Military Inc. - Aisha Siddiqa

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Presentation on book Military Inc by Aisha Siddiqa.
Umair Baber
MBA IoBM. Spring 2009

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  • 1. UMAIR BABER7271 MBA (ACM)Institute of Business Management
  • 3. Author : Ayesha SiddiqaPublication Date : 31stMarch, 2007Publisher : Oxford University Press – Pakistan: Pluto Press – London
  • 4. This book is about• This book shows how Pakistan is an unusual allyfor the US. Pakistan is a military state, controlledby its army. Siddiqa examines the role of themilitary within Pakistan. The Pakistan military notonly defines policy - it is entrenched in thecorporate sector and controls the countrys largestcompanies. So Pakistans economic base, itscompanies and its main assets, are in the handsof a tiny minority of senior army officials. Thismerging of the military and corporate sectors haspowerful consequences. Military Inc. analyses theinternal and external dynamics of this gradualpower-building and its larger impact that it ishaving on Pakistans relationship with the UnitedStates and the wider world.
  • 5. Author:• Ayesha Siddiqa is a military analyst with a War Studies from Kings College, London. Shecontributes regularly to Janes Defense Weekly.She was the Pakistan Scholar at the WoodrowWilson Center for International Scholars atWashington, DC for 2004-05.Her other books are1- Light Weapon Manufacture in Key1- Light Weapon Manufacture in KeyPublic & Private Sector (1996)Public & Private Sector (1996)2- Pakistan Arm Procurement & the2- Pakistan Arm Procurement & theMilitary Buildup (2001)Military Buildup (2001)Sooner this book MILITARY INC. was launched, theGovernment of Pakistan imposed a BAN on the book.
  • 6. In Military Inc., Ayesha Siddiqa makes an elaboratestudy of MILBUS, a concept she defines as the“MILITARY CAPITAL that is used for the personnelbenefit of the military fraternity but it is neitherrecorded nor part of the defense budget”In this book, she has mentioned that- 7% of Pakistan GDP goes to the Military.- 15-16% of Pakistan Economy is controlled by theMilitary- The esteemed worth of the legally acquired assets ofPakistan’s Generals is in the range of $2.59Mn - $6.9Mn- The Pakistan Military, as a single group, owns 12%of the total state land.
  • 8. MILBUSAGRICULTURE SERVICE LANDMANUFACTURINGMilitary business is present in all above four sectors and itoperate at three levels:1. Institutions2. Subsidiaries3. individuals
  • 9. InstitutionAt the level of institution, National Logistics Cell is anexample that is run by the Military.HISTORY1. National Logistics Corporation (NLC) was raised on 6th August1978 to reduce the congestion at Karachi Port, which had resultedin a waiting time of 50 days for the ships and was costing theGovernment $12.5 Million per annum in demurrage.2. In the process NLC introduced in the country the concept ofcontainerization and became the largest multi-modal freight handlerin the region.3. NLC also serves as the Crisis Management Arm of the Governmentto handle and diffuse logistics emergencies.NATIONAL LOGISTICS CELL
  • 10. NLC CORE BUSINESSES ARE• NLC Freight Services• NLC Construction• NLC Dry Ports & Border Terminals• NLC Polymers• Tolling• Energy• NLC Mechanical ComplexesThe net worth of NLC in 2000-2001 was an estimated$68.35Million.
