contents

regulars Editor-in-Chief
Zohare Ali Shariff

Editorial Director
7 global briefs Khadeeja Balkhi
people - planet - profits Managing Editor
Rutaba Ahmed
24 csr toolkit
cross subsidy model Research, Distribution & Development
Raza Tahir
Mehfooz Aleem
30 csr talk
intent - care & growth Creatives
Kamran Rauf
37 social partnership toolkit Shireen Lotia
csr and low-income housing Reprint
In line with our mission,
40 breather we encourage reproduction of
strategic humour material, provided tbl and content
partners are given credit
47 book in focus Publisher
sustainable value Asiatic Public Relations Network
(Private) Limited
48 musings
Printed at
future food Nikmat Printers, Karachi
Disclaimer
The views expressed in tbl are the
features authors’ and not necessarily shared by
tbl and/or APR
Declaration
From the office of
10 grain drain District Coordination Officer,
elusive commodities, starving masses City District Government Karachi
NO.DCO/DDO/LAW/CDGK/109/2007,
and ruthless spectulators Karachi
Dated May 22, 2007
14 hunger-poverty nexus
the hunger opportunity

17 liberalspeak
commodity crises: a liberal capitalist perspective
20 feed or fuel? Subscription, advertising and
the losing battle: fuel versus food feedback at:
22 socialspeak
tbl: triple bottom-line
world wheat whereabouts
25 food & beverage report Address: A-7, Street 1,
the role of the food & beverage sector in expanding economic opportunity Bath Island, Clifton,
Karachi, Pakistan.
28 corporate volunteerism Tel: (92-21)-5837674, 5823334
a diary of a food volunteer Fax: (92-21)-5867103
E-mail: tbl@apr.com.pk
32 opportunity fortified Web: www.triplebottomline.com.pk
malnutrition in pakistan: the hidden hunger

34 common sense
common sense approaches to a ‘food secure’ pakistan Subscribe to a full year of tbl
(6 issues) at the special rate of Rs.1,000 and
42 management spin save the cost of an issue.

csr for csr If you wish to subscribe to tbl, or

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44 cross-cultural observation tbl@apr.com.pk
pakistan’s csr mentality change

46 obs-inion
the grains of truth in crises

2 www.triplebottomline.com.pk
The term ‘Triple Bottom-Line’ (TBL), which translates
into “People, Planet, Profits,” captures an expanded
spectrum of values and criteria for measuring
organisational (and societal) success - social,
environmental and economic.

Through our masthead we personify the term TBL.

Essentially, our ‘bottom line’ is a grey bar with a
burgundy border which runs through the masthead,
at some points overlapping the letters and running
under them at others. Here ‘t’ stands for triple and is
represented through the three shades of the letter.
The ‘b’ stands for bottom and it sits below our grey
line with the line going through it - since this
magazine is a below the line activity, the two gel in
together. The ‘l’ stands for line and the letter sits
comfortably on top of the grey ‘bottom’ line.
acknowledgement
The tbl team expresses its profound gratitude to
the companies whose names appear below, for
their agreement to support this publication.
Bringing out a knowledge-based publication like
tbl involves considerable effort and costs. It may
not have been possible to bring out tbl in its
present format without the invaluable support
and contribution of our Founder Sponsors.
Through their support to tbl our Founder
Sponsors have confirmed that they share our
Mission of disseminating triple bottom-line

mr tbl knowledge to a diversified group including

corporate, social development and general
business groups. We believe that helping to
spread awareness of true CSR is in itself an
element of CSR. By becoming our sponsors, the
following companies have taken that vital first
step with us in our journey to facilitate awareness
and understanding of true CSR in our country.

National Foods Limited

Founder Sponsor

Mr. Tanveer B. Lone is indeed a busy man, laden with

his struggle for the truth in the Sustainability industry.
His first name, Tanveer, according to our wonderful
Ferozsons Urdu-English dictionary means
'illuminating'. We feel he is sometimes the seeker of
enlightenment, and at others, the seemingly lone
bearer. Driven towards his destination – the true light
English Biscuit Manufacturers
of CSR – he sometimes feels like a lone voice buried (Private) Limited
amidst the complex factors he confronts on the way.
Yet as he sets forth, oft-alone on this journey, he knows Founder Sponsor
he will meet companions along the sub-paths his
journey takes, merging at destinations common with
him. There will be occasions where we can all relate to
him. At times, though his capitalist-training-bred
financial focus may fluster us and his understanding
towards disseminating the true implications of the
triple bottom-line. Watch out for Mr. TBL, as he shares
his views and thoughts in articles and other features in
this issue! Feel free to share ideas with Mr. TBL that
might help clear the oft-murky waters he'll encounter
in his expedition at tbl@apr.com.pk

may-june 2008 3
 editor’s note
‘Please Sir, I want some more’
E
gged on by his peers, the orphan boy Oliver
Twist summons up the courage one day to
politely ask for more gruel. In the global scheme
of things, the 'orphaned' third world countries may not
be equally polite in times to come, as shortages of
staple food items spread across the planet. Already
food riots have occurred in a number of countries and
hunger based anger can almost certainly be vented
beyond borders in the future.
This third issue of TBL examines perhaps the most
potent, albeit perhaps not fully appreciated, global
crisis that is brewing up quite rapidly - the food crisis.
One may well ask what the connection is between a
corporate triple bottom line strategy and a global food
crisis. The immediate and obvious answer is of course
that a hungry world is an unhappy world and a
hungry and unhappy populace will not be a consumer
of the various goods and services that the corporate
world churns out. But there are far deeper implications
for the corporate sector than a slackening of demand
fuelling an economic slowdown. The well-researched
articles in this issue touch on different aspects and
provide (no pun intended) food for thought for far-
sighted companies.
While it may seem somewhat unfair to expect a CSR
solution to every socio-economic issue that crops up,
the fact remains that to be sustainable a CSR strategy
needs to be dynamic; responding to change as time
passes. Thus the pursuit of the triple bottom line and
strategizing for CSR must continuously evolve, both in
qualitative and quantitative terms. And so while the
principal responsibility for countering a global food
crisis must remain with international institutions like
the UN and its affiliates and with governments,
especially the governments of leading economic
powers, the corporate sector too has a definite role to
play.
The toolkit in this issue will prove to be useful in this
This publication is being sent complimentary to 1500 decision-makers and opinion-formers in the corporate sector, the government, NGO
sector, international institutions and academia. Recognising that your sphere of work has the potential to compliment and reinforce the
essence of our mission, we have taken the liberty to present tbl to you. It is also available at selected outlets.
We would love to hear from you. Please do contact us at tbl@apr.com.pk with your thoughts, feedback and input from your corporate or social
practices.
tbl strongly believes in knowledge dissemination and sharing. Please feel free to share tbl contents with your peers and teams - of course we
know you’ll give tbl the credit when you share our work.
4 www.triplebottomline.com.pk
regard, as it is designed to be functional. Indeed our
previous issues also included toolkits on other aspects
of CSR and we at TBL would very much appreciate if
readers who have applied these toolkits could give us
feedback on the progress and outcome. Our sworn
mission is to be a catalyst for positive change and we
need your support to fulfil the demands of this role.
The interview in this issue is of Etsko Schuitema,
Managing Member of Schuitema Associates, an
established consultancy in South Africa that specializes
in organizational transformation through people
growth. His research of 2 decades has resulted in the
Leadership - Care & Growth Model. Schuitema also
currently teaches his unique approach at Cambridge
University, U.K., and at a number of South African
universities. We were fortunate enough to conduct this
interview while Schuitema was in Pakistan very
recently, as it fits in very well with our people-focus of
the current issue of TBL. The global 'grain drain' is
after all ultimately about people - the underfed Oliver
Twists of this world; the Fagins and the Artful Dodgers
who perpetuate and exacerbate food shortages and the
Mr. Brownlows, the corporate leaders who attempt to
put things right.
Finally, do you know any one who would benefit from
TBL? Please do send us particulars of all such persons
and if they are not already in our database and
receiving TBL, we shall now include them for future
issues.
Sincerely,
Zohare Ali Shariff
Editor in Chief
 letters to the editor
T I
he publication overall and the
standard of content is
impressive and very
professional. You are a specialized
group of people in this field and the
publication covers a wide range of
subjects on CSR and social sector
development. I am a Business
Management consultant by
profession in the field of real estate,
advisory, verification etc., and I am
heavily involved in social sector
development work. We share
common goals and I believe that
TBL is an excellent initiative for
promoting a true understanding of
CSR and creating awareness among
the masses.
M. Ali Rasheed
Environmentalist
Sewa Social Environmental Welfare
Association
Karachi
W
WF Pakistan was pleased
to receive the publication
TBL, which encourages the
corporate sector to recognise both its
responsibility, and more important,
the opportunity to help conserve
Pakistan's environment. They can do
this by initiating activities which
both review the way they conduct
business, and by directly supporting
worthwhile initiatives.
We wish TBL well, and hope that it
will continue to inspire the corporate
sector to make a greater contribution
towards improving nature
conservation in Pakistan.
Ali Habib
Director General
WWF-Pakistan
Lahore
t's a great addition and hopefully
will go a long way in creating
awareness over the total gambit
of CSR.
Congratulations and best wishes for
future publications.
Pervez Ghias
Chief Executive Officer
Indus Motor Company
Karachi
I
t has excellent articles on CSR
and about companies that
integrate CSR in their core
business. It would be interesting to
read more articles about companies
and the impact of their activities on
the environment. What are the
companies actually doing to
minimize environmental impacts?
Are they investing in what they
might sow in the years to come?
What is the future of CSR in
Pakistan?
I look forward to future issues of
TBL.
Mohammad Osama
Assistant Manager
Corporate Planning
Indus Motor Company
Karachi
I
really liked the second edition of
you magazine and thank you for
letting GRI contribute.
Katherine Miles Hill
Network Communications
Coordinator
Global Reporting Initiative
Amsterdam
Dear Readers,
Thank you for sharing with us your
valuable feedback and views on
TBL.
Mr. Rasheed, we appreciate your
compliments on the publication’s
layout and the standard of content.
Although we follow a theme for
each issue of TBL, we publish
material on various CSR subjects to
cater to the interests of all our
readers. Keeping in view your
experience in social development
and our shared goal of creating an
awareness of CSR, we look forward
to your continued feedback.
Mr. Habib, thank you for your
continued feedback on TBL. We
believe that collaboration between
the corporate sector and
organizations such as WWF is
indeed fundamental to creating and
building valuable sustainable
linkages and worthwhile initiatives.
Mr. Osama, thank you for sharing
your views and suggestions. The
theme of the second issue of TBL
was eco-efficiency, and included
various articles on this subject. In
future issues, we will continue to
publish material that would be
informative and insightful to our
readers.
Mr. Ghias and Ms. Miles, thank you
for taking the time to write to us
and for your encouragement and
compliments on TBL.
We hope that TBL will continue to
serve as a platform for creating
wider awareness and
understanding of CSR through our
readers’ active contribution and
debate.
Editorial Team
may-june 2008 5
 welcome on board
The tbl team is honoured to introduce our editorial
advisory board. Comprised of diverse leaders and
practitioners, our goal is that the board will steer
our efforts to their highest potential. In each issue of
tbl, we will highlight a member of our editorial
advisory board. Ayesha Tammy Haq
Member

Corporate lawyer, legal and media consultant.

Anwar Rammal Concurrently a freelance journalist and host of a
Chairperson weekly current affairs television programme. Based
in Karachi.
Anwar Rammal is the
Chairman of Asiatic Public
Relations (Private) Limited,
internationally affiliated with
Hill and Knowlton and
concurrently the Chairman of JWT Pakistan, an
international advertising agency. In 1963, Anwar
launched the Asiatic Advertising Agency, in Habiba Hamid
Member
collaboration with a friend. Asiatic later entered
into an affiliate relationship with JWT, and is now Founder of Saracen Consulting, a corporate
fully owned by it. governance and responsibility consulting firm.
Currently articulating the Dubai Model of sustainable
He is the founder-member of Patients Behbood development. Based in Dubai.
Society for the Aga Khan University Hospital,
board member of National Academy of Performing
Arts (NAPA) and a trustee of the Foundation for
Museum of Modern Art. He is based in Karachi.

Abrar Hasan
Founder Sponsor Member

Chief Executive of National Foods Limited,

Pakistan’s pioneering multi-category food company.
Khadeeja Balkhi Innovative businessman and industry leader. Based
Executive Member in Karachi.
Sustainability and CSR consultant and internationally
experienced business and gender journalist. Based in
Karachi.

Vivian Lines
Member

President and Chief Operating Officer of Hill &

Khawar Masood Butt Knowlton’s Asia Pacific Region and concurrently
Founder Sponsor Member President and CEO Southern Asia. Based in
Singapore.
Chairman and MD of English Biscuit Manufacturers
(Pvt.) Limited, Pakistan’s leading biscuit company.
Entrepreneur and business visionary with a firm
commitment to CSR. Based in Karachi.

vision and
Vision: To steadily facilitate the germination of sustainable visions for
organisational growth, sharing specific triple bottom-line knowledge and tools

Mission Statement: To disseminate triple bottom-line knowledge to a

mission diversified group including corporate, social development and general business
groups primarily through a specialised journal, expanding in accordance with
organisational capacity and market readiness

6 www.triplebottomline.com.pk

PEOPLE
Governments Must Take
Collective Action: Amnesty
International Human Rights
Report 2008
Amnesty International (AI) recently
released its 2008 State of the World's
Human Rights Report. This report
reveals that sixty years after the
Universal Declaration of Human
Rights was adopted by the United
Nations, people are still tortured or
ill-treated in at least 81 countries,
face unfair trials in at least 54
countries and are not allowed to
speak freely in at least 77 countries.
Through its report, Amnesty
International challenged world
leaders to apologize for six decades
of human rights failure and re-
commit themselves to deliver
concrete improvements.
"The human rights flashpoints in
Darfur, Zimbabwe, Gaza, Iraq and
Myanmar demand immediate
action," said Irene Khan, Secretary
General of Amnesty International,
launching AI Report 2008: State of
the World's Human Rights.
"Injustice, inequality and impunity
are the hallmarks of our world
today. Governments must act now
to close the yawning gap between
promise and performance," Khan
said.
The results from Asia show that the
challenge to match unbridled
economic expansion with an
increase in economic, social and
cultural rights for the region's poor
remains unmet. Asia also remains
the only region in the world that
does not have an overarching
human rights instrument - although
the ASEAN charter is in progress.
One of the key trends emerging
from the report was the evasion of
corporate accountability for human
rights abuses.
Amnesty International cautioned
that the biggest threat to the future
of human rights is the absence of a
shared vision and collective
leadership. Governments must set a
new paradigm for collective
leadership based on the principles
of the Universal Declaration of
Human Rights.
The AI Report states that human
rights problems continue to grow
worldwide, and leaders must re-
commit themselves to take action
and improve the situation. Through
this Report, AI asserts that year 2008
presents an "unprecedented
opportunity" to world leaders and
emerging countries to set a new
direction and reject the policies&
practices that have led to the
deteriorating of human rights.
University of Washington to
Establish Eco-College
The University of Washington (UW)
recently released plans to create the
largest environmental college in the
world. The College of the
Environment would combine the
University's current schools of
forestry, fishery sciences,
atmospheric sciences, earth and
space sciences, marine affairs, and
oceanography. It would create a
new programme: Environment,
Society and Culture. The new
college, scheduled to open in fall
2009, would start with 97 faculty
members, 1,135 students and a
budget of more than $60 million. It
would grant degrees at the
undergraduate, graduate and
postdoctoral levels.
"Certainly, higher education in
general has a responsibility to tackle
challenges that threaten the well-
being of the planet. The UW is
strongly positioned to truly advance
the contributions of academia to the
very concrete problems of the world
around us," according to a UW
report released in May 2008. Jay
Manning, director of the state
Department of Ecology praised the
idea as an outstanding one and said
that, "The timing is perfect. I think
the public is ready for this, and
there's a generation of kids who are
more interested in the environment
than any generation has been since
the 1970s." Furthermore, he said
UW research - especially by the
Climate Impacts Group - has had a
profound effect on the climate
global briefs
change debate both in Washington
and elsewhere in the world.
Other universities that have
environmental colleges include
Duke, Stanford and Yale. In
Washington state, Western
Washington University has been a
pioneer, forming the Huxley
College of the Environment nearly
40 years ago. However, according to
the UW report, no existing
environmental college would come
close to the scope of its plans: "The
UW is better positioned to meet
these challenges than any other
university in the country or the
world."
The UW report says the college
would produce students who could
significantly add to the science and
practice of protecting the
environment: “It will be a bold,
creative, problem-oriented hotbed
of ideas.”
City Residents Emit Less
CO2: Brookings Institution
Study, U.S.
Residents of the 100 largest
metropolitan areas in the United
States emit less carbon dioxide
pollution per capita than the U.S.
average, according to a new study.
The Brookings Institution analyzed
data on household and
transportation energy use and
found that the average U.S. resident
was responsible for about 2.87 tons
of carbon pollution a year, but that
residents of the U.S.'s 100 largest
metro areas had footprints of just
2.47 tons a year on average. Among
the 100 largest cities, Honolulu
residents were responsible for the
least per capita emissions: about 1.5
tons per person per year. Lexington,
Ky., fared the worst among the
ranked cities with about 3.81 tons of
CO2 per person per year. Overall,
West Coast cities fared better than
Eastern ones due to warmer
climates, more aggressive energy-
reduction policies, higher fuel and
electricity costs, and a greater
reliance on hydropower. To lower
everyone's footprint, the study
authors recommended increasing
funding for mass transit and clean-
energy R&D, and passing federal
legislation to put a price on carbon
emissions.
Shared by Grist, an online environmental news magazine
may-june 2008 7

