It has been a few months since the Himalayan state of Nepal, landlocked between northern India and the Tibet Autonomous Region of China, has been witnessing an internal power tussle within the ruling Nepal Communist Party.
Prime Minister KP Sharma Oli, on December 20, managed to get the President’s nod to dissolve the 275-member lower house of the Parliament, triggering spontaneous protests in all major cities, including capital Kathmandu. The move has also invited strong criticism from the Opposition and constituents of the ruling coalition.
The lower house, or the Pratinidhi Sabha as it is called, was expected to serve for a term of five years. With its dissolution, the President has called for fresh elections in a two-phased manner to be held next year in April-May.
‘Undemocratic’, ‘constitutional coup’
However, there are no provisions in the 2015-adopted Constitution of Nepal for a Prime Minister to dismiss a functioning Parliament. Politicians across the parties have called the move as undemocratic, with the Opposition stating that the decision amounted to a constitutional coup.
Meanwhile, taking the judicial route, three writ petitions were filed in the Supreme Court of Nepal on December 20 itself, the date of dissolution of the Parliament, with more petitions on the way.
Oli’s troubles with India
Earlier this year, Nepal was accused of acting on the behest of China, particularly with regard to its special relationship with India. Diplomatic ties with India had hit an all-time low in 2020 when the long-frozen Kalapani dispute was resurrected by Kathmandu, which was accused by many analysts as merely a cover-up used by PM Oli against his government’s failure to tackle the Covid-19 pandemic at home and the economy left in tatters.
Prime Minister Oli, belonging to the Nepal Communist Party (NCP), spearheaded a radically unprecedented campaign against the giant South Asian neighbour bordering Nepal on three sides by exhibiting unwanted assertiveness, in the border areas, perceivedly inspired by Beijing.
The Oli government had even released a new political map showing the disputed Kalapani-Lipulekh region as part of Nepal, which has been seen traditionally as India’s hold. Simultaneously, he built closer military and economic ties with Beijing. Notably, China’s Defence Minister General Wei Fenghe visited Nepal in November, this year.
PM Oli’s new belligerent stance against India was largely criticised by his political challengers such as Pushpa Kamal Dahal ‘Prachanda’, the former Prime Minister and previously leader of the Maoist-Centre faction of the Communist Party of Nepal which merged with Oli’s Unified Marxist–Leninist faction in 2018.
Tensions between the two warring factions were increasingly visible since May, this year, and took a drastic turn after Parliament passed the new map of Nepal in June.
Senior leaders within the party also expressed their displeasure with Oli’s unilateral policies, including with regard to ministerial and diplomatic appointments, complaining that they were not duly consulted by the Prime Minister before.
Despite all this, PM Oli continued to up the ante by openly accusing India of hatching plots to topple his government, pushing Nepal into totally unwanted troubles with India.
Heading to a possible split
Following the dissolution of the Parliament, seven ministers in the government close to Prachanda announced their resignation. PM Oli came to power three years back, in 2017, after winning the very first elections held after the new democratic Constitution was adopted.
Earlier this year, Oli’s attempts to promulgate key ordinances through the party were also foiled by the rival faction, causing deadlocks in the functioning of the government. As things turn out, the Nepal Communist Party might be heading towards another possible split and a new race for power.
India: Metamorphosis from disinformation to stark lies
When European Disinfo Lab exposed India’s disinformation network, India apologized. But, the portents are that India continued spreading disinformation, nay stark lies against Pakistan. India’s usual modus operandi was to employ dubious thinktanks and journalists of doubtful credentials to tarnish Pakistan’s image. For instance, Macdonald-Laurier Institute, a registered Canadian charity, published a Pakistan-bashing report ‘Khalistan—A project of Pakistan’ which found mention in almost all leading Indian newspapers. Now, Indian government has told its Supreme Court that farmers’ protest in India are being pro-Pakistan and pro-Khalistan elements. The SC has called upon Indian government to submit an affidavit about its allegation along with corroborative evidence.
