WARNING: The Walt Disney Company has eliminated Pakistan from its list of Permitted Sourcing Countries. Reason: Bad governance. Remember: The Walt Disney universe gave us Mickey Mouse, Minnie Mouse, Aladdin, Cinderella, Alice, Donald Duck, Bambi, Bruno the Dog, Captain Amelia, Daisy Duck, Prissy the Elephant and Zazu (The Lion King).
The Walt Disney Company now has a whole new set of characters: World Governance Indicators (WGIs), Permitted Sourcing Countries (PSCs), Better Work Programme (BWP) and Ethical Sourcing.
If Pakistan wants to prosper we must trade with the world around us and if we want to trade with the world around us our Ministry of Commerce must first learn WGIs, PSCs, BWP and Ethical Souring.
For the record, The Walt Disney Company is the world's largest licensor of Disney-branded toys, apparel, books and fine art. For the record, The Walt Disney Company has eliminated Pakistan from its list of Permitted Sourcing Countries. The reason: bad governance.
Question: What if Wal-Mart, Costco, Home Depot, Target, Best Buy, Amazon, Sears, Macy's, JC Penny and The Gap follow suit? Answer: Pakistan could potentially lose exports worth hundreds of millions of dollars.
The World Governance Indicators are all about six key dimensions of governance: control of corruption, accountability, political stability, lack of violence, government effectiveness and regulatory quality. The world around us is now telling Pakistan that if you rank poorly on WGIs we will stop trading with you.
The Better Work Programme is about one thing: compliance with international labour standards both at the factory as well as the national level. Pakistan is a signato- ry to some three dozen International Labour Organisation conventions but Pakistan needs to become part of the BWP. The world around us is now telling Pakistan that if you are not part of the BWP we will stop trading with you. Ethical sourcing means "ensuring that the products being sourced are created in safe facilities by workers who are treated well and paid fair wages to work legal hours. It also implies that the supplier is respecting the environment during the production and manufacture of the products." Wal-Mart, the biggest private employer in the world and the largest retailer in the world, is serious about ethical sourcing.
Metro Group based in Germany, the 2nd largest retailer in the world, now uses the Human Development Index of the United Nations and Corruption Perceptions Index to identify 'risk countries'.
Tesco, the UK-based 3rd largest retailer, is a founding member of the Ethical Trading Initiative (ETI), an alliance of companies that "promotes respect for workers' rights"
Costco, the US-based 5th largest retailer, has developed a Vendor Code of Conduct and all of "Costco's vendors, suppliers, and subcontractors must adhere to this Code in order to maintain business relationships with the retailing giant."
Target, the US-based 10th largest retailer, has developed its Ethical Sourcing Code (ESC) in order to "govern its commitment to sourcing ethically produced products."
Global trade is not about GSP+ or PakUS Strategic Dialogue. Global traders are multinationals and play by their own rules. Wal-Mart, the world's undisputed retail leader, recently rejected an offer from Pakistani readymade garments manufacturers because of the prevalent law and order situation.