Starved for Energy, Pakistan Braces for a Water Crisis

ISLAMABAD, Pakistan — Energy-starved Pakistanis, their economy battered by chronic fuel and electricity shortages, may soon have to contend with a new resource crisis: major water shortages, the Pakistani government warned this week.

A combination of global climate change and local waste and mismanagement have led to an alarmingly rapid depletion of Pakistan’s water supply, said the minister for water and energy, Khawaja Muhammad Asif.

“Under the present situation, in the next six to seven years, Pakistan can be a water-starved country,” Mr. Asif said in an interview, echoing a warning that he first issued at a news conference in Lahore this week.

The prospect of a major water crisis in Pakistan, even if several years distant, offers a stark reminder of a growing challenge in other poor and densely populated countries that are vulnerable to global climate change.

In Pakistan, it poses a further challenge to Prime Minister Nawaz Sharif, whose government has come under sharp criticism for failing to end the country’s electricity crisis. In some rural areas, heavy rationing has meant that as little as four hours of electricity a day is available.

In the interview, Mr. Asif said the government had started to bring the electricity crisis under control, and predicted a return to a normal supply by 2017. But energy experts are less confident that such a turnaround is possible, given how long and complex the problem has proved to be.

Now the country’s water supply looms as a resource challenge, intensified by Pakistan’s enduring infrastructure and management problems.

Agriculture is a cornerstone of the Pakistani economy. The 2,000-mile-long Indus River, which rises in the Himalayas and spans the country, feeds a vast network of irrigation canals that line fields producing wheat, vegetables and cotton, all major sources of foreign currency. In the north, hydroelectric power stations are a cornerstone of the creaking power system.

A combination of melting glaciers, decreasing rainfall and chronic mismanagement by successive governments has put that water supply in danger, experts say.

In a report published in 2013, the Asian Development Bank described Pakistan as one of the most “water-stressed” countries in the world, with a water availability of 1,000 cubic meters per person per year — a fivefold drop since independence in 1947, and about the same level as drought-stricken Ethiopia.

“It is a very serious situation,” said Pervaiz Amir, country director for the Pakistan Water Partnership. “I feel it is going to be more serious than the recent oil shortages.”

Shortages of resources have climbed to the top of the political agenda in recent years. Fuel shortages last month, for which government officials blamed mismanagement by the national oil company, caused lengthy lines outside fuel stations that embarrassed the government at a time of low global oil prices.

Mr. Sharif’s government was already grappling with the seemingly intractable electricity crisis, which regularly causes blackouts of 10 hours a day even in major cities. And Mr. Sharif has been visibly distracted by grueling political duels, with the opposition politician Imran Khan, who accuses him of stealing the 2013 election, and with powerful military leaders who have undermined his authority in key areas.

Mr. Asif, the water and energy minister, said the government had started to turn the corner. But he acknowledged that the country’s resource problems were, to a large degree, endemic. “There is a national habit of extravagance,” he said, noting that it extended across resource areas, whether gas, electricity or water.

“I will be very careful not to use the word ‘drought,’ but we are water stressed right now, and slowly, we are moving to be a water-starved country,” he said.

Evidence of chronic water shortages have been painfully evident in some parts of Pakistan in recent years. A drought caused by erratic rainfall in Tharparkar, a desert area in southern Sindh Province, caused a humanitarian emergency in the region last year.

“The frequency of monsoon rains has decreased but their intensity has increased,” said Mr. Amir of the Pakistan Water Partnership. “That means more water stress, particularly in winters.”

Water is also tied to nationalist, even jihadist, politics in Pakistan. For years, religious conservatives and Islamist militants have accused rival India, where the Indus River system rises, of constricting Pakistan’s water supply.

Hafiz Saeed, the leader of the militant group that carried out the 2008 attacks in Mumbai, India, Lashkar-e-Taiba, regularly rails against Indian “water terrorism” during public rallies.

Mr. Asif said that contrary to such claims, India was not building reservoirs on rivers that flow into Pakistan. “We will never let it happen,” he said, citing the Indus Water Treaty, an agreement between the two countries that was brokered by the World Bank and signed in the 1960s.

One major culprit in Pakistan’s looming water crisis, experts say, is the country’s inadequate water storage facilities. In India, about one-third of the water supply is stored in reservoirs, compared with just 9 percent in Pakistan, Mr. Amir said.

“We built our last dam 46 years ago,” he said. “India has built 4,000 dams, with another 150 in the pipeline.”

Experts say the country’s chaotic policies are hurting its image in the eyes of Western donors who could help alleviate the mounting resource crises.

“The biggest looming crisis is of governance, not water — which could make this country unlivable in the next few years,” said Arshad H. Abbasi, a water and energy expert with the Sustainable Development and Policy Institute, a research group based in Islamabad. More

 

John Perkins Speaks Out On Public Sector Privatization

An Economic Hit Man Speaks Out: John Perkins on How Greece Has Fallen Victim to “Economic Hit Men”

John Perkins

“My sin was ripping off people around the world,” said John Perkins, author of “Confessions of an Economic Hit Man,” at Transitions Bookplace in Chicago, on February 3, 2006. (Photo: Peter Thompson / The New York Times)John Perkins, author of Confessions of an Economic Hit Man, discusses how Greece and other eurozone countries have become the new victims of “economic hit men.”

John Perkins is no stranger to making confessions. His well-known book, Confessions of an Economic Hit Man, revealed how international organizations such as the International Monetary Fund (IMF) and the World Bank, while publicly professing to “save” suffering countries and economies, instead pull a bait-and-switch on their governments: promising startling growth, gleaming new infrastructure projects and a future of economic prosperity – all of which would occur if those countries borrow huge loans from those organizations. Far from achieving runaway economic growth and success, however, these countries instead fall victim to a crippling and unsustainable debt burden.

