Showing posts with label Military. Show all posts
Showing posts with label Military. Show all posts

Saturday, May 24, 2025

American Prof John Mearsheimer on International Geopolitics in South Asia

Professor John Mearsheimer, a renowned international relations expert known for his theory of "offensive realism", has recently spoken to India's CNN-News18 about the impact of US-China competition on geopolitics in South Asia. Sharing his thoughts in interviews on India-Pakistan conflict after the Pahalgam attack, he said: "There is really no military solution to this (Kashmir) problem. The only way this can be solved once and for all is through a political solution that both sides find acceptable". 

Professor John Mearsheimer on India-Pakistan Conflict

Professor John Mearsheimer is a highly respected professor of political science at the University of Chicago. Here's how he introduces himself on his personal website:  "I am the R. Wendell Harrison Distinguished Service Professor in the Political Science Department at the University of Chicago, where I have taught since 1982. Above all else, I am an international relations theorist. More specifically, I am a realist, which means that I believe that the great powers dominate the international system, and they constantly engage in security competition with each other, which sometimes leads to war". 

He has said that neither China nor the US want a full-scale war between India and Pakistan that could escalate into a nuclear war. However, it is in China's interest to "see significant tensions between India and Pakistan to get India to devote a lot of its strategic thinking and resources against Pakistan" rather than on China. The US, on the other hand, wants India to focus all its energies on countering China. 

Talking about the recent "Operation Sindoor" launched by Indian Prime Minister Narendra Modi against Pakistan, Mearsheimer said it will not deter Pakistan. "By Operation Sindoor, India has responded like it has in the past. Don't think India wants a major war with Pakistan, it can't dominate on the lower or even the middle rungs of the escalation ladder", he said. 

On Chinese involvement in South Asia, Mearsheimer said: "China-Pakistan relations are quite good. The Chinese are providing excellent weaponry to Pakistan and will provide even better weapons in future".  "I don’t think China wants an India-Pakistan war but it wants to see significant tensions between India and Pakistan to get India to devote a lot of its strategic thinking and resources against Pakistan", he added. 

Talking about the US interest in South Asia, he said: "When it comes to countering China, India is the most important country for the US in South Asia. But the US also wants to maintain good relations with Pakistan to try to peel it away from China". 

Related Links:

Haq's Musings

South Asia Investor Review

Pakistan Downs India's French Rafale Jets in a Major Aerial Battle

Has Modi Succeeded Diplomatically or Militarily Against Pakistan After Pahalgam?

Has Pakistan Destroyed India's S-400 ADS?

Pakistan's Aircraft Exports

Pakistan Navy Modernization

West's Technological Edge in Geopolitical Competition

Modi's India: A Paper Elephant?

Pahalgam Attack: Why is the Indian Media Not Asking Hard Questions?

Ukraine's Lesson For Pakistan: Never Give Up Nukes!

Pakistan Economy Nears Trillion Dollars

Pakistan's Sea-Based Second Strike Capability

Riaz Haq Youtube Channel

VPOS Youtube Channel

Wednesday, May 14, 2025

Has Modi Succeeded Diplomatically or Militarily Against Pakistan After Pahalgam?

Indian Prime Minister Narendra Modi launched Operation Sindoor to "punish" Pakistan after blaming it for the Pahalgam militant attack without offering any evidence. He then quickly proceeded to seek and accept a US-brokered ceasefire within 100 hours of launching military strikes on Pakistan. Now he claims that India has succeeded in its objectives for Operation Sindoor. 

Let's examine Mr. Modi's claim of victory after seeking and accepting a ceasefire so soon after launching a large military operation. In terms of diplomacy, India clearly failed to prove its allegations against Pakistan to gain the support of the international community. Many of India's closest friends, including the US and Israel, condemned the Pahalgam attack but none held Pakistan responsible for it. At the same time, Pakistan's closest friends China and Turkey stood solidly with Pakistan. 

Militarily, India incurred heavy losses, including the loss of its most advanced Rafale fighter jets in a major aerial battle with the Pakistan Air Force. In fact, Mr. Modi was stunned by the robustness of Pakistan's retaliatory precision strikes with high-speed missiles and drone swarms.  He said: "Instead of supporting India's strike against terrorism, Pakistan started attacking India itself". He clearly wasn't expecting it when he ordered missile strikes against Pakistan. 

As to Mr. Modi's other claims about India's Operation Sindoor's "successes" against Pakistan, here's a good summation of their reality as seen by a veteran Indian diplomat MK Bhadrakumar:

"The bottom line is, Pakistan has demonstrated its nuclear deterrent capability. It is as simple as that. If Operation Sindoor were to be repeated every now and then, it would only have the same results and be halted unceremoniously within 100 hours. Eventually, it will not only lose all novelty to our ecstatic TV audience, but a troubled nation may eventually start blaming an inept leadership. Pakistan is a major military power. Creating potholes in an odd runway or rendering a radar dysfunctional temporarily will not intimidate that country. Succinctly put, it must be far better for India to take help from Trump, who harbors no animus against us, to solve the problem and move on with life". 

Related Links:

Haq's Musings

South Asia Investor Review

Pakistan Downs India's French Rafale Jets in a Major Aerial Battle

Pakistan's Cyber Attack and Defense Capability

IDEAS2024: Pakistan Defense Industry Expo

Pakistan's Aircraft Exports

Pakistan Navy Modernization

West's Technological Edge in Geopolitical Competition

Modi's India: A Paper Elephant?

Pahalgam Attack: Why is the Indian Media Not Asking Hard Questions?

Ukraine's Lesson For Pakistan: Never Give Up Nukes!

Pakistan Economy Nears Trillion Dollars

Pakistan's Sea-Based Second Strike Capability

Riaz Haq Youtube Channel

VPOS Youtube Channel

Friday, March 18, 2022

Top India Analysts Dispel "India's Size Illusion"

India's leaders and their western boosters have been promoting the country as an emerging superpower to counter rising China. They cite the size of India's economy, demography, military and consumer market to back up their assertions. These claims are challenged by India's former chief economic advisor Arvind Subramanian and Josh Felman, former head of IMF in India, in an article titled "India's Size Illusion".  In a similar article titled "The Chinese Threat No One Is Talking About — And How to Counter It", Sameer Lalwani, a senior fellow for Asia strategy at the Stimson Center, has raised serious questions about India's ability to counter China in the Indian Ocean region. 

