Criminal Exploitation of Baluchistan

Professor Dr Shahida Wizarat

According to the resource curse literature resource abundant countries or regions have lower rates of growth as compared with resources scarce countries/regions. Different explanations have been given to explain the phenomenon. The ‘Dutch Disease’ explanation derives its name from the Dutch economy’s poor growth performance after the discovery of oil in that country. This low rate of growth has been attributed to ‘sloth’ or laziness of resource abundant countries. Other theories explaining the poor performance of resource rich countries are corruption, lack of institutional development and conflict. Corruption in a resource abundant country leads to loot and plunder of resources, with the result that the local population is unable to enjoy the fruits. And since institutions like an independent judicial system are unavailable, the loot and plunder of resources continues. And it is not just a coincidence that mostly the resource abundant countries are prone to conflict, which maybe internal due to resentment and a sense of exclusion in the local population against the exploitation of their resources by outsiders. Or, it maybe due to ‘greedy outsiders’ who go and invade other countries under different pretexts, couched in altruistic cloaks. But inside the smokescreen the scramble for oil, gas, precious metals and stones in the less developed countries goes on.

In an earlier study I found that the rate of GDP growth of resource scarce countries at 2.96 percent was higher than the rate of growth of top oil and gas exporting countries at 2.05 percent and the rate of growth of ore and mineral rich countries at 2.70 percent during the 1980s. But contrary to what the theory tells us, the rate of growth of resource scarce countries at 3.50 percent was far below the rate of growth of the top oil and gas exporting countries at 4.68 percent and the rate of growth of mineral and ore rich countries at 3.89 percent during the 1990s. The same trend continued during the 2000 decade, with natural resource scarce countries’ GDP increasing at the annual average rate of 3.78 percent, compared with the GDP growth rate of 5.23 percent for top oil and gas exporting countries and 4.30 percent for ore and mineral rich countries.

But the performance of individual countries may not necessarily follow this trend. Pakistan, for example, appears to be afflicted by the resource even today. And all the causes for the resource curse like the Dutch Disease, dysfunctional institutions, rent seeking and conflict are taking their toll. The situation in Baluchistan is the same as in other mineral rich parts of Pakistan, where 80 % of the precious stones are lost in extraction and the 20% that are extracted are exported to India, where they are cut and polished enabling India to earn precious foreign exchange. India was thus able to buy armaments worth $100 bn last year by just adding value to Baluchistan’s precious stones. We have heard a lot about the economic exploitation of Baluchistan by Punjab and Pakistan, but the exploitation of Baluchistan by India is never mentioned by any one even in passing. The fact that 80 % of Baluchistan’s precious stones are lost in a bid to extract them and export them to India in raw form, while India makes a fortune by cutting and polishing the remaining 20% is criminal injustice to the poor people of Baluchistan.

Gold and copper are also found in abundance in Baluchistan. Tethyan Copper Company (TCC) was awarded lease for exploration of 400 square kilometers in Reko Diq, where the identified reserves are worth $104 billion in only six to seven kilometres. Exploitation of these reserves would yield precious metals worth trillions of dollars to the Baluch people. TCC submitted feasibility for only 3 km after 18 years, but since the company did not meet legal requirements of the Government of Baluchistan, they were not granted mining lease. The plan designed by TCC to be implemented over a life of almost 60 years would have siphoned off billions of dollars in revenue and profit, with no economic benefits accruing to Baluchistan. In spite of this dismal performance, Dr Malik’s government wants to award the contract to TCC again. One fails to understand why the Baluchistan government would want to award the contract to a company that could not deliver in 18 years and has very tainted reputation? How many people in Baluchistan know about their exploitation by an Australian company?

But the exploitation of Baluchistan is not confined to minerals, stones and fuel reserves only. The province has very fertile land and grows top quality fruits and vegetables. Rich countries and their companies are targeting Baluchistan’s agriculture as well. Recently Pakistan Agriculture and Cold Chain Development (PACCD), a subsidiary of Winrock International, a US NGO working under the patronage of USAID distributed apple samplings in Baluchistan whose description resembles GMOs, without informing the farmers that they are GMOs. They also built a free cold storage to win the confidence of the people. When the Federal Ministry of Interior started monitoring NGO activities in the country, PACCD packed up and has not since been seen in Quetta.

