Textiles and Clothing..........




SDPI Research and News Bulletin

Vol. 13, No. 1 Jan — Feb 2006



Textiles and Clothing in a Changing World:
Can Pakistan Catch up with the Front-Runners?

Dr Anjum Altaf
anjum@sdpi.org

The textile and clothing (T&C) industry is the most interesting of the major industries to study at this time. Its natural development has been the most severely distorted by a system of global constraints that were only eased at the beginning of this year. Many people expected the removal of quotas on January 1, 2005 to trigger a massive readjustment and the resulting cutthroat price competition to drive production to the lowest cost locations.
      It is important to remember, however, that the quota regime was initiated over 50 years ago--the first long-term agreement was enforced in 1962--and 50 years is a very long time. Much has changed during this period that could lead to surprising and counterintuitive outcomes for the T&C industry in future. The very length of the quota regime makes it necessary to analyze the industry in the context of the major global trends that have defined the last quarter century or so.
Text Box: It will surprise many that the transition in lifestyles is a driver for the most profound changes in the industry. Till the end of the 1960s, over 70% of men’s shirts sold in the United States were white dress shirts. By 1986, this share was down sharply to 20%. The youth rebellion made the world a much more casual place. The implication for the industry could be understood by thinking of the difference between the economics of selling dry fruit and the economics of selling fresh fruit.      It will surprise many that the transition in lifestyles is a driver for the most profound changes in the industry. Just one indicator can illustrate this point. Till the end of the 1960s, over 70% of men’s shirts sold in the United States were white dress shirts. By 1986, this share was down sharply to 20%. The youth rebellion made the world a much more casual place. Now instead of a large quantity of white dress shirts retailers carry a dizzying combination of colors, sizes, styles, fabrics and price lines with a smaller quantity of each product type on their shelves.
      At the same time, the consumer has become increasingly more fashion-conscious--even faddish as some old timers complain--with rapidly changing tastes. A product that gets outdated or misses a particular selling period has to be disposed at a heavy discount. The proliferation of fashion design institutes and the frequency of clearance sales is evidence of this development.
      The implication for the industry could be understood by thinking of the difference between the economics of selling dry fruit and the economics of selling fresh fruit. Unsold dry fruit lives to be sold another day; unsold fresh fruit at the end of the day is worth a fraction of its value. Errors in estimating demand are very costly in the fresh fruit business.
      The bottom line of the change in lifestyle for the retailer of apparel is that many items of clothing (not all but many) are being transformed from staple commodities to perishable products. If they don’t sell fast they add to costs. As a consequence, the focus of attention of retailers has shifted from ensuring the cheapest supply to managing the demand side. The magnitude of potential loss of revenue on the sales side often overwhelms the cost savings from finding a slightly less expensive supplier. As early as 1985, losses associated with markdowns, stock-outs, and inventory carrying costs for US retailers were estimated to be $25 billion. In the changed environment, other variables, besides supply cost, have begun to have a crucial impact on profitability.
      Continuing with the fruit analogy yields a pointer to one possible direction for the future. Relative to the US, fresh fruit and vegetables can be grown more cheaply in many other distant places. Yet the bulk of the demand is supplied from within the US itself or its immediate neighborhood--what used to be called ‘banana republics’ because US firms produced their bananas there. This proximity of supply to the consumer is a feature of the economics of perishable commodities.
      The second major change that has occurred during the last quarter century or so is the truly amazing progress in information and communications technology. It is hard to recall now that only one generation ago there were no pocket calculators, let alone laptops or the Internet. University students used a slide rule for computation, a device that now belongs in the museums of science and technology.
      It is not surprising that the first users of the new technology to assist with the problems of managing demand were the food stores--beginning in 1970--followed by the leading apparel retailers. The principal elements of this technology package were the uniform product code, bar codes, laser scanners, and electronic data interchange. Using these technologies, retailers gained access to real-time sales information collected at the register via bar code scanning. Today, the leading retailers collect information on the sales of particular products at the size, style and color level, compile it on Sunday night (after the weekend sales are known) and transmit an electronic order to the appropriate supplier the same night. By the following Thursday, they expect floor-ready supplies delivered to their individual stores.
      The use of these technologies in the industry is spreading due to the dynamics of competition just as no bank today can afford to be without online services and ATM dispensers. One consequence is that the leading retailers have begun to exert much more leverage in the supply chain compared to the past. They now stock only the products on their shelves reducing expenses by pushing back the burden of inventory on to their suppliers; they are forcing distributors and suppliers to install expensive data processing technologies to comply with their requirements or risk losing their customer; and they are asking for floor-ready deliveries to individual stores in smaller quantities and in shorter delivery times. Industry analysts have highlighted the emergence of this phenomenon of lean retailing as a key component of the retail revolution in the apparel industry.
      Similar to the distinction between fresh and dry fruit, apparel products are now split into what the industry has termed replenishable and non-replenishable items. Replenishable items are re-ordered many times in small quantities during a selling season, while non-replenishables are ordered a few times at best if not just once. Low-cost items like hosiery, underwear and men’s shorts are replenishables while high cost, fashion sensitive items like women’s dresses are non-replenishables. The replenishable segment is growing in importance. In 1988, 60% of the sales volume in the US was shipped on a non-replenishment basis; by 1992, this was down to about 20%.
      All these new variables affecting profitability, especially the inventory costs of distributors that vary directly with the lead-time needed by suppliers, place a premium on proximity to the end market as far as the supply of replenishable items is concerned. For the U.S. market, the average cycle time for a supplier in Mexico is four weeks as against eleven weeks for a supplier in China--a difference that translates into 100% increase in inventory costs for the distributor. For some products this more than offsets the lower costs of production in China where wage rates are less than a third of those in Mexico.
      The consequences can be seen in the pattern of trade. In 2003, the top five suppliers to the US of men’s and boy’s denim jeans, a typical replenishable item, were Mexico, Costa Rica, Guatemala, Colombia and Honduras. China was 18th and Pakistan 19th on the list. For the same product category, of the top ten suppliers to the EU, six were neighbouring countries. By contrast, for a typical non-replenishable item (women’s and girl’s cotton dresses), the top ten suppliers to the US were all Asian countries. This clearly indicates how the market for apparel is being segregated and how completely different considerations determine the sourcing of these different product types.
      These developments are leaving their imprint on the geography of production. The production of low cost replenishable items is configuring itself in regional markets surrounding the major consumers--the US being served to a significant degree from Mexico and the Caribbean; the EU from Turkey, North Africa and Eastern Europe; and Japan from China. The production of high-value non-replenishable items on the other hand is following the more traditional path of migrating to the lowest cost producers most of whom are in Asia.
