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A political economy of communalism in south Asia

Hyderbad: “You Strike & We will Strike back”.

The message of ‘21/2 Hyderabad serial terror attack

By Feroze Mithiborwala

The strategic& political target of the terror attack, is the historic 2-day Strike of the Working classes, where more than 12 core or 120 million workers both from the organized & unorganized sectors participated & brought India to a halt.

This working class strike surmounted all calculations due to the scale at which the enraged working classes participated. This strike has shaken up the corporate-political elite & that is why they have struck back with a serial terror attack, where now more than 15 citizens have died & 50 grievously injured. The terror attack was orchestrated in Dilsukh Nagar, where there is a busy market & many cinema halls.

If the working class unrest takes the proportions which we witness in many nations across the world such as Greece & Spain, the ruling elite will witness a massive crisis, due to the growing burdens of price-rise, decreasing wages, increasing scams, spiraling inflation, the growing insecurity of the peasantry, workers& laboring classes, as well as the ever-widening rich-poor divide.

Continue reading A political economy of communalism in south Asia

Pakistan – The Missplaced Assumptions of Military Gaurdians

By: Manzur Ejaz, Wichaar.com

The other day a very respectable political analyst made a surprising claim that Pakistan’s military is the only institution genuinely concerned about prevailing conditions of the country. Clearly he was specifically referring to dead-locked Pak-US relations where political parties, numbed or scared by anti-America populism, cannot come together to find a viable solution. One can assume that such sentiments must have been communicated to him by the highest level of the core state. However, the problem is that the fearsome anti-US jinni was created by the military and now it wants the civilians to put it back in the bottle.

Continue reading Pakistan – The Missplaced Assumptions of Military Gaurdians

Must read: ‘The path of isolation’ – by Asma Jahangir

PAKISTAN remains in the dog house of the international community mainly because its rulers refuse to accept that violence and conflict within the country are escalating and have serious ramifications for the entire region.

Pakistan’s friends fear a severe economic meltdown and there are widespread concerns over continuing corruption which has also partly impaired governance.

Amazingly, while militant non-state actors are knocking down our doors and have successfully solidified their networks, our civil institutions are busy rubbing each others’ noses in the dirt — perhaps for sound reasons but the rubbing is excessive.

Constant political bickering keeps policymakers, the media, the judiciary and the public distracted from the risks we face.

Corruption is rife in all governments and institutions. Sadly, selective investigations often remain inconclusive. Ironically, most of those accused of corruption brazenly say they have been singled out, rather than plead innocence and prove it too.

Continue reading Must read: ‘The path of isolation’ – by Asma Jahangir

The Future of History – By Francis Fukuyama

Can Liberal Democracy Survive the Decline of the Middle Class?

Stagnating wages and growing inequality will soon threaten the stability of con­temporary liberal democracies and dethrone democratic ideology as it is now understood. What is needed is a new populist ideology that offers a realistic path to healthy middle-class societies and robust democracies.

Something strange is going on in the world today. The global financial crisis that began in 2008 and the ongoing crisis of the euro are both products of the model of lightly regulated financial capitalism that emerged over the past three decades. Yet despite widespread anger at Wall Street bailouts, there has been no great upsurge of left-wing American populism in response. It is conceivable that the Occupy Wall Street movement will gain traction, but the most dynamic recent populist movement to date has been the right-wing Tea Party, whose main target is the regulatory state that seeks to protect ordinary people from financial speculators. Something similar is true in Europe as well, where the left is anemic and right-wing populist parties are on the move.

There are several reasons for this lack of left-wing mobilization, but chief among them is a failure in the realm of ideas. For the past generation, the ideological high ground on economic issues has been held by a libertarian right. The left has not been able to make a plausible case for an agenda other than a return to an unaffordable form of old-fashioned social democracy. This absence of a plausible progressive counter­narrative is unhealthy, because competition is good for intellectual ­debate just as it is for economic activity. And serious intellectual debate is urgently needed, since the current form of globalized capitalism is eroding the middle-class social base on which liberal democracy rests.

THE DEMOCRATIC WAVE

Social forces and conditions do not simply “determine” ideologies, as Karl Marx once maintained, but ideas do not become powerful unless they speak to the concerns of large numbers of ordinary people. Liberal democracy is the default ideology around much of the world today in part because it responds to and is facilitated by certain socioeconomic structures. Changes in those structures may have ideological consequences, just as ideological changes may have socioeconomic consequences

Read more »Foreign Affairs

http://www.foreignaffairs.com/articles/136782/francis-fukuyama/the-future-of-history

Top of Chinese wealthy’s wish list? To leave China

by Wichaar Desk

BEIJING (AP) — Chinese millionaire Su builds skyscrapers in Beijing and is one of the people powering China’s economy on its path to becoming the world’s biggest.

He sits at the top of a country — economy booming, influence spreading, military swelling — widely expected to dominate the 21st century.

Yet the property developer shares something surprising with many newly rich in China: he’s looking forward to the day he can leave.

Su’s reasons: He wants to protect his assets, he has to watch what he says in China and wants a second child, something against the law for many Chinese.

