Connect with us

South Asia

Answering the CPEC Challenges

Qura tul ain Hafeez

Published

on

China-Pakistan Economic Corridor will help sustain the economic growth of China and will highlight the strategic importance of Pakistan. It will offer Pakistan with a chance to broaden the horizon of its economy and enlarge its foreign reserves. However, whilst venturing towards industrialization and Foreign Direct Investment (FDI), CPEC in Pakistan faces certain challenges that have so far impeded the industries in realizing their full growth potential. Principal obstructions to investment in this regard are various security and political factors as well as the non-availability of infrastructure and power crises.

The answer to these challenges is that the FDI is very much necessary for raising the value of capital. Eventually, once the high capital value is achieved it will helps in developing infrastructure and for initiating large industries. Thus through Foreign Direct Investment (FDI) the dearth of capital will be lessened to greater extent. In order to set up competitive industries in the globalized world one of the priorities is the accessibility to the productive and high tech transportation for maneuvering of raw materials and finished goods. This is an understood observation that, economic expansion strengthens infrastructure advancement and vis a vis.

The second most important aspect is how far CPEC is beneficial for the Pakistani labors and how the industrial advancement will be creating Jobs through CPEC for Pakistani people? The youth surge is often named as asset and it should be chief concern of the State, because this strength has turned into burden owing to unemployment. In this regard CPEC could offer appropriate interference in the course of employment creation to take in hand the grievances of unemployed youth. The electricity shortage and network of infrastructure further minimizes the on hand base of small industries in Pakistan. The first phase of energy projects in early harvest program of CPEC will be effective in reducing the electricity shortfall. The inexpensive and unremitting power availability is indispensable for stimulating Pakistan’s manufacturing sector. This will increase the economic activities, create jobs and catch the attention of foreign investors to invest in trade zone of Pakistan. Eventually all the project which are part of CPEC, whether they are electricity production projects or infrastructural advancement projects need man power -engineers; civil mechanical, electrical. Along with disciplines of engineering technicians: masons, welders, carpenters, surveyors, steel fixer, machine operators, etc are also required. Moreover not only the labor and technical workforce, there is also a need of professional economists, finance, accounting, management HR and interpreters of Chinese language who will monitor and manage these projects. Thus to sum up the answer to the question that how far CPEC is effective in creating jobs, one can say that  according to the resources and as the above mentioned, CPEC will be generating around two million jobs implicitly or explicitly till 2030.

Moreover, this is also worth noting that if the Pakistan stakeholders are making their living and paying high tax regardless of the Chinese who are investing and they are exempt from taxes. Under such conditions how CPEC will be profitable for Pakistani investors and local industrialists if Chinese are tax exempt and local industries are not? In that case CPEC Special Economic Zones (SEZs) will be a fruitful strategy for promoting trade, employment and economic growth. Consequently to upgrade the industries, through SEZs, one of the intended objectives of the CPEC is to best serve the private sector of Pakistan to strengthen local industries through Free Trade Agreements (FTA). The proclaimed incentives which CPEC promises to offer the local enterprises include the promotion of Pakistan’s industries from accumulating imported parts and components to localized production of parts by utilizing the available resources, offering employment opportunities to the people and encourage bilateral connectivity between various Chinese and Pakistani enterprises. It will also expand trade volume and logistics, business-to-business (B2B) links, two-pronged trade arrangement, regional connectivity and encourage evenhanded trade maturity. Subsequently in order to facilitate the local business sector, Board of Investment (BoI) established “CPEC-SEZ Cell” in February 2017 in order to address the concerns of the stakeholders on the matters related to the CPEC and Special Economic Zones. The prime function of this support cell is to attract, facilitate and promote both local and foreign investment in the country as per Special Economic Zones (Amendment) Act, 2016 of Pakistan.

Furthermore in line with changing global economic structure CPEC will bring trade openness. For that Pakistan has prioritized the establishment of SEZs. So far 41 sites have been identified for SEZs and the Board of Investment (BoI) has mapped out nine exclusive Industrial Zones to be built under the larger umbrella of CPEC. It is also pertinent to mention that the CPEC project is not merely a route that connects Gwadar port with Kashgar but an opportunity for both China and Pakistan to enjoy the fruits of trade openness with Europe, Middle East, South and Central Asia as well. Thus the establishment of SEZs  promises to bring  Trade Openness through a massive socio-economic development  in the country specifically in the areas of energy, trade, agricultural, infrastructural development, connectivity, industries, poverty alleviation, tourism, cooperation between financial institutions and markets, and financial cooperation between Free Trade Zones (FTZs).

