These are not the atomic bombs or bullying intelligence agencies that keep a country alive and moving. States thrive and survive, if their people are empowered to decide for themselves independently.
-Mahmud Khan Achakzai, member national assembly of Pakistan
CONTENTS:
0 Aslam Effendi: A Free Marketeer in Pakistan
0 Behind the Macro-Economic Figures?
0 Letters
0 FreePakistan News Briefs
ASLAM EFFENDI: A FREE MARKETEER IN PAKISTAN
By Khalil Ahamad
In a country like Pakistan where welfarist and socialist thinking is dominant, where state is perfectly omnipotent, where every person is a committed statist, where individual, his freedoms and responsibilities are considered a luxury, and where the concept of free market is dismissed outrightly, isn't it surprising, and fortunate enough, too, to have a free marketeer who has written various books and articles on free market philosophy. And, isn't it surprising and unfortunate enough, too, that there is no publisher to print his books.
This writer is Aslam Effendi, unfortunately quite unknown in Pakistan. He is more than 77, and has to his credit three books that explain various aspects of the philosophy of liberty in a simple and intelligible language. He proudly remembers Robert Le Fevre as his late teacher, as 'an intellectual giant' and as 'one of the greatest if not the greatest authority on Individual Liberty.'
Here is a 'short biographical sketch' of Aslam Effendi:
He is an Afghan by birth. He is a manual therapist, essayist, columnist, polemicist, pacifist, individualist, orator, broadcaster, water-color painter and freedom philosopher. He has written extensively on individual liberty and world peace for various international journals such as the prestigious Reason, and also wrote a regular column for the Colorado Gazette Telegraph. His book titled HOW TO END ALL WARS FOREVER was highly praised by many a man of note. He assisted Bertrand Russell with the International War Crime Tribunal set up to try US President, Lyndon B. Johnson for war crimes in Vietnam. His family has produced 5 kings and 10 prime ministers; his great grandfather Dost Muhammad Khan is considered by historians as the second greatest hero in Afghan history, having conquered Afghanistan at the age of15; thereafter uniting it as one country; and an attempt to dethrone him resulted in the worst ever military defeat of the British (First Afghan War 1841-1842). His father Prince Abdur Rahman Effendi, during 1919, turned down an offer to supplant his cousin King Amanullah whom the British suspected of hobnobbing with Lenin. He is presently a citizen of the former princely state of Swat that was once a Mecca for the peace-loving Buddhists of Tibet, China and Japan.'
Aslam Effendi's first book is HOW TO END ALL WARS FOREVER. When he failed to find a publisher for it, he had to spend from his pocket to get it published. The result was a very badly printed book and that without a distributor, too. So, it remained dumped and could not find its way to the market. Then, the International Society for Individual Liberty, California, USA, took up the task of publishing this book for the world market. Its President, Vincent H. Miller rates this book as:
"Aslam has written a wonderful book entitled "In Search of Truth" which we intend to re-publish for a world market soon."
"His book is a Socratic dialogue between a young student who found a copy of Karl Marx's "Das Kapital" (which influenced his thinking) and a wise old (libertarian) professor. It takes place in Swat (Pakistan), where Aslam used to live. They discuss issues and the professor explains the fallacies -- in a kindly manner. I describe the book as Henry Hazlitt's "Economics in One Lesson" written in the style of Khalil Gibran's "The Prophet.""
"Effendi's book was published in Pakistan under the title "How to End All Wars Forever." I liked the original title "In Search of Truth" better. I've been working
on a large (private) foundation grant proposal, which if it comes through, will (among other things) enable us to publish the book. I may be mistaken but I think Aslam published it in a local dialect as well as in English." [Its Urdu translation is underway. KA]
". . . Regarding [this] book, I must say I am tremendously impressed. I sat down and read your manuscript from cover to cover at one sitting, something I rarely do. . .I think this marvelous creation has the potential to be an all-time classic, that it would have widespread appeal if translated into other languages. . .Incidentally, it is very well written. . ."
