Friday, September 07, 2012

What is happening in Pakistan? - 8


This crisis is existential crisis of Central Punjab. If Central Punjab does not manage to tackle these changing realities facing it, it will be one of the worst disasters in human history. With around 70 million people possibly on the verge of economic collapse, water shortage and possibly famine, the consequences are not hard to predict.
Unfortunately, for now, no one realizes the root cause of Punjab’s (and thus Pakistan’s problems).  Punjabi leadership is blaming all the wrong entities for its woes and is devising all the wrong solutions while being unaware of what has struck them. This lack of clue for what has struck is a strong reason behind blaming all for our woes.
If Punjabis think the colonization of “loose area” resources leading to subsidized energy and raw materials can continue, they are mistaken. Punjab is surrounded by resource rich entities in this country. And their resources will very soon draw other regional and international players, in case, a resistance movement to Punjabi-dominated states colonization drive emerges. These international and regional players, at any given time, will offer those regions a better deal than Punjabi colonization. Well we have nukes. But then we will not be fighting with Iranians, Indians, Afghans, Emiratis, or for that matter Americans, Chinese or Russians. If it comes to showdown we will be fighting Sindhis, Balochis, Pashtuns, Saraikis, Baltis, Wakhis with players at their back and using nukes is not an option there.
This reality makes Punjabis a minority in the new emerging power structure of Pakistan, and to maximize their power, they will need to cut deals with other parts of the countries. One institution that realizes this reality is Army (though it still has to do a lot to cut its size and its business enterprise to be fully in sync with new realities). In these emerging realities, a wise businessman will be better of making other regions offers they cannot refuse.
Also, revoking Indus-basin will not solve the problem either. First, Pakistan does not have enough muscle to force India out of Indus-basin. Even if, hypothetically, it does, it will make Indian north (from Punjab to Bihar) facing same energy and water crisis make more vulnerable to ultimate disaster. This potential disaster across border shall be another cause of concern for Pakistani state for it might lead to massive migration pressure on our Eastern border, just as collapse of Punjab (if we fail) will lead to on India’s Western border.
So what is the way forward? Pakistani economy needs a combination of shock-therapy and compassion. Devolution, political and fiscal, to the provinces and districts is the only deal which can keep external powers away from our resources. State shall withdraw all subsidies and protections from businesses and let non-competitive industries (like automobiles) die, so that the resources could be diverted to industries/businesses that can survive paying full energy price and price of raw materials. This must be coupled with targeted subsidies for vulnerable to tame the social impact.
And we need to cut the size of the government significantly in all areas except health, education, and law and order. To tackle the menace of mafias and violence, we need to expand the writ of the state, and that expansion of writ shall quickly be followed by establishing a strong localized governance structure. 
Punjab has to play a vital role if the country has to survive. Punjabis are hardworking and enterprising. They have been held hostage by elite which in their name is exploiting the resources of Pakistani state. It has turned the enterprising, hardworking Punjab into rent-eater, providing Punjabis with delirium of worthless subsidize. As has happened in every economy in the world with enterprising communities, after slight pain, ordinary Punjabi too will thrive in the new economic landscape. Pakistan needs to be ridden of crony capitalism for its people to harness their full potential.
More so, Punjab needs to act for its own survival. It needs to focus on sources of electricity it can afford (for now I can think of Solar and Nuclear). It needs to put resources into research on solar energy and low-loss transmission of electricity. It needs to modernize the grid. It needs to focus on low-energy designs of machinery/houses. It needs to focus on low-water crops/irrigation methods. Punjab needs to be at the fore of energy revolution that is taking place in the world. And it needs to do so for survival. Enterprising Punjab needs to innovate, innovate, innovate. And for this it needs to rise against bureaucratic permit raj and controlled economy. It is in Punjab's interest to ask for opening up of economy. Punjab, in the long run, will benefit if the economy is deregulated and subsidies and permits are removed. Only such environment will allow it to reap the benefits of its hard work and enterprise, the only, yet valuable, sell-able Punjab has in emerging Pakistan and world. 
I am a Punjabi and I am worried. If Punjab fails, the displacement of 70 million people because of hunger, water shortage etc will make many a states collapse. It will impact not only Punjab but adjoining provinces and states. But my hope stems from the enterprising ordinary Punjabi and from the fact that the prospects of this disaster will unite us. It will make Punjabis have a just bargain with other stakeholders in Pakistan. And it will make other stakeholders internal and external to accept such just bargain.
For now, under the hegemonic leadership and state machinery, Punjab is bent on old ways. These ways will not succeed. Soon, Punjab has to awake to the reality and flow like water, finding path along the way. This will make Punjab flow and this will make Pakistan flow. It is time to reclaim our Punjab, it is time to start the fight for survival. Failure is not an option!

What is happening in Pakistan? - 7


That said, the loud chorus of chants of religion and nationalism could not change the course of time. Just as the logical conclusion of independence had to be industrialization of Punjab and rise of a Punjabi business class, similarly the independence and industrialization ultimately had to lead to awakening of loose areas and their demand for control of their resources.
Wise men running the show would have realized where things were headed. The state, above all, should have focused on a more equitable resource distribution through taxation, upgrading of loose areas, and targeted subsidies to the underprivileged. On the contrary, Punjabi business class dominated state subsidized non-competitive industries, kept increasing the size of federal government, and tried diverting natural resources in favor of those same business classes at the expense of locals. Feudalism is long dead, it is the crony capitalism that has ailed Pakistan and so we reach the juncture where the strain of changing time is on us the hardest.
The strain is particularly hard because Central Punjab in the process has evolved into a dense population belt extending till Bihar which faces challenges of water-supply and energy. When Pakistan came into being, in our region, the biggest energy source people were striving for was food and Punjab, being the bread-basket of the region, had plenty of it. However, since then, with rapid industrialization and new global economic realities, food is not the only energy need men have. There, in fact, is a more critical energy needed and that is the energy that runs machines. Punjab is the only region in Pakistan that does not have indigenous energy sources (except solar which for now is not commercially feasible). It neither has fossil fuels nor hydal (though smart planning to exploit gradients at the time of Indus-basin would have helped a bit in this regard). Since independence, State of Pakistan has subsidized the local and imported energy sources to facilitate businesses (mostly Punjabi and of Karachi). With time, as the people of areas with energy sources are becoming more vocal about control over their resources and industrialization and modernity is spreading to more and more “loose areas”, the subsidies are becoming hard to sustain. More so, cost of subsidy on imported energy is killing the national exchequers and thus the whole model has become unsustainable. The power crisis we are facing is a structural issue and can only be fixed if people are made to pay full price of energy. But this will be a huge strain on the biggest consumer groups of energy (Karachi and Central Punjab). Karachi has two advantages going its way. First, it is in Sindh (the largest energy reservoir of Pakistan) and secondly the business there is already more competitive and, based on my personal feeling, has more elasticity to adapt to revised energy cost structure. In Punjab, however, shifting the economy to real energy costs will be a very painful process.
If energy woes were not enough, Punjab is also on the brink of an intense water crisis. The drying of five-river channel is lowering water tables. With more irrigation activity on Indus Channel; Punjab, now, has competing claims to the only water source of Pakistan. If this was not enough, the urbanization will soon cause competing claims on available water sources from agricultural and industrial/commercial sectors.

