tag:blogger.com,1999:blog-5848640164815342479.post2453518615849731443..comments2024-03-18T16:01:13.871-07:00Comments on Haq's Musings: Incompetence Worse Than Graft in PakistanRiaz Haqhttp://www.blogger.com/profile/00522781692886598586noreply@blogger.comBlogger39125tag:blogger.com,1999:blog-5848640164815342479.post-73952607321811376762015-07-07T08:58:13.475-07:002015-07-07T08:58:13.475-07:00#Pakistan’s #Sharif brothers, #Zardari figure on N...#Pakistan’s #Sharif brothers, #Zardari figure on NAB’s list of 150 ‘high-profile’ #corruption cases. https://shar.es/1qUoYH via @sharethis<br /><br />Pakistan’s National Accountability Bureau (NAB) has reportedly submitted a list of 150 mega corruption cases, involving high-profile figures such as, Prime Minister Nawaz Sharif, his brother and Punjab Chief Minister Shahbaz Sharif, former premiers, ministers and top bureaucrats, before the country’s Supreme Court.<br />The report said that an inquiry was being carried out against the incumbent prime minister and his brother in a case pertaining to the construction of a road from Raiwind to Sharif family House worth Pakistani rupees 126 million, reported the Dawn.<br />Former Prime Minister Raja Pervaiz Ashraf is also being scrutinised for the rental power plants (RPP) case.<br />Also, a case has been launched against former President Asif Ali Zardari for possessing assets beyond resources.<br />It also mentioned 50 cases of monitory irregularities, misuse of powers and land scams.<br />Among the monitory irregularities, inquiries were being conducted in 22 cases, with probes launched into 13 cases and references in 15 cases.<br />In land scams, on the other hand, 29 cases were under inquiry, 13 cases were being investigated and references had been filed in eight cases.<br />The report also showed that inquiries were underway in 20 cases of abuse of power, while a probe had been launched into 15 cases and references filed in 15 cases.<br /><br />The case, which was filed by Manzoor Ahmed Ghauri earlier this year against NAB chairman and other officials, is being heard by a three-member bench headed by Justice Jawwad S. Khawaja.<br />The report was submitted after the court expressed disappointment over what they claimed was an extreme form of ‘maladministration’ in the anti-corruption body.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-10599753318009194462013-03-30T19:38:07.339-07:002013-03-30T19:38:07.339-07:00Here's an ET report on social sector developme...Here's an <a href="http://tribune.com.pk/story/527474/human-development-report-2013-the-rise-of-the-south-as-others-rise-pakistan-parks-the-bus/" rel="nofollow">ET report</a> on social sector development during Musharraf years:<br /><br /><i>According to the report’s HDI list, between 2000 and 2007, which roughly corresponds with General Pervez Musharraf’s regime, the Human Development Index rose 18.9 per cent — an annual average of 2.7 per cent.<br /><br />From 2007 to 2012 it only went up by 3.4 per cent, just under 0.7 per cent per annum. Somehow, things got even worse in the last three years of that time frame, with HDI increases crashing down as low as 0.59% — a negligible average annual increase of under 0.20 per cent.<br /><br />The 2013 Human Development Report “The Rise of the South: Human Progress in a Diverse World” is instrumental in the context of Pakistan, especially given the challenges faced today due to poor policy choices that have been confronted in the report.<br /><br />Meeting a small group of journalists here, Marc André Franche, UNDP Pakistan’s Country Director launched the report and said it is important for what it says and there are lessons to be learnt from countries with preconditions similar to Pakistan.</i><br /><br />http://tribune.com.pk/story/527474/human-development-report-2013-the-rise-of-the-south-as-others-rise-pakistan-parks-the-bus/Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-72932670961178846062012-07-04T10:52:54.479-07:002012-07-04T10:52:54.479-07:00Here's a Washington Post story on Pakistans...Here's a <a href="http://www.washingtonpost.com/world/asia_pacific/in-pakistan-political-and-economic-crises-stir-nostalgia-for-military-rule/2012/07/04/gJQAnaqhMW_story_1.html" rel="nofollow">Washington Post story</a> on Pakistans' nostalgia for Musharraf's days:<br /><br /><i>Beckoned by public spigots promising free, pure drinking water, tourists lined up last week to refresh themselves along the main drag in Murree, a summer resort town perched at 7,500 feet in the Himalayas.<br /><br />They soon discovered that the taps were dry.<br /><br />“We’ve gotten nothing,” said one thirsty visitor, Abdul Sattar, 47. And he wasn’t just talking about pani (water), which hasn’t reached Murree for weeks because severe power shortages have shut down pumping stations in the valley below.<br /><br />Nothing has come from democracy, either, a frustrated Sattar said — at least not as it is practiced by the barely functioning federal government in Islamabad, an hour’s drive down the mountains.<br /><br />The economy is bad enough to make Sattar and others nostalgic for military rule, when the generals at least kept the nation’s lights on.<br /><br />“The military is better,” said Amir Iqbal, who co-owns Mr. Food, a small eatery which had just two lunchtime customers. At 44, he recalls fondly the relative prosperity and higher economic growth rates that marked the nine-year regime of Gen. Pervez Musharraf. And, although he was young at the time, he speaks positively of the era of an earlier strongman, Gen. Muhammad Zia ul Haq.<br /><br />“When the army is in government they keep inflation low,” Iqbal said. “They are good at governance and better organized.”<br /><br />Such yearnings for order are certainly not new in Pakistan’s 64-year history: The army, generally with popular support, has stepped in three times to topple weak governments and impose martial law.<br /><br />Judicial obeisance to the generals used to be the norm. But, styling itself as a corruption-battling people’s advocate, the current Supreme Court has inverted the narrative. It has spearheaded investigations into misdeeds of the executive branch and the military.<br /><br />Some experts call Chief Justice Iftikhar Muhammad Chaudhry the country's most powerful man. Critics accuse him of mounting a “judicial coup” in the name of the rule of law.<br /><br />His court picked off long-serving Prime Minister Yousuf Raza Gilani last month for refusing to follow its orders and is poised to oust his successor for the same thing. A power struggle among the judiciary, the executive branch and, to a lesser extent, the army, threatens to destabilize the nuclear-armed nation at a time when its counterterrorism partnership with the United States has essentially fallen apart.<br />---------------<br />Pakistanis continue to express overwhelming support for the military as an institution, with 77 percent calling it a good influence, the poll found. And the powerful army chief, Gen. Ashfaq Parvez Kayani, is viewed favorably by slightly more than half of those surveyed by Pew in March and April.<br /><br />But several analysts said they see little likelihood of a coup d’etat. The government may have inoculated itself against one thanks to its own incompetence: The economic situation is so dire that the military lacks the economic resources to fix the country’s intractable problems and would rather avoid taking the rap for failure.<br /><br />“The army doesn’t want to be held responsible for this,” said Marvin Weinbaum, a Pakistan expert at the Middle East Institute in Washington. “And in some ways there is no reason for them to move in: They’ve got control over the things that they want to control. They still have a veto over any domestic policy that affects them in any substantial way.” ...</i><br /><br />http://www.washingtonpost.com/world/asia_pacific/in-pakistan-political-and-economic-crises-stir-nostalgia-for-military-rule/2012/07/04/gJQAnaqhMW_story_1.htmlRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-83246728609506989652012-04-14T21:02:21.610-07:002012-04-14T21:02:21.610-07:00Here are excerpts of a David Brooks' NY Times ...Here are excerpts of a David Brooks' <a href="http://www.nytimes.com/2012/04/13/opinion/brooks-sam-spade-at-starbucks.html" rel="nofollow">NY Times</a> column on why political participation is important for idealistic youth:<br /><br /><i>Often they are bursting with enthusiasm for some social entrepreneurship project: making a cheap water-purification system, starting a company that will empower Rwandan women by selling their crafts in boutiques around the world.<br /><br />These people are refreshingly uncynical. Their hip service ethos is setting the moral tone for the age. Idealistic and uplifting, their worldview is spread by enlightened advertising campaigns, from Bennetton years ago to everything Apple has ever done.<br /><br />It’s hard not to feel inspired by all these idealists, but their service religion does have some shortcomings. In the first place, many of these social entrepreneurs think they can evade politics. They have little faith in the political process and believe that real change happens on the ground beneath it.<br /><br />That’s a delusion. You can cram all the nongovernmental organizations you want into a country, but if there is no rule of law and if the ruling class is predatory then your achievements won’t add up to much.<br /><br />Furthermore, important issues always spark disagreement. Unless there is a healthy political process to resolve disputes, the ensuing hatred and conflict will destroy everything the altruists are trying to build.<br /><br />There’s little social progress without political progress. Unfortunately, many of today’s young activists are really good at thinking locally and globally, but not as good at thinking nationally and regionally.<br /><br />Second, the prevailing service religion underestimates the problem of disorder. Many of the activists talk as if the world can be healed if we could only insert more care, compassion and resources into it.<br /><br />History is not kind to this assumption. Most poverty and suffering — whether in a country, a family or a person — flows from disorganization. A stable social order is an artificial accomplishment, the result of an accumulation of habits, hectoring, moral stricture and physical coercion. Once order is dissolved, it takes hard measures to restore it.