Modi Claims 56 inch Chest 

Modi's 56 inch Chest:

"Desh ka bahut nuksaan hua hai", acknowledged Indian Prime Minister Narendra Modi after his military's 2019 failures against Pakistan in Balakot and Kashmir. This marked a major shift in Modi's belligerent tone that has been characterized by his boasts of "chhappan inch ki chhati" (56 inch chest) and  talk of  "munh tor jawab" (jaw-breaking response) and "boli nahin goli" (bullets, not talks) to intimidate Pakistan in the last few years.  These events should force India's western backers to reassess their strategy of boosting India as a counterweight to China.

India's Illusions:

Indian government's former Chief Economic Advisor Arvind Subramanian has enumerated and challenged arguments for what he calls "India's Size Illusion" as follows:

1. India’s economic size has not translated into commensurate military strength. Part of the problem is simple geography. (German Chancellor Otto Von) Bismarck (1815-1898) supposedly said that the US is bordered on two sides by weak neighbors and on two sides by fish. India, however, does not enjoy such splendid isolation. Ever since independence, it has been confronted on its Western frontier by Pakistan, a highly armed, chronically hostile, and often military-ruled neighbor. More recently, India’s northern neighbor, China, also has become aggressive, repudiating the territorial status quo, occupying contested land in the Himalayas, reclaiming territory in the east, and building up a large military presence along India’s borders. So, India may have fish for neighbors along its long peninsular coast, but on land it faces major security challenges on two fronts.

2.  Then there is the question of market size. As Pennsylvania State University’s Shoumitro Chatterjee and one of us (Subramanian) have shown, India’s middle-class market for consumption is much smaller than the $3 trillion headline GDP number suggests, because many people have limited purchasing power while a smaller number of well-off people tend to save a lot. In fact, the effective size of India’s consumer market is less than $1 trillion, far smaller than China’s and even smaller relative to the potential world export market of nearly $30 trillion.

Indo-Pacific Dominance:

In an article titled "The Chinese Threat No One Is Talking About — And How to Counter It", Sameer Lalwani, a senior fellow for Asia strategy at the Stimson Center, has raised serious doubts about India's ability to counter China in the Indian Ocean region. Here are a couple of excerpts from the article:

1. China has been building dozens of advanced warships that seem poised to head toward the vast body of water through which 80 percent of global seaborne trade transits.....Indeed, a deeper (US) partnership with India — the world’s largest democracy, on an upward economic trajectory, seemingly perfectly positioned to counter China on land and at sea — has been something of a holy grail for at least four U.S. administrations.......Yet what former Secretary of State Hillary Clinton a decade ago called a “strategic bet” on India does not seem to be paying off. Indian naval and political power in the Indian Ocean region is faltering, giving way to influence by Beijing. Many of these problems are of India’s own making.

2. There is increasing discussion and advocacy among China’s foreign policy scholars and former officials about an Indian Ocean fleet. Indeed, the idea is consistent with China’s efforts to acquire military facilities in the Horn of Africa, on Pakistan’s Indian Ocean coast, in Myanmar and in the UAE, which offers access to the Persian Gulf. China has also engaged in intelligence collection efforts in the region and increased its port visits and diplomatic presence.

India's "Accidental" Missile Firing:

India's March 9 "accidental firing" of Brahmos nuclear-capable supersonic cruise missile into Pakistan has raised serious questions about the safety of the Indian nuclear arsenal. Do the people in charge of India's nukes have basic competence to handle such weapons? Was this really an "unauthorized" or "accidental" firing? Why was there a long delay by New Delhi in acknowledging the incident?  Could Pakistan be blamed if it assumed that extremist right-wing Hindu elements had taken control of the missile system in India and fired it deliberately into Pakistani territory? Has the Indian government risked the lives of 1.6 billion people of South Asia?

Could this "errant" missile brought down commercial passenger planes that were in the air at the time of this "accidental" firing? Here's an excerpt from Bloomberg detailing air traffic in the flight path of the Indian Brahmos:

"Several planes passed through the direct trajectory of the missile that day, which flew from the Indian garrison town of Ambala and ended up in Mian Channu in Eastern Pakistan. They included a Flydubai jet heading to Dubai from Sialkot, an IndiGo plane going from Srinagar to Mumbai and an Airblue Ltd. flight from Lahore to Riyadh. All crossed the missile’s trajectory within an hour of its accidental launch, data from flight-tracking application Flightradar24 show.  Other international flights in the vicinity of the missile’s trajectory -- and within its range -- included a Kuwait Airways Co. jet heading to Guangzhou, China from Kuwait City, a Saudi Arabian Airlines flight to Riyadh from New Delhi, and a Qatar Airways service from Kathmandu to Doha, the data show. No advisory to pilots operating in the vicinity -- known as a notice to airmen or NOTAM -- was issued". 

India: A Paper Elephant:

In an article titled "Paper Elephant", the Economist magazine talked about how India has ramped up its military spending and emerged as the world's largest arms importer. "Its military doctrine envisages fighting simultaneous land wars against Pakistan and China while retaining dominance in the Indian Ocean", the article said. It summed up the situation as follows: "India spends a fortune on defense and gets poor value for money".

After the India-Pakistan aerial combat over Kashmir, New York Times published a story from its South Asia correspondent headlined: "After India Loses Dogfight to Pakistan, Questions Arise About Its Military".  Here are some excerpts of the report:

"Its (India's) loss of a plane last week to a country (Pakistan) whose military is about half the size and receives a quarter (a sixth according to SIPRI) of the funding is telling. ...India’s armed forces are in alarming shape....It was an inauspicious moment for a military the United States is banking on to help keep an expanding China in check".

Sunday, May 30, 2021

Pakistani Journalist Hamid Mir's Unhinged Response to Attack on Asad Toor

Hamid Mir, a primetime TV talk show host, has reacted angrily to an attack on fellow Pakistani journalist Asad Ali Toor this week. Without explicitly naming anyone in his emotional outburst against the Pakistan Army and the ISI (Inter-Services Intelligence Service), Mir has accused their leadership of cowardice in allegedly ordering attacks on journalists. Dredging up the name of "General Rani", believed to have been the mistress of former Army Chief and President Yahya Khan in the 1970s, Hamid Mir has threatened to reveal similar scandals of current Pakistan Army generals. “If you’re breaking into our homes to assault us, well, we cannot enter your homes as you have tanks and guns, but we can make things public, things from inside your homes,” Mir said at a journalists' rally in Islamabad.        