What is happening in Pakistan? - 6


As a result of industrialization in adjoining areas and migration to Middle East and Europe, the loose areas came in contact with modernity, initially weak and then strong voices of control over regional resources started emerging. In response, the slogans of nationalism and federalism were used to strengthen centralized control over the resources. These chants not only suited the dominant Punjabi/Karachi business community thriving on loose area resources and migrant communities in search of space in Pakistan but also suited the military and civil bureaucracy, and thus emerged the genesis of Pakistan’s great divide. This all has shaped up the reality of Pakistan and narrative in which we have been living for past few decades.
In the midst of emerging voices for control of resources from loose areas, benefactors of crony capitalist system started patronizing voices of “nationalism” and “Islamism” to continue on the route of a centralized system. Here lies support of Martial Laws in Punjab’s Urban Centers and Karachi (particularly business community).  Just when the dominance of Central Punjab in the power structure of Pakistan was governed by economic factors beyond anyone’s control, these crony capitalist mistook it for their brilliance and maneuvering. And those, at the helm of patriotism and Islamism, started attributing any achievements that Punjabi business class had because of end of colonization and their economic superiority vs. the rest to Islamism and nationalism. 
Unfortunately, when religion and patriotism is used for hegemonic designs, the consequences do not end there. Things ultimately lead to erosion of state and decay of society. The extremist and militant tendencies take root and rational analysis of issues and their practical solutions become the victim. From Europe to China, every human society has been on this path at some point in their evolution to industrial revolution and those who have sorted it out have reaped the rewards of modernity. What made this worse for us was the fact that the rise of Islamism coincided with Iranian revolution and a counter extremist assault by vulnerable Arab regimes. If that was not enough, Afghan Jihad provided the perfect backdrop for militancy and violent Islam. The crisis of terrorism at the root is crisis of establishment of writ of state.

What is happening in Pakistan? - 5


Here the question arises whether it was intentional on part of Punjab to be the hegemone? Looking at the evidence, it seems Punjab had no intention to be the hegemonic but circumstances led a way where Punjabi aristocracy found itself in a place where it could wield influence to control economic/political policy and resources through a centralized system of government.
To be fair to Punjabis, Punjabis never wanted Pakistan. They were the most well-to-do ethnicity in British India, growing food and paid handsomely in real-wealth terms. More so, they had access to the most lucrative of Raj’s jobs, the military ones. It was this prosperity that made them among the best local allies of British. Till partition, Punjabis were not as enthusiastic about Pakistan and Muslim League as Muslims from other areas of subcontinent including Bengalis and Sindhis were. When partition became inevitable, it was only then that they switched fully to the idea of Pakistan.
What followed was even more nightmarish. Punjab was divided and the transfer of refugee populations between Muslim-dominated Pakistan and Hindu-dominated India took anywhere between half a million to million lives. It could never be worse for Punjabis. The fear of being uprooted and losing their lands and livelihood had made Punjabis compromise with invaders for centuries. Thus the concept that their livelihoods will survive any eventuality was as strong in Punjabi mindset as was the concept of Middle Kingdom in Chinese mindset at the cusp of 20th century.
With partition, on one hand Punjabis' sense of stability and security was challenged. On the other, having most fertile land and most amount of real wealth, in a newly independent State offered them the opportunity to prosper through industrialization along with the farms they owned and operated.
Also, since Punjabi migrants and Karachi migrants were a dominant part in the earlier establishment of Pakistan, for their own legitimacy, they stressed on the need for having Islam as the reason d’être of Pakistan. This was the only way they could find space for themselves in a land that was traditionally inhibited by West Punjabis, Saraikis, Sindhis, Balochs, Pashtuns, Barahwis, Potoharis, and other natives. One will not be surprised to find that the most of leaders of Anti-Ahmadi riots and other Islamization drives were migrant Hindi-belt/Punjabi leaders.

What is happening in Pakistan? - 4


The reason Punjabis gradually rose to dominance in Pakistan’s power structure had to do with the fact that Punjabis had the most real wealth among all entities in Pakistan. In Raj, Punjabis produced stuff which was least controlled by colonizers and was consumed locally rather than being sent to British manufacturers. What they produced was sold in local market and so they were likely to get the best return for the produce, thus accumulating wealth in the form of assets and savings. More importantly, land distribution among Punjabis was more equal which enabled most to share the reward on the produce. This enabled them to be the segment of population with the most real wealth at the time of partition. This real wealth enabled them to catch on commercialization bandwagon as they saw opportunities appearing in post-Raj Pakistan. Also, this combination of wealth and numbers, and the fact that the state dominated economic opportunity in Pakistan, made them focus on dominating the civil services in Pakistan. Thus began their rise in bureaucracy and judiciary. More so, since Punjab was the bread basket in early days of Pakistan in an agrarian economy and then became the industrial hub, it was in interest of Central government to divert resource to Punjab. So as Punjabis industrialized; Pakistani establishment which initially comprised Urdu Speaking bureaucracy, Punjabi Army, Gujrati/Marwadi business community, and Punjabi Agriculturists, started becoming more and more Punjabi dominated.
Since most rapid of industrialization and urbanization was taking place in Punjab and Karachi, most of the resources at the disposal of state were diverted to these areas. With Punjab having the bulk of urbanization, it got the most of resources.
One instance of diversion of resources was Indus Basin treaty. Pakistan realized soon enough that the water flowing from India cannot be reclaimed. So it agreed to a compromise where the world was asked to help Pakistan divert the water from Indus and tributaries (Kabul, Swat, Gilgit) to traditional five rivers. Plan made perfect sense at that time because Five-river basin was the backbone of Pakistani economy, still agrarian in late 50s, and also because there was little or no cultivation across Indus’ channel.  
Same happened with other resources including natural gas and other natural resources. Punjab thriving on wealth generated from agricultural resources could move quicker on the ladder of urbanization and industrialization than the rest. Federal Govt. that was centralized saw it as a quick fix. The process led to economic advantage further shifting in Punjab’s favor.