PLANET
Giant Space Food: China's
Solution to Food Crises
Governments all around are world
are reacting to the global food
shortage by growing more food.
The Chinese, however are dealing
with the food shortage by growing
the same amount of food - just
really, really big. The Chinese
Academy of Sciences is
coordinating this unique
programme whereby food seeds get
blasted to outer space and after
they return, transform into
enormous, exceptionally-sized
foods. Picture 210-pound
pumpkins, 2-pound tomatoes, and
cucumbers that are over 2-feet long.
This programme currently feeds
families in 22 of China's provinces,
which are taking part in this
programme. Scientists have found
no definitive explanation as to why
"space seeds" mutate. Some
speculate that it may be a result of
cosmic radiation, micro-gravity,
and magnetic fields. There is
seemingly no reason that space
seeds should be a miracle food, and
environmentalists worry about the
unknown danger to our health of
space food.
The China Academy of Sciences
first started looking at the benefits
of growing seeds in space in 1987.
Two years ago, the Shijian-8, the
first recoverable satellite designed
solely to carry space seeds, was
blasted into outer space on China's
Long March rocket, with more than
2,000 seeds. Once the seeds are
returned from space, they are
cultivated and only fruit or
vegetables that show
improvements in size, taste or
vitamin and mineral content are
selected. Vast farms are being used
to cultivate crops as space fruit and
vegetables are put on dinner tables
across China.
8 www.triplebottomline.com.pk
According to Chinese expert Lo
Zhigang, "some of China's space
seed products are already exported
to Singapore, Thailand, Malaysia
and Japan. These include breeds of
cucumber, sweet pepper, tomatoes
and broccoli." Chinese scientists
claim some space fruit and
vegetables are better than the
original. The Vitamin C content in
some vegetables is nearly three
times higher and there is a marked
increase in trace elements such as
zinc. Yields of space rice are also 25
per cent higher. To date China has
bred more than 50 new species of
plants and has plans to produce
more than 200 new species.
Recycling Sewage Water:
Safer, More Efficient Option
Cities in the U.S. are recycling
wastewater for drinking, through a
process called indirect potable use.
This initiative is being called "toilet
to tap" proposals by its opponents,
due to the drinking-former-toilet-
water gag factor and also the high
cost involved.
Cities across the U.S. have been
using recycled wastewater since
decades for nonpotable needs, like
agriculture and landscaping. Thus,
the technology already exists. In El
Paso, Texas, indirect potable reuse,
supplies 40 percent of the city's
drinking water; in Fairfax, Va., it
supplies 5 percent. Orange County,
California established earlier this
year, the largest and most high-tech
water-recycling system in the
world that churns out 70 million
drinkable gallons of water a day
from effluent. Los Angeles plans to
recycle 4.9 billion gallons of
wastewater by 2019.
It is a three-step process: Sewer
water that has already been treated
by the county's sanitation district
goes through a microfilter to
remove solids and bacteria, and
then undergoes a reverse-osmosis
treatment. Finally, it is treated with
ultraviolet light and hydrogen
peroxide to get rid of contaminants
that are left.
Recycling sewage water is a more
efficient and safe option, especially
when compared to sea water.
Desalination of ocean water is
economically and environmentally
much more expensive than sewage-
water recycling, according to a
recent report by the Pacific
Institute, California. Orange
County water officials estimate
desalinated water costs between
$800 and $2,000 per acre-foot to
produce, while its recycled water
runs about $525 per acre-foot.
Desalination also uses more energy
(and thus produces more
greenhouse gas emissions), kills
tiny marine organisms that get
sucked up into the processing
plant, and produces a brine by-
product laced with chemicals that
goes back into the ocean.
According to experts, reverse
osmosis coupled with ultraviolet
light and hydrogen peroxide treats
wastewater beyond what federal
and state drinking standards
require, they say. The
Environmental Protection Agency
(EPA) has conducted research in
Denver and San Diego on the safety
of direct potable reuse and found
recycled water is often of better
quality than existing drinking
water.
Researchers Aim to Turn
Animal Waste into Plastic
Researchers in New Zealand have
developed a process to convert
animal protein waste - that would
be blood and feathers - into plastic.
"The material we can produce has
the strength of polyethylene, the
plastic used in milk bottles and
plastic supermarket bags, but it's
fully biodegradable," says Dr. Johan
Verbeek, adding, "Plant proteins
have successfully been used to
make bioplastics, but animal
protein has always ended up
gumming up the extruder." Mmm -
pass that milk bottle! The bioplastic
would actually likely end up as
agricultural sheeting, seedling
trays, plant pots, and the like. Says
Verbeek: "The aim is to stay away
from any food packaging."
That's probably for the best.
Shared by Grist, an online environmental news magazine
PROFITS
Surge in Fuel Prices Hits
Indonesia's Poor
Indonesia, South-east Asia's largest
oil producer, quit the Organization
of Petroleum Exporting Countries
(OPEC) this week as it is unable to
meet domestic demand due to
aging wells and declining
investment. The country has for
decades helped cushion the cost of
fuel to protect the poor but slashed
subsidies this week causing prices
at the pump to jump nearly 30 per-
cent overnight. To prevent massive
street riots, the government is
offering US$ 10 a month to the
country's 19 million poorest
families. Finance Minister Sri
Mulyani has said "Although fuel
prices have been raised by 28.7
percent, the government will have
more in its budget for the poverty
eradication programme".
Days earlier, the government
slashed fuel subsidies to avoid a
budget blowout. Soaring oil prices
are affecting countries around the
globe, but Indonesia has for
decades helped cushion the cost to
protect the poor in the country of
235 million.
Prices at the pump jumped nearly
30 percent overnight, as did the
cost of cooking fuel. The fuel hikes
have pushed up the cost of basic
commodities such as rice, tofu and
eggs.
Residents living in ramshackle
homes set up under an overpass in
northern Jakarta were trying to find
ways to make their meagre incomes
stretch further. Some were cutting
back on food, while others
stockpiled wood for cooking or
rode bikes to work instead of
taking the bus.
The US$ 1.5 million aid package is
expected to be extended after
presidential elections next July.
Global Food Crisis:
Philippines Rice Farming
Suffers
Rice prices in Philippines have
soared recently due to a global
surge. Philippine's 2,000-year-old
rice terraces in the Coridellera
mountains, recognised by Unesco
as a World Heritage site, are
declining at an alarming rate and
falling into disuse as farmers leave
for more lucrative trades.
According to Raymond Bahatan,
head of Ifugao's agriculture office,
productivity of these rice terraces
has fallen to 2.5 tonnes per hectare,
below an average 3.8-4.2 tonnes.
The amount of land is fixed and
yield increases are limited because
it is difficult to harvest more than
one crop per year in this high-
altitude environment. Philippines is
the world's biggest importer of rice.
It expects to ship in 2.7m tonnes
this year, almost 10 percent of the
total needed to feed a population of
91 million that is growing annually
by more than 2 percent, states
Jonathan Watts in a recent report in
The Guardian.
According to the Manila-based
Asian Development Bank, the 30
million people in Philippines who
live on less than a dollar a day
spend nearly 60 percent of their
income on food. Due to a surge in
rice and oil prices, inflation hit a
three-year high of 8.3 percent in
April. According to the bank, a
10 percent rise in food prices will
push an additional 2.3 million into
poverty.
In Philippines, the pressures are
demographic, according to Duncan
Macintosh of the International Rice
Research Institute. The Catholic
Church, a powerful force in the
Philippines, is predicting rice
instability for at least three more
years. Alarmed by the rice crises,
the Philippine government has
ordered a halt to the conversion of
farmland to other uses. The
government is promoting eco-
tourism tours and is also marketing
the local 'tinawon' rice variety
overseas. Family planning is
important if Philippines is to
become more self-sufficient in rice,
says President Arroyo.
Rising Prices Threaten
Starvation in Bangladesh
Rising prices have triggered a food
crisis in 36 countries and the threat
of malnutrition worldwide is
looming. FAO (Food and
Agriculture Organization) has
estimated prices are likely to
remain high for at least 10 years.
FAO has confirmed it is cutting
food handout rations to some 73
million people in 78 countries. The
price of rice, Asia's staple food, has
increased to 74 percent in the past
year. "Prices will keep going up as
production fails to keep up with
soaring demand," cautioned the
International Rice Research
Institute recently.
The price of rice, Asia's staple food,
went up by more than 10 percent in
a single day in Bangladesh recently.
Rice-importing countries
Bangladesh, Vietnam and
Afghanistan have been thumped
hardest, as the world's biggest rice
producers including China, India
and Indochina are restricting
exports to protect their stocks and
limit inflation. The impact of high
food prices has triggered unrest in
dozens of countries, the latest in the
Philippines, subsequent riots in
Haiti and Egypt.
Presently Bangladesh is facing its
worst food shortages. Twice hit by
severe flooding last year and
devastating cyclone Sidr have left
hundreds of families surviving on
one meal a day after spending up to
80 percent of their income on food.
Economists estimate 30 million out
of the Bangladesh's total population
of 150 million could go hungry if
the present situation goes on.
Compiled by Rutaba Ahmed
may-june 2008 9
 grain drain

elusive
commodities,
starving masses
and ruthless
speculators
by mariam katz
for tbl

In recent months, the food crisis has increasingly been in the

news. There have been riots in many different countries all
over the world including Mexico, Egypt, India and Yemen
due to the increase in food prices. Even though these riots
have only happened recently, the increase in food prices has
been building since 2005. Between 1974 and 2005, food prices
actually dropped 75 percent and have since increased by
75 percent, according to Fritschel in an article published in
Open Democracy. In the last year, wheat prices have
increased by 130 percent, soy beans by 87 percent and rice by
74 percent, say McKir and Stewart in The Observer. April
2008. Prices for other staples such as sorghum and cassava
have also risen considerably, greatly affecting developing
countries.

Many economists believe that prices will keep rising for the
foreseeable future due to five main factors: high speculation
in commodities markets, the lack of availability of cheap oil,
rising meat consumption in developing countries, biofuels
and lastly, climate change.

10 www.triplebottomline.com.pk
Speculation in
Commodities Markets
Food prices have risen due to
speculation, but it is extremely
difficult to measure. Speculation
means that many investors are
putting money into commodities,
creating a market that is likely to
fluctuate - and remain in their
control, skewing market forces.
Many people believe that
speculation is not happening
because food reserves are at
extremely low levels and
speculation tends to promote
hoarding of resources. According to
the Food and Agriculture
Organization (FAO), food reserves
are at their lowest in 35 years.
However, in spite of this, there is
still evidence that speculation is
increasing food prices. Investments
in corn, soy, wheat and cattle have
increased to $47 billion now from
$10 billion in 2006, according to
Hanim Adnan, news editor of
StarBiz. Because of this, some
countries, including India, are now
prohibiting futures trading in food
commodities. This action is thought
to decrease food price inflation.
However, this is but a temporary
measure. In the short term,
investors should stop chasing too
few commodities and invest money
in true TBL-based initiatives
instead.
The Effects of High Oil
Prices
Food prices increasingly follow oil
prices - which have skyrocketed in
recent years. A barrel of oil now
costs approximately $130; in
January of this year, oil cost $100
per barrel. A Food Policy Report by
the International Food Policy
Research Institute (IFPRI) states
that since 2000, oil and wheat prices
have tracked each other. Both
increased three times what they
were before.
Many scientists and economists
believe that we have already
reached peak oil, meaning that
there will be a point at which oil
production will start to decline and
prices will increase indefinitely due
to this. In the last 145 years, the
world has used between 2 and 2.5
trillion barrels of oil, which is
approximately half of the supplies
available; in the next 40 years, it is
expected that the other half will be
used because of the rise in
consumption from countries such
as India and China. In addition,
98 percent of the oil the world uses
comes from just 45 countries and
half of these have reached peak
production, according to a report
titled 'Peak Oil and Food Security:
Fuelling a Food Crises' by the
Pacific Ecologist.
In the developed world, this has
already started to be a problem for
food prices, mainly due to the fact
that much of the food bought there
comes from supermarkets, which
tend to use Heavy Goods Vehicles
(HGV) that require a lot of gas. In
addition, the type of industrial
farming done in the developed
world uses 50 times more energy
than traditional farming, according
to the report. This is due to
increased use of pesticides and
nitrogen fertilizers, the latter of
which require 2 litres of diesel for
every kilogram. In addition to
increasing the food crisis, this has
also led to a decrease in the quality
of soil and a degrading in the
quality of water. As oil depletes,
the developed world should move
toward farming with less fossil
fuels.
Meat Consumption
As the developing world has
grown stronger economically,
demand for meat and other luxury
items has also grown. In China,
meat consumption has risen
150 percent since 1980, state McKie
and Stewart. In the last 15 years,
meat consumption in India has
risen 40 percent.
Because cattle are mainly fed grain,
more grain has been fed to cattle
instead of humans, creating a
shortage. In addition, as meat
consumption rises, so do prices.
Since May 2007, meat prices have
risen 12 percent. It is important to
note that the production of meat is
a big contributor to climate change.
According to the New Scientist, "a
kilogram of beef is responsible for
more greenhouse gas emissions
and other pollution than driving for
3 hours while leaving all the lights
on back home." Thus, if meat
consumption continues unabated,
both food prices and the climate
will suffer. The developed world
should set an example and start
eating less meat. In fact, if just one-
seventh of calories in the U.S were
shifted from red meat to chicken,
fish and vegetables, more
greenhouse gas emissions would be
saved than if all food was bought
from local sources. So much for
food miles calculations.
Biofuels: Fuelling Cars,
not People
Biofuels were once viewed as a way
to decrease emissions and increase
energy independence for the
developed world; however, it has
become clear in recent months that
biofuels are in fact a contributor to
high food prices. Some
organizations such as the
International Food Policy Research
Institute believe that biofuels
account for as much as 25 to
33 percent of food price inflation;
however, the FAO believes that it
may only account for 10 to
15 percent. The main reason why
biofuels have contributed so much
toward food price inflation is
because the U.S is the world's
largest exporter of corn and much
of the corn harvest in recent months
has gone towards biofuels. In 2007,
when the U.S experienced a record
corn harvest, one-third of the crop
was diverted to biofuels, according
to the Financial Post.. Since then,
the price of corn has risen
44 percent.
However, this has been very
beneficial for farmers who have
begun growing corn for biofuels -
not food.
In addition, even if 20 percent of
may-june 2008 11
 the corn in the U.S was diverted for
biofuels, it would only be enough
for 2 percent of U.S car use,
according to The Guardian, UK.
Biofuels are also affecting other
parts of the world such as
Indonesia. The European Union
(EU) has a mandate that by 2020,
biofuels will contribute 10 percent
of transport fuel. Much of the EU
biofuel will come from palm oil,
which is being grown in Indonesia
and other tropical countries.
Unfortunately, the best place to
grow these palm trees is in cleared
rainforest, which contributes to
greenhouse gas emissions. Partly
due to palm, Indonesia's rainforest
will be 98 percent gone by 2022.
Many farmers' lands have also been
confiscated by palm oil companies,
contributing to poverty.
Climate Change
In recent years, the changing
climate has affected crops all over
the world. In Australia, an ongoing
drought has decreased the rice
harvest by a staggering 98 percent.
This is an unfortunate situation
because much of the rice grown
today grows very close to sea level
and these fields may become
flooded as a result of rising sea
levels. Already, floods in China
have destroyed many rice as well as
corn crops. In addition to rice,
many other crops will be affected
by higher temperatures. By 2020, it
is expected that agricultural yields
in the developing world will drop
by 20 percent, according to the
World Situation Report by the
International Food Policy Research
Institute, December 2007.
Next Steps?
The food crisis clearly has many
causes. It is not enough to just
tackle one area, but there are some
short term steps that can be taken.
Firstly, developed countries have to
contribute more money towards
emergency food needed for the
World Food Programme, which is
now asking for $755 million
because of rising food prices,
according to a United Nations press
12 www.triplebottomline.com.pk
statement made in April 2008.
Although many countries such as
the U.S. and Canada prefer to give
food instead of money, money is a
better asset in this case because it
can be used to purchase food
grown locally, which decreases
greenhouse gas emissions. Some
countries including Vietnam and
India, have begun to ban exports.
However, some countries that are
even poorer import much of their
food such as Haiti, Liberia and
Zimbabwe which import 40 percent
of their food, states Fritschel. If
exports continue to be banned,
poor countries will suffer.
In the long term, diets will have to
change. As the developing world
becomes richer, their lifestyles are
often modeled on the developed
world, which consumes a large
amount of red meat. In the U.S., the
average person consumes 41.8
kilograms of beef per year while
the Chinese only eat 5.4 kilograms
and India just 1.3, according to
Lloyd Alter in treehugger, May
2008. The consumption of beef has
many implications; firstly, it
increases greenhouse gas
emissions, which the planet cannot
afford. It also increases the price of
corn, which people in developing
countries cannot afford. If
increasing amounts of corn are
diverted toward biofuels and for
feeding cattle, there will be hardly
any left for growing populations in
the developing world. And of
course, red meat is very high in
cholesterol, and contributes to ever
growing rates of heart disease.
The food crisis is now having an
impact on many countries all over
the world, both developed and
developing. The corporate sector
has a large role to play because
many large multinational
corporations are reaping the profits
of this devastating impact.
Archer Daniels Midland, which
processes soy, corn and wheat, has
reported a 42 percent increase in
earnings in just 2008 alone. This
money should be fed back to
developing countries that are
struggling with food supply. Many
policies in the developed world
such as subsidies for biofuels must
end as well so that families can feed
themselves first, and cars second.
As the food crisis becomes ever
more evident, countries must work
together to find solutions.
References
1. Heidi Fritschel "The Price of Food:
Ingredients of a Food Crisis"
http://www.opendemocracy.net/article/globali-
sation/
the_price_of_food_ingredients_of_a_global_cr
isis
2. Robin McKie and Heather Stewart "Hunger.
Strikes. Riots. The Food Crisis Bites"
http://www.guardian.co.uk/environment/2008/a
pr/13/food.climatechange
3. Hanim Adnan "Speculation wreaking havoc
on food prices"
http://biz.thestar.com.my/news/story.asp?file=/
2008/5/22/business/21321147&sec=business
4. BBC News "Oil hits $100
barrel"<http://news.bbc.co.uk/2/hi/busi-
ness/7083015.stm>
5. Joachim von Braun "The World Food
Situation: New Driving Forces and Required
Actions" http://www.ifpri.org/pubs/fpr/pr18.pdf
6. Caroline Lucas, Andy Jones and Colin
Hines "Peak oil and Food Security: Fuelling a
Food Crisis"
http://www.pacificecologist.org/archive/14/peak
-oil-part-one.pdf
7. Alia McMullen "Forget Oil, the New Global
Crisis is Food"
http://www.financialpost.com/story.html?id=213
343
8. Lloyd Alter "Why do Americans Think they
Deserve to Eat More than Indians?"
<http://www.treehugger.com/files/
2008/05/bush-blames-food-prices-on-
india.php>
about the writer
Miriam Katz is a freelance writer based
in London. She currently writes for the
Environmental Peace Review. Her
areas of interest include environmental
issues, renewable energy, biofuels and
climate change. She holds a Bachelors
in Arts in Political Science and
Environmental Studies from the
University of Toronto. She can be
reached at m.il.katz@gmail.com
hunger-poverty nexus

