Pakistan, ‘the land of rising poverty?

AYESHA CHUNDRIGAR
ARTICLE (September 22 2008): As globalisation makes a head-on collision with greed, we strive harder and
harder to incorporate First-World mechanisms to meet our Third World desires. We try to build ourselves
little First World prototypes in the spaces of our homes and jobs.

Bright streetlights [if and when there is electricity], shops stocking fancy stuff and restaurants that adorn our
otherwise dim roads, seem enough to blind one from the barefooted four-year-old boy rummaging through
our garbage or the eyeballs-rolled-back-in-the-head drug addict getting the cold sweats while carrying a
malnourished baby girl on his shoulder begging, to satisfy his crave for his addiction or to feed the little girl,
we cannot know. Day after day, the only visible now common sight all around us in Pakistan is the rich
getting richer and the poor getting poorer.

This dilemma of the poor getting poorer and the hungry getting hungrier [so desperate is the hunger and
poverty that for some suicides seemed the only alternative], views were sought from four eminent
personalities renown in their fields.

On asking Mr Kaiser Bengali, a noted economist, as to the economic conditions prevailing at the moment in
Pakistan, said that claims regarding poverty alleviation touted during Musharraf/Shaukat Aziz tenure, the
claimed decrease in the poverty rate from 33% to 23%, was not based on real-time happenings and figures,
but was rather done by systematic manipulation of statistical data. He said that for any economy to achieve
a 10% decline in poverty levels in such a short period, is nothing short of a miracle. He further said that due
to lack of planning in the agricultural sector during the previous regime, a severe shortage of food is being
witnessed, coupled with manifold increase in their prices. These factors have created more poverty and
hunger, with the result that an average family can barely manage two meals a day.

On enquiring from the renowned Mr Abdul Sattar Edhi and Bilquis Edhi, they stated poverty is increasing at
a phenomenal rate: 40% of our population is living at the edge of the poverty levels while out of this 15% are
so poor that they cannot even afford to have one meal a day.

Ms Shazia Marri, Minister for Information, Government of Sindh, said about 70% of the population in rural
areas was living below the poverty line. Poor agricultural growth was witnessed because no help was
extended to the poor small farmers; neither water courses nor any loans from agricultural banks were given
to them. She further said when calamities hit rural areas, the small farmer lost his crop thereby decreasing
his spending power making survival difficult which, in cases, made him migrate to cities to look for a
livelihood. This added to urbanisation, where facilities were already stretched to the limit.

In spite of the continuous economic crisis, what the so-called elite did to ease their guilty conscience was to
declare blame on poor government policies or on the poor themselves for not making efforts to improve their
lot. What their elitist brains failed to comprehend is the fact that there is no social and economic mobility in
Jinnah’s young country. Putting government policies to a side for now, one can question why the 5-year-old
girl wearing clothes two sizes smaller than her and selling flowers does not go to school or why an entire
family of eight lives in a cramped jhuggi.

On the topic of the bleak human condition of the poverty-stricken, Mr Kaiser Bengali said that economic
woes are faced by those who do not own any assets; land, livestock, education or a house. They own
nothing more beyond what we can see on them. Those who manage to study till matric or in rare cases up
to intermediate in government schools still did not get an increase in share of jobs as these are usually given
or rather taken away by influential parents whose children have studied in private schools. These are the
things that define who is to be rich and who is to be poor.

There is education apartheid in Pakistan. Presently, either children go to Urdu medium schools or to
madrassas or not at all, thus rendering them unqualified for jobs that have English as a requirement
resulting in immobility of the poor to better their class. More than 80% of the country’s revenues are
generated by indirect taxes, so the burden is on the poor; while only 20% of taxes are collected from rich.
One can only stretch their imagination that far to expect anything other than poverty. There is no transfer of
assets, no shift in tax policies and no structural change.
Additionally, Mr Bengali stated that in the past years hardly any GDP growth has been seen in the
agricultural sector. The only growth witnessed has been in the banking sector. The average growth rate in
the banking sector has been 13% in the last 8 years while in the agricultural sector the average growth is
3%. In 4 out of the last 8 years, the agricultural sector has had negative growth (decline). Comparatively, the
banking sector has had a growth rate of 30% in 2 out of the last 8 years and witnessed a 40% increase in
another year.

Mr Edhi stated that nothing in this country is meant for the poverty-stricken; even drinking water, when
available, is dirty and is the main cause of diseases which can be fatal. There is no electricity in government
schools, no teachers and thus no standard of education. Ms Bilquis Edhi said that when politicians come into
power, they simply make themselves rich instead of the country. [Kaiser Bengali, in this regard, commented
that Generals and Brigadiers have enriched themselves more than what any politician can dream of].
Additionally, Mr Edhi revealed the concept of the beggar mafia who have systematically turned begging into
a well-paid job. The average beggar, according to Mr Edhi, makes about RS 400 a day; he pointed out that if
the rich constantly give money to beggars to ease their own guilty conscience, begging will never end. Why
would one want to work at a job when you can get money for free? The Edhis also pointed out the fact that
the government has to take the first step to abolish the art of begging in the country and went further on to
say that our country is overridden by jahalat, poverty, laziness and no family planning.

Ms Shazia Marri was of the view that the cycle of progress in our country did not match the demands of the
people. The basic issue of an unstable economic environment in Pakistan discouraged investors from
putting money in any field of work in the country.

Additionally, not much international aid was forthcoming in the past years because the government was not
a peoples’ government but was of an authoritarian nature, thus did not feel accountable to people. Although,
several donations come internationally, it was the government’s job to make sure the aid reaches the
deserving people. However, due to non-existence of an adequate distribution system, corruption flourished
and the donated amounts never reached the deserving or aided the cause for which it was given.

