• Perpetual disparities
  The Dawn Review, May 17, 2007

• TRPAP Overcoming Poverty
  Spotlight, May 04-10, 2007

• SEZs turning into land scam
  The Economic Times, May 04, 2007

 In Media Archive...

Perpetual disparities
The Dawn Review, May 17, 2007

By Moniza Inam

Last week the prime minister and other government functionaries made tall claims about having reduced poverty and Pakistan being set to achieve all of the eight-millennium development goals (MDGs), making great strides in improving the lives of the teeming millions.

The claim, however, has little to show in terms of bringing any actual improvement in the lives of the people at the grass roots level. Donor agencies, independent economists and civil society organisations have challenged the government assessment. They say it is based on manipulation of statistics by the ministries concerned and that poverty in some cases and the rich-poor divide have increased in the last seven years.

Though the government claims to have brought down the poverty level (international monetary value of caloric poverty is $0.40 US or Rs24 per day) to 23.9 per cent from over 30 per cent. According to the World Bank it is 28.3 per cent; the UNDP estimates it to be 25.7 per cent. What meets the eye, however, is a spectacle of rising poverty.

There seem to be more and more people trapped in the vicious cycle of hunger, illiteracy, deprivation and joblessness. For millions breaking the glass ceiling and succeeding in life seems impossible; the poor are pitted against a system with its manipulative devices aimed at them.

In the case of Pakistan, there is the twin issue of inequality attached with poverty. According to the Pakistan Economic Survey 2006-07, the gap between haves and have-nots has increased in the period between 2001 and 2005. The ratio of the income of the richest 20 per cent and the poorest 20 per cent increased from 3.76 to 4.15. According to official sources, Gini Coefficient –– an effective device of calculating income inequality globally- is changed from 0.2752 to 0.2976; that is, for the worse.

Although Pakistan has been able to sustain an impressive GDP growth rate since 2003, averaging nearly six per cent per annum, it has not improved its income distribution. The income gap between different classes has increased and while the poor may have not become poorer across the board, the rich have become considerably richer. Conspicuous by its absence remains a universal benchmark to define the rich.

Overall, economists say the rich have become up to 57 times richer than the very poor and 47 times more affluent than the not-so-poor. The super rich only number 200,000, or 50,000 households, and account for only 0.13 per cent of the population. This scenario has led to a situation where islands of prosperity exist in an ocean of poverty.

Disparity generates antagonism in those who have been left behind, manifesting in many forms. It generates a sense of injustice and resentment and breeds social and political instability, which can lead to violence in society. Unjust social orders in turn lose their political viability. Indifferent attitudes of the very rich towards rising economic disparity are creating what economists call ‘inequality traps’. These can persist for generations, unless the state intervenes to reduce their grip on the affected sections of society. Removal of such ‘traps’ is necessary to accelerate the pace of development -–– one that includes all and not benefit just the privileged few.

Without addressing these issues, a social order can only be destined for being backward and politically unstable. With a track record of weak political and social institutions, lack of social welfare, good governance, quality education for all and an efficient legal system, conditions in Pakistan are getting riper for social discontent and turbulence.

A dangerous effect of rising inequality is the prevalence of psychiatric disorders, such as depression, anxiety and stress which can lead to debilitating illnesses like neurosis and psychosis. Exasperating living conditions have been leading many to commit suicide in recent years.

Terrorism is also connected with the phenomenon in one way or the other. Educated, unemployed youth, madressah graduates with no marketable skills and uneducated people who can’t find respectable means of earning a livelihood can become an easy prey for terrorist masterminds. They exploit the feelings of dejection, anger and annoyance and use their targets for ulterior motives.

It can be argued that government policies have failed to address the problems at hand. There has been much emphasis laid on generating macro-economic activity, achieving sustainable economic growth, a trickle down effect and building an export economy, but the people at large feel they have not been involved in such activities. In real life the impact of government policy is barely visible. Desired results in the form of changing the lives of the people trapped in the vicious cycle of economic marginalisation have remained elusive.

