrorism phase, but this could really be the future."


http://articles.latimes.com/2011/oct/06/world/la-fg-pakistan-gated-communities-20111007

Riaz Haq said...

Here's a Daily Beast article on Bahria Town gated communities in Pakistan:

This unlikely playground for wealthy Muslims is the vision of Khan's boss and father-in-law, Malik Riaz Hussain, a 59-year-old billionaire Pakistani contractor. Set between the capital Islamabad and its sister city Rawalpindi, Bahria Town is the "masterpiece" of his 40-year career, a $6 billion project he has funded solo to avoid having to deal with outside investors. Its nine phases, too vast to fully appreciate without standing on one of the plateaus that overlook them, will one day mesh together into a planned residential city for 1 million people. The project broke ground in 1996, and already, many of the 50,000 luxury properties in the development are owned by wealthy Pakistan expatriates who swooped into Bahria Town after 9/11 to buy second homes amid fears they would be driven out of places like London, New York and Los Angeles. Equally important was the security and serenity that Bahria Town provides, which drew Pakistan expats and a smattering of wealthy Arab Muslims away from places like Dubai.

The complex offers amenities (24-hour armed security, schools, hospitals, a fire department, retail shopping, restaurants and entertainment centers) that go above and beyond those in many of the gated communities that have become so popular in countries from the United States to Brazil. Given the nation's security issues, it's especially easy to understand why the rich here want to cloister themselves. Rival Pakistani developers, including one owned by the military, have begun copying Hussain's vision, constructing their own gated communities in the suburbs of major Pakistani cities such as Karachi. Hussain himself is developing a second such site in Lahore, where former prime minister Nawaz Sharif already lives in a gated community called Model Town.

Hussain's original inspiration for the mega-community came from the pre-planned town of Reston, Virginia, just outside Washington, D.C. Materials and design inspiration have been imported from everywhere. In the center of roundabouts sit giant Spanish fountains costing $500,000 a pop; the main streets are lined with palm trees brought in from Thailand; grass for the local golf course comes from the U.S. state of Georgia; the education expert for the 1,100-acre university being built is from Seattle. "When I see America, when I see Britain, when I see Turkey, when I see Malaysia," Hussain says, "the only thing I think is, 'Why not Pakistan?' "

This is Hussain's key notion—that Bahria Town is a world away from Taliban and Qaeda militants, the assassination of Benazir Bhutto and weekly suicide bombings. "This is the real Pakistan," Hussain told NEWSWEEK.


http://www.thedailybeast.com/newsweek/2008/02/23/safe-behind-their-walls.html

Riaz Haq said...

Here's News story on gated communities in Karachi:

KARACHI: Nestled between Safari Park and apartment complexes that define Gulistan-e-Jauhar; lies the KDA Overseas Housing Society. Getting inside the securely guarded compound means offers a glimpse into a lifestyle very different from the crime infested areas that surround the society.

Children are seen riding merrily on their bikes with no adult supervision, while families and individuals can enjoy a peaceful evening along tree covered lanes.

It’s a scene that is at odds with what goes on outside. In general, Jauhar – as it’s called – remains crime ridden and violence prone. Most residents wouldn’t dream of a walk on their own, let alone with families. Increasingly, those who can afford it are moving to safer locales – the overseas society amongst them.

It’s a trend that’s increasing across the city. Gated communities in Karachi have increased by at least 20 percent due to the volatile law and order situation.

The rising threats of kidnapping for ransom and extortion are also major reasons that citizens prefer to live in barred streets.

However, as supply remains limited, gated communities tend to be expensive. Aqeel Karim Dhedi, Chairman of AKD Group, said peole prefer Clifton and Defence due to stability in rental and sale prices.

Dhedi said gated communities have better security arrangements. No outsiders are allowed to enter without reference from residents. This enables residents to enjoy a peaceful environment with their families. Children can move around without any fear. He added that new gated communities are offering a variety of facilities including sports complex, parks, health club, and play grounds, super markets, mosques, schools, shopping arcades, health centers and much more.

Besides the luxuries, another reason to move into a gated community is that it reduces the maintenance cost for security, sanitation, and other general utilities as a fixed monthly charge. The same is much higher in case of a normal residence. For example the maintenance cost in Creek Vista apartment is Rs.10,500 with additional charges for generator and water.

But it’s the new upcoming projects - apartments and houses that redefine the elite urban living experience- that are gated communities in the real sense. Apartment complexes include high speed and personal elevators, servant quarters and backup power. All things required for everyday existence will be available within their barriers.

Mohammad Shafi Jakvani CEO CITI Associates deals with properties in Defence, Clifton, and Shara-e Faysal. He said that the demand for gated community has made their prices appear to be on fire.

This demand that has led to the development of schemes such as LuckyOne at Rahid Minhas Road, BT Icon in Clifton, Com3 Clifton and AKD’s ARKADIAN in Defence Phase VIII. A joint venture between DHA and AKD group, it’s expected to be launched just after Eid. The prices are expected to be in the range of Rs.40million to Rs.50 million, Mohammad Shafi Jakvani said.

Com3’s prices are in the range of Rs.20million to 40 million depending upon the size and location of the property. Three to four bed rooms apartments and duplex houses (two floor apartments) are being offered on 40 months installments, a Com3 Official told the News.

LuckyOne is the first project to offer high end residences for the upper middle income group in the down town area. There will eight towers 1232 apartments of three and four bedrooms, with all facilities available in any of the upcoming gated communities. The most important thing is that the project will generate power itself to avoid load shedding, said Nasir Aziz, technical director at Luckyone .


http://www.thenews.com.pk/Todays-News-3-192729-Gated-communities-offer-security-to-beleaguered-Karachiites

Riaz Haq said...