the hunger opportunity

by fouzia ishaque
for tbl

The World Bank estimates that, as of 2008 (2004 statistics), there are
about 982 million poor people in developing countries who live on
US$ 1 a day or less (World Bank, Understanding Poverty, Chen 2004).
The most recent United Nations Food and Agriculture Organization
(FAO) estimate states that 854 million people worldwide are
undernourished. This is 12.6 percent of the estimated world
population of 6.6 billion. Most of the undernourished -820 million- are
in developing countries. Undernutrition plays a role in at least half of
all child deaths each year, worldwide.

A fundamental question that needs to be asked is, why is it important

for the corporate sector to be concerned about the startling facts on
poverty and hunger.

Hunger and its
Implications
The Food and Agriculture
Organization of the United Nations
in its report 'The State of Food
Insecurity in the World' states:
"In economic terms the case is more
complex but no less cogent. Every
child whose physical and mental
development is stunted by hunger
and malnutrition stands to lose 5 to
10 percent in lifetime earnings. On
a global scale, every year that
million years of productive life
from family members whose lives
are cut short or impaired by
disabilities due to malnutrition. The
far-arching implications of hunger
cost developing countries billions
of dollars in lost productivity.
“ Every child
whose physical and
mental development
Why Businesses Must
Take Action
One might argue that "the business
of business is business" - but then
this is precisely what gives
corporations the capability and
credibility to expand their
economic opportunity. According
to the Corporate Watch survey, out
of the world's 100 largest
economies, 51 are now global
corporations. Only 49 are countries.

hunger persists at current levels is stunted by hunger Ironically, instead of creating

causes deaths and disability that
will cost developing countries
future productivity with a present
discounted value of US 500 billion,
or more."
uniformity of access, opportunity
and malnutrition and choice, the top 200 corporations
stands to lose 5 to are creating what some might call a
global economic apartheid - and not
10 percent in a global village.

Hunger and malnutrition inflict
heavy costs on individuals,
communities and nations. 'The
State of Food Insecurity in the
World' report also identified that
deficiencies and the lack of essential
vitamins and minerals cost more
than 5 million children their lives
each year. It costs households in the
developing world more than 220
”
lifetime earnings
Manifestations of the poverty virus
are not just limited to the
immediate effecters but the overall
economy of the country and the
business sector can never separate
itself from such a stark reality.
The biggest national and
multinational banks vow in their
TV commercials of easy access
loans, 24/7 service and fuss free
processes. Yet, these banks only
serve the documented and
bankable population of Pakistan
where for a small investor getting a
loan from the bank is nothing short
of winning a battle. Even if we look

14 www.triplebottomline.com.pk
at the statistics provided by the As can be seen in the graph below, without the support of the private
government, based on Pakistan's Pakistan's population growth rate, sector and citizens, can at best be
current population of an estimated according to the Federal Bureau of only a policy-making authority. The
160 million, 24 percent translates Statistics, Planning and need is to address the requirements
into more than 38 million people Development Division, is of small-scale farmers, by
living below the poverty line. 1.8 percent and in comparison, the increasing their access to land and
However, independent analysts, production of wheat and rice has natural resources. Also, for the
claim that the poverty level has not grown 1 percent or less since 2002. corporate sector, especially the
decreased and that the number of With this scale of the problem, the food, beverage, fertilizers and
people living below the poverty need is to adopt meaningful pharmaceutical sectors, the issue of
line is still about 34 percent, commensurate strategies. food insecurity, poverty and
according to a recent news story in Otherwise, reducing food hunger can actually serve as an
The News. insecurity will run the risk of untapped market. Innovation
becoming mere tokenism, with only technology usage and a 'pro-poor'
Looking at these statistics and a few showpiece projects to show approach can increase their
Pakistan's profile as a for the effort. productivity and sales, while
predominantly agrarian economy, accelerating economic growth in
it follows that agriculture should be The World Hunger Series report by the country, particularly at the
the focus of the economic policy the United Nations World Food bottom of the income pyramid.
makers. Regrettably, agriculture Programme establishes the
has had a zigzag history in our real relationship between hunger and The Business Case of
GDP contributions. learning in shaping economic
Hunger: Expanding
Agriculture
Sustainable
Agriculture Percentage in Real GDP

Opportunities
Large firms and their partners can
8 6.5 play an important role in
Agriculture expanding economic opportunity in
6 4.3 5 multiple forms.
4
The emerging Indian retail giant,
2.3
2 1.6 Reliance, is a working example of a
successful business model based on
0 triple bottom line (TBL) value
2002-03 2003-04 2004-05 2005-06 2006-07 creation.
Fiscal Years
Reliance is tapping into the
country's own rural agricultural
In a country of Pakistan's size growth. Research by the UN in this
supply chain to provide quality
where population growth has report shows that improved
food for its stores. Reliance has
maintained a steady upward nutrition leads to a more
built an inclusive business model
stream, feeding people is an uphill productive workforce with higher
that creates a close link with the
task - especially analyzing the levels of talent and skills leading to
supply chain of poor farmers, and it
government's economic policy, economic development.
procures produce directly from
geared towards bringing quick Nevertheless, it is important to
thousands of farmers in villages
money into the market. realize that the government,
within a 15-kilometre radius of
their collection centres. Reliance
trains farmers to produce goods
2008
167,762,040 according to certain standards and
180,000,000
requirements, reduce loss and
1998
160,000,000
130,580,000 spoilage and guarantees purchase
140,000,000
of all produce delivered. Access to
1981
information and fair price has
Population

84,254,000
120,000,000
1972
65,321,000
improved farmers' yield and
100,000,000
reduced wastage.
80,000,000 1961
42,978,000
1951
60,000,000
33,816,000 The polarization of profit and not-
40,000,000
for-profit has been much of a
20,000,000

0
Population growth over the years

may-june 2008 15
 handicap, leading us to
conveniently overlook business
opportunities through collaborative
initiatives. Fortunately, however it
is now being better understood by
both the sides that multi-pronged
partnerships create a win-win
situation, for all parties.
The Famous Pakistani
Example
The United Nations Development
Programme (UNDP) gender
support initiative known as
Community Empowerment
through Livestock Development &
Credit (CELDAC) is a prime
example in Pakistan of
collaboration across Government,
Aid Agency and Corporate sectors.
Nestlé and Engro Foods, a local
Pakistani company, serve as
implementation partners in Punjab
and Sindh respectively for the
CELDAC project.
How and Why It Works
Since farm animals are mostly
cared for by women, who often lack
training in livestock management,
together, these two competitors
established the country's largest
milk collection network. In
collaboration with the University of
Veterinary Sciences, they have
developed a one month, hands-on
training curriculum and
certification programme on basic
animal health. They have trained
over 800 women, of which 70
percent of the graduates are
independent entrepreneurs
delivering animal health services in
their villages and have added an
additional Rs. 2,000 - 3,000 to their
family incomes. The increased
capacity of the human workforce
with the corporate sector's
management skills has linked rural
development in the affected
villages to market mechanisms,
which makes the supply and
demand of milk less volatile and of
good quality.
The Acumen Fund has also been
working in developing and
underdeveloped countries to
16 www.triplebottomline.com.pk
change the ad-hoc models of
dependence to market-driven,
sustainable entrepreneurial
approaches. Their investment in a
MicroDrip project for instance is
creating a new market for poor
farmers to leverage technical
innovation and add to the
development of their region. They
have successfully applied their
entrepreneurial fund-based
investments to create 'Khuda ki
Basti' models that provide housing
and infrastructure for the slum
dwellers through investment in Mr.
Tasneem Siddiqui's social
enterprise, Saiban.
“ In order to be
sustainable it is
critical that targeted
interventions are
made in the area of
nutrition by food and
pharmaceutical
companies and
cycles of good
nutrition are created
through involvement
of the communities
Lessons Learned
” Fouzia Ishaque works as Project
Many successful case studies are
useful for us to take lessons from,
replicate and improvise to achieve
developmental objectives. It is
critical that children are provided
food as early as possible because
undernourishment is most
damaging at that age.
In order to be sustainable it is
critical that targeted interventions
are made in the area of nutrition by
food and pharmaceutical
companies and cycles of good
nutrition are created through
involvement of the communities.
The Danone-Grameen partnership
in Bangladesh has developed a
network of local rural micro dairy
farmers to produce and market
yoghurt in poor communities
which is then distributed door to
door by the 'Grameen Ladies'.
Another set of companies have
created small sachets of fortified
foods which are within the
purchasing power of the poor.
In a nutshell, creating business
delivery models that are physically
and economically accessible;
investments that are continuous in
their approach to providing
adequate food or means to its
acquisition; and visionary leaders
who recognize that returns come
over a long period, are the key to
sustainable development.
The time to act, is now. Or rather
was yesterday - everyday 900
people die of poverty-related
causes in Pakistan, according to
Mr. Siddique Sheikh, Chairperson
of Federation of Pakistani
Chambers of Commerce and
Industry's Standing Committee on
CSR. Everyday that we delay, we
are nine hundred lives too late.
about the writer
Manager at Habib Bank Limited (HBL)
in HR International & OD. She has
participated in crucial change initiatives
of the bank. She began her career at
an international software company
Clarus Technologies, gave it a new
brand identity and strengthened
strategic alliances. Fouzia holds a BCS
in Software Engineering and an MBA in
Finance from SZABIST.

