Economic Viability Of Khalistan

[Bijla Singh]

Is Punjab, Khalistan Economically Viable?

By Dr. Gurcharan Singh

Introduction

This paper provides a political scientist's perspective on the economic viability of Punjab (Khalistan). Hopefully, it would stimulate or provoke some economists to lend their wisdom to enrich the discussion.

Surprisingly, the question of economic viability of Punjab is frequently raised by the Sikhs, who should know the answer. Others, either do not care or they think that Punjab's economic viability is beyond any doubt. Some political pundits believe that during the movement for independence, economic issues seldom attract much attention. They argue that economic problems can be confronted after .gaining the right of self-determination. They point out that the thirteen American colonies went virtually broke during the war of independence. However, soon after gaining their independence, they not only took care of economic problems but also developed a very strong socioeconomic and political infrastructure -- which became the envy of many nations.

The dynamics of economic variables

One can think of many variables which constitute important components of a viable economy, e. g. the land and water, other natural resources like raw materials, the capital, industry and technology, energy resources, agriculture -particularly adequate food production and dairy products -and finally the people (the human capital and the size of work force and consumer market).

To be sure, the people (the human resource) are the most critical variable in any economy. It is not only the will and determination of a people to survive, but also their dynamism in transforming the natural resources into wealth. Abundance of natural resources alone cannot guarantee prosperity. These resources must be transformed into wealth, which involves the dynamics of the quality of leadership, managerial skills, institutional infrastructure, the team spirit, entrepreneurship, and the will of a people to work hard -- with honesty and dignity -- and take pride in doing what they do. If the abundance of natural resources alone could guarantee prosperity, the Soviet economy would not have crumbled along with its socio-political infrastructure.

By the same token, the thriving economies of Japan, and Singapore would not have been possible, because neither of the two have significant natural resources in terms of raw materials and energy.

Socio-cultural and political landscape

For centuries, Punjab remained the footmat of foreign invasions. Its economy has been frequently ravaged by the invading forces. Many times, the economic devastation has been caused by the forces within India, e.g. the partition fiasco of 1947, and the ongoing reign of political oppression and instability of 1980's and 1990's.

Yet, this land of green revolution still remains the bread basket of India and is maintaining the highest per capita income in India. Punjab's economic resilience has some analogy with Germany and Japan. Both, Germany and Japan had suffered, inter alia, economic devastation during WWII. However, their remarkable economic recovery and prosperity are classified as economic miracles of this century. The people of Punjab had demonstrated similar resilience after the devastations of two Anglo-Sikh Wars in 1845-46 and 1849, the partition of 1947, another partition in 1965-66 (reducing the territory and population of Punjab and carving out two states--Haryana and Himachal Pradesh), and the burden of more than 500,000 hostile and oppressive paramilitary forces. A whole generation of young Sikhs has been wiped out (hundreds and thousands have been killed, driven out of the country, and/or are still in Indians torture chambers). Punjab is still bleeding and is in pain and agony. It is no wonder that the economy has taken a beating in some sectors

yet there is an indication of resurgence in others.

In addition, Punjab's economy has been subjected to other handicaps: I) New Delhi's step-motherly treatment of Punjab and the diversion of 75% of Punjab's river waters to other states in violation of the internationally recognized right of riparian states ii) fixing ridiculously below market prices of wheat and rice procured for central reserve, in violation of the free market principle, virtually robbing the Punjab's farmers of their hard labor, iii) denying industrial licenses to Punjab, through a centrally controlled and colonial style licensing policy. For instance, Punjab is the major producer of sugarcane and cotton but it could not make full use of these raw materials because industrial licenses were issued to the neighboring states like Haryana, which could make much greater profit by transforming these raw materials into finished products, iv) the hydroelectric energy produced in Punjab, but controlled by New Delhi (in violation of the Constitution of India), is distributed at New Delhi’s whims, forcing Punjab farmers to find more expensive and environmentally less safer alternatives of coal and diesel, and v) the farmers in Punjab also had to resort to more expensive diesel tubewell irrigation--further lowering the subsoil water level. Unless corrected soon, this could seriously hurt Punjab's agricultural production.

In reference to above Dr. G.S. Dhillon (Reader in History, the Punjab University, Chandigarh) has pointed out, inter alia,: in the history of colonialism, no imperial power has ever drained its colony of water resources" the procurement agencies exploit the helplessness of the Punjab farmers, the producers of wheat and paddy, who have made India self-sufficient in food, besides saving colossal amounts of foreign exchange each year. Instead of a reward or bonus... he is punished for his work and production." (India commits Suicide . Chandigarh: Singh and Singh Publishers, 1992, pp. 73 & 75)

Survival under heavy odds:

If Punjab's economy could survive, despite all the above, it should thrive the moment New Delhi’s colonial control comes to an end and Punjab's economic resources are managed for the benefit of Punjab.