What is happening in Pakistan? - 3


However the biggest factor that enabled the transformation mentioned above was economic and had started shaping up right after the partition. The economy in Raj comprised agriculture, resource extraction, merchandise in settled areas, and govt. service. Govt. Service and Merchandise, the jewels were reserved for denizens of settled areas by the virtue of system design. And any outsider jumping in was an exception not the rule. And these exceptions too, mostly emerged from children of feudal, nawabs, or government servants working in loose areas. One instance of this was sports. Entire cricket team of Pakistan came from three cities of Karachi, Lahore, and Rawalpindi many decades into independence, and used to have most of captains from first Central Model and then Aitchison College.
With Pakistan now in control of her own resources, the privileged classes started creating a new economy. This invariably led to utilizing and using of the resources of loose areas (both agricultural and mineral). But there was one problem. Earlier the resources were controlled by policies of Raj (colonial govt control) and were shipped to factories in Manchester and Brimingham, now the opportunities could only be created in Lyalpur and Karachi and Lahore. More so, it was the “loose area” resources that were needed to run these factories. On one hand this industrialization and trading required workers from loose areas while on the other, this allowed people of loose areas to see the real worth of their assets.
The industrialization and commercialization of Pakistani economy was initiated by Gujrati and Marwadi communities of Karachi who were dominant in merchandise during Raj. While the white-collar consumer segment, still relying mostly on government jobs, mostly comprised migrants classes of urban areas of old Awadh and Haiderabad urban centers.
The question, why Punjabis ended up dominating Pakistan, has never been answered. A simplistic vision attributes it to dominance in Armed Forces. Problem with this view is that in Army north Punjabis were dominant while it is central Punjab that wields more influence in Pakistan. Another explanation attributes influence to population size but then Bengalis had more numbers than anyone. A combo of dominance in Army and population is another explanation but this too fails to explain why Punjabis were not the most dominant players in Pakistan till late 50s, early 60s. In early decade of Pakistan, it was a combo of UP bureaucracy and Gujrati/Marwari businessmen that yielded comparable, probably even more influence than Punjabis. So what made Punjabis dominate?

What is happening in Pakistan? - 2


More so, the concept of state having modern (industrial revolution onwards) laws, and commerce and constitutional framework was a concept that was imported from abroad. It was Brits who introduced India, then living in pre-modern social/legal code, to the concept of modern state. From Eastern Europe to Pacific to Turkey, one thing is clear that this framework is essential if a society wants to develop in post-industrialization era.
However, for reasons of their own convenience, British did not extend the concept of modern state to entire India. They introduced the modern state framework in large cities and across key trade/defense routes but left the rest of India under the ambit of feudal/princely framework, having loose control through loyalties of feudal lords and local nawabs. This created two parallel societies living side by side, one living in modern world and the other in pre-modern world.
Since inception, India tried to expand the writ to earlier loose-framework zones. It has not succeeded in reaching length and breadth of India for a number of reasons, most of which are beyond the scope of our discussion.
In Pakistan, the elite, mostly dominated by migrants (Hindi belt) and Punjabis (Central Punjabis and Punjabi migrants), decided to continue with our variation of one country, two systems. This system allowed trader communities, big industrialists, feduals, civil and armed government servants, and urban elite to live in a world that was almost at par with modernity while the rest of Pakistan was managed as a remote fiefdom through a loose feudal/bureaucratic system. The areas farther from the urban centers (like FATA, Balochistan, Interior Sindh, South Punjab, South NWFP, most of East Pakistan) were the most loosely governed areas in this system.
Then came 60s. At the time, when Asia was ripe with talk of red revolution, politically mature Bengalis were running out of patience. In the bastion of the order, West Pakistan, Zulfikar Ali Bhutto took the politics to small towns and villages and to the masses. Not only that, but rise of Middle East, and economic opportunities for working classes in Europe and Middle East, brought to villages and towns of Pakistan, a new found wealth. The firewall that was created between order and chaos by British started crumbling. Modernity had knocked at the door of a society that was living in 17th century sub-continental system.

What is happening in Pakistan? - 1


Sometimes, I make predictions and they have, occasionally, been proven right. Some around me attribute it to the company of my friends. I do not deny having the privilege of being in an intelligent and influential company of friends but I think some correct calls are both the cause and the effect of such company.
I think to help some understand why I say what I say, it will be a good idea to share my views on what is happening in Pakistan. Because once one understands the context, it becomes a lot easier to see how things are and where they are headed. This piece is an exercise in explaining how I see. While analyzing issues, I have tried to rely on unbiased judgment. I think my beliefs emerge from such analysis and not the other way round. Another thing important to note is that things are constantly in a flux, and so no ism, no political theory, in its totality can be relevant for a longer period of time. Times change and with them the challenges and so should the solutions. Lastly, this is my understanding of the issues and I will invite opinions/ comments on it to help me refine my view but for now I will narrate things the way I see them.
The fundamental crisis in Pakistan is the crisis of bringing to modernity a society and creating the concept of a state that has not historically existed. Just when transformation to post-industrial revolution world is what every part of the world has been through, what makes it more complex for places like Pakistan is the fact that Pakistan as a state and coherent society is very young.
Probably in every single respect, India faced the same challenges as Pakistan did. Like Pakistan, India too, though culturally and geographically interlinked, was never a state in its present boundaries. On three occasion when the rulers tried to create a union of India in the past (Asoka, Aurangzeb, and British), it has been viewed by others in Indian subcontinent as an imperial design and has hardly lasted more than a century or so. This has built defiance to centralized authority in Sub Continental DNA. This, also, has never allowed the sense of state and individual are the same to develop here.