Here are some other opinions about this book:
"Thank you for sending me the typescript of your book. I have read it with great approval. Those unfamiliar with the ideas expressed in this book must live at the
cost and risk of their lives. Apart from this, it is a commendable specimen of English prose: but one thing that outweighed everything else in the book was the
remarks of the American lady who said you were damned."
[Bertrand Russell]
"I am delighted to send you my blessings for your book."
[Patrick Armstrong (Parliamentary Group for World Government, House of Commons, London)]
"I have gone through your book with considerable interest and would like to take this opportunity to congratulate you. . . I couldn't imagine that complex economic
ideas could be simplified to the extent you have done. . . I strongly feel that even a diehard communist would start thinking after reading your book. Indeed it is
brilliant piece of writing. . ."
[Prof. Oscar W. Cooley (Professor of Economics, Northern Ohio University)]
"I have read the typescript of your book with considerable interest. There is need for such a book in times as these . . . it would probably secure publication more
readily in Britain than in Asia . . . may I confess that I have been curious to know how a Pakistani can write so faultlessly such very 'English' English as you do."
[Sir Norman Angell (Nobel Peace Prize Winner 1933, and Adviser to late US President, Woodrow Wilson)]
"You are one of the few people in Pakistan to understand the truly coercive and authoritarian nature of the State. . ."
[Carl Watner (Publisher and Editor of the Voluntaryist)]
". . . Your book is an eye opener. Many a politician would feel small after reading it. . . Some of the facts are frightening. . . On the whole, it is a charming book;
exceptionally well written. . . I must admit that it is packed to the brim with rich ideas."
[Pandit Brijlal Nehru (Author, poet, financial adviser and first cousin of India's Prime Minister Pundit Jawaharlal Nehru)]
"What a book! After going through its pages I now know why our world is so sick and what we can do to cure it. Thank you, Aslam Effendi. Thank you again."
[Cynthia Pfrimmer (Publicist)]
His third book, ECONOMICS FOR THE CONFUSED, belongs to the tradition of Henry Hazlitt's Economics in One Lesson. It is ready for the press but . . .
Aslam Effendi's second and his most favorite book, HARD FACTS OF HISTORY, is dedicated 'to the victims of politicians, bureaucrats and artificial laws'. In his view, "this is probably the first book of history of its kind, a book that presents history from a completely new angle." This book lists 26 'most important lessons that man could learn from history.' Though, completed in 1992, it is still lying unpublished.
Now, come to the fact that the Foreword to this book was written by no other person than Henry Hazllit himself. Isn't it sufficient to prove the importance of this book!
FOREWORD
Aslam Effendi's book, Hard Facts of History, is like a bullet moving with great accuracy towards its target, the inter-relationship between morality, individual liberty, economic prosperity and world peace. With the backing of history, he employs his unusual skill of discriminating analysis, deductive logic and powerful pen to debunk formal governments and sovereign states. There is no mention about the achievements of kings and presidents, of political and military leaders of all kinds. A historian on looking back to study the decay of formal governments will find in this thesis a valuable document of human history. The author writes with feeling, lucidity and breath-taking boldness that makes him a joy to read. His love for freedom, humanity and world peace, shines through the pages of this remarkable book and nobody can read it without deep obligation owed to him. He has come to represent to me the hope of a confused, disunited and war-ravaged world. How I wish a great number of people read this book at least twice; better still if it is translated into as many languages as possible. I am sure that this book will not only open many eyes but will stimulate many to think in new directions. For sheer readability, this book cannot be surpassed. And for depth of thought it contains, few books can equal it. Therefore, no member of the legal profession, no journalist, no politician, no historian and no thoughtful person can afford to ignore it.