The people of Punjab, particularly the Sikhs, have been playing a guerilla game to skirt around New Delhi’s discriminatory and often hostile policies. In the absence of heavy industry, Punjab has developed a significant small scale industry for the production of small tools and equipment, farming equipment, automobile parts, and spare parts for sewing machines, bikes and tractors. Consequently, Punjab not only provides more than 60% of wheat and rice for India’s central reserve (at below market prices),many industrial plants in India depend, at least partly, on the supply of spare parts from Punjab.

In addition to Punjab's traditional handloom products, cotton textiles and woolen hosieries, furniture and carpentry, and jewelry, it has recently developed a growing carpet industry in Amritsar area. Besides, Amritsar has a large printing industry which goes back to pre-partition days. Punjab also has a large transport and trucking industry. Lately, the agro-industry is also gathering momentum -- for the preservation of fruits and vegetables.

Punjab should get billions of dollars in past due payments on account of its 75% river waters diverted to the neighboring states. The future returns on mutually negotiated quantity and price of exported water should enable Punjab to import all the raw materials it needs from India and other countries.

Punjab has a vital private sector in education, housing, and community services. The religious institutions of various faiths, the Sikhs, the Christians, the Hindus and others have an elaborate network of educational institutions from elementary schools to medical and engineering colleges. This sector also maintains a network of community services, including homes for orphans and widows and health clinics. It OP generates significant employment opportunities. This sector also receives significant foreign remittances, particularly from Christian missionaries and the Sikhs in Diaspora.

It is estimated that the Sikhs in Diaspora remit more than one billion dollars annually to families and friends, and to educational and religious institutions and other charities-which constitutes a significant input in Punjab's economy.

Though Punjab is not a tourist attraction, like Kashmir and Switzerland, 7-8 million Sikhs outside Punjab (3-4 million in other parts of India and 3-4 million in the rest of the world) often visit Punjab to meet families and friends and as pilgrims to various Sikh shrines. This tourist-cumpilgrims traffic is likely to increase in an independent Punjab. There will be increasing scope for the development of tourist and hotel industries.

Besides,, the Sikh entrepreneurs and professionals thriving all over the world would help Punjab in redesigning and modernizing its socioeconomic and technological infrastructure. The only other country, which have had this benefit is Israel. One can reasonably anticipate that Punjab has the capacity to develop a self-sustained economy. If things go well, Punjab won't seek foreign aid from Western industrial countries,, nor call upon the international agencies for help. It can certainly invite foreign corporations to bring investment and technology to Punjab for mutual benefit. Punjab with its own surplus capital can focus on service industry.

The Limitations and Handicaps

It is often pointed out that Punjab is a landlocked country, which imposes a formidable handicap. True, but there are almost forty landlocked countries, which include Switzerland, Austria, Hungary, The Czech Republic, Slovakia, Mecedonia, Uzbekistan, Belaruse, Mongolia and others in Europe and Eurasia. Near home, Nepal, Bhutan, Afghanistan, and Kashmir are landlocked countries. Most of them have transit agreements with the littoral sates. Nepal has transit agreements with India and Bangladesh, while Afghanistan has with Pakistan and Iran. It does not depend entirely upon the generosity of the littoral states. There are international conventions which make it obligatory on the part of the littoral states to provide transit facilities. Besides, transit facilities do not come for free. The landlocked countries pay for the freight transport as well as substantive users' fees for the seaport facilities.

Punjab already has serious energy shortage. It faces a major challenge both to conserve energy and find environmentally safe energy alternatives like solar and wind power and to augment its hydroelectric power sector.

Despite the tragedy of Punjab, or because of it, Punjab has to rekindle the spirit of Punjabi heritage so all the people of Punjab -- Sikhs, Hindus, Christians, Muslims, Bhudists, Jains, Dalit's and others feel proud of their Punjabi heritage and work togehter to rebuild its socioeconomic and political infrastructure--somewhat like the Sikh Commonwealth under Maharaja Ranjit Singh.

The Prospects in a new regional landscape

Both historical and socioeconomic landscape indicates that an independent Punjab has adequate resources for a viable economy. It has an area of 50,376 sq. kms., which is larger than Switzerland (41,283 sq. kms.) . In its landmass, population and economic potential, Punjab is larger than almost 80 countries. Given Punjab's control over its resources without New Delhi draining its economic resources it has the potential to match the economic miracles of Singapore, Hong Kong, South Korea, Japan or Germany. Its approximately 22 million people (70% of whom are Sikhs) provide a fairly strong consumer market.

The Sikhs and Kashmiris are striving for self-determination in accordance with Articles 1 and 55 of the U.N. Charter, and are yearning for '-freedom, justice and peace, II as enshrined in the Universal Declaration of Human Rights.