<br /><br />Yet one rarely hears social entrepreneurs talk about professional policing, honest courts or strict standards of behavior; it’s more uplifting to talk about microloans and sustainable agriculture.<br /><br />In short, there’s only so much good you can do unless you are willing to confront corruption, venality and disorder head-on. So if I could, presumptuously, recommend a reading list to help these activists fill in the gaps in the prevailing service ethos, I’d start with the novels of Dashiell Hammett or Raymond Chandler, or at least the movies based on them.<br /><br />The noir heroes like Sam Spade in “The Maltese Falcon” served as models for a generation of Americans, and they put the focus squarely on venality, corruption and disorder and how you should behave in the face of it.<br /><br />A noir hero is a moral realist. He assumes that everybody is dappled with virtue and vice, especially himself. He makes no social-class distinction and only provisional moral distinctions between the private eyes like himself and the criminals he pursues. The assumption in a Hammett book is that the good guy has a spotty past, does spotty things and that the private eye and the criminal are two sides to the same personality.<br /><br />He (or she — the women in these stories follow the same code) adopts a layered personality. He hardens himself on the outside in order to protect whatever is left of the finer self within. </i><br /><br />http://www.nytimes.com/2012/04/13/opinion/brooks-sam-spade-at-starbucks.htmlRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-48073334314270453172012-02-14T09:48:58.507-08:002012-02-14T09:48:58.507-08:00Here's an Associated Press report on Pakistan&...Here's an Associated Press report on Pakistan's assertive judiciary challenging the military and civilian leadership:<br /><br />....Some believe the court’s actions are part of a necessary, if messy, rebalancing in a country that has long been dominated by the army or seen chaotic periods of rule by corrupt politicians. Others view the court as just another unaccountable institution undermining the elected government.<br />-------------<br />The army has been the principal point of contact for the U.S. in the decade since it resuscitated ties with Pakistan to help with the Afghan war. While the army remains the strongest Pakistani institution, recent events indicate it has ceded some of that power to the Supreme Court and the country’s civilian leaders.<br />----------------<br />The Supreme Court’s activism was on full display Monday.<br /><br />The court charged Pakistan’s prime minister with contempt for refusing to reopen an old corruption case against the president. Later, it ordered two military intelligence agencies to explain why they held seven suspected militants in allegedly harsh conditions for 18 months without charges.<br /><br />Some government supporters have accused the court of acting on the army’s behalf to topple the country’s civilian leaders, especially in a case probing whether the government sent a memo to Washington last year asking for help in stopping a supposed military coup.<br /><br />But no evidence has surfaced to support that allegation, and the court’s moves against the military seem to conflict with the theory. The judges have also taken up a case pending for 15 years in which the army’s powerful Inter-Services Intelligence agency, or ISI, is accused of funneling money to political parties to influence national elections.<br />------------<br />The court’s actions against the army are a significant turnaround. For much of Pakistan’s nearly 65-year history, the court has been pliant to the army’s demands and validated three coups carried out by the generals.<br />-------------<br />The Pakistani media have largely applauded the court’s activism against the army, which has also had its power checked by a more active media and the demands of a bloody war against a domestic Taliban insurgency.<br />-----------<br />“I think the Supreme Court is going too far,” said Pakistani political analyst Hasan-Askari Rizvi. “In the past, it was the army that would remove the civilian government, and now it’s the Supreme Court, another unelected institution trying to overwhelm elected leadership.”<br /><br />Supreme Court justices are appointed by the president based on recommendations from a judicial commission working in conjunction with parliament. The judges can serve until the age of 65 and can be removed only by a judicial council.<br /><br />The cases have distracted the government from dealing with pressing issues facing the country, including an ailing economy and its battle against the Pakistani Taliban.<br /><br />Moeed Yusuf, an expert on Pakistan at the United States Institute of Peace, said the jockeying for power between the army, Supreme Court and civilian government was expected given the shifting political landscape and could be beneficial to the country in the long run.<br /><br />“No country has managed to bypass several phases of such recalibration before they have arrived at a consensual, democratic and accountable system where institutions finally are able to synergize rather than compete endlessly,” Yusuf wrote in a column in Dawn.<br />-----------<br />“No single group will totally dominate the system,” said Rizvi. “That will slow down decision making further in Pakistan because nobody can take full responsibility for making a decision.”<br /><br />http://www.washingtonpost.com/world/asia-pacific/pakistans-assertive-supreme-court-signals-power-shift-in-vital-us-ally/2012/02/14/gIQAIZHODR_story.htmlRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-67089797847799595292011-12-30T16:58:37.515-08:002011-12-30T16:58:37.515-08:00Here's an Express Tribune report on TI finding...Here's an <a href="http://tribune.com.pk/story/314181/pakistans-perceived-corruption/" rel="nofollow">Express Tribune</a> report on TI findings in Pakistan:<br /><br /><i>The latest perception report from Transparency International Pakistan (TIP) shows a limited number of respondents see centres of corruption in Pakistan in the following descending order, of being perceived as the most corrupt to the least: 1) land administration; 2) police; 3) income tax; 4) judiciary; 5) tendering & contracting; 6) customs, plus state corporations and the last is the army. Once again TIP has expressed its shock at the mounting lack of honesty in public affairs and has listed some of the reasons why the graph of evil is creeping upwards every year.<br /><br />It is not surprising that land administration is the first among the perceived culprits. It is vastly the domain of the provinces where the politician has yet to begin to take responsibility for sorting-out maintenance and collection. Land record is still in primitive shape and the low bureaucracy that handles the sector is not upgraded and made competitive. Most of the trouble takes place away from the big cities because the writ of the state languishes in smaller districts and abdicates to three power centres: the feudal landlord (often a politician), the police and the judiciary. It will take a long time to sort-out this mess and it will not happen at the same speed in all the provinces. The police has endemic ills that most states in the Third World have failed to tackle. The recruitment of policemen has been pegged to good education only recently, but the provinces — whose domain this is — have been remiss in making the kind of allocations needed to upgrade the institution’s performance. The ratio of policemen to population is abysmal, training standards — though imitative of the army — are nowhere near being practically useful and low status has kept the average policeman tied to slavish behaviour towards the seniors and a brutish one towards the common man.<br /><br />But the police may not be intrinsically as bad as the circumstances of its functioning make it. State policies favouring non-state actors involved in terrorism on the side have hamstrung the police. Unwillingness to prosecute has instilled in the department a habit of not trying too hard to convict, say, terrorists from a shady jihadi organisation simply because it is being clandestinely supported by the state. Because of this ambience of state-backed criminality, many policemen themselves indulge in crime and get away with it. Many senior policemen live beyond their means and own properties they could not have bought with honest money. As for the tax administration, if one were to look at the statistics, things may be getting better — and that is why it is no longer number one in corruption. Pakistan’s revenue collection is one of the lowest in the world (with the tax-collection machinery believed to be riddled with corruption and inefficiency) and that impacts directly the capacity of the state to spend on development. The reigning theory is to erect a system in which the income tax officer comes into least contact with the taxpayer.</i><br /><br />http://tribune.com.pk/story/314181/pakistans-perceived-corruption/Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-24707207883712421992011-12-19T20:45:43.079-08:002011-12-19T20:45:43.079-08:00Here's a Daily Times report on Pakistan's ...Here's a <a href="http://www.dailytimes.com.pk/default.asp?page=2011%5C12%5C20%5Cstory_20-12-2011_pg7_15" rel="nofollow">Daily Times</a> report on Pakistan's Planning Commission's efforts to improve economic governance:<br /><br /><i>ISLAMABAD: Planning Commission of Pakistan with the support of Department for International Development (DFID) and assisted by Governance Institutes Network International (GINI) has initiated the process of consultative workshops in all provincial headquarters and major business hubs to involve stakeholders for economic literacy and local ownership to facilitate the implementation of framework for economic growth of Pakistan - a strategy that seeks accelerated and sustained growth and development formulated by the Planning Commission.<br /><br />Planning Commission of Pakistan has developed a framework for Economic Growth of Pakistan, which has been approved by National Economic Council (NEC).