Black Money and Power
Pakistan’s economic position is not in the absolute doldrums because the buoyancy of the parallel black economy is keeping it artificially afloat. Operating independently of the country’s banking system, free from the encumbrances of any taxation, it is a tremendous market force and for some Third World countries a cornerstone for economic survival. Without the liquidity of black money fuelling consumer sales there would be a much bleaker economic picture. It is a bitter medicine without which the body economic would shudder to a halt but is a steep price to pay because it degenerates the morality of our society, weakening the fabric that binds it together.
All of the financial exercises engaged in by our erstwhile economic experts are directed towards (1) tempting, cajoling and (2) coercing, brow-beating black money to draw it into the national mainstream. Even with imposition of extremely low taxes, this enormous financial liquidity would translate into substantial governmental revenues other than being available for investment in industries and commercial services. If nothing else, our spurious “investment companies” have shown this for a fact. Traditionally, smuggling has been the major source of black money but the advent of drugs has acted as a multi-faceted force-multiplier, escalating the risks and the rewards. Being the recipient of a huge amount of external aid, US$12 billion of which is still impaired, a fair portion of it is lost to graft, another great fountain of black money.
The tentacles of black money have spread into every sphere of life and the ostentatious display of wealth at weddings is only a simple manifestation. Visitors from a much more affluent society range from being agog to dumbfounded at the opulence, enough to even dazzle royalty. Barring two months of the year, it is marriage season all the year around, the 400 or so such events in Karachi alone being estimated at Rs. 300 million expenditure daily. Simplicity is derided as one of the “retrograde” tenets of Islam and is resisted as such by the “educated westernized elite”. Instead of being cowed down by various admonitions issued from different pulpits, religious and official, the indiscreet display of fairy-tale luxury continues unabated, a devil-may-care attitude indicating an utter contempt for austerity (and the sensibilities of the poor) born out of the headiness of absolute power that money creates.
Organized crime as familiar in the western world is unknown in Pakistan though pockets exist in every town and city in areas of gambling, prostitution, drugs, etc but our perception of a local Mafia differs conceptually from the reality of the Mob existing in the western hemisphere or even in the East (e.g. the Yakuza in Japan). Small and vicious gangs exist but not a complete umbrella organisation reaching into the corridors of power. What is a reality are individual contacts bought by the liquid strength of black money, a patronage that proliferates through the system, is much more difficult to identify and therefore to eradicate. Money is power in any country, in Third World countries like Pakistan where poverty is more pronounced, it is absolute power. Karachi newspapers keep talking about the DRUG MAFIA, a self-conceived fairy tale being used as operative term for ethnic purposes because if it did exist, we would really be in trouble. However, vicious individual gangs have connections with organized crime in the western world, Karachi being one of the main conduits of heroin smuggling. Patronage is available at a price and the gangs’ mentors in the corridors of power use their financial clout to support their bureaucratic ability to permeate every different level. With the type of money being spread around, it is quite difficult to restrain or contain their influence for mischief-making.
The colour of money has thus an inordinate influence on decision-making and while drug money has physically accentuated the ills of society through an overdose of Kalashnikov culture, it is the money siphoned off from Federal and Provincial projects besides the various semi-government Corporations that is responsible for debilitating society. About a decade or so ago, Readers Digest ran an article about bureaucratic corruption in Third World countries wherein a report was published about how a senior public servant in Pakistan got his ill-gotten wealth in a sophisticated manner viz (1) “winning” regularly at cards from select businessmen, mainly at bridge and (2) “wedding” presents for his daughter e.g. 55 air-conditioners, 10 cars, 30 refrigerators, or some such figures.