Hamid Mir (2nd from right) with Asad Toor


Pakistan ISI has denied any role in the attack on Toor.  A statement of the agency said: "The ISI believes that when the faces of the accused can be clearly seen on CCTV, there should be no hurdle in the investigation" It further added, "The continuation of such allegations shows that the ISI is being targeted [...] under an organized conspiracy".  

This entire episode has raised the following questions:

1. Why the attacks on journalists in Pakistan?  Are they specially targeted? Are other ordinary citizens subjected to similar but less publicized attacks? Is it a symptom of a larger phenomenon of failing criminal justice system?

2. Why are the Pakistani military and intelligence agencies automatically blamed without any investigation or evidence? Whose responsibility is it to carry out such investigations and prosecute perpetrators? 

3. Has Hamid Mir crossed the line between journalism and propaganda? Are some Pakistani journalists deliberately maligning Pakistani military and ISI leadership in the name of free speech? Should they be investigated for slander? 

4. Where do most Pakistanis stand vis-a-vis the military? Do they have greater confidence in the military or the politicians and journalists who blame the military for attacks? 

Please watch the following discussion on this subject:

https://youtu.be/-VuMWVKChE0



Tuesday, September 1, 2020

What is the "Evidence" of "Corruption" Against Retired General Asim Saleem Bajwa?

Pakistani reporter Ahmad Noorani has alleged that CPEC Authority Chairman Asim Bajwa's wife Farrukh Zeba is a shareholder in Bajwa family business. Noorani, currently on Alfred Friendly fellowship in the United States, further alleges that the value of these holdings has been under-reported by General Asim Bajwa in his declaration of assets that he made recently in his position as Special Assistant to the Prime Minister (SAPM).  What Bajwa family business is Mr. Noorani referring to? It is Bajco, a business that Asim Bajwa's brother Nadeem Bajwa built in the United States. Noorani has made multiple allegations of corruption against CPEC Authority Chairman Asim Bajwa. Of these allegations, the only one that may require further investigation is that General Asim Bajwa may have deliberately understated the value of his wife Farrukh Zeba's shares in Bajco, a company built by Asim Bajwa's brother Nadeem Bajwa who is a self-made millionaire. Undervaluing assets is the kind of allegation that many apply to many Pakistani politicians, judges, bureaucrats and others who are required by law to disclose their assets.

General Asim Bajwa's Wife's Shareholdings



Evidence Cited:

Ahmad Noorani has cited a document signed by Asim Bajwa's brothers and his wife as proof of ownership by Mrs. Asim Bajwa. They have also shared General Asim Bajwa's declaration of assets which clearly says "shares in family business" held "in wife's name" and values them at Rs. 3.1 million. Noorani says the value of shares is significantly understated.  Noorani also alleges that "(T)he growth of the Bajwa family’s business empire in the United States and later in Pakistan directly matches the rise in power of retired general Asim Saleem Bajwa, who is now chairman of the country’s massive China-financed infrastructure project and a special assistant to the prime minister".  Noorani implies that Nadeem Bajwa's success is built on his brother Asim Bajwa's corrupt earnings.

General Asim Bajwa's Declaration of Assets


Who is Nadeem Bajwa?

Nadeem Bajwa is General Saleem Bajwa's younger brother. While it is true that Nadeem Bajwa owns a large Papa Johns' franchise business in the United States, there is nothing to support the allegation that this business has been built with funds stolen and remitted from Pakistan. Nadeem Bajwa is a self-made millionaire. His story is, in fact, typical of many successful Pakistani immigrants who have worked hard to achieve entrepreneurial success in America.  The best example of a Pakistani immigrant's franchise success story is that of Shoukat Dhanani whose Dhanani Group's annual revenue is over $2 billion, according to Forbes magazine. Other examples of Pakistani immigrant multi-restaurant franchise success stories include Aziz HashimAslam KhanTabassum MumtazAli ButtShoukat Dhanani and many more. Most of them started as drivers, cooks or cashiers and then bought and built up their franchise successes.

Nadeem Bajwa's Success Story:

Nadeem Bajwa came to the United States as a student in 1991. He took a job as a pizza delivery driver for Domino's while going to college in Indiana. “The delivery driver job was one of the easiest when going to school,” Bajwa told Nation's Restaurant News in 2014. “There wasn’t a lot of stress or pressures and other students were doing it. I heard they made good pay, and every day you just deliver pizzas and make decent tips.”

In 1994, Bajwa took a job with Papa John’s as a driver, was quickly promoted to general manager and then operating partner within 10 months — all while continuing his education. “I was busy, and then when I got promoted I was still finishing up school,” he said. “But when you have goals in mind, you just keep going. Sometimes anxiety isn’t such a bad thing.”  Bajwa signed his first franchise in 2002 and then grew his business from there.

The franchisees such as Nadeem Bajwa's main asset is the prior franchise operations experience they bring. Franchisee and his/her partners/investors must also come up with 10-20% of the total funds needed to start operations. The rest of the money comes from commercial banks or other lenders such as the US Small Business Administration (SBA). Borrower must be creditworthy, typically must contribute some equity, and are expected to repay the loan out of the franchise's cash flow. The franchise loans from US Small Business Administration (SBA) offer the lowest rates. Some franchisers may also offer internal financing, according to Wall Street Journal.

Summary:

Pakistani reporter Ahmad Noorani has made multiple allegations of corruption against CPEC Authority Chairman Asim Bajwa. Of these allegations, the only one that may require further investigation is that General Asim Bajwa may have deliberately understated the value of his wife Farrukh Zeba's shares in Bajco, a company built by Asim Bajwa's brother Nadeem Bajwa who is a self-made millionaire. Undervaluing assets is the kind of allegation that may apply to many Pakistani politicians, judges, bureaucrats and others who are required by law to disclose their assets.  Nadeem Bajwa started in a low-level job in a pizza restaurant and worked his way up. His story is a typical immigrant success story like many other immigrant success stories in America.  Other examples of Pakistani immigrant multi-restaurant franchise success stories include Aziz HashimAslam KhanTabassum MumtazAli ButtShoukat Dhanani and many more. Most of them started as drivers, cooks or cashiers and then bought and built up their franchise successes.