commodity crises:
a liberal capitalist perspective
I
n 1997, Vietnam, a
predominantly agricultural
country where 80 percent of the
population is rural, lifted the
internal and external trade
restrictions on rice: its main staple.
95 percent of urban households are
net buyers of rice and a North-
South divide exists in terms of rice
production. The incidence of
poverty in the rural areas,
45 percent, is much higher than that
in the urban areas: 10-15 percent.
The proportion of income spent on
food items for poor households is
63 percent. Real prices rose after the
removal of trade restrictions for all
the households.
However, a recent study linking
by ali salman
for tbl
household welfare and trade
reforms by the World Bank shows
that the trade reforms were "broad-
based and pro-poor" (Aylin Isik-
Dikmelik 2006). The study
concluded that the trade reforms
benefited all households whether
they were net buyers or sellers.
Vietnam recorded drastic reduction
in poverty incidence following
these trade reforms.
What path does Pakistan, sharing
many characteristics with Vietnam,
need to follow, while struggling to
confront the wheat crisis? This
forms the sole objective of this
article.
In Pakistan, again, primarily an
liberalspeak
agricultural economy, economic
liberalism has been accepted as the
'bible' of all economic decisions.
Except in the case of agriculture
itself. In manufacturing, we
embraced the post-quota world
many years ago. In services such as
banking, telecom, insurance or
wholesale trade the free market
rides. In recent years, economic
growth has been mostly propelled
by the services industry, where the
free market forces have been
allowed to work relatively
independently.
Why we continue to religiously
control the agriculture sector is
both a political and economic
question.
may-june 2008 17
 Market-based Equation
Dynamics
The economic equation is fairly
simple, at least in its classical tone.
When the price of any commodity
rises, the profit margins of
producers rise and in an open
economy, it attracts new producers.
In our case - that would mean more
farmers planting wheat.
The entry of new producers
increases the supply. Which in turn
ultimately brings down the prices
as well as the profit margins. Thus,
the market reaches a classical
equilibrium point.
Obviously, this does not work as
neatly in the real world. Claiming
'market failure' as their excuse, the
government intervenes.
Apparently, this state intervention
leads to a worse failure, due to 'rent
seekers'. The bureaucrats are not
simply trained or well-informed for
making business decisions and they
tend to give leeway to cronies.
Therefore, mafias and cartels
emerge, which monopolize sources
of production and this leads to a
concentration of wealth.
Equation Policy Lag
Shrunken
Economic liberalism, argued for in
this article, demands for the
removal of entry and exit barriers
from trade and argues that given a
fair chance, the market is a far more
efficient and just mechanism for
resource allocation.
Economic Liberalists argue that the
removal of trade restrictions in the
wheat market -both internal and
external- is more beneficial for all
the sections of the economy in the
long run. Particularly because, in
the case of the wheat market -
unlike capital intensive
development- the policy lag would
be fairly short.
The reason is simple: the farmers,
once they get the right price signal,
18 www.triplebottomline.com.pk
would cultivate more wheat - and a
decision by the farmers to switch
their cultivation - would normally
take six months to a year. Thus,
potentially within a year even, we
will be able to produce more wheat,
which will offset the demand.
Consequently prices will come
down.
Land Prices Shoot
Higher Still
The United Nations International
Fund for Agriculture and
Development (IFAD) has reported
that rising food prices are already
stimulating a supply response. In
Ghana for example, the corporate
sector is reacting quickly, especially
in the maize sector. In many parts
of the developing world this is
reflected as an increasing demand
for land, particularly from large
scale investors. In Senegal, the
demand is particularly high for
irrigated land. In Egypt, both the
purchase and rental prices for land
are soaring.
We should expect to have a similar
response in Pakistan to an increase
in the prices, provided we allow the
market to work.
If the price of the land increases, the
owner of the land is likely to
become wealthier. If the price of a
product increases, the producer is
likely to benefit. Theoretically, of
course.
The Real Cause:
Inflation or Production
Consider inflation and its effect on
the low-income household budget,
a large chunk of which comprises
food.
In 2006, the Pakistan Institute of
Development Economics (PIDE),
run by the government, published a
joint study on Wheat Pricing policy,
which was conducted by a team
drawn from the World Bank and
Pakistan Agriculture Price
Commission. This study concluded
that: "analysis of price multipliers
indicates that increases in wheat
procurement prices (one means of
promoting domestic procurement)
have relatively small effects on
overall price levels”. It also
concluded that “market forces play
a dominant role in price
determination in Pakistan, and that
policies that promote the private
sector wheat trade can both
increase price stability and reduce
fiscal costs".
Conclusively the study held that
"fluctuations in production, rather
than market manipulation, are
plausible explanations for price
increases in recent years".
The current wheat crisis is driven
by a production shortfall, as
concluded in the PIDE study. When
wheat is imported to offset the
production shortfall, we end up
supporting a wheat grower
somewhere in Australia or the
United States. Would it not be
better to pay our own grower an
international price? Given that the
price signal is the only effective
way (in my humble, liberal
opinion) to enhance the production
and hence stabilize the price.
The acuteness of our production
shortfall in the coming crop can be
gauged from the simple fact that
the usage of the main input,
phosphate, was 50 percent less than
in the previous year. If the growers
of wheat are given appropriate
price signals, who would
knowingly reduce the cultivation of
wheat?
Facades of State
Intervention
The government intervention in
purchasing and storage through
PASCO (Pakistan Agricultural
Storage and Services Corporation)
has also taken an nasty turn. A
recent article in Dawn revealed that
a staggering 2 million to 4 million
tons are 'missing' from the market.
The farmers would not like to be
coerced by government
functionaries and they instead tie
knots with private investors - the
infamous middleman - who
promises to pay them more than
the market. In practice, that is
exactly what is happening. If you
visit an average village in Punjab
and talk to a wheat grower, he will
readily tell you how he does not
care about the support price of the
government. The market effectively
controls the price movements but
the state continues to masquerade
its delusion of control.
As a matter of fact, when the
government takes matters, like
fixing a quota for flour mills, in its
own hands, the issue of nepotism
and rent seeking surfaces rapidly.
How can we trust our government
officials to be well-informed,
transparent and fair while
determining the quota for
thousands of flour mills? Instead
we should admit that the flour
processing market is a near perfect
market in the sense that no single
player -or a cartel- is in a position to
influence the market. If we can
trust the 'invisible hand' for a
moment, it is highly likely to create
a win-win scenario.
Opponents of the free market in the
wheat market erroneously argue
that the benefit of a higher price
would be largely taken by land
lords and small to medium wheat
growers would not benefit much.
To determine the credibility of such
a statement, we must know the
composition of ownership of
agriculture farms.
The Pakistan Agriculture Census
2000 reports that wheat is grown on
75 percent of privately owned
farms. 94 percent of Pakistan's
wheat cultivated area is owned by
farms of less than 25 acres in size,
which suggests that wheat
production, just like the SME
phenomenon in manufacturing, is
largely characterized by small to
medium farm owners. In fact only
10 percent of farms are equal to or
less than 1 acre, and their produce
is only for self-sufficiency and does
not reach the market.
We argue that the great majority of
this price hike -to be fair, we mean
trade freedom- would belong to the
rural poor and lower middle class.
We now show an estimate of the
wheat tradable surplus and its
implications for our fiscal policy,
provided market prices prevail.
Wheat Tradable Surplus
Total Production 22,000,000
Kept for Rural 10,098,000
Households Consumption
Kept for Seeds 8,000,000
Available for Trade 3,902,000
Sale Price (Per Maund) 1,200
Sale Volume (Rs.) 117,060,000,000
Tax @ 10% 11,706,000,000
The free market principle should,
theoretically, come full circle. Once
the agricultural market is free of
state intervention, either via state
subsidized inputs or by support
price, then,, agricultural income
should be taxed. If a tax rate of
10 percent - like Ushr - is levied,
then it is likely to generate tax
revenues close to Rs. 11.70 billion. If
need be, it is this wheat generated
income, which should be utilized to
provide the wheat-flour to the
poor, whether urban or rural, in a
market friendly fashion. Even for
this, we argue that privately
managed utility stores are a much
better option than food coupons or
cash grants, which are more likely
to be mismanaged or misused.
Studies have shown time and again
how cash grants are always
misused and the food coupons
issued in the late nineties proved
ineffective.
Advocating the free market
principle in the agricultural market
with the backdrop of raging
poverty and endless queues for
Atta (wheat flour) indeed sounds
dismal and against egalitarian
principles. However, who likes
getting an injection or undergoing
surgery?I It is always painful. But,
who amongst us would not
consider bearing that temporary
pain, which is critical for our own
well-being in the long-term?
Economic liberalism proposes a
bitter pill, but believes in it as a
panacea for the illnesses of our
economy. And so it must be
swallowed - and the sooner, the
better.
about the writer
Ali Salman currently works as a
senior partner at Development
Pool - a consulting firm - and teaches
Economics. Ali specializes in economic
analysis, entrepreneurship, policy
formulation and business models. He
has worked in the private, public and
development sectors of Pakistan for
over ten years. Besides various
publications, the book 'Alternative
Youth Policy' is to his credit. He
engaged in good governance reforms,
citizens-government liaison and policy
research during a two-year period at
Planning Commission, Government of
Pakistan. Ali did his Masters in
Economics from Boston University; his
MA in Development Studies as Royal
Netherlands Fellow; and an MBA from
Quaid-i-Azam University, Islamabad.
may-june 2008 19
feed or fuel?
the losing battle: fuel versus food
I
n the environment of rising oil
prices and issues of climate
change looming large, rich
countries needed to wean
themselves off dependence on
fossil fuels. Biofuels seemed like a
sure winner - firstly, because
supporting biofuels meant
supporting domestic agricultural
industries. Secondly, because
biofuels were thought to be
greener than fossil fuels since the
amount of greenhouse gases that
are emitted during combustion is
equivalent to the amount it
absorbs in its lifetime. As such,
many countries rushed to provide
generous policies to encourage the
production and use of biofuels.
While well intended, these across-
the-board policies have had major
implications on the world's food
supply as our food needs become
increasingly tied to our energy
needs.
20 www.triplebottomline.com.pk
by jia en teo
for tbl
Commodity War: Food
or Fuel?
Biofuels come from various sources
- ethanol from corn, sugar beets or
sugarcane, oils from seeds and
grains such as the oil palm,
rapeseed or soybean. These
feedstocks can be burned to yield
energy in our cars and factories.
But, more importantly, these
feedstocks are also sources of food
for the world. The increased
demand for biofuel feedstocks in
the western world has led to direct
competition for these commodities
as food versus fuel.
Additionally, as some crops, such
as corn become more profitable to
grow because of biofuel subsidies,
farmers switch to planting them
and reduce their plantings of other
types of crops. This lowers the
market supply of the other crops
and drives up overall prices.
Clay Ogg, an agricultural
economist with the U.S.
government explains the
relationship between US biofuel
policy and food prices, "Reductions
in U.S. exports of corn and other
crops lead to higher, world
commodity prices. In the U.S., it is
easy to plant less soybeans and
more corn when the price of corn
doubles, as occurred recently. This
raises the world price of soybean
oil... so we are a major contributor
to the increase in vegetable oil and
palm oil prices."
In Europe, sunflower oil and
rapeseed oil that were previously
produced for consumption are now
being used as biofuels to generate
"green" energy. Increased demand
for vegetable oils to meet this new
energy need, along with increased
demand from population growth,
continues to drive up prices.
The growth of the biofuel industry
has triggered increases not only in
the prices of corn, oilseeds, and
other grains but also in the prices of
seemingly unrelated crops and
products. The use of land to grow
corn for ethanol is reducing the
acreage devoted to other crops.
Food processors who use crops
such as peas and sweet corn have
been forced to pay higher prices to
keep their supplies secure and
these additional costs are
eventually passed on to consumers.
The price of livestock and poultry
has also gone up since animal feed,
which is largely grain-based, is now
more costly.
Fuel-friendly Policies
over Food Security
A Goldman Sachs report says that
forty-one countries are currently
pursuing policies to promote the use
of biofuels over the next decade. If
implemented in full, these policies
would increase global biofuel
demand from 10 billion gallons per
year in 2005 to 25 billion gallons per
year by 2010, a 20 percent
annualized growth rate.
Although this demand comprises a
relatively small portion of total crop
demand, about 5.5 percent, the
report adds that biofuel production
will remain a key driver of strong
agriculture demand growth in the
coming years, primarily owing to
government policies for biofuel
usage.
Most of the countries with biofuel
production and usage policies are in
the northern hemisphere while the
most efficient crops for production
are in the southern hemisphere. For
example, sugarcane, which is the
most efficient ethanol crop, grows
abundantly in the tropics but not in
the north, while jatropha, the most
efficient non-food biodiesel crop,
grows in southern Asia and Africa.
Sunflower oil and rapeseed oil,
which are grown in the northern
hemisphere, are far less efficient as
biofuels. However, rather than
promote the use of the most efficient
food crops as biofuels, the primary
motivation for these blanket policies
in the western world is typically to
secure the supply of energy and
increase self-sufficiency.
This forces the industry to operate
on the availability of feedstock or
indigenous food crop rather than be
determined by the 'natural'
economics of the market. As a
result, these policies generate a
much greater strain on resources
than would otherwise occur if there
were no barriers to trade.
"Many of these subsidies are poorly
coordinated and targeted," says
Simon Upton, director of the Global
Subsidies Initiative, regarding such
across-the-board biofuel policies in
the western world. "All indications
are that subsidies are being piled on
top of one another without policy
makers having a clear idea of their
potential impact on the environment
and the economy. Yet the potential
for waste on a grand scale and some
spectacularly perverse
environmental outcomes is large."
To highlight Upton's point - under
existing policies, the biofuels
industry will, in aggregate, receive
support worth over $92 billion
within the 2006-2012 time frame.
However, the benefits of the policies
are limited. A literature review from
the Congressional Resource Service
concluded that using corn ethanol
cuts net greenhouse gas emissions
by only about 20 percent because it
requires heavy use of fertilizers and
pesticides, which are energy-
intensive and cause water pollution.
Biofuels: Even More
Greenhouse Gases and
Still Not Enough Fuel?
Furthermore, even if the entire corn
crop in the United States were used
to make ethanol, that fuel would
replace only 12 percent of current
U.S. gasoline use.
Recent research published in Science
magazine also suggests that when
land-use changes are taken into
account, production of corn-based
ethanol actually leads to a net
increase in greenhouse gas
emissions because farmers are
starting to plant on land that had
previously been protected under a
land conservation programme.
Similarly, the diversion of cropland
from food to fuel will lead to even
more grasslands and forests being
cleared to meet both the growing
demand for biofuel and food. One
study estimates that, over a thirty-
year horizon and taking into
account these land-use changes,
corn-based ethanol doubles the level
of greenhouse gas emissions relative
to gasoline. In the European Union,
similar concerns have prompted a
shift in biodiesel policy because it
was found to be contributing to the
destruction of Indonesian
rainforests to produce palm oil for
biodiesel.
New Food Prices:
Fueling Food Insecurity
The International Food Policy
Research Institute, in Washington,
D.C., has estimated that the increase
in global biofuel production will
push global corn prices up by
20 percent by 2010 and 41 percent
by 2020. The prices of oilseeds,
including soybeans, rapeseeds, and
sunflower seeds, are projected to
rise by 26 percent by 2010 and
76 percent by 2020, and wheat prices
by 11 percent by 2010 and 3 by 2020.
In the poorest parts of sub-Saharan
Africa, Asia, and Latin America,
where cassava is a staple, its price is
expected to increase by 33 percent
by 2010 and 135 percent by 2020.
What Now?
To mitigate these price increases, the
right incentives must be put in
place. Instead of promoting more
mandates, tax breaks, and subsidies
for biofuels, governments should
make a major commitment to
substantially increasing energy
efficiency in vehicles, homes, and
factories; promoting alternative
sources of energy, such as solar and
wind power; investing in research to
improve agricultural yields and
working to increase the commercial
viability of fuels derived from
cellulose. Until then, high food
prices are likely to be here to stay.
about the writer
Jia En Teo is an
online entrepreneur
and writer who
currently resides in
New York City. Aside
from her online
ventures, she has
great interest in issues related to social
entrepreneurship, corporate
social responsibility and the
environment. She graduated from the
University of Michigan with a Bachelors
in Political Science and Economics.
may-june 2008 21
socialspeak
world wheat whereabouts
by ahsan ali mangi
for tbl
P
akistan is the world's sixth
largest producer of wheat,
according to the Ministry of
Food and Agriculture, with an
annual production of over 21
million metric tonnes (MT). The US
Department of Agriculture
estimates Pakistan's rice
consumption to be over 2.5 million
MT. With exports of about the same
quantity, Pakistan is capable of
feeding its own population. Faced
with such positive facts, we all
wonder about the exact reasons for
the prevailing wheat crises, which
has existed in varied degrees for
over a year now.
The Pakistan
Government Wheat
Policy
Before delving into the crisis, it is
important to present an overview
of the prevailing Government
wheat policy (also known as Food
Security policy).
The Government is obliged under
the constitution of the Islamic
Republic of Pakistan for the
provision of essential food at
affordable prices to the population
throughout the country (please
hold back that snicker and eye-roll).
To fulfill this responsibility,
provincial governments have setup
food departments for the purchase
and storing of wheat stocks at
government silos, which are then
released to flourmills so as to keep
wheat and wheat flour available at
an affordable price throughout the
year.
Procurement and storage of wheat
by the Government is necessitated
due to the peculiar nature of
agriculture produce: wheat is
harvested once a year during April-
May. Thus, there is a glut of wheat
inherent within the system. In the
commodity markets every
22 www.triplebottomline.com.pk
cultivator is anxious to sell his
produce and clear liabilities (such
as fertilizers, seeds) and take any
well-deserved profit back home.
However, arrival of the crop creates
disequilibrium in the market
benefiting the purchaser who tries
to bring the prices down. The
notorious middlemen enter here.
Thus the government also enters
the market with an announced
minimum price and ready to buy
all the wheat being offered. This
sets a floor price for wheat in the
time of plenty and curtails possible
exploitation of the farmer, thus
influencing cultivator's decision to
grow wheat again, since it is
profitable. Wheat storage is a costly
business in terms of the
opportunity cost of investment,
storage, fumigation and
transportation charges.
Thus, as months pass, overheads on
wheat stocks result in an increase in
prices and the private sector brings
its wheat in the market based on
their comparative holding power.
Moreover, the government also sets
its own release price for wheat,
which only partially offsets
overhead costs on storage. This
price serves as the ceiling price in
the wheat market and private
traders clear off their stocks before
this limit is reached. This policy is
in operation with relative success
for the last 25 years except for the
times when the wheat crop in
Pakistan has failed.
Why the Crises?
Why has there been a crisis in the
supply of wheat and a spike in
prices since last July, when in fact
Pakistan produced wheat
comparable to its requirements and
imported 1.8 millions MT of wheat
during December 2007?
Different quarters have given
different alibis including
misrepresentation of crop size by
Government to boost GDP growth
figures and concurrent permission
to export wheat (700,000 MT was
exported in May-June 2007) which
later adversely affected market
sentiments causing panic buying by
public and hoarding by traders.
Another version blames the
Government for failure in assessing
changes in the local and
international situation; increased
wheat requirements as poultry feed
(due to corn crop failure) rising to
1500,000 MT as per estimates of
experts.
Another postulates that people are
switching to wheat as rice prices
sky rocketed due to extensive
export of the commodity.
A fourth proposed reason is the
increase in international wheat
prices peaking at an unprecedented
$550/MT, according to the Chicago
Board of Trade.
Unrealistic agriculture-related
public policy also came under
criticism. An increase in the cost of
production, due to the doubling of
fertilizer costs and increased
petroleum prices, also played a role
in disrupting the tested Government
wheat policy as purchase prices set
by the government did not cover the
cost of production, thus
incentivising the growers to: either
retain their crops or try selling them
at higher prices to private traders if
possible.
World Wheat
Whereabouts
While all the above arguments hold,
we are still at a loss to explain fully
the current happenings in the local
wheat sector.
The world wheat situation has
improved this year. World net
wheat production is estimated to be
8 percent higher this year than last
year. Estimated in 2008 by the U.S.
Department of Agriculture, at a
record 656 million MT for 2008-09
against total consumption of 642
million MT world wheat stocks
grew from 110 million MT to 124
million. MT. There has been record
production in Canada, EU, U.S. and
Russia. Australian produce is
estimated to double (from 12 to 24
million MT) after consecutive crop
failures in the last two years. India,
with 76 million MT of home-grown
wheat, has made it clear that it will
not import wheat this year.
Apart from Pakistan, which has
announced its intention to import
2.5 million MT of wheat during
2008-2009, there is no non-
traditional buyer in international
markets for wheat to pump wheat
prices up.
All factors point at easing of
international wheat prices in the
coming months. Thus, the present
wheat situation in Pakistan is not
due to the global wheat scene as is
oft-attributed by seemingly guilty
quarters.
Current Wheat Situation
in Pakistan
The Pakistan Government increased
the minimum price for procurement
of wheat by almost 38 percent in
2008. The aim was to offset price
escalations in agricultural inputs
and increase returns for the
growers.
This is the single largest increase the
Government has initiated in the
minimum procurement price of
wheat in the past twenty five years.
Despite reservations shown by
several growers' organizations,
experts are of the opinion that
increase in the procurement has
benefited the growers by increasing
the returns on their produce.
However, in light of the prevailing
situation, private traders are buying
wheat at rates much higher than
those set by the government.
Flourmills are finding it difficult to
buy wheat from open markets
immediately after harvesting
season. Field evidence suggests that
bigger growers are also retaining
(read: hoarding) their produce in the
criminal hope of better prices in the
future. The situation is an aberration
to normal market dynamics and it is
evidence that the government's
efforts and its policy on wheat are
not effective. The world wheat
situation has negligible bearing, if
any.
This change, where open market
wheat prices do not correspond to
the arrival of new harvests, has been
witnessed since 2007.
The government picks up 30 percent
of the country's total marketable
wheat (that is, 50 percent of total
crop as per APCOMS estimate). For
2008-2009 this comes to Rs. 102
billion at a fixed purchase price of
Rs. 15,630 per MT. Until May 20,
2008, total credit received by private
traders from the banking system for
wheat purchases in only Rs. 210
million.
Food Departments of two provinces
(Sindh and Punjab) complain of
hoarding of wheat by big farmers
and traders who, according to them,
until a few years back, could not
retain big quantities of wheat even
for a couple of months. This shift in
the market situation points to the
fact that new or non-traditional
players have entered wheat market
with huge funds at their disposal
which they can park for a much
longer time, for larger gains. While
it is quite difficult to estimate actual
amounts belonging to local
investors which have left Pakistan
bourses since February 2008, it is a
substantive amount (KSE 100 has
lost more than 3000 points since
mid- April). With no substantive
increases in the call and time
accounts of our banking sector, it is
quite plausible that this money has
found better avenues and high
returns in commodities sector (of
which wheat is the biggest). Wheat,
with its highly inelastic demand
makes it a very suitable target for
highest gains in the shortest time
period, especially when the
structural constraint of the wheat
crop size, which is just enough to
fulfill the national demands, lacks
any cushion to ward off speculative
trading in wheat.
The bottomline: regulatory bodies
must shape up and step up.
Commodity trading has a very real,
direct human element and
questionable business practices
must be curbed to avoid myopic
monetary gains at the cost of mass-
scale manipulation and suffering of
who it all boils down to: real people.
about the writer
Ahsan Ali Mangi is
currently Director
Planning (Education)
at Earthquake
Reconstruction and
Rehabilitation
Authority (ERRA) and
former Director Food,
Sindh. His research interests include
causes of inequality between and within
nations and its impact on human well-
being and the political economy of Food.
He holds a Bachelors in Electrical
Engineering and a Masters in
International Development from the UK.
may-june 2008 23
csr toolkit