Another pro-India “thinktank”, spouting venom against Pakistan is the “International Terrorism Observatory”. It is chaired by Roland Jacquard. Prestigious French newspaper Le Monde (The World) pointed out in 2015; he is the only member “without publications, without a website, without postal address and without any legal existence”. He runs a bookstore stacked with books on “networks of Islamist terrorism’. According to journalists Didier Bigo, Laurent Bonelli and Thomas Deltombe, Roland Jacquard’s claim of being a media expert is questionable.
India-sponsored think tank International Institute for Non-Aligned Studies run by Srivastava Group of India shot into limelight when it paid for the travel and accommodation of an unofficial far-right delegation of 23 European Union parliamentarians to Srinagar on October 30, 2013. The trip was arranged by Indian intelligence surrogate, Madi Sharma, who posed as a self-styled “international business broker”.
India’s metamorphosis from disinformation to stark lies
It appears India has now realized that its disinformation is losing clout. So, instead of banking on dubious journalists and think tanks, it has begun to churn out lies against Pakistan through its own agencies, including the prestigious India Today.
Almost all media outlets and TV channels disseminated the false report that an ex diplomat has admitted that India did actually kills 300 men in Balakot air strike on February 26, 2019. Some channels have retracted the false rreport while others are staying mum.
What did the news agency ANI say?
The statement falsely attributed to diplomat Agha Hilaly was carried by several news organisation, including India Today, and was based on an input by news agency ANI. The News agency ANI quoted Pakistani diplomat Agha Hilaly as saying, “India crossed the international border and did an act of war in which at least 300 were reported dead. Our target was different from theirs. We targeted their high command. That was our legitimate target because they are men of the military. We subconsciously accepted that a surgical strike — a limited action — did not result in any casualty. Now we have subconsciously told them that, whatever they will do, we’ll do only that much and won’t escalate.”
The video was misattributed and the quote was actually a snippet of a larger quote made by former diplomat Zafar Hilaly in a television debate.The full quote by Zafar Hilaly is as follows:: What India did was an act of war. By crossing the international boundary India committed an act of war in which they intended to kill at least 300 people. Coincidentally, they [Pakistani people] did not die and India bombed a football field. “Hilaly has also said that the viral video is edited and does not represent his full quote. He also shared the full video on his Twitter account. A fact-check by “Alt News” found that the comments were misreported and the ex-diplomat who made the comments was “Zafar Hilaly”.In the debate posted on YouTube by HUM news as part of a program called “Agenda Pakistan”, Hilaly had said, “What you did, India, was an act of war. India ne jo kiya, international boundary ko cross karke ek act of war. Jisme kam se kam 300 logo ko unhone marna tha. (What India did was an act of war. By crossing the international boundary India committed an act of war in which they intended to kill at least 300 people).”Zafar Hilaly also tweeted a video saying his statement was spliced and edited. Alt News said a version of the video posted on Twitter had an abrupt cut “around 0:7-0:9 seconds” and the word “marna (to kill)” sounds as if Hilaly said “mara (killed)”. The news has since been removed by websites.
A basic principle of disinformation is ‘never lose sight of truth’. A half-truth or even .005 per cent to 5% untruth, a twisted truth, or sometimes a truth concealed may appeal more to readers or viewers than a stark lie. Goebels is not alive to tell that he never said ‘the bigger the lie the more it will be believed’. Pathological lying is not the art of disinformation. Psychologists would tell that, even under stress, a mature person would suppress truth rather than tell a lie.
Richard Deacon says, ‘Truth twisting…unless it is conducted with caution and great attention to detail, it will inevitably fail, if practiced too often… It is not the deliberate lie which we have to fear (something propaganda), but the half-truth, the embellished truth and the truth dressed up to appear a something quite different’ (The Truth Twisters, London, Macdonald & Company (Publishers) Limited, 1986/1987, p. 8).
He gives several example of disinformation including sublimininal disinformation by which the truth can be twisted so that the distortion is unconsciously absorbed, something which both television and radio commentators have subtly perfected’. (Ibid. p. 9).