Related Links:

Haq's Musings

South Asia Investor Review

Did Musharraf Steal Public Money? 

Pakistani Leaders in London After Panama Leaks

Edible Arrangements: A Pakistani-American Franchisor's Success Story

Culture of Corruption in Pakistan

Zardari Corruption Probe

President Pervez Musharraf's Legacy

We Hang Petty Thieves and Appoint Great Ones to High Offices

Capitalism's Achilles Heel by Raymond Baker

Nawaz Sharif's Report Card

Riaz Haq's Youtube Channel

Friday, August 28, 2020

Is CPEC Authority Chairman Asim Bajwa Guilty as Alleged?

Pakistani reporter Ahmad Noorani has recently alleged that "(T)he growth of the Bajwa family’s business empire in the United States and later in Pakistan directly matches the rise in power of retired general Asim Saleem Bajwa, who is now chairman of the country’s massive China-financed infrastructure project and a special assistant to the prime minister". “Out of total 99 companies, 66 are main companies, 33 companies are branch companies of some of the main companies, while five companies are dead now,” Ahmad Noorani alleges, adding that the businesses of the Bajwa family have been put under the umbrella called Bajco Group. Noorani ignores many well-known Pakistani immigrant success stories in US restaurant franchise business and jumps to the conclusion that Nadeem Bajwa's success must be built on his brother's alleged corruption in Pakistan. Noorani does not offer any evidence to back up his allegations.

Papa John's Franchisee Nadeem Bajwa

Who is Nadeem Bajwa?

Nadeem Bajwa is General Saleem Bajwa's younger brother. While it is true that Nadeem Bajwa owns a large Papa Johns' franchise business in the United States, there is nothing to support the allegation that this business has been built with funds stolen and remitted from Pakistan. Nadeem Bajwa's story is, in fact, typical of many successful Pakistani immigrants who have worked hard to achieve entrepreneurial success in America.  The best example of a Pakistani immigrant's franchise success story is that of Shoukat Dhanani whose Dhanani Group's annual revenue is over $2 billion, according to Forbes magazine.

Nadeem Bajwa's Success Story:

Nadeem Bajwa came to the United States as a student in 1991. He took a job as a pizza delivery driver for Domino's while going to college in Indiana. “The delivery driver job was one of the easiest when going to school,” Bajwa told Nation's Restaurant News in 2014. “There wasn’t a lot of stress or pressures and other students were doing it. I heard they made good pay, and every day you just deliver pizzas and make decent tips.”

In 1994, Bajwa took a job with Papa John’s as a driver, was quickly promoted to general manager and then operating partner within 10 months — all while continuing his education. “I was busy, and then when I got promoted I was still finishing up school,” he said. “But when you have goals in mind, you just keep going. Sometimes anxiety isn’t such a bad thing.”  Bajwa signed his first franchise in 2002 and then grew his business from there.

The very next year he signed a deal to develop 10 locations in Pittsburgh. He bought three locations in 2004, and then opened 10 units in 2006 and 2007. In 2008 he bought a 27-unit Papa John’s operator in Michigan and Indiana — the very same operator for whom he used to work.This is how most franchisees build their business. This is not at all unusual. Many franchisees start out as employees, get promoted and then become franchise owners. It's partly because franchisors prefer their franchisees to have prior business experience running a franchise.

Franchise Financing:

The franchisees such as Nadeem Bajwa's main asset is the prior franchise operations experience they bring. Franchisee and his/her partners/investors must also come up with 10-20% of the total funds needed to start operations. The rest of the money comes from commercial banks or other lenders such as the US Small Business Administration (SBA). Borrower must be creditworthy, typically must contribute some equity, and are expected to repay the loan out of the franchise's cash flow. The franchise loans from US Small Business Administration (SBA) offer the lowest rates. Some franchisers may also offer internal financing, according to Wall Street Journal.

Panama Leaks Dominated By Politicians:

Pakistani politicians and their supporters use allegations of corruption in Pakistani military to distract attention from their own well-documented corruption. Just a quick look at the names in leaked Panama Papers shows that politicians, not generals, dominate these lists. Pakistani names included in Panama Papers are those of several politicians and business people, but no generals, according to media reports.

 Prime Minister Nawaz Sharif is linked to 9 companies connected to his family name. Those involved are:  Hassan Nawaz, Hussain Nawaz, Maryam Nawaz, Relatives of Punjab Chief Minister and brother of Prime Minister Shahbaz Sharif are linked to 7 companies. They are: Samina Durrani and Ilyas Meraj.

Former Prime Minister Benazir Bhutto was linked to one company. Her relatives and associates are linked to others: Nephew Hassan Ali Jaffery Javed Pasha, Close friend of Asif Ali Zardari (4 companies), PPP Senator Rehman Malik (1 company), PPP Senator Osman Saifullah’s family (34 companies), Anwar Saifullah, Salim Saifullah, Humayun Saifullah, Iqbal Saifullah, Javed Saifullah, Jehangir Saifullah. The Chaudharies of Gujrat have not been linked personally but other relatives have including: Waseem Gulzar Zain Sukhera (co-accused with former Prime Minister Yusuf Raza Gilani’s son in the Hajj scandal).

Pakistani Businessmen in Panama Leaks: Real Estate tycoon Malik Riaz Hussain’s son (Bahria Town) Ahmad Ali Riaz (1 company), Chairman ABM Group of Companies Azam Sultan (5 companies), Pizza Hut owner Aqeel Hussain and family (1 company), Brother Tanwir Hassan Chairman Soorty Enterprise Abdul Rashid Soorty and family, Sultan Ali Allana, Chairman of Habib Bank Limited (1 company), Khawaja Iqbal Hassan, former NIB bank President (1 company), Bashir Ahmed and Javed Shakoor of Buxly Paints (1 company), Mehmood Ahmed of Berger Paints (1 company), Hotel tycoon Sadruddin Hashwani and family (3 companies), Murtaza Haswani Owner of Hilton Pharma, Shehbaz Yasin Malik and family (1 company), The Hussain Dawood family (2 companies), Shahzada Dawood Abdul Samad Dawood Partner Saad Raja, The Abdullah family of Sapphire Textiles (5 companies), Yousuf Abdullah and his wife, Muhammad Abdullah and his wife, Shahid Abdullah and his family, Nadeem Abdullah and family, Amer Abdullah and family, Gul Muhammad Tabba of Lucky Textiles, Shahid Nazir, CEO of Masood Textile Mills (1 company), Partner Naziya Nazir Zulfiqar Ali Lakhani, from Lakson Group and owner of Colgate-Palmolive, Tetley Clover and Clover Pakistan (1 company) and Zulfiqar Paracha and family of Universal Corporation (1 company).

