Wednesday, November 1, 2006

-Ehsan Ullah Batth, Charge d' Affaires, Pakistan Embassy, Kathmandu

Nepal and Pakistan , the two countries and its people are not only linked by historical and cultural ties, but also by regional commonalities. Pakistan highly values its friendship with Nepal and its people.

As you are aware, since establishment of the diplomatic ties in early sixties, relations between Pakistan and Nepal are based on the principles of sovereign equality, respect for territorial integrity and non-interference in each other’s internal affairs. In the political and diplomatic sphere, the excellent state of relations between the two countries is underscored by the absence of any problem or disagreement and sharing of similar, if not identical views on regional and international issues.

The world is fast changing. Things around us are more unpredictable than ever before. Winds of change are blowing across the globe, bringing in their wake, challenges, as well as opportunities. One is likely to be left to the perils of the wind if one does not adapt to these changes.

The changes are numerous with far reaching implications for the entire world. Post cold war era has seen paradigm shift in international security and political environment. Cold war has been replaced by the war on terror. The enemy is elusive and operates from the shadows. It cannot be contained or eliminated by conventional means. Conflicts in various parts of the world are on the rise and becoming more intense. Economic integration is also on the rise with emerging regional blocks. Traditional trade barriers are near to extinction, with new rules of international commerce and trade on the rise. Large number of new states with abundant natural resources has emerged, evoking fierce competition between the states to reach out to these nascent economies for political and economic gains. Some countries have assumed ever greater geo-strategic importance in the post cold war era.

Pakistan or for that matter any country in the world cannot live in isolation and remain immune to such changes. Fully cognizant of this reality, we made a choice between two alternatives: to succumb to changes or to make the most of the opportunities. We chose the latter-get the most out of opportunities.

In this context, Pakistan ’s priorities can be categorized into domestic, regional and international. Internally, economic and social development and political stability. Regionally, peaceful co existence with India by peaceful resolution of all the outstanding disputes including Jammu and Kashmir, without which peace will remain elusive; to be an anchor of peace and hub of economic and commercial activity in the region and conduit to Central Asia. Internationally, play an effective and constructive role at all the international fora, remain an active partner of the international community in the fight against international terrorism and continue with efforts to create better understanding between the West and the Muslim world.

Let me first briefly touch upon the economic and political reforms that have been undertaken by my government. About six years ago, the government carried out comprehensive economic and political reforms. These reforms have begun to bear fruit. Today, according to the World Bank, Pakistan is among the top 10 growing economies of the world. The poverty has declined by 5% and GDP growth is hovering between 6.5-7.5%. Per Capita income is around US$ 850 that was only around $ 240 about five years ago and foreign exchange reserves is over US$ 13 billion. The services sector, particularly telecom and information technology have seen a phenomenal growth. With English speaking workforce having entrepreneurial skills, Pakistan is also attracting greater foreign investment than before.

Without political stability, economic development remains vulnerable. The political reforms introduced several years ago have resulted in democracy going down to the grassroots level, with development carried out by the local people themselves. 33% of the seats for the women in the provincial and national assembly have resulted in greater empowerment of the women. It will be for the first time in decades that the sitting assemblies will complete their full term. There is a sea change in political and economic milieu of the country.

Without proper infrastructure, economic development remains stunted. The construction of Gawadar deep sea port, coastal highway and other road networks leading up to Afghanistan via Chamman and Torkham will open up road links to Central Asia not only for Pakistan but also for the rest of the world.

Pakistan sits at the confluence of four historic and very important regions of the world. Central Asia in the North, Arabian Sea and the oil rich Gulf region in the South, Iran linking Europe in the West and emerging China in the North East. This geographic locale makes Pakistan a potential hub of regional and international economic and commercial activity. However, realization of this potential depends on internal and external factors, foremost being stability both, inside and outside. Economic and political stability coupled with requisite infrastructure within and peace and stability outside are vital for us to assume the role of a regional hub.

Changes are overdue in South Asian region, abode to about one-fifth of humanity. It is up to the leadership of this region whether it buckles down under the baggage of the past, succumbs to political inertia and looses historic opportunity that these changes are bringing about or rises to the occasion and capitalizes on the innumerable opportunities, adopting out of the box thinking in the greater interest of the region and its people.

Peace in the region remains the first and foremost priority of Pakistan . It is our firm belief that without peace there can be no lasting stability, and without lasting stability, goals of economic and social development, which all of us cherish, will remain in the realm of dreams. The most impeding factor on the path to lasting peace in the South Asian region is the Kashmir dispute. Its effects are not limited to Pakistan and India but the repercussions are felt in the entire region, as well as the world at large. The unresolved Kashmir issue has not only remained a stumbling block in improvement of relations between Pakistan and India but it has also hampered the greater intra-regional economic and social interaction, which is so vital for the betterment of the peoples of this region. It has also stunted the growth of potentially very effective regional organization like SAARC.