Role of India’s foremost intelligence agency, the Research and Analysis Wing (RAW), in conducting disinformation campaigns has, by and large, remained hidden from the media watch. It is now being exposed. RAW is burning midnight oils to exploit USA’s sensitivity about certain ticklish subjects like Hawala transactions for funneling funds to “terrorists’, nuclear proliferation, use of missiles to hit aircraft, and development of chemical biological and nuclear weapons and delivery systems.
The RAW’s disinformation campaign, often bordering on lying, is well reflected by innocuous-looking news (unsupported by reference to information sources) that appear, from time to time, in Indian media. Hilaly debacle is a case in point.
Casteism inside RSS, and its’ abhorrence
Dr Ambedkar, the architect of Indian Constitution, believed that ‘RSS is a dangerous association’. The latest to join this belief is Bhanwar Maghwanshi, a former RSS worker and also the author of the book ‘I could not be Hindu’ (2020)
At the age of 13, Bhanwar Maghwanshi joined RSS. Instead of playing, learning and exploring, he opted to do something ‘bigger’ in his life. But, unfortunately, he was shocked to learn how RSS practices casteism without using the term ‘Dalit’ in its shakhas. He was active with RSS, as a sevak, during the so-called Janmbhoomi movement of Ayodhya in late 1980s. In his panchayat in Rajasthan, he never listened to azan or interacted with any Muslim – in person, but developed strong abhorrence for the Muslims when he was learning ‘skills’ in RSS. His dad was a Congress activist and discouraged him to join RSS (because, for him, RSS would never want ‘brahmin’ sevaks to sacrifice their lives) but BhanwarMeghwanshi – on positive note – entered RSS.
RSS is a hydra of Hindutva, Hindu Nationalism and Hindu Rashtra. BJP is its outcome. Since 2014, India is witnessing a systemic degradation of free speech, social equity, human development, economy, environment and women safety. The Modi government came to power in 2014 chanting ‘minimum government, maximum governance’ slogan but unfortunately it transformed India into ‘new’ India with the maxims of ‘minimum governance, maximum statism’. One of the oldest, yet contemporary, [social] statism is casteism. It’s 21st century and the elements of caste as a whole continues to haunt the democratic features of India. A recent NCRB data suggests that India is unsafe for Dalit and Adivasi girls. There’s an increase of 300% in hate crimes. The architect of India’s constitution Dr Ambedkar was ‘untouchable’ and had come to conclusions that Hinduism can’t be reformed. He chose Buddhism in October 1956 and found emancipation through the teachings of Buddha. The same is the case with BhanwarMeghwanshi who is an Ambedkarite today, learned a different version of Ambedkar in his RSS years. Even God knows that RSS has appropriated Dr Ambedkar conveniently, for its own political agenda.
Bhanwar’s ethnographic encounter in his book “I could not be Hindi – the story of a Dalit in the RSS” is essential to refute the pseudo-science of RSS or Hindutva trollers on the subjects of Islam, untouchability and other narratives. The book sheds a detailed light on what RSS is, casteism in the RSS, and how RSS makes its ground in the society. Navayana Publishing House mustered the courage to publish the book, unlike other ‘popular’ publishing houses, according to Bhanwar. He dreamt of becoming a ‘pracharak’ but was stopped to become a ‘vistarak’ because of his ‘caste’ and this is where he learned that he is a lesser Hindu than other Hindus in RSS. He left RSS after a very bitter experience. He writes, “We had organised an event of Sangh in my hometown, I was heading the event as I was the most active and passionate worker in my area. I had planned to make food at my home only for the senior guests and the priests who would join the event. My father strongly opposed and said that they would never eat food cooked by us. I did not listen to him. I cooked good Rajasthani food with pure ghee and invited them. They did not come home but said that ‘you just pack the food we will eat it in the next village, as we are running out of time’. I packed the food for them, I later learned that they did not have my food but threw it in a naala (gutter). As the district chief, I got angry with them and asked the reason, but did not get satisfactory answers. I was reminded of my father’s words that ‘people like us did not own any place in the Sangh’, it solely belongs to the upper castes.”