<br /><br />Framework for economic growth is informed by the latest in economic thinking and seeks to strengthen both government and markets. It is not a ‘government versus markets’ approach but a ‘government and markets’ approach. An efficient government underpins a vibrant market. Much of the proposed reforms are to get the role of government and market in balance to develop efficiency within and between the two. At the first stage, efforts will be undertaken to revive the economy to its short-term potential GDP growth rate of about 5-6% a year. If issues regarding energy governance are resolved and some credible macro stability is reached, this could be achieved in a short time.<br /><br />The strategy also suggests deep and sustained reforms - in areas such as public sector management, developing competitive markets, urban management and connecting people and places - as a way forward for accelerating growth to above 7%. The major themes of the Framework for Economics Growth are vibrant and competitive markets, governance, urban development, youth and community and energy.<br /><br />Six critical changes have been identified that need to be introduced to strengthen the linkage between the Planning Commission and government performance. These changes are: strengthen the Medium-Term Development Framework (MTDF) and the Medium-Term Expenditure Framework (MTEF) for setting medium-term priorities in line with growth strategy and reforms agenda, support a unified result-based budget preparation process, decentralise responsibility for projects to line ministries, redefine the Planning Commission’s role and processes in respect of major capital projects and establish a results-based monitoring and evaluation system.<br /><br />Planning Commission should lead the reform and change process through identification and advocacy of critically required amendments in policies. The commission has urged all stakeholders to own the policy and become agent of change, as until and unless they put force behind this growth framework, it may not be implemented in its true spirit.</i><br /><br />http://www.dailytimes.com.pk/default.asp?page=2011\12\20\story_20-12-2011_pg7_15Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-20210038158824375562011-07-06T08:29:11.850-07:002011-07-06T08:29:11.850-07:00Here's a review of "River of Smoke" ...Here's a review of "River of Smoke" by Soutik Biswas of the <a href="http://www.bbc.co.uk/news/world-south-asia-14026315" rel="nofollow">BBC</a>:<br /><br /><i>It is 1838, and Amitav Ghosh's new novel, River Of Smoke, sails into Canton, a rambunctious, crowded city, and home to seafarers, itinerant merchants, opium traders and many such floating folks. "In China, everything new comes from Canton," says a character, in what is the second book in a planned trilogy.<br />----<br />Canton's suburbs are bustling, floating cities on the Pearl River, a veritable "waterborne hive" where up to a million people live in boats moored along the water's edge. At the centre of this maelstrom of commerce, a prosperous Indian Parsi opium merchant, Bahram Modi, negotiates a knotty question of the morality of his trade even as Chinese authorities launch a concerted crackdown.<br /><br />But beyond the fog of opium and the cacophony of the foreigner's town, River of Smoke is really a scathing parable of globalisation.<br />---<br />Last week, on a cloudy Delhi morning, I asked Ghosh, a trained anthropologist from Oxford, whether free trade and globalisation had failed a lot of people. "Of course," he said. "Look around you, look at Greece, look at England. And yes, we keep making and selling things which are of no real use!"<br /><br />There's an amazing amount of economics in his novel - pushed against the wall, opium merchants talk about setting up an off-share trading base to ship in opium and about the "hand of freedom, of the market", echoing Adam Smith. (Ghosh tells me that a number of traders were Scottish, and would have been influenced by Smith's tracts.) Clearly, globalisation repeats itself again and again - often with unsavoury results - and nothing really changes.<br /><br />And then there are the ruminations on democracy. "Democracy is a wonderful thing," says Bahram. "It is a marvellous tamasha (spectacle) that keeps common people busy that men like ourselves can take care of all matters of importance. I hope one day India will also be able to enjoy these advantages." I ask Ghosh about the health of democracy in India. He doesn't appear to be very upbeat about it. "Democracy for democracy's sake doesn't make much sense", he says, "unless we strengthen institutions and follow processes." Otherwise, as Bahram says, it can just become a spectacle, involving the institutions, the media and the people.<br /><br />Two decades after India embraced globalisation and economic reforms, the results are mixed: a rising tide has lifted all boats - to borrow an allegory from Ghosh's sea novels - but many boats are barely afloat. There is valid criticism about a lot of growth being jobless, and inadequate state attention to education and health of the poor. In an intensely media-driven environment, where everybody appears to be playing to the gallery, democracy, many say, is being trivialised.<br /><br />But, of course, River Of Smoke is more than all this. This masterwork of historical fiction is brimming with characters and colour. Behind its finely etched detail about people, cities, voyages, flowers and food, it is a seriously engaging political novel - perhaps one of the finest ever by an Indian writer. Don't miss it.</i><br /><br />http://www.bbc.co.uk/news/world-south-asia-14026315Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-59086348051467936612011-06-28T09:51:38.821-07:002011-06-28T09:51:38.821-07:00What a difference 3 years under PPP-led feudal dem...What a difference 3 years under PPP-led feudal democracy have made. <br /><br />The <a href="http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=54874&Cat=9" rel="nofollow">failure of the recent bond offering</a> is a serious setback that proves yet again the utter incompetence of the economic team and lack of international investor confidence in the current PPP govt. <br /><br />It stands in sharp contrast to Pakistan's multiple successful bond offerings from February 2004 to May 2007. Each time the Pakistani paper was oversubscribed substantially. Pakistan emerged as one of the few countries which successfully floated a 30-year bond. This simply reflected the confidence of global investors in Pakistan’s leadership under President Musharraf.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-63115298414402639942011-06-28T09:33:26.703-07:002011-06-28T09:33:26.703-07:00Pakistan bond offering withdrawn, says Dr. Ashfaqu...Pakistan bond offering withdrawn, says <a href="http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=54874&Cat=9" rel="nofollow">Dr. Ashfaque H. Khan</a>:<br /><br /><br />Yet another debacle has occurred on the economic front, with the government failing to float its exchangeable bond in the international debt-capital market. In an act of desperation, the Pakistani economic manager had decided to launch a $500-million exchangeable bond with 10 percent shares of Oil and Gas Development Corporation (OGDC) attached to this transaction, the proceeds of which were to come by the end of the current fiscal year. It was the intention of the government to use these proceeds for retiring its State Bank debt and reducing its budget deficit to that extent.<br /><br />The Pakistani team was informed by the global investors during the road show that they had little appetite for Pakistani paper at the moment, particularly in the presence of the Greek debt crisis and the unresolved issue of increase in the debt limit of the US administration. The Pakistani team did not pitch for the bond and returned empty-handed.<br /><br />Why did Pakistan have to abandon its transaction? Are the economic managers aware of the consequences of such a colossal failure for the country? One thing is clear from the perspective of the economic managers: who cares about the country? They are there to improve their resumes.<br /><br />What is an exchangeable bond? The country issues a normal sovereign bond with an option that the bondholder can convert the bond into common shares. The transaction under discussion provided an option to bondholders to convert their bonds into OGDC shares. The advantageous thing about such a bond is that it has the option for conversion of debt into portfolio investment.<br /><br />There are many reasons for the failure of this transaction. Firstly, the timing for floating the bond was highly inappropriate. This is summertime, when investors close their books and go for vacations. Secondly, the international economic environment, particularly the persistence of the Greek debt crisis and the emergence of issue pertaining to enhancing the debt limit of the US administration have created severe uncertainty in the international debt-capital market.<br /><br />Thirdly, Pakistan’s own economic fundamentals are weak. Why would anyone invest in a country’s paper whose debt is rising, budget deficit is averaging over six percent of the GDP, high double-digit inflation continuous persists for the last 45 months, and growth is slowing to an average of 2.6 percent per annum over the last four years. Fourthly, Pakistan’s relations with the IMF and other development financial institutions (DFIs) are not smooth. Fifthly, Pakistan’s relations with the United States are also on a bumpy ride. For an emerging market country, its relationships with the US, the IMF and the DFIs are critical in attracting global investors to invest in its paper.<br /><br />Sixthly, Pakistan’s domestic political and security environment are not conducive to attract global investors to invest in Pakistani paper. Seventhly, the Pakistani team involved in this transaction, barring one member, was quite immature and had no idea whatsoever about the transaction. All these factors have contributed to the failure of the transaction, damaging the reputation of the country and OGDC. In order to save face, the economic team could call this transaction “non-deal road show.” But the international capital market participants are not novices. Word has already travelled across the globe that Pakistan has failed to find takers for its paper.