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Nadir Gul Barech (CEO) speech on view of civil Society on World Bank Balochistan Economic report dissemination conference at Islamabad, Sep 07,2009

Honorable Ministers, members Parliament, Colleagues from world Bank, Asian Development Bank, Secretaries and senior officials of Government of Pakistan and Balochistan, Donor’s, UN agencies and Civil Society representatives, distinguished guests, ladies and Gentlemen Asalam Alaikum and Good Evening.

It is a great pleasure for me to be among the galaxy of economic and development experts, who have formulated a comprehensive strategy for the economic revival of Balochistan in the form of Balochistan Economic Report (from periphery to Core). I am also delighted to be in the company of distinguished diplomats, donor partners and all those who have a stake in, or are concerned for, the development of Balochistan. The presence of all of you suggests the significance of this event.

Balochistan, rich in history dating back to pre-historic ages, has seen its inhabitants depending on the natural resources through centuries and can rightly be termed as the pioneers of present day agricultural, civic and social patterns delivered to the modern world through an evolutionary process spread over millenniums. It is said that when you build a road, the change is inevitable because it does not only connects the area with the outside world but it brings social transformation from the outside world. As we know Balochistan province has its unique cultural, ethnic and geographical background. Many things changed very rapidly around the world but the pace of development in Balochistan has been slow and thereby it is the most underdeveloped region in Pakistan.

The largest Province of country Balochistan inhibits two major ethnic groups Pashtuns and Baloch and a minority of other ethnic groups. Blessed with rich natural resources but a significant proportion of its population lives well below poverty line. Reasons are many – to list a few - dependence on traditional agro-pastoral economy, political insincerity, vested interest of the elite in prevailing power structure maintaining status quo, unsustainable and inequitable exploitation of natural resources, lack of economic opportunities, absence of or inadequate communication infrastructure, Low literacy, high fertility and mortality rates, strong tribal power structure, preference for male child, disempowered status of women and fatalistic attitude.

I am glad to see that the report very logically and rightly analyses the underlying issues of the underdevelopment facing the province.The Balocistan Economic Report is an excellent work and its comprehensiveness is commendable. The problem analyses is encompassing taking into account the ground realities and it presents a good response strategy of generating growth adopting three pronged strategies of Generating Growth, Delivering Services and Financing Development. The integration of three strategies will enable us achieve the outcomes envisaged in the report.

The Report reflects optimism of Civil Society that the Province has tremendous potential to develop. The advent of globalization, is shrinking the nations of the world into a global village. - The pitfalls of globalization, taking into consideration the locational advantage of Balochistan, also offer us -- unprecedented opportunities for international co-operation for the sustainable management of the resources and affairs of Province as well as Pakistan. In terms of implementation of the strategy, the challenge ahead will be the practical implementation. Political commitment will be the key to implementation. The Governance, as pointed out in BER, is the most important issue to be addressed. Legislation, policy and administration of justice play an important role in guaranteeing good governance. The guarantees should therefore be laid down in legislation and concrete rights should be conferred, aimed at effectuating good governance at the Provincial and as well as at the national levels. Accountability of the state as service provider – state shall not shy away from its responsibilities towards the right bearers; Civil society commits itself to contribute to all efforts aimed at Good Governance.

Barriers to economic growth and poverty reduction in Pakistan in general and in Balochistan in particular have to face the following key risks and challenges: In the context of Balochistan geo-strategic interests – the external regional and global powers factor have not fully been analysed. The implementation Environment in Balochistan is turbulent in terms of security situation and the prevailing political crises. The process of political reconciliation shall be started sooner than later combined with strengthening the law enforcement mechanisms. Civil Society in Balochistan supports the proposal for more provincial autonomy to Provinces by Federal Government. In Balochistan both Pashtuns and Baloch need to be in-charge of their development.

