India vs. Pakistan: learning from the rivalry

There couldn’t be any category where two competitors hate each other more than in the carbonated beverages world, with Coke and Pepsi perennially at war.

For over a century Coke and Pepsi have been at each other’s throats in a constant struggle for a bigger piece of the billion-dollar soda market. Along the way the companies have picked up a slew of loyalists and fans, adamant that their cola reigns supreme in the battle between the two cola giants.

The Coke-Pepsi battle is no holds barred, and involves intrigue, espionage, market-place battles, discounts, schemes, contests, advertising, etc, all targeted to get the consumer to choose one over the other.

Yet, even with the stakes so high, the two majors magically find agreement on one aspect: the price of the product.

Nowhere in the world is there a wide gap in the price of the two cola brands. If one raises the price, the other will take advantage of the higher market share – only for a short while. Then, it’ll follow the leader, and raise the price to bring parity with the rival, and begin enjoying the higher margin at a reduced market share. If one drops the price and sacrifices margin for share, the other will follow suit shortly.

In theory, all that one has to do to win the war is to keep dropping the price and keep eroding margins with increased market share as the benefit.

Why doesn’t this happen?

Because both agree that there is a limit to war – and that a price war will be one in which both Coke and Pepsi will be doomed.

So is the case with the India and Pakistan. They compete for market share, staring eyeball to eyeball every day in the battle for more Nuclear Weapons, for power, arrogance and self centered politics. Millions of people falling the poverty line each year in the two countries and more budgets are being allocated to Defense spending

And if one country promises ‘x’ increase in the Defense budget, the other introduces ‘y’, a comparable equivalent.

This might seem to be a healthy competition for the time being, as long as both the countries can continue to survive.

Right now, what they’re doing is the equivalent of a mad spending on stocking more and more Nuclear Bombs. By their willingness to pay an uneconomical and unviable price to acquire voters, they’re reaching a stage where market share is everything — and a scenario where both could be doomed as the business, the business of politics, will become unviable to them.

If they were to learn from the Cola majors, they need to agree that there are some stances and decisions which they ought not to fight over. This needs to be the defined bottom-line in their continuing war against each other – they should not sink below this level as they seem to be close to doing so till this day.

Carry on, and both are doomed.

The writing is already on the wall – this war is costing them both dearly.

From MFN to Most Favorite Friend (MFF)

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Progress in the peace process between Pakistan and India is measured in inches, not yards. By that metric, the decision by the two countries to move to a more liberal visa regime should be seen as a considerable step forward. . The agreement will make it easier for businessmen to move across the border and will also grant banks from Pakistan and India permission to operate in each other’s countries. In the ultimate analysis, it would change and herald a new era of more open, transparent and meaningful engagement in a number of sectors. It could change the politics of South Asia.

During his recently concluded visit to Pakistan, Indian Commerce Minister Anand Sharma held talks with his Pakistani counterpart Makhdoom Amin Fahim (15th February, 2012 – Wednesday) and signed three trade pacts and laid the groundwork for not only opening more land trade routes, but also bank branches in each other’s countries for the first time since their creation. Pakistan’s Cabinet on Tuesday approved the signing of the three agreements but deferred a decision on switching over from a positive list of 1,945 tradable items, to a negative list of 636 items barred from trading, after some stakeholders expressed reservations. Pakistan & India has agreed to move from a positive list to a small negative list by the end of February. The negative list is to be phased out gradually and the timing for that will be announced by the end of February. The complete phase-out that will automatically lead to full normalisation of trade relations, commonly known as the most-favoured nation (MFN) status.

The economic calculus of formal Indo-Pak trade is trivial, at least for India. With total formal Indo-Pak trade of around $2 billion, this translates into 0.27% of India’s foreign trade basket. For Pakistan, it means more, with around 3% of its external trade. In comparison, Pakistan transacts 10.83% of its international trade with China, 10.65% with UAE, 8.41% with USA and 7.26% with Saudi Arabia. Very few people realise that after the US, Afghanistan has become Pakistan’s most favorite destination, which accounts for close to 10% of our exports, whereas the US accounts for 16%. With Pak-USA diplomatic terms at far from their best and with Afghanistan now always in an aggressive tone towards Pakistan, we are fast losing our business partners. The last decade has pushed India to the centre of the world stage because of impressive economic progress, market size and sustained democracy. Its huge military has enhanced its appeal to global interests. Its tourism and film industries further reinforced its international image.