Last but not the least the difficulty of capital and capacity insufficiency can be alleviated through joint ventures between Chinese and Pakistani business community under CPEC. It is necessary to enlarge the stakes of domestic industry and protect their interests under CPEC. Pakistani entrepreneurs should be given incentives similar to Chinese investors for investment in the CPEC projects.

Qura tul ain Hafeez has done M Phil in international relations from Quaid-I Azam University Islamabad. She is currently working as a Research Associate at Strategic Vision Institute Islamabad. She can be reached at Quraathashmi[at]gmail.com

Continue Reading
Comments

South Asia

Sirimavo of Sri Lanka: Refocusing on World’s first Women Prime Minister

Published

on

Authors: Srimal Fernando and Pooja Singh*

In 1970s, there was a time when Sirimavo Bandaranaike caught the global attention and her premiership was one of the most momentous times in Sri Lanka’s political history. On 21 July, 1960, she became the first ever woman Prime Minister of Sri Lanka (formally known as Ceylon) and the world. Even today nearly half a century later, Sirimavo’s name is remembered among the thousands of Sri Lankans and among the Sri Lanka Freedom Party (SLFP) supporters. Thus the Sri Lankan voters expectations about Sirimavo rose within no time after the unfortunate assassination of her husband S.W.R.D. Bandaranaike in 1959.

In the summer of 1970, the Sri Lanka Freedom Party (SLFP) , the Lanka Sama Samaja Party (LSSP) and also the Communist Party (CP) was sweeping electorates in a general election by winning 115 seats out of 151. In essence, Sirimavo’s administration presented far-reaching constitutional and socio-economic reforms that were suitable for a small island nation.  In fact Mrs. Bandaranaike handled the transfer of island nation becoming a republic under a new constitution tactfully. In this context, Dr. N.M. Perera, Felix Dias Bandaranaike, Philip Gunawardena was some of the primary shapers of her administration. At that time, unlike her predecessors, the former premier showed great interest in developing cement, paper, steel and chemical industries. Despite promising signs under her leadership, uneven inequalities from 1948 to 1970 and economic stagnation created tensions within rural masses. Surprisingly, a coup in 1971 by the southern insurgents headed by Rohana Wijeweera, the leader of the Janatha Vimukthi Peramuna (JVP) shattered the hopes of Bandaranaike government for a short time. Although coup was unsuccessful because of Sri Lanka’s military support to premier’s rule.

It is noteworthy to mention Sirimavo era solidified Sri Lanka’s foreign policy in the coming decades, which set the stage for the island to increase bilateral ties with India and China. In fact, Indian Prime Minister Indira Gandhi was a trustworthy friend of Mrs. Bandaranaike. This period also saw the closest bilateral relations between the neighbouring countries. Especially, Mrs. Bandaranaike was a giant among Non-Alignment leaders. In the summer of 1976 at the fifth Non Aligned Movement (NAM) summit held at the Bandaranaike Memorial International Conference Hall(BMICH) in Colombo, Mrs. Bandaranaike stated, “The non-aligned countries should fight against injustice, intolerance, inequality, old concept of empire and intervention.”

On the domestic political scenario, the opposition leader J.R. Jayewardene and his deputy Ranasinghe Premadasa had been outspoken critics of Sirimavo Bandaranaike policies. When she lost 1977 general elections, it was extremely a difficult situation for Mrs. Bandaranaike and for the Sri Lanka Freedom Party (SLFP) coalition partners who had developed a remarkable sense for socialist political culture within the multicultural society in  Sri Lanka. Seven years later Mrs. Bandaranaike had lost her civic rights, the party hierarchy nominated veteran SLFP stalwart Hector Kobbekaduwa for the forthcoming referendum. The Referendum results did not reflect the true situation. Then while the    atmosphere began to change in the island country after the eruption of ethnic conflict and signing of the Indo-Lanka accord. This scenario caused strong anti-United National Party (UNP) regime change feeling.  In a closely fought presidential election in 1988, the SLFP leader Mrs. Bandaranaike lost to UNP presidential candidate Mr. Premadasa. There were no immediate solutions to the crisis in Sri Lanka under Premadasa’s presidency.  Hence  in  the South, due to the JVP uprising and the Tamil tiger (LTTE) attacks in Northern and Eastern provinces, conditions inside the Island nation was going from bad to worse.