Tuesday, August 07, 2012

What is happening in Pakistan?


Sometimes, I make predictions and they have, occasionally, been proven right. Some around me attribute it to the company of my friends. I do not deny having the privilege of being in an intelligent and influential company of friends but I think some correct calls are both the cause and the effect of such company.
I think to help some understand why I say what I say, it will be a good idea to share my views on what is happening in Pakistan. Because once one understands the context, it becomes a lot easier to see how things are and where they are headed. This piece is an exercise in explaining how I see. While analyzing issues, I have tried to rely on unbiased judgment. I think my beliefs emerge from such analysis and not the other way round. Another thing important to note is that things are constantly in a flux, and so no ism, no political theory, in its totality can be relevant for a longer period of time. Times change and with them the challenges and so should the solutions. Lastly, this is my understanding of the issues and I will invite opinions/ comments on it to help me refine my view but for now I will narrate things the way I see them.
The fundamental crisis in Pakistan is the crisis of bringing to modernity a society and creating the concept of a state that has not historically existed. Just when transformation to post-industrial revolution world is what every part of the world has been through, what makes it more complex for places like Pakistan is the fact that Pakistan as a state and coherent society is very young.
Probably in every single respect, India faced the same challenges as Pakistan did. Like Pakistan, India too, though culturally and geographically interlinked, was never a state in its present boundaries. On three occasion when the rulers tried to create a union of India in the past (Asoka, Aurangzeb, and British), it has been viewed by others in Indian subcontinent as an imperial design and has hardly lasted more than a century or so. This has built defiance to centralized authority in Sub Continental DNA. This, also, has never allowed the sense of state and individual are the same to develop here.
More so, the concept of state having modern (industrial revolution onwards) laws, and commerce and constitutional framework was a concept that was imported from abroad. It was Brits who introduced India, then living in pre-modern social/legal code, to the concept of modern state. From Eastern Europe to Pacific to Turkey, one thing is clear that this framework is essential if a society wants to develop in post-industrialization era.
However, for reasons of their own convenience, British did not extend the concept of modern state to entire India. They introduced the modern state framework in large cities and across key trade/defense routes but left the rest of India under the ambit of feudal/princely framework, having loose control through loyalties of feudal lords and local nawabs. This created two parallel societies living side by side, one living in modern world and the other in pre-modern world.
Since inception, India tried to expand the writ to earlier loose-framework zones. It has not succeeded in reaching length and breadth of India for a number of reasons, most of which are beyond the scope of our discussion.
In Pakistan, the elite, mostly dominated by migrants (Hindi belt) and Punjabis (Central Punjabis and Punjabi migrants), decided to continue with our variation of one country, two systems. This system allowed trader communities, big industrialists, feduals, civil and armed government servants, and urban elite to live in a world that was almost at par with modernity while the rest of Pakistan was managed as a remote fiefdom through a loose feudal/bureaucratic system. The areas farther from the urban centers (like FATA, Balochistan, Interior Sindh, South Punjab, South NWFP, most of East Pakistan) were the most loosely governed areas in this system.
Then came 60s. At the time, when Asia was ripe with talk of red revolution, politically mature Bengalis were running out of patience. In the bastion of the order, West Pakistan, Zulfikar Ali Bhutto took the politics to small towns and villages and to the masses. Not only that, but rise of Middle East, and economic opportunities for working classes in Europe and Middle East, brought to villages and towns of Pakistan, a new found wealth. The firewall that was created between order and chaos by British started crumbling. Modernity had knocked at the door of a society that was living in 17th century sub-continental system.
However the biggest factor that enabled the transformation mentioned above was economic and had started shaping up right after the partition. The economy in Raj comprised agriculture, resource extraction, merchandise in settled areas, and govt. service. Govt. Service and Merchandise, the jewels were reserved for denizens of settled areas by the virtue of system design. And any outsider jumping in was an exception not the rule. And these exceptions too, mostly emerged from children of feudal, nawabs, or government servants working in loose areas. One instance of this was sports. Entire cricket team of Pakistan came from three cities of Karachi, Lahore, and Rawalpindi many decades into independence, and used to have most of captains from first Central Model and then Aitchison College.
With Pakistan now in control of her own resources, the privileged classes started creating a new economy. This invariably led to utilizing and using of the resources of loose areas (both agricultural and mineral). But there was one problem. Earlier the resources were controlled by policies of Raj (colonial govt control) and were shipped to factories in Manchester and Brimingham, now the opportunities could only be created in Lyalpur and Karachi and Lahore. More so, it was the “loose area” resources that were needed to run these factories. On one hand this industrialization and trading required workers from loose areas while on the other, this allowed people of loose areas to see the real worth of their assets.
The industrialization and commercialization of Pakistani economy was initiated by Gujrati and Marwadi communities of Karachi who were dominant in merchandise during Raj. While the white-collar consumer segment, still relying mostly on government jobs, mostly comprised migrants classes of urban areas of old Awadh and Haiderabad urban centers.
The question, why Punjabis ended up dominating Pakistan, has never been answered. A simplistic vision attributes it to dominance in Armed Forces. Problem with this view is that in Army north Punjabis were dominant while it is central Punjab that wields more influence in Pakistan. Another explanation attributes influence to population size but then Bengalis had more numbers than anyone. A combo of dominance in Army and population is another explanation but this too fails to explain why Punjabis were not the most dominant players in Pakistan till late 50s, early 60s. In early decade of Pakistan, it was a combo of UP bureaucracy and Gujrati/Marwari businessmen that yielded comparable, probably even more influence than Punjabis. So what made Punjabis dominate?