The change today is that such subterfuges are no longer necessary, all deals are straight cash affairs, it being understood that both sides are the gainers in keeping the issues simple. Dr Mahbubul Haq comes up with a figure of Rs:20 billion while Dr Mubashar Hasan regales us with a Rs:40 billion amount being lost by the government exchequer. Those involved in the general loot have a vested interest in trying to suppress the facts. Already wielding inordinate power because of the dubious interpretation of arcane laws, black money turns errant bureaucracy into an awesome force, psychologically and materially dominating even those around them, thus influencing their decision-making capacities for their own nefarious ends, making them innocent and unwilling collaborators to crimes against the State and people of Pakistan. Any voice raised against their activities will suffer the consequences, be it from the bureaucracy or the public. In this manner the media is also cowed down, the Sword of Damocles being a combination of advertisement revenues, cancellation of Declaration, individual persecution, social ostracisation and even strong arm tactics on occasions. Colombia had one crusading Justice Minister gunned down in the infamous city of Medellin (a prime cocaine centre) and an example was made by the torture inflicted on him before he died. The long arm of the drug kings had already gunned down a previous Justice Minister as far away as Hungary where he was Ambassador. A stage has come where no judge in Colombia dares to convict any member of the mainstream Drug Cartel. Can you blame them? When life and limb of self, near and dear ones are thus threatened, it takes extraordinarily brave persons to stand up and be counted. In at least two Caribbean countries, Panama and Haiti, the power behind the throne is drug money. Money is used to influence the independence of the judiciary and if money does not work, outright coercion works. Black money is suspected to play an all-pervasive role in the law-enforcing agencies in Pakistan i.e. the Police, Customs, etc and concerned bureaucracy. Once that money gets its claws into the judiciary, it will be curtains for our society. Influence peddling/purchasing is not a new gambit, it is as ancient as time and as the boys in Chicago showed in the 20’s and the 30’s, the MOB can become society itself, given the running room.
One of the means of taking out “insurance” through black money is to take refuge in political parties across the broad spectrum, irrespective of ideology. Political parties need money, particularly for electioneering purposes and the volume of money they need sometimes erases the dubious origins of the cash. If it were confined to purchasing patronage for themselves it would be bad enough but increasingly neo-elite among the under-worldly are finding political aspirations for themselves a fashionable turn-on and God forbid that some of these drug smugglers become political leaders or for that matter control and/or influence them. Money is power, black money will make it absolute, in combination with errant bureaucracy it will become lethal for society as we know and cherish.
The power of black money needs to be drastically contained and the tentacles chopped off at its very roots. The business community has reacted to the penal provisions for tax evasion as if a cobra has landed in their soup. That protest by itself is degrading, if one is innocent, why not have the courage of conviction to stand up and be counted, what is the fear except when there is element of wrongdoing? The Finance Minister cannot be seen to be making only idle threats and irrespective of political creed the Great Silent Majority (and the vocal minority) among the masses will support his effort to make the rich pay their due taxes. This campaign will only succeed if the scalpel is used without political motivation and indiscriminately, friend and foe alike, particularly on talented brothers, cousins and sundry among “friends”. In order to start the process of accountability it is suggested that the Members of the Executive Committees of the various Chambers of Commerce and Industry for the past five years and members of the major clubs in Pakistan like the Sindh Club, Punjab Club, etc file their declaration of assets. That would cover a fair position of the known elite in business, industry and bureaucracy but having obtained a “white” rating it would make their hands stronger in dealing with corruption in society. The tragedy is that failure to support this process sincerely will result in the collapse of the democratic system and invite into the vacuum an idealistic military dictatorship that will attempt to run a Martial Law as it should be run, absolutely. The commitment of political leadership must be to the masses and if it seems it only panders to black money, political ideology becomes bankrupt inviting adventurism of the third kind. Islam enjoins on us simplicity, opulence is a manifestation of our deviation from its cardinal principles. The display of wealth for its sake is not confined to weddings, it is reflected in the purchase of luxury cars, palatial mansions, our extravagant fashion tastes etc. Austerity is the need of the hour, budget-wise and behaviour-wise, if we are to eradicate the ills of our society. The promise of declaration of assets by the President should be emulated by all the bureaucracy, business elite and political leaders. One method of containing black money is to expose it. One expects black money will not play any significant part in subverting the morals of our leadership. By the act of showing the actual financial worth, a lot of inherent suspicion about our leadership at various levels will be laid to rest and we will be able to separate black money from power.
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