The
phrase ‘from Karachi to Khyber’ appears to have taken a different connotation.
While the phrase was earlier used to describe the richness of the land of
sacred souls, it now reflects the breadth of bloodbath across the country. Are
we really heading backwards to an age of barbarianism? There could be several
explanations to the question of why the country seems to be in a perennial
state of conflicts. However, the answers to the question may not be that
difficult after all.
A
study conducted by the Sustainable Development Policy Institute (SDPI) sought
to answer this question, focusing specifically on the role of the private
sector in mitigating conflicts in the country. With a rich household-level
survey across Pakistan, the study sheds light on community perceptions about
the role of businesses with regards to mitigating peace.
Significantly,
large percentages of respondents think that lack of social services and lack of
employment opportunities are issues contributing to conflicts in the country. A
large percentage of respondents (48 per cent) think that lack of basic
necessities such as water and other utilities are also contributing to
conflicts. The study shows that lack of social services, unemployment, and high
cost of living are some of the most cited issues confronting the Pakistani
society (note that two these issues are also the most cited ones as
contributing to conflicts in the country, as mentioned before).
Even
though most respondents (over 93 per cent) think that business expansion is
beneficial for communities, a high percentage agrees to the idea of businesses’
involvement in local area development. Again, lack of employment, lack of
energy and other utilities, and lack of social services are considered by most
respondents as issues where private sector can help.
An
interesting finding from the study is the response to ‘factors preventing
business engagement in peace-building’. Responses widely varied, covering
issues such as lack of legislation, corruption, political resistance and risks
to business, among others. It is important to note, however, that even though
these issues may prevent proactive peace measures on part of businesses,
partnerships with influential rent-seeking groups are also incompatible with a
peaceful environment in the longer run.
So
what are the lessons to be learnt, and demands made, before we caste our votes
later this year. And what should be the lessons for those now shouting slogans
to come into power? Regardless of the structure of power, strategic peace in
the country demands participation from all stakeholders in the conflict milieu.
The study by SDPI identifies three broad sets of stakeholders, and proposes
recommendations along the following lines.
Public
Sector: Strong business does not always entail a strong private sector. There
could be a leader in a certain market with flourishing business (since it
enjoys a large market share), while market barriers prevent entry of other
businesses. This implies a weak private sector despite strong businesses. On
the other hand, the influence of regulatory bodies to enforce compliance even
of existing laws appears to be very weak.
A
weak private sector in the country coupled with a weak regulatory structure
provides perfect opportunity for a middle ground between two contesting schools
of thought that advocate for strengthening one against the other. While the
private sector needs to be strengthened by opening up markets and allowing a
fair and competitive business environment, it is equally important to
strengthen the regulatory structure that also ensures inclusive business
practices. These include ensuring local employment and strict compliance to
regulations, such as the Environmental Protection Act.
Opening
up markets may incentivise formalisation of informal businesses and would also
create opportunities for small and medium enterprises to become active players
in the economy. Parallel development of markets and regulatory structure may
ultimately lead to peaceful as well as sustainable economies.
Businesses:
A more strategic approach towards inclusive communities on part of large
businesses could be to include local small and medium enterprises (SMEs) in
their supply-chains. Doing so can also help formalize many operating informally
at the local level and fits well with the argument on strengthening the private
sector as mentioned above.
Businesses
also need to take note of the failure of social service delivery wherever they
operate. A useful approach to Corporate Social Responsibility (CSR) in that
context could be to institutionalize development programs within the business
model. For example, the Hashoo Group of Companies has established and funds the
Hashoo Foundation, an NGO actively working on various development themes. The
Hashoo Foundation is to a large extent self-sustainable and not vulnerable to
availability of funds from international donors.
Communities
and the Civil Society: The civil society networks provide an excellent platform
for organizing communities. Civil society organizations (CSO) not only work on
different thematic areas of development but also provide a channel for
community interface across a wide range of actors including government and
businesses. Communities at the local level may have to be more acceptable of
CSOs in so far as their inclusion in societal issues is concerned.
Community-led
organizations and associations, in turn, should work to make themselves
sustainable. For example, ExtraCorp, a project of the School of Leadership
Foundation (SOLF) in Karachi, provides vocational and managerial training to
people with disability. Their trainees work as a small enterprise producing
handicrafts. ExtraCorp now generates enough business on its own, creating
livelihoods for those with disabilities.
Our
private sector also needs to innovate its role towards promotion of peace in
the country. We have examples from other conflict prone countries such as Sri
Lanka, Nepal and Philippines where private sector played a crucial role for a
sustained time period in bringing down the intensity of conflict through
promotion of CSR, employment and livelihood opportunities at the local level.
It is also time now that our Chambers of Commerce and Pakistan Business Council
look into such initiatives.
The
authors are Economists at Sustainable Development Policy Institute (SDPI)
|