<br />----<br />It is in this perspective that Pakistan floated its paper from February 2004 to May 2007. Each time the Pakistani paper was oversubscribed substantially. Pakistan emerged as one of the few countries which successfully floated a 30-year bond. This simply reflected the confidence of global investors in Pakistan’s economic management....<br /><br />http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=54874&Cat=9Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-84667394575405307722011-06-27T11:12:59.133-07:002011-06-27T11:12:59.133-07:00Here's Prof Anatol Lieven, the author of Pakis...Here's Prof Anatol Lieven, the author of Pakistan-A Hard Country, explaining P2K in an interview with <a href="http://harpers.org/archive/2011/05/hbc-90008092" rel="nofollow">Harpers magazine</a>:<br /><br /><i>This represents a shocking surrender on my part to SMS-speak, which comes of associating with students!<br /><br />What it stands for is “Patronage to Kinship,” which is central to the nature and workings of the Pakistani state and political systems. In my book, I argue that this system—especially in the countryside but to some extent also in the cities—revolves around local elites using their own wealth to gain leadership positions in their kinship groups, using these positions to advance in politics and get elected to the provincial or national assembly (whether under civilian or military rule), and then in turn using their influence on government to extract corruption.<br /><br />However, by contrast with some systems, like Nigeria’s, the benefits of this corruption cannot simply or even mainly be kept for the immediate beneficiaries. In order to retain support, they have to distribute a reasonable proportion of it to their kinfolk and other supporters—otherwise they won’t go on supporting the leaders for very long. Even within quite tight-knit kinship groups, there is usually a rival relative who will step forward to claim the leadership if the existing leader is seen as mean, greedy, and unresponsive to his followers’ needs. There are two good U.S. quotes which illustrate the morality behind this. The first was said about Mayor Richard M. Daley of Chicago by his supporters: “He dunks, but he splashes.” The second comes from Bruce Springsteen’s song “Highway Patrolman”: “A man turns his back on his family, he ain’t no friend of mine.”<br /><br />In my book, I describe this system as “Janus-faced.” On the one hand, because of the way in which it maintains kinship links and spreads a certain amount of patronage through society, it helps maintain the existing system’s resilience in the face of the threat of Islamist revolution. On the other hand, it cripples the state’s ability to generate and spend resources effectively on infrastructure, education, and every other form of state service, and it is therefore disastrous for Pakistan’s economic development and social progress.<br /><br />I argue that the power and prestige of the Pakistani military within the Pakistani system has been due chiefly to its ability to separate itself from the normal workings of the patronage and kinship system, and to operate as a relatively efficient and honest meritocracy. However—and I do wish more of my critics would notice this—I also say repeatedly that the reason the military has been able to do this is that it has in effect functioned as a giant patronage network, extracting a massive share of state resources and spending them on itself, albeit in an orderly way and with some benefits reaching the ordinary soldiers as well as the officers.</i><br /><br />http://harpers.org/archive/2011/05/hbc-90008092Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-43737512478220686852011-06-09T17:08:51.494-07:002011-06-09T17:08:51.494-07:00Here's a NY Times story on dysfunction in Gurg...Here's a <a href="http://www.nytimes.com/2011/06/09/world/asia/09gurgaon.html?_r=1&scp=1&sq=gurgaon&st=cse" rel="nofollow">NY Times</a> story on dysfunction in Gurgaon, India:<br /><br /><i>Gurgaon, located about 15 miles south of the national capital, New Delhi, would seem to have everything, except consider what it does not have: a functioning citywide sewer or drainage system; reliable electricity or water; and public sidewalks, adequate parking, decent roads or any citywide system of public transportation. Garbage is still regularly tossed in empty lots by the side of the road.<br /><br />With its shiny buildings and galloping economy, Gurgaon is often portrayed as a symbol of a rising “new” India, yet it also represents a riddle at the heart of India’s rapid growth: how can a new city become an international economic engine without basic public services? How can a huge country flirt with double-digit growth despite widespread corruption, inefficiency and governmental dysfunction?<br /><br />In Gurgaon and elsewhere in India, the answer is that growth usually occurs despite the government rather than because of it. India and China are often considered to be the world’s rising economic powers, yet if China’s growth has been led by the state, India’s growth is often impeded by the state. China’s authoritarian leaders have built world-class infrastructure; India’s infrastructure and bureaucracy are both considered woefully outdated.<br /><br />Yet over the past decade, India has emerged as one of the world’s most important new engines of growth, despite itself. Even now, with its economy feeling the pressure from global inflation and higher interest rates, some economists predict that India will become the world’s third largest economy within 15 years and could much sooner supplant China as the fastest-growing major economy.<br /><br />Moreover, India’s unorthodox path illustrates, on a grand scale, the struggles of many smaller developing countries to deliver growth despite weak, ineffective governments. Many have tried to emulate China’s top-down economic model, but most are stuck with the Indian reality. In India, Gurgaon epitomizes that reality, managing to be both a complete mess and an economic powerhouse, a microcosm of Indian dynamism and dysfunction.<br /><br />In Gurgaon, economic growth is often the product of a private sector improvising to overcome the inadequacies of the government.<br /><br />To compensate for electricity blackouts, Gurgaon’s companies and real estate developers operate massive diesel generators capable of powering small towns. No water? Drill private borewells. No public transportation? Companies employ hundreds of private buses and taxis. Worried about crime? Gurgaon has almost four times as many private security guards as police officers.<br /><br />“You could call it the United States of Gurgaon,” said Sanjay Kaul, an activist critical of the city’s lack of planning who argues that Gurgaon is a patchwork of private islands more than an interconnected city. “You are on your own.”<br /><br />Gurgaon is an extreme example, but it is not an exception. In Bangalore, outsourcing companies like Infosys and Wipro transport workers with fleets of buses and use their own power generators to compensate for the weak local infrastructure. Many apartment buildings in Mumbai, the nation’s financial hub, rely on private water tankers. And more than half of urban Indian families pay to send their children to private schools rather than the free government schools, where teachers often do not show up for work. </i><br /><br />http://www.nytimes.com/2011/06/09/world/asia/09gurgaon.html?_r=1&scp=1&sq=gurgaon&st=cseRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-46603053938671198422011-06-08T20:48:48.746-07:002011-06-08T20:48:48.746-07:00Here's an AFP report about Indian military own...Here's an <a href="http://www.google.com/hostednews/afp/article/ALeqM5jAq_i-sI2D8WgcJEYbGRWj7Bq8WA?docId=CNG.1ea32901b8e59f3d5d3bfafc5c239a60.7c1" rel="nofollow">AFP report</a> about Indian military owning land and running golf courses:<br /><br />NEW DELHI — The Indian army has developed a sideline in running golf courses using government land but returning no revenue to the state, the nation's auditor claims in a damning new report.<br /><br />The Comptroller and Auditor General (CAG) found that at least 32 square kilometres (12 square miles) of rent-free land had been handed to a privately-run company, Army Zone Golf, which operates 97 luxury golf courses.<br /><br />The defence ministry is the largest state landowner, holding 80 percent of the 7,000 square kilometres of government land, much of it now prime real estate, according to the CAG report released Friday.<br /><br />Golf memberships are being sold to present and past service personnel as well as civilians and foreign nationals, the report said, with revenue credited to a private regimental fund which could not be accessed by the auditors.<br /><br />Army authorities "earn large amounts of revenue by allowing persons other than service personnel to use these facilities," the report said.<br /><br />"Heavy amounts of revenues were being earned without paying any lease rent and allied charges for use of government assets," it added.<br /><br />The CAG's account of the misuse of public land will add to growing worries about the military's slide into corruption following a string of recent scandals.<br /><br />In January, the government ordered a 31-storey apartment block in Mumbai to be demolished after it emerged army officers and local politicians had usurped apartments originally meant for war widows.<br /><br />Army Zone Golf claims to promote the sport in the armed services and runs "some of the most spectacular golf courses of India," according to its website. No one at the company responded to calls for comment from AFP.<br /><br />The company's organising council includes several retired army officers, and was once headed by Joginder Jaswant Singh, former army chief of staff and now the governor of the northeastern state of Arunachal Pradesh.<br /><br />The CAG has been instrumental in exposing mismanagement and possible fraud in the sale of telecom licences in 2008 which it said had led to a loss to the state of up to 39 billion dollars.<br /><br />The telecom minister at the time, A. Raja, has since been arrested and awaits trial.