Poverty and Inequality in Pakistan

Posted on October 23, 2008
Filed Under >Raza Rumi, Society
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Raza Rumi

As I sipped the tenderly brewed coffee facing the lush green golf course of a relatively new Lahore Country Club, the new reality of Pakistan became a little clearer. The sprawling premises of the club were a preserve of the Railways Department until the inefficient Pakistan Railways could not manage it and doled it to the new, oligarchic big business of Pakistan. Much ado was made when the land owned by the Railways was privatised and questionable deals were transacted in that moderately unenlightened era. Nothing came out of the public questioning and today a lavish country club, far removed from its downmarket environs, has sprung out for the affluent and the upwardly-mobile classes of Lahore and Punjab.

The classic barriers to entry created by the cliques that lord over Pakistan’s elite clubs is being undone. Pay a handsome fee now (way over a million rupees) and you are a member to this new “club” built on the ashes of the Raj steelframe, albeit, reminding one of the nasty remarks of Churchill on how the brown, rapacious Rajas would appropriate the space created by the wise and just colonists. As my host elaborated on the entry procedures to Lahore’s richy-rich club, I could not help but remember the compensation to a suicide bomber that has also increased over the years and now hovers between one to two million rupees. A grossly-overlooked fact is that the grinding poverty in the pockets of Pakistan, seemingly unaffected by the consumerist prosperity, is the key to our current turmoil and violence.

At the end of the day, the ideological battles, the foreign interventions and incursions aside, it is all about inequality and the fact that the poverty is now a mushrooming social reality. Apathy to the shameful criminal inequities is another visible trend. Take the new avatars of Pakistan – the media hosts at the leading television channels: the rants and ramblings overly obsess with ideology, of myopia and inward looking gambles. Let Pakistan follow Iran without a drop of gasoline; or let it be a Vietnam in the making forgetting that Pakistan’s heterogeneity and complexity defies even the best of sociologists and policy experts. Nowhere is poverty, especially that of the tribal belt, given the importance that it should be.

And when the international do-gooders want to do something about poverty they come up with packages that have been tried and tested across the globe with dismal results. How can piecemeal advisory aid impact in a gnawing and in-your-face policy vacuum? What happened to the FATA electoral reforms; plans to introduce local self-governance in the tribal areas; and the correction of draconian legal regime meant to advance the great game and colonialism? Above all, the much touted second and now third prong of FATA policy, namely development, employment and economic opportunity. The dehumanising poverty that facilitates selling the lives of young men in the name of esoteric jihad is nothing but years and years of exploitation and now a manifestation of unbearable poverty.

The truth is that Pakistan’s elites – both the political and the unelected – and their purported watchdogs are fairly oblivious to the fundamental reality of how the consumerist culture and emergence of Richistans in a sea of squalor and violence are aggravating deprivation, dispossession and hunger.

Never before has a predominantly agricultural country sbeen food-deficient and a victim of blatant capitalist speculation. Monopolies are not new phenomenon; however, cartels control oil, cement and all other elements of economic activity and survival. Yet, these are issues skirted around and a hapless civilian government, a product and victim of both the powerful elites and their machinations is the prime target of media critique. The corporate media not unlike India and other iniquitous societies is by and large indifferent to such monopolies and the capitalist machinations; much of its solution for inflation is executive control of prices.

The emergence of such Richistans is not restricted to Pakistan alone. Globalisation has to sell fabulous, vulgar wealth as a spectator sport and the ultimate marker of achievement. And the world’s war and oil industry have to fuel this all-pervasive greed.

True, the skewed growth during the last eight years has enabled many people to gate-crash into the world of elitism and create newer island-Richistans. The question is, at what and whose expense? Income and resource distribution have worsened and without a plan for redistribution there is no way to achieve peace, security and sustained progress in Pakistan. Sooner or later, the surrounding pooristans, tribalistans, conflictistans, violenceistans will gobble up these Richistans.

Estimates suggest that food price inflation have led to significant increase in Pakistani poverty levels. 20 percent inflation in food prices theoretically results in an 8 percent increase in the poverty head count. And, the official estimates suggest that the galloping inflation is above 30 percent. We are heading towards a situation where 50 percent of the population will be poor. Needless to mention, this situation ought to be the foremost priority of the State and its international partners. Domestic rhetoric on ideology and the global rants on terror can only destabilise Pakistan further that is in no one’s interest. The ruling party needs to revisit its social agenda and reclaim its original redistributive ethos. This is the time for initiating land reform; of increasing access of the poor to productive resources and undoing the structural roots of poverty. These policy priorities must drive the stabilisation packages proposed by all and sundry. The urgency of the storm, which has brewed for long time, needs to be recognised. It is already thumping the fragile contours of Pakistani society.

