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 Has democracy become outdated in modern age?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.