Pakiland's hidden defense spending

http://www.dailytimes.com.pk/default.asp?page=2007/09/20/story_20-9-2007_pg7_19


Ayesha Siddiqua says her book misunderstood

* Says military business not confined to Pakistan alone
* Rs 60-70bn in defence spending not shown in budget
* Military business inefficient, unprofitable

By Khalid Hasan

WASHINGTON: Ayesha Siddiqa, author of the controversial work Military Inc., told a meeting here in Tuesday evening that her book is not about the Pakistan Army as has been made out, but about the larger question of “military capital” with Pakistan serving as a case study.

She told a well-attended meeting at the Woodrow Wilson Centre that she wanted to study the impact of military business on the country in the context of authoritarian rule. She also wanted to investigate what impact that has on the economy and society in general. She had discovered that other stakeholders, such as the feudal classes and the privileged sections of society, had become willing partners of the military for the protection of their own privileges.

Milbus flourishing in Indonesia, Turkey too: She pointed out that military business – which she calls Milbus – is not confined to Pakistan as several other countries, such as Indonesia and Turkey, are also in the same boat. She was keen to find out what impact this has had on society in general and what its impact on the overall national economy is. She called her book an academic work, since it has been viewed in some quarters as an attack on the Pakistani military. She said she was also keen to study the linkages between Milbus and economic and political power. Many who had criticised her book had done so without reading it.

Hidden defence budget: Siddiqua said the size of the military budget in Pakistan is greater than that cited in official figures, since between Rs 60 billion to Rs 70 billion spent on the military is not shown in the official defence budget. She added that military pensions (Rs 30 billion to Rs 35 billion) are not part of the defence budget either. Someone pointed out in the question hour later that this is also true of India where military pensions were not shown as part of the defence budget. She said if all the unreported or camouflaged figures are added up, Pakistan’s defence spending would be over 6 percent of its GNP.

With the aid of a power point presentation, Siddiqua listed the various enterprises in which the Pakistani military is engaged, ranging from cornflakes to banking. She also spoke about the induction of serving and retired military personnel in civilian posts, as well as in businesses enterprises run by one or other of the military’s welfare organisations. It was pointed out by a member of the audience that military personnel retired at relatively young ages. A sepoy, for instance, retired at the age of 35, while captains and majors for the most past found themselves on “civvy street” in their forties. “Should these men be thrown into the Arabian Sea?” he asked or should they be helped into jobs so that they and their families can survive. Siddiqua replied that the military defends its extra-mural activities as welfare-oriented but it should be asked, “At what cost?”

Inefficient, unprofitable: She said Milbus is neither very transparent nor are several of its enterprises run in an efficient or profitable manner. She cited the example of Shaheen Airlines that the PAF closed down after some years of operations because of heavy losses. She said Milbus is characterised by a “lack of accountability,” which makes it “illegal”.

She said in answer to a question that the military in Pakistan has not created monopolies, having been asked if there was a level playing field available to others in relation to the military.