It is ironic that our foreign policy and trade trends seem to be working at odds. The notion that India will be the main beneficiary, while Pakistan, with its smaller economy, will lose out is also misplaced. Simple economics and history suggests that trade with reduced barriers is a ‘win-win’ situation for both sides. Smaller economies, in fact, have benefitted greatly. Take the case of Mexico, which exports more than quadrupled after the North American Free Trade Agreement went into effect in 1994. This was good not only for Mexico’s producers but also its consumers. They had a greater variety of goods to choose from at reduced prices because the influx of imports increased competition.

More than one-fifth of humanity cannot be in bondage indefinitely because some people would prefer to prolong the agony. One of the most remarkable developments of the 20th century has been the capacity of nations to bolster economic ties even though they remain sharply divided on many vital issues. The people and government of Pakistan, need to take a cool look at the progress made by some of the most successful countries during the last fifty years. It is high time we realised that we need to learn from what they did to achieve progress and not by yielding to what the West has been telling us to do with our country and people. There are many major international alliances based on simple common sense and the basic principal that close relations and cooperation among neighbouring countries must be the foundation for formulating foreign and economic policies. The European Union is a key example. It was formed by the devastated and divided countries of Europe after World War II as an integrated body of 27 nations, including the reunited Germany, with a single currency and free movement of goods and people across borders.

There is no remedy better than people-to-people contacts to remove mutual suspicion and hatred between Pakistanis and Indians. Helping students, youth, artists and sportsmen to travel to each other’s countries would generate goodwill and bring the two nations closer. Simplifying the cumbersome visa process for businessman shows that both countries were not simply indulging in cheap rhetoric but have realised the mutual benefits of cross-border trade. My dream is of free trade for the entire South Asian region. One day we should be able to have an economic union along the lines of Europe. We can either look at the glass as half full or half empty. I see it as half full.

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Kabuli Pulao

Qabili Palau

Ingredients

• 3 cups basmati rice
• 1 Kg Sheep's boneless meat
• 2 large onions, peeled and quartered
• ½ c plus 2 tbsp. olive oil or vegetable oil, divided
• 5 tsp. salt
• 3 large carrots, peeled
• 1 cup black raisins
• ½ cup slivered almonds
• 3 tbsp. sugar
• ¾ cup water
• 2 tsp. ground cumin
• 1 ½ tsp. ground cardamom
• 12 cups water

Preparation Method 1:

Immerse rice in a bowl of water and drain in a colander. Repeat this step 3 times.

Wash the meat. Set aside.

Chop the onions. Don't puree the onions. You can do this by hand if you prefer.

Choose a sauté pan that is at least a couple inches deep and large enough to fit all the chicken. Pour ½ cup of the oil in the pan and sauté the onions over high heat, stirring quickly, until brown (5-10 minutes). Don't burn them. Add the meat to the pan and sprinkle with 3 tsp. of the salt. Cook the meat over medium-high heat for 20 minutes, turning from time to time so all sides turn golden brown. The onion will start to caramelize and turn into a thick sauce. Continue stirring to keep the meat from burning.

While the meat is cooking, cut the carrots into long matchsticks, about 4 inches long and 1/8-inch thick. Make sure that they are not too thin. In a large frying pan add ¾ cups of water and bring to a boil, add the carrots and cook until tender and a deep orange hue, 5 to 7 minutes. Keep a close eye on this to make sure you do not overcook them. Once the carrots are done, drain any leftover liquid out of the pan. Add the remaining 2 tbsp of oil, raisins, almonds and sugar to the carrots. Stir quickly over medium-high heat and keep stirring for about 3 minutes. The raisins will look plump; the carrots will take on a nice sweet flavor. Remove from heat and package the carrots into a sealed aluminum foil pouch about the size of a small paperback novel.

