Role of Interest/Pressure Groups in Policy Process

A pressure
group could also be known as an 'interest group' or as a 'lobbying unit' or
even as a 'protest team'. A pressure group has certain defined objectives
or common interests that range from protection of rights, assets, thinking,
or activities, etc. Pressure groups could be of permanent nature having an
organization with volunteer or paid professional staff, or formed for
specific purposes such as putting into action a program to respond to an
event, decision, or policy, or even created to affect fundamental changes
in the thinking of the citizens.
In Pakistan, as in other countries, the business community also has
organizations or committees that perform the role of pressure groups to
protect, promote, and project the interests of members. hese organizations
may cater to the combined interests of the business community, such as
!ederation of Pakistan "hambers of "ommerce and Industry, or they may look
after the interest of, for e#ample, the automotive industry, the te#tile
spinning mills, or the rice e#porters.
At the same time, the various "hambers, such as $arachi "hamber or %ahore
"hamber, have to tread on a fine line when it comes to protecting the
interests of members. here is always a clash of interests between the
industrialists and the traders. It is more prominent in those areas where
there is a serious competition between the domestically produced products
and the imported goods. It becomes more critical when the local industry is
susceptible to duties, ta#es, and other restrictions while the imported
goods find their way into the country and are sold comparatively at a
lesser price due to the advantage of under&invoicing, smuggling, or
mis&declaration. A case in point is the tug&of&war between the local fabric
industry and the importers of cloth thru various channels. At the same
time, there is a diversity of views within industries too, e.g. between the
polyester filament industry and the weavers. A similar disagreement is
between the original e'uipment manufacturers ()*+, in the automobile
industry and the car showroom owners.
-enerally, the pressure groups within the business community in Pakistan do
not put up candidates for election as +.As, +PAs, or even /enators.
Although some businessmen have managed to get elected, they have usually
gone thru the process in their individual capacity. here have been no
reported cases of a trade association or a chamber nominating a candidate
on an official level. /ome businessmen have been appointed +inisters or
even as -overnors, again in their personal capacity, rather than
acknowledging them as leaders of any particular organization.
At various times in the past, the business community has taken cudgels
against the government. "ertain campaigns by the business community have
made formidable impact on the economic policies. he !uel Adjustment "harge
that $*/" used to levy on its customers was termed discriminatory since the
customers of 0AP1A were e#empted. he $arachi industrialists, spearheaded
by /I* Association of Industry, initiated a media blitz resulting in the
end to this discriminatory practice. his was done during the dark days of
-eneral 2ia&ul&3a'. /imilarly, during 4unejo's regime, the "56 came up with
a novel idea to simplify the *#cise rules. his was another bureaucratic
stratagem to stifle the working of industries. Again, /I* Association of
Industry, with the late *jaz /haffi at the helm, took up the challenge. !or
nine consecutive days, hundreds of industries stopped production and a huge
crowd of 788&988 industrialists would be present in the offices of /I*
Association of Industry. oday, if such an occasion rises, hardly a few
dozen would come to register their protests. he notorious decision was
withdrawn due to the pragmatic thinking of Premier 4unejo who came to
$arachi and accepted the contention of the industrialists. /I* Association
of Industry became known as a powerful pressure group and earned the title
of :oice of Industry. A few years ago, "56 commenced the process of
registering the industries, business establishments, retailers etc under
the /ales a# regime by using the services of the armed forces. A concerted
campaign by retailers throughout the country put paid to this scheme. A
pragmatic process was derailed due to the myopic thinking of the "56
hierarchy and because of the influence that the pressure group had on the
streets and even on the non&elected policymakers in the government.
Another worthwhile e#ample of the success of a pressure group has been the
joint effort of /I* Association of Industry, All Pakistan e#tile
Processing +ills Association, Pakistan ;arn +erchants Association, and
Pakistan /ilk and 6ayon +ills Association. he intensified campaign
conducted by the leaders of these Associations thru lobbying at every
forum, thru writing to policy makers or in the newspapers, thru speeches
and presentations, and thru various forms of persuasion resulted in the
formation of the "ommittee for the 6ationalization of ariff on e#tiles
and 6aw +aterials for the Polyester Industry under the leadership of 2ubair
+otiwala by the "56 "hairman. he recommendations of the "ommittee were
accepted in toto and thus import duties were slashed, sales ta# on te#tiles
became a thing of the past, and "56 spurred into action to curb
under&invoicing, mis&declaration, and smuggling. his is a vivid e#ample of
the effectiveness of a serious and genuine pressure group.
he denial of +ost !avored .ation status to India is also the success of
pressure groups. he anti&Indian lobby is vehemently opposed to granting
this status because they consider +!. to mean that the enemy is the best
friend. his nomenclature devised by someone sitting in the hallowed halls
of a government building in 0ashington, has connotations that this lobby
considers as anathema. he other lobby is that vested interest that deals
or facilitates undocumented trade between the two neighbors. he power of
these two pressure groups has had such a forceful effect on the government
that inspite of ratifying /A!A, the +!. status has been denied to India.
3owever, the pressure groups within the business community have recently
been under pressure themselves. he leaders among the trade and industry
organizations have been infected by the effect of being close to the people
in power. his has undermined to a large e#tent the role of these bodies.
here is a general feeling among the traders and industrialists that more
often than not, they are being taken for granted by the powers that be, and
that the incentives given to the business community thru changes in
tariffs, thru re&profiling of rules, or even thru acceptance of even minor
demands, are less of a generosity or benevolence, and more of the dictates
of the global trade environment. he situation has evolved in such a manner
that it is being depicted as a 'partnership' between the trade and
industrial community and the government of the day.
he pressure groups within the trade and industry community is also
vulnerable to political influence nowadays. 0hat is happening is that there
is a reverse syndrome in vogue in many instances. "riticism of a +inister
is construed as a personal affront rather than accepting it as a genuine
disagreement with policies. his has also affected the workings of many a
pressure group within trade and industry. !urthermore, these organizations
are also under the strain of dissension among their own members. he desire
by leaders in an organization to 'rule' over its affairs has rendered many
such organizations as ineffective or futile bodies. his has impacted on
their effectiveness and influence in propagating the objectives of that
organization. And, this is what hurts the cause of the members and allows
others pressure groups to intensify their own influence and ideas.
he success of the pressure groups depends on the seriousness, genuineness,
and determination of the leaders. hese leaders have to be courageous,
pragmatic, and must have a sincerity of purpose in order to achieve their
objectives. Polarization within organizations or within the business
community would become counter&productive as it would create a vacuum that
would be filled by inimical vested interests, such as those playing
partisan politics, those that are affiliated with radical advocacy groups,
and those that want to perpetuate a stranglehold over their turf. hus a
unified and organized business community can be the epitome of an e#cellent
pressure group that ensures that the country would be a prosperous, strong,
and a viable nation.
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
+ajyd Aziz (*# "hairman= /I* Association of Industry,
!ebruary >>, >889
President
+3- -roup of "ompanies
1?@A, /I*, $arachi, B7B88, Pakistan
el= (8C88, D>9&EA9A
FPresented at the Panel 1iscussion during the C&1ay 0orkshop on Public
Policy Analysis at .ational Institute of Public Administration (.IPA,, $arachi, !ebruary
>>, >889G
Posted on !eb >B, 89 H C=>7 am
http=??www.sapulse.com?newIcomments.phpJid<A@I8IEIDB8I+