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-73664229869054520902011-06-08T20:46:08.114-07:002011-06-08T20:46:08.114-07:00As Pakistani Army comes under unprecedented sharp ...As Pakistani Army comes under unprecedented sharp criticism by the politicians, the public and the media, here's an excerpts from an interesting piece by <a href="http://virsanghvi.com/CounterPoint-ArticleDetail.aspx?ID=569" rel="nofollow">Vir Sanghvi</a> on how the Indians treat Indian Army:<br /><br /><i>Equally, we will never blame the Army for anything. In 1962, we were thrashed by the Chinese but the consensus was that politicians had lost the war while our brave soldiers had done their best. The 1965 war was at best a stalemate (the Pakistanis also claimed they had won) but we treated it as a glorious victory for the Indian Army. Operation Blue Star was a fiasco. But even today, it is Blue Star we remember favourably rather than Black Thunder (conducted by the paramilitary forces to clean up the mess left behind by Blue Star), a bona fide success.<br /><br />By and large, the social contract has worked. The Army has nearly always got us out of jams when we need its services. Whether it was Delhi in 1984, Bombay in 1993, or Gujarat in 2002, we needed the Army to restore order. And during the Kargil War, young officers led from the front, sacrificed their lives and displayed astonishing bravery in the service of their country.<br /><br />Consequently, the army sometimes appears to live in a state within a state. Visit a cantonment and you will be struck by the contrast with the civilian part of the town or city where it is located. The roads will be broad and well-maintained, the buildings will be freshly painted, the surroundings will be clean, and an air of good manners and civility will prevail. Visit an army town (Wellington, for instance) and the contrast will be even more striking. The order and cleanliness of the cantonments serves as a contrast to the chaos and filth of modern India.<br /><br />There is, however, one important aspect of the social contract that now seems to be failing. As corruption has spread in modern India, we have reluctantly accepted that most parts of our society are tainted – civil servants, the schools and even the lower judiciary. But somehow, we have always believed that the army is different.<br /><br />Oh yes, we hear the stories. We hear about Generals who take kickbacks on arms deals and about officers involved in canteen purchase scandals. But because this corruption appears to be restricted to the Army itself and because we believe that it is not widespread, we are happy to look the other way.<br /><br /><br /><br />The problem with the Adarsh scandal and the controversies over other land deals that have erupted recently is that they encroach into the civilian space. Senior army officers are seen to be conniving with politicians, bureaucrats and contractors to make millions.<br /><br />Worse still, at least in the case of the Adarsh scandal, there is a cynical abuse of the social contract. When we say that we will respect and pamper the army, we do not expect senior officers to grab flats for themselves in the name of Kargil martyrs.<br /><br />Earlier this week, the Army chief spoke about his resolve to cleanse his force. I am not sure he fully grasps how serious the situation is. The problem is not just that there are ‘a few bad apples’ in the army. It is that Army corruption has now spilled out into the civilian space and that Generals are making big bucks by exploiting the regard we have for the heroism of the Army and the sacrifices made by its soldiers.<br /><br /><br /><br />If more such instances come to light, then the press will begin looking critically at the Army. The politicians will have an excuse to delve deep into the workings of the officer corps. This will give them the opportunity they need to play favourites. And the public, regretfully recognising that the Army has breached the social contract itself, will reluctantly acquiesce in the muck-raking by the press and the interference by politicians.<br /><br />Once this happens, the social contract will not survive. The image of the Army will not recover. And the perfect balance we have built between the Army and the Indian people will topple over..</i>Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-55466290707642314832011-04-18T20:50:38.832-07:002011-04-18T20:50:38.832-07:00Indian Chief Justice Kapadia warns jusges not to e...Indian Chief Justice Kapadia warns jusges not to exceed powers granted by the Indian constitution, reports <a href="http://www.inewsone.com/2011/04/16/kapadia-opposes-political-protection-to-corrupt-judges/43784" rel="nofollow">NewsOne</a>:<br /><br /><i>New Delhi, April 16 (IANS) The judiciary should not try to act as a super legislature, Chief Justice of India S.H. Kapadia said Saturday. He also asked the political leadership to resist from giving protection to corrupt judges.<br /><br />Cautioning against internal interference from high-ranking judges which, if resisted, could lead to lower-ranking judges being transferred or being denied promotions, he said ‘similarly political protection should not be given to corrupt judges’.<br /><br />The chief justice said judges should resist the temptation of post-retirement assignments. ‘A judge must not accept patronage through which he acquires office, preferential treatment or pre-retirement assignments. These can give rise to corruption.’<br /><br />He advised judges to impose upon themselves certain ‘restrictions’ and remain ‘a little aloof and isolated’ from people in order to erase the suspicion that they were susceptible to undue influence in the discharge of duties.<br /><br />He told judges to eschew contact with lawyers, individuals or political parties, their leaders or ministers unless it was on purely social occasions. A judge’s obligation must start and end with his analysis of law, not just personal beliefs or preferences.<br /><br />He asked the courts to desist from the tendency of substituting decisions of legislative bodies with their own socio-economic beliefs.<br /><br />‘We must refuse to sit as super legislatures to weigh the wisdom of the legislation,’ Chief Justice Kapadia said, delivering the fifth M.C. Setalvad Memorial Lecture on the ‘Canons of Judicial Ethics’ here.<br /><br />‘In many PILs (public interest litigations), the courts freely decree rule of conduct for the government and public authorities which are akin to legislation. Such exercises have little judicial function in them,’ the chief justice said.<br /><br />Disagreeing with the rationale that the judiciary was encroaching upon the legislative domain because the executive (government) had failed to discharge its responsibilities, Justice Kapadia said that ‘the courts should be circumspect in understanding the thin line between law and governance’.<br /><br />The chief justice said a balance had to be struck between judicial independence and the accountability of judges. He said the challenge before the judiciary was how to respond to unreasonable criticism of courts.<br /><br />The chief justice said that there was a need for striking a right balance between the judicial accountability and principle of judicial independence.<br /><br />He said the challenge was ‘how does one achieve the right balance between autonomy in decision making and independence from external forces on the one hand and accountability to the community on the other hand?’<br /><br />The habit of thinking impersonally, without regard for the worldly advantages or disadvantages of an opinion or an action was ethical thinking, he said.<br /><br />‘This is the prerequisite of judicial thinking. The man who is only interested in himself is not admissible (to ethical thinking),’ said the chief justice.<br /><br />The chief justice in his lecture dealt with a wide range of subjects relating to Canons of Judicial Ethics that included subject like Judicial ethics: From just words to deeds, Structuring of judgments, Accountability and judicial independence in the context of judicial activism and Value-based judicial accountability and independence.<br /><br />The lecture was organised by the Bar Association of India in the memory of Setalvad, who was the first attorney general of India.<br /><br />Delhi High Court Chief Justice Dipak Misra earlier said that the canons of judicial ethics should include both the judges and the advocates. He said that there should be strict adherence to integrity both in public and private life.</i>Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-14318795531284420112011-04-04T18:08:16.182-07:002011-04-04T18:08:16.182-07:00Talking about democracy, here are some excerpts fr...Talking about democracy, here are some excerpts from a <a href="http://www.vanityfair.com/society/features/2011/05/top-one-percent-201105" rel="nofollow">Vanity Fair article</a> by Nobel Laureate Economist Joe Stiglitz about growing concentration of wealth and power in America. It's titled "Of the 1%, For the 1%, By the 1%":<br /><br />Americans have been watching protests against oppressive regimes that concentrate massive wealth in the hands of an elite few. Yet in our own democracy, 1 percent of the people take nearly a quarter of the nation’s income—an inequality even the wealthy will come to regret.<br /><br />It’s no use pretending that what has obviously happened has not in fact happened. The upper 1 percent of Americans are now taking in nearly a quarter of the nation’s income every year. In terms of wealth rather than income, the top 1 percent control 40 percent. Their lot in life has improved considerably. Twenty-five years ago, the corresponding figures were 12 percent and 33 percent. One response might be to celebrate the ingenuity and drive that brought good fortune to these people, and to contend that a rising tide lifts all boats. That response would be misguided. While the top 1 percent have seen their incomes rise 18 percent over the past decade, those in the middle have actually seen their incomes fall. For men with only high-school degrees, the decline has been precipitous—12 percent in the last quarter-century alone. All the growth in recent decades—and more—has gone to those at the top. In terms of income equality, America lags behind any country in the old, ossified Europe that President George W. Bush used to deride. Among our closest counterparts are Russia with its oligarchs and Iran. While many of the old centers of inequality in Latin America, such as Brazil, have been striving in recent years, rather successfully, to improve the plight of the poor and reduce gaps in income, America has allowed inequality to grow.