The book smashes the rosy picture of RSS and explains that the Dalits’ role in RSS is mere foot soldiers for the communal polarisation and Hindutva activities. In an interview to Caravan magazine (14th March 2020), Bhanwar Meghwanshi made it clear that “In the eyes of the Sangh, the Hindu Rashtra is a Brahmin nation with the varna system, the four vedas and the Manusmriti. The Sangh wants to run the nation on this very base. I feel that in the Sangh’s Hindu Rashtra, shudras or untouchables will be slaves, and Muslims, heretics or foreigners, will be given a second-class status.”
In this memoir, Bhanwar also writes that in his village, low caste people joined the RSS in large numbers: “Of the fifty or so children who attended the shakha in my village, most were OBCs—Kumhar, Jat, Gurjar, Mali and so on.” They joined because of the Sanskritization processes and because of the games they played in the shakha, but they resided for ideological reasons too as, slowly, they learnt that “hindukhatre main hai” (Hindus are in danger) because of Muslims and Christians. He also recalls that, while in the Sangh, he “heard a lot about weapons being stored in the basements of mosques” and that getting rid of the Babri Masjid was like “a second battle for independence”.
Bhanwar is not new in this race. A sarcastic letter authored by a Dalit activist P.D. Shelare, on 13/1/1934, published in ‘Janata’ divulged about casteism or caste segregation practices in some shakhas of RSS. Shelareratiocinated that RSS was aware of the practices but it did not react. It’s obvious to learn that Hinduism is incomplete without casteism. The caste practices made me leave Hinduism too, on 30th December 2018. I adopted Buddhism, on par with Dr Ambedkar’s teachings. While reading the book, I could resonate my experiences too. In the current landscape, interactions and social relations have changed a lot. Caste dynamics too. To add to the woes, love jihad law will further strengthen more endogamy and discourage intercaste marriages. Dining with Dalits alone would not bring about social changes. The ‘safe space’ for the dissents and Dalits is diminishing, whereas love for hatred is openly normalised.
Vandalism on the Capitol Hill: Points to ponder for Pakistan
The mob attack on the Hill engenders several questions about `demokratia’, `power to the people’. Has democracy become outdated in modern age? Or, it has all along been a flawed system? Does today’s democracy has two masks, one practical and another practical? Has democracy failed to deliver goods?
Could mafias coexist with democracy?
Aristotelian democracy and Modern Age
Aristotelian democracy has been criticized because of incompatibility of being at once `nonegalitarian’ and `socially equal’. In his study of political systems (oligarchy, monarchy, ochlocracy, etc), Aristotle concluded demokratia was probably the best system. The problem that bothered him was that the majority of free people (excluding women and slaves) would use their brute voting power to introduce pro-poor legislation like taking away property from the rich.
Aristotle suggested that we reduce income inequalities so that have-not representatives of the poor people were not tempted to prowl upon haves’ property. James Maddison (England) harboured similar concerns. He feared `if freemen had democracy, then the poor farmers would insist on taking property from the rich’ via land reforms (Noam Chomsky, Power Systems, p 84). The fear was addressed by creating a senate (US) or a house of lords (Britain) as antidotes against legislative vulgarities of house of representative or a house of commons.
Aristotle could not visualize that two powerful politico -economic systems would emerge after his demise, socialism and capitalism. Aristotelian system had an uncanny `socialist’ wrapper. As such, it would be unpalatable to those following socialism.
Failure of the upper house
Creating an upper house, a house of the rich, did not balance the poor against the rich. Soon contesting an election became a rich-man’s business. And both houses became populated with the filthy rich.
Aristotle would rejoice in the grave to see even, both, Pakistan’s National Assembly and the Senate, being populated by the rich. One member defiantly wore a Louis Moinet `Meteoris’ wrist-watch, worth about Rs460m. They never took any legislative steps to equalise citizens in access to education, medicare, housing and jobs. In short, in all realms of life in Pakistan. In the USA, also, the Republicans view the democrats as disguised socialist.