      Five global trends are accompanying this new geography of production. The first is the huge wave of outsourcing of manufacturing and services from developed to developing countries. It is interesting to observe how the characteristics mentioned above are shaping the nature of this foreign investment in the T&C industry. For replenishable items, US firms are moving across the border to produce in Mexico and Japanese firms are investing in China. The most revealing example, however, is from Korea. Guatemala was the third largest supplier of men’s and boy’s denim jeans to the US. It turns out that of the 244 companies producing apparel in Guatemala in 1999, 130 (more than half) were from Korea. Clearly, proximity to the consumer and being integrated into the supply chain of the leading retailers is important enough for Korean firms to invest not only in China but also as far away as Guatemala.
      The second trend is the proliferation of regional and bilateral preferential trade agreements. The pattern of regional markets in the textile and clothing industry is being reinforced by agreements that often tie tariff concessions to the use of inputs from the consuming countries (e.g., US origin textiles and fabrics). NAFTA, the Caribbean Basin Trade Partnership Act and the Euro-Mediterranean partnership are good examples. It is important to remember that after the elimination of quotas discriminatory tariffs remain as the major public policy instrument to redirect the flows of free trade. In South Asia, Bangladesh is a beneficiary having free entry into the EU due to its status as a “Least Developed Nation.”
      The third global trend is the quiet emergence of the knowledge economy and the increasing importance of what is being called the creative worker, the worker that helps a firm to innovate, add value to its products, and move up the supply chain. It is not possible to produce high-value items in today’s economy without a large pool of creative workers. The implications have been realized quickly in East Asia where many countries, finding themselves unable to compete with China on costs, are investing heavily in innovation and in attracting the innovative worker. This aspect is important for apparel firms that wish to compete in the market for both replenishable and non-replenishable items and for textile firms seeking to find new industrial uses for their products.
      The fourth trend centers round the rise of the efficient city as an entity almost independent of the country in which it is located. In South Asia, Bangalore is a good example. It is now linked directly, not through the national capital, to the global economy and investment is flowing to it quite irrespective of the poverty in Bihar, the unrest in Assam or the hostilities in Kashmir. As long as Bangalore offers a stable environment with good business infrastructure and efficient logistics what happens in the rest of India remains virtually irrelevant to global business. And efficient cities have begun to compete with each other for outsourced work. Thus Hyderabad and Chennai, led by their public officials and chambers of commerce, are now competing aggressively against Bangalore for the software market. It is significant to note that the Indian government is not lobbying on behalf of Hyderabad and Chennai; the cities are out there marketing themselves on their own.
      This competition between cities for global business has given rise to a new set of comparative indicators of business friendliness and efficiency. The time it takes from touchdown at the airport to checking in at a downtown hotel has become one of the benchmark metrics in this new competitive environment. It is no surprise that Shanghai has invested in the fastest and most modern train, the world’s first commercial magnetic levitation system, to link its new airport with its business district. The 30-kilometer journey is reported to take all of about eight minutes.
      A related aspect of this phenomenon is that these competitive cities have realized they must become attractive for the global knowledge worker whose lifestyle is quite different from that of the industrial worker. Singapore has gone to the extent of relaxing its prohibition on chewing gum, is talking about creating a bohemian village and becoming a Renaissance City. Shanghai is pouring millions of dollars into museums and an opera house. Dubai is transforming itself as a shopping and entertainment haven. Investment in culture, called ‘cultural capital’, has become just as necessary as investment in science and technology and in physical infrastructure to be globally competitive in the post-industrial knowledge economy.
      The fifth global trend is the emergence of the environmentally and ethically conscious consumer in the developed countries. While we might consider this a phenomenon promoted by protectionist industry lobbies, we still have to deal with the fallout. The soccer ball industry has already found itself vulnerable to the charge of exploiting child labor. For the textile industry, the plight of the cotton pickers might turn out to be its own weak spot.
      It was mentioned earlier that the production of high value non-replenishable apparel items was migrating to the lowest cost producers not the lowest wage countries. Jobs are moving to low wage countries with the largest and most productive talent pools, the most desirable locations and the most efficient delivery logistics. Thus Indonesia, which in 2002 had an average hourly labor cost in apparel manufacturing lower than that in China, is still losing market share to the latter.
      One can understand now why China is in such a sweet spot and emerging as a manufacturing powerhouse. It is next door to the very large Japanese market and also has the most competitive shipping times to the west coast of the US averaging between 12 and 18 days compared to as much as 45 days from its ASEAN competitors. It has almost 100% literacy and a large pool of highly trained technical workers. It has proactively identified a number of universities that it intends to raise to the highest global standards within years. It has increasingly efficient cities, is investing heavily in the infrastructure of business, and is pouring money into cultural capital to become attractive for global capital and the demanding knowledge worker.  
      Let us now see Pakistan in the perspective of these developments in the industry and the global trends that have been highlighted. Is it possible that Pakistan would fall between two stools--not being close enough to the large markets to be competitive in the low-value replenishable products and not having the creative talent pool or the efficient cities to be competitive in the high-value non-replenishable products? In the worst case, could Pakistan find itself reduced to a provider of raw materials to producers elsewhere who have equipped themselves to add value and be competitive in the global economy? And could the degradation of the cotton pickers emerge as a new barrier to trade, further reducing its limited role in the global economy?
      Of course, this need not be the case. If one can see far enough down the road, one can identify the potholes, steer accordingly, and chart a successful direction. The industry has already invested in modernization to be ready for the post-quota world. In future, Pakistani firms could invest in countries like Turkey, Tunisia, and Morocco that are proximate to the large EU market. Bangladesh is also a candidate for investment because of its tariff advantages. Pakistani firms could also explore niches in the large developing country markets of India and China that are becoming more open under the WTO regime. The most important industry in the country could spearhead efforts to reclaim the cities and to make them more efficient for business. It could lobby for reform of the public school curriculum to move the country beyond the stage where 50% of the population is still illiterate and the rest is getting an education that provides no skills to integrate into the global knowledge economy.
      Most of these are changes where the industry needs to convince the various levels of government to support its growth and development. This is no doubt a difficult challenge but one that has to be faced sooner rather than later in the self-interest of the industry. But there are areas where the industry is much less constrained and can act on its own. This space for voluntary initiative provides room to demonstrate forcefully the industry’s commitment to change.
      Establishing the Textile Institute of Pakistan is an excellent example. There are some other possibilities. The industry could be proactive in offering incentives to growers to improve the conditions of work and incomes of the cotton pickers. The industry could also conceivably lead the way in the sphere of education by further raising the standards of the Textile Institute to match the best in the world. It is here that the importance of being located in an efficient, safe, and culturally vibrant city would be realized. Attempts to attract leading academics and professionals for significant periods of time would flounder because of the poor image of Karachi. Therefore, it would be in the interest of the industry to contribute to making Karachi a more attractive place to live and work in. Little things can often set the ball rolling and make a surprisingly big difference.

