capitalism

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Natural Gas Infrastructure and Local Communities in Sindh: A Case of Three Settlements in Sanghar District (2022)

Written by Zeenat Hisam and Ishak Soomro, this 2022 research report was produced by The Knowledge Forum as a part of its programme to promote a narrative on scaling back fossil fuels in Pakistan, with the support of Tara, a regionally-led grant-making initiative to accelerate energy transformation in Asia.

Pakistan is a resource-rich country and the energy sector — driven on the back of fossil-fuel based solutions – has played a major role in fuelling economic growth and development. Extraction of oil and gas requires huge capital, sophisticated technology and highly skilled labour. The first beneficiaries of the extraction are thus the investors, the operating companies and the management (national or global corporations). The larger beneficiaries are the industries and the households, mainly located in urban and industrial areas across the country. Local population living in hydrocarbons-producing regions in Pakistan do not benefit from natural resources lying under their feet and being extracted by outsiders which include provincial and federal governments.

Local economy and local living conditions at many production sites have remained stagnant for decades. The population living in districts with high endowment of natural resources suffer multiple socio-economic deprivations, particularly in the areas of education, health, and employment.

While the dominant narrative in the energy sector, particularly in oil and gas development, is built around probing of technical aspects, scrutiny and analyses of energy production and its benefits, very little documentation in Pakistan captures the experiences of the local communities vis a vis oil and gas industry. Many resource- rich countries make efforts to improve the local economy by leveraging linkages to production projects. The value brought to the local, regional or national economy from an extraction project is referred to as the “local content”. This snapshot study attempts to touch upon the lack of local content in the context of three settlements in the area close to gas fields in Sanghar District Sindh.

View and download the full report here:

Natural Gas Infrastructure and Local Communities in Sindh: A Case of Three Settlements in Sanghar District

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The Erosion of Unions

Published in Dawn, April 29th, 2023

Unions perform multiple economically valuable functions… — Richard B. Freeman

IN times of erosion of trust in our institutions — parliament, the judiciary, army and the state — it is challenging to talk about labour unions struggling on the fringes for decades and held in low esteem by our elite and in mass opinion.

But it is worthwhile to reiterate that unions are an important component of labour market institutions tasked with functions essential for a just and sustainable economy.

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Labour in the US

Published in Dawn, November 28th, 2022

“All happiness depends on courage and work” — Balzac

A PARADIGM shift is taking place in the labour market of the world’s richest economy. Attributed to the shift in the mindset of workers, spurred by the Covid-19 pandemic, the Great Resignation, the New Collar work and an upsurge in unionising are reshaping the US workforce.

After the lockdowns and the end of enhanced unemployment benefits they received from the state during the pandemic, workers have been re-evaluating their priorities and rethinking their work-life balance. Many have found the courage to take the plunge out of low-paid, stressful work, to learn something new and transition to ‘new-collar’ work, search for online, work-from-home options, or find a better paid, less stressful job. Others are opting for a work-free life, joining the anti-work movement, not with an aim to a lifetime of idling but “to start a conversation, to problematise work”.

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Why Have the Workers Failed to Unite?

Published in Dawn, August 13th, 2022

TRADE unions invariably grow from the political system in a country. The structural nature of a country’s political system deeply influences trade union membership, coverage and impact. Primarily, it is the internal political system of a country that gives or curtails space to trade unions to either institutionalise and become stronger, or remain fragmented and marginalised. The impact of external, or global, factors is secondary, though crucial.

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Moral Harassment

Published in Dawn on December 29 2019

The recent verdict by a French court on ‘moral harassment’ of employees has set a major precedent in an era of turbulent global economic liberalisation. While the criminal trial against the French telecom exposes tactics of corporate culture — merciless downsizing leading to workers’ suicides — the verdict reveals the strength and role of trade unions in holding corporations accountable.

Cynics might ask what a First World dispute between managerial staff and employers has to do with Pakistan, a country where managerial cadre is deprived of the basic right to form a union, where trade unionism is no more than a weak whimper and labour disputes take years to decide. Well, it gives us hope — an increasingly rare commodity these days — that the verdict might make corporations across the globe rethink ‘corporate social responsibility’.

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Winds of Change

WHILE debate on the contradictions of capitalism, its ruthlessness and vulgarity, gains momentum on the margins of global discourse, capitalism glides smoothly along on the back of its modus operandi: the global supply chains. Termed as the foundation of 21st-century trade, global supply chains account for 80pc of global trade, benefitting Western populations through the availability of cheaper products manufactured by the low-wage, abundant labour of developing countries.

Pakistan is one of the low-cost production centres in Asia. In this country, Sialkot is a hub of several industrial clusters producing surgical instruments purchased by the healthcare industry in the West through global supply chains. According to a 2012 report by the Trade and Development Authority of Pakistan, 2,300 units in Sialkot, employing 150,000 workers, produce 150 million surgical instruments every year. Sialkot manufacturers sell to suppliers at a very small margin of profit; the suppliers then sell to the end users at much higher rates. For example, according to an estimate quoted in the 2010 report of the Rawalpindi Chamber of Commerce and Industry, a pair of surgical scissors costs $1 to produce, is exported from Pakistan to Germany at a price of $1.25 and, probably, sold to a hospital for about $80.

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Contract Work and Greed

Since money, as the exciting and active concept of value, confounds and exchanges all things, it is the general confounding and compounding of all things—the world upside down—the confounding and compounding of all natural and human qualities.

Karl Marx

Increasing prevalence of contract work in the labor market is a global phenomenon. Low production cost and increase in productivity–the reasons cited by economists for contract labour—both lead to wealth accumulation. Thus, the hidden motive behind contract work is desire, or greed of the employer, for more profit, more money. No wonder, then, contract work is so confounding that even the ILO finds it full of complexity and riddled with ‘conceptual’ problems.

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