Pak law makers never looked into the origin of landed aristocracy, chiefs and chieftains in the subcontinent during the Mughal and British periods. A politician knows the art of playing cricket. One day he may be fire and fury against `ESTABLISHMENT’. Another day he may pose as champion of `establishment’.
The pliable politician knows the art of staying afloat, along with paraphernalia of legislature and other pillars of constitution. Doubtless, democracy in the USA as also in Pakistan is Aristotle’s dream as it is, by and large, stable, rich and pro-rich.
Free reins to mafia
In the case of the USA, the legislators from the Republican Party being pro-capitalism are reluctant to undertake radical pro-poor reform. In Pakistan’s case, pro-rich interpretations of Islam blocked all avenues of reform.
The Qazalbash Waqf v. Chief Land Commissioner (PLD 1990 SC 99) judgment is a majority-opinion judicial decision that blocked `land reform’ in Pakistan. The landed aristocracy began to occupy both houses. They ensured that agricultural incomes are not taxed. While NAB remained engaged in investigating urban incomes. No effort was made to probe origin of agricultural mafia.
Iron law of oligarchy
An inherent flaw of modern democracy is that the whole population of voters could not flock to parliament to participate in discussions. Only a handful of people within the parliament make decisions for the whole country. Noam Chomsky calls the people in a democracy `a bewildered herd’.
Robert Michels, the sociologist who devised the Iron Law of Oligarchy
The iron law of oligarchy is a political theory, first developed by the German sociologist Robert Michels in his 1911 book, Political Parties. It asserts that rule by an elite, or oligarchy, is inevitable as an “iron law” within any democratic organization as part of the “tactical and technical necessities” of organization.
Michels’s theory states that all complex organizations, regardless of how democratic they are when started, eventually develop into oligarchies. Michels observed that since no sufficiently-large and complex organization can function purely as a direct democracy, power within an organization will always get delegated to individuals within that group, elected or otherwise.
Following China model
It is naïve for Pakistan play China model overnight. Divested of morality, an ordinary Chinese consider it just normal to give or take `body pleasure’ for money. In Khanewal some Chinese engineers scuffled with police when it tried to prevent them from going to a `red-light area’. Chinese experience of symbiotic relation between political stat ability and economic progress is different from other countries. Mao Zedong travelled over 6000 kilometers in Long March to create awareness in people. kilometers to create political awareness. Mao’s struggle reflects China’s fascinating Marxist transformation.Pakistani sand-dune `leaders’ are sans Weltanschanschauung.Bolman and Deal say `Great leadership begins when a leader’s world view [Weltanschanschauung] and personal story, honed over years of experience, meet a situation that both presents challenges and opportunities’. They add, `Great leaders test and evolve their story over time, experimenting, polishing abandoning plot lines that don’t work, and re-inventing those that do. Bad stories often lead to disaster, but good ones conjure magic’ (Lee G. Bolman and Terrence E Deal, How Great Leaders Think: The Art of Reframing, 2014, Jossey-Bass, page 193). Weltanschauung is a German word which literally means `world view’. The word combines “Welt” (“world”) with “Anschauung” (“view”), which ultimately derives from the Middle High German verb schouwen (“to look at” or “to see”). It is a particular philosophy or view of life; the world views of an individual or group. It is a concept fundamental to German philosophy and epistemology and refers to a wide world perception. Additionally, it refers to the framework of ideas and beliefs forming a global description through which an individual, group or culture watches and interprets the world and interacts with it.
Study of leadership styles across swathes of literature indicates that the two traits, a `world view’ and a `story line’ are common in all business leaders (Steve Job, Penny, Eisner, Ford, and Rockefeller). Or, in political leaders like Hitler, Lenin, Stalin, Mao, and Lincoln, whether you abhor or adore them.