Acknowledgment
This is the edited text of the keynote address delivered on December 2, 2005 at the conference on Teaching Textiles organized by the Textile Institute of Pakistan, Karachi.

Recommended Reading


On the T&C industry:
·        A Stitch in Time: Lean Retailing and the Transformation of Manufacturing--Lessons from the Apparel and Textile Industries. 1999. Frederick H. Abernathy, John T. Dunlop, Janice H. Hammond, and David Weil. New York: Oxford University Press.

On the knowledge and creative economy:
·        The Rise of the Creative Class: And How it is Transforming Work, Leisure, Community and Everyday Life. 2002. Richard Florida. New York: Basic Books.
·        The Creative Economy: How People Make Money from Ideas. 2001. John Howkins. 2001. London: Allen Lane.

On global cities:
·        The Global City: New York, London, Tokyo. 2001. Saskia Sassen. 2001. Princeton, NJ: Princeton University Press.
·        “Cosmopolitan Cities and Nation States: Open Economics, Urban Dynamics, and Government in East Asia.” 2002. Thomas P. Rohlen. Stanford University: Asia/Pacific Research Center. http://iis-db.stanford.edu/pubs/12074/Rohlen_cosmopolitan.pdf
Cotton Pickers After the Quota Expiry:
Bitter Harvest

Karin Astrid Siegmann
karin@sdpi.org


Pakistan’s textile and clothing (T&C) industry stands on women’s shoulders. Under the scorching sun, thousands of female cotton pickers work in the cotton fields of Southern Punjab and Sindh, harvesting the raw material for the production of yarn, cloth, trousers, and t-shirts.
      Cotton pickers are responsible for the T&C industry’s successes, but remain poor themselves. Pakistan is the fourth largest cotton producer of the world and is expected to become number three in its consumption this year. Cotton is planted on 3m hectares of land, producing an output of 1.7m tonnes in 2003. An estimated 700,000 cotton pickers, most of them women and girls, are employed on the 1.6m cotton-growing farms in Pakistan during the picking season between September and December.
      Working conditions were extremely poor in the past. In 1999, pickers’ pay was only about Rs40-50 per maund. One maund is what a fast picker can harvest in a day, and half of that weight is more common. Alternative sources of income are few, partially because unemployment is high in the cotton-growing belt, and to some extent due to these women’s low levels of schooling. Educational limitations also weaken their bargaining power vis-à-vis their employers. When their harvest is weighed, they are easily cheated on their daily wage. Overall, it is difficult for them to negotiate better working conditions. This reality is compounded by their gender that is often subjected to sexual harassment.
      The working environment of cotton pickers is full of poisonous pesticides. During the 8-9 hours of daily picking, they are exposed to residuals of pesticide spraying. They consume water that is contaminated with pesticides. Besides, pesticides enter the food chain via the exposure of the soil, of their livestock, as residuals in cotton seeds that are pressed to produce edible oil. The result is chronic pesticide poisoning. One of the few studies conducted on the health effects of pesticide application in Pakistani cotton cultivation finds that 74% of female cotton pickers are moderately pesticide-poisoned, while the remaining quarter has reached dangerous levels of poisoning.
      The T&C sector, based on home-grown and hand-picked cotton, is the country’s most important industrial and export sector. The year 2005 has meant a quantum leap towards freer global trade in T&C. The quota system, that had constrained exports to the main markets for T&C , was abolished under a World Trade Organisation (WTO) agreement on January 1, 2005. Previously, T&C producers had to purchase quotas in order to be able to sell their products to the main markets. Since January 2005, however, buyers and sellers of T&C products no longer rely on access to quotas in order to export to the USA, EU or Canada. This means a more competitive environment for a large number of T&C exporters across Asia, Latin America, and Africa.
      SDPI conducted a study in 2005 to assess whether this change in the external trade environment also trickled down to the cotton pickers and made a difference in their working conditions. What difference could a change in the trade environment for T&C occur in these women’s lives and livelihoods?
      SDPI started its investigation with two contrary assumptions. The intensified competition that is resulting from the abolition of the quota system has two aspects: price and quality. Prices for T&C products have dropped because of the harsher competition amongst producers. If manufacturers try to compensate such reduced income through cost cuts, this might be passed on through the textile chain as lower wages to cotton pickers. On the other hand, producers try to comply with environmental and social standards that are becoming an increasingly common demand of buyers in the North. One aspect here is lower charges of T&C products with hazardous materials, such as dyes but also pesticides. If this is the result of a freer trade scenario, less strain may be put on cotton pickers’ health.
      The preliminary results, however, show that little has changed for cotton pickers’ bitter harvest. T&C exports might have picked up, but the cotton fields haven’t become a more likable location since the quota system expired. Women’s wages still stand at similarly low levels of Rs50-70. Considering that price levels have climbed more than a fifth between 2004 and 2005, only purchasing power has actually declined substantially. Pesticide use has grown from year to year, and yet, protective gear is still almost absent from the fields. Resultantly, women complain about headache, nausea, and skin irritations but don’t have the money to consult a doctor and buy medicine.
      Evidently, if there is any link between the trade environment and the livelihoods of cotton pickers, it matches the pessimistic assumption that harsher competition leads to pressure on wages. Deeper analysis is needed to dig out the real reasons for the static hardship of cotton pickers. Their weak bargaining power surely is a factor. The pesticide treadmill, i.e., the necessity to use more and more pesticides due to resistances developed in pests, and also the fact that pesticide prices have dropped due to import liberalization in 1995 facilitating greater consumption, is a serious threat to their health and livelihoods.
      An important factor may be the political economy of the cotton chain in Pakistan. Yarn producers have a powerful position in the industry and their economic importance is paralleled by the political influence they exert. Despite the rhetoric of demanding clean cotton--i.e., cotton not contaminated by cotton sticks, human hair, and polyethylene bags, as an input for their spinning mills--no incentives are provided for growers to supply such uncontaminated cotton. Obviously, the profits that can be reaped by selling poor quality yarn based on very low labour costs are higher than the premia for uncontaminated yarn and cloth. However, recently a decision has been taken to provide such incentives through the Trading Corporation of Pakistan (TCP). If implemented, this might translate into better pay for cotton pickers as it is they, ultimately, who control this type of contamination.
      What to do? Clearly, cotton pickers need to be provided with wages above subsistence level, e.g. in the form of incentives for clean cotton. The abovementioned new policy to provide quality premia might be a step in the right direction. Awareness should be raised about the relevance of protective gear for all stakeholders involved in cotton cultivation. Legal and other incentives should be provided to cotton pickers and growers for actually wearing protective equipment. For that, easily understandable brochures should be developed targeted at various addressees in regional languages. The GoP should implement bans on severely toxic substances/products, sanction their implementation, and explore the potential to reduce pesticide application through Integrated Pest Management (IPM) and/or organic farming.
      To address the skewed distribution of bargaining power between agricultural workers, their organizations should be established and strengthened in order to make sure they can jointly voice their concerns and work for improvement of their working conditions. More vulnerable female agricultural workers should be targeted in particular.
Politics of Donations
The money pledged by international donors for post-quake rehabilitation and reconstruction seems fine on paper. The devil lies in the fine print