The freedom of Punjab and Kashmir would provide a useful neutral buffer between India and Pakistan. Besides, it would pave the way for a South Asian Commonwealth of free nations (consisting of India, Pakistan, Punjab, Kashmir, Bangladesh, Sri Lanka, Nepal, Bhutan and others). In this new geopolitical landscape, the existing arbitrary frontiers, guarded by lethal military machines, nuclear arsenals and electronic booby-traps, would be replaced by administrative lines of jurisdiction, such as between USA and Canada. As a matter of fact, all nuclear weapons can be wiped out of the South Asian region. With open frontiers, there should be a complete freedom of movement of goods, services, capital, and people on the pattern of the European Union.

By the same token, this insane armament race between India and Pakistan would become redundant. Billions of dollars, which are now being consumed by the gigantic military establishments and killing machines, would be utilized for meeting the basic needs of people. The industrial countries would be saved from subsidizing the production of weapons of mass destruction and genocide of enthnocultural minorities in South Asia.

Indians ruling political pundits should realize that brute force cannot crush the spirit of freedom in Punjab or Kashmir. As it were, all the military might could not save either the Supra-Russian Empire (Soviet Union) or SupraSerbian Empire (Yugoslavia). India should learn from the political sophistication and wisdom of the Czech and Slovaks who have found a modus-videndi for coexistence as independent nations -- without bleeding each other to death, and without depleting the resources of international agencies for healing their wounds and feeding their hungry.

As this turbulent century is approaching its end, the year 2000 is increasingly assuming a talismatic significance. People all over the world seem to be yearning f or a better world, but hardly anybody knows how this rose garden is going to appear at the turn of the century. It is imperative that instead of living in the shadows of the past, we take positive and imaginative steps into the future with courage, faith and hope.

Prepared by Dr.Gurcharan Singh, International Studies Department, Marymount Manhattan College, New York, for presentation at the 1997 Annual Convention of the Council of Khalistan, Washington, D.C. (October 11-12, 1997)

Above article taken from http://www.khalistan.net/economic-viability.html

[sanj singh]

Although I have no expertise on the matter of the economy of Punjab or a possible Khalistan, I am of the opinion said nation will may well benefit economically by staying within the republc of India.

The Tiger economy of India is booming and although it has often been said that Punjab has been left out of this boom there has been nonetheless splashes of investment in the state. For example there are multi-national companies who have opened factories in the Punjab and no doubt these companies will move to India if Khalistan is formed. Staying within India will give more opportunity for investment, and will also encourage experience of business for Sikh youth.

It is also my opinion though that there may well be discrimination against Sikh's and other minorities groups when it comes to procurement of contracts and other areas of investment.

I am sure those who do not agree with my last comment may decide to cite Prime Minister Manmohan Singh as an example, although no doubt he is regarded as a worldly renowned economist he only became Prime Minister by chance rather than his exceptional abilities.

[Bijla Singh]

The Tiger economy of India is booming and although it has often been said that Punjab has been left out of this boom there has been nonetheless splashes of investment in the state. For example there are multi-national companies who have opened factories in the Punjab and no doubt these companies will move to India if Khalistan is formed. Staying within India will give more opportunity for investment, and will also encourage experience of business for Sikh youth.

Indian economy is booming but not every state is being benefitted from it. People at large remain under poverty, without education and toilets and continue to face discrimination from the Brahmins. Indian economy is no excuse to jeopardize the Sikh freedom. Punjab is not being treated differently and continues to be deprived of its waters, electricity and capital. In this case, Punjab won’t be able to support the investing companies. If you think investments are being poured into Punjab then clearly it would do much better if it was independent and not being treated like a stepson. In Khalistan Sikh youth will be working in factories instead of illegal bhaeyas. It is only your assumption that companies will move to India and not a fact. I can make the same assumption that companies will move from India to Khalistan because we will give them better deals. Had Punjab been independent, factories would’ve opened up decades ago and we would’ve seen the economic boom in late 60s.

It is also my opinion though that there may well be discrimination against Sikh's and other minorities groups when it comes to procurement of contracts and other areas of investment.

Opinion is an opinion and not a fact. I do not know why anti-Khalistanis always use the excuse of Sikhs starving to death in Khalistan. Punjab was raided million times by foreign invaders. It was plundered during Sikh struggle against the Mughals. Punjab faced two wars against Pakistan, then 1984 attack and then decade long massacre. Even after all of this it is still doing better than other states in India. Isn’t this the proof enough that it will do much better when it becomes independent? To me it is. It was a prosperous state during the Sikh rule. It was a self-sustaining state. It did business with neighboring countries. Only during the Sikh rule people of Punjab enjoyed peace and prosperity. I have no doubt that Khalistan will bring peace and prosperity for the people and economically it will be a richer state than India. Instead of thinking negatively perhaps you can think about solutions to make Khalistan better and ensure that it survives and does better than its neighboring countries. Guru Rakha

[sanj singh]

Bijla Singh,

My brother, you posted a very important and relevant article, and I am simply giving you my opinion. It is good for Sikhi if people appreciate different views this will enable all angles to be covered.