the structure of a cross subsidy model:

making food aid a reality for corporations
by salman abedin
for tbl

First of all, let's settle one

point about this model: Even
though many companies may
be attracted to the idea, it DO
NAT N
TIO
would remain within the BO ION
X
NA
DO BOX

realm of corporate
philanthropy and not CSR for
companies that are not in the
food business per se.

Brass Tacks
What is the Product?
It's an almost ready-to-eat meal that
can sustain a large number of the
population.
It comes in a box, so it can be easily
transported over long distances.
It is culturally sensitive so it does
not smell of "western imperialism" -
a common problem when food aid
is distributed.
Of course, it must be nutritionally
and calorically-sound, and verified
to be so for its intended
'consumers'.
Pricing?
In terms of whether it should be
free or it should be subsidized, I
tend to lean on the side of subsidy,
unless there is such a wide-scale
famine that emergency measures
are needed.
However, the pricing needs to be
realistic keeping in view that the
poorest of the poor are often
working in subsistence situations
where they may actually only have
barter options available to them.
Distribution
There are two target areas for this
product:
Those who are living in extremely
far-flung areas, engaged in some
form of subsistence agriculture,
exposed to weather shocks and are
thus food insecure.
Those living in urban slums whose
children may be malnourished due
to poverty or neglect.
Marketing
A franchise system needs to be
developed for 'kiryana'/village
stores or a new brand of store needs
to be created in order to distribute
the product. This may be tied into a
system of ration cards or lists that
have the backing of grass roots
organizations. Frankly, this system
of distribution at the last mile will
make or break this model.
The Cross Subsidy Model
More affluent consumers, for
instance those who are dining out
are asked to either donate an
amount via collection boxes or they
are charged an amount on their
bills directly through a foundation
to which restaurants are signed up.
These amounts are used as a
catalyst fund to create involvement
of the affluent classes in the model.
The money is then used to cross-
subsidize the boxed meal.
Additional Benefit for The
Food Organisations
Whoever develops this product will
find a ready market in international
food NGOs who are always looking
at cost-effective and easy-to-execute
products for international food
crises.
Praise be to Allah Who feeds us,
and Whose blessings we seek in our
prayers when we reach out to those
in need.
Food aid by United States Agency for
International Development (USAID) being
sold in the open market. We don't want this
to happen to our efforts.
about the writer
Salman Abedin is currently Executive
Director at Contract Advertising. He
welcomes input and discussion on the
model briefly inserted for TBL
readership and can be reached at
salman.abedin@gmail.com.

24 www.triplebottomline.com.pk
 food & beverage report

the role of the food & beverage sector in

expanding economic opportunity
written by
marc pfitzer and ramya krishnaswamy

This report by Harvard University John telephone interviews with 19 experts

Kennedy School's CSR Initiative and representing large multinational or
FSG Social Impact Advisors reveals that national corporations, and carried out a
the food & beverage industry plays a review of relevant reports, studies, and
unique role in expanding economic articles from a range of sources.
opportunity because of its universality to
human life and health. The industry The report provides an overview of the
operates at multiple levels of society business case for engagement in
where billions of people grow, expanding economic opportunity in
transform, and sell food, particularly in developing countries. It focuses on the
developing countries where agriculture motivation for intervention at global or
dominates all other economic sectors. local levels, and outlines key lessons for
the industry in engaging in expanding
Harvard University and FSG conducted economic opportunity.

reprinted with the permission of Marc Pfitzer and Ramya Krishnaswamy, FSG and KSG may-june 2008 25
 The Advantage of Large
Firms
By tackling specific barriers in a few
locations around the world, large
companies are demonstrating that
progress can be made: people can
turn their work into incremental
gains in income and improved
standards of living. Unsurprisingly,
companies' interventions reflect
their own business models and span
agricultural production of raw
materials, food processing, and
distribution and marketing
activities. By changing the
conditions in this "field to mouth"
value chain, large companies help
provide stability and opportunity to
thousands of people.
Such changes target the critical pre-
conditions to economic opportunity.
They create inclusive business
models with emphasis on global or
local markets, build the human and
physical capital of the poor to
participate effectively in food &
beverage value chains, and work to
overcome the adverse institutional
and policy factors, among others,
that prevent food & beverage value
chains from fulfilling their promise
of value distribution.
Expanding Economic
Opportunity
The role of large firms and of their
partners in expanding economic
opportunity can take a variety of
forms. Whether the long-term vision
is about developing local markets or
global supply chains, the different
scenarios all have one thing in
common: they focus on the ability of
poor communities to create and
capture more of the value from their
labour.
Business Case for
Engagement - The Need
for Sustainable Food &
Beverage Production
Major firms in the industry are
concerned about maintaining access
to quality foodstuffs despite
potential - often man-made -
disruptions to their supply chains.
These include population growth
26 www.triplebottomline.com.pk
encroaching on agricultural lands,
increasing water scarcity and
pollution, climate change resulting
in increased frequency and severity
of droughts and floods, and the
spread of infectious diseases
affecting plants, pollinating insects,
and human beings. In the context of
degrading environments, the poor
are particularly affected as they
possess fewer resources with which
to react or adapt to changing
conditions. Global consumers, in
turn, are increasingly willing to pay
premiums for safe, organic, and
sustainable products that address
their health concerns, as well as
their interests in preserving the
environment and fighting poverty.
In this equation, lies the opportunity
for large companies to anticipate the
needs of consumers, improve lives,
and mitigate the environmental
footprint of their industry.
Improving Global
Supply Chains
Food & beverage companies are
naturally turning their attention to
the state of agricultural supply
chains, particularly around crops in
high demand internationally,
originating from poorer countries,
based on highly fragmented
production, with farmers struggling
to keep up with rising standards of
production in terms of both farming
practices and product quality. For
example, crops such as premium
coffee that can be grown under
forest cover rather than through
slash-and-burn practices, and new,
biodiversity-friendly native crops
developed as better alternatives to
existing raw materials. Such
initiatives empower farming
communities to raise production
standards while offering different
levels of guarantee on product
uptake. They allow participating
companies to count on access to
highly traceable food materials at
needed quality, quantity, and price
levels, and to be sure that they are
not associated with environmental
degradation.
Meeting Demand for
Sustainable Products
Trading companies positioned
reprinted with the permission of Marc Pfitzer and Ramya Krishnaswamy, FSG and KSG
between growers and food
manufacturers are also promoting
sustainable agricultural practices.
One incentive is to avoid
disintermediation by global
companies creating direct linkages
with the poor in order to offer a
"responsible" value proposition to
consumers. ECOM, one such
trading company, is helping
hundreds of coffee producers in
Honduras achieve certification for
responsible coffee production and
sourcing, resulting in both economic
gains and wider quality of life
improvements in grower
communities.
In some cases, companies are taking
the responsible or sustainable value
proposition all the way to
consumers to achieve a "values
premium" that goes beyond quality
or safety guarantees. This includes
additional efforts by lead companies
and partners to gain exclusive
access to crops, and to brand
products on the basis of their
benefits to communities and to
nature.
Developing Local Food
& Beverage Markets
While global companies might first
focus on export-based
opportunities, a number of
companies also emphasize efforts to
build local food & beverage value
chain and are addressing immediate
or anticipated constraints to
growing domestic versions of their
business models. Such initiatives
may focus upstream on supply
conditions and food processing or
include distribution and consumer
marketing. For example, SABMiller
and Cargill are focused upstream
with their initiative in Rajasthan in
India to improve barley production
and satisfy domestic brewing needs.
A key incentive is to raise local
standards sufficiently to lower the
companies' dependence on
international supplies of quality
barley for malt production. The
programme is currently working in
150 villages spread through three
districts of Rajasthan.
Business Strategies for The report offers five ingredients
which can be considered:
Expanding Economic
Opportunity 1. The "Must" of Collaboration
Collaborative action across sectors is The need for parallel
often necessary, as no company or interventions to design and
partner organization possesses all grow businesses, build
the capabilities need to overcome all communities' assets and
barriers. capabilities, and improve
enabling environments suggests
The research found different levels that collaborative approaches
of interventions, gien in the table are in fact optimal.
below, which in turn help to
overcome a variety of barriers to 2. Patient Capital.
expanding economic opportunity The ability of governments and
along food & beverage value chains. foundations to provide patient
These barriers include the poor's capital (not seeking competitive
lack of appropriate skills, market returns in the short term
technologies, and finance, as well as or at all), directly or as
their inexperience in designing and providers of credit to local
growing businesses, and lack of businesses, plays a central role
awareness of the economic and in a number of cases. This
business opportunities. funding allows for the
progressive scale-up of business
From this perspective, a number of models which may only yield
patterns emerge: First, initiatives are competitive returns to
truly collaborative: they all mobilize participating companies in the
cross-sector partners, particularly to long term. Because the food &
address community development beverage sector can address
needs. Second, interventions for both economic development
creating economic opportunity do and environmental agendas,
not come as single thrusts: all their initiatives can tap into a
initiatives employ at least two of range of budgets among public
these interventions simultaneously. and private donors.
Indeed, creating businesses requires
empowered people and supportive 3. Planning for Sustainability
environments. First, economic gains can be
made more sustainable. Second,
because the food & beverage
Key Lessons sector is so deeply connected to
A fundamental question remains, the state of natural resources,
however, when considering the vast expanding economic
number of people living in poverty opportunity goes hand in hand
and the rate at which humanity is with environmental
consuming natural resources: how sustainability. These two
quickly can success stories be scaled agendas are increasingly
up across regions and industries? interrelated in terms of scaling
up food production and
achieving good "values" prices
in international markets.
4. The Choice Between Global
and Local Approaches
There are two distinct ways of
creating new value for poor
communities. The first is to raise
the quantity and quality of food
products for sale in markets
with high purchasing power.
The second is to build local
value chains within rural and
low-income communities
themselves. Especially if
combined with a unique
branding strategy around "pro-
poor" produce, significant
premiums can be paid via the
first strategy to poor producers,
which can invest the additional
income in business growth and
diversification. When local
models are developed, more
jobs might be supported, but
only in the context of local
prices and wages which leaves
little room for income
redistribution along the value
chain.
5. Designing for Scale and
Replication.
It is essential that initiatives
should reach vast numbers of
people with their asset-and
capacity-building interventions.
In replication lies a vital
ingredient to create economic
opportunity on a vast scale, and
one that should resonate with
large companies' traditional
approaches to testing what
works in one market and then
sharing the learning on a global
scale.

Written by Pfitzer, Marc and Ramya Krishnaswamy, 2007.

The Role of the Food & Beverage Sector in Expanding
Economic Opportunity. Corporate Social Responsibility
Initiative Report No. 20.Cambridge, MA: Kennedy School of
Government,Harvard University.