Economic progress and social development of the region will remain a dream if festering issues between Pakistan and India remain unresolved. The first step towards peace and prosperity in the region, therefore, is lasting peace between the two countries, which can only be achieved by resolving all the outstanding issues.

To achieve this, we have to think afresh and innovatively. President Pervez Musharraf's bold initiatives, reciprocated by India to some extent, have led to a greater, though still fragile, confidence between the two countries. The composite dialogue, despite hitting some bumps, is moving ahead - albeit very slowly. Confidence building measures between the two countries, such as bus and train service as well as slightly increased people to people contact etc. are numerous facets of the dialogue. However, it must be pointed out that the window of opportunity is small, and if we are sincere in resolving the issue, we will have to act sooner rather than latter and take bold and decisive decisions. The nuclearization of South Asia makes it all the more expedient to resolve all the outstanding disputes, and reverting to past practices could be dangerous for the entire region. The regional and international environment has never been so conducive for resolving our disputes.

In the regional context, but with global implications, Pakistan wants to see peace in Afghanistan . Afghanistan is an important neighbour and without stable and prosperous Afghanistan , Pakistan can become a regional hub but with a vital link missing. Stable Afghanistan is key to stable and prosperous Pakistan and the rest of the region. It is with this conviction that Pakistan has always been striving to explore all the possible avenues, which would bring peace and stability in Afghanistan . Pakistan is an active member of the Tripartite Commission comprising Pakistan , Afghanistan and the USA and will continue to play active role in realization of lasting peace, stability and prosperity in Afghanistan .

We believe that one of the biggest hurdles in economic and social development and cooperative relations between the countries is the scourge of international terrorism. Fight against international terrorism, therefore, is among the top priorities of Pakistan . Our role in this regard does not need any embellishing. In fact our efforts pre-date 9/11. Our President has twice escaped attempt on his life and so has the Prime Minister once. It would not be out of place to say that the country that has suffered most from terrorism is Pakistan . Our efforts in this regard and cooperation with the international community, therefore, emanates from our own convictions. We have lost more soldiers on the Pak-Afghan border fighting out terrorists than the entire international coalition forces in Afghanistan .

We believe that the international terrorism is responsible for the emerging chasm between the West and the Muslim world and the so-called theory of “Clash of Civilizations” seems to be gaining ground. The existing trend, which favors this theory, is extremely dangerous and will make the world more unsafe if not checked. Here I would like to highlight President’s vision of Enlightened Moderation, which talks about addressing root causes of terrorism emanating from historical injustices. It urges West to finding resolution of all political disputes afflicting Muslim societies particularly Palestine and Kashmir disputes. It advocates that the Muslims should reject the terrorism and extremism in order to concentrate fully on internal socioeconomic developments.

We wish amicable and early resolution of Iran nuclear issue through dialogue and peaceful means. Early restoration of normalcy in Iraq is vital for peace and stability in the Middle East and beyond. Festering problem of Palestine , which has consumed thousands of lives, begs urgent, just and sincere efforts on the part of the international community.

Pakistan attaches great importance to the regional and international bodies, such as the SAARC, ECO, OIC and the United Nations. We are keen to play even more active and positive role in these organizations to the benefit of all.

In conclusion, I would say that our priority internally would be to suppress and eradicate extremism and intolerance from our society, sustain our economic growth, convert Pakistan into a regional hub for trade and energy, transfer our economic gains to the people and alleviate poverty. Moreover, we have to concentrate on human resources development through improved education and health facilities at every level. We have to consolidate our democracy. In addition, we have to maintain and further our international diplomatic stature.

Regionally, we would like composite dialogue with India to succeed and Jammu and Kashmir dispute resolved according to the satisfaction of Pakistan , India and most importantly the people of Kashmir . We would like to see peace and stability in Afghanistan .

Globally, we would continue to strive for better understanding between the West and the Muslim world. Pakistan would continue to play a major role in war against menace of terrorism.

Our priorities have only one objective: to create a state that is model to be emulated. And in achievement of that objective, in the words of President Musharraf “ Pakistan still has a long way to go,” for which we would need to have wisdom, courage and dynamism.

Facing Asia 's New Challenges

Eliminating poverty is within the region’s grasp, but only if serious inequities are addressed first, ADB’s Annual Meeting in Hyderabad heard in May

By Graham Dwyer, External Relations Specialist, ADB, Philippines

HYDERABAD , INDIA - Asia has entered a period of immense change in which extreme poverty could be almost eradicated in the not-too-distant future, if economic growth remains strong and its benefits are more widely shared.