The millionaire spoke to The Associated Press on condition that only his surname was used because of fears of government reprisals that could damage his business.

China’s richest are increasingly investing abroad to get a foreign passport, to make international business and travel easier but also to give them a way out of China.

The United States is the most popular destination for Chinese emigrants, with rich Chinese praising its education and healthcare systems. Last year, nearly 68,000 Chinese-born people became legal permanent residents of the U.S., seven percent of the total and second only to those born in Mexico. Canada and Australia are also popular. ….

Read more → WICHAAR

Military strategy and the flight of capital – by Dr Manzur Ejaz

The Malaysian Consul General, General Khalid Abdul Razzaq, told the press that in the last few years, about 700 Pakistanis had transferred Rs one trillion and 80 billion to his country in a specific programme. If one includes the most popular places for Pakistani capital in the Gulf States, Europe and the US, the transferred amount would be in the hundreds of billions of dollars. If capital is flying out so ferociously, the Pakistani economy has a very dim future. The more depressing aspect is that the policies that created such conditions are not changing in the foreseeable future.

First of all, it is mindboggling how a country wracked by all kinds of law and order problems and power shortages can still generate such a mammoth surplus that is being transferred abroad. This reflects the vibrancy and tenacity of the Pakistani population that it can survive against all odds the way it has been doing for centuries. Probably, this is one of the reasons that our rulers, specifically the military, are continuing the perilous policies that they adopted three decades ago.

Last month, Pakistan’s economic division estimated that the Pakistani economy has suffered losses of about $ 68 billion due to the war on terror. However, the figure was based on certain unproven assumptions and less than solid stipulations. It seemed that the figure was touted in the international press to convince foreign governments about the cost Pakistan is bearing for the war on terrorism and tell them that their aid is too little when compared to the losses. One could have questioned Pakistan’s projected loss figure on various grounds but the capital transfer to Malaysia cannot be questioned because it is coming from the horse’s mouth.

Every economist knows such a huge surplus that is being transferred abroad is gained through extreme exploitation and skimming of the masses. The surplus, whatever way it is gained, is called ‘the savings of an economy’. And, if the savings are not invested back into the economy, the country can never grow — on the contrary it can only degenerate. Pakistan’s rate of inflation, rising poverty and unemployment, which may be as high as 70 percent if one includes the redundant rural workforce, is a manifestation of how the export of Pakistani savings abroad has jeopardised the revival of the economy.

The migration of Pakistani savings to other countries shows that its top wealth holders — whatever their percentage — do not see a safe future in Pakistan. Insecurity is the fundamental reason for such a prevalent view among prosperous Pakistanis. The rise of religious extremism and acceleration of jihadism through the Taliban, al Qaeda and other private militias is the root cause of insecurity in Pakistan. Therefore, the state institutions that have given rise to such forces are directly responsible for the disaster Pakistan is facing.

The flight of capital from Pakistan started during the 1970s and 1980s, long before 9/11 and the US invasion of Afghanistan. Rising sectarianism in the country and ethnic violence in Karachi, engineered by secret agencies with no US input, started scaring potential domestic and foreign investors. It is interesting that this violence-ridden environment opened another chapter of economic plundering in Pakistan by all kinds of exploiters. The attitude had been to squeeze as much as possible in the shortest period. Somehow, the deepening of anarchy provided more opportunity to the exploiting classes and we witnessed unprecedented accumulation of wealth and its transfer abroad in this period. Who is responsible for creating such conditions?

The Pakistan military’s doctrine of seeking strategic depth in Afghanistan with the help of the Taliban and al Qaeda added to the anarchy, insecurity and, strangely enough, economic exploitation. Military spending kept on rising at the expense of the impoverishment of the masses. Therefore, the policy of seeking strategic depth in Afghanistan has caused misery for common Pakistanis from many angles.

Despite the international pressure and domestic rejection, Pakistan’s military is continuing its failed policy. Besides the US, every international power, including China, has asked Pakistan to clean up its jihadi mess and change its direction from India obsession-cum-seeking-strategic depth in Afghanistan to being friendlier towards its neighbours. Domestically, after Mian Nawaz Sharif’s declaration that we should end hostilities towards India and that the military should get out of civilian matters, other than a few religious parties no mainstream political party shares the military’s strategic vision. The PPP and ANP may be toeing the military’s line for opportunistic reasons for the time being but both parties are far from India-haters.

Therefore, it is the military strategy that is causing insecurity in the country and forcing Pakistani capital to flee. The quantity of outflow of capital is so huge that a few billion from the US, any other country or international agencies (the World Bank and IMF) cannot compensate the losses. Therefore, the first sign of stability in Pakistan would be seen when Pakistani capital outflows stop and domestic savings start getting reinvested in the country.

On the contrary, if the military keeps walking on the suicidal path, the economy will be squeezed and, if India grows steadily, Pakistan will become irrelevant in the region. The outcome of the ongoing military strategy of Pakistan will result in just the opposite of what is desired.

Courtesy: WICHAAR.COM