Raza Rumi is a writer. He blogs at www.razarumi.com and edits a cyber magazine, Pak Tea House, and the Lahore Nama blog-zine.

Photo Credits: Title photo is courtesy of Aamer Mukhtar at Flickr.com

26 responses to “Poverty and Inequality in Pakistan”

  1. Zecchetti says:

    If you want to know the root cause of today’s poverty watch the awesome new documentary Zeitgeist Addendum right here: http://www.zeitgeistmovie.com/

    Want to know why 1% of the world’s population controls 40% of the world’s wealth? Why the third world is starving and dying of curable diseases, yet the governments have no problem paying hundreds of billions of $s to save banks???

    Watch the documentary above. Go on. Watch at least half an hour of it if you think you’re busy.

    Watch it now.

  2. Tina says:

    Riaz, China is (still) a profoundly communist country with tightly controlled factory zones–none of which are small businesses, which no individual in China is able to own. Find out something about China before you make comments about what a capitalist paradise it is.

    America is suffering for its allegiance to predatory capitalism, now that Americans have eaten their way through the incredible natural resources of the country. America’s poor became prosperous thanks to New Deal socialism, which has kept the wolf from the door since the 1930s (a time when one of the top causes of death for children and the elderly was starvation).

    Prosperous Europe has strong ties to socialism in various degrees.

    The most perfect free market in the world right now is—Somalia. It’s as economically Darwinist as they come. No government controls there at all!

    Think it over friends :)

  3. Viqar Minai says:

    @Mai,
    Bloodbath revolutions have a logic (or, rather, non-logic) of their own. If it comes to that, it will be a non-issue as to whether the country can afford it. Basically, when such a thing happens, the aim is no longer to fix things. Everything is burnt down, and a new order has to emerge from the ashes.

    @Riaz,

    From Lenin to Putin, from Mao to Deng, there is a distance of many many decades. In a context where the concepts of merit, honesty, and hard work do not exist; where dishonesty, corruption, and greed for a quick buck at any cost (and at anyone’s expense) are rampant, incentivizing enterpreneurship is going to achieve diddly squat in terms of uplifting the society. As long as we are who we are, morally, ethically, and spiritually corrupt, always looking for excuses/explanations and who to blame, always seeking a bailout from somewhere else – anywhere else – with the begging bowl stretched out, unwilling to squarely face – and face down – a situation, any academic exercises aren’t worth the ink that will be wasted on penning the words.

    @Raza,
    Because, unlike us whose destiny it is to eternally lament why this or that happens to us when it doesn’t happen to others, there will always be some dirt poor, unwashed, and uncouth, who would be willing to roll up their sleeves and resist with all they have got – no matter how meagre it is. If you think you can do something about it, go ahead and do it. You will find out soon enough.

    On second thought , don’t bother. You’ll NEVER find out.

    @Manzoor
    “hae jurm-e za’eefi ki saza marG-e mafaajaat”.

  4. Riaz Haq says:

    An average American or an average Chinese citizen is much better off than an average Pakistani. Why is that? Because both nations provide incentives to the most productive members of society: the entrepreneur, the small business owner, the investor and the highly-educated professional. If they took away the earnings of the most productive and gave them to the least productive, what incentive would be there for any one to take risks, work hard and produce more?

    If we don’t grow the pie, we will just be spreading poverty instead of spreading wealth.

    Unless people in Pakistan get this basic reality of economic activity and incentives, there will no more wealth creation, no new jobs for a rapidly growing population and no hope to lift any one out of poverty. The feudal-tribal system will continue to reign supreme in an impoverished nation with a massive population.

  5. Tina says:

    Well, Raza I would like you to explain to me how the very rich “earn” their money.

    They mostly, statistically speaking, “earn” it by being born with it.

    They can also “earn” it through corruption.

    They “earn” it by bilking the poor and the middle classes.

    They “earn” it through advantageous connections, or simply by being a part of that society.

    Everybody’s labor is worth just so much and nobody’s labor is worth millions or billions of dollars. Nobody’s.

    The rich engage in these arguments (“we create jobs!”) only for their own self benefit–“if the rich have managed to corner all the money they can burn it while people starve if they want to”–you know what? No they can’t, because that makes them murderers. They still have their duties as citizens and that includes making a fair contribution, through taxes, to the community that they exploited to become rich in the first place (nobody becomes rich in a vacuum–the money has to come from somewhere. The workers earn money for Richie Rich at their own expense–because he takes some of the worth of their labor, that’s why he hires them-and often end up giving him even more through buying his products. So, workers can have some of their hard earned wages returned to them through taxes or they can just give it all to Richie Rich. Gee, tough choice).

    And you know what? Even after very heavy taxation the rich still have plenty to burn. So don’t fear your pretty little head too much. Even after taxes you’ll still have enough for your villa, your whiskey, your cocaine, and your underage girls. Don’t worry.

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