Abid Qaiyum Suleri
suleri@sdpi.org



International donors have pledged some $5.4bn (£3.14bn) in a donors' conference 19 November, 2005 to help Pakistan recover from October's devastating earthquake. The figure exceeds $5.2bn Pakistan had been asking for. The Pakistani demand was based on a Preliminary Damage and Needs Assessment released by the Asian Development Bank (ADB) and World Bank.
      More than 70 donor countries, financial institutions, and aid organizations attended the conference. The single biggest donor country was Saudi Arabia, which pledged a total of $573m in grants and soft loans. The US pledged $510m, including $156m already given. Among other top contributing countries were Britain, other European Union nations, Japan, Kuwait, Iran and Turkey. The World Bank and the Asian Development Bank pledged $1bn each, mostly in the form of loans. The Islamic Development Bank said it would increase its assistance from more than $250m to more than $501m. Nearly 30 countries extended offers of help, with China pledging $316m and Iran $200m.
      While one is heartened by these pledges for the quake survivors, it should also be kept in mind that historically, following major disasters only about half of the pledges made by donors have ever materialized. Another disturbing fact is that approximately 68% of the pledges are loans--although donors are calling them soft loans. The hard reality is that Pakistan already has $32bn in debt and is paying billions as interest on these loans. The deepened burden of debt may make the future a bit darker for our coming generations.
      One would have even agreed to swallow the bitter pill of debts in the name of rehabilitation and reconstruction, provided it had come timely. The problem with the international pledges is that most of them are long-term commitments.
      Another significant aspect of the donors’ conference was its failure to involve Pakistani society at large. This is because like many other developing countries, there is no culture of national consultation, building consensus or taking the parliament into confidence before taking decisions of national importance such as agreeing to borrow from lending agencies. However, even more amazing was the working of donors. It seems they were so eager to lend that they totally ignored the need for consulting the stakeholders.
This makes it all the more necessary to analyze all the pledges even if they have already been made. Let us examine the World Bank's commitment first. The Bank announced $470m on October 25, 2005 and raised it to $1bn during the donors' conference. Of the money that the Bank has pledged, only $200m have been transferred to Pakistan November 2005.
The break-up of the World Bank pledge is as follows:
1.        Supplemental financing of $150m for the Poverty Reduction Support Credit (PRSC): The supplemental credit will support the sustained implementation of the PRSC reform program and help finance part of the gap in resources incurred as a result of the earthquake.
2.        Supplemental financing of $50m for the North-West Frontier Province Structural Adjustment Credit II (SAC2): The NWFP SAC2 was the second in a series of three operations to support the implementation of NWFP government's Provincial Reform Program. The proposed supplemental financing will support the sustained implementation of the SAC reform program, and help finance part of the gap in resources incurred.
3.        Additional financing in an amount of $100m for 'Highways Rehabilitation Project': The new activities include civil works for reconstruction and rehabilitation of earthquake damaged roads, which, based on an initial needs assessment, may include some sections of main national highways connecting Muzaffarabad, Kaghan Valley and Northern Areas with the rest of the country.
4.        Additional financing in an amount of $100m for second Pakistan Poverty Alleviation Fund Project: The partner organizations and PPAF will use these additional funds to rebuild communities through intensive social mobilization (approximately 1m individuals); low-cost seismologically appropriate housing (approximately 25,000 units); rehabilitation of 1,500 community infrastructure schemes; community buildings; coordination, monitoring and supervision; and technical assistance for earthquake resistant structures.
5.        Re-allocation of part of the proceeds of the NWFP CIP II credit in an amount of $22.5m: The project will comprise three components: (a) restoration of economic and social infrastructure destroyed and damaged by floods and earthquake including restoration of roads; repair and/or reconstruction of buildings; repair of water supply schemes and restoration of irrigation canals; (b) strengthening of the safety net and disaster preparedness programs; and (c) project management and implementations support.
6.        Re-allocation of part of the proceeds of the credit in an amount of $7.5m for North-West Frontier Province On-Farm Water Management Project: This project will also comprise the above mentioned three components.
7.        Re-allocation of part of the proceeds of the credit in an amount of $10m and additional financing in an amount of $30m for AJK CISP: The proposed project will cover three districts of AJK that have been affected by the earthquake (Muzaffarabad, Rawalakot and Bagh). The project will again comprise the three components, i.e., restoration of economic and social infrastructure, strengthening of the safety net and disaster preparedness programs; and project management and implementations support.

Even if one is mindful that there can never be perfect answers, it does not answer the question whether survivors of the October 8 tragedy have any say in prioritizing what is required for their rehabilitation. None at all, of course. It, therefore, comes as no surprise that the donors and the government are deciding on their own what is beneficial for the quake-hit areas and what is not.
Pakistan already has $32bn in debt and is paying billions as interest on these loans.

Text Box: Another disturbing fact is that approximately 68% of the pledges are loans--although donors are calling them soft loans. The hard reality is that Pakistan already has $32bn in debt and is paying billions as interest on these loans.       The above-mentioned allocations are based on a quick assessment carried out by ADB and the World Bank mission. Many officials who have visited the disaster-hit areas have commented that they have never seen the destruction and the access complexities of this magnitude. We are talking of helping save almost 1m people who are still homeless or un-served, who are now facing the spread of disease and further illness, even death as the Himalayan winter descends. In return we get the loan enhancement for NWFP government reforms and on-farm water management as if these reforms will solve the chronic problem of governance.
      There is no denying the fact that the NWFP government reforms or on-farm water management are important in themselves. But revising allocation of loans for them in the guise of helping the quake victims is mere eyewash.
      The story of ADB's $1bn support is no different. According to ADB's official version, this support will be provided in a number of stages. About $100m of savings from concession loans from eight ongoing projects in Pakistan has been re-allocated to the ongoing ADB-backed Decentralization Support Program. These funds will provide budgetary support for earthquake-related rehabilitation and reconstruction activities.
      ADB's Resident Mission in Pakistan is also reviewing seven ongoing loans in the earthquake-affected areas to see whether these can be redesigned to address earthquake damage more effectively. The Multi-sector Rehabilitation and Improvement Project for Azad Jammu & Kashmir is one such project.
      ADB has set up a special Pakistan Earthquake Fund with an initial contribution of $80m. In early December, a $300m Earthquake Emergency Assistance project, inclusive of the $80m from the Pakistan Earthquake Fund, will be considered by ADB's Board of Directors. The project will focus on transport, power, health, education, governance, and institution-building.
      The remainder of ADB's support is likely to be provided in 2006 in the form of a credit line facility to ensure that it can be flexibly used to address the remaining high priority needs of rehabilitation and reconstruction.
      The absence of stakeholders' participation and lack of national consultation on rehabilitation may turn the process into commercial development in the name of the marginalized and the poor, as was the case during post-tsunami reconstruction process. The tsunami experience also proves that coordination, aid utilization, and accountability need to be put on top of the priority list in the reconstruction process--something that seems lacking in our context.
      It is also appropriate to review the donors' commitments, especially the loan component to determine its usefulness for quake survivors. There must be transparency and accountability not only at the level of the recipients’ end but also at the donors' end. It is important that the terms and conditions for grant contracts and loans are people-friendly, not simply donor-friendly. This makes the fine prints of grant contracts very crucial, including how much will go back to the donor country in money for providing 'technical expertise' and equipment, and how much actually goes to the people in distress.
      This brings into focus who does what when the money finally arrives and is distributed. It means we need to ensure the crucial task of aid utilization in a transparent and unbiased manner. The major challenge is, of course, how the impact of the aid and loans will be realized by the millions of survivors, living either in tent villages and/or still in the open.
      Also, over-dependence on external donors will further undermine our national sovereignty. It is ironic that the government has not pledged any donation from its’ part of the pie. No cuts have been made in lavish 'entertainment' and protocol budgets, no reduction has been made in overseas trips and no downsizing has taken place in the flock of advisors and consultants. Mega plans like shifting of the Army Headquarters from Rawalpindi to Islamabad are still on. Let us realize our collective responsibilities and begin a meaningful rehabilitation, which should also include rehabilitation of our attitudes and paradigm of thinking that revolves around dependency on external sources of money.
Domestic Policies and WTO
Before the Southern states begin to fault the WTO, the central concern for them ought to be domestic policies and the shortcomings in that regard