“That's part of the game: convince people that they're wrong, that they're inferior. The corporatocracy is incredibly good at that.”

That's where the “economic hit men” come in: seemingly ordinary men, with ordinary backgrounds, who travel to these countries and impose the harsh austerity policies prescribed by the IMF and World Bank as “solutions” to the economic hardship they are now experiencing. Men like Perkins were trained to squeeze every last drop of wealth and resources from these sputtering economies, and continue to do so to this day. In this interview, which aired on Dialogos Radio, Perkins talks about how Greece and the eurozone have become the new victims of such “economic hit men.”

Michael Nevradakis: In your book, you write about how you were, for many years, a so-called “economic hit man.” Who are these economic hit men, and what do they do?

John Perkins: Essentially, my job was to identify countries that had resources that our corporations want, and that could be things like oil – or it could be markets – it could be transportation systems. There're so many different things. Once we identified these countries, we arranged huge loans to them, but the money would never actually go to the countries; instead it would go to our own corporations to build infrastructure projects in those countries, things like power plants and highways that benefitted a few wealthy people as well as our own corporations, but not the majority of people who couldn't afford to buy into these things, and yet they were left holding a huge debt, very much like what Greece has today, a phenomenal debt.

“[Indebted countries] become servants to what I call the corporatocracy … today we have a global empire, and it's not an American empire. It's not a national empire … It's a corporate empire, and the big corporations rule.”

And once [they were] bound by that debt, we would go back, usually in the form of the IMF – and in the case of Greece today, it's the IMF and the EU [European Union] – and make tremendous demands on the country: increase taxes, cut back on spending, sell public sector utilities to private companies, things like power companies and water systems, transportation systems, privatize those, and basically become a slave to us, to the corporations, to the IMF, in your case to the EU, and basically, organizations like the World Bank, the IMF, the EU, are tools of the big corporations, what I call the “corporatocracy.”

And before turning specifically to the case of Greece, let's talk a little bit more about the manner in which these economic hit men and these organizations like the IMF operate. You mentioned, of course, how they go in and they work to get these countries into massive debt, that money goes in and then goes straight back out. You also mentioned in your book these overly optimistic growth forecasts that are sold to the politicians of these countries but which really have no resemblance to reality.

Exactly, we'd show that if these investments were made in things like electric energy systems that the economy would grow at phenomenally high rates. The fact of the matter is, when you invest in these big infrastructure projects, you do see economic growth, however, most of that growth reflects the wealthy getting wealthier and wealthier; it doesn't reflect the majority of the people, and we're seeing that in the United States today.

“In the case of Greece, my reaction was that 'Greece is being hit.' There's no question about it.”

For example, where we can show economic growth, growth in the GDP, but at the same time unemployment may be going up or staying level, and foreclosures on houses may be going up or staying stable. These numbers tend to reflect the very wealthy, since they have a huge percentage of the economy, statistically speaking. Nevertheless, we would show that when you invest in these infrastructure projects, your economy does grow, and yet, we would even show it growing much faster than it ever conceivably would, and that was only used to justify these horrendous, incredibly debilitating loans.

Is there a common theme with respect to the countries typically targeted? Are they, for instance, rich in resources or do they typically possess some other strategic importance to the powers that be?

Yes, all of those. Resources can take many different forms: One is the material resources like minerals or oil; another resource is strategic location; another resource is a big marketplace or cheap labor. So, different countries make different requirements. I think what we're seeing in Europe today isn't any different, and that includes Greece.

What happens once these countries that are targeted are indebted? How do these major powers, these economic hit men, these international organizations come back and get their “pound of flesh,” if you will, from the countries that are heavily in debt?

By insisting that the countries adopt policies that will sell their publicly owned utility companies, water and sewage systems, maybe schools, transportation systems, even jails, to the big corporations. Privatize, privatize. Allow us to build military bases on their soil. Many things can be done, but basically, they become servants to what I call the corporatocracy. You have to remember that today we have a global empire, and it's not an American empire. It's not a national empire. It doesn't help the American people very much. It's a corporate empire, and the big corporations rule. They control the politics of the United States, and to a large degree they control a great deal of the policies of countries like China, around the world.

John, looking specifically now at the case of Greece, of course you mentioned your belief that the country has become the victim of economic hit men and these international organizations . . . what was your reaction when you first heard about the crisis in Greece and the measures that were to be implemented in the country?

I've been following Greece for a long time. I was on Greek television. A Greek film company did a documentary called “Apology of an Economic Hit Man,” and I also spent a lot of time in Iceland and in Ireland. I was invited to Iceland to help encourage the people there to vote on a referendum not to repay their debts, and I did that and encouraged them not to, and they did vote no, and as a result, Iceland is doing quite well now economically compared to the rest of Europe. Ireland, on the other hand: I tried to do the same thing there, but the Irish people apparently voted against the referendum, though there's been many reports that there was a lot of corruption.

“That's part of the game: convince people that they're wrong, that they're inferior. The corporatocracy is incredibly good at that.”

In the case of Greece, my reaction was that “Greece is being hit.” There's no question about it. Sure, Greece made mistakes, your leaders made some mistakes, but the people didn't really make the mistakes, and now the people are being asked to pay for the mistakes made by their leaders, often in cahoots with the big banks. So, people make tremendous amounts of money off of these so-called “mistakes,” and now, the people who didn't make the mistakes are being asked to pay the price. That's consistent around the world: We've seen it in Latin America. We've seen it in Asia. We've seen it in so many places around the world. More

The Cayman Islands must be very discriminating as to what pieces of the public sector get sold off. Some sectors, such as water production and distribution, if sold, and without well thought policies, could well have a negative effect on certain sectors of our population, as recent events in Detroit have proved. Editor