Yet, nearly 1.9 billion people in the region are poor, living on less than $2 a day. As the region grows more prosperous, the widening gap between rich and poor must be addressed.

That was the message of ADB President Haruhiko Kuroda to the Board of Governors as he wrapped up the 39 Annual Meeting in Hyderabad , India .

The Annual Meeting attracted more than 2,000 participants to the Hyderabad International Convention Center from 3 to 6 May, including senior government officials, academics, businesspeople, investment bankers, media, and representatives of international organizations and civil society.

Set within India’s fastest growing high- tech corridor, the meeting served as a forum for lively discussion on pressing issues of the day, including global imbalances, ADB’s partnership with India and South Asia, renewable energy and climate change, and achieving the Millennium Development Goals (MDGs).

“Absolute poverty is declining. But in equality is growing,” Mr. Kuroda told the opening session in a speech entitled the “Two Faces of Asia.”

“Poverty—in all its aspects—is still our region’s most daunting problem. Thus, the abiding passion, vision, and mission of the Asian Development Bank continue to be the elimination of poverty.”

Mr. Kuroda said that in the medium term, there is much that can be done to begin closing the gaps in incomes and opportunities. “Pragmatic, sensible solutions for inclusive social development and sustained, equitable growth; a focus on good governance; and a commitment to environmental responsibility will benefit everyone in the region, and they will certainly benefit the poor,” he said.

He stressed that achieving the MDGs will require substantial investment, particularly in infrastructure, to sustain high economic growth and extend basic services to the poor. He also highlighted the need to substantially increase private sector participation.

But in the long term, new thinking would be needed to solve current and future problems, including rising unemployment, aging populations, rapid urbanization, as well as the widening gap between rich and poor.

Mr. Kuroda said that to this end, he would convene a panel of eminent persons to provide ADB with insights on the region’s future. The panel’s views will be discussed at the 2007 Annual Meeting in Kyoto , Japan , and will help guide ADB in a comprehensive, consultative review of its Long- Term Strategic Framework. “This will also help refine ADB’s role in a changing Asia and Pacific,” he said.

Acknowledging ADB’s role in the region, India ’s Prime Minister Manmohan Singh told the opening session that “ADB has acquired a global relevance because of Asia ’s rising global profile.”

“Today, as we seek to further accelerate our growth process, we look to an even more cooperative relationship with ADB,” he said. “We also commit ourselves to strengthening ADB as an instrument of development and of improved governance in our region.”

His comments were echoed by P Chidambaram, India ’s Minister of Finance and Chairman of the ADB Board of Governors. ‘ ADB is uniquely positioned to transfer the benefits of its experience from one economy to another,” Mr. Chidambaram said. “It can provide not only the financial resources, but also the best possible practices in its areas of expertise.”

Given the venue for the Annual Meeting, there was considerable focus during the week on ADB’s still growing partnership with India . A series of special sessions— under the overall heading of “Advantage India”—gave an opportunity for the ADB President, as well as Indian central and local government officials and figures from industry and finance, to discuss the country’s progress and the challenges it still faces.

“ India is very much an unfolding story of development success,” Mr. Kuroda said at the opening of these sessions. “Its continued economic and social progress would give a tremendous boost to the achievement of the Millennium Development Goals in the Asia and Pacific region—and for the world as a whole.”

Mr. Kuroda pointed out that a remark able sense of optimism pervades the country. “A great deal remains to be done but I believe that India is headed in the right direction,” he said. “I would like to complement the government of India on its prudent and effective management of the economy, and for continuing on its path of reforms.”

On the sidelines of the Annual Meeting, the seminar series generated large audiences and media coverage as experts debated such subjects as knowledge-based economies, e-services, Basel II, labor markets, sustainable energy, and regional integration. President Kuroda joined ADB governors in a special session on global imbalances for the governors’ seminar.

The meeting generated record attendance by non-government organizations— more than 150—that took part in a special program during the week, including a session with the President and ADB senior management, and panels on health, climate change, and ADB’s consultation and disclosure processes. Media turnout for the Annual Meeting was also the highest for several years with more than 400 registered.

“It has been a privilege to meet with you to discuss the great progress of the Asia and Pacific region, and how we will ensure this progress continues,” Mr. Kuroda said in concluding the Annual Meeting.

“I would like to reaffirm, on behalf of the ADB Board of Directors, Management, and staff, our continued commitment to working with all of you to achieve the MDGs and realize the dream of a region free of poverty.”

Text courtesy: ADB Review August/October 2006 issue-ed.