<br /><br />Economists long ago tried to justify the vast inequalities that seemed so troubling in the mid-19th century—inequal ities that are but a pale shadow of what we are seeing in America today. The justification they came up with was called “marginal-productivity theory.” In a nutshell, this theory associated higher incomes with higher productivity and a greater contribution to society. It is a theory that has always been cherished by the rich. Evidence for its validity, however, remains thin. The corporate executives who helped bring on the recession of the past three years—whose contribution to our society, and to their own companies, has been massively negative—went on to receive large bonuses. In some cases, companies were so embarrassed about calling such rewards “performance bonuses” that they felt compelled to change the name to “retention bonuses” (even if the only thing being retained was bad performance). Those who have contributed great positive innovations to our society, from the pioneers of genetic understanding to the pioneers of the Information Age, have received a pittance compared with those responsible for the financial innovations that brought our global economy to the brink of ruin.<br /><br />http://www.vanityfair.com/society/features/2011/05/top-one-percent-201105Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-62237927011170774262011-03-28T08:46:29.703-07:002011-03-28T08:46:29.703-07:00UN Human Development Report 2010 shows that Pakist...UN Human Development Report 2010 shows that Pakistan ranks among the top 10 movers in HDI in the decade of 2000-2010. <br /><br />See table 3 in <a href="http://hdr.undp.org/en/humandev/lets-talk-hd/2011-01/" rel="nofollow">Let's Talk Human Development</a>.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-41058573948470396132011-03-27T20:31:26.430-07:002011-03-27T20:31:26.430-07:00Arab protesters demand democracy, but not seculari...Arab protesters demand democracy, but not secularism, says <a href="http://www.amconmag.com/blog/illiberal-islam/" rel="nofollow">Michael Scheuer</a>, former Bin Laden hunter at the CIA:<br /><br /><i>The Arab world’s unrest has brought forth gushing, rather adolescent analysis about what the region will look like a year or more hence. Americans have decided that these upheavals have everything to do with the advent of liberalism, secularism, and Westernization in the region and that Islamist militant groups like al-Qaeda have been sidelined by the historically inevitable triumph of democracy—a belief that sounds a bit like the old Marxist-Leninist claptrap about iron laws of history and communism’s inexorable triumph.<br /><br />How has this judgment been reached? Primarily by disregarding facts, logic, and history, and instead relying on (a) the thin veneer of young, educated, pro-democracy, and English-speaking Muslims who can be found on Facebook and Twitter and (b) the employees of the BBC, CNN, and most other media networks, who have suspended genuine journalism in favor of cheerleading for secularism and democracy on the basis of a non-representative sample of English-speaking street demonstrators and users of social-networking sites. The West’s assessment of Arab unrest so far has been—to paraphrase Sam Spade’s comment about the Maltese Falcon—the stuff that dreams, not reality, are made of.<br /><br />A year from now, we will find that most Arab Muslims have neither embraced nor installed what they have long regarded as an irreligious and even pagan ideology—secular democracy. They will have instead adhered even more closely to the faith that has graced, ordered, and regulated their lives for more than 1400 years, and which helped them endure the oppressive rule of Western-supported tyrants and kleptocrats.<br /><br />This does not mean that fanatically religious regimes will dominate the region, but a seven-year Gallup survey of the Muslim world published in 2007 shows that a greater degree of Sharia law in governance is favored by young and old, moderates and militants, men and even women in most Muslim countries. While a façade of democracy may well appear in new regimes in places like Egypt and Tunisia, their governments will be heavily influenced by the military and by Islamist organizations like the Muslim Brotherhood and al-Qaeda. If for no other reason, the Islamist groups will have a powerful pull because they have strong organizational capabilities; wide allegiance among the highly educated in the military, hard sciences, engineering, religious faculties, and medicine; and a reservoir of patience for a two-steps-forward, one-step-back strategy that is beyond Western comprehension. We in the West too often forget, for example, that the Muslim Brotherhood and al-Qaeda draw from Muslim society’s best and brightest, not its dregs; that al-Qaeda has been waging its struggle for 25 years, the Muslim Brotherhood for nearly 85 years; and that Islam has been in the process of globalizing since the 7th century.<br /><br />As new Arab regimes develop, Westerners also are likely to find that their own deep sense of superiority over devout Muslims—which is especially strong among the secular left, Christian evangelicals, and neoconservatives—is unwarranted. The nearly universal assumption in the West is that Islamic governance could not possibly satisfy the aspirations of Muslims for greater freedom and increased economic opportunity—this even though Iran has a more representative political system than that of any state in the region presided over by a Western-backed dictator. No regime run by the Muslim Brotherhood would look like Canada, but it would be significantly less oppressive than those run by the al-Sauds and Mubarak. This is not to say it would be similar to or more friendly toward the West—neither will be the case—but in terms of respecting and addressing basic human concerns they will be less monstrous.</i>Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-61764207347528904182011-03-27T13:53:26.192-07:002011-03-27T13:53:26.192-07:00Here's recent Businessweek report on corruptio...Here's recent <a href="http://www.businessweek.com/magazine/content/11_14/b4222012984187.htm" rel="nofollow">Businessweek</a> report on corruption in Japanese construction industry:<br /><br /><i> The beneficiaries of all that (post WWII) spending were the so-called zenekon, large construction companies such as Kajima, Shimizu, Obayashi, and Taisei. The strength of the zenekon ensures that Japan is ready to rebuild quickly in the wake of its latest—and still unfolding—catastrophe, just as it did after the 1995 Kobe earthquake. But the sector, while a point of pride catered to by the nation's elected leaders and bureaucrats, isn't always a force for good. Proof lies all over Japan—in mammoth tunnels and bridges to nowhere, dams built against the advice of engineers, and seawalls raised over the objections of those they were purported to protect.<br /><br />The ruling Democratic Party of Japan came to power in 2009 promising an end to wasteful public works projects and the cozy relationships between zenekon and politicians. The rebuilding of northeastern Japan following the Mar. 11 earthquake and the resulting tsunami and nuclear crisis will test that commitment. "They're going to have to contract out these projects in quick order, and that means companies with really tight ties to the contracting agency get the project," says Brian Woodall, a political scientist at Georgia Tech and author of Japan Under Construction. "It may be an opportunity for interested and powerful politicians to get involved, and that to me is not a good thing."<br />-----<br />The zenekon have traditionally been Japan's political kingmakers. From the 1970s until the 1990s, the companies donated generously to Liberal Democratic Party candidates, supporting the party's half-century reign. In a 1992 case that exposed the role the yakuza crime syndicates played in Japan's trucking and construction industries, testimony revealed that the nation's biggest firms had each donated some 20 million yen a year to a single LDP politician. In his book, Woodall describes a construction minister from the 1960s, Kono Ichiro, who would only meet with executives at his home after they paid a kutsunugidai ("shoe removal fee"), a zabutondai ("floor cushion fee"), and a nantokadai ("something-or-other fee"). In return, Japanese administrators and legislators steered public-works contracts to favored companies. And legislators did their best to grow the pot of money set aside for public works projects, especially in their home districts.<br /><br />The result of all that cronyism and graft: projects like the Joetsu Shinkansen railway, a high-speed line built in the 1970s at the behest of former prime minister Kakuei Tanaka through one of the least populated areas in the country; the Isahaya Bay Project, a controversial series of dikes built by Kajima, Obayashi, and others, to turn a bay into farmland; and the Tokyo Aqua-Line, a nine-mile bridge-tunnel spanning Tokyo Bay, built at a cost of $12 billion by Kajima, and today only lightly used.<br /><br />Prosecutors have periodically taken on the big firms, most recently in 2007, when the government won convictions against nearly all the zenekon—Obayashi CEO Takeo Obayashi, a descendant of the company's founder, resigned over the investigation, and the nation's farm minister, Toshikatsu Matsuoka, hanged himself. The Democratic Party of Japan's 2009 decision to freeze construction on an immense dam in Naganohara was seen as an attempt to follow through on its reformist campaign rhetoric.<br /></i>Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-50830184358680754502011-02-28T13:54:11.764-08:002011-02-28T13:54:11.764-08:00Here are some excerpts from an interesting Op Ed b...Here are some excerpts from an interesting Op Ed by Prof Lev Ginsburg on democracy in developing world, as published in <a href="http://english.aljazeera.net/indepth/opinion/2011/02/2011225181951493541.html" rel="nofollow">Aljazeera English</a>:<br /><br /><i>The basic reason for democracy's lack of solutions to such problems (poverty, economic disparity) is that its principles have been formulated in industrialised capitalist societies characterised by considerable cultural homogeneity and relatively small economic gaps.