Remove the meat pieces from the broth and set aside. Stir the cumin, cardamom and black pepper into the broth. Continue to cook on low for 5 minutes to allow it to thicken.

Meanwhile, measure 12 cups of water and the remaining 2 tsp. of salt into a large Dutch oven or pot with a fitted lid. Bring it to a boil. Add the rice to the water and boil until it is al dente (nearly cooked, though still slightly crunchy). This will take just a few minutes depending on the rice you use. You will have to taste it to check for doneness. Do not overcook it.

Immediately strain the rice through a colander. Put the rice back into its cooking pot and add the broth. Mix well. Arrange meat on top of the rice. Set the aluminum package of carrots on top of the rice. This will keep the carrots warm and deepen the flavors without mixing with the rice yet.

Bake the rice for 15 minutes in 500 degrees then drop the temperature down to 250 degrees. Cook for another 20 minutes. Sprinkle the carrots, raisins, and almonds on the rice. Serve with a simple salad and Yougurt Raita.

Serves 6-8

Preparation Method 2:

Brown 1 medium diced onion in oil. Fry until the onion is fairly dark. Add 1 lb lamb cut into 1"-2" cubes and brown lightly.

Add 2 cups of water, 1 tsp. Salt and 1 to 1 ½ tsp each (cinnamon, ground cumin and ground cardamom) Cover and simmer until meat is tender, about an hour.
Remove meat from the juice and set juice aside. Cut 3 carrots into match stick size pieces. Saute carrots and 1 tsp sugar in about 1/4 cup of oil. Cook until they are lightly browned. Remove from oil Add 1 cup of raisins to the oil and cook until they swell up.

Boil the meat juice and add 2 cups basmati (very long grained) rice, 1 ½ tsp salt and enough boiling water to come 2 inches over the rice. Cook until the water is absorbed and the rice is tender--but NOT mushy.

Mix the meat, carrots, raisins and rice together. Place in a large oven-proof casserole, cover and bake at 300 degrees for about a half hour--or up to an hour.

To serve--place on platter, making sure the carrots and raisins show on top.

Friendship with China after Abbotabad Incident

The warmth was the same as that always observed in the past, Chinese premier Wen Jiabao met Prime Minister Yousaf Raza Gilani in Beijing on May 18. At a time when Pakistan faces threats to its security and economy and is under increasing pressure from the US, the expression of solidarity from China, the country’s time tested friend and neighbour, is highly reassuring. Chinese prime minister asked the US to respect Pakistan’s sovereignty. Considering that no other country has come out so categorically in support of Islamabad on what has turned out to be a demeaning episode for Pakistan, the Chinese prime minister’s remarks, during the course of his Pakistani counterpart’s visit, must be a source of satisfaction for the people of Pakistan. China’s support to Pakistan at this time is welcome.

We share a border, common interests and are developing a relationship based on mutuality. Besides trade there is a strategic element to our partnership, and the importance of Beijing’s statement that ‘an attack on Pakistan is an attack on China’ carries significant importance. Chinese prime minister’s assurances that changes in international politics will not affect Beijing’s relations with Islamabad, the commitment to help strengthen this country’s defence capability and the decision to supply 50 Thunder jets is a matter of satisfaction for the government.

Pakistan-China relation needs to be developed further from their current level simply because their territorial contiguity adds new logistic dimension. China has built the Karakoram Highway and Gwadar Port is ready. There has been collaboration in the energy sector which bore fruit a week ago with the commissioning of a nuclear power plant at Chashma in central Punjab and a contract with the Chinese to construct two more. As fixes go it is neither quick nor cheap – but it is durable and will provide a long-term solution to part of our power problem.

In its transactional relationship with America, Pakistan does not have many choices, but with China it has a range of choices, as do the Chinese with it. And Pakistan is right to push forwards with broadening a relationship which in the long-term will be of greater benefit. In Pakistan, politicians have been calling for relying more on China. There is a need not only to raise the level of trade but also to ensure that Pakistan is able to export at least as much as it imports.