Those who advocate that an economic growth strategy should be based on ‘growth distribution’ make more sense in a developing country like Pakistan. Proponents of people-centred development keep reminding us that economic growth should be a means for human development and not an end in itself. What is happening here is economic development which is taking place with a lopsided distribution of wealth facilitated by the state, which is in return resulting in widening the disparity gap.

This must stop in order to bridge the gulf between the very rich and the extremely poor. Failing to do so can risk disintegrating the basic social fibre of society.

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TRPAP Overcoming Poverty
Spotlight, May 4-10, 2007

By Keshab Poudel

Yog Tamang, 36, a resident of Goljung Village Development Committee of Rasuwa district, 100 miles north of capital Kathmandu, had never realized that one day he will host tourists in his home and make money.

This became true in his life as Yog has already made some money from the tourists. After building basic infrastructures like drinking water, stone-paved road and improvement of their home and hygienic conditions, villagers of Goljung like Yog Tamang are now in a position to provide shelter to a couple of tourists under a home stay program.

In the last one year, Tamang has already hosted a dozen of tourists in his home generating cash income of about Rs.8000 (USD 125). "Along with shelter, I offered tourists Dal bhat (rice and pulse) and vegetable in lunch and soybean and corn and milk for breakfast," said Tamang who charges up to Rs.400 (less than $6) a day for all meals and shelter.

With per capita income below one US dollar a day, the residents of northern remote parts of Rasuwa like Yog Tamang have little option for improvement of their livelihood. As the terrain is steep and weather is unfavorable for agriculture, tourism is an easy way to generate income. Although annually a large number of tourists visit Langtang areas for trekking, the villages like Goljung, Getlang and Chillime, which have many important sites to see hardly get any tourist. According to Tourist Information Center, 4000 tourists visited the area last year.

“Our programme is highly successful in Rasuwa district. I am very happy that all eight political parties' leaders hailed our programme. This indicates success of programme which brings many changes in the area. We have developed Tamang Heritage Trail as a new product where tourism will benefit the poor communities of the district," said Rabijung Pandey, National Programme Manager of TRPAP. "The programme helped to build the rural infrastructures, institutions mobilising local communities for the benefits of poor,” said Pandey.

Although Trishuli Somdang highway linked these villages more than two decades ago and tourists started to come to Langtang on trekking, residents of northern parts of Rasuwa had not seen any change in their livelihood. Surviving on a subsistence-based farming and living in most unhygienic place, their per capita is among the lowest in the region. According to District Development Committee Rasuwa, four northern remote villages Getlang, Goljung, Chillime, Briddim and Thuman are most underdeveloped parts of the district.

“Though being the nearest Himalayan district from the capital city Kathmandu and linked by the national highway, the living standard of the people of the district is very miserable witnessing Nepalese Rs. 7,111 (USD 130) per-capita,” said Binod Kumar Singh, district development officer. “Despite the present poor human development index, the future prospect of the district seems very bright and optimistic.” According to recent study, Nepal’s per capita income is over USD 270.

When the people of these northern villages were searching a way out to fight against poverty, the implementation of Tourism for Rural Poverty Alleviation Programme in (TRPAP) August, 2002 came as a boon to the local residents.

“The goal of the programme is to contribute to the poverty alleviation objective of the government through review and formulation of policy and strategic planning for sustainable tourism development that are pro-poor, pro-environment and pro rural communities and pro-women,” said Pandey, National Program Manager TRPAP.

From dissolution of local elected bodies to the dissolution of House of Representatives and intensification of Maoist insurgency, TRPAP implemented its programme in politically volatile and instable period in Nepalese history.

Because of Maoist insurgency, the project faced many difficulties in the initial period of implementation. Now even the Maoists are demanding the extension of the programme. Based on the community based approach, TRPAP is one of the popular programmes in Rasuwa and other five districts.

“We want the extension of this programme because this is a transparent and pro-poor programme,” said Rasuwa district CPN-Maoist leader Sameer. “We would like to request concerned parties to extend support to the programme as this is a transparent and effective programme.”