Four key strategies companies can use to expand economic opportunity.

reprinted with the permission of Marc Pfitzer and Ramya Krishnaswamy, FSG and KSG may-june 2008 27
corporate volunteerism
a diary of a food volunteer
M
ay 14, 2000. A bus load of
volunteers and myself
head to the Thar desert.
We set up a relief collection point in
Indus Valley School, and plan to
participate in the distribution of the
relief goods. Our leaders in this
campaign are the Raasta
Development Consultants' people.
We are met by the staff of the
Thardeep Rural Development
programme and we attend the food
distribution. We see some dead
animals on the way.
On our return, we set up a
multimedia kiosk at the school and
have an expanded collection point
in operation. We make it a point to
accept no cash, only oil tins and
'aata' (wheat flour). The people of
Karachi are galvanized through this
word of mouth campaign and the
volunteers at Raasta are
encouraged to expand the scope of
their work to other areas of Sindh
and Baluchistan as well.
May 28, 2000. I am on the way to
Dadu district for another round of
food distribution. At this point I
start to wonder about the nature of
the 'famine' since there has been a
bumper harvest of wheat in that
area. We return to Karachi with a
feeling that food aid can be a
dangerous business, because at the
end of the day a bag of wheat is a
commodity.
June 17, 2000. Onwards to District
Naushki located at the edge of
Baluchistan. We arrive from
Peshawar and set up a camp at a
government rest house. We start
distribution the next day in the dry
heat of the desert, and it is here that
we actually meet the homeless
people living in extreme poverty.
The driver of one of the pickups
that we are using reminds me that
God is the provider for all, and our
efforts are mostly in vain. He says
to me: "How many meals have you
brought? For how long will these
meals last?" This makes me realize
that it is the effort that matters and
28 www.triplebottomline.com.pk
by salman abedin
for tbl
activity in food distribution is
cathartic.
In Naushki, I remember one of the
old women in a makeshift camp
next to the main road saying that
she was glad for the famine,
because this was the first time she
had left her village. Any
developmental theory is thrown
out of the window with such
comments!
Haleem in plastic reusable containers.
Lessons Learnt from this Exercise:
meals were cooked. The CFC team
It is useless doing this alone
has done well to set up a
and collaboration is more
distribution point at their clinic in
effective. The success of the
Machar colony. We quickly get
exercise hinged on the linkages
through the meals, and don't have
that Raasta had with other
to deploy the plain clothes police
NGOs in each of the areas that
men on duty.
we operated.
A very satisfying day indeed.
It is better to work with the
government so that security is January 12, 2008. We have to decide
provided at each place. whether the situation will allow us
to operate in the tension-filled areas
People would rather give goods
this year, but the clouds clear and
than cash.
we proceed with the distribution of
our projected number of meals
Fast Forward to 2006 amid chaos.
I have fond memories of the times
There is chaos because the coupons
we spent with the Raasta crew in
had been distributed a month ago,
2000, and want to start something
and the chaos in the city results in
on a regular basis. The plan is to
delays in the distribution. We take
start some food distribution
assistance from the uniformed
exercise with the meat from
police for this distribution -
Qurbani at Eid-ul-Azha. We
something that we wanted to avoid
distribute raw meat as a tradition,
at all costs, but the situation does
but it is better if we provide cooked
not allow us to do so.
meat to the poor so they can have a
decent meal. Lessons Learnt from this Exercise:
By some coincidence of fate, I get in Regular charity is the best
touch with the Concern for charity.
Children (CFC) NGO, which serves
the Machar colony in Karachi. We Food aid needs organization,
agree to work with them to provide and primarily it needs security.
meals to the shrimp peelers, who In a nation where crime is
are landless immigrants of common, you need to protect
Bangladeshi descent. They work in yourself and your volunteers
appalling conditions and have no first.
recourse to law since they are not
There needs to be clear
citizens of Pakistan.
command systems in aid
January 7, 2007. 9:00 am. The exercises and volunteers cannot
haleem is almost ready. It's time to be allowed to make whimsical
leave the kitchen where the 700 odd decisions.
csr talk

etsko
schuitema:
intent - care &
growth
by ramla akhtar
for tbl

At the core of the crises humanity is

facing is the spectacular failure of
controls and policies - be that in food
management, financial sectors,
international relations, governance
systems, or even inter-personal
relationships.
In a world that is becoming
fragmented and franchised, more
controls are impossible to
implement. Yet there is a need of
collective decision-making by
people: an engaged citizenry.
Etsko Schuitema, a transformation
consultant, is the managing member
of Schuitema - a consultancy about
business transformation through
business growth, based in South
Africa and Pakistan. In his work,
Etsko has explored Intent as the core
of being human, and developed the
Care & Growth Model of Leadership
- derived from his research in the
African mining sector.
1. Why do people matter?
People are the bottom line. An organization is built to
serve its chosen customers by adding value; as long as it
genuinely does that, it survives.
Organizational leaders care for and grow the employees.
If the organization does not concern itself with the benefit
of people, it will not prosper as people grow wary of the
relationship.
2. Yet, "people" are not the priority on
most organizations' plans.
That happens. There are two opposite models of
leadership: The Pharaoh Model, and The Moses Model.
In the first model, the leader is the end, and people are
the means. The society's efforts are harnessed to glorify
the leader and build grand structures of no value to the
society. Pharaohs enslaved people to build pyramids.
The way of Moses is the complete opposite. People are
the end, and the leader is the means to serve their best
interest - which of course could sometimes require hard
but fair measures by the leader. A true leader sacrifices to
achieve the society's fair aspirations.

30 www.triplebottomline.com.pk
The first kind of leadership does not
thrive because it is not based on
contribution to the society. It takes,
it does not give. Only that which is
generous, survives.
3. But all organizations
serve customers. Where
is the difference?
The issue is of where attention is
given first. Is customer the primary
concern, or profit? Profit follows
happy customers. It's not the other
way round.
Then, who is the actual customer? In
a school, for instance, it's the
students - not the parents, the
management, or the society. The
purpose of a school is to serve the
students' best interest. If that fails,
everything else fails.
4. What is the essence
of your Care & Growth
Model of Organizational
Leadership?
That an employer is a leader by
virtue of empowering the people -
by caring for and growing them; not
by virtue of being able to 'buy
labour'.
Transactions occur between two
equals.
The legitimate power structure is
only where the leader provides
unconditional care and fair and
honest growth. The result of it is
that employees are loyal to the
leader.
Care refers to the 'soft' element: such
as listening, empathy, genuine
concern in the welfare of the
employee, making provisions.
Growth is the "hard" or control
element: it means fairness and
honesty, establishing accountability.
Together, they serve the best interest
of the people.
5. How does empower-
ment work?
People and things are not defined
by boundaries, but by transcending
their boundaries.
True leaders concern themselves
with removing limitations to the
realization of people's potential.
This is achieved by giving
employees the means and the ability
to perform their jobs, without which
they are not truly accountable. Over
time, the leader removes controls
and creates conditions for growth,
much like a gardener does not
"grow" the plants, but creates the
right environment. Ultimately,
leadership is about gradually
surrendering control.
But for this, the leader needs to have
the big picture in mind.
6. What is the surrender
of control?
Organizations are like living
organisms, composed of structures
and systems. First, this means the
flow of work and addition of value
from input to output. Secondly, it
entails the policies and procedures
that govern the flow.
Living organisms change, so must
organizations. The process of
change is a gentle, incremental
suspension of control. In little bites,
the structure flattens over time. And
the system shortens as it shifts from
procedure-driven to policy-driven.
7. How does intent
function? How does it
transform the organiza-
tion's relationship with
the society?
Intent is a process of maturation -
it's a shift of attention from "I am
here to get" to "I get to give/ I give
to get" to finally "I am here to give."
From malevolent intent to
benevolent.
The first stage of this maturation
journey is an infantile attention; it's
selfish and based on own needs. Its
primary concern is greed.
The second is the adolescent
concern with fear; which leads to
hostility and aggression. Its
organizational equivalent is a focus
on competitiveness. In later
adolescence there is a shift towards
bargaining: service is conditional on
getting back.
The third intention is mature.
Organizations at this stage are
concerned with generosity, which
means good (corporate) citizenship.
The focus is on leaving something to
the community and social
engagement.
This journey of maturation is not
necessarily bound by specific time,
but it occurs over these stages.
Intent defines the framework and
seeps down to the operational level.
It's not enough to have benevolent
intent; the best organization
measures itself by it.
8. How do organizations
ensure sustainability?
Sustainability by extending more
controls is not achievable - it should
not even be the goal. Death is the
most certain of all things, and we all
die alone. Showing courage in the
face of death is the measure of one's
preparedness. Organizations don't
die like people do, by age, but they
do if they don't concern themselves
with generosity and ultimately
courage.
What courage means is that there
comes a stage where there are issues
larger than the collective - the
interests of society. Groups mean
the individual participant has to
surrender some value at some point
to the collective. Courage is to walk
the path alone. To look beyond one's
interest, and even the demands of
the society. To do the right and the
appropriate, even if no one
approves.
about the writer
Ramla Akhtar is a social designer, futurist,
writer. She enjoys creating intra-
disciplinary, technology-neutral designs for
the realization of innate human potential
through her consultancy, "NEXT>".
may-june 2008 31
opportunity fortified
malnutrition in pakistan:
the hidden hunger
by muhammad aslam & ronald inayat
for tbl
P
akistan has an alarmingly high level of
malnutrition; 24 percent of the population is
undernourished. The most recent estimates by
the United Nations Food and Agriculture Organization
(FAO) state that 37.5 million people in Pakistan are not
receiving proper nourishment. The issue is complex
and widespread, with deficiencies ranging from
protein to iodine, along with other health problems
due to insufficient intake of these essential nutrients.
But, what are the implications of these nutrient
deficiencies for economic growth and development?
Using household level estimates, the graph below
shows that the macroeconomic costs are considerable
in terms of year-in, year-out gross domestic product
(GDP) foregone. For example, just three types of
malnutrition are responsible for 3-4 percent of GDP
loss in Pakistan in any given year, according to the
United Nations Standing Committee on Nutrition
(SCN) fifth report on the world nutrition situation.
Malnutrition in Pakistan is usually associated with
poverty and the main causative factors include low
consumption of food and foods with low nutritional
value. The most common and significant nutrient
deficiencies are given below:
Iodine Deficiency
This is a major public health problem in Pakistan and
is a threat to the social and economic development of
the country. The main factor responsible for iodine
deficiency is a low dietary supply of iodine. When
iodine requirements are not met, thyroid hormone
Percentage loss in GDP from reduced adult productivity due to malnutrition
32 www.triplebottomline.com.pk
synthesis is impaired, resulting in hypothyroidism and
a series of functional and developmental abnormalities,
known as “Iodine Deficiency Disorders” (IDD). Goiter
is the most visible manifestation of IDD. Endemic
goiter results from increased thyroid stimulation by
thyroid stimulating hormone (TSH) to maximize the
utilization of available iodine and thus represents
maladaption to iodine deficiency. However, the most
damaging disorders induced by iodine deficiency are
irreversible mental retardation and cretinism. If iodine
deficiency occurs during the most critical period of
brain development (from the fetal stage up to the third
month after birth), the resulting thyroid failure will
lead to irreversible alterations in brain function. While
cretinism is the most extreme manifestation, of
considerably greater significance are the more subtle
degrees of mental impairment leading to poor school
performance, reduced intellectual ability and impaired
work capacity. The recommended strategy for IDD
control is based on correcting the deficiency by
increasing iodine intake through supplementation or
food fortification.
A WHO survey (1993-1994) on iodine status
worldwide lists Pakistan as having "severe iodine
deficiency" with 135 million people having insufficient
iodine intake. Unfortunately, iodized salt consumption
in Pakistan is at only 17 percent, according to the
National Nutrition Survey, 2001-2002.
Iron Deficiency
It is well-documented that iron deficiency leads to

impaired cognitive development and poor performance
in school. Iron deficiency is one of the most prevalent
nutritional disorders and has a large impact on
economic productivity. Recent estimates of income
foregone as a percentage of GDP are 5.2 percent for
Pakistan, according to the UN report on world nutrition
situation. This depends on the extent of deficiency and
the returns to educational attainment in the labour
market.
Protein-Energy Malnutrition
This is also very common in Pakistan and leads to a
condition called kwashiorkor. Lack of protein can cause
growth failure, loss of muscle mass, decreased
immunity, and weakening of the heart and respiratory
system. A survey by the World Health Organization
(WHO) shows that the number of underweight pre-
school children (0-5 years of age) in Pakistan is 40
percent. Such children often remain weak and
undernourished throughout life.
Role of The Food Industry
The malnutrition issue in Pakistan is a major CSR
opportunity for food companies since the possible
solution lies in widespread availability of essential
nutrients in low cost food products. Food companies
can utilize their existing resource and development
capabilities to develop low-to-moderate-cost nutritional
foods. Using a bit of ingenuity, this can be achieved
with low additional costs to the company and a long-
term product investment with guaranteed gains.
The National Foods Limited Example
National Foods Limited (NFL) is a company which
leverages triple bottom line (TBL) principles to create a
successful business model.
A pioneer in the Pakistani food industry, ISO:9001 &
HACCP certified NFL has been providing consumers
with pure food products since 1970 and is the market
leader in branded refined salt, with about a 90 percent
share. In response to the iodine deficiency issue, NFL
launched iodized salt in 1991. Then several years were
spent in collaboration with UNICEF to promote the use
of iodized salt across Pakistan. Result is that today half
of the sales volume of NFL's refined salt is taken up by
the iodized variant.
NFL has also conducted a series of seminars on
nutrition at various educational institutions across
Pakistan. Future plans include in-house development of
low-cost nutritional meal solutions and improvement in
the supply of raw ingredients at the crop-growing stage.
With over 250 products in its portfolio and sales in 35
countries, NFL is dedicated to improving the well-being
of society through continuous development of
innovative food products.
Reference
United Nations Standing Committee on Nutrition (SCN). Fifth Report on the World Nutrition
Situation: Nutrition for Improved Development Outcomes, March 2004.
<http://www.unsystem.org/scn/publications/AnnualMeeting/SCN31/SCN5Report.pdf>
about the writers
Dr. Muhammad Aslam is currently Technology & Industrial
Consultant at National Foods Limited. He is a Fellow of
several scientific societies. His career in research spans more
than 50 years and he has 34 research papers and 30 patents
to his credit. He holds a B.E. from California University, a
B.Sc. in Chemistry and Physics and an M.Sc. in Organic
Chemistry from Bombay University, and a Diploma in Plastics
Technology from West Coast University.
Ronald Inayat is currently a PR practitioner at Asiatic Public
Relations. He has a Masters degree in Microbiology and spent
the last several years handling Brand PR and technical
regulatory affairs at Procter & Gamble Pakistan.
may-june 2008 33
common sense

common sense approaches to a

'food secure' pakistan
by majid sheikh
for tbl

An interesting advertisement
appeared in the national press in
mid-May 2008, seeking tenders for
food supply in various prisons in
Sindh. The benchmark was three
meals of 150 grams wheat flour
each on an average. Immediately
one thought of the wheat crisis, as
well as the food crisis, and the
mind began to calculate.

Extrapolating Prison
Nutritional Standards
By prison regulation standards, an
adult male consumes 450 grams of
wheat flour a day, as well as other
accompanying foods. A research
carried out by a Lahore-based NGO
estimates that the average Pakistani
household consumes 250 grams per
person per day, which teeters
precariously on the borders of mere
subsistence.

By the World Health Organization's

standards, on the other hand, the
nutritional needs justify a
minimum of 350 grams plus per
person to be consumed daily. Even

34 www.triplebottomline.com.pk
if we estimate by the lowest prison-
required figure of 250 grams per
person, Pakistan would need 91.25
kilograms of wheat per person
every year, or 15.06 million tonnes
of the commodity. By prison
regulation standards, presuming
women and children eat less, we
would need at least 27.11 million
tonnes. The use of this simple
calculation shows that Pakistan, in
the year 2008, is short of wheat by
almost 3.5 million tonnes, the
official version not withstanding.
Efficiency or Starvation
But to cut a long story short, food
will consume an increasingly
greater portion of a Pakistani
family's budget in the years to come.
This is a fact that propels one to look
into the future. What should
Pakistan do? We are an endowed
land, with good soil, enough water
if we use it sensibly, human skills to
produce any food we need, and a
population whose size ensures that
the demand for such produce
interests farmers to grow more food.
If we assume that we have no new
lands to plough, then there is an
immediate need to increase the yield
per acre. For the same inputs, a
quantum jump is the 'one and only'
solution.
A 'Quality Green Revolution' is
needed. But as simple as this
assertion might seem, in order to
actually achieve such a state calls for
immense effort, and will-power. We
need to examine our agricultural
practices and stop deluding
ourselves into believing that we are
efficient.
United Nations' figures rate us as
among the least efficient. Even if we
can match the result that the Indian
Punjab manages - with the same
soil, people, water, etc.,- we are
destined to improve our lot. If we
do not, we will starve. It is as simple
as that.
The Solution
Quadrangle
The solution lies in four mutually-
aimed directions: to learn better
agricultural practices; to tackle the
prices of agricultural inputs; to put
into place a first rate food
distribution system; and to work
exceptionally creatively on ensuring
that the supply of water reaches all
farmers, and on time.
“ A 'Quality Green
Revolution' is
needed. But as
simple as this
assertion might
seem, in order to
actually achieve such
a state calls for
immense effort,
and will-power
Quad Direction 1: Agri-
” No Solution Without our
practice Improvement
There is no doubt that the average
Pakistani farmer is keen to adopt
any new methodologies that
increase his, or as is often the case,
her output per acre. But with the
crumbling agriculture extension
services of the provincial
governments, practically no
assistance, guidance, or even advice
is available. Such assistance played
a major role in the 1960s when the
so-called 'green revolution'
unfolded in Pakistan.
It would not be asking for too much
if with better agricultural practices,
outputs could be increased by at
least 50 percent assuming that the
acreage under cultivation remains
the same.
By merely ensuring proper
weeding, it is a known fact that
outputs rise dramatically. But then
the changing social ethos has
prevented women from undertaking
this task. In Punjab, if one was to
observe the fields of different tribes
such as the 'Meo' family to that of a
'Jat', both standing next to one
another, it is a known fact that the
Meo family's output is almost
50 percent more than the 'Jat'
family's. The reason is simple. Meo
women work hard all year round to
weed the fields and ensure that the
crop makes full use of the nutrients
in the soil. They are just simply
better farmers.
To further explain this point, the
reader is welcome to visit the
Pakistan-India border fence and
observe the wheat crop on both
sides of the border. The average
Pakistani yield is 22.475 maunds of
wheat per acre, according to a
survey of Pakistan in 2005, while the
Indian official average wheat yield
is 41.235 maunds per acre, as stated
in the Indian Institute of Agriculture
Sciences publication (June, 2007).
True Centres of
Learning
The Indian agricultural scientist has
to spend a number of years in the
field, living and working with
farmers, teaching him skills and
understanding his problems. In
Pakistan, a Ph.D. in agriculture
normally means a cushy, ivory
tower job with no fieldwork. This
assertion may be a bit off the mark,
but broadly this is the state of
Pakistani agricultural sciences.
But there is still hope. Take, for
example, the Centre for Excellence
in Molecular Sciences at the Punjab
University. This organization has
the ability to teach and set up
centres to produce virus-free plants
using tissue culture technology, in
every district of Punjab. Almost
twenty years ago, the Indians
adopted this route with
considerable assistance for Israel. To
any pragmatist it makes sense for
Pakistan to seek the assistance of
these two countries, hostile as they
may-june 2008 35
 may seem to our national security.
But then the age of such
dispensation is over, hopefully -
forever, and the poor of this country
will be better fed if we just 'stooped
to learn' from their experiences.
Passively Awaiting the
Green Revolution?
Like the 'broiler' revolution in
chicken meat, Pakistan awaits the
greenhouse revolution. The
12,000 tonnes to take care of
everyone for three months. A
standard silo to store 25,000 tonnes
will mean food for everyone for half
the year. This can be achieved
easily.
The fact is that a similar system
already exists and the provincial
governments claim to run it, but
with very corrupt officials.
excellent canal system. Besides
these, there is a need for more and
more reservoirs. Consider, for
example, the River Ravi, dry that it
is. Its 'bunds' on both sides could
store water, and this would make
the underground water level rise.
All along rivers and besides them,
reservoirs are needed. This is not a
high-technology undertaking, and it
will also not run into problems with
provincial water disputes. Surely
even remote parts of Balouchistan