Pakistani Judges in Panama Leaks: Serving Lahore High Court Judge Justice Farrukh Irfan, Retired Judge Malik Qayyum, Pakistani Media personnel in Panama Leaks: Mir Shakil-ur-Rehman of GEO-Jang Media Group (1 company).
Politicians Dominate Off-shore Company Owners in Panama Leaks 


NED Alum as Restaurant Franchisee:

At a panel I attended at NED Alumni Convention in Houston, I met Tabassum Mumtaz, an NED alum, whose story is similar to Nadeem Bajwa's. He decided to try his luck as an entrepreneur outside of engineering.  Tabassum started working as a cook for Long John Silver and, through his hard work, ended up owning the entire chain of the seafood restaurants. In addition, Tabassum is a grand franchisee of A&W, KFC and Taco Bell restaurants in some regions of the country run under Ampex Brands.  The annual revenue from the restaurants exceeds a billion dollars.

Dhanani Group:

Shoukat Dhanani came from Pakistan to attend college in the United States. His story is similar to that of Nadeem Bajwa, a classic tale of entrepreneurship, and how a hard-working family can build a giant, and highly successful, business without venture capital or private equity money, according to Forbes magazine. The group today includes 130 convenience stores in the Houston area, 502 Burger Kings and 170 Popeyes. It remains 100% family owned and operated. “We always believed in staying low-key and under the radar,” Dhanani told Forbes. “That’s what our dad taught us.”

Summary:

There is no evidence to support the allegation by reporter Ahmad Noorani that Papa John's franchisee Nadeem Bajwa's success is built on funds illegally taken and remitted by his brother General Asim Bjawa in Pakistan. Nadeem Bajwa's franchise success story is not in any way unique. There are many Pakistani immigrants who came to the United States to study, worked at a franchise restaurant part-time and  then became successful multiple franchise owners. The most prominent among these Pakistani immigrant entreprenrurs is Shoukat Dhanani of Dhanani Group that does over $2 billion a year business.

Related Links:

Haq's Musings

South Asia Investor Review

Did Musharraf Steal Public Money? 

Pakistani Leaders in London After Panama Leaks

Edible Arrangements: A Pakistani-American Franchisor's Success Story

Culture of Corruption in Pakistan

Zardari Corruption Probe

President Pervez Musharraf's Legacy

We Hang Petty Thieves and Appoint Great Ones to High Offices

Capitalism's Achilles Heel by Raymond Baker

Nawaz Sharif's Report Card

Riaz Haq's Youtube Channel

Sunday, March 10, 2019

India: Rising Great Power or Paper Tiger?

Is India what The Economist magazine describes a "paper elephant" in spite of huge increases in its military spending? Has this perception been reinforced by post-Pulwama events between India and Pakistan? Have the failures of Indian military in Balakot and Kashmir caused a reassessment of the western narrative that says "India is a rapidly rising and Pakistan is collapsing"?

India-Pakistan Military Spending: Infographic Courtesy The Economist

Do Indians, particularly its Hindu Nationalists, suffer from what Indian diplomat and politician Sashi Tharoor has described as "India's Israel Envy"? Is the Hindu Supremacist ideology similar to Naziism and Fascism? Does it represent a serious threat to world peace? Can it lead to a global disaster with billions dead if the two South Asian nations target each other with nuclear weapons?

Have post-Pulwama events brought Kashmir on the international agenda? New York Times editorial board has written: "As long as #India and Pakistan refuse to deal with their core dispute — the future of #Kashmir, India’s only Muslim-majority state — they face unpredictable, possibly terrifying, consequences." Does this suggest that Kashmir issue is back on the agenda? IOC, the world's second largest organization of 57 countries, has condemned “in the strongest possible terms recent wave of Indian terrorism in occupied Jammu and Kashmir that has resulted in the deaths of 48 people in the month of November alone, making 2018 one of the deadliest years." Is this a rejection of Indian position on Kashmir?

Viewpoint From Overseas host Misbah Azam discusses these questions with Sabahat Ashraf (iFaqir) and Riaz Haq (www.riazhaq.com).

https://youtu.be/Xc2oHd-T5qs




Haq's Musings

South Asia Investor Review

Rise of "Hindu Nazis" in India

Balakot and Kashmir: Fact Checkers Expose Indian Lies

Is Pakistan Ready for War with India?

Pakistan-Made Airplanes Lead Nation's Defense Exports

Modi's Blunders and Delusions 

India's Israel Envy: What If Modi Attacks Pakistan?

Project Azm: Pakistan to Develop 5th Generation Fighter Jet

Pakistan Navy Modernization

Pakistan's Sea-Based Second Strike Capability

Who Won the 1965 War? India or Pakistan?

Wednesday, March 6, 2019

Modi's India: A Paper Elephant?

"Desh ka bahut nuksaan hua hai", acknowledged Indian Prime Minister Narendra Modi after his military's recent failures against Pakistan in Balakot and Kashmir. This marked a major shift in Modi's belligerent tone that has been characterized by his boasts of "chhappan inch ki chhati" (56 inch chest) and  talk of  "munh tor jawab" (jaw-breaking response) and "boli nahin goli" (bullets, not talks) to intimidate Pakistan in the last few years.  The recent events are forcing India's western backers to reassess their strategy of boosting India as a counterweight to China.



Balakot and Kashmir:

Indian government and media have made a series of false claims about Balakot "militant casualties" and "shooting down Pakistani F16".  These claims have been scrutinized and debunked by independent journalists, experts and fact checkers. There is no dispute about the fact that Squadron Leader Hasan Siddiqui of Pakistan Air Force (PAF), flying a Pakistan-made JF-17 fighter, shot down Wing Commander Abhinandan Varthaman of Indian Air Force (IAF) flying a Russia made MiG 21. Abhinandan was captured by Pakistan and then released to India.