<br /><br />Democracy is a set of formal principles developed in Western Europe with the aim of facilitating the representation and articulation of the middle and working classes and designed to contain peacefully the conflicts between them and the upper class.<br /><br />In the absence of a balance of power between classes, and a consensual unifying national identity, the automatic installation of formal democratic principles might only make matters worse.<br />----------<br />When there is a systematic link between cultural identity and economic status, democracy becomes a problem, rather than a solution. It exacerbates cultural conflicts to the point of violence, because it provides a formal opportunity for the majority to force their will on the minority.<br /><br />Political sociologist Michael Mann has shown that in these cases democracy only serves to intensify conflicts among racial and ethnic groups, to which I would add, in the Middle Eastern context, the conflict between confessional groups and between the religious and the secular.<br />----------<br />The oldest case, mind you, is the US - the cradle of the democratic constitution which announced a "government of the people" and began the massacre of the American indigenous people because they were not considered part of "we, the people" of America.<br />--------<br />Whoever wants democracy under these conditions must first come up with a creative and consensual formula, according to which each cultural group would be free to live its unique cultural life without attempting to force its identity and customs on the entire citizen body.<br /><br />In other words, demonstrating for democracy is not enough. What the countries of the Middle East require is political consensus on mutual recognition of rights and coexistence, guaranteed by a constitution and institutionalised by electoral procedures and representative institutions.<br /><br />Egypt does have to worry, however, about economic inequality and the severe daily hardships suffered by most of its population. Without providing solutions to these problems, even the most democratic regime can be toppled by massive protests, possibly leading to new forms of dictatorship. A good example of such a failure of democracy was December 2001 in Argentina, when the masses flooded the streets calling for "all politicians to go home" and toppling five presidents in a row.<br /><br />This happened only two years after democratic elections swept a broad leftwing front to power, which had promised to bring the country out of its deep economic crisis, but failed. The elected government pursued the policy dictated by the International Monetary Fund (IMF), which protected the interests of foreign investors against those of the local middle and salaried class. The crisis caused all holders of local bank deposits to lose 70 per cent of their money, with the blessing of the IMF.<br /><br />Therefore, Egypt must realise that although democracy is essential, any formal constitution or system of government will not solve its economic problems. Immediately after the elections, Egypt's new policymakers will have to switch from the formal liberal discourse of democracy to face and discuss the fundamental questions of Egypt's economic structure. In the process, they are liable to discover that it is far more difficult to uproot a corrupt economic regime than to topple a single dictator.</i>Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-36059281104936367462010-10-26T12:30:23.666-07:002010-10-26T12:30:23.666-07:00The latest Transparency International report says ...The latest Transparency International <a href="http://www.allvoices.com/contributed-news/7136798-pakistan-ranked-34th-most-corrupt-country-in-2010" rel="nofollow">report</a> says corruption has significantly increased in Pakistan during the last two years. Pakistan has slipped from 134th place in 2008, to 139th in 2009 and 143rd in 2010:<br /><br /><i>KARACHI: Pakistan's decline continue in Corruption Perceptions Index (CPI) and now its Index Score is 2.3 against 2.4 in 2009, and out of 178 countries, its ranking as most corrupt country has slipped 7 ranks, from 42 in 2009 to 34 most corrupt country in 2010.<br /><br />The 2010 CPI shows that nearly three quarters of the 178 countries in the index score below five, on a scale from 0 (perceived to be highly corrupt) to 10 (perceived to have low levels of corruption), indicating a serious corruption problem.<br /><br />Syed Adil Gilani, Chairman TI Pakistan said in last two year there have been unprecedented cases of corruption involving tens of billions of rupees in public sector organization, which under the Rule of Law, should have been taken up by the National Accountability Bureau.<br /><br />He said the political will of the government to fight corruption is lacking which has resulted in the Supreme Court of Pakistan to take suo moto action against mega corruption in NICL, Pakistan Steel, Rental Power Plants.<br /><br />The CPI 2010 reveals that corruption in Pakistan is increasing, while in Bangladesh it is decreasing. Bangladesh was perceived to be the most corrupt country in 2001, 2002 and 2003 and its ranking in 2010 is 39 most corrupt country.<br /><br />Reduced corruption has paid dividends to Bangladesh whose annual GDP growth last year was over 5%, while Pakistan's GDP growth last year was near 2.4 %. Delay in formation of An Independent Accountability Commission by the parliament may further aggravate the situation.<br /><br />Chairman TI Pakistan said that the Supreme Court of Pakistan, which has a declared policy of Zero-Tolerance for Corruption on 22 March 2009, in its order of 12th October, 2010 in NICL Case No.18 of 2010 involving six procurements is considers the Violation of Public Procurement Rules 2004 as a criminal act. It is a landmark order, treating violation of Public Procurement Rules 2004 as a federal crime and it will help reduction in Corruption.<br /><br />The direct impact of increased corruption is witnessed in the rise in the prices of food commodities which according to the latest official data of Federal Bureau of Statistics, have increased up to 120 percent in last one year viz. sugar from Rs 54 to Rs 80, pulses from Rs 50 to Rs 110, eggs from Rs 35 to Rs 60, and the Foreign Direct Investment for the fiscal year 2009-2010 dropped to US $ 2.21 billion from US$ 3.71 billion in FY 2008-2009, and in July-Sept 2010 it is further dropped to US $ 387.4 million ( 68% of last year).<br /><br />Foreign debt on Pakistan increased from US $ 40 Billion in 1999 to US $ 46 billion in 2008, whereas in last two years it has increased to US $ 53.5 billion.<br /><br />Across the board Application of Rule of Law, Merit based appointments and easy Access to Justice is the only solution to save Pakistan from corruption, which is responsible for poverty, inflation, terrorism, illiteracy, lack of electricity and hording of essential food commodities.<br /><br />In the 2010 CPI, Denmark, New Zealand and Singapore tie for first place with scores of 9.3. Unstable governments, often with a legacy of conflict, continue to dominate the bottom rungs of the CPI. Afghanistan and Myanmar share second to last place with a score of 1.4, with Somalia coming in last with a score of 1.1.</i>Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-42858218689092110072010-10-25T08:12:56.261-07:002010-10-25T08:12:56.261-07:00Here's a Times of India report on real state s...Here's a <a href="http://timesofindia.indiatimes.com/india/Top-generals-babus-netas-in-land-grab/articleshow/6805880.cms" rel="nofollow">Times of India</a> report on real state scandal involving Indian politicians, bureaucrats and generals:<br /><br /><i>NEW DELHI: The Mumbai-headquartered Western Naval Command (WNC) has raised serious security concerns and sought action by the navy, army and government against a highrise apartment complex in Mumbai's Colaba area, in which senior military leaders, politicians and bureaucrats own apartments. Among those allotted houses in the 31-storeyed Adarsh Housing Society are two former army chiefs, several other generals and admirals, and political leaders and senior bureaucrats.<br /><br />A recent letter to the navy chief from Vice-Admiral Sanjeev Bhasin, Flag Officer Commanding-in-Chief, WNC, and other documents with TOI reveal a conspiracy to appropriate, in the name of war widows and military veterans, a prime plot that was in the army's custody for years. In the process, the army even lied to the ministry of defence (MoD), which then misled Parliament, when a starred question regarding the ownership of the land came up in 2003.<br /><br />Almost every army officer involved in misleading Parliament now owns a house in the complex. In his letter, Admiral Bhasin says that the housing society is now refusing to part with the list of its members and the Maharashtra government too does not have the details.<br /><br />The building, immediately adjacent to a planned helipad and other military installations, has violated the CRZ ( coastal regulation zone) limit of a maximum height of 30 metres, and has now gone up to 100 metres, says Bhasin inhis letter dated July 5 of this year. The Western Naval Command chief has suggested that the army be asked to institute a formal inquiry to find out duplicity, if any, by serving/retired officers in reappropriation of the ecological park managed and occupied by HQ MG&G (headquarters, Maharashtra, Gujarat and Goa) Area since 1996. He also wants the MoD to take up the issue with the Maharashtra government and ensure that further construction is stopped and occupancy permission is not given.<br /><br />The controversy fundamentally hinges around whether the plot of land belonged to the army or not and in this matter, several senior army officials were more than cooperative in declaring that it did not. Crucial documents that prove the army's possession of the land and the Maharashtra government's past commitment to give the plot to the army have gone missing from the records of the concerned army offices in Mumbai and Pune. TOI now has many of those documents. When we sent a detailed questionnaire based on these undisclosed facts to the army headquarters a few weeks ago, the only reply was, "We are looking into all aspects brought out by you."