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Rethinking CPEC and the role of China

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Abdul Razak Dawood, Pakistan Prime Minister Imran Khan’s Adviser on Commerce, Textile, Industry & Production and Investment told the Financial Times that the previous Pakistan Muslim League (Nawaz ) government while signing the CPEC (China Pakistan Economic Corridor) agreement with China did not safeguard Pakistan’s economic interests.

Dawood also made the point, that some of the CPEC projects could be put on hold for a year, and CPEC can be stretched up to five years. Said Dawood, “Perhaps we can stretch CPEC out over another five years or so.

Interestingly, during Chinese Foreign Minister Wang Yi’s  recent Pakistan visit, Pakistan’s Foreign Minister Shah Mehmood Qureshi assured the former, that Pakistan would accord high priority to CPEC — which was of immense economic and strategic importance for Pakistan. Qureshi also stated, that projects would be implemented at the earliest. Even the normally outspoken Pakistan Finance Minister, Asad Umar was cautious,  and categorically said that ‘We don’t intend to handle this process like Mahathir”. Imran Khan also met with Wang Yi, and a statement from the Pakistani side read as follows:

“The Prime Minister reiterated that the Government is committed to the implementation of the CPEC,” Wang Yi on his part emphasized on the fact, that CPEC was not responsible for Pakistan’s debts. He also stated, that Beijing was willing to re-negotiate a Free Trade Agreement which according to many in Pakistan, was heavily skewed in favour of China and has faced domestic opposition

During the course of a meeting between the Planning, Development and Reforms Commission of Pakistan and the National Development and Reforms Commission (NDRC) of China two interesting aspects were added to the existing agreement. The first, that third countries would be allowed to invest in the upcoming 9 Special Economic Zones (SEZ’s) of CPEC. The Chinese delegation during the meeting is supposed to have conveyed the point, that it was open to investment from countries which were friendly to both Pakistan and China to invest in the Economic Zones. Some of the potential countries discussed were; Turkey, Russia and Saudi Arabia.

Second, ‘social sector’ schemes and regional development schemes were added to the existing CPEC projects. Social sector schemes include drinking water, health, education and technical training. The inclusion of these areas, was done keeping in mind the priorities of the current government.

Is a significant re-think towards CPEC possible?

There is no doubt, that Islamabad’s dependence upon China would have increased as a consequence of its current economic situation and it’s deteriorating ties with Washington DC (days before Secretary of State, Mike Pompeo, landed in Islamabad, military aid to the tune of 300 Million USD was withdrawn. Yet, some re-think vis-à-vis CPEC can not be ruled out, because a number of Pakistani politicians have expressed discomfort with the lack of transparency regarding the project.

Transparency with regard to the CPEC project

When in opposition, Imran had himself spoken about the need for greater transparency and openness with regard to the project. Before the elections in July 2018, many analysts argued, that the Chinese would be far more comfortable with PPP and PML-N as opposed to Imran Khan.

PTI’s protests against the previous PML-N government, were also viewed with skepticism by the Chinese who believed, that these protests would be detrimental to the progress of the project. Khan during his meeting, in 2016, with the Chinese Envoy to Pakistan tried to address the apprehensions of the Chinese by saying he was all for the project.

One of the objections of Pakistani politicians from Non-Punjabi provinces (across parties), as well as analysts, was that the project was Punjab Centric. In November 2017, members from the Senate including the then ruling party – PML-N – had spoken about the lack of transparency of CPEC, and had also alluded to the fact that China was benefitting more.

Apart from domestic politics, the firm stance taken by Malaysian PM, Mahathir Mohammad with regard to some Chinese projects (the Malaysian PM scrapped projects worth 20 Billion USD) is also important and has forced a rethink in Pakistan . An editorial in Dawn titled, ‘Rearranging CPEC’, also cited Mahathir’s stance against Chinese projects. While it is unlikely, that Pakistan may follow suit as was stated by the Finance Minister, Asad Umar as well as Abdul Razak Dawood himself (Dawood in fact had to clarify, that his remarks with regard to CPEC had been quoted out of context)

There will be groups in Pakistan (especially members of the business community) who could nudge the current government towards tweaking the CPEC agreement further as well as resetting the Pakistan-China economic relationship to some extent. China itself can not afford to ignore Mahathir’s stance, as well as his statement about the rise of a ‘new colonialism’. The address of Chinese President Xi Jinping at the Africa-China Summit, as well as Wang Yi’s statements during his Pakistan visit, are clear indicators that China is not taking Mahathir’s statements lightly. Whether Imran Khan can be a Mahathir off course is a different issue.