The reason Punjabis gradually rose to dominance in Pakistan’s power structure had to do with the fact that Punjabis had the most real wealth among all entities in Pakistan. In Raj, Punjabis produced stuff which was least controlled by colonizers and was consumed locally rather than being sent to British manufacturers. What they produced was sold in local market and so they were likely to get the best return for the produce, thus accumulating wealth in the form of assets and savings. More importantly, land distribution among Punjabis was more equal which enabled most to share the reward on the produce. This enabled them to be the segment of population with the most real wealth at the time of partition. This real wealth enabled them to catch on commercialization bandwagon as they saw opportunities appearing in post-Raj Pakistan. Also, this combination of wealth and numbers, and the fact that the state dominated economic opportunity in Pakistan, made them focus on dominating the civil services in Pakistan. Thus began their rise in bureaucracy and judiciary. More so, since Punjab was the bread basket in early days of Pakistan in an agrarian economy and then became the industrial hub, it was in interest of Central government to divert resource to Punjab. So as Punjabis industrialized; Pakistani establishment which initially comprised Urdu Speaking bureaucracy, Punjabi Army, Gujrati/Marwadi business community, and Punjabi Agriculturists, started becoming more and more Punjabi dominated.
Since most rapid of industrialization and urbanization was taking place in Punjab and Karachi, most of the resources at the disposal of state were diverted to these areas. With Punjab having the bulk of urbanization, it got the most of resources.
One instance of diversion of resources was Indus Basin treaty. Pakistan realized soon enough that the water flowing from India cannot be reclaimed. So it agreed to a compromise where the world was asked to help Pakistan divert the water from Indus and tributaries (Kabul, Swat, Gilgit) to traditional five rivers. Plan made perfect sense at that time because Five-river basin was the backbone of Pakistani economy, still agrarian in late 50s, and also because there was little or no cultivation across Indus’ channel.  
Same happened with other resources including natural gas and other natural resources. Punjab thriving on wealth generated from agricultural resources could move quicker on the ladder of urbanization and industrialization than the rest. Federal Govt. that was centralized saw it as a quick fix. The process led to economic advantage further shifting in Punjab’s favor.
Here the question arises whether it was intentional on part of Punjab to be the hegemone? Looking at the evidence, it seems Punjab had no intention to be the hegemonic but circumstances led a way where Punjabi aristocracy found itself in a place where it could wield influence to control economic/political policy and resources through a centralized system of government.
To be fair to Punjabis, Punjabis never wanted Pakistan. They were the most well-to-do ethnicity in British India, growing food and paid handsomely in real-wealth terms. More so, they had access to the most lucrative of Raj’s jobs, the military ones. It was this prosperity that made them among the best local allies of British. Till partition, Punjabis were not as enthusiastic about Pakistan and Muslim League as Muslims from other areas of subcontinent including Bengalis and Sindhis were. When partition became inevitable, it was only then that they switched fully to the idea of Pakistan.
What followed was even more nightmarish. Punjab was divided and the transfer of refugee populations between Muslim-dominated Pakistan and Hindu-dominated India took anywhere between half a million to million lives. It could never be worse for Punjabis. The fear of being uprooted and losing their lands and livelihood had made Punjabis compromise with invaders for centuries. Thus the concept that their livelihoods will survive any eventuality was as strong in Punjabi mindset as was the concept of Middle Kingdom in Chinese mindset at the cusp of 20th century.
With partition, on one hand Punjabis' sense of stability and security was challenged. On the other, having most fertile land and most amount of real wealth, in a newly independent State offered them the opportunity to prosper through industrialization along with the farms they owned and operated.
Also, since Punjabi migrants and Karachi migrants were a dominant part in the earlier establishment of Pakistan, for their own legitimacy, they stressed on the need for having Islam as the reason d’être of Pakistan. This was the only way they could find space for themselves in a land that was traditionally inhibited by West Punjabis, Saraikis, Sindhis, Balochs, Pashtuns, Barahwis, Potoharis, and other natives. One will not be surprised to find that the most of leaders of Anti-Ahmadi riots and other Islamization drives were migrant Hindi-belt/Punjabi leaders.
As a result of industrialization in adjoining areas and migration to Middle East and Europe, the loose areas came in contact with modernity, initially weak and then strong voices of control over regional resources started emerging. In response, the slogans of nationalism and federalism were used to strengthen centralized control over the resources. These chants not only suited the dominant Punjabi/Karachi business community thriving on loose area resources and migrant communities in search of space in Pakistan but also suited the military and civil bureaucracy, and thus emerged the genesis of Pakistan’s great divide. This all has shaped up the reality of Pakistan and narrative in which we have been living for past few decades.
In the midst of emerging voices for control of resources from loose areas, benefactors of crony capitalist system started patronizing voices of “nationalism” and “Islamism” to continue on the route of a centralized system. Here lies support of Martial Laws in Punjab’s Urban Centers and Karachi (particularly business community).  Just when the dominance of Central Punjab in the power structure of Pakistan was governed by economic factors beyond anyone’s control, these crony capitalist mistook it for their brilliance and maneuvering. And those, at the helm of patriotism and Islamism, started attributing any achievements that Punjabi business class had because of end of colonization and their economic superiority vs. the rest to Islamism and nationalism. 
Unfortunately, when religion and patriotism is used for hegemonic designs, the consequences do not end there. Things ultimately lead to erosion of state and decay of society. The extremist and militant tendencies take root and rational analysis of issues and their practical solutions become the victim. From Europe to China, every human society has been on this path at some point in their evolution to industrial revolution and those who have sorted it out have reaped the rewards of modernity. What made this worse for us was the fact that the rise of Islamism coincided with Iranian revolution and a counter extremist assault by vulnerable Arab regimes. If that was not enough, Afghan Jihad provided the perfect backdrop for militancy and violent Islam. The crisis of terrorism at the root is crisis of establishment of writ of state.
That said, the loud chorus of chants of religion and nationalism could not change the course of time. Just as the logical conclusion of independence had to be industrialization of Punjab and rise of a Punjabi business class, similarly the independence and industrialization ultimately had to lead to awakening of loose areas and their demand for control of their resources.
Wise men running the show would have realized where things were headed. The state, above all, should have focused on a more equitable resource distribution through taxation, upgrading of loose areas, and targeted subsidies to the underprivileged. On the contrary, Punjabi business class dominated state subsidized non-competitive industries, kept increasing the size of federal government, and tried diverting natural resources in favor of those same business classes at the expense of locals. Feudalism is long dead, it is the crony capitalism that has ailed Pakistan and so we reach the juncture where the strain of changing time is on us the hardest.