Moeed Yusuf
moeed@sdpi.org

While no outright consensus was achieved at the WTO (World Trade Organisation) ministerial meeting, which was held in Hong Kong in December 2006, members have agreed to continue talk­ing in the "interest of all".
      On the sidelines of the ministerial talks was violent opposition to the idea of a global trading regime. It is not the scale of the oppo­sition but the message the opponents con­veyed to policymakers sitting inside the Hong Kong Convention Centre: the WTO regime has attached to it negative externalities which will force many to lose out in the bid to cre­ate a global free-trade regime.
      What is important is the fact that the opposition at the meeting was not a result of any perceived threat from WTO, but came from groups who have already begun to feel the brunt of the free-trade regime. This is a stark reality, in total contrast to the perception of those sitting inside the Convention Centre and who look to the WTO as a means of bringing gains for all. The latter deduction is entirely flawed.
      Proponents of free trade continue to pro­fess that WTO would bring global benefits by increasing inter-state economic flows. However, it is absurd for member states to perceive, as some do, that this automatically translates into a "benefit-for-all" regime. WTO pundits themselves are the first ones to oppose any such extension of the regime's mandate. The fact is that the WTO is only aimed at increasing the size of the global eco­nomic pie, which could potentially increase the size of the pie for individual countries. In other words, WTO principally looks at a glob­al improvement in economic flows. It is virtually silent on intra-national benefits.
      To begin with, while the multilateral trading arrangement might bring benefits to most countries, there is no guarantee that every member state would gain. More importantly, it certainly does not flow from the arrange­ment that such a development would improve the livelihood opportunities (and thus pover­ty) of all citizens of the South.
      The first question strikes at the heart of inter-state politics. The most contentious issue that has prevented trade talks from reaching a consensus is that of market access. The deadlock is largely a result of power play in international politics. The EU and the US are using their international leverage to con­tinue protecting their domestic producers while pushing the Southern states to liber­alize. The latter is in no position to force a change in the North's attitude, especially given the imbalanced power structure. Clearly, tangible movement on the issue of market access lies at the mercy of the North. The South can only exert its utmost pressure and play a wait-and-see game.
      The second leg of the equation--i.e., ben­efits translating from the national to the indi­vidual level--directly concerns the Southern governments. Here it revolves around Southern national policies, which look to ensure benefit-sharing between the rich and the poor. The need for the Southern countries to ensure an all-inclusive system of benefit-­sharing remains as strong under the WTO as without it. Notwithstanding the South's claims that the advent of the free-trade regime would bring benefits to all, there is no auto­matic connection between the two.
      The lack of an effective benefit-sharing mechanism in the Southern countries, mis­placed institutional preferences, and inherent policy biases favoring the influential large-­scale producers ought to be the focus of gov­ernments in the South. Were WTO to bring gains at a national scale, there is every possibility that the influential elite will capture most of it, given the present institutional con­text across the South. In fact, were the WTO to manage a level playing field (by resolving market access and other such issues), the stakes to hijack the "trickle down" and bene­fit-sharing mechanisms would be higher.
      As the potential gains increase, two things are likely to happen in an adverse pol­icy environment. First, large-scale producers are likely to exert the influence that they so often enjoy in the South to receive most of the benefits. Second, given the necessity of effi­cient production, the economies of scale and a slew of environmental and quality stan­dards, large-scale producers with resources at their disposal would be in a position to adapt more quickly than small-scale producers in the South.
      This could easily result in weeding out the less competitive small-scale producers. Already literature is emerging, which chal­lenges common wisdom by shedding pes­simism on the ability of small producers to gain from market-access opportunities. The opposition from the Korean farmers and other such groups in Hong Kong is evidence of such a development.
      If the South's policies are not altered to cater to the interests of the small-scale pro­ducers, there could be serious repercussions. Trade pundits are increasingly looking at SMEs (small and medium enterprises) as the engines of economic growth within coun­tries. Given their contribution to the GDP and their employment-generation potential, Pakistan itself has laid high priority on SMEs in its Medium-Term Development Framework. If most of the SMEs were weed­ed out--in case of agriculture, this would be small farmers--it would severely impact employment levels within the country, which would automatically translate into higher poverty levels. While trade skeptics stop here, the chain needs to be extended to include all social impacts associated with rising poverty levels, the most obvious one being increased crime and, perhaps, more recruits for extremist interests.
      The point is that the WTO, at best, will bring gains for national economies. It will not alter the domestic policy structures of the countries, which need to be in place if the benefits are to trickle down to the poor­est. The onus of correcting domestic policy biases and give incentive to small-scale pro­ducers in a free-trade regime is entirely on the Southern states. There is no reason for the governments in the South to wait for the creation of a level playing field before they would take such measures. By the same token, one must not link any failure of the small producers under the WTO to the regime itself. The central concern ought to be domestic policies and the shortcomings in that regard.
Ways to Protect Traditional Knowledge

Mehnaz Ajmal
mehnaz@sdpi.org


The current literature on Intellectual Property Rights, presents two approaches used in the world to protect traditional knowledge. One is positive approach and the other is defensive approach.
      The positive approaches of protecting Traditional Knowledge talk about the systems in any country or region, either established by themselves or adopted from other countries’ model. This approach requires sound technical capability as well as commitment by the countries. As this is a new area, therefore, sparse work has been carried out so far. Many have developed and proposed the systems or trial but there is no concrete model. On the other hand those who are the allies of defensive approaches talk about the rights of countries against the monopoly of the multinationals in exploiting traditional knowledge.
      Supporting the defensive approach to protect traditional knowledge, in this article we present the concept of disclosure of origin of genetic resources, associated traditional knowledge, and the data-base compilation of traditional knowledge.

Disclosure of Origin

The disclosure of origin postulation lays out a fair and equitable benefit-sharing related to genetic resources and traditional knowledge as required by the Convention on Biological Diversity. The proposal related to disclosure of origin has three forms, i.e., weak, medium and strong:
1.   The weak form encourages the disclosure but does not bind it with the grant of patent   
2.   The medium form makes the disclosure of origin mandatory
3.        The strong forms goes deep into the specification of patents, like certification of origin, information about the genetic resources and traditional knowledge where acquired, conformity with Access to Genetic resources and Benefit Sharing (ABS) regulations and Prior Informed consent (PIC).

The compliance or incompatibility of the disclosure of origin with TRIPS agreement depends upon the intensity of the three forms. The weak form does not put any compulsion on the contracting party or country, while the medium form can question the invention of the genetic resource and traditional knowledge. The strong form leads towards conflict if the patent application can be rejected on the basis of absence of any requirement or compulsion on the submission of the documents and linking it with the other requirements. Some people are of the view that such requirements are a violation of TRIPS agreement, but in actual fact these requirements require the revision of TRIPS agreement according to the needs of the countries. Alternatively, these requirements could be introduced outside of the search and examination process, as administrative measures. 
      The medium from that makes the disclosure of origin mandatory could operate quite well for health issues. For instance, in the pharmaceutical industry it is easy to find the source of the single compound used to prepare a new drug for a disease, but it is very difficult in plant varieties, which can be patented in some countries. The genetic material may come out of different sources, some of which may no longer be identifiable because of lack of documentation and the length of time between its’ acquisition and its’ use in breeding programs. There may be certain other objectionable or unclear reasons, e.g., the different sources of genetic material; the genetic material produced through conventional breeding methods; unorganized farming communities; partially developed farming systems; and identification of indigenous communities and their truthfulness.
      Keeping in view the above facts and ambiguities, careful policies for development and their practical implementation are the need of the hour.

 

Inventories and Database on Traditional Knowledge

The inventories and database on traditional knowledge in many countries, like India, are strongly promoted. The main aim is to make available information not only to patent examiners but also disclose it to the public domain. But the usefulness of these databases is open to discussion, depending upon the grant of controversial patent, chemical constitution of the genetic resources of different areas, difference between the information of the new invention and the traditional knowledge mentioned in the databank or inventory of any specific area. Bio-piracy is the most dangerous threat to these inventoried databanks.
      In the context of availability of information, national and regional laws vary with respect to how information or material in the public domain should be presented in order that it constitutes novelty defeating prior art, because due to the lack of novelty, patents on isolated compounds obtained from medicinal plants can be challenged.

Recommendations
·        There should be national laws, which can determine and prevent the misuse of traditional knowledge and free to penalize the felon and take compensation.
·        The national law should have capacity-enhancement programs to empower communities to fight for their rights.
·        There should be provision for documentation of traditional knowledge, proof of origin of genetic material, and prior informed consent in the national law.
·        There should be ways for the protection of heritage.
·        Communities or holders of traditional knowledge should be capacitated either to engage in commercial activities or to ask for benefit-sharing.