Henry Hazlitt
Editor, New York Times
1992
In March 2002, I came in contact with Vincent H. Miller, President of International Society for Individual Liberty, California, USA. He introduced me to Aslam Effendi. When I wrote to him, he was happy to know that he was not the only Libertarian in Pakistan. Then, in the first week of June 2002, I went to Islamabad to see him. He is too old, but vibrant with the spirit of Liberty. We had hours and hours of discussion about his work, Libertarianism, Anarchism, Anarcho-Capitalism, and the ways to promote the philosophy of liberty in Pakistan. He asked me to find a publisher for his books.
He was a bit disappointed and said: 'Well, isn't it strange that there is so much talk about the importance of human freedom, so much talk about human rights, so much talk about world peace and yet it is an irony of fate that a book that with the help of historical facts tries to provide down-to-earth solution to these problems has to wait 10 long years to find a publisher.' He weighs his book with the help of a statement of John F. Kennedy: 'The importance of the book, HARD FACTS OF HISTORY can be realized from these words spoken by late US President John F. Kennedy before the United Nations in 1961: "Every man, woman and child lives under a nuclear sword of Damocles, hanging by the slenderest thread, capable of being cut at any moment by accident, miscalculation or madness."'
Out of his three books, he wants HARD FACTS OF HISTORY to be published first for the world market; for, in his view, this book could be able to bring peace in a world torn-up with conflicts and wars.
What a pity that in the presence of hundreds of free market organizations and groups, there is not a one the mission of which is to promote such writers and their work! With so many inventive, creative and daring souls doing their utmost to save and keep alive the heritage of freedom and promoting it, would anyone of them like to save what is being produced now and here? In this connection, my idea is that an organization may be formed with the sole aim of promoting the neglected freedom writers by raising funds to publish their works after being scrutinized by a committee of referees.
This March my visit to Islamabad provided me an opportunity to have another meeting with Aslam Effendi. He is living with a few hundred copies of his only published book, HOW TO END ALL WARS FOREVER, stored in his room. He has no hope that his other two books, ECONOMICS FOR THE CONFUSED, and HARD FACTS OF HISTORY, will ever be published in his life time, but he is hopeful of the 'great victory of libertarians!'
BEHIND THE MACRO-ECONOMIC FIGURES?
By Andleeb Abbas
[Though this article demonstrates the futility of macro-economic figures, and explains how macro-economic indicators deceive us and are in no way a proof of economic growth, but it doesn't tell that the true indicator of this growth is: how much happy and prosperous individual citizens are.]
Facts and figures can be dangerously deceptive. Quantitative analysis is a tool that helps to mould data in a fashion that suits analysts. What lies beyond these figures is a matter of going into tedious and time-consuming verification, which very few readers have the time and energy to indulge in. Whether it is a country or a company, it seems that accountants and economists, who can "create" an acceptable picture of statements of the company or the country, are in high demand.
The recent accounting scandals concerning Enron and IBM have lifted the lid over the ingenuity of accounting and economic managers--this ingenuity being their ability to cook up and paint such rosy pictures of the health of the economy or a company that even the cleverest of analysts is easily mislead.
The latest Economic Survey of Pakistan seems to be suffering from this accounting malaise, which tends to give an exaggerated and inflated look to country's macro-economic performance. According to the Survey, the growth rate is over 5%, the exports are crossing the 10bn mark, inflation is hardly 4%, and the reserves are over 10.5bn; all indicators pointing to a booming and prosperous economy.
But these figures hide many ugly realities of the country; poverty has increased, unemployment is rampant, local and foreign investment is just trickling and health and education figures are as nominal as ever. With such a dismal performance, it is but natural that there are going to be question marks on the authenticity of these figures.
The power of research and data is proverbial, as this data serves as a justification of anything and everything including rewarding and punishing people, making excuses for mistakes, and creating grounds for contentious decisions. . . Behind the fanfare of a glowing economic performance lies the sad reality that these exaggerated figures will mislead the public for a short period of time, until realization hits once again, that they have been taken for a ride.
