Wednesday, November 18, 2009

Female garment workers in Pakistan: enlightened but discriminated

A recent survey report on female garment workers in Pakistan suggests that female workers are under represented, discriminated against, have more enlightened attitude and overall show a high level of job satisfaction.

The research report “Current status and prospects of female employment in the apparel industry in Pakistan” by Dr. Ehsan-ul-Haque is sponsored and published by Gen-Prom (Gender Promotion in Garment/Clothing Industry through skills development), a project of UNDP-Pakistan. It is for the first time that such an exhaustive survey of female employment has been undertaken in Pakistan and provides valuable insight into current female employment patterns and practices, their demographic profiles and general attitudes towards women’s employment.
The survey is based on a sample of 150 large, medium and small garment/textile companies based in 3 major textile cities, i.e., Karachi, Lahore and Faisalabad. The survey is based on 2140 respondents from workers, supervisors, managers and owners/GM’s cadre out of which 60% were male.

Here are a few interesting conclusions from this study:
Women workers comprise an average of 20% of the workforce in the garment sector. Karachi has the highest proportion of female workers followed by Faisalabad while Lahore came out as the least ‘woman-friendly’ city.
Females represent 20% of non-skilled workers, 22% of skilled workers, 12% of supervisory staff and only 3% of manager cadre which points to lower levels of education and skills as compared to men.
Data suggested that only 60% of the companies issue written appointment letters to their workers while life insurance is only provided to 50% of the employees and only 47% companies have maternity leave facility.
80% of the companies seem to have special facilities for women like separate bathrooms, prayer and rest rooms but in Faisalabad, while 97% companies provide separate prayers areas only 66% provide separate bathrooms. Overall, only 21% of the companies provide day-care facilities for children.
On supervisory level, male employees seem to be getting 24% more in wages as compared to their female counterparts while on worker level this difference is 22%.
Most managers and workers rate women as much productive workers than men. Even male workers agree but with less conviction but generally managers agree that women workers provide better quality, do not waste time, work harder, are more responsible, productive, loyal, honest and punctual than male workers.
The survey points that female workers seem to have enlightened attitude while their male workers/supervisors seem to have to have most conservative attitude. Most male supervisors/workers seem to agree that women of their households should not work. Most respondents also feel that Islamic injunctions do not prescribe female work outside home.
Interestingly, males seem to have a worse opinion of sexual harassment on streets than women themselves. However, they admit that most of it is in the form of ‘stares’ or ‘male gaze’. Also, both male and female managers believe that working women may find it more difficult to get married.
While 64% of managers are positive about hiring females, 62% of workers/supervisors are not in favor of allowing their immediate female relatives to work in their own organizations.
Managers interested in hiring women suggest unavailability of trained women, lack of transportation and restrictions from households as the key reasons for failing to employ more women. 90% manages are unaware of any government policy for increased participation of women in the industry.
Overall, organizations where managers are more inclined to hire women seem to be larger in size, are based in Karachi, have a more positive future economic outlook and export primarily to EU rather than US.

Thursday, October 29, 2009

Whither online democracy?

A relationship would not be termed as exactly healthy where there is hundred percent agreement involved in each and every issue. Humans are designed to be disagreeable and there can be no such relationship where perfect harmony exists but our relationship with our respective governments is an exception to the rule. Once a government is elected we have to go along with their decisions for four or five years whether we like it or not.

Politicians promise us heaven and earth in their election campaigns but once they come in power they are allowed to do whatever they decide irrespective of the public opinion. Popular leaders can become unpopular very quickly in today’s fast paced world and the present system of ‘representative democracy’ does not allows us to disagree till the leaders’ term expire. So I keep asking myself, why we have to go along with our government’s decisions on all the issues for four or five years when popular public opinion does not support them.

The answer lies in a term called ‘direct democracy’. Direct democracy is a system of government in which the actual governing is carried out by the people governed, as contrast to representative democracy where the power to do so is granted by them.

Although the idea of direct democracy was visualized long ago but we have yet to see it implemented and the only way forward is to have ‘online democracy’. Can’t we have a system whereby governments hold instant referendums on major issues facing a country and form a decision based on public feedback? And the answer to that is ‘No’.

In 2001, Internet Policy Institute carried out a major review of the options for Internet voting. The study concluded that “remote Internet voting systems pose significant risk to the integrity of the voting process and should not be fielded for use in public elections until substantial technical and social science issues are addressed.”

Technical issues have especially to do with security. Another worry relates to fairness, and the possibility of restricting voting to those with computer skills and Internet access. The study concluded that the concept of electronic and online voting still makes sense in principle, but as long as practical problems of this scope remain, it may truly be “too far ahead of its time.”

For now, we can only wait and hope!

Free-fall continues: a review of Pakistan’s textile exports for 1st Quarter 2009-10

Provisional first quarter figures for the fiscal year 2009-10 of Pakistan’s textile exports shows no letup as free-fall continues. The declining trend is really alarming because exports continued to decline in the same period (Jul-Sep) last year and in comparison current years’ figures are really dismal.