Conclusion
In the light of approaches for protecting traditional knowledge mentioned above, there is a need to develop mechanisms to protect the rights of holders of traditional knowledge. The mechanisms devised must be effective at all levels especially at the local/domestic level. This will ensure, protection of traditional knowledge through registers and data banks to avoid their misuse. Moreover the national authorities should provide the certification of origin, that the source of origin is disclosed and the prior informed consent of the stakeholders has been taken for the commercial utilization of traditional knowledge.  



In Retrospect

Campaigns and Talks

 

Conflict Situation in Balochistan

February 13, 2006


The speakers criticized the unwillingness of the government to resolve the Balochistan crisis. They demanded an immediate end to the ongoing military operation in Baloch tribal areas, a political settlement of the crisis through initiation of an open and meaningful political dialogue, and a balanced and impartial constitution for the province that safeguards the rights of the local people.
      Syed Shamsuddin of Human Rights Commission of Pakistan (HRCP) presented the findings of HRCP’s latest report on the situation in Balochistan. The report revealed that the military action in Baloch tribal areas including indiscriminate bombings had resulted in a large number of deaths. Deep resentment and anger had been prevalent in the local communities along with an overwhelming sense of fear. “The present situation calls for an open dialogue and a political settlement that also takes into consideration important issues such as provincial autonomy,” he said. He further stated that the civil administration of Balochistan currently stood subservient to the military and there was a dire need to discourage this malpractice.
      Dr Ishaq Baloch of National Party stated that the National Party was a true representative of not only the educated middle class of the country but also of the different ethnic groups. He declared the situation in Balochistan very similar to that of East Pakistan. He said that over the years, Balochistan had undergone five operations, and the insurgency still continued because the federation does not exist in its true sense. “Because of continued discrimination against the province and the ineffectiveness of the political system, the people in Balochistan have started to loose confidence in democracy and political parties,” he said. His demand included initiation of a meaningful political dialogue and a balanced and impartial constitution that could safeguard the rights of the local people.
      Ghulam Mustafa Baloch of Strengthening Participatory Organization (SPO), Quetta lamented that the federal government had deprived the local people of Balochistan from controlling their own resources by labeling them as incompetent people who were also incapable of making their own decisions. He said that the government had targeted three tribal chiefs of Balochistan for their alleged anti-development stance. However, the state of majority of the people living under the rule of pro-government/liberal tribal leaders remained as miserable as the former. He also endorsed the demand for a balanced constitution.
While responding to the questions of participants of the seminar, the speakers strongly condemned the colonial attitude of the federal government and declared it a contributing factor to the crisis situation that prevails in Balochistan.

Causes and Consequences of Margalla Towers Tragedy: Lessons Learnt

February 6, 2006


The speakers condemned the Capital Development Authority (CDA) for showing criminal negligence, which led to the collapse of Margalla Towers and the resultant loss of precious human lives. They recommended the need for better legislation for implementation and enforcement of building codes, verification systems for high-rise buildings, research for seismic resistant buildings and facilitation of independent investigations in the tragedy.
      Dr Farid Midhet of Asia Foundation presented a factual account of the Margalla Towers tragedy on behalf of the Margalla Towers Residents’ Society. He declared CDA and the builders (CCC Associates) responsible for the loss of lives, as they did not pay any heed to numerous complaints lodged by the residents of Margalla Towers about its poor construction. Sharing the evidence of poor designs and faulty construction of the building, he said that CDA had a suspicious relationship with CCC Associates, which was why the complaints of the supervising engineers Habib Fida Ali Associates were ignored and the complainants were eventually dismissed.
      He further said that the ground acceleration was 0.05g in Islamabad, which was very low as compared to the ground acceleration of 0.8g experienced in Muzaffarabad and Kashmir. “This clearly shows that Margalla Towers did not collapse because of the earthquake,” he stated.  He strongly criticized the CDA officials for doubly victimizing the residents of Margalla Towers by calling them illegal occupants. “CDA was making an irresponsible effort to shift the blame by trying to disassociate itself from the Margalla Towers project,” he added. He lamented that CDA even failed to provide immediate rescue and relief to the survivors and to comply with the orders of the Supreme Court in letter and spirit. He proposed formation of a body in Islamabad to protect the rights of citizens. He also demanded that CDA should be transformed into a more accountable and democratic institution.
      Dr Shafqat Shehzad of SDPI highlighted the fact that despite the Supreme Court’s order to fully compensate the residents of Margalla Towers, CDA had only paid two months’ rent to the affectees. She stressed upon the need for better legislation for implementation of building codes, verification systems for high-rise buildings and research for seismic-resistant buildings.
      Other members of Margalla Towers Resident Society (MRTS) also shared their experiences, including Saad Mazhar who lost his entire family in the tragedy. While responding to the questions of the participants of the seminar, Dr Asim Masood, President MRTS, said that the decision of the Supreme Court regarding the tragedy of Margalla Towers held immense significance for prevention of future tragedies, as it would set a precedent.

Drinking Water Vi­sion-2030 for Rawalpindi

January 30, 2006

Experts warned of severe water crisis in Rawalpindi in the near future if small dams such as Cherah and Daducha on Soan and Ling rivers, respectively, were not built and leakages, wasting 50% of water, not plugged. They asked the government to immediately start de-silting of Khanpur dam's water channel since the channel had not been cleaned for years and the filtration plant at the dam was unable to provide water to the twin cities of Rawalpindi and Islamabad as per its maximum capacity.
      Dr Isa Daudpota, an environmentalist, said Khanpur dam was built on a wrong site by Ayub Khan’s government. In 1986, the Executive Committee of the National Economic Council (ECNEC) adopted an alternative route to provide water to the twin cities from this dam, which did not prove to be a useful alternative. He said that the water supply from Khanpur dam to the twin cities involved three different options in the past, but ECNEC did not approve the feasible and perfect option of Margalla water tunnel, which was even strongly recommended by the CDA and JICA. “The Margalla water tunnel project had an estimated cost of Rs320m in the year 1985, which can be doubled to Rs640m in recent times due to the inflation factor; but still it was a feasible project with a less operational and maintenance cost to existing project of water supply to the twin cities from Khanpur dam,” he said. He added that the proposed supply of water to the federal capital and Rawalpindi from Jehlum and Indus rivers was no practical solution to the water crisis in the making. He asserted the people were given the wrong impression that there was too little water in Khanpur dam. The dam's spillways had been opened 18 times during the last year alone, which showed that water availability was not a problem but how to suck the water up from 400 meters. He lamented that neither Punjab nor the NWFP cleaned the channel of Khanpur dam, which had made the filtration plant inefficient.
      Arshad Abbasi of SDPI said that at present Rawalpindi had a popu­lation of 1.8m and with the present growth rate it would touch 4m by 2030. Now the city required more than 36mgd water, however, by 2030 the water requirement would also increase. He said that two small dams, i.e., Chirah dam on Soan River and Daducha dam on river Ling could be easily built in Rawalpindi to meet its future water requirements. Both the dams, he said, were unavoidable, if the government wanted to avert the long-predicted water crisis in Rawalpindi. He said installation of water meters could also help save the water from being wasted. At present, he said the Water and Sanitation Agency (Wasa), Tehsil  Municipal Administration (TMA), and Rawalpindi Cantonment Board (RCB) charged fixed rates.
      Participants of the seminar also discussed water pollution in Rawal Lake and the provision of unsafe drinking water to the citizens of Rawalpindi. They said that water charges should not be increased; instead, the water agencies must improve the quality of potable water aimed at checking water-borne diseases that were now common in Rawalpindi. They said that the newly laid faulty pipelines in Rawalpindi should be rectified. More than 50% of the city's water wasted through leakages in the pipelines, which was a main reason for the mixing of sewage with water. In developed countries, there was very little or no leakages in the pipelines. However, Pakistan should at least follow the Asian model where only 8-12% water wasted through leakages. 