Dubai close second to London for foreign buyers. Here's a report on Dubai real estate in 2014:

Dubai, 18 February 2014 - Renewed demand from domestic and overseas buyers seeking Dubai property assets is a sign of increasing interest in Dubai's improving real estate market, according to leading international real estate consultancy Cluttons.
Strong interest in Emaar's newly launched Lila and Yasmin properties at Arabian Ranches, Bahrain-based Ravi Pillai Group's plans to invest USD$1.5 billion into two real estate projects in Business Bay and Downtown, and the USD$1.9 million investment by Chow Tai Food Endowment Industry Investment Development (Group) Ltd in serviced apartments, high-end residences and two five-star hotels at Dubai Pearl, illustrate the growing appetite for real estate investment from intuitional investors who have been largely absent since the market rebounded.

Faisal Durrani, Associate - residential and international research at Cluttons comments on the depth of buyer demand in Dubai: "The launch of Yasmin demonstrates the domestic interest in established communities like Arabian Ranches, which feature completed infrastructure that are expanding in areas south of Dubai. Villa communities tend to be limited to a few hundred villas in order to create a sense of exclusivity and deliver on the promise of 'gated communities'. We expect to see more such 'bolt-on' schemes launched, as developers expand prominent communities and focus on areas that are well established."

The recent report on buyer activity released by the Dubai Land Department highlights the appetite for real estate assets in Dubai that extends well beyond the UAE, with 162 nationalities committing to Dubai's bricks and mortar during 2013.
Durrani continued: "Unsurprisingly, Indian nationals topped the list of the city's most active buyers, with Dubai often viewed in the same league as London by this group. The relative geographic proximity to India and the large non-resident Indian population in the region are two further critical drivers for those looking to park their Rupees in Dubai's real estate market. And now we're seeing the demand base broadening from individuals to institutional players. Britons and Pakistani nationals rounded off the top three nationalities that purchased property in Dubai last year."

This is further evidenced in Cluttons International Private Capital Survey 2013/14 which was released late last year. The survey found that within the region, Dubai ranks ahead of other global real estate investment destinations.
Cluttons surveyed nine global locations across the Middle East and Asia-Pacific region and although London ranked as the go-to investment destination by the world's wealthy, Dubai came in a close second, up from seventh place a year earlier....


http://www.zawya.com/story/Overseas_and_domestic_buyers_target_Dubai_property_assets-ZAWYA20140218080350/

Riaz Haq said...

Here's NY Times columnist David Brooks on security as a bigger problem than poverty in developing world:

If you’re reading this, you are probably not buffeted by daily waves of physical terror. You may fear job loss or emotional loss, but you probably don’t fear that somebody is going to slash your throat, or that a gang will invade your house come dinnertime, carrying away your kin and property. We take a basic level of order for granted.

But billions of people live in a different emotional landscape, enveloped by hidden terror. Many of these people live in the developing world.

When we send young people out to help these regions, we tell them they are there to tackle “poverty,” using the sort of economic designation we’re comfortable with. We usually assume that scarcity is the big challenge to be faced. We send them to dig wells or bring bed nets or distribute food or money, and, of course, that’s wonderful work.

But as Gary A. Haugen and Victor Boutros point out in their gripping and perspective-altering book, “The Locust Effect,” these places are not just grappling with poverty. They are marked by disorder, violence and man-inflicted suffering.

“The relentless threat of violence is part of the core subtext of their lives, but we are unlikely to see it, and they are unlikely to tell us about it. We would be wise, however, to not be fooled — because, like grief, the thing we cannot see may be the deepest part of their day.”

People in many parts of the world simply live beyond the apparatus of law and order. The District of Columbia spends about $850 per person per year on police. In Bangladesh, the government spends less than $1.50 per person per year on police. The cops are just not there.

In the United States, there is one prosecutor for every 12,000 citizens. In Malawi, there is one prosecutor for every 1.5 million citizens. The prosecutors are just not there.

Even when there is some legal system in place, it’s not designed to impose law and order for the people. It is there to protect the regime from the people. The well-connected want a legal system that can be bought and sold.

Haugen and Boutros tell the story of an 8-year-old Peruvian girl named Yuri whose body was found in the street one morning, her skull crushed in, her legs wrapped in cables and her underwear at her ankles. The evidence pointed to a member of one of the richer families in the town, so the police and prosecutors destroyed the evidence. Her clothing went missing. A sperm sample that could have identified the perpetrator was thrown out. A bloody mattress was sliced down by a third, so that the blood stained spot could be discarded....
-----------
The primary problem of politics is not creating growth. It’s creating order. Until that is largely achieved, life can be nasty, brutish and short.

Haugen is president of a human rights organization called the International Justice Mission, which tries to help people around the world build the institutions of law. One virtue of his group is that it stares evil in the eyes and helps local people confront the large and petty thugs who inflict such predatory cruelty on those around them. Not every aid organization is equipped to do this, to confront elemental human behavior when it exists unrestrained by effective law. It’s easier to avoid this reality, to have come-together moments in daytime.

Police training might be less uplifting than some of the other stories that attract donor dollars. But, in every society, order has to be wrung out of exploitation. Unless cruelty is tamed, poverty will persist.


http://www.nytimes.com/2014/03/25/opinion/brooks-the-republic-of-fear.html