Dis­ney­land

The Pak Banker - - 4EDITORIAL - Dr Farrukh Saleem

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.

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