Ms. Marri further said that the donor agencies should be able to hold the government accountable with the
amount provided for a specific cause/project. However that remained unchecked. There has been a bad
precedent, thus, there is no check on the donations received and no specific performance reports were sent
to the donors. She further stated that corruption is phenomenal; if donor agencies want to give, then the
government of that country has to be approachable and feel responsible towards the people.

Ms Marri also pointed out that there was lack of opportunity for rural people in urban areas as the job market
is more competitive. The previous government had hired teachers without adequate qualifications, thereby
further reducing the standard of education imparted in government schools.

To overcome these serious social and economic problems, Mr Kaiser Bengali stated that the immediate step
the government has taken is by starting the Benazir Income Support programme; RS 1000/- each to be
given to more than 3 million families so those earning 5000 rupees a month will have a 20% increase in
purchasing power.

On their part, to help feed the poor and hungry, Edhis have opened 325 centres that provide free food to
more than 3 million people every day. Ms. Marri stated that women in rural areas who are either old or
widowed, needed financial support to survive. However, the previous government did not have any concept
of a welfare system which is something Shaheed Mohtarma Benazir Bhutto wanted to develop for the
people.

She said that the government was now ready to emancipate women, particularly in the rural areas, and
would make sure that they are given their share in agricultural land-ownership; 15 to 18 acres of land will be
given to women individually and other programmes would be developed to assist them earn a decent
livelihood. The introduction of agricultural loans, that will be easy to pay off, and basic agricultural inputs
such as water and seeds will be made available.

Men will also be considered for allotment of agricultural land, but the main focus will be on women. She said
that the construction of dams for the province will be planned and rain forests will be preserved. The
government will also provide teachers with academic programmes to improve the quality and standard of
education in the country. Unlike the previous regime, the government is treating the poverty crisis as a
serious issue for the social and economic strengthening of majority of the provinces. Further, Ms. Marri said
that the government will now be accountable to the Pakistani people unlike the authoritarian regime of
General Zia-ul-Haq and Perfuse Musharraf.

With Mr Asif Ali Zardari having been elected President of Pakistan, the onus of providing good, strong and
clean governance rests with him. Expectations are running high with his party holding the reins of power. Mr
Zardari can order immediate steps be taken to alleviate the sufferings of the poor and hapless, providing
them succour and opportunities to better their lot.

(The writer is an intern at Business Recorder and is currently studying English Literature and Philosophy at
The University of Hull, UK.)

F
Financial crisis casts cloud over UN poverty
meeting
N
New york: Heads of state, private-sector leaders and development
agencies will this week assess the global fight against poverty, where
progress is threatened by upheaval in global markets and soaring food
prices.

The meeting in New York marks the midway point since global leaders
first signed on to the Millennium Development Goals (MDGs) in 2000,
which aim to halve hunger and poverty by 2015.

The goals have been chosen by UN Secretary-General Ban Ki-moon as

the keynote theme of this year’s annual General Assembly gathering of
leaders of the 192 UN member states.

Events start with a look at development needs in Africa, where poverty

is still widespread but faster economic growth is opening new
investment opportunities. On Thursday, Ban will lead a meeting to
gauge overall progress on reaching the goals.

“It is totally unacceptable that in 2008 when we have the knowledge

and resources to wipe poverty off the face of the globe, so many
children still die of preventable diseases and millions miss a chance to
go to school,” British Prime Minister Gordon Brown said through a
spokesman.

He called the New York meeting “a vital opportunity to get the world
back on track in the campaign against poverty, illiteracy and disease,
and the beginning of a unique coalition of forces, government, the
private sector, NGOs and faith.”
This year sees major efforts from the private sector, including private
philanthropic foundations, to support the fight against poverty, with
billions of dollars in commitments for malaria, education, health and
food projects expected.

On the fringes of the UN debate, more than 130 company CEOs and
over 50 current and former heads of state, as well as celebrities, will
participate in the Clinton Global Initiative led by former US President
Bill Clinton.

With this new coalition of forces in the fight against poverty, illiteracy
and disease, new lenders like China, India, Brazil and Arab states are
playing a greater role.

Financial turmoil: But there are concerns the financial turmoil rocking
Wall Street firms and global markets could undo progress made in
tackling poverty and disease, especially if major donors like the United
States fall further back on their aid promises to poor countries, already
battling higher energy and food costs.

The World Bank has warned that 100 million people could be pushed
deeper into poverty unless there is a global response to tackle the
rising cost of food and oil. When the MDGs were launched, oil traded
around $10 a barrel and is now at over $100 a barrel.

“Leaders must not just reissue empty promises, with their fingers
crossed behind their backs,” said Alison Woodhead, spokeswoman for
development agency Oxfam. “This is a poverty emergency that
requires exactly the same attention and response as the financial crisis
grabbing the headlines.”

Woodhead said an additional $150 billion a year is needed by 2010 to

meet all of the poverty goals.

“Given the turmoil in financial markets, rich countries will be tempted

to tighten their belts. But we must do more, not less, if we are to
prevent the real danger that progress on the MDGs will be wiped out.”

A recent UN report pointed to strong and sustained progress in

reducing extreme poverty, but new estimates by the World Bank show
the number of poor in the developing world is larger than previously
thought at 1.4 billion people.
The estimates confirm that between 1990 and 2005 the number of
poor people living in extreme poverty fell by over 400 million, and the
poverty rate is likely to fall by the targeted 50 percent below the 1990
rate by 2015.

Still, the World Bank has also said that while fast-growing countries
like China have seen poverty rates drop, progress has been less
pronounced in Africa. reuters