Overall, textile and clothing sector shows a decline of US$ 316.5 million (-11%) in the first three months of the current fiscal year as compared to the same period last year.
Raw cotton exports continue to increase, which registered an increase of US$ 11.4 million (39%) in this period. High prices of cotton in the local market and subdued purchases from the textile mills seem to be the reason for this increase. Processed cotton (carded or combed) shows a decline of US$ 5.8 million (-88%), showing that the importing countries are processing cotton themselves.
Cotton yarn shows a slight increase of US$ 11 million (3%), while man-made yarn exports increased substantially by US$ 2.8 million (39%). This trend shows increased activity in this commodity especially in synthetic yarn which is not a traditional export.
Fabric exports also show declines as cotton fabric exports declined by US$ 212 million (-35%) and knitted/crocheted fabric declined by US$ 2.2 million (-13%).
The only positive aspect is the slight increase in exports of readymade garments which grew by US$ 11.7 million (4%). Knitwear exports, on the other hand, declined by an alarming US$ 69.6 million (-13%).

Bedlinen, another traditional and major export declined by US$ 72.5 million (-15%). While export of towels declined by US$ 25 million (-14%).

Artificial silk and synthetic textiles, another non traditional export, increased substantially by US$ 29 million (33%) while exports of tents and canvas products fell by US$ 5.4 million (-33%).
It is now expected that export figures for the next quarter will register better results because of shipments for approaching Christmas season and because of the steps taken to stem decline in the recently announced Textile Policy 2009-14.

Wednesday, October 28, 2009

Taliban within us

Being a Taliban is not about a way of life, it is a state of mind and many of us Pakistanis are prone to suffer from this condition at least once in his/her life time. The way I see it, we are all Taliban but the degree of extremism varies from person to person. Whether we like to be called it or not, in a way, we are all moderate Taliban.

To my untrained eye, I see so many Talibans around me and it scares the hell out of me. Maybe, I am being paranoid here but just writing about them gives me goosebumps.
The below list is not complete and nor it is compiled according to any particular ranking. Psychologists need to understand this ‘state of mind’ and put a label on each for our easier understanding and comprehension.
  • People who resort to violence, they are Talibans of the 1st degree, no doubt.
  • People advocating holding ‘peace’ talks with Talibans come next.
  • People venting their anger on America, they come next on my list.
  • People who claim that their religions is the only true religion and that they are the best for ever and ever; yeah, you too buddy, you’re next on my list.
  • People, who say that it is their primary duty to spread religion on the four corners of the world, are also included therein.
  • Then there are others who want a revolution (in the real sense) in Pakistan.
  • Some others have a problem with young men and women mingling around. These people are pretty high on my shit list.
  • Last but not the least, there are people who have this unstoppable urge to cast stones at stray dogs and cats mating in the streets. I label them as ‘looney Talibans’.

From the above noted irrational behavior it can be safely assumed that Talibanisation can take any form of shape ranging from pure militancy to utter hypocrisy. It can exist under the roof of any high mansion or hide under the thin shelter of any poor man’s hut.

I am sure this piece of mine will not go down easily with many people and some may declare it as an outright war against religion but we need to recognize that these are not healthy behaviors and we cannot go on fighting this war against extremism indefinitely.

Here I would like to add from a recent article by journalist Thomas L. Friedman who points out that ‘in places like Egypt, Syria, Saudi Arabia, Afghanistan or Pakistan have violent religious extremist movements fighting with state security services. … And while the regimes in these countries are committed to crushing their extremists, they rarely take on their extremist ideas by offering progressive alternatives. And when these extremists aim elsewhere … these regimes are indifferent. That is why there is no true war of ideas inside these countries — just a war.’ Mr. Freidman further adds that ‘these states are not promoting an inclusive and tolerant interpretation of Islam that could be the foundation of people power.’

Wednesday, September 30, 2009

Textiles from Swat valley: A strategy to make ROZ’s work

The idea of Reconstruction Opportunity Zones (ROZ's) was proposed by Mr. Obama in March 2009 to provide duty-free access for Pakistani textiles and apparel produced in certain remote areas bordering Afghanistan. At that time Pakistan's textile industry strongly opposed this idea because of the security situation and also because major export products were not included. No work has been done on ROZ's so far but now with the success of army operation in Swat, there is a good chance to bring about employment opportunities to the poor people who are most affected by terrorism.

Here is how it can be done:
Textile is a labor intensive business and by setting up small scale stitching units in Swat will help employ the poorest of the people especially the women. Yet another way to make this work is linking these stitching units with local schools where vocational training is provided to the children. In this way, the stitching units will be ensured a trained labor force. Also, by providing one time meals at schools, the female workforce will have an additional incentive to send their children to school.

