http://www.dailytimes.com.pk/default.asp?page=2010\01\21\story_21-1-2010_pg3_5
Thursday, January 21, 2010 PENSIEVE: An economic conspiracy theory -Farrukh Khan Pitafi When a democratic set up emerges, all friends of Pakistan vanish without a trace and the country's only option remains to approach the International Monetary Fund (IMF). When the generals are holding public office, we witness a period of economic calm Poverty is a killer. Before killing you it kills your social senses. It leaves you alone to live with your basest instincts and often waylays any sense of purpose in life. I know there are many who have managed to escape the negative influences of poverty despite being dirt poor. But you should admire their courage and resolution rather than misunderstanding poverty. While everyone knows these basic facts of life, no one seriously does anything to curb this menace. Consequently, despite repeated promises of the rulers, the poverty rate in the Islamic republic is always rising. Even though I do not believe in many conspiracy theories I am often left to wonder why the military rulers of this country ever fail to alleviate poverty here, especially because during their reign dollars keep pouring in from everywhere. Searching for the elusive answer I am often seized by paranoia. Could it be a plot? Are we given money only on the sole condition that it will never be invested in alleviating poverty? Unfortunately John Perkins' book, Confession of an Economic Hit Man, does not help to root out this paranoia. It tells us a grim tale of deceit in which poor countries are robbed of their resources and future by the economic hit men (EHMs). Every time I visit Islamabad I come across someone who vociferously quotes the contents of the book to me. Perkins goes to the extent of contending that the leaders of Ecuador, President Jaime Roldós Aguilera and Panama, General Omar Torrijos, were assassinated by US agents for opposing the interests of the owners of their countries' foreign debt. If Pakistan was ever hit by such designs there is insufficient data to substantiate such occurrence. All I know is that the first prime minister of this country was shot in public and another hanged by his own army and judiciary. But there is more. Is it not surprising that during the reign of the dictators the country is inundated with foreign aid and funds that are not even audited? However, when a democratic set up emerges, all friends of Pakistan vanish without a trace and the country's only option remains to approach the International Monetary Fund (IMF). When the generals are holding public office, we witness a period of economic calm. The moment they leave office we realise how fake that sense of calm was. The country is again plunged into financial chaos. Again while we take special delight in calling politicians corrupt, the unexplained wealth of the sons of generalissimos never captures our attention. Consequently, when the civilian rulers approach the country's friends all over the world for assistance, they are turned down and declared untrustworthy, inept and often corrupt. The only solace comes from the much-feared IMF. The IMF's gruelling conditions, which are apparently meant to improve the country's infrastructure, leave the country's poor poorer still. The civilian government succeeding the dictators (in the last three cases led by the People's Party) as a result grows unpopular and is finally forced out of power. An interesting case in this context is that of Pervez Musharraf's rule. For a little short of nine years Musharraf was treated by the West as the country's sole spokesman. We were repeatedly told how big investors are coming to Pakistan with their humungous projects. But curiously, no big industrial units were installed in the country. What we witnessed was an obsession with the stock market, property development, introducing new cellular companies and some attempts at establishing call centres. If the country was so obsessed with the cellular companies, why did we not see a boom in the cellular phone sets manufacturing? Likewise, we did not invest in car manufacturing yet banks were roped into leasing out cars. This offer brought an average household under debt and cluttered the roads of the metropolis too. And for someone who claimed to be futuristic and rational in outlook, no mass transit system was introduced in any of the country's metropolitan centres. And then enters the democratic change. The moving spirit of the campaign against the dictatorial regime was extinguished with the assassination of Benazir Bhutto. A divided house emerged with Asif Ali Zardari as the ultimate decision maker. There were already ample allegations against Mr Zardari, who took decisions in government formation gingerly. The new government was formed under Yousuf Raza Gilani in the presence of Pervez Musharraf. All of a sudden the country was left with little financial breathing space and even the experienced hands from Musharraf's rule did not offer any help. The new government, which had arrived in power raising populist slogans, was forced to shoot itself in the foot by accepting the IMF's prescription. Later, Musharraf was shown the door and Zardari assumed the post of the president. I believe that his initial attempt at staying out of power was motivated by his desire to keep the stigma attached to him away from the government, yet it proved to be of no use. Even when the new government managed to obtain American assistance in the shape of the Kerry-Lugar bill, which offered an unprecedented amount to a democratic set up, the right-wingers and Musharraf's supporters were the first to raise a hue and cry. The most prominent feature of the current set up is the never ending energy crisis. First we witnessed the repeated and prolonged power outages, and then emerged the natural gas shortage. While castigating the present government no one tries to relent and reflect that a huge dent to our natural resources was caused by the leasing out of CNG-fitted cars by the previous regime, nor its failure to invest substantially in the power generation sector. Clueless, the new government tried to introduce rental power plants (RPPs). And once again we did smell a rat. The issue was referred to foreign auditors and the leaked audit report from the Asian Development Bank (ADB) seems to discourage the venture. We are told that while the RPPs would end load shedding in one year, without them the government can bridge the power gap in two years. So dear readers, we are told that instead of an instant solution, or waiting for one year, we should suffer for another two years. What happens to businesses here, how we all suffer and how demoralised society feels is none of their damned business. I am seriously worried today. I believe that our economy is showing all signs peculiar to a dying state. And no wonder intellectuals around the world are already discussing my country in the past tense. What happens to the country's nuclear arsenal is everyone's concern but what happens to 180 million citizens of this country is no one's business. And that is why I believe our western benefactors do not want democratic governments in Pakistan. Despite all lip service paid to the democratic cause, we are repeatedly forced towards the precipice. Now do you want me not to believe in any conspiracy theories and stop reading Perkins' new book? The writer is an independent columnist and a talk show host. He can be reached at [email protected] [Non-text portions of this message have been removed]