Beautiful Balakot, Kaghan Valley, Pakistan


Western Narrative:

The widely accepted western narrative about India and Pakistan goes like this: "India is rapidly rising while Pakistan is collapsing". In a 2015 report from South Asia, Roger Cohen of New York Times summed it up as follows: "India is a democracy and a great power rising. Pakistan is a Muslim homeland that lost half its territory in 1971, bounced back and forth between military and nominally democratic rule, never quite clear of annihilation angst despite its nuclear weapons".

India-Pakistan Military Spending: Infographic Courtesy The Economist

India: A Paper Elephant?

In an article titled "Paper Elephant", the Economist magazine talked about how India has ramped up its military spending and emerged as the world's largest arms importer. "Its military doctrine envisages fighting simultaneous land wars against Pakistan and China while retaining dominance in the Indian Ocean", the article said. It summed up the situation as follows: "India spends a fortune on defense and gets poor value for money".

Pakistan Defense Spending. Source: Jane's Defense


After the India-Pakistan aerial combat over Kashmir, New York Times published a story from its South Asia correspondent headlined: "After India Loses Dogfight to Pakistan, Questions Arise About Its Military".  Here are some excerpts of the report:

"Its (India's) loss of a plane last week to a country (Pakistan) whose military is about half the size and receives a quarter (a sixth according to SIPRI) of the funding is telling. ...India’s armed forces are in alarming shape....It was an inauspicious moment for a military the United States is banking on to help keep an expanding China in check".

India-Pakistan Ratios of Tanks and Soldiers


Ineffective Indian Military:

Academics who have studied Indian military have found that it is ineffective by design. In "Army and Nation: The Military and Indian Democracy Since Independence",  the author Steven I. Wilkinson, Nilekani Professor of India and South Asian Studies and Professor of Political Science and International Affairs at Yale, has argued that the civil-military constraints that have helped prevent a coup have hurt Indian military effectiveness and preparedness in at least three important ways:

(1) the weakening of the army before the 1962 China war;

(2) the problems caused for defense coordination and preparation by unwieldy defense bureaucracy, duplication of functions among different branches and lack of sharing of information across branches and

(3) the general downgrading of pay and perks since independence which has left the army with huge shortage of officers that affected the force's discipline capabilities.

Summary:

India's international perception as a "great power rising" has suffered a serious setback as a result of its recent military failures against Pakistan which spends only a sixth of India's military budget and ranks 17th in the world, far below India ranking 4th by globalfirepower.com.  "Desh ka bahut nuksaan hua hai", acknowledged Indian Prime Minister Narendra Modi after his military's recent failures in Balakot and Kashmir. This marked a major shift in Modi's belligerent tone that has been characterized by his boasts of "chhappan inch ki chhati" (56 inch chest) and  talk of  "munh tor jawab" (jaw-breaking response) and "boli nahin goli" (bullets, not talks) to intimidate Pakistan in the last few years.  The recent events are forcing India's western backers to reassess their strategy of boosting India as a counterweight to China.

Here's a discussion on the subject:

https://youtu.be/tEWf-6cT0PM




Here's Indian Prime Minister Modi making excuses for his military's failures:

https://youtu.be/QIt0EAAr3PU




Sunday, August 19, 2018

PTI Chief Imran Khan Inaugurated Pakistan's 22nd Prime Minister

Pakistan Tehreek e Insaaf (PTI) Chief Imran Khan became Pakistan's 22nd prime minister after his 22-year-long quest for the highest executive office in the land. What is the historic significance of this event for Pakistan's democracy? Has it finally ended the three-decade-long dynastic duopoly of the Pakistan Muslim League and the Pakistan People's Party which are controlled by Sharifs and Bhuttos? Will the emergence of the PTI as the 3rd political force likely reduce corruption and improve governance in Pakistan?

Is Imran Khan's nomination of Sardar Usman Buzdar as Punjab Chief Minister a mistake? Will Prime Minister Imran Khan make mistakes as he begins his tenure? Will his opponents jump at every opportunity to attack him when he makes mistakes? Should he be allowed to make mistakes as he learns on the job? Is he entitled to a honeymoon period?

 Do the Pakistani military and intelligence agencies call all the shots in Pakistan? Is the military's role in Pakistani electoral process highly exaggerated? Are there other forces including political parties and the voters which are as influential or even more influential in determining the outcome of elections? Does Imran Khan owe his victory to the alleged military support?

How is ISI different from other national intelligence agencies like CIA? Are Pakistani intelligence agencies unique in their influence on politicians and the political processes? Why does US President Trump think "Deep State" helped his opponents? Why did US Senator Charles Schumer warn Trump by telling MSNBC host Rachel Maddow: "they (intelligence agencies) have six ways from Sunday to get back at you"?

Viewpoint From Overseas host Misbah Azam discusses these questions with panelists Sabahat Ashraf and Riaz Haq (www.riazhaq.com)

https://youtu.be/X7smf1f4iN8



Related Links:

Thursday, November 30, 2017

Why Do Majority of Indians Favor Military Rule?

A majority of Indians, 53%, favor military rule, according to a Pew Research Center survey released recently. India is one of only 4 countries where a majority is in favor of a military government, according to the survey. Vietnam, Indonesia, and South Africa are the other three.

Source: Pew Research Center

Pew Survey Question:

The Pew survey questionnaire asked respondents to vote on direct democracy, representative democracy,  technocrats rule, rule by a strong leader and rule by military. Here are the definitions of these in the survey:

Direct Democracy: A democratic system where citizens, not elected officials, vote directly on major national issues to decide what becomes law.

Representative Democracy: A democratic system where representatives elected by the people decide what becomes law. 

Rule by Experts: Experts, not elected officials, make decisions according to what they think is best for the country.

Rule by a Strong Leader: A system in which a strong leader can make decisions without interference from parliament or the courts.

Rule by Military: The military rules the country.

Indian Responses:

Majorities voted yes on all 5 choices with direct democracy leading with 76%, followed by representative democracy 75%, rule by experts 65%, rule by strong leader 55% and rule by the military 53%.

The results are a bit confusing but  it does seem that the majority of the people in India are open to all forms of government ranging from democratic to autocratic.