China’s leaders and morality is different from Pakistan’s. Pakistanis are `committed’ to Islamic orientation. It is however questionable why Islamic clauses in Pakistan’s constitution became a hostage to miniscule obscurantist minority. Those claiming to transform Pakistan could learn a lot from Mao Zedong. He first understood principles of socialism, and then travelled over 6000 kilometers to create awareness in people. Do our leaders have any vision, ideology?
Medina State: Rhetoric vs reality
There is nan additional problem in Pakistan. Venal politicians pander to people’s religious sentiments by indulging in religious rigmarole. There was talk of convertingakistan into a Medina State. Much to his chagrin, even chairman of Pakistan’s Islamic Ideology Council had to warn(October 22, 2018) medina state proponent against `romanticism’. He urged the government to set up a task force to realize a “Medina State” and suggested the formation of a task force to realize this vision., The whole of Pakistan, with wistful eyes, looks forward to fulfillment of this dream of `new Pakistan’.
We now live in a different world.
Unlike Medina, today’s Pakistan is a complex state. Shortly after his arrival at Medina, the Holy Prophet Muhammad (PBUH) built a mosque and a market place there. Like the mosque, the market place could not be privatised. There was free entry and exit of traders (akin to perfect competition under micro-economics) and caravans to the market. No monopolies, duopolies and cartels! A section of the market caravanserai was reserved for foreign traders. The whole world could sell their goods there free of any taxes.
Some clever local traders tried to take advantage of robust trade. They used to buy caravan camel loads outside the Medina (before they reached Medina), and sell it at dictated price. Islam outlawed this practice as talaqqiur rukaban (seeing faces of riders). Islam prohibited all types of future trading involving element of uncertainty (advance purchase of raw tree-fruit, fish in the pond, and so on). Islam prohibited usury (riba) in all its forms (loan giving at agreed interest taffazzul, or loan profiting due to delay naseea). When Bilal (may Allah be pleased with him) tried to exchange his coarse-quality dates with fine-quality dates the Holy Prophet forbade him. He told him to sell his dates for cash and buy better dates at prevailing price. The Prophet did not live in a 300-kanal-and-10-marla house (like Pakistan’s prime minister). Nor did he, like our numerous politicians, own assets abroad. He bequeathed a dozen swords but no precious metals (Golda Meier). Islam globalized free-market mechanism (laissez faire). It changed attitudes and avaricious mindsets. Being a dominant religion, Islam dictated its own terms of trade.
Under preamble to Pak constitution `sovereignty’ belongs to Allah Almighty, not to people themselves as under US constitution. The elected representative can wield authority within defined religious limits. Interest is outlawed under
Article 38 (f) of the Constitution of Pakistan, quoted heretofore _ Article 38 (Promotion of social and economic well-being of the people) The State shall…(f) eliminate riba
[economic interest] as early as possible. The Islamic preamble (Objectives Resolution) was inserted in draft constitution under Pakistan’s prime minister Liaquat Ali Khan’s influence. Unlike Pakistan’s most `leaders’, Liaquat Ali Khan was financially scrupulous. Aside from his honesty, Liaquat Ali Khan could not foresee he would be the first to sow seeds of religious discord. Jamsheed Marker, in his book Cover Point, observes ` charge against Liaquat was that he moved the Objectives Resolution, which declared Pakistan to be an ‘Islamic State’ (ibid. p. 33)”. Unlike the US and many other secular constitutions, the Objectives Resolution (now Preamble to 1973 Constitution) states `sovereignty belongs to Allah Almighty’. The golden words of the constitution were warped to continue an interest-based economy. We pay interest on our international loans and international transactions. Do we live in an interactive world or in an ivory tower? Isn’t Islamisation old wine in new bottle?
Follow-up to `Interest’ outlawed
The Security and Exchange Commission of Pakistan enforced Shariah Governance Regulations 2018. This regulation is follow-up to Article 38 (f) of the Constitution of Pakistan, and Senate’s resolution No. 393 (July 9, 2018) for abolition of riba (usury).
(extortionist interest) and normal interest/profit are indistinguishable. They disallow even saving bank-accounts. They point out that riba is anathema both as `addition’ (taffazzul) and due to `delay'(nas’ee) consequent upon fluctuating purchasing power.