possibilities in this learning game
are endless. Greenhouses, for
instance, mean that even desert-like
lands can produce ten times as
much as our current per plant
produce. But if we stick to simple
matters like better outputs from the
existing inputs with better
agricultural practices, Pakistan can
easily be a 'food secure' country.
Quad Direction 2:
Agri-Inputs
The second action needed is to
ensure that all the inputs like seeds,
water, transportation and fertilisers
are supplied at the correct price and
on time. For this the government
must take considerable
responsibility and not leave
everything to the open market.
It is the only real onus, and the
'social responsibility' of the
government to work on ways,
without resorting to heavy
subsidies, to supply farmers with
quality inputs. This is critical to the
future of Pakistani agriculture, for
only with the correct mix of
measures will adequate food be
available to its people.
Quad Direction 3:
Distribution!
The third, and probably the most
important factor, is to tackle, on a
war footing, the distribution of
agricultural produce. This is where
the public sector must rise again. If
one modern storage silo caters for a
population of 500,000 persons, this
means that each storage silo will
need only 125 tonnes to feed the
entire population every day, or
“
can have reservoirs using storm
Like the 'broiler'
water and other such flows.
revolution in chicken
All these are simple steps - but
meat, Pakistan require robust governance. With
awaits the green- better agricultural practices,
agriculture technologies, better
house revolution. storage and distribution of crops,
better water supply and cheaper,
The possibilities in
reliable and timely inputs, Pakistan
this learning game can indeed has full potential to be a
are endless 'food secure' country.
”
We know from the immensely
important research of the Nobel
about the writer
Majid Sheikh has been working as a
Prize winner, Dr. A. Sen, that journalist since 1971, in major
famines have always been the result newspapers in Pakistan and England.
of bad distribution. So it makes He is also a management consultant
and Marketing Research specialist.
sense to tackle this problem. Supply
His first book 'Lahore: Tales Without
has to be graduated and on a daily
End' is a collection of his pieces that
basis, its selling outlets contained
are published in the Daily Dawn.
within a given area, and its selling
price has to be controlled through
the retail system.
That is why rationing seems to be
the preferred option. But when the
entire country needs just 330 storage
facilities, it makes sense for the
private sector to invest in these silos,
as well as the milling facilities.
Monitoring outflows from 330
facilities is possible, and this will
definitely prevent any famine
coming to this country. There is just
no reason Pakistan should have
famine-like conditions, save for bad
governance.
Quad Direction 4: Water,
Water Everywhere…
Lastly, there is the problem of the
supply of water. Pakistan has an

36 www.triplebottomline.com.pk

csr and low-income housing:
a plausible framework
Currently, Pakistan has an overall
housing backlog exceeding 6
million units with an annual
addition of 300,000 units - based
upon conservative estimates from
the Population Census of 1998 and
the National Housing Policy of
2001. Roughly 30-40 percent of the
demand is addressed by
mainstream developers who cater
to the high-end market. The
remaining units fall under the
category of the low-income
segment. The government has
made repeated attempts to address
this segment through various
initiatives - seldom succeeding.
The current low income housing
deficit within Pakistan is 3 million
units with an addition of 150,000
units per annum.
In addition to these alarming rates,
within the urban context, there is a
disturbing pattern. Of those that do
own homes, there is a clear pattern
of constructing additional rooms as
opposed to constructing new
homes. This leads to an increase in
by jawad aslam
for tbl
the density of homes, thus further
exacerbating the housing problem.
With most homes having been
constructed over twenty years ago
(58 percent), over 50 percent of the
population under the age of 25 ,
and no solutions in sight, demand
in the lower income segments is
expected to explode in the next
decade.
Context
In order to truly comprehend this
problem, one must put him/
herself in the shoes (or bare-soles)
of the average citizen of Pakistan.
An individual is earning between
US$ 135-185/month (working in
the public/private sector or self-
employed) and is responsible for
maintaining his/her nuclear family
as well as members of the extended
family. The average citizen lives
with a level of uncertainty on a
daily basis, and is constantly faced
with a multitude of potential issues
to handle relating to running of
his/her household and providing
for the family.
social partnership toolkit
For those living in rental units (30
percent of the population), their
average monthly income is US$ 165
and their monthly saving, after all
expenses relating to rent, food,
utilities, transportation and
miscellaneous are deducted, under
ideal circumstances, is US$ 15.
With the average person saving
US$ 15/month and the average 80
square yard plot costing US$ 7,000,
it would take nearly forty years
before one could afford such a plot.
The result, is the current housing
crisis Pakistan is faced with.
Policy, Poverty and
Housing
Historically, low-cost housing in
Pakistan has either been the realm
of NGOs, the government, or the
informal sector.
Due to the heavy capital
requirements, as well as the level of
skill involved in scaling up in the
may-june 2008 37
 housing sector, NGOs have not
gained much ground.
The government has been very
successful in the actual building of
low-income housing developments,
but has failed in all subsequent
aspects such as effectively targeting
the BOP (bottom of the income
pyramid) and building healthy and
sustainable communities.
Traditionally, government models
have been based on a lottery system
that is generally rigged in favour of
the investor community who then
exploit the BOP through renting
those same units. With those units
intended for homeowners, but
occupied by renters, there is no
ownership within the community.
This inevitably spirals into
becoming another slum where
drugs, prostitution, and crime
thrive.
The informal sector meanwhile is
riddled with problems such as lack
of legal tenure, crime, no master-
planning, and little or no
infrastructure.
With poverty rates nearing
50 percent, and population in the
major urban centers expected to
double in the next fifteen years,
Pakistan is in the midst of a
massive housing deficit.
With housing policies favouring the
elite, the development and supply
of affordable housing presents itself
as both a great challenge and a
greater opportunity.
The Ansaar
Management Company
To meet this challenge, a group of
professionals from various
disciplines have come together to
create the Ansaar Management
Company (AMC). AMC is driven
by a mission to provide high
quality and affordable housing
solutions to the average citizen of
Pakistan. The company targets
households earning US$ 85-300 per
month and specializes in a
38 www.triplebottomline.com.pk
community-based approach to
development. AMC focuses on
nationwide scalability and
sustainability through its integrated
for-profit, low-cost approach.
AMC's initial projects focus on ten
selected cities of Pakistan.
AMC's model, based on a thorough
analysis of the issue, effectively
improves on what the government
has been doing right, and works
towards the institution of systems
within areas that the government
has not paid due attention to. The
following features set the AMC
model apart from others.
All residents must move on site
within 60 days;
All residents must reside on
site for 5 years (they cannot
sell, rent, or leave the
plot/home empty);
Only one plot per family. No
bachelors allowed;
Active community
development is essential for the
first five years, utilizing a
unique system of resident
mobilization requiring
residents to live physically live
on-site;
Various NGOs and
organizations are invited to
establish initiatives in areas of
Typical Informal Scheme
Location Periphery of city
Scheme Layout None. Narrow lanes,
no space for a park and
other public amenities
Plot Sizes 75-125 square yards
Price Rs. 80,000 - 120,000
Legal Housing No
Utilities Electricity
Amenities Minimal
Environmental Very poor - Serious
Conditions sewerage and solid
waste problems
health, education, and
community development;
A financially sustainable model
that offers 70 percent of the
plots at cost, while offering the
remaining in the open market.
Why AMC is a Social
Enterprise
Carved from AMC's on-ground
experience, the table below
indicates how, compared to a
typical informal scheme, AMC
offers a vastly superior product in
terms of utilities, amenities, and
living environment - while
remaining competitive price-wise.
AMC develops roughly 500-2500
residential and 25-125 commercial
plots for sale for a given project and
charges a project management fee
to manage all aspects of the project,
including but not limited to, civil
works, home construction,
marketing and sales and
community development:
Unlike informal developers, AMC
provides all plots in the project
with electricity, a water-supply,
underground sewerage lines and
disposal, as well as roads during
the tenure of the project. Doing so
ensures that residents do not face
the hardships faced in urban slums
and squatter settlements. Since
AMC Project
Periphery of city
Wide lanes, space for parks
and public amenities
100 square yards
Rs. 70,000
Yes
Electricity, water, sanitation
Schools, clinics
High - Strong emphasis on
sewerage and solid waste
management
AMC's approach to housing is
holistic, it also facilitates essential
social and economic services of
education, healthcare, and micro-
credit through a network of NGO
partners to further enhance the
living quality of its residents.
Additionally, AMC arranges
mortgage financing for
standardized one bedroom, two
bedroom and three bedroom
housing units to facilitate clients.
A CSR-Framework for
Low-Income Housing
The unskilled/skilled labour force -
the average citizen - who earns Rs.
3,000-10000/month, is one of the
most neglected segments of society.
The government does not cater to
their needs, nor does the private
sector. The labour class tends to be
a sincere group of people, but dire
circumstances force them to behave
irrationally - to cheat, steal, become
violent, and, in the worst
circumstances, even kill. The only
way to transform the dynamics of
this segment is to minimize the
occurrence of dire circumstances.
As organizations begin to explore
various options to carry out their
commitment to CSR, AMC offers a
financially viable option that
achieves high social and
environmental impact. With a
plethora of textile mills throughout
the country, and a constant struggle
to retain good talent at all levels,
the AMC model is a mutual
solution for the labour force and
the organizations that employ
them.
The AMC proposal consists of the
following principles:
Owners or associations of
industrial units, independently
or jointly-with AMC investors,
purchase raw land in close
proximity to their industrial
estates;
Plots or built-up units be
offered to qualifying
laborers/employees (those that
have demonstrated
commitment to the
organization via pre-
determined metrics) in strict
adherence to the AMC policies
(moving in with the family
within 60 days);
Mortgages are offered to the
residents/employees on a 70:30
debt: equity basis, where the
organization can opt to
subsidize the equity portion or
simply serve as the facilitator
during the entire transaction.
(This method would allow a
labourer to move into a basic
housing unit with as little as
PKR 25,000);
AMC manages the entire
process from land acquisition
to post five year community
management, including
engaging partners (investors,
NGOs, etc) to build schools,
hospitals, community centers,
commercial areas, etc within
the community;
With a thriving community of
3000-10000 members
(depending on the size of the
development), the organization
can now sell the remaining
30 percent of the plots (prime,
as well as commercial) to the
open market, for profit.
Incorporating the key elements
mentioned below, AMC designs
and implements all of housing
projects on socially and ecologically
sound and sustainable principles
that also serve as metrics for
investor/donors:
Affordability;
Simple procedure with rapid
delivery;
Effectively target the poor;
Healthy physical environment;
Legal housing with security of
tenure;
Socio-economic opportunities;
Financial viability;
Sustainability.
Estimated Quantitative
Social Impact
The key to alleviating poverty in
Pakistan is to provide the poor with
assets. If this asset comes in the
form of a house, the value becomes
manifold. AMC provides this
valuable asset.
It not only saves the poor from
continuous rental payments, it also
provides them with collateral as
well as peace of mind, thus
contributing to more productive
work. AMC focuses on selected
indicators for quantifying the social
impact of its projects. These
indicators include:
Creation of assets;
Savings on rental payments;
Value addition by new
employment generation due to
new construction;
Health-related benefits
accruing due to
environmentally friendly
practices.
Based on the above, AMC
anticipates a social return of
US$ 2.36 on each dollar spent by
one household. When annualized,
this number progressively swells to
over US$ 13 million for all
households involved in a standard
project of 2500 units.
about the writer
Jawad Aslam, currently an Acumen
Fund Fellow, has been working in the
low-income housing sector of
Pakistan for the past three years. He
has recently launched AMC, a for-
profit spin-off of the world-renowned
incremental housing model of Khuda
Ki Basti. Jawad was born and raised
in the USA, and currently resides in
Islamabad with his family.
may-june 2008 39
breather