For the last few years, our economic managers have been consistently flaunting a higher provisional estimate of growth in our gross domestic product (GDP) at budgeting time, and subsequently, reducing this growth rate by the next June, so as to lower the base line. This enables them to blow the trumpet of a higher growth achieved in the next year.
In June 1999, the budget for fiscal year 1999-2000 fixed the target for growth at 5%. The nation was told in June 2000 that the actual growth achieved was 2.6% and the target for FY 2000-2001 had been fixed at 4%.
In June 2001, the provisional figure of 2.6% was depressed to 2.2% in order to show the growth for FY 2001-2002 at 3.6%, to bring it closer to the target of 4%.
In June 2002, the GDP growth target for FY 2002-2003 was fixed at 4.5%, while the achievement, as it was proclaimed in the provisional estimate for FY 2001-2002, was 3.6%.
The National Income Accounts Committee this year once again depressed the figure for FY 2001-2002 to 3.4%, to project the growth for next year FY 2002-2003 at 4.9%.
But that was not all. A few days prior to the presentation of the Finance Bill before the parliament, the NIA Committee once again met to revise the estimate of five items to raise the GDP growth even higher to 5.1% for FY 2002-2003. If the past trend is to be maintained, we shall see the GDP growth for FY 2002-2003 depressed once again in June 2004.
Manipulation of data for public consumption, to get a favorable response from the general public, may bring temporary laurels, but it is the real situation on the ground that changes public perception of governance. Faith in government estimates, by and large, is non-existent, as far as general public is concerned. There are no independent institutions to verify or check the Federal Bureau of Statistics' claims.
Some of the figures are mind-boggling. Defense receipts are shown as Rs.56bn in the year 2003, of which Rs.49bn is shown as 'miscellaneous'. How can you lump such a huge figure as 'others'; some explanation is still due even when there is a need of secrecy.
As far as claims on historical export performances are concerned, the story is the same. Most of this growth has come from the traditional textile group of products, and all the claims of product and market diversification have not materialized. Some new products are showing improvement, but most of it is due to a narrow base figure comparison.
Similarly, domestic growth shows the same analysis. Pakistan's manufacturing base remains much too narrow, and much of the 7.8% growth in industry has come mainly from textiles, automobiles and sugar.
Another area touted as a strong economic recovery indicator is the official reserve account. A ten and half billion-reserve account has been widely hailed as proof of a strong economy. Unfortunately, it is not trade, but aid and foreign remittances that are responsible for this increase. Most of it is caused by a rise in remittances from overseas Pakistanis, who, under compulsion of circumstances, are forced to send money through official channels instead of hundi.
A look at the composition of transfers shows that trade, as well as the services sector, has remained in the negative. The only growth is in foreign remittances, and it is these remittances that are largely responsible for enhancing the overall growth rate. A further analysis of the sources of these remittances shows that Pakistanis in the Middle East, who are mostly lower-class workers, send money to their not-so-well-off relatives at home. But Pakistanis in USA and Europe are relatively more affluent. Their remittances are for the relatively affluent people. The 2002-03 remittances pattern shows that inflow ratio from USA has increased substantially while that from Middle East has come down. It shows that real beneficiaries of remittances are relatively affluent persons and not the poor people.
The budget, unfortunately, has become an obsolete exercise: one that manipulates the past to make the present look more acceptable. It masks the ugly features of reality, thus, making us blind to future threats and dangers. The coming year is the most crucial year in terms of preparation for the ultimate era of globalization.
In the year 2005, the WTO vision is going to become a reality, when all barriers and protection are going to be taken away from our industries, leaving them exposed to competition from the whole world. Does the analysis of the present (supposedly laudable economic performance) give any hope or direction for the country's ability to cope with the impending competitive realities? Sadly, no. Our industries remain stagnant, our exports remain traditional and our social indicators dismal. A complete lack of awareness of the implication of WTO on our economy, at the government as well as the industrial level, seems to be the biggest block in the country's ability to cope with the future world economic scenario.