The strain is particularly hard because Central Punjab in the process has evolved into a dense population belt extending till Bihar which faces challenges of water-supply and energy. When Pakistan came into being, in our region, the biggest energy source people were striving for was food and Punjab, being the bread-basket of the region, had plenty of it. However, since then, with rapid industrialization and new global economic realities, food is not the only energy need men have. There, in fact, is a more critical energy needed and that is the energy that runs machines. Punjab is the only region in Pakistan that does not have indigenous energy sources (except solar which for now is not commercially feasible). It neither has fossil fuels nor hydal (though smart planning to exploit gradients at the time of Indus-basin would have helped a bit in this regard). Since independence, State of Pakistan has subsidized the local and imported energy sources to facilitate businesses (mostly Punjabi and of Karachi). With time, as the people of areas with energy sources are becoming more vocal about control over their resources and industrialization and modernity is spreading to more and more “loose areas”, the subsidies are becoming hard to sustain. More so, cost of subsidy on imported energy is killing the national exchequers and thus the whole model has become unsustainable. The power crisis we are facing is a structural issue and can only be fixed if people are made to pay full price of energy. But this will be a huge strain on the biggest consumer groups of energy (Karachi and Central Punjab). Karachi has two advantages going its way. First, it is in Sindh (the largest energy reservoir of Pakistan) and secondly the business there is already more competitive and, based on my personal feeling, has more elasticity to adapt to revised energy cost structure. In Punjab, however, shifting the economy to real energy costs will be a very painful process.
If energy woes were not enough, Punjab is also on the brink of an intense water crisis. The drying of five-river channel is lowering water tables. With more irrigation activity on Indus Channel; Punjab, now, has competing claims to the only water source of Pakistan. If this was not enough, the urbanization will soon cause competing claims on available water sources from agricultural and industrial/commercial sectors.
This crisis is existential crisis of Central Punjab. If Central Punjab does not manage to tackle these changing realities facing it, it will be one of the worst disasters in human history. With around 70 million people possibly on the verge of economic collapse, water shortage and possibly famine, the consequences are not hard to predict.
Unfortunately, for now, no one realizes the root cause of Punjab’s (and thus Pakistan’s problems).  Punjabi leadership is blaming all the wrong entities for its woes and is devising all the wrong solutions while being unaware of what has struck them. This lack of clue for what has struck is a strong reason behind blaming all for our woes.
If Punjabis think the colonization of “loose area” resources leading to subsidized energy and raw materials can continue, they are mistaken. Punjab is surrounded by resource rich entities in this country. And their resources will very soon draw other regional and international players, in case, a resistance movement to Punjabi-dominated states colonization drive emerges. These international and regional players, at any given time, will offer those regions a better deal than Punjabi colonization. Well we have nukes. But then we will not be fighting with Iranians, Indians, Afghans, Emiratis, or for that matter Americans, Chinese or Russians. If it comes to showdown we will be fighting Sindhis, Balochis, Pashtuns, Saraikis, Baltis, Wakhis with players at their back and using nukes is not an option there.
This reality makes Punjabis a minority in the new emerging power structure of Pakistan, and to maximize their power, they will need to cut deals with other parts of the countries. One institution that realizes this reality is Army (though it still has to do a lot to cut its size and its business enterprise to be fully in sync with new realities). In these emerging realities, a wise businessman will be better of making other regions offers they cannot refuse.
Also, revoking Indus-basin will not solve the problem either. First, Pakistan does not have enough muscle to force India out of Indus-basin. Even if, hypothetically, it does, it will make Indian north (from Punjab to Bihar) facing same energy and water crisis make more vulnerable to ultimate disaster. This potential disaster across border shall be another cause of concern for Pakistani state for it might lead to massive migration pressure on our Eastern border, just as collapse of Punjab (if we fail) will lead to on India’s Western border.
So what is the way forward? Pakistani economy needs a combination of shock-therapy and compassion. Devolution, political and fiscal, to the provinces and districts is the only deal which can keep external powers away from our resources. State shall withdraw all subsidies and protections from businesses and let non-competitive industries (like automobiles) die, so that the resources could be diverted to industries/businesses that can survive paying full energy price and price of raw materials. This must be coupled with targeted subsidies for vulnerable to tame the social impact.
And we need to cut the size of the government significantly in all areas except health, education, and law and order. To tackle the menace of mafias and violence, we need to expand the writ of the state, and that expansion of writ shall quickly be followed by establishing a strong localized governance structure. 
Punjab has to play a vital role if the country has to survive. Punjabis are hardworking and enterprising. They have been held hostage by elite which in their name is exploiting the resources of Pakistani state. It has turned the enterprising, hardworking Punjab into rent-eater, providing Punjabis with delirium of worthless subsidize. As has happened in every economy in the world with enterprising communities, after slight pain, ordinary Punjabi too will thrive in the new economic landscape. Pakistan needs to be ridden of crony capitalism for its people to harness their full potential.
More so, Punjab needs to act for its own survival. It needs to focus on sources of electricity it can afford (for now I can think of Solar and Nuclear). It needs to put resources into research on solar energy and low-loss transmission of electricity. It needs to modernize the grid. It needs to focus on low-energy designs of machinery/houses. It needs to focus on low-water crops/irrigation methods. Punjab needs to be at the fore of energy revolution that is taking place in the world. And it needs to do so for survival. Enterprising Punjab needs to innovate, innovate, innovate. And for this it needs to rise against bureaucratic permit raj and controlled economy. It is in Punjab's interest to ask for opening up of economy. Punjab, in the long run, will benefit if the economy is deregulated and subsidies and permits are removed. Only such environment will allow it to reap the benefits of its hard work and enterprise, the only, yet valuable, sell-able Punjab has in emerging Pakistan and world. 
I am a Punjabi and I am worried. If Punjab fails, the displacement of 70 million people because of hunger, water shortage etc will make many a states collapse. It will impact not only Punjab but adjoining provinces and states. But my hope stems from the enterprising ordinary Punjabi and from the fact that the prospects of this disaster will unite us. It will make Punjabis have a just bargain with other stakeholders in Pakistan. And it will make other stakeholders internal and external to accept such just bargain.
For now, under the hegemonic leadership and state machinery, Punjab is bent on old ways. These ways will not succeed. Soon, Punjab has to awake to the reality and flow like water, finding path along the way. This will make Punjab flow and this will make Pakistan flow. It is time to reclaim our Punjab, it is time to start the fight for survival. Failure is not an option!