The regulation is welcome but there are unanswered questions about Islamisation of finance in Pakistan. We pay interest on our loans and international transactions. The sheiks put their money in Western banks and earn hefty interest thereon.
Future trading is hub of modern commerce. Yet, it is forbidden under Islam. At International Islamic University, I learned that Islamic law of contract does not even allow advance contracts concerning raw fish, fruit, or anything involving element of `uncertainty’. Islam does not allow even tallaqi-ur-rukbaan (buying camel-loads of goods from caravan before they had reached Madina open-market. Holy Prophet (Peace be upon him) forbade Bilal (may Allah be pleased with him) to exchange poor-quality dates with superior-quality dates. He was advised to sell off his dates in open market for cash and then buy better-quality dates with money so earned.
Complex `interest’-based world
Gnawing reality of complex interest-based economic world has now dawned on the government. To quote a Murphy Law `nothing is as simple as it seems at first’. Pakistan needs to review the whole gamut of its economic structure (feudal lords, industrial robber barons, money launderers, and their ilk) and International Monetary Fund conditions. In his lifetime, even our Holy Prophet had to engage in commercial partnerships with the non-Muslim also.
Even Marx did not live in Utopia. He, also, constantly searched for solutions to the problems of the real world around. Disgusted at the simplistic interpretations of his ideas, he cried in boutade: “If this is Marxism, what is certain is that I am not a Marxist”. Keynese offered panacea of deficit financing with concomitant inflation to swerve 1930-Depression unemployment and stagnation. He also reacted to mis-interpretation of his ideas, saying `I am not a Keynesian’.
Keynesian theories preceded a lot of discussion about Gold Exchange Standard, stable prices. To create more money, deficit financing (paper money) was resorted to. As a result the hydra-headed monster of inflation was unleashed. Keynes believed inflation was a `short run phenomenon typical of a full- employment stagnant economy’. But, it became a long run phenomenon. Keynes postulated `With perfectly free competition, there will always be a strong tendency for wage relates to be so related to demand that everyone is employed at level of full employment’. When Keynes was asked about persistence of inflation (too much money chasing too few goods), he replied `In the long run we are all dead’. Post-Keynesian economists coined the term `stagflation’ to explain the phenomenon. With visible massive joblessness, Pakistan is far from a full-employment economy. The paltry household income has to bear the brunt of forced reduction in purchasing power due to rising price level, or falling rupee value.
We adopted floated exchange rate that ballooned our debt burden. No economist has ever applied his mind to effect, positive or negative, of international debt burden on Pakistan economy. No-one ever visualized even the idea of `odious debts’.
Pak government discourages savings
Keynes postulated savings are equal to investment. But, Pakistan discourage savings and encourage consumerism by reducing profit on saving deposits, and increasing taxes on small savings. Locke and others say government can’t tax without taxpayer’s consent. In Pakistan, the govt. picks people’s pockets through withholding taxes and reduction in National Saving Schemes profits. Even unissued bonds lying in Pakistan’s State Bank vaults are included in each draw. The prizes on such bonds are devoured by State Bank, a body corporate, without buying them. Pakistan’s hidden economy is more than the monetized one. It needs to evolve politico-religious milieu and macro-economic theories that suit our country best. It should promote savings while blocking illegal cash flows by introducing magnetic-card transactions in everyday life.
Pakistan’s burgeoning interest-based debt burden
Pakistan’s debts not payable being `odious’?
Pakistan’s debt burden has a political tinge. For joining anti-Soviet-Union alliances (South-East Asian Treaty Organisation and Central Treaty Organisation), the USA rewarded Pakistan by showering grants on Pakistan. The grants evaporated into streams of low-interest loan which ballooned as Pakistan complied with forced devaluations or adopted floating exchange rate. Soon, the donors forgot Pakistan’s contribution to break-up of the `Soviet Union’. They used coalition support funds and our debt-servicing liability as `do more’ mantra levers.