In a recent seminar on WTO, the Karachi Chamber of Commerce and Industries President complained that the 'bureaucrats' who have represented the country in WTO conferences since 1995, have signed WTO document of articles without bothering to go through them, and even without knowing the clauses related to Third World countries like Pakistan. And that is precisely why, the entire trade and industrial sector had, for a long time, been ignorant of the operative parts of the WTO rules. The trade and industry sector has been trying on its own to learn and adapt, but without government's support, it is an uphill task.
[Courtesy: The News International Lahore Edition June 29, 2003]
LETTERS
my name is saab siddiqui and i am a pakistani living in dallas,
texas, usa. i have been a libertarian for about 3 years and have
recently come across your group!
this is a wonderful group. and i hope you guys do really well. let me
know if you need anything and i will be glad to help out! god needs
we need the effort to counter the statists!
salam.
saab
why dont we get a website registered and post the articles on
there... let me know if you need some help with it!
saab
Big Congratulations for opening Alternate Solutions Institute [ASI] - the first free market think-tank in Pakistan!
Regards,
Nizam
[London, UK]
I am very glad to learn that you have established the Alternate Solutions Institute. I wish you the best of success with your work and efforts. If there is anything that I can be of help please never hesitate to write me.
Best wishes,
Ozlem Caglar Yilmaz
[Ankara, Turkey]
Greetings from the United States!
I saw the news about the launch of your new organization on the Atlas Foundation website. I write to congratulate you and wish you good luck with your new endeavor. As a fellow beliver in free markets, I'll look forward to learning more about your important work in the future!
Again, many congratulations.
Best wishes,
Dan Lips
Phoenix, Arizona, USA
Congratulations
Warm regards
Zafar
[Lahore, Pakistan]
FreePakistan News-Briefs
A POLITICAL APOLOGY
The Pakistan Muslim League (Nawaz Sharif Group), one of the biggest political parties of the country, has apologized to the entire nation for facilitating the dictatorial rule of General Ziaul Haq for eleven years.
CUTTING THE PRICES OF CARS IS DAMN EASY!
The Prime Minister of Pakistan has directed the local cars and tractors manufacturers to reduce the prices of vehicles within next six months.
NO CUT IN THE PRICES OF CARS!
Federal Minister for Industries & Production defended the drastic raise in the prices of locally manufactured cars on the grounds that automobile industry is contributing Rs 25 billion to the national exchequer each year.
TAXING THE PROFITS
State Bank of Pakistan has directed banks and DFIs to provide information to tax authorities on six-monthly basis in respect of those accounts where banks and DFIs pay any profit or return in excess of Rs 10,000 per annum in an account or on deposit maintained with the banks or DFIs.
VIOLATION OF BANK SECRECY ACT FLAYED
Acting President of Karachi Chamber of Commerce and Industry has termed the requirement of submitting report to Central Board of Revenue by banks over Rs 10,000 profits paid to the clients as a violation of the Bank Secrecy Act; whereas the kind of information can be asked only by the courts and National Accountability Bureau.
GOVT. TO NET 20,000 BUSINESSMEN
The Government of Pakistan has decided to launch a countrywide warning campaign for more than 20,000 rich traders to get registered on the GST index by August 31st or face tough hand of the law.
CELL-PHONE OWNERS TO BE TAXED
More than half million cell-phone owner are being tracked down in a countrywide operation for bringing them in the tax net. The income tax department is planning to scan the records of mobile phone companies for reaching the cell-phone owners with national tax number form to fill up as taxpayers if they are not already on the index.
TAX NOTICES TO SMALL TRADERS
The income tax department has started sending tax notices to thousands of small traders like flower sellers, auto-workshops, etc, to explain within 15 days whether they are taxpayers or face proceedings.
DO NOT ADVERTIZE! YOU WILL BE TAXED!!