At the same time, the crisis in the Sri Lanka Freedom Party (SLFP)  came to surface and the party was divided into several wings.  Thus, the time had come for SLFP party unity for doing away with the seventeen years United National Party (UNP) rule. Mrs. Bandaranaike was convinced that it was time for a new generation of party leadership. She opened the corridors of political power to Chandrika Bandaranaike Kumaratunga, Mahinda Rajapaksa, and Maithripala Sirisena who later became presidents of Sri Lanka. In late years, Mrs. Bandaranaike was a prime minister for a short time from when her daughter Mrs. Kumaratunga was president. On the Foreign Policy front she reworked strong bilateral ties with India and China and her policies remained important for Non Aligned Movement (NAM) nations and for India  and China ties with Sri Lanka. After more than fifty years of service to the Sri Lanka Freedom Party (SLFP), to the nation many of the Sri Lankan’s were finding it hard to come to terms with Sirimavo’s sudden death on 10th October, 2000.Late premier Sirimavo Bandaranaike’s pragmatic policies mattered very much for the South Asian island nation, the region and to the world at large.

* Pooja Singh, a scholar of Masters in Diplomacy, Law, Business at Jindal School of International Affairs, India.

Continue Reading

South Asia

Indian Human Rights violation in Kashmir

Adeela Ahmed

Published

on

In International conflict management, the models and approaches to solve the deep-rooted issue are vital and applicable but these models became fragile if any one of the belligerent states lacks the intent to solve any tangible solution. India rigid stance of avoiding any Peace Talks on Kashmir issue is the main irritant between rivalries which derails the conflict resolution. It is far important for rivalries to elucidate the dispute to move ahead.  Because it is ultimate truth that all the conflict and crises have an alternate way of tenacity.

In South Asian framework, Indian strategic ambitions are the main stumbling block in the way of Kashmir Resolution. While in the Global framework, major powers like Russia and USA military and then ideological interests compels states not to play any significant role for the resolution of Kashmir conflict.

Kashmiri Freedom Movement started from 1931 and still in 2018 it is constantly being exploited in the hands of Indian aggressive leaders. From 87 years, Indian barbarism is not a top-secret. Indian wanted to sideline and suppress the Kashmir issue in the prism of their national interests but the issue will remain alive with determined efforts of the Kashmiri and Pakistani people, human right activists, political and military leaders. The issue of Jammu and Kashmir must be resolved as per aspirations of Kashmiris.

Pakistanis and Kashmiris across the world chronicled their protest against Indian brutality and illegitimate occupation in Kashmir. Struggle for freedom of Kashmiri people will one day succeed by the grace of Almighty Allah.  Each day is like a black day until the resolution of Jammu and Kashmir with the consent of Kashmiri people.

There are many pragmatic choices for the resolution of Kashmir issue but the real dilemma is that India is not ready to come on Table for Peace talks due to their hegemonic ambitions. Recent Talks at UNGA 73rd session was also negated by Indian. As a rational nuclear state, they should realize that Kashmir is a nuclear flashpoint. Both the nuclear states should talk constructively and negotiations are the only way forward in which mutual national interests must be considered.

In 1948, it was India who went to United Nations and then it was decided unanimously a plebiscite in Kashmir. It is the right of every Kashmiri to decide his destiny indigenously. As there are no law enforcement agencies of international organizations to implement its resolution but the role of P-5 states can facilitate for resolution. Till now no such role is played by them but the importance of UN forum cannot be negated as states like Pakistan can raise their voices at international level against Human Rights violations.

The Indian occupational forces under the cover of Armed Forces Special Protection Act (AFSPA) and other black laws frequently involve in religious cleansing of Muslims. After the martyrdom of Burhan Wani in 2016 Indian forces started using most dangerous weapons of pellet firing shotgun. Where are Human Rights Law against the killing of innocent Kashmiris? The lives of Kashmiris are as important the people killed in 9/11, London attacks, in Mumbai attack or a single Indian soldier. The US fought the war on terror and still engage in most complex war but What about Terror of India in Kashmir. Kashmir needs not to be forgotten at all. US Secretary of State Michael Pompeo asked Pakistan to abandon terrorist attacks into India but from Where Kashmiri demand Freedom. The US needs to let her interest go, at least for once, to settle the Kashmir issue. For Pakistan, it is not just a matter of territorial importance but relates to the lives of Kashmiri people who are suffering at the hands of India’s state terrorism.

Modi government is supporting to have Direct Talks with the Taliban, but when it is about Kashmir, they became silent. There is a dire need for the Indian government to review their mindless Kashmir policy. Kashmiri people must be given the right of plebiscite to decide them their destiny. Pakistan’s foreign policy is on right direction that the tools of diplomacy need to be improved for better results and peace process is the only way forward.