Per Capita GDP in US$ Source: Hindustan Times


Why Autocracy?

The survey results raise the following question: Why are the majority of Indians so open to 3 non-democratic choices out of 5? I think the answer to this question can be found in the following post titled "Civilian "Democracy" vs Military "Dictatorship" Debate in Pakistan" that I wrote three years ago:

Civilian "Democracy" vs Military "Dictatorship":

Asian Tigers became Asian Tigers under dictators before they became democratic. There is not a single example of a developing country that became a developed country under democratic rule since WW II. Development gap between China, a one-party state, and India, a multi-party democracy, is huge and growing. Developed countries in Europe and North America took centuries to develop under democratic systems. Asian Tigers did it much faster under dictators. China is doing so now. Asia's experience has shown that democratic processes act as speed breakers to slow pace of development and stymie efforts to reduce poverty, ignorance and disease to deliver higher living standards. Let's examine these statements and see how they apply to Pakistan.

Asian Tigers:

Taiwan, Singapore and South Korea  experienced a dramatic rise under authoritarian regimes from 1960s through 1990s. The dictators who led these states also showed the way to fellow Asian dictators in Indonesia, Malaysia, Thailand and China who also industrialized and prospered using the same formula that rejected the Washington Consensus of democracy and free markets as the basis for development of all nations.



1960s Pakistan:

Pakistan was on a similar trajectory as the Asian Tigers during 1960s under Gen Ayub Khan's rule. GDP growth in this decade jumped to an average annual rate of 6 percent from 3 percent in the 1950s, according to Pakistani economist Dr. Ishrat Husain. Dr. Husain says: "The manufacturing sector expanded by 9 percent annually and various new industries were set up. Agriculture grew at a respectable rate of 4 percent with the introduction of Green Revolution technology. Governance improved with a major expansion in the government’s capacity for policy analysis, design and implementation, as well as the far-reaching process of institution building.7 The Pakistani polity evolved from what political scientists called a “soft state” to a “developmental” one that had acquired the semblance of political legitimacy. By 1969, Pakistan’s manufactured exports were higher than the exports of Thailand, Malaysia and Indonesia combined."



Bangladesh:

Some argue that it was Ayub Khan's rule in 1960s that resulted in the loss of Pakistan's eastern wing and the creation of Bangladesh. I strongly disagree with this view. I believe that ill-conceived general elections of 1970 gave the opportunity to Pakistani politicians to lie to mostly poor and illiterate electorate of the time to win their votes. Shaikh Mujib exploited normal regional economic disparities that can be found in any country, including India and US, to argue that Bengalis were unfairly treated. Just look at the income data for various states in US or in India and you'll see huge gaps in incomes and standards of living. Indian Punjab's per capita income of Rs. 88,783 is 1.4 times higher than West Bengal's Rs. 62,831. Bihar's per capita income of Rs. 28,317 is less than a quarter of Haryana's Rs. 122,660. New Jersey's per capita income of  $53,628 is much higher than Mississippi's $33,073. 

In the end, Zulfikar Ali Bhutto refused to sit down and talk with Shaikh Mujib and forced the split. Here's how one of Bhutto's friends late Gov Salman Taseer offered his view in his book "Bhutto: A Political Biography"

"Blame can never be satisfactorily or finally apportioned to the major players in this grisly drama, but that Bhutto, Mujibur Rahman and Yahya Khan share responsibility there can be no doubt. Many, indeed, are inclined to the view that Bhutto, as the most sure-footed politician of the three and thus the best equipped to assess the consequences of his actions, must accept the lion's share of the blame. Argument on this point will remain one of the central themes of Pakistani politics, perhaps for decades."

The fact is that economic gap between former East Pakistan and Pakistan has grown over the last 40 years, and the per capita income in Pakistan now stands at more than twice Bangladesh's in 2012 in nominal dollar terms,  higher than 1.6X in 1971.

The China Miracle: Fastest GDP Growth in World History



India: 


As China's share of the world's extreme poor (living below $1.25 per day per person level) has dramatically declined, India's share has significantly increased.  India now contributes 33% (up from 22 % in 1981). While the extreme poor in Sub-Saharan Africa represented only 11 percent of the world’s total in 1981, they now account for 34% of the world’s extreme poor, and China comes next contributing 13 percent (down from 43 percent in 1981), according to the World Bank report titled State of the Poor.

The share of poverty in  South Asia region excluding India has slightly increased from 7% in 1981 to 9% now, according to the report. India now has the world's largest share of the world's poor, hungry, illiterate and sick who still lack access to very basic sanitation.

Pakistan Growth By Decades. Source: National Trade and Transport Facility


In a recent book "Street Smarts", a hedge fund Manager Jim Rogers makes some important points to explain how East Asians have succeeded in rapidly developing while others have failed:

 "Many Asians say that the Asian Way is first to open your economy, to bring prosperity to your country, and then, only after that, to open up your political system. They say that the reason the Russians failed is that did it the other way around. Russia opened up its political system in the absence of a sound economy, everybody bitched and complained, and chaos inevitably ensued. As an example of the Asian path to political openness, they point to South Korea and Taiwan, both of which were once vicious dictatorships supported by the United States. Japan was at one time a one-party state supported by the US military. Singapore achieved its current status under one-party, authoritarian rule. All these countries have since become more prosperous and more open. 

Plato, in The Republic, says that the way societies evolve is by going from dictatorship to oligarchy to democracy to chaos and back to dictatorship. It has a certain logic, and Plato was a very smart guy. I do not know if the Asians ever read The Republic, but the Asian way seems to suggest that Plato knew whereof he spoke." Not only is the Asian model different from that of the Soviets, it stands China in marked contrast to those thirty-year dictatorships previously mentioned. Chinese leaders have put a high premium upon changing the country's economy, presumably to seek prosperity for the 1.3 billion people who live there." 

"And yet,in 1947, when it achieved independence, India was one of the more successful countries in the world, a democratic country. But despite democracy, or maybe because of it, India has never lived up to its potential. China was a shambles as recently as 1980. India was far ahead of it. Bt since then China has left India, literally in the dust....As China rises, India continues to decline relatively. Its debt-to-GDP ratio is now 90 percent, making a strong growth rate virtually impossible."