  • 11. Frontier Works Organization (FWO)In the summer of 1966 a special organization was created by PakistanArmy for the construction of 805 Kilometer Karakoram Highway RoadFWO BUSINESS includes• Survey, soil investigation for roads, airfields, dams, bridges, tunnels etc.• Technical planning including preparation/vetting of designs.•Preparation/conclusion of contracts.•Planning / procurement of stores, equipment and plant.•Coordination / supervision of works, quality control and monitoring ofprojects.•Financial management of projects including budgeting and costing.•Logistic support to all units in the form of bulk supplies of rations, Petrol, Oiland Lubrications, construction materials, stores
  • 12. Subsidiaries• Fauji Foundation (Army)• Bahria Foundation (Naval)• Shaheen Foundation (PAF)• Army Welfare TrustAre the subsidiaries that are mosttransparent part of the MILBUSHere is the illustration of their business
  • 13. Fauji FoundationBUSINESSES• Fertilizer– Fauji Fertilizer Company Ltd.• Cement– Fauji Cement Company Ltd.• Power Generation– Fauji Kabirwala Power Generation Company Ltd.• Oil Terminal Operations– Fauji Oil Terminal & Distribution Company Ltd. (FOTCO)• Gas Exploration– Mari Gas Company Ltd (MGCL)• LPG Marketing & Distribution– Foundation Gas• Corn Products– Fauji Cereals, Fauji Corn Complex• Financial Services– Foundation Securities (Pvt.) Ltd.• Employment Services– Overseas Employment Services• Security Services– Fauji Security Services (Pvt.) Ltd
  • 14. Bahria FoundationINDUSTRY & SERVICES• Commercial Complexes• Maritime Services• Education• Boat Building & Engineering Works• Paints• Security & Diving Services• Travel Agency• Recruiting Agency• Trading Agency• Pharmacy• Bread Manufacturing• Child Care Center
  • 15. Shaheen Foundation• Aviation– Shaheen Airport Services– Air Eagle• Real Estate– Shaheen Complex Lahore & Karachi– Shaheen Housing Projects• Educational Services– Shaheen School Systems• Information Technology– Ensign Communiqué– Info Span Pakistan• Trades & Services– Shaheen Aero Traders - Shaheen Medical Services– Shaheen Insurance - Shaheen Rent A Car– Shaheen Knitwear - Shaheen Fuel Filling Stations• Welfare– Employment– Scholarships
  • 16. Army Welfare TrustListed Companies• Askari Bank Ltd.• Askari Leasing Ltd.• Askari general Insurance Company LtdOther Companies• Askari Cement Ltd.• Askari Aviation (Pvt.) Ltd.• Mobil Askari Lubricants Ltd.• Askari Guards (Pvt.) Ltd.• Askari Information Systems Ltd.Askari Projects• Askari Pharmaceuticals• Askari Sugar Mills• Askari Farms & Seeds• Askari CNG• Askari Woolen Mills• Askari Real Estate• Askari College for Entrepreneurs
  • 18. INDIVIDUALAt the Level of Individual, The Military providesseveral benefits to its personnel.• As Kiyani took the charge as General, about 72 Military officialswere with drawn from civil services including 6 Major generalsand 8 Brigadiers according to a statement issued by the inter-services public department» (Courtesy Gulf News date March 29, 2008)• A sure job after retirement, as the Musharraf regime has placedbetween, 4000-5000, military officers through a preferentialappointments.• Some invisible benefits like using contacts in the Military toswing business opportunities. Author has cited the name offormer ISI boss Lt. General Hamid Gul daughter Uzma HameedGul running a private bus company which was able to getpreferential access to bus route b/w Islamabad & Rawalpindi.
  • 19. LAND• The biggest & most visible perk is the Rural & Urban Land given out toserving & retired officers.• They also get subsidies & other benefits to develop the land.• The esteemed worth of the legally acquired assets of Pakistan’s Generalsis in the range of $2.59Mn to $ 6.9Mn• The Pakistan Military, as a single group, owns 12% of the total state land.• Unlike other state institution, the military can convert this land for privateusage.• Out of 11.58Mn Acres of land under its control, more than half is owned bythe Army Officers.• Out of the 46 housing schemes directly built by the armed forces, none isfor ordinary soldiers.
  • 20. • Government of Pakistan ( 2007)Federal Minister for Defense Rao Sikandar said thatfacts has been distorted in the book and notoriouspropaganda reflective of personnel bias has been let lootagainst the armed forces. The book is aimed atundermining the entity of army.It’s a matter of regret that attempt are being made to todamage the prestiege of this key institution of thecountry through publication of book based on baselessmaterial.CRITICSJune 5, 2008PAK TRIBUTE
  • 21. CRITICS• Miss Siddiqa’s empirical riches were not easy to comeby. She has dared to illuminate Pakistan Military as anOPPRESSIVE HOLDING COMPANY possessing notjust security related business, but also hotels, shoppingmalls, insurance companies, banks, farms and airlines.• Her book, while full of jargon, offers a detailed andpowerful case study of a global phenomenon: HOLLOWECONOMIC GROWTH.November 4, 2007By Stephen Kotkin
  • 22. CRITICSFor observers of the India-Pakistan peace process, thebook resurrects an old question: if the external threat onPakistans eastern border is so necessary for the militaryto maintain its internal supremacy, which includes itspolitical and economic domination, would it ever allow orenable fully normal relations with India?April 4, 2007By Nirupama Subramanian
  • 23. CRITICSThe principal contribution of the book is in its unprecedentedcoverage of the subject.The author subtly suggests that the militarys attachment topower is premised on an unshakeable belief in its owncapabilities.Very effectively the author has brought into the open a facetof the Pakistani military hitherto unexplored. The timing ofthe book is opportune and captures the current mood of thenation. Most importantly, the author has researched a taboosubject sans drama and with precision. This makes the bookboth credible and thought provoking. Anyone interested inmilitary regimes or South Asia will find this book valuable - awork of great importance, especially to those on the othersides of Pakistans borders By Swapna KonaResearch Officer
  • 24. CRITICS
  • 25. CRITICS
  • 26. THANK YOU