Whoever orders an advertisement on print or electronic media would in future be receiving an income tax department notice. Some of those who advertise their services or products at the smallest scale have already received such notices.
OVERSTAY CHARGE IMPOSED ON FOREIGNERS
The Government will impose an "overstay charge" on foreigners who fail to leave the country after expiry of their visas.
HOTEL INDUSTRY BLEEDS UNDER 22 TAXES
A report of the Pakistan Services Ltd. states that the hotel industry is additionally bleeding under the sundry taxes of all variety some 22 in number and the government has failed to show any understanding of the plight of the hotel industry so far.
11 TAXES ON THE PRIVATE SCHOOLS
The Private Schools Association of Pakistan has demanded the education department of provincial and federal governments to abolish as many as 11 different kinds of taxes including income tax on private schools.
STRIKE AGAINST GST AND INCOME TAX LAWS
All Pakistan Sizing Industries Association has decided to observe strike for indefinite period from July 21 to protest against indiscriminate GST and income tax laws.
ROAD USER TAX CRITICIZED
City district government's decision of imposing road user tax on 32 different roads of the provincial metropolis has attracted strong reaction and criticism from the business and trade community who are of firm belief that the move would spoil the expanding base of economy. In their reaction to this move, almost all the business and trade bodies have declared that the decision is bound to wreck overall business climate of the second largest city which is the capital of about 70 per cent urban consumer base of the country.
COURT SUSPENDS ROAD USER TAX
A Senior Civil Judge suspended notification about the collection of road user tax levied by the city district government of Lahore at 32 different entry points.
LOANS WORTH MILLIONS WRITTEN OFF
The government owned bank, Habib Bank Ltd., has sent its loan write off report to the National Assembly Secretariat in which it has been disclosed that it wrote off billions of rupees loans of influential 10, 771 borrowers during the last three years of military rule (1999-2002).
25 % SUBSIDY ALLOWED ON FREIGHT
The commerce ministry has allowed 25 % freight subsidy on products whose total exports in the last three years was up to US$ 5 million.
RURAL AND URBAN POVERTY
The Planning Commission has disclosed that poverty in rural areas went up by 4.3 % and in urban areas by 2 % in 1998 to 2001. According to the fresh estimates for 2000-2002, the poverty in rural areas is 39 % and urban areas is 22.67 %.
WHO WILL SAVE THE INTERESTS OF THE CONSUMERS?
Punjab Government has asked the Federal Government to increase the import duty on chicken and related items as the local industry is on the verge of collapse due to the marketing of much cheaper imports.
CALL TO STOP CHINESE CHICKEN IMPORT
Pakistan Veterinary Medical Association has demanded the government to stop import of frozen chicken from China besides imposing duty on such products. The President of the Association has said that as the imported frozen chicken from China is cheaper than the locally produced chicken, the local industry will become non-competitive in the market as the its production cost is very high.
UNEMPLOYMENT SWELLS
According to the Economic Survey 2002-2003, the unemployment rate has increased from 5.89 % in 1998 to 7.82 % in 2003.
AN INEFFICIENT AND NON-FRIENDLY MONOPOLY
Federal Minister for Telecommunications and Information Technology has admitted that Pakistan Telecommunications Company Limited, practically a monopoly, is suffering from inefficiency and customer non-friendly attitude. He cited examples of some recent complaints that the PTCL officials had denied 'EI' connections to some commercial organizations despite having these connections at their disposal. He said the customers were not smiling in the prevailing atmosphere, while the PTCL is leading the market as the sole market player.
LET WE ESTABLISH MORE GATEWAYS
Internet Service Providers have sought permission for setting up four international private gateways to avert the recent mishap that disconnected Internet connection for over 15 hours.
==========================================================
Edited and prepared by
Khalil Ahmad
Email: khalilkf=at=hotmail.com
khalilkf=at=yahoo.com
[No opinion expressed here should be taken as reflecting the view of the FreePakistan Newsletter.]