Saturday, May 26, 2012

European Crisis - End of Colonial Economic Legacy

Thursday, December 08, 2011

Thank you, President Zardari!

Thank you Sir for leading Pakistan on the way to constitutional reform which has seen it get rid of legacy of decades of autocracy. Thank you for presiding over an economic restructuring that leads to more even distribution of resources between urban and rural and between north and south. Thank you for steering Pakistan though its worst economic years and worst energy shortages with minimum of damage. And Thank you for standing up against the terrorists while risking your own life.
Thank you for your initiatives on women's rights. Thank you for your voice for minorities and thank you for being there for all liberal and freedom causes. Thank you for the vision and stamina to stick to the politics of reconciliation and thank you for demonstrating that a successful democracy is about inclusion and cooperation above anything else.
Thank you for defending Pakistan against the terrorists and thank you for protecting its interest on international forums. Thank you for your efforts to restore the civil-military balance. Thank you for defending our Armed Forces when their image was at an all time low. And yes, thank you for saving institutions from being destroyed by their own madness.
Thank you for bearing with your opponents with patience and demonstrating the significance of tolerance. Thank you for demonstrating freedom of press amid smear campaigns against your person. Thank you for your belief in liberties and freedom and thank you for spreading it.
And above all Thank you for holding together PPP and Pakistan when many thought they had buried them with the corpse of BB. Thank you Sir! Stay healthy for the struggle left is still longer than the road that stretches out ahead. Thank You!

Sunday, December 04, 2011

Prediction Time


After an eventful day, Prediction Time. No inside info. Based on my analysis.



  • Yousaf Raza Gillani will have the longest term of any Prime Minister in the history of Pakistan yet.
  • #SC will not be able to harm President or the system on account of #MemoGate or #NRO.
  • Army will feel compelled to protect the President in #MemoGate.
  • In next 6 months, civil-military imbalance will have significant changes.
  • In near future, there will be a party hostile to Chinese' trade surplus and influence in Pakistan.
  • In near future, if it ever comes to showdown between US and anyone, in final tally Pakistan will be in US Column.
  • Next Election is the last election in which #PMLN will contest with perception of a significant player.
  • #PTI wave will be the strongest in Central Punjab and Army Belt (Attock, Khoshab, Jhelum, Chakwal).
  • PPP-Sherpao will be the most significant player (significant may not be the largest) in #KP
  • Imran Khan (PTI) might not be the largest Right-wing party by no of seats yet he will remain central in new right-wing politics.
  • If Imran Khan manages to lure Arbab Rahim in #Sindh and Sherpao in #KP, #PTI will be the central right-wing national party in the system.
  • #Lahore will have #PTI as the single largest party with a 3-way split mandate.
  • Spending money on media (except for good paid ads) will be bad investment. Media has little influence over voters.
Nawaz Sharif will blame everything for his downfall when he himself is sole responsible. (It's not a prediction but an observation).
  • Peak of Anti-American sentiment in Pakistan will end starting early 2013.
  • There will be #Basant!
  • Imran Khan will have a good show in Karachi on Dec 25th.
  • Religious right & MQM's effort to replace ANP w/ PTI in Pashtun Karachi will fail.
  • Imran Khan has more potential as Urdu Speaking's leader than Pashtuns'.
  • Shah Mahmood Qureshi will lose his seat in #Multan but will win one from #Lahore.
  • #BilawalBhutto will not be a key player for #PPP in next election. His bid begins in 2017. (God protect him and his family!)
  • Politics of #Pakistan, in foreseeable future, will revolve around two Jawai(s) (Punjabi word). #Babay
In national interest and in interest of Peace and Stability, I withhold prediction on outcome of next general elections.

Saturday, November 12, 2011

Let Pakistan Move beyond Old Establishment Order

As the elections approach, the talk of establishment's meddling in political system is resonating again. Only today, two statements by two of the leading political leaders of the country hint at establishment's (read security establishment's) role in country's politics. Both Nawaz Sharif and Ch. Shujat Hussain today hinted at hidden hands' intervention in political space. This follows a series of acquisitions that security establishment or elements in it have been at the center of Imran Khan's rise and PTI's successive political activities. This all is not only unpleasant and unfortunate but also seems a waste of energy on part of those trying to engineer politics. What Pakistan needs is to move beyond the existing notion of establishment to create a more broad based, all inclusive establishment. The new establishment will comprise a civil-military compromise on key national security issues where Army will have a decisive say in military, combat-security, and military administration issues while Army's security considerations and civilians' considerations vis-a-vis economic and trade relations and other foreign policy issues will define the core of national security policy. The players in Pakistan's power politics, includng Army, will be damaged heavily if they do not succumb to this emerging reality.
On none the responsibility of establishment of the new order of civil-military relationship is more than on Army and PPP. For its part Army must realize that time to create and recreate artificial alternatives to popular leadership is over. If they fail to come to terms with this fact, for elements within Army, the failing of Imran Khan led alliance in the next general election to secure a sizable share of seats will make the reality clearer. In all likelihood, it will be 3rd or 4th largest bloc in the next elections. Also, past four years must have shed many of Army's fears of nation's leadership's vulnerabilities on national security. Let me take the liberty to say that the views of civilian and military leadership of the country have never been closer on the national security outlook. More importantly, in past four years, Pakistan has experienced the emergence of a mechanism where the Army's key concerns vis-a-vis security get addressed with civilian leadership taking the bulk of brunt of these decisions and gives valuable input on policy definition. For the first time, Army has made itself accountable to parliament with successive briefings on key national security issues. We have entered a phase where things are slowly but gradually moving in a direction where Army will act as an influential and powerful player in policy making under civilian rule, as happens in mature states. These developments, alone, should give Army the confidence to move beyond creating and recreating its political prodigies. This coupled with the fact that Army's ability to create a prodigy is significantly curtailed in today's time should keep it away from any such misadventures which potentially could damage its image and power significantly. And lastly, Army's last two creations in the political arena, Nawaz Sharif and religious extremists, are enough to nip any such thoughts on part of Army. In a time when almost all major political entities of the country are ready to work on national security issues in consultation with Army, misadventure of creating prodigies will be counter-productive and will damage Army's interest as an institution and Pakistan's interest as a state.
But it is not Army alone which needs to move beyond the old establishment order towards a newer one. Political parties also have an important role to play. In past, Army's meddling in politics and its drive and ability to marginalize political forces led to a mentality in political parties where they would portray themselves as victims of Army's assault. With curtailed ability of Army to meddle in politics and because of its efforts to distance itself (extent of this is arguable) from politics, now political class must also move beyond that victim mindset.
To its credit, PPP leadership has tried to move beyond but its core and cadre still has memories of Army rules in the country. It is the responsibility of leadership to make the workers and voters make this transition and train them to make the transition from party of opposition to party of power. With Pakistan's political landscape, PPP has to assume this role of party of power for long and it will be unfortunate if party's ranks and files are not ready for the new role.
As for the statements of two leaders, NS and Shujat, a journalist friend said that Shujat has no complaints with Army or ISI but his complaints were directed at ex-servicemen residing in West Ridge and other areas of Rawalpindi who are using their influence in bureaucracy, political class, media, and ranks of Army and ISI (and let me add extremists) to bolster Imran Khan and to an extent Nawaz Sharif.
As for Nawaz Sharif, he is one politician who needs to move the most to get in sync with today's Pakistan. He still is stuck in 90s and believes in the fallacies that he and his patrons created then. His core political aim seems vendetta against Pervez Musharraf and Army for the humiliation he faced. He must realize that the very fact that his party came to power in Punjab and the same Musharraf was forced to take oath from his ministers was a vendetta enough. It is time to move on and embrace the system. The times when the hidden hands would arrange for him mandates are gone and now he will have to find his ways within the system with the mandate and vote bank he has. If MQM can become powerful with its 25 seats, Mr. Sharif can do a lot more with his 50-100 seats. More so, unlike MQM, his numbers in present political setup allowed him to consolidate and expand gradually into forming a government in elections ahead. An opportunity he let pass because of his own follies and failure to read the situation.
As for PTI, well they are too new to contribute anything, but with time when the injections of their backers will fail to bring them into any decisive position in nation's power politics, they will realize that their politics will rely on working within the political system, cooperating with political parties. It will be either this or PTI's current urban Punjab popularity will fade like Tehrik-e-Istaklal's popularity of mid-60s.
At a time when Pakistan's civil and military leadership is moving together in carving a way ahead for nation in Eurasia, South Asia, and global economic and political order, and through a turbulent Middle East, it is imperative that they also consolidate this new era of civil-military partnership to establish a new establishment order. Not everything is settled between the civilians and military but the way ahead is through mutual consultation and moving with realization of power realities. Many things will correct in civil-military relationship in the due course but in a way in which civilians' gain will not seem Army's humiliation but a joint effort for a better Pakistan. We have wasted so many energies in civil-military confrontation and the time is ripe to channelize energies for a harmonious and strong Pakistan. The new establishment order is not merely a hope but is the only way forward for Pakistan. 