Continue Reading

South Asia

13th G-20 Summit: India’s Diplomacy Finest Hour

Published

on

The week leading up to the 13th G-20 Summit 2018 was one filled with chaos for the world’s mightiest economic and military superpowers. Great Britain was at loggerheads with the rest of EU and with its own Parliament over the Brexit deal. France was on the boil with protests over rising fuel and commodity prices. The United States of America and China had locked horns on who would cede ground in the ongoing trade war. Russia was again caught in conflict with Ukraine. Germany was in a fix on whether or not to impose sanctions on Russia over the Kerch Strait incident. Finally, Saudi Arabia was entering the summit knowing it would face diplomatic isolation over the ongoing yet to settle incident brutal murder of journalist Jamal Kashoggi.

At the summit, there was no success between the abovementioned countries to break the palpable tensions amongst them. The only diplomatic breakthrough and yet not a success was drawn between China and the United States wherein they decided to halt the tariff war for now. However, there no details are out on this halt and the devil is the details which is yet to be revealed. On the bilateral front, POTUS Trump did not meet Crown Prince MBS of Saudi Arabia or with Vladimir Putin.

While the above two paragraphs seem to portray a gloomy summit, one country made diplomatic strides in balancing and holding all the powers present at Buenos Aires together and achieved in bringing forth a very progressive Buenos Aires G-20 Leaders’ Declaration. I’m referring to the Republic of India. In a matter of 48 hours at the summit, under the stewardship of Prime Minister Narendra Damodardas Modi, India left a significant foot print. India was able to hold bilateral and trilateral meetings with very contrasting and contradicting groups without either of the groups gaining more prominence over the other.

India held the first ever Japan-America-India (JAI) trilateral meeting. The meeting of the three democracies discussed their converging interests to ensure security and stability in the Indo-Pacific region. Despite being a part of this group, India has made it clear that it sees Indo-Pacific as a geographic and not a strategic construct. While James Mattis proclaimed recently that the Indo-Pacific for the United States is from Hollywood to Bollywood, Mr. Modi long before this meeting had stated that for India, it stretches all the way from the East African Coast to the Western Coast of America. India stands by this firm position in order to maintain a friendly relationship with China which it has rebuilt since the Doklam stand off last year. India has now held 4 bilateral meetings between Xi Jinping and Modi. Even the Chinese side has acknowledged that there has been perceptible improvement in the Indo-China relations post the informal Wuhan summit between the two leaders. The JAI meeting can be termed as a victory for India as it did not receive any negative press from the prominent Chinese press.

Also, there was no signs of the QUAD group holding any meeting despite Australia’s presence at the meeting because China has always viewed this group suspiciously and believes that this groups interest is to contain them. India showed respect to China by not bringing this group together at Buenos Aires.

Next, India participated in the RIC meeting with Russia and China. This was the 2nd time that this group met in 12 years. This showed the seamless balance India has achieved in interacting with America in JAI and the Eurasian giants in the RIC meeting. Modi comfortably raised the issues of rising volatility in fuel prices in this meeting without any derailing voices it usually faces from Pakistan in the SCO meetings where theses three countries usually meet on such issues. The RIC meeting was necessary because unlike at JAI, over here Modi was able to highlight the necessity to reform multilateral institutions which have been unable to meet the expectations of the international community.

There was a BRICS meeting held on the sidelines of the summit too which was attended by heads of the four governments. They exchanged views on continued terrorist attacks and urged all nations to take a comprehensive approach on tackling terrorism including all the elements identified in the Johannesburg Declaration.

The G-20 declaration echoed a lot of pressing issues that were reiterated by Mr. Modi throughout the two days at various fora. His points on tackling international economic offenders; countering terrorism; tackling climate change; reformation of multilateral institutions; benefits of digitization; need for technological innovation in finance; sustainable food future; gender empowerment found its way in some form or the other into the declaration.

The Indian Diplomacy was at one of its finest hours and also its high points that it has never exhibited so far. In a matter of those 2 days, India showed that it has gained global salience. Whether it is the world’s most advanced democracies; world’s most progressive economies or world’s most powerful militaries—everyone today wants great relations with India. Modi was able to show that NAM is a relic in the Indian diplomatic archives and that we are able to work in contradicting and contrasting groups and yet maintain seamless balance in achieving our strategic interests and promote peaceful relations with all nations alike.

India is now gearing up for the G-20 summit in 2022 which it will host in the 75th year of its independence. India owes its gratitude to Italy which has forfeited its opportunity to host in 2022. Mr. Modi has sounded the bugle that we will be a New India in 2022. Although India may not have the indigenous military prowess or economic dominance like China or the United States, it has always used the good will it has achieved through its soft power to bring the world together. Mr. Modi and his diplomatic entourage deserve a salute for keeping this G-20 summit together.

Continue Reading

Latest

Trending

Copyright © 2018 Modern Diplomacy