Lack of options and GHQ

While there may be certain personalities within the current government who are making the right noises with regard to the CPEC project, Islamabad’s economic situation has reduced its options.

Apart from this, the Pakistan army (which runs the show when it comes to complex foreign policy issues) has robust ties with Beijing, and will prevent any drastic changes to the CPEC agreement. During his meeting with Wang Yi, the Chief of Army Staff, General Qamar Javed Bajwa assured the visiting Chinese Minister of full support. The Chinese had a robust relationship with former Pakistan Army Chief, Raheel Sharif as well.

A re-think on CPEC as well as Pakistan-China economic relations (highly unlikely in the short run), would benefit not just Pakistan, but could have broader ramifications, and may compel more countries to rethink their ties with China.

The Malaysian PM, Mahathir Mohammad deserves credit for highlighting the shortcoming of China’s infrastructural projects as well as it’s economic ties with certain countries. This debate is not likely to die down soon, though not every country is in a position to take a bold stand like Mahathir. Imran Khan, in private, may be supporting Mahathir’s approach towards China, but can not afford to do so publicly.

Tridivesh Singh Maini is a New Delhi based Policy Analyst associated with The Jindal School of International Affairs, OP Jindal Global University, Sonipat, India

South Asia

Pakistan and Germany are keen to Sustain Multifaceted and Mutually beneficial Cooperation

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Pakistan has varied history of relationship and cooperation with other countries in international arena. Despite of proactive foreign policy Pakistan has been struggling to acquire global or regional status as a major power. Now in the age of globalization, the foreign relations between states have become more significant than before. Global and regional organizations, societies, economic zones and countries have network to attract and develop relationship among them. A major goal of Pakistan’s foreign policy is to develop good relations with international community and to handle global and regional issues. Activism of Pakistan‘s foreign policy reflects on the domestic socio-economic development. The national interest of Pakistan also support to regulate inputs from the external atmosphere into internal situation and to strive security and territorial integrity in the region and glob which always remained top concern of Pakistan. As bearing geo-strategic position, Pakistan seeks good relations with regional and global powers like America, China and European Union. Within European Union Germany has emergence as the developed economy in Europe. It is not only playing vital role within European Union but at the global level. Pakistan is also enjoying cordial relations with Germany on the base of common interest and perception on all international issues. Germany is also very keen to see sustainable development in Pakistan and acknowledges that the Pakistan is playing constructive role for regional peace. Germany greatly values Pakistan intense to strengthen multifaceted and mutual beneficial cooperation. Both the countries have been engaged on political, economic and socio-cultural partnership.

In past, East and West Germany had tilted towards forming alliance with India in 1950s but in 1960s, President Ayob Khan‘s visit to West Germany established economic relation between both the countries. Post Pak-India war 1971, East Germany was the first country of the Europe who recognized Bangladesh. During 1990s, Pakistan and Germany established Pakistan German Business Forum and Germany had become the fourth largest trade partner of Pakistan in 2000.  Germany also was ally of Pakistan in the war against terrorism in the north-west part of the country. Since the last few years, both the countries developed trade relations as well as Germany invested in the field of science and technology in Pakistan. On August 24, 2014, Germany built Pakistan Gate in Berlin to provide business and trade facilities to the businessmen of both the countries.

In November 2018, Pakistan offered Germany to join CPEC and to invest in the Special Economic Zone (SEZs). The mutual trade between both the countries enhanced to 3.0 billion euro in 2019.In 2021, Both Pakistan and Germany are celebrating 70th anniversary of establishment of bilateral relationship. Both the countries are planning to undertake several activities in this regard. Last month German Ambassador visited Karachi Chamber of Commerce and industries to call German companies, entrepreneurs and investors to earn from the potential and opportunities which are available in Pakistan and to bring business communities of both the countries more closer as well. Foreign minister of Pakistan has visited to Germany and meeting with business and members of Pakistani community. The foreign Minister held meetings with the leadership of Germany and repeated the desire of expansion of bilateral economic activities and exchange of technology. Both sides also discussed rapidly changing situation of Afghanistan and South Asian region. During the discussion, Pakistani Foreign Minister Shah Mehmood Qureshi and Foreign Minister of Germany Heiko Mass, Pakistan and Germany agreed to review the entire gamut of Pakistan-Germany relationship and tools of further deep bilateral cooperation in the field of trade, investment security and defense, health, education, tourism. The mass of both the countries want to utilize the potential of good relationship but it is observed that both sides have lack of political hierarchy, dedication and sincerity in past. The development and expansion of bilateral relationship lies on the path of peaceful coexistence and serious changes in the socio-economic structure is needed. Peace process with the neighboring countries like Afghanistan and India may attract Germany to invest in CPEC projects and other local project of education, vocational training, dam construction, tourism and economic activities in Pakistan. There is a need to organize a forum for the students and scholars of both the countries could interact and exchange their expertise for academic, economic and technology growth. There is potential of people to people interaction and development of cooperation between Pakistan and Germany. Pakistan may be more benefit from the relationship with Germany if the serious efforts be made on government level.