Medical Negligence in Pakistan

January 16, 2006


Dr Sohail Hashmi of PMDC said that Pakistan Medical and Dental Council (PMDC) lacked the authority to deal with the cases of medical negligence. According to him, registration of senior health professionals had been cancelled on account of medical negligence but the process was very lengthy. PMDC had revised its code of ethics (which was developed in 1978) to include modern as well as religious concepts.  “However, PMDC is not responsible for the entire health community including homeopathic doctors, tabibs, opticians, lady health workers, dais, quacks etc,” he clarified. He recommended formulation of a national policy for patient protection and regulation of appropriate health services delivery.
      Mr Lal Zameer narrated the incident of his wife’s death that happened due to negligence of a gynecologist. He said that his loss was irrecoverable, yet he had filed a case through The Network for Consumer Protection so that such incidents could be avoided in future.
      Referring to Mr Zameer’s case, Mr Batish Mehmood Tipu of The Network for Consumer Protection said that it was not only the patient who suffered due to medical negligence, but the entire family of the victim had to go through mental trauma. “Their agony was multiplied when their complaints were brushed off without any action,” he added. He said that numerous cases of medical negligence went unreported because of lack of accountability. He recommended that public interest lawyers should also be familiar with medical terminologies in order to deal with such cases. He urged the government to ensure registration of all medical practitioners as well as medical institutions in order to make them accountable.

Appraisal of Noise Levels and Noise Annoyance in Silence Zones of Rawalpindi and Islamabad
January 2, 2006

Dr Talib Lashari of Ministry of Health condemned the high levels of noise in silence zones by declaring it a serious concern for public health. He added that research and legislation regarding noise annoyance had been very limited despite the fact that this area also pertained to the Millennium Development Goals (MDGs). He also appreciated the efforts of the speakers to draw attention towards an important issue and urged adoption of a multi-sector approach to deal with it. He added that the seminar’s recommendations would be forwarded to the National Health Policy unit of Ministry of Health for necessary action.
      Saira Bano of Fatima Jinnah Women’s University discussed the levels of noise in the hospitals of Islamabad in which she particularly listed the negative impacts of noise annoyance on human health including loss of hearing, stress, sleep disturbance, tiredness etc. She lamented that Pakistan Environmental Protection Agency had not specified any standards for noise levels in the silence zones.  According to the findings of her study, major sources of noise include traffic, hospital visitors, hospital staff, paging etc.
      Nazima Shaheen of SDPI presented her study that focused on appraisal of noise level in hospitals of Rawalpindi. Her study indicated that aircrafts, traffic and attendants were the major sources of noise for the patients. She concluded that noise levels of casualty wards were higher than that of any other location. Her recommendations included public awareness raising, incorporation of speed barriers and installation of signboards near hospitals.
      Maria Khalid of Pakistan Institute of Nuclear Science and Technology (PINSTECH) discussed the high noise levels in schools and universities of Rawalpindi/Islamabad. She said that the high level of noise in schools negatively affected the academic performance of children along with posing serious health concerns. While discussing the role of noise barriers, she suggested that tree plantation was an effective way of noise reduction.

Picking and Pesticide Poisoning: Working Conditions of Cotton Pickers
February 20, 2006

For cotton pickers shouldering Pakistan’s most important industry, decent working conditions including higher wages and lower pesticide poisoning were demanded.
      Naila Hussain, a Lahore-based environment and development researcher, shared the findings of her research on working conditions of cotton pickers in Southern Punjab. She said that there had been a massive increase in the use of pesticides that posed serious threats to the health of the cotton pickers. She strongly criticized the multinationals for strategizing aggressive marketing of pesticides without highlighting any information related to their ill effects on human health.  She stated that eye infections, skin irritation, respiratory diseases, including asthma and kidney problems, were common among cotton pickers due to their high exposure to poisonous residues. “Lack of awareness and poverty exacerbates the situation,” she added. Her recommendations included political will and coordinated effort to implement farmer-friendly policies and practices such as availability of toxicity test facility in cotton growing areas. She strongly recommended a ban on certain pesticides such as DDT.
      Dr Karin Astrid Siegman of SDPI presented a comparative analysis of the working conditions of cotton pickers before and after the end of quota restrictions in Textile & Clothing (T & C) trade. She explained that before the quota expiry, women workers faced lack of alternative income sources and low bargaining power because of poor education, poverty, gender discrimination and labor surplus. “In addition, they faced sexual harassment and pesticide-induced health problems,” she said. “The WTO Agreement on Textile & Clothing (ATC) phased out the quota system governing T&C trade in January 2005, however, no positive change took place in the working conditions of cotton pickers,” she added. She stated that the same low wages prevailed and were accompanied by price hike and increased pesticide use. Her recommendations included awareness-raising of cotton growers, pickers, pesticide companies, and government officials along with the application of protective/labor laws for workers in agriculture sector and incentives for contamination-free cotton such as better wages for pickers.

Development versus Environmental Concerns: Removal of Trees in Islamabad
January 23, 2006

The speakers and participants urged the Capital Development Authority (CDA) to stop removal of trees in Islamabad and to prioritize the development needs of the city. The Capital Development Authority was in the dock and its official from Environment Directorate had to cut a sorry figure for anti-tree drive of the civic body. The speakers and participants pointed out that anti-environment activities in the city and Margalla Hills were against the Master Plan as well as Margalla Hills National Park legislation. The CDA plans such as to develop golf courses at Fatima Jinnah Park, Margalla Hills and Jinnah Super Market also came under severe criticism during the seminar. The participants demanded an efficient mass transit system to deal with the traffic issues instead of relying solely on road expansion, as that would eventually lead to deterioration of the environment and loss of biodiversity in the city.
      Wajahat Latif of Margalla Hill Society said that removal of trees for expansion of roads was a short-term solution to the problem that would prove inadequate in the long run. He emphasized the need for effective traffic management to deal with traffic-related problems. Strongly opposing the construction of steel/concrete structures in public parks, he demanded citizen's participation in the decision-making process. He said that we should not go for ill-conceived projects like golf courses in a city, which could not provide shelter to dwellers of Katchi Abaadis. He said that his Society had filed a lawsuit against construction plan at Dar-e-Jangla in the Margalla Hills National Park but awaited hearing before the Supreme Court.
      Aurangzeb Awan of CDA said that the CDA was removing trees not just for the expansion of roads and construction of buildings but also for getting rid of paper mulberry trees that cause allergy to residents of the city. However, no trees were being removed from designated green belts, he maintained. He claimed that the CDA also planted over 23m saplings and consultations with civil society members took place before the removal of trees. He maintained that dualization of roads saved citizens traveling time and helped to control emission of pollutants from vehicles, the latter being an environmental concern as well.
      A journalist observed that Environment Directorate of the CDA was a helpless body before its Road Directorate. He questioned Aurangzeb Awan of CDA Environment Directorate why the trees in front of Presidency Colony were cut when enough space was available for the dualization of Barri Imam Road. Mr Awan said that those trees were not part of the planning. He could not give an answer to the question why three rows of the trees were implanted at a space about which the authority knew it would be used for the road. Trees take decades to grow while roads take a few years to get broken and re-carpeted, he said.
      A participant from an NGO criticized CDA for not carrying out Environment Impact Assessment (EIA) or Initial Environment Examination (IEE), which were obligatory under the law for projects like construction of a hotel at Pir Sohawa. He said that since the induction of Kamran Lashari as CDA chief, Islamabad had a lot of flowers and beautification but at the same time, trees were cut in the name of development and commercialization of green belt was taking place. Another participant said that such acts were performed for political and economic reasons, as cutting trees and building roads generated commission for bureaucrats of the authority. Professor Naeem Khan shared the details of the trees that had been cut in sector F-7/3 and Blue Area for the purpose of beautification of the city and construction of a food park, respectively. However, quite contrary to the purpose, the removal of trees had resulted in sewerage problems, which in turn, posed serious threats to the public health.