• Increasing disparities despite economic growth leading to an increased incidence of insurgency, terrorism, and armed conflict. Swat is a clear example and the situation of Balochistan is not far from it if not tackled well in time.
• Weak institutions and governance structures with declining accountability, transparency and increasing corruption leading to the alienation of the poor and their marginalisation from the development process. Institutional building and capacity issues need to be given more attention. In the wake of economic development and growth strengthening of civil society institutions shall not be undermined. The rise in the role and the importance of NGO’s and other social organisations are recognised everywhere. In order to facilitate and to structure the active involvement of all non-state actors, the right mechanisms and structures will have to be established. It should be emphasised that a productive dialogue between government and society will only be possible if all participating partners respect each other and consider each other equal partners.
• Declining quality of public service delivery with governments less inclined to be the providers of basic services in the areas of health, drinking water, sanitation and education. Public private partnerships (PPP) are being promoted as an alternative delivery channel, without any measures for greater accountability of the private sector or clarity on mechanisms for inclusion.
• The Private sector, which though seen as the engine of growth in South Asia in general has limited mechanisms and experience of enabling inclusive growth and transparency in its operations; and limited means of ensuring accountability to the public. This has to be taken into consideration while assigning important role to the Private sector to achieve outcomes of the report.

Natural disasters such as draughts, flash floods, earthquake are impeding factors to arrest economic growth. Mainstreaming issues related to climate change in the development process is very important. Ladies and Gentlemen, the process of economic growth and development starts with a common vision owned by all actors of the society including communities and indigenous populations. A broad sense of local commitment coming from tribal people could be an indispensable development force. We should focuses on the capacities of indigenous organizations to meet development challenges - on a bottom up rather than a top down approach. Harnessing people's potential to help themselves, to assume control of local development and improve their standard of living through Social Mobilization for participatory development highlighted in BER should be institutionalized. Incorporating lessons from traditional knowledge systems, the work of CSOs and social movements is very important and must be adhered to. Trust them, people know what they want. Literate or illiterate, they are willing to take responsibility for their own destiny, this is part of mankind genetic inheritance. There are lessons learnt around the globe that best outcome in economic growth can be achieved through investing in Primary Education. In the context of Balochistan extensive investment in formal education system to discourage the informal system so that every men and women, young girl and boy contributes significantly to economic growth. The transition from Agro-pastroal economy to industrialization in the long run is a right step in right direction and coupled with transit trade, manufacturing would result in economic growth. However, for short and medium term investment in sustainable management of water resources and sustainable agriculture practices would provide immediate relief to poor. For a sustainable economic growth and to eradicate poverty there is a need to strengthen development finance for grassroots action; diversifying income and developing skills, making financial services available for the poor. The aim of economic growth cannot be achieved until investment in sustainable human development is ensured.

Situation only in Balochistan cannot be improved in isolation from the rest of the country – need to link with national/federal policies – need for identification and curbing of hurdles at the federal level. This is much relevant in the context of Financing Development Investment as outlined in the BER. We look forward to hearing good news from Federal Government in the forthcoming NFC award. The strategy strongly bases on decentralisation – which is a key element. However the fate of devolution in the country is uncertain and policy dialogue needs to be enhanced to limit uncertainties in this regard.

In conclusion, I am proud to share that Civil Society is looking forward to reach for the highest level of competence to justify its existence and trust. You will find Civil Society combining energies and creativity, with a social conscience. Together these constitute a powerful impulse and CSO will put the best efforts to nurture it and to enable people to transform their existence from extreme poverty, to choice and opportunity, within a context that safeguards, for each of them, their right to their own identities, and to preserve and practice their indigenous culture and traditions. Distinguished guests, together, we have an opportunity to grasp the challenge of helping to develop Balochistan – and succeed. The investment made today will lay the foundation for prospects of tomorrow, and an opportunity to enhance its capacity for self-reliance. I am sure, -- elated the spirits of all present—and -- the support, -- assured today the BER, - - will go a long way in ensuring its implementation. I thank you all for your patience audience.

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