40 www.triplebottomline.com.pk
may-june 2008 41
 management spin
B
usinesses are increasingly
expected to solve social
problems with the efficiency
technically inherent in business
processes. This expectation,
coupled with the downsides of a
short-term, profit maximizing
motive, gave birth to the concept of
Corporate Social Responsibility
(CSR).
CSR has caught the fancy of
business leaders across the world.
In order to live or (show)
responsible citizenry and meet
customer expectations, business
leaders are increasingly adopting a
CSR strategy. Some equate 'charity'
with CSR, some copy or blindly
follow other companies, many want
to genuinely address social issues
but don't know how to. Some go for
42 www.triplebottomline.com.pk
csr for csr
by shadab fariduddin
for tbl
the cut-and-paste approach: cut
from companies that seem to the
public to responsible citizens and
paste for their own.
Any strategy is as good as its
execution. Execution hinges on how
well the idea has diffused into the
operation. Diffusion requires
conscious efforts by management to
put in place systems and skills, and
then make them run. And finally,
measure their effectiveness. Only
then will a CSR programme come
to life - assuming that there is a
strategy at all - which seemingly,
there often isn't.
Presented here is a conceptual
framework for CSR activation in
any company. It should provide an
answer to the vital "how to"
question many organizations face.
The proposed CSR activation
framework has three vital
components: C, S, R - Capacity
Structure, Relevance. Not
necessarily in this order, but it
sounds catchier this way.
C is for Capacity
Does your organization have the
capacity to handle the additional
workload or intellectual input that
comes with CSR implementation?
Organizations perform as good as
the people they have. In other
words, organizational performance
hinges on the knowledge, skills and
motivation of its people. The
bandwidth of people to execute
related tasks must be increased in
order for a CSR strategy to be
implemented. CSR strategies bring
about change and it is a known
management reality that people
resist change. Effective change
management requires capacity
building. Candid communications
between top management and all
employees coupled with a solid
commitment to human resource
development are crucial to strategy
implementation.
So, when contemplating CSR,
organizations must be committed
to the effective capacity building of
their employees. There are two
categories of people organisations
must focus on: those who actually
carry out the implementation of the
CSR strategy and those who will
provide support for the
implementation.
While conceptual orientation may
suffice for support function staff,
CSR implementers require more
intensive capacity building. They
would need to learn tools,
frameworks, and best practices of
effective CSR implementation. The
company's human resource
development manager should
devise the appropriate needs
assessment mechanism and
separate capacity building
interventions for these two groups.
Once skills have been built,
organisations must address the next
series of vital questions related to
systems capacity: How do CSR
processes interact with other
organizational procedures? What
are the key performance indicators
for the CSR function and CSR
implementers? How and when do
you measure effectiveness of the
CSR strategy? Answers to these
questions should help
organisations identify process
interfaces and system design
requirements for effective CSR
strategy implementation.
S is for Structure
A CSR strategy will be as effective
as the organizational structure that
supports it. The importance the
CEO attaches to CSR will be
determined and communicated by
the places the CSR function
occupies in the organogram. The
hierarchal position assigned to the
CSR function will limit its authority
and mandate.
In many oil exploration companies
for instance, the CSR function
merely exists to comply with
regulatory requirements. CSR in
the form of community
development is a necessary cost of
doing business. CSR is a low-profile
function with no or little career
prospects, except perhaps for the
treehugger or NGO types
meandering in corporate careers in
search of meaning.
One large and reputable local food
company was faced with this
difficult question. Top management
placed high priority on CSR.
Various options were floated for
"placing" the CSR function - this
revealed inter-functional tensions
and desires to control or subdue the
upcoming proposed CSR position.
You may face similar dilemmas:
Should CSR be a part of
Research and Development
because of their common
proclivity towards
innovative solutions?
Should CSR fit into marketing
because of its apparent affinity?
Should CSR be a part of human
resources so that it can begin its
change management journey
surely footed?
Should CSR be part of field
operations as in large industrial
operations, such as the oil
sector?
Should CSR be an independent
function headed by a senior
professional equal in status to
other functional heads such as
finance, marketing and human
resource?
Should CSR be part of CEO
secretariat and run as a special
assignment?
R is for Relevance
The CSR idea that the organisation
wants to pursue must be relevant to
its values, organizational culture
and market positioning. Just like
any new business initiative it must
either fit the existing portfolio,
address an unmet need or
revolutionize the system itself. The
CSR strategy must be geared
towards achieving a fit between the
organisation and its societal
context.
An organisation can create
relevance by owning a social cause
or need. The cause itself is also an
unmet social need, a business
opportunity for the organisation to
gain an unassailable 'positioning' as
it would be seen as 'doing good' for
a higher cause.
The question of establishing
'relevance', must be answered at the
outset of the CSR strategy
formulation. The issues of capacity
development and organizational
structure are thus subordinate to
CSR strategy relevance.
It should also be relevant to the
personal values of employees.
When they believe, and can relate
to the reason behind the
organisation's CSR strategy, they
will be motivated in investing their
time and efforts, even voluntarily.
They will see their efforts to be
contributing not just to 'profits' but
also to the 'people' around them -
the community-, and the planet
they live on; hence, they will be
committed to integration of the
organisation's sustainable
objectives with a true 'triple
bottom-line' approach.
In a nutshell, CSR activation rests
on three pillars: R for strategy
Relevance, S for Structure and C for
capacity.
about the writer
Shadab Fariduddin is a management
consultant and a partner in the Four
Corners Group.
may-june 2008 43
 cross-cultural observation
S
ince arriving in Karachi nine
months ago, I have heard
widespread criticism of CSR in
Pakistan for being focused on
philanthropy as opposed to
sustainable business practices. Such
criticism results in calls for a change
in mindset in relation to CSR.
However, on their own these calls
will have little effect.
In reflecting on my previous
experience of CSR in the UK, it is
clear to me that companies
embedding more sustainable
business practices into their
business strategy is largely a result
of the social pressures that persist
within UK society. These societal
pressures are unique to the UK -
and countries with similar social
realities - and differ from the
societal pressures within countries
like Pakistan.
Therefore, if it is a change in
mindset that we want in Pakistan,
we must look at how best that
change can be brought about in the
context of Pakistan's culture and
social reality.
44 www.triplebottomline.com.pk
pakistan's csr
mentality change
by andrew webster
for tbl
Observations from the a company when applying for
jobs.
UK CSR Experience
As a frame of reference, let's 2. Public Relations Strategy
consider some observations from
This pressure has forced
my understanding of CSR in the
companies to not only embed
UK.
more sustainable practices into
their business model but to also
Over the years I watched social
start utilising these practices in
pressure act as the catalyst for
order to attract consumers and
change in the CSR mindset. As a
future employees. People are
result, companies are increasingly
now employed to work on CSR
defining CSR in line with the triple
and the resulting
bottom line approach as they go
communication strategy in
through a three-step process.
order to build the image of a
responsible corporate citizen.
1. Consumer Pressure
Companies have been forced to 3. Feeling the Benefit
react to the concerns of
These PR strategies lead to
consumers as the world has
increased business success.
become more interconnected.
Furthermore, companies start
People are now basing their
to see the benefit of embedding
consumer decisions on more
more sustainable practices into
than price and brand alone as
their business model, so they
they seek to tackle global
continue to do so. More ethical
problems through individual
waste management, for
action. This stance is perfectly
instance, is not only better for
exemplified by the 72 percent
the environment; it also proves
increase in revenue generated
to be more cost-effective.
by Fairtrade products in 2007
alone, as stated in the Fairtrade
However, working in Pakistan has
Foundation communications.
demonstrated to me that the same
pressures and resulting reactions
At the same time, further
are not as visible here.
pressure is being created
through demands from
graduates that their future The Pakistan Context
employers be socially What I believe this comes down to
responsible. In a recent survey is the differing social context and
titled 'Employable Graduates culture of Pakistan compared to a
for Responsible Employers' by country like the UK. Pakistan has a
'Student Force for set of social pressures that force
Sustainability', 86 percent of companies to act in a much more
graduates said they often or philanthropic and price-driven
always considered the ethics of manner, thus resulting in a less
than 50 percent compliance rate
with basic CSR principles and
objectives.
Philanthropy and
Community
In Pakistan, the ethics of a company
are judged in relation to
philanthropy. This is because
philanthropy and community
values are highly valued in
Pakistan's culture. It is expected
that the more fortunate help the
less fortunate, usually through
donations. Companies are therefore
under pressure to act in the same
philanthropic way and, as a result,
many do so.
In contrast to the UK, however,
there is little pressure on companies
to consider the economic, social
and environmental impact their
operation has on its stakeholders.
Inward Mentality
One reason for this lack of pressure
on sustainable business practice is
the seemingly small amount of
awareness within Pakistan about
the challenges facing the world.
This is primarily because less
people have access to the platforms
that would provide them the
information to engage with these
issues. For instance, only
3.3 percent of the country's
population has access to the
internet, states Romail Kenneth in a
recent Daily Times article .
But even within the seemingly few
people that are aware of the issues,
there is little individual action.
Measures like recycling and energy
conservation are rare even when
the problems associated with these
measures are adversely affecting
people's livelihoods.
If the majority of people are not
concerned with these issues, for
whatever reason, it cannot be
expected of companies to be
concerned with them either.
Price-driven Economy
Finally, Pakistani consumers are
not consciously pressurising
change through their consumer
decisions which is exemplified by
the price-driven nature of the
economy.
Although I enjoy bargaining for the
best price for what I want to buy, it
does show that brands and social
reputation have little significance in
consumer choice, for the majority.
This is reflected in the business
culture too. Marketing, branding
and reputation building are new
concepts for Pakistani companies
and are not always valued highly.
This also means that even when
companies do contribute to society,
they see little benefit in publicising
this.
Creating the Change
It is clear then that companies are
already reacting to the social
pressure within Pakistan by
producing low-cost goods and
exhibiting philanthropic qualities.
However, if we want to expand the
CSR mindset in Pakistan to include
concerns for economic, social and
environmental impact of business
operations, pressure needs to be
generated from the leadership of
society in a variety of areas:
1. Leadership from Multi-
National Companies
Part of MNCs' social responsibility
as they expand into Pakistan comes
in leading and educating others on
how to be more sustainable in a
way that benefits business. They
need to take responsibility for
bringing expertise to CSR-based
platforms in Pakistan at the same
time as creating more opportunities
for people to learn from their best
practices.
2. Leadership through
Education and Awareness
Furthermore, the education of
Pakistan's future business leaders,
needs to be focused on making
them both socially responsible and
business savvy. CSR should be
incorporated into the curricula of
business degrees and courses,
especially at leading business
institutes such as LUMS or IBA.
Also, the media needs to play a
more active watchdog role in
analysing and educating consumers
on the business practices of
companies.
3. Leadership through
Governance
Finally, the government needs to
take responsibility for holding
businesses responsible for their
actions through setting, and
enforcing, minimum standards in
all areas of business impact.
Furthermore, the government
should proactively support the
efforts of NGOs and companies in
promoting the CSR agenda in
Pakistan.
These are just brief suggestions as
opposed to comprehensive
solutions. Although the current
culture of corporate philanthropy is
positive, it is clear that this needs to
be developed into a culture that
incorporates individual
responsibility for the economic,
social and environmental impact a
company has on its surroundings.
Such a transformation will have to
happen in line with the Pakistani
social context and culture and will
most definitely require strong
leadership from those who shape
the mentality of Pakistan's society.
about the writer
Andrew is currently based in
Karachi and works with the JS
Group's CSR Initiatives. He has
come here through the AIESEC
leadership development programme
and has actively been involved in
connecting students with companies
in CSR-based forums in the UK. He
has also written about his
experiences of Pakistan for the
BBC.
may-june 2008 45
obs-inion
the grains of truth in crises:
food for personal thought
by asim malik
for tbl
W
e are living in a global
food catastrophe that will
be more crippling than
anything the world has ever seen.
The credit crunch and the
reverberations of soaring oil prices
around the world will pale in
comparison to what is about to
transpire. The greatest demand
challenge is not oil - it has yet to
come.
"Those who have food are going to
have a big edge," is what U.S.
Strategist Donald Coxe thinks it has
come to. The U.S., of course, is one
of those countries with an edge.
54 percent of the world's corn is
grown in America's mid-west, as
revealed by the United States
Department of Agriculture's
Economic Research survey.
Countries are facing devastating
food shortages which could
ultimately lead to a war for control
over the world's food market. Due
to food shortages and escalation in
world prices, the poverty trap has
become even stronger. This means
that the millennium development
goals (MDGs) and the eradication
of poverty increasingly seem like
nearly impossible tasks. Instead of
making progress, perhaps we have
regressed in our journey towards
the MDGs.
The situation is dismal, however
there are some steps we can all take
to soften the blow of food
shortages.
Soften the Blow Lesson 1:
Victory Gardens
During World War II, the American
and Canadian governments started
a programme which was called,
Victory Garden. Its primary
purpose was to encourage people
to grow food at their homes to ease
46 www.triplebottomline.com.pk
and reduce the pressure on the food
supply during the course of the
war. Citizens grew food on their
lawns, on apartment rooftops, and
wherever possible. The Victory
Garden's existence ceased when the
war ended and things went back to
their old (unoptimized) ways, being
dependent upon supermarkets and
fuel-consuming grocery stores for
our food.
Now, when we are facing severe
food shortages, why wouldn't we
start such a programme and
encourage people to turn their
manicured lawns into a means of
survival?
With such dire agricultural realities,
among our first steps can be to
replace ornamentally manicured,
water and fertilizer-sucking,
perpetually out of season lawns
into vegetable gardens - to not only
feed families, but also teach
children about self sufficiency and
natural resources.
Soften the Blow Lesson 2:
Urban Agriculture
During the Cold War, Cuba's
industrial-agricultural system was
fueled by oil from the Soviet Union.
When the Soviet Union collapsed,
Cuba lost its source of oil and the
system began to collapse. Food
shortages were the norm. However,
Cuba prevailed by taking a
different approach to their farming
methods.
Out of the crisis emerged an
incredible success story, a classic
CSR winner where dire risk was
flipped into creative opportunity.
More than 80 percent of the
vegetables consumed in cities were
also grown within them, according
to the Financial Post. Yards and
vacant lots were put into food
production, while the state
provided expertise and equipment
to get new 'farmers' started. Today,
more than ten thousand urban
farms provide fresh, cheap, organic
food to local neighbourhoods in
Cuban cities while providing
incomes and jobs to tens of
thousands of people. The gardens
achieve a productivity level
comparable to yields from
industrial agriculture. They do this
by mimicking nature rather than
bludgeoning it into submission
with chemicals, artificial fertilizers
and excessive irrigation.
There is hope that we can curb
these foot shortages if we act now,
as a nation, unified in our times of
crises at least. We must understand
the urgency and contribute towards
self-sufficiency. There is a need to
raise awareness and educate the
masses, who can contribute to such
programmes. However, ultimately,
the government must play its
leading role in not only resolving
food shortage issues, but
proactively preventing them.
We want to see our coming
generations eating and surviving in
this world on their own and it is
our common responsibility to give
them a planet not green with envy
or disease but green with produce.
Green: the colour of money, the
colour of the environment, and
now, the colour of food.
about the writer
Asim Malik works in the
microfinance industry
and has also been
involved in providing
consultation and
bringing innovations in
the field of retail
distribution for the
FMCG sector.

sustainable inspiration
by khadeeja balkhi
for tbl
I
was quite excited when
Greenleaf Publishing sent TBL a
copy of Sustainable Value hot
off the press for us to review.
Written by Chris Laszlo and
published earlier this year, its first
few pages are filled with
impressive enough praise from
academics and business people
alike, including a foreword by
Patrick Cescau, Unilever's Group
CEO.
RISKS
- Customer deslection
- Pre-emptive regulation
- Loss of market shares
- Reputation damage
- Fines, penalties
Unsustainable
(value transfer)
- + STAKEHOLDER
Unsustainable
(lose/lose)
The sustainable value framework
Perhaps what sets the book apart is
that it begins as a 'story'. It's light
reading. It's fun reading (ok you
can discount that a little bit because
I am a nerd). It doesn't dive into the
heavy business-case-for-
sustainability kind of talk. It's a
fluid read. Something you can take
on the plane and actually look
forward to reading.
It starts with the story of Deena, the
Chief Executive of a plastics-based
industry. Her company is
delivering exceptionally high
financial returns. Its stock is
selected in the 'Vice Fund'- based
on the idea that 'sin' stock are
highly profitable activities that
yield above-market financial
returns joining the ranks of the
worst environmental performers in
the oil and gas sector, tobacco or
adult entertainment. She is a
Author: Chris Laszlo
Published by Island Press
208 pp
character whose choices most
business readers can thoroughly
relate to.
By the time readers have shared her
'aha' moments in her -and her
company's- journey to more
sustainable, ethical corporate
citizenship, they're fully primed to
read the section that follows: four
companies' sustainability case
studies, including Walmart's.
OPPORTUNITIES
- Enhanced reputation
- Product differentiation
+ - Motivated employees
- Reduced costs
- Entry into new markets
Sustainable
value
VALUE
Unsustainable
(value transfer)
-
I would say my favourite part
perhaps remains The Sustainable
Value Framework. If you are a
visual person, like me, then try
skipping merrily to Section 9. Here,
my initial excitement was again
justified. It is a basic sustainability
concept captured and articulated in
a visually convincing and
appealing manner - at least for a
business audience.
The catch is, this book's ideal reader
is s/he who needs to be convinced
of the business case for sustainable
practices. Clearly, that means it has
a huge readership in Pakistan. But,
how likely are the people that need
to be convinced in the first place, of
actually picking up a book like this?
And then, to read it through and
derive the value that lies between
these statistics-packed pages (a
vital element of any good writing in
book in focus
this genre, in my opinion)? I don't
know if it was intended for such a
readership, but I do believe, that it
is at this early level of sustainability
understanding that it adds the most
value.
Sustainable Value is also a good
book to read if you're feeling low,
in need of inspiration. And I don't
mean the fruity kind, I mean the
quantitative, qualitative kind that
not only propels you into action but
gives you some pointers on how to
stay in action.
The latter, however, is perhaps a
weakness of the book. The core of
its toolkit, 'the eight disciplines'
comes across as a bit
underdeveloped. It is a framework
that gives the feeling that it is
tailored from a generic
management background without a
true Sustainability agenda toolkit as
a real part of it. But again, it
remains a framework for beginners
to at least start bouncing off of.
The bottomline: read it for
conceptual clarity and sustainable
inspiration. And stay in that top-
right quadrant where there is true
sustainable value creation!
about the writer
Khadeeja Balkhi is a Sustainability
Consultant who finds great joy in her
work, whether it's strategizing, hands-
on implementation, field-based
stakeholder engagement or
documentation and monitoring. She
can be reached at
editor@triplebottomline.com.pk
may-june 2008 47