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South Asia

Modi’s Illiberal Majoritarian Democracy: a Question Mark on the Future of Indian Minorities

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The word majoritarian is an adjective which relates to or constitutes a majority, majoritarian politics, or majoritarian democracy. It can be defined as a traditional political idea, philosophy or a practice according to which any decision whether political, social, or economic of an organized society should be made by a numerical majority of that society or it can be defined as a traditional political philosophy that stresses that a majority usually branded by religious, language, social class that also includes other recognizing factors of individuals in a society are subject to a level of superiority in a society because of which they have a say in every affair of a society. The concept of majoritarian dispensation in India under Narendra Modi has deep links with four other political philosophies i.e. Populism, Nationalism, Authoritarianism, and Sultanism. Before exploring Narendra Modi’s majoritarian policy of governance in India and its effects on the future of Indian minorities, I will first uncover the link of majoritarianism to political philosophies as mentioned.

A majoritarian leader is actually a populist leader who works hard for the concerns of people that who thinks are being ignored by the established elite groups in a society, and who always present himself as a new man mostly of a modest and plebeian background against old political establishment, in spite of the fact that who is a seasoned political figure, but usually not centre stage. This is exactly what Narendra Modi is, because in his 2014 election campaign, he presented himself as a new man against the Ghandi’s family’s old political system despite the fact he was CM Gujrat at that time. He also presented himself as someone who belongs to a very plebeian background that he had to work in his father’s tea shop when he was a child. Whereas, nationalism is a political idea or a philosophy that promotes and protects the interests of a particular nation, nationalism is the bedrock of most of the populists and NarendraModi is no exception. NarendraModi is a majoritarian national-populist leader who since his childhood has been the member of RSS, and now is a full time pracharak of RSS ideology that stresses that Hindu are the true and only sons of this Indian soil.

Majoritarian national- populist leaders like Narendra Modi are basically authoritarian leaders who reject political pluralism, and this is exactly what Modi is doing in India.Modi  and the BJP has made it clear that no other party should compete with it, or is even needed, as indicative from its slogan of a ‘Congress Mukt Bharat’ (a Congress-free India).Whereas, Sultanism is a form of authoritarian government and according to Max Weber NarendraModi is a new sultan of India who is pushing India towards illiberal democracy by rejecting all kind of civil liberties particularly of Indian Muslim minority.

Modi’s majoritarian policy of governance in India is basically the promotion of majoritarian democracy that asserts Hindus a special and superior status in India because they constitute 80.5% of total Indian population and that this majoritarian policy protests Hindutva ideology  that stresses that Hindus are the only sons of this soil and that strengthen the Hindu community. This majoritarian democracy is a big question mark on India as the world biggest liberal democracy because continuous violence, rejection of civil liberties, and crimes against the minorities that are Muslims, Sikhs, and Christians have been on the increase. About 1.8 million people who are minority communities are tortured in police custody every year. The word murder of minorities has been replaced by the term encounter killings. Torture have increased to such a huge extent that it questions the credibility of the rule of law and criminal justice. Hindu nationalists are revolting all around India especially against Muslims because they are the largest minority in India constituting 13.4% of total population and because Hindus have resentment toward their religion, Christians and Sikhs are no exception to their violence because they too constitute 2.3% and 1.9% of total Indian population.

Unfortunately, India under Narendra Modi is crawling from the world’s biggest liberal democracy to illiberal majoritarian democracy which is promoting and safeguarding only Hindu’s civil rights and liberties and that which is negating minority’s civil liberties and civil rights especially rights and liberties of Muslims of India. One such example of this is the Citizenship Amendment Bill (CAB).Under the act, for the first time in India, religion is a basis for granting citizenship. According to some this citizenship amendment bill by BJP is an intentional act in order to marginalize Muslims from mainstream politics. In addition to this, Muslims are not only being tortured at their religious places for their religious affiliations, but they are also being tortured at their educational institutions which is evident from a video of 15 December 2020, where Delhi police brutally tortured Muslims students of Jamia Millia Islamia university.

Keeping in mind Narendra Modi’s illiberal majoritarian democracy, the future of liberal democracy or pluralistic India appears to be gloomy, where the future of Indian minorities especially Muslims is a big question mark. 