Pakistan's Economic History:

Since 1947, Pakistan has seen three periods of military rule: 1960s, 1980s and 2000s. In each of these decades, Pakistan's economy has performed significantly better than in decades under political governments.



In a 10/12/1988 interview with Professor Anatol Lieven of King's College and quoted in a book "Pakistan-A Hard Country", here is how eminent Pakistani economist Dr. Mabubul Haq explained lower economic growth under "democratic" governments:


"..every time a new political government comes in they have to distribute huge amounts of state money and jobs as rewards to politicians who have supported them, and short term populist measures to try to convince the people that their election promises meant something, which leaves nothing for long-term development. As far as development is concerned, our system has all the worst features of oligarchy and democracy put together.

That is why only technocratic, non-political governments in Pakistan have ever been able to increase revenues. But they can not stay in power for long because they have no political support...For the same reason we have not been able to deregulate the economy as much as I wanted, despite seven years of trying, because the politicians and officials both like the system Bhutto (Late Prime Minister Zulfikar Ali Bhutto) put in place. It suits them both very well, because it gave them lots of lucrative state-sponsored jobs in industry and banking to take for themselves or distribute to their relatives and supporters."
Human and Economic Development under Musharraf:

Pakistan saw yet another confirmation of accelerated economic and human development under military rule in years 2000-2007. Pakistan's HDI grew an average rate of 2.7% per year under President Musharraf from 2000 to 2007, and then its pace slowed to 0.7% per year in 2008 to 2012 under elected politicians, according to the 2013 Human Development Report titled “The Rise of the South: Human Progress in a Diverse World”.

Source: Human Development Report 2013-Pakistan



 At 0.515, Pakistan's HDI is lower than the average HDI value of 0.558 for South Asia which is the second lowest among the various regions of the world tracked by UNDP. Between 2000 and 2012, the region registered annual growth of 1.43% in HDI value, which is the highest of the regions. Afghanistan achieved the fastest growth (3.9%), followed by Pakistan (1.7%) and India (1.5%), according to the United Nations Development Program.

Overall, Pakistan's human development score rose by 18.9% during Musharraf years and increased just 3.4% under elected leadership since 2008. The news on the human development front got even worse in the last three years, with HDI growth slowing down as low as 0.59% — a paltry average annual increase of under 0.20 per cent.

 Who's to blame for this dramatic slowdown in the nation's human development?  Who gave it a low priority? Zardari? Peoples' Party? Sharif brothers? PML (N)? PML (Q)? Awami National Party? Muttahida Qaumi Movement?  The answer is: All of them. They were all part of the government. In fact, the biggest share of the blame must be assigned to PML (N).



Sharif brothers weren't part of the ruling coalition at the center. So why should the PML (N) share the blame for falling growth in the nation's HDI? They must accept a large part of the blame because education and health, the biggest contributors to human development, are both provincial subjects and PML(N) was responsible for education and health care of more than half of Pakistan's population.

Pakistan R&D as Percentage of GDP Source: World Bank


Going further back to the  decade of 1990s when the civilian leadership of the country alternated between PML (N) and PPP,  the increase in Pakistan's HDI was 9.3% from 1990 to 2000, less than half of the HDI gain of 18.9% on Musharraf's watch from 2000 to 2007.



Acceleration of HDI growth during Musharraf years was not an accident.  Not only did Musharraf's policies accelerate economic growth, helped create 13 million new jobs, cut poverty in half and halved the country's total debt burden in the period from 2000 to 2007, his government also ensured significant investment and focus on education and health care. In 2011, a Pakistani government commission on education found that public funding for education has been cut from 2.5% of GDP in 2007 to just 1.5% - less than the annual subsidy given to the various PSUs including Pakistan Steel and PIA, both of which  continue to sustain huge losses due to patronage-based hiring.

Pakistan's High-Tech Exports Tripled as % of Manufactured Exports. Source: World Bank
Political and Performance Legitimacy:

The issue of rulers' legitimacy often raised in Pakistan is not as black and white as it appears.  Polls showed that military rulers like Gen Pervez Musharraf of Pakistan made up with performance legitimacy for lack of political legitimacy. On the other hand, civilian leaders who ascended to power did demonstrate political legitimacy but they have consistently lacked performance legitimacy. Similarly, the terms "democracy" and "dictatorship" are often vague in Pakistan's context. Pakistani "dictators" were much more "democratic" than civilian politicians in deregulating mass media and allowing lots of political debate which was absent before Musharraf's coup in 1999.

Source: Pew Surveys in Pakistan

Benazir Bhutto Created Taliban:

Many Pakistanis hold the military responsible for creating the Taliban who are now responsible for daily carnage in Pakistan. Few Pakistanis know that the Taliban movement was midwifed by Benazir Bhutto and her right-hand man and interior minister Naseerullah Babar during her term in office in 1993-1996. Benazir is often referred to as the Mother of the Taliban because of her role in giving birth to the Taliban movement. Once born and nurtured by Benazir and Babar, the Taliban quickly became a force to be reckoned with. The Taliban under Mulla Omar's leadership defeated the Afghan Mujahedeen who had fought against the Soviets and quickly took control of much of Afghanistan in just a few years. The Taliban became so confident that they resisted Pakistan's pressure and refused to agree to the Durand Line as international Pak-Afghan border when they were in power in Kabul in 1990s.

Summary: 

Pakistan saw rapid social and economic development under military regimes in 1960s, 1980s and 2000s. Each time the torch passed to a civilian government, both the economy and social sectors suffered a significant slowdown.  If Pakistan had 30 years of continuous military rule with sustained  growth without several lost decades, it would have been an economy several times larger than it is today.



Had Pakistan's development continued on the 1960s trajectory, it is quite conceivable that Pakistan would be a prosperous democracy like the Asian Tigers today.

Here's a recent discussion on democracy in Pakistan:


Pakistan PM Invites Army Intervention; Can Army Chief Save Nawaz Sharif Govt? from WBT TV on Vimeo.

Related Links:

Haq's Musings

India Tops World Slavery Charts

Asian Tigers Brought Prosperity; Democracy Followed

Challenges of Indian Democracy

Pakistan's Economic History

Comparing Bangladesh with Pakistan

Economic and Human Development in Musharraf Years

India's Share of World;s Poor Up from 22% to 33%

Wealth Inequality in India and Pakistan

Musharraf Era Higher Education Reforms in Pakistan