Role of USAID:
USAID can play a very important role of facilitator, implementer and monitor in setting of ROZ's in Pakistan. As a facilitator, it can encourage joint ventures between US textile importers and Pakistani's textile manufacturers. As an implementer, USAID can offer ready-made projects to the joint venture companies. Also, by ensuring a registered workforce will speed up setting up of ROZ's. As a monitor, USAID can monitor and verify exports from ROZ's and also ensure that ROZ's are working according to the laws of International Labor Organization (ILO).
Marketing strategy:
Swat valley is now world famous as it was here that the march of Taliban was halted. Now a brand can be developed by the name "Textiles from Swat valley" and a marketing campaign can be devised for consumers who will buy these products knowing that their money will go to the people who are directly affected by terrorism.
This strategy can very well enhance ties between America and Pakistan and if successful, it can also be replicated in Afghanistan.

Tuesday, September 29, 2009

Time value of money: mother of all evils?

Time value of money is one of the most fundamental concepts in finance. Simply put, this concept states that “a dollar today is worth more than a dollar tomorrow." According to this concept money in hand today is worth more than money that is expected to be received in the future. Text books on finance tell us that rationale behind this concept is straightforward: A dollar that you receive today can be invested such that you will have more than a dollar at some future time.

To clarify further, suppose you have won $10,000 and are given two options, a) receive the money now or, b) receive the money after three years. Which option would you choose? If you're like most people, you would choose to receive the $10,000 now because you can do much more with the money if you have it now because over time you can earn more interest on your money. Now suppose that the going interest rate is 4.5%, then you should receive $11,411.66 after 3 years, if you decide to take the second option. Therefore, $10,000 of today is worth $11,411.66 after three years given the interest rate at 4.5%.

Time value of money results from the concept of interest and serves as the foundation for all other notions in finance. It impacts business finance, consumer finance and government finance.
As a student of finance I have read this concept many times and many times I have wondered is it a flawed concept because it only takes into consideration justification and utility for existence of the key financial institutions; the banks. Suppose if $100 of today is worth the same tomorrow then the banks would certainly be out of the picture as they will have no other utility then besides being just a custodian of depositors money.

There is much more to the concept of time value than meets the eye, because it takes us to the heart of the problem: greed. Just because a dollar today is worth more than the future, we want more and more returns on our future money as we can get. Just because the banks are offering 4.5% interest on our money we try our best to invest somewhere where we can get more than the going interest rate or otherwise our money will fall prey to inflation.

Economists have always argued that a little inflation is always good because it makes economies grow. On the other hand, in order to remain over and above the inflation rate, a person has to struggle all his life otherwise his money will simply won’t grow.

If we do consider a world where value of tomorrow’s dollar is same as today’s, wouldn’t we be better-off being out of that rat race for more money? Here we should also consider whether it is really worth the struggle just to keep the financial sector up and running? With 89 banks failing in the US alone, can the financial pundits really be trusted to give us right concepts about finance or are they just making us run around in circles?

Tuesday, August 25, 2009

Lessons taught by the Taliban

Besides suicide-bombing-made-easy, there are actually a lot of lessons Pakistani society needs to learn from the ongoing insurgency of the Taliban. The whole Taliban debacle has certainly opened up Pakistani society just a wee bit. People have now started talking on issues which were previously considered taboo. People now do tend to analyze religious clerics and what they stand for. The Pakistani society did stand up for the murdered Christians of Gojra and showed their rejection to the politics of hate. But we still have far to go before we can claim Pakistan as a religiously tolerant society and following lessons should be learned:

Why do we have such fiery religious clerics?
All Muslims say that Islam is a religion of peace yet we continue to see the system producing successive militant clerics. These clerics blame all our troubles to be caused either by America or Israel or India, yet they never bother to address issues which are all around them and can be solved just by taking a small initiative. Our society should look into the system which is producing such hatred. There is now a strong need that we start looking at our religion from a fresh perspective.

Can there be a moderate Taliban?
Can there be such a thing as a moderate Taliban? I certainly don't think so. Taliban follow a very rigid religious philosophy according to which they have right to eradicate social evils by taking matters into their own hand. They consider it their rightful duty to prevent girls being sent out to schools, shaving of beards, etc. Those who advocate talking to ‘moderate' Taliban should know that these moderate Taliban will always make life miserable for the people by enforcing their own brand of Islam. If moderate Taliban are let loose, we will continue to see baton-charging-burqa-brigades and morally-right-mullahs.

Education for the people
It seems that the Taliban were following a very well thought out strategy by blowing up schools in Swat and other adjacent areas. Around 100 schools, mostly girls' schools, have been blown up. This strategy shows that the Taliban wanted to keep the masses, especially women, illiterate. By keeping the poor illiterate and by allowing no commercial activity, the Taliban wanted to induct more and more deprived people to their ‘noble' cause.
Justice to the poor
Pakistanis took really serious note of the Taliban issue when government announced enforcement of Sharia Bill in Swat. The Sharia Bill called for speedy justice handed down by the Qazis (religious judges). The Taliban, through this Bill, wanted to get hold of civil administration in Swat by exploiting the corruption and inability of the conventional courts. They had very wisely realized that their movement will get strong support if they start dispensing justice quickly.

As Pakistanis, it is very important for us to take serious note of these lessons as taught to us by Taliban so that we may never again face such an insurgency.