Friday, October 28, 2011

Democracy Memoirs of Pakistan

1951: A young man from a prominent, knighted Sindhi feudal family marries an Iranian merchant's daughter. Young man fears backlash from his father and to ensure secrecy relies on two of his closest friends then (One for sure was Ilahi Bukhsh Sumro, other I think was cricket commentator and business executive Omar Kureshi). Begins the story of Bhuttos. Young man was Z. A. Bhutto, the woman became Nusrat Bhutto.
Mid-60s: Nusrat, compelled by traditions of the family, forces the daughter, Benazir, to wear veil on trip to family estate of Larkana. ZAB gets furious and categorically declares that his daughters will not wear veil. Coming from a family where his sisters were married to Quran, ZAB's most revolutionary act was to send his daughters to Harvard and Oxford.
Sept 1967: ZAB is arrested by Ayub regime and it seems that the movement gaining momentum will die leaderless. Appears a tonga on Mall Road carrying 3-4 women. One of them was Nusrat Bhutto. People recognize her and flock around her. The movement against Ayub is alive again and leads to his end and ultimately leads to 1970 elections.
July 5, 1977: Martial Law is imposed, Bhutto detained, family sent back to Karachi. Nusrat advises her three children studying abroad to attend their studies. Benazir and Nusrat are the only two left to deal with Zia's tyranny.
December 16, 1977: Bhutto women face the first, of many, assaults of tyrants. Attempt to mobilize people takes them to cricket match in Lahore. Crowd erupts with "Jiye Bhutto" slogans. Police starts baton-charge. A woman's voice roars: unhain kyun mar rahay hu mujhe maro (why are you hitting people, hit me). Police complies, hitting her head leading to blood spilling all over. An image that epitomizes Pakistan's struggle for democracy and fundamental rights.
April 4, 1979: ZAB is hanged in Rawalpindi Jail while Nusrat Bhutto and Benazir are in confinement a few miles away in Sihala. They are not allowed to attend the funeral rites.
February 1981: Nusrat Bhutto forgives political leaders who asked Zia to takeover and forms MRD with them. Whichever way you look at it, it was a game changer in Pakistani feudal-mindset politics. It is where reconciliation got introduced to Pakistani politics. And this, to me, is her biggest gift to Pakistani politics.
July 1985: Bhutto tragedy continues. Shahnawaz, the youngest son of Bhuttos, dies as a result of poison intake (many believe it was act of Zia regime). Only Benazir is allowed to accompany the body back to Pakistan.
December 2, 1988: Benazir Bhutto becomes Prime Minister of Pakistan after PPP wins November polls. Nusrat Bhutto become Senior Minister. She wins from a constituency in Chitral, a conservative bastion where women find it difficult even to vote.
Nov. 18, 1992: Nusrat Bhutto is baton charged again at Bhatti Chowk, Lahore. Wounded, she manages to break the cordon and leaves Lahore for Long March.
September 20, 1996: Bhutto tragedy continues. Murtaza Bhutto is killed by police. Iron lady can't take it any more. Health deteriorates and Alzheimer takes memory away. She is not in to take any more pain.
From Ayub to Zia and later, there is no single person who symbolizes Pakistan's struggle for democracy like Begum Bhutto (not even ZAB and BB). And for all her agony, she had the resolve to live till the fruits of her struggle are finally here. Iron lady's resolve did outlast of those she fought against. The state mourning by elected governments all across the country, was a divine justice for her struggle.
For all the miseries and hardships, the lives like Nusrat Bhutto are not to be mourned but to be cherished and celebrated for their struggle, resolve and commitment. RIP Begum Sahiba! It has been an honor and pleasure having you with us.