Although you make some excellent points of the survival of Sikhi during turbulent times, im my opinion it would not be wise to base a nation on events hundreds of years ago. We need good leaders, be they religious or temporal, that will benefit the Sikh's now and when or if Khalistan is created.

[Bijla Singh]

You are entitled to your opinion but opposing Khalistan, a Sikh Nation, based on mere assumptions is not rational. The point you missed was that Sikhs survived the turmoil times in the past. It doesn't matter when the events occurred but what matters is that what happened and how Sikhs lived through it. Punjab's situation was more devastating in the past especially during Mughal rule than now. If you read Qazi Noor Mohammad's work written in Persian you will come to know that Punjab was literally plundered and laid in ruins at that time. Then how it became the richest state and economically stable during the Sikh rule is nothing short of a miracle. Using historic examples gives us perspective and realistic views. Had there been no examples of past people like you would've questioned it more strongly by saying that it has never been done and therefore can never be done. We have the examples now and you are still opposing it because you assume such events are irrelevant. India was invaded numerous times for centuries and now it is going through an economic boom. Things change over time. Today's third world country can be super power of tomorrow so don't judge Sikhs' future based on today and Punjab's misfortune based on India's mistreatment. Sikhs are the true rulers and by Guru's Kirpa we shall rule the world and Khalistan will mark the beginning of this rule. Everyone shall bow to Khalsa.

[mann_kaum_layee_qurbaan]

base the views on current events then.

please look at the current procurement of wheat in all of india.

"Chandigarh, May 6 Punjab and Haryana, called the wheat baskets of the country as the two states contribute close to 90% of buffer stock, have, in the ongoing procurement season broken previous year’s records in wheat procurement. In Punjab as wheat procurement touched 94 lakh tonne on Tuesday, Punjab chief minister Parkash Singh Badal announced that the state may procure 100 lakh tonne as “the yield this year was 40% more than previous year”. "

"In Punjab, the six government agencies and private millers had procured more than 93.70 lakh tonne of wheat in Punjab till this evening. Private millers had lifted another 2,43,247.tonne. Of the total procurement, 89.04 lakh tonne had been procured for the central pool and 2,22,823 tonne for the state pool. The procurement for Central pool accounts for 95.1% while 2,11,522 tonne (2.3%) has been procured for the state pool. The millers had lifted 2,35,509 tonne (2.6%) of wheat. "

http://www.financialexpress.com/news/Punja...records/306434/

punjab supplied a majority of it. if punjab can feed a country of one billion+ people, what makes feeding 20 million+ difficult? by the way, export of food to india is reality. there is a reason why india holds on to the "breadbasket of india" with all its might.

these are present facts, may 2008. punjab has never relied on anyone, punjab is self sufficient, just like the gurus preached, work hard and share the wealth, that is the foundation of punjab.

an independent punjab, call it khalistan or azaad punjab, in either case, is viable.

peace.

[Raju]

Punjab by growing seasonal rice and wheat in off-season allows other states to focus on sugarcane, soyabean, maize, millets, pulses and other crops. There is quite a large portion of other states that find wheat unprofitable due to this surplus wheat from Punjab. If suppose Punjab were to stop contributing to the wheat pool, then other states would pick up from where it left and they would get higher prices for their wheat. My 2 cents worth bahmanical, RSS, lala inspired opinion.

[apne]

U.P is known for quality of sugarcane. Even Punjab cannot match that quality. The gigantic plain all along Bihar is fertile but not as irrigation friendly as Punjab. No doubt India would survive without Punjab. But secession of punjab would lead to accute food price rise and agriculture would become a liabilty. Indian economy will be like a boat in a storm.

India does not have oil, but is one of the largest consumers of energy. Even a small rise affects all factors of economy. If it were to lose punjab, the economy will become very unstable, as it has large population to feed.

Punjab would no doubt would be able to survive economically, but it will never be a success state unless Khalistan has a coastline, efficient police force, educated and farsighted leaders, effective army , scientists, ability to manufacture modern armaments etc. Khalistan won't come by screaming on internet.

Law and Order would be one of the biggest problems. At the end of the day, taliban like religious fanatics will rule and not common man. Also there would be population pressure. It would survive at any time for two generations, not more.

[12-SIKH-MISLS]

Edited - Insulting Shaheeds of Sikh Panth is not allowed.

[SmarSikher]

If Punjab was re-unified back to it's original territory pre-partition where it stretched from Central Pakistan down to Dehli, then yes, if by 'Khalistan' you mean current Punjab state in India, simply, no, it would not be viable in any sense.