</i><br /><br /><br />Read more: Top generals, babus & netas in land-grab - The Times of India http://timesofindia.indiatimes.com/india/Top-generals-babus-netas-in-land-grab/articleshow/6805880.cms#ixzz13Np5thJIRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-9950112962669512332010-09-28T08:14:16.753-07:002010-09-28T08:14:16.753-07:00It seems that in India, too, the Army is more hone...It seems that in India, too, the Army is more honest and competent than the civilians. Here's a <a href="http://news.rediff.com/report/2010/sep/28/cwg-army-rebuilds-fallen-bridge-in-4-days.htm" rel="nofollow">rediff report</a> about rapid rebuilding of the collapsed footbridge at Commonwalth Games in Delhi:<br /><br /><i>It took seven years and Rs. 5 crore for a company to build a Foot Over Bridge (FOB) near the Jawaharlal Nehru [ Images ] Stadium, which then collapsed. The Indian Army [ Images ], which was called in to salvage the Delhi's [ Images ] pride and build a temporary FOB, has done the same job in four days flat and at a fraction of the original cost. <br /><br />The Indian Army is now applying finishing touches to a Bailey Bridge, after a desperate Commonwealth Games [ Images ] Organising Committee and the Delhi government called them in to erect the temporary structure. The Bailey bridge will be used by spectators to reach the stadium after parking their cars at Safdarjung Airport.<br /><br />Army officials said that the main structure had been erected by Monday evening, with three piers of varying heights under 20-feet each fixed to support the bridge. Jawans were seen hard at work on the steps going down to the stadium, which technically is the only work remaining to be done. The steps from the parking lot to the bridge had been put in place on Monday. The 12-feet floor of the bridge has also been put in place.<br /><br />Security personnel from the Delhi police and the Army were seen guarding the worksite. Traffic police had also been deployed to control the traffic on the elevated Barapullah Nullah road to allow the army to carry on with their work.<br /><br />Over 700 combat engineers from The Madras Engineer Group, informally known as the Madras Sappers (a regiment of the Corps of Engineers of the Indian Army) began work on the bridge on Saturday afternoon. The Indian Army and the Delhi government had said that the bridge, which has three piers and have four spans spread over 250 feet, was expected to be delivered in five days.<br /><br />"We will conduct a mandatory security test before handing over the bridge.The only addition to a standard Bailey bridge is the insertion of three piers, which we did for safety," Commanding Officer, Colonel Dinesh Khanna told rediff.com<br /><br />The Bailey bridge is being built at the exact spot where its collapsed predecessor stood. The concrete pillars on either side of Barapullah Nallah road were not damaged when the earlier bridge collapsed and the Bailey bridge will use these pillars as its base, Khanna said.<br /><br />A Bailey bridge is a temporary military structure used for relief operations like flood or collapsed bridges. All its components are made of metal and are portable. The newly constructed Bailey bridge will be able to accommodate more people than what was estimated of the collapsed bridge, Khanna said.<br /><br />"The floor of the bridge is about 12-feet wide and can even accommodate vehicles. It will be able to take the weight of more spectators than the current estimates," Khanna added.<br /><br />The decision to erect the temporary structure was taken after security agencies told civic agencies that the walking route from the parking to the stadium without the bridge would be about a kilometer long.<br /><br />The 95 metre-long hanging foot-over bridge had collapsed on September 21, injuring 27 people. The bridge was being built along with another over bridge at the cost of Rs 10.5 crore by Chandigarh-based company PNR Infra, which has been blacklisted by the Delhi government. </i>Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-393832804275597162010-07-19T07:55:04.228-07:002010-07-19T07:55:04.228-07:00Here's a New York Times quoting Riyaz Hussain...Here's a New York Times <a href="http://www.nytimes.com/2010/07/19/world/asia/19taxes.html?_r=2&hp" rel="nofollow"></a> quoting Riyaz Hussain Naqvi, a retired government official who worked in tax collection for 38 years, as saying, “This is a system of the elite, by the elite and for the elite. It is a skewed system in which the poor man subsidizes the rich man.”<br /><br /><i>The problem starts at the top. The average worth of Pakistani members of Parliament is $900,000, with its richest member topping $37 million, according to a December study by the Pakistan Institute of Legislative Development and Transparency in Islamabad.<br /><br />While Pakistan’s income from taxes last year was the lowest in the country’s history, according to Zafar ul-Majeed, a senior official in the Federal Board of Revenue, the assets of current members of Parliament nearly doubled from those of members of the previous Parliament, the institute study found.<br /><br />The country’s top opposition leader, Nawaz Sharif, reported that he paid no personal income tax for three years ending in 2007 in public documents he filed with Pakistan’s election commission. A spokesman for Mr. Sharif, an industrialist who is widely believed to be a millionaire, said he had been in exile and had turned over positions in his companies to relatives.<br /><br />A month of requests for similar documents for Pakistan’s president and prime minister went unanswered by the commission; representatives for the men said they did not have the figures.<br /><br />“Taxes are the Achilles’ heel of Pakistani politicians,” said Jahangir Tareen, a businessman and member of Parliament who is trying to put taxes on the public agenda. He paid $225,534 in income tax in 2009, a figure he made public in Parliament last month. “If you don’t have income, fine, but then don’t go and get into a Land Cruiser.”<br /><br />The rules say that anyone who earns more than $3,488 a year must pay income tax, but few do. Akbar Zaidi, a Karachi-based political economist with the Carnegie Endowment, estimates that as many as 10 million Pakistanis should be paying income tax, far more than the 2.5 million who are registered.<br /><br />Out of more than 170 million Pakistanis, fewer than 2 percent pay income tax, making Pakistan’s revenue from taxes among the lowest in the world, a notch below Sierra Leone’s as a ratio of tax to gross domestic product. </i>Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-24823808053255686682010-06-27T09:49:57.322-07:002010-06-27T09:49:57.322-07:00Here's an interesting opinion by a ferozk at C...Here's an interesting opinion by a ferozk at <a href="http://www.chowk.com/ilogs/78627/30257" rel="nofollow">Chowk.com</a> about bad governance being the biggest problem in Pakistan:<br /><br /><i>In the days ahead, Pakistan's major problem will not be so much as terrorism, or hyper-inflation or a progressively victimized and ignored electorate, but the issues of misgovernance. This issue will compound all the other issues facing and challenging Pakistan and in the process, accelerate the dystopian nature of the Pakistani polity into a complete failure. Pakistan is suffering from an unimaginable crisis of a lack of governance, because there is no government in Pakistan. Period.<br /><br />It seems that elections of 2008 did not elect a government to power as much as it installed a political party into power. Pakistan Peoples Party is a dysfunctional party, whose loyality is divided between the idolized cult of Benazir Bhutto and the dread of Asif Ali Zardari. Its leadership is centralized within the cabal that supports Asif Ali Zardari and runs the country from the presidency, law ministery and the interior ministery in Islamabad. All the laws and decisons, which affect Pakistan are made in the presidency and the parliament, which is supposed to be the sovereign voice of the people of Pakistan, is ignored.<br /><br />The government itself is confused. It claims to be a parliamentary government headed by a prime minister but yet appeases a presidential rule. Its ministers are dogged by allegations of corruption made worse by the fact that they are generally incompetent and mostly self-serving individuals. In the last two and a half years that this government has been in power, other than increasing its own sphere of power through the Eighteen Amendment, it never offered a solution to the problems faced by the people. Its battles in the parliament and its policies are designed to prolong its hold on power.<br /><br />Its silent partner and accomplice in the fraud being perpetuated on the Pakistani people is the Pakistan Muslim Leaque - Nawaz. The PML-N is also confused. Its leader, Nawaz Sharif, seems to be out of his depth, because he only wants to be the prime minister for a third time and does not wish to harm his changes of attaining that position. Nawaz Sharif, like other Pakistani politicans, is a bad leader not because he makes awful decisions, but because he makes no decisions at all! Nawaz Sharif generally follows the politics in Pakistan, hoping to exploit them for his benefit, instead of shaping the politics of Pakistan. In true sense of the word, he is more of a follower than a leader and that too a stunted bonzai leader groomed by his patron the Pakistani military.<br />------------------<br />Still, this government has to be given the chance to do nothing till 2013, because it will make the people realize the value of their vote and that they should not vote for a political party on the basis of sympathy, but what it will do for them once elected! Since 2008, the people of Pakistan have matured as far as their understanding of what democracy is and for many clowns in power; this is perhaps their last ride on the merry-go-round of power. Granted that there will be slips, but the levels of political expectations in Pakistan are increasing and with that comes a sense of accountibility to hold those in power responsible.<br /><br />On the whole, things are looking up in Pakistan! </i>Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.com