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South Asia

CoVID-19 Control: Can Pakistan Learn From China?

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It has been over a year since the first case of CoVID-19 was confirmed in Pakistan. The tally has reached 721,018 confirmed cases, 15,443 have died and 4,143 critical cases by 11thApril2021. Across many countries, since January 2020, a massive surge of research into CoVID-19 had enabled the scientific and medical community to better understand how to manage and eliminate the virus through public health interventions. Today, we have learned, CoVID-19 causes acute symptoms and death. We have learned, immunity lasts at least eight months and we also have five licensed vaccines. We have learned, the long-term effects of CoVID-19 and the morbidity attached to having this virus. We have learned, virus transmission occurs through droplets and aerosols spread through coughing, sneezing, breathing and speaking. We also have learned, stopping the spread of CoVID-19 requires people to avoid mixing though restrictions on social life. We have learned, the virus can mutate into various strains that can be more transmissible – and we also have understand cat-and-mouse game between vaccine and variants.

To alleviate the destructive effects of CoVID-19 on the economy, Pakistan has sought debt relief of slightly around $2 billion from its G20 creditors. In addition to the G20 countries, China was the largest bilateral creditor with $9 billion, followed by Japan with $5 billion. By early April 2020, when there were just about 2,000 CoVID-19 positive cases in Pakistan, the World Bank approved $200 million package to help Pakistan. Likewise, the International Monetary Fund (IMF) had approved the payout of $1.386 billion as financial support to Pakistan to meet its urgent balance of payment needs halting from the CoVID-19 outbreak. Further, to support Pakistan’s public health response to the CoVID-19 and allow to meet the basic needs of the vulnerable and poor segment of society, the Asian Development Bank (ADB) approved $500 million emergency assistance loan to Pakistan. Similarly, The Islamic Development Bank (IDB) also provided a $650 million financial package to support Pakistan in its efforts against the CoVID-19. All these grants were provided to Government of Pakistan to assist in effective and timely action in response to the spread of the CoVID-19. The objective was to strengthen Pakistan’s public health infrastructure and to alleviate socioeconomic disruptions due to the pandemic. Despite huge grants and substantial endowments, Pakistan’s response to the CoVID-19 has been unsatisfactory. Lack of basic healthcare infrastructure, disease surveillance and management system,  and inconsistent implementation of policies and SOPs resulted in the rapid and incessant spread of third-wave of CoVID-19 throughout the county.

China’s extraordinary organized and preventive risk management approach, established on coalition between government officials, virologists, epidemiologists and public health experts, has demonstrated to be successful in containing and controlling CoVID-19.The experience in China emphasized the significance of listening to science and public health experts during pandemic event. Firstly, China’s response demonstrates the value of national research and public health capability. Huge investment in research and development rendered China much better prepared for CoVID-19. China’s experience indicates the value of investing in national health and research scheme to boost laboratory capacity along with workforce. They are essential to a rapid and effective national response to health emergencies and to national health security. Secondly, a strong foundation of research and development cannot ensure effective control without powerful top-level political dedication to use science to confront the outbreak. Government and leaders must respect science, understand its significance, and act on science-based advice in a way that is best for society. Thirdly, attaining speedy and successful implementation of control measures for CoVID-19 requires extensive community engagement. Public solidarity during the CoVID-19 outbreak in China had been unprecedented. Control measures that could sacrifice personal freedom were accepted readily by the nation.

To be brief, cricket is to South Asia and football is to Europe. In fighting CoVID-19, everyone is equal. Everyone has the identical liability and shares the equal threat. The effective implementation of prevention and control measures in China is a model for Pakistan other parts of world to follow. From the beginning, a science-based, risk-informed and phased approach was taken, with a clear appreciation and enthusiasm. Today, China has restarted its economy, reopened and almost returned to normality. The key of success story is to make everybody responsible, get every single division involved and held executives accountable. These are the most prominent lessons Pakistan could learn from China at national and local levels. After the failure of “Smart-Lockdown” strategy, Pakistan needs to choose a strict strategy, should follow the example of China and continue the lockdown until the number of CoVID-19 infections is brought close to zero; the strategy should then be to maintain infection rates at very low level until vaccination is done. China’s epidemic management provides an important experience from which countries such as Pakistan can learn. This applies in particular to Pakistan, which would risk to lose many of its achievements in case of a severe third wave of the epidemic. Government of Pakistan should involve not only public health experts, virologists and epidemiologists, but also scientist and respect science advice when making any decision that is required to keep the epidemic under control. The rest of the world can also learn from China’s success in bringing outbreak under control.

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