SDPI Center for Capacity Building




In line with its mandate, SDPI Center for Capacity Building (CCB) provides high quality training to the public, private and NGO sector organizations and individuals to strengthen institutions and build capacity for sustainable development. During January-February 2006, CCB conducted the following trainings:

1.         Monitoring and Evaluation of Projects             January 3-5

An objective and meaningful system of monitoring and evaluation facilitates the success and sustainability of projects. The participants were keen to learn the modern tools and techniques of monitoring and evaluation. Participants learned to use MS Project software to monitor project activities. They reviewed their existing monitoring and evaluation formats and incorporated improvements. The workshop objectives were to:
  • understand the principles and procedures for effective project monitoring and evaluation;
  • formulate and use the logical framework analysis to monitor and evaluate projects;
  • use work breakdown structures and MS Project to monitor project efficiency;
  • improve their ability to gather, manage, and communicate project information; and
  • learn methods to evaluate project effectiveness and impact.

2.       Environmental Impact Assessment of Development Projects
      January 24-26

EIA aims at assessing environmental impact at an early stage of project planning, design and development and building into the project alternative ways and means to mitigate the adverse effects. An EIA results in environment-friendly and cost-effective projects. It is an essential part of project design and appraisal. Currently, it has been emphasized at many private and public fora that there is a dire need for institutional and personnel capacity-building in this area.
      Participants from national, international and foreign agencies, industrial sector, academia and corporate sector attended the training. They also carried out an EIA of a development project of proposed Islamabad Railway Station.
      The overarching aim of this training workshop was to enable the participants to build their capacity to integrate environmental concerns in project proposals. The specific objectives were to enable the participants to:
·        learn the principles, skills, procedures and practices of integrating environment through EIA;
·        become aware of the legal and regulatory obligations of integrating environment in development projects;
·        familiarize themselves with the techniques of getting public participation and integrate socio-economic aspects in development projects; and
·        enable the participants to conduct an EIA study for a development project.

3.       Project Proposal Development
      February 14-16
Organizations that depend on external grants to achieve their objectives have to apply various sources to obtain project funding. However, most organizations are often not aware of the basic requirements of a project proposal. As a result, a project proposal may be rejected or unnecessarily delayed, because it does not meet the required criteria. This workshop was designed to help participants to understand the principles and formats of writing an effective project proposal. It provided the trainees an opportunity to prepare, present and defend a project proposal.
      The training workshop was designed for managers involved in project planning and management, social and infrastructure development, representatives of national and international NGOs, academia, government officials and policy and decision-makers.
At the end of the workshop, the participants were able to:
·         understand the components of a project proposal;
·         apply the project planning tools in writing proposals;
·         develop a proposal according to the required format;
·         apply appropriate writing skills for better proposal quality; and
·         present and defend their proposals.




Recent Publications


Anatomy of a Peoples’ Rights Movement: A Case Study of the Sarhad Awami Forestry Ittehad (SAFI)
By Shaheen Rafi Khan, Moeed Yusuf (SDPI) and Riaz Ahmed (SUNGI)
Working paper series # 103; pp. 16; Price: Rs. 60.00

Abstract
The Sarhad Awami Forestry Ittehad (SAFI), arguably, represents the only formal attempt to engage in forestry reform advocacy and political activism. Given the importance of developing an understanding of the factors that may lead to the success of peoples’ movements in Pakistan, we conduct a careful evaluation of SAFI’s impact on the forestry reform process and, in general, in terms of sustainable forest management.
      SAFI is active in the Malakand and Hazara divisions of NWFP, and in the Southern District and Kurram Agency in the Federally Administered Tribal Areas (FATA). The rapidly eroding capability of the State to manage its forests amicably and its consequent impact upon communities and the environment  provided the backdrop for an organization like SAFI.
      SAFI emerged with two broad objectives. The first was to mobilize community resistance against the excesses committed by the large forest owners, the contractors and the forest department. The second objective was to convert such mobilization into a critical mass for policy advocacy. SAFI’s successes can be assessed at three levels: policy advocacy, organized resistance and management interventions. In terms of policy advocacy, SAFI has created widespread awareness about the forestry reforms, engaging with communities and other relevant stakeholders in consultations and discussions. SAFI also conducted successful organized resistance in Hazara and Dir-Kohistan to support the cause of the disempowered communities.  It has also made management interventions bringing the realization among public functionaries that partnership with communities offers prospects for sustainable management of forests.
      SAFI’s experience provides valuable lessons for broader peoples’ movements in the country. The organization’s experience underscores the need for such movements to involve an extremely broad set of stakeholders in consultations. It further highlights the need for a sufficiently large, formally trained membership base, especially if a movement draws upon volunteers as SAFI does. Finally, given the nature of such efforts, the issue of financial sustainability must be addressed by diversifying income sources so that the movement is not solely dependant on donor support.
What Comes After the Quota Went? Effects of and Responses to the ATC Expiry

By Karin Astrid Siegmann and Atif Nasim

Policy Brief series # 21; pp. 19; Price: Rs. 60.00

Abstract
The global environment after the expiry of the quota system in textiles and clothing (T&C) trade poses formidable challenges to human development in Pakistan. Increased quality and price competition in the post-ATC scenario provides an opportunity for some segments of the T&C sector – but a threat to the most labour-intensive ones. As quality and quantity of employment were largely ignored factors in the preparations for the Agreement on Textiles and Clothing’s (ATC’s) abolition in Pakistan, potential job and wage losses are feared, in garment manufacturing in particular. Unskilled and female workers are most vulnerable.
Challenges also provide the opportunity for change. The following recommendations are put forward in this policy brief:
l    Skills improvement in both skilled and unskilled occupations in the T&C sector should be undertaken by government and industry. This would reduce the vulnerability of these occupations to adverse effects of structural change, and at the same time enhance the competitiveness of the T&C sector.
l    Likewise, the implementation of core labour standards at the national, regional and global levels would protect, if not improve, working conditions for millions of workers and provide a more level playing field for competition in the post-quota era.
l    Mitigation measures should be implemented as soon as possible for vulnerable workers who have - or might - become victims of structural change in the T&C industry.
l    In these efforts, a focus on women workers in skill development and mitigation measures is required. As unskilled workers, women face more precarious working conditions and fewer job alternatives. Very few highly qualified and skilled women enter managerial positions, and this lack is another factor in depriving the country of development opportunities.
l    Awareness should be raised amongst cultivators and pickers about the health hazards associated with pesticide application. Incentives to reduce cotton contamination should be provided to cotton growers in a manner that can be passed on to female pickers. Such measures would improve working conditions and product value-addition at the same time.
l    Broadened and strengthened collaboration between workers, employers, and the Government is necessary to reach these objectives.
l Overall, social development in Pakistan needs to be emphasised. Investment in, for example, health and education, benefits human development directly, but is also a pre-requisite for more competitive and sustainable industrial development.


Subscribe to: Posts (Atom)

USE ME

Share