An eminent economist said that in order for democracy to be sustained and for poverty to be effectively combated in the South Asian region empowerment of the region’s poor was of paramount importance. "We need to give substance to the idea of peoples empowerment and not just use it as a slogan," Rehman Sobhan, Chairman, Centre for Policy Dialogue, Bangladesh said. Sobhan delivered the keynote address ‘A Vision for South Asia’ at the inaugural session of the first South Asia Economic Summit: SAFTA and Beyond last Thursday. "The poor of the region remain disempowered due to their unequal command over economic and political resources. This drives them into relations of subordination and dependency on those who monopolise resources," he said. He suggested several policy measures which, through interventions and institutional reforms, can address these "injustices". Broadening the ownership of assets, enhancing the capacity of the poor to participate more competitively in the market place, democratizing educational opportunities, giving strength to the voice of the poor and enabling them to participate in the process and institutions of governance were the basic but critical measures Sobhan highlighted. Sobhan said that the instability of the region could be addressed through these measures, where the most violent and long standing of the region’s insurgencies have been in the least developed parts of the countries in the region. "The resort to violence originates not just in the poverty of the rural poor, but in their deep sense of disempowerment and alienation caused by their marginalization from the opportunities for development and exclusion from the institutions of governance." He stressed the need of broadening land ownership among the poor, particularly in the agrarian sector. "Small agrarian households can be empowered through collective action to realise the external economies available to bigger farmers. Groups of landless households could be incorporated to own and operate tube wells or farm machinery and market these services to other small farmers. "Crops can be collectively stored and communities can as a whole negotiate better prices, own transportation facilities and use IT facilities to track the market," he said. Citing Bangladesh’s Garmeen Bank as an example, Sobhan suggested that the poor can be given the opportunity to own corporate wealth. "Seven million households own Grameen Bank. This is not only the largest microfinance institution of the world but is also one of the largest commercial banks in Bangladesh. "In 2007, the bank dispersed over US$ 729 million to 7.5 million borrowers with a recovery rate of around 99 percent. Grameen Bank holds a 38 percent equity stake in Bangladesh’s largest corporate entity, Grameen Phone, which has around 20 million subscribers and a market capitalization of US$ 3.5 billion." Sobhan cited several other examples of corporate ownership of the poor which included stock option plans to workers. He said however, that promoting ownership in the corporate sector should not be viewed as charity. "Ownership of equity of the poor can be financed through institutional credit in the same way purchase of shares by the rich is leveraged by bank finance. The Poor of South Asia have already proved their credit worthiness and should be no less entitled to financial support than the rich." |