Apparently, all Pakistani debts are odious as they were thrust upon praetorian regimes to bring them within anti-Communist (South East Asian Treaty Organisation, Central Treaty Organisation) or anti-`terrorist’ fold. To avoid unilateral refusal of a country to repay odious debts, UN Security Council should ex ante [or ex post] declare which debts are `odious’ (Jayachandaran and Kremer, 2004). Alternatively, the USA should itself write off our `bad’ debts.
But Pakistan and its adversaries are entrapped in a prisoner’s dilemma. The dilemma explains why two completely rational players might not cooperate, even if it appears that it is in their best interests to do so. .The ` prisoners’ dilemma’ was developed by RAND Corporation scientists Merrill Flood and Melvin Dresher and was formalized by Albert W. Tucker, a Princeton mathematician.
No demand raised for forgiveness of `odious debts
Several IMF and US state department delegations visited Pakistan. But, Pakistan could not tell them point-blank about non-liability to service politically-stringed debts. The government’s dilemma in Pakistan is that defence and anti-terrorism outlays (26 per cent) plus debt-service charges leave little in national kitty for welfare. Solution lies in debt forgiveness by donors (James K. Boyce and Madakene O’Donnell(eds.), Peace and the Public Purse.2008. New Delhi. Viva Books p, 251).
A fetter to Pakistan’s rapid economic growth is debate between radical Islamists (fundamentalists) and liberal reformers The liberals, like Farag Fuda and Abu Zayd (Egypt), read the sources of Islamic sharia in terms of time and place (historical relativism). They advocate reading holy texts in our own terms, interpreting them in accordance with spirit and intentions. The radials (conservatives) regarded the liberals as heretics or apostates. Farag was murdered in 1992 and Abu-Zayd exiled in following years.
The conservatives say `Islam is complete’. The man in the street sees no undisputed Islamic model in Saudi Arabia, Iran, Pakistan or anywhere. We `circumcised’ some banking, civil and criminal laws to show case them as Islamic. For instance, we introduced PLS, modarba, musharika. Practically, there was no tangible impact on society, economy or polity. In international aid and trade, we conformed to secular principles. We continued to interest-based loans and pay debt service. Islamic punishments, introduced by Ziaul Haq had questionable impact. Sami Zubaida points out in his book Law and Power in the Islamic World (p. 224), “It is ironic that so-called Islamic punishments are described as `medieval’, when in fact, medieval jurists and judges showed great restraint in their application while modern dictators flaunt them as a religious legitimacy”.
The Islamisation of laws is regarded by critics as hypocritical. Pakistanis have a long list of Constitutional rights. But, a proviso makes them non-enforceable through courts. Pakistan’s qanun-shahadat (evidence law) defines qualifications of a witness (tazkia-tus-shahood). But, it softens its Palladian to accept any witness if the ideal witness is not available. The less said about sadiq and ameen clauses, the better. Under these clauses, even a three time priminister was sacked by Pakistan’s Supreme Court.
A judge has to decide according to law not according to his conscience and divine authority. An example is ban on gambling like circuses by one judge. The decision was turned down on appeal as it is Pakistan’s Electronic Media Regulatory Authority, not the court to adjudicate such matter.
Democracy has an inherent flaw. To succeed it needs a handful of technocrTS. They steer the country around corners. The US democracy will prevail as it Has in the past. But democracy in Pakistan is in peril as the politicians have no world view.
Pakistan could not emerge as an Asian tiger because of indecision about what system to follow. The vested interests, particularly religious obscurantists, often smother dissent from so called enlightened moderators. Rampant sectarianism in Pakistan with concomitant effects on economy is an offshoot of lacunae in religious interpretations by vested interests.
Pakistan has abolished interest (riba) in accordance with its fundamental law. Yet its banking sector and international transctions are interest based.
Let Pakistan face the truth. It needs to evolve and show case a politico-economic model of Islam that is compatible with international practices. Or else, dispense with hypocritical patchwork, and go for secularist IMF model.
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