Despite their differences over the political and many other issues, district leaders of eight political parties have common voice on the programme. "We will go to center to press the government to extend it,” said CPN-UML leader.

TRPAP’s proves as one of the popular programmes not only in Rasuwa district but all 48 villages of 6 districts where it has been implemented. In the last six years, the project has covered 28,000 people and total beneficiaries of the project are 160,000.

For the district of Rasuwa, the project has brought not only infrastructures but the project also contributed to develop Tamang Cultural Heritage Trail as a new tourism product which has all components to attract tourists.

“With the technical and financial support granted from DFID, UNDP, SNV-Nepal through TRPAP, DDC Rasuwa has been able to efficiently implement the rural tourism programme in the northern part of the district. A new tourism product called Tamang Heritage Trail has been developed and promoted comprising the settlement of the poor people in Getlang, Chillime and Goljung area," said LDO Binod Kumar Singh. "The implementation of TRPAP programme passed through the very critical period. Some positive impact of the programme has been seen in the area and full impact of the programme will be seen in coming days."

Adventure Sports Tourism

Northern parts of Rasuwa have also immense potential to start adventure sports tourism. Small valleys and high mountains, all these are enough to attract adventure tourism. When two dozen mountain-bikers started their competition in Syaphrubesi covering three villages Getlang, Chillime and Goljung and Syaphrubesi, Rasuwa also showed that it has a potential for adventure sports tourism. With beautiful mountain range of Himalayas including Gosainkunda and Langtang, Ganesh and other peaks, Rasuwa's northern part has many products for tourism.

Promoted by Nepal Tourism Board and Tourism for Rural Poverty Alleviation Programme and organised by Himalaya Expeditions a leading private Nepalese agency for adventure sports tourism, the first Mountain Bike Race on the Tamang Heritage Trail opened the potential of these areas to promote adventure tourism.

"There are immense potential to promote Rasuwa for adventure tourism but we are unable to exploit them because of lack of promotional marketing. Our collaboration with TRPAP will definitely help us develop this area for adventure sports tourism," said Bikram Pandey, managing director of Himalaya Expeditions.

Participated by 26 professional bikers including a foreigner, the bikers crossed 25 kilometer of Tamang Trail. Suresh Kumar Dulal secured the first place completing the race in 2 hrs 11 minutes. Surendra Rai finished at second place followed by Padma Sambahan.

“These areas can be sold out as a new product in international tourism market," said Lila Baniya, chief of sustainable tourism unit of Nepal Tourism Board. "There will be more tourists in the area in the future.”

TRPAP's message is that tourism can be best way to fight against poverty in the country's like Nepal.

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SEZs turning into land scam
Economic Times, May 04, 2007

By Rahul Bajaj

In a zest to secure tax holidays, developers are gradually turning Special Economic Zones (SEZs) into a land scam, leading industrialist Rahul Bajaj has said.

Today, big industrial houses acquiring land for SEZs are 'almost turning it into a scam in the name of development', Bajaj Auto Chairman and Rajya Sabha member Rahul Bajaj said at a seminar organised by Consumer Unity and Trust Society on Thursday.

Advocating direct interaction with the farmers, he said, if vast stretches of land have to be acquired to set up SEZs the companies must get them by paying the right value, and not the subsidised rates.

He also said it would not be fair to compare the SEZs in India with that of China, as in case of the latter the land is owned by the state and the benefits go directly to the people. But, in this case it is the developer who is benefiting the most.

Bajaj said development of an industrial area does not mean it has to be near an existing city. It would be of more significance if the infrastructure creation takes place at a distance providing an opportunity to promote auxiliary settlement, he added.

Echoing his thought, Independent Rajya Sabha member P C Alexender said, currently, SEZs are defying the initial social objective of providing small and medium entrepreneurs a growth opportunity.

Supporting the SEZ Policy of the government, Rajya Sabha member and Founder of Farmers' Union Shetkari Sangathan Sharad Joshi said farmers, who are unable to repay their debts, are willing to give up agriculture in return of a better life that an SEZ promises.

This article can also be viewed at: http://economictimes.indiatimes.com/

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