Briefly summarizing my concerns raised earlier about GM farming: they reduce nutrient content in foods and increase allergic reactions causing increase in the production of harmful proteins. GMOs increase cancer and cause Horizontal Gene Transfer between modified organisms and human bacteria. Professor Gilles-Eric Seralini at the University of Caen in Normandy found that 50-80 percent of female rodents developed tumors in all the groups, while male rodents suffered from liver damage, kidney problems, indigestion and skin tumors when they consumed NK603 corn for 24 months.

There has been a tremendous increase in cancer in Pakistan as we continue to import GM food items like lentils and vegetables from Australia, Canada and India. On the other hand, Germany and Scotland have already banned GMOs, while 19 European Union countries are taking steps to ban them. Recently China refused to allow Bt corn imported from USA to enter the Chinese market. I have learnt through reliable sources that Canada is growing GM crops for aid/export to less developed countries, but has banned their sale in Canada. Consumption of these products in Canada will be considered only after surveys have been conducted to quantify increases in serious illnesses in countries consuming GM crops exported/donated by Canada and other rich countries. It has also been brought to my attention that WWF is growing organic crops in Pakistan for Western consumers.

GMOs also have serious adverse impacts on the economy as seeds from GM crops can not be used for sowing and fresh seeds have to be imported for each crop, which increases foreign exchange requirements resulting in increase in the trade deficit. While natural seeds which are healthier, do not use up our scarce foreign exchange, but GM seeds need foreign exchange for every crop that has to be sown. Combined with increased fertilizer and herbicide use, they increase the cost of production of crops, causing increase in prices of food crops, rise in the rate of inflation thus making us food insecure.

Baluchistan produces the best fruits, vegetables, nuts and dry fruits in the world. Why are we allowing outsiders to get in and destroy this very healthy and profitable sector. Farmers in Baluchistan do not have to spend foreign exchange on purchasing seeds. How will they cope with increase in the cost of production of their crops once they are made dependent on GM seeds? And how the impoverishment of Baluchi farmers impact on the geo politics of Pakistan? And how will the production of GM fruits, vegetables, dry fruit and nuts impact on export of these when consumers abroad are getting more health conscious and turning towards organic foods? As a result of clandestinely replacing cotton seeds with Bt cotton seeds, Pakistan’s exports to the European Union have declined in spite of the GSP PLUS status given to Pakistan. And most important of all, how will the poor people of Baluchistan afford medical expenses if afflicted by the kind of diseases which consumption of GMOs entail?

In all this dismal scenario Governor Baluchistan is a ray of hope. Being an economist himself, he has taken note of the economic loss to the province due to extraction and export of raw stones and metals from Baluchistan and has asked Russia to help in the extraction of minerals in Baluchistan. Here I would just like to share the consensus in the literature on natural resources and growth that countries that export their fuel, ores, stones and minerals in raw form are afflicted by the resource curse, while countries that establish industries that use these resources as inputs are not afflicted by the resource curse. I would, therefore, suggest that instead of exporting gold, copper, coal, stones from Baluchistan in raw form, we should establish industries that use gold, copper, stones, fuel, etc. This will not only provide employment to the local people, generate incomes but also reverse the resource curse and bring prosperity which will nip in the bud attempts to alienate the people of Baluchistan against the state.

This brings me to the all important question of governance in this country. We are paying the price of bringing (with some exceptions) the worst amongst us to leadership positions. It is common knowledge that we install people on leadership positions who have links with the US. These people have never delivered and caused a lot of harm to Pakistan through their actions when in power. With change creeping as a result of the world moving towards a multi polar world, this decadent system is not only posing an existentialist threat to the country, but has become a useless albatross around our necks. The sooner we are able to abandon it, and replace it by a system based on merit, where the most competent, honest and patriotic Pakistanis are elevated to leadership positions, the better it will be for our national interest. Can the destruction of Baluchistan’s precious stones enabling India to earn foreign exchange on Baluchi precious stones, exploitation of Baluchistan’s gold and copper by an Australian company and the destruction of Baluchi orchards by US seed cos to earn billions being facilitated by our politico social system? Is the exploitation of Baluchistan by outside powers being facilitated by installing advisers on fantastically exorbitant salaries and perks, who may have links with foreign powers? Vetting all those being elevated to leadership positions in the provinces and Pakistan will be the first step towards ending the exploitation of Baluchistan!
Email address: drwizarat@icloud.com