Challenges to democracy and liberal

order islamophobia and FATF .

Democracy ;
Democracy (from Greek δημοκρατία (dēmokratía) dēmos 'people' and kratos
'rule') is a form of government in which the people have the authority to
deliberate and decide legislation ("direct democracy"), or to choose governing
officials to do so ("representative democracy").

In a democracy, the well-being, individuality and happiness of

every citizen is important for the overall prosperity, peace and
happiness of the nation.
A. P. J. Abdul Kalam

Prerequisites of democracy
Democracy grows and flourishes in those societies where there is an educated and sensible
electorate, sincere and capable leadership, sound economy, middle class representation in
legislative assemblies, a tolerant society, organized mainstream political parties, free media (both
print and electronic), social justice, tolerance in the political parties, freedom of expression,
strong opposition, and a non-discriminatory society etc.

Atifete Jahjaga, the third and first-female president of Kosovo, who

served from 2011 to 2016, believes that “democracy must be built through
open societies that share information. When there is information, there is
enlightenment. When there is debate, there are solutions. When there is no
sharing of power, no rule of law, no accountability, there is abuse,
corruption, subjugation and indignation.” One cannot help but
acknowledge the wisdom of this statement.

Challenges to Democracy ;
1 Foundational Challenges (example pak ) it means ; establishing democracy out of Monarchy and
military rule
2- Challenge of Expansion ( giving power to people and lower tiers of govt )
3- Partial Media
4- Populist leaders
5- Economic problems

DEMOCRACY AS A FAILURE IN PAKISTAN

Democracy has certain key indicators. The most important indicator of the
quality of democracy in a country, specifically like Pakistan, could be the
scale of social, political and economic stability. As far as social stability in
Pakistan is concerned it leaves a lot to be desired. While on the one hand, a
full-scale class conflict is very much there . t this point in time, Pakistan is
far from having political stability rather it is the most politically unstable
country in the contemporary world. The 13-party coalition government is
clinging to power with a razor-thin majority in the National Assembly and
is kept afloat by small regional parties. physical security is a key aspect of
political stability. In contemporary Pakistan, no one can think oneself to be
fully secure. the level of institutional maturity and responsiveness is
another key aspect of political stability. Keeping in view the situation within
major government institutions, most of them lack capacity and competence
or sense of direction and belonging to the society and its people . At the
moment the biggest problem of Pakistan is total economic meltdown rather
collapse

Liberal world order .

World leaders created a series of international organizations a and agreements after
WW2 to promote global cooperation on issues including security, trade, health, and
monetary policy. The United States has championed this system—known as the liberal
world order. They tried to establish an order based on liberal democracy and free
market economy. The order was liberal in the sense that it was to be based on liberal
values like protection of human rights rule of law and respect for countries sovereignty .
After the fall of Soviet Union , liberal order seemed to be more robust than ever .

Reasons for collapse of Liberal world

order :
1- Growing populism
2- Nationalism
3- Authoritarianism
4- Desire of expansionism ( Usa in Iraq and Afg)
5- Increased rich poor gap
6- Rise of China
 Evidences of collapsing liberal order
1- 2008 financial crisis
2- Rising populism in America
3- Trade wars
4- Human rights violations
5- International law violating
6- Nuclear proliferation

To get more incites on this topic , watch this video on youtube

https://www.youtube.com/watch?v=-82oN5tBoX4

ISLAMOPHOBIA
Islamophobia is a prejudice, aversion, hostility, or hatred towards Muslims and
encompasses any distinction, exclusion, restriction, discrimination, or preference
against Muslims that has the purpose or effect of nullifying or impairing the
recognition, enjoyment or exercise, on an equal footing, of human rights and
fundamental freedoms in the political, economic, social, cultural or any other field of
public life.

Click on this link to get more details and cover all aspects of Islamophobia

https://www.islamophobia-awareness.org/what-is-islamophobia/

contextulizing the word islamophobia and its history

The term ‘Islamophobia’ has been defined in a variety of ways. Though it had been used several
times earlier also, it gained formal recognition in a flagship report written by the Runneymede
Trust (a British race equality think tank) in 1997, which stated: The word is not ideal, but is
recognisably similar to ‘xenophobia’ and ‘Europhobia’, and is a useful shorthand way of referring
to dread or hatred of Islam – and, therefore, to fear or dislike of all or most Muslims. Such dread
and dislike have existed in the western countries and cultures for several centuries. In the last
twenty years, however, the dislike has become more explicit, more extreme and more
dangerous.3 This definition rightly emphasises that, despite recent manifestations, Islamophobia
is by no means a new phenomenon in Europe

Which events led to start of Islamophobia?

1- Salman rusheedi’s book (satanic verses)
2- Samuel P hungtington ( Clash of Civilisation)
3- Us war on terror
4- Attacks on muslims in France and India
 5- Media played huge role in propagation of hate against muslims
Reference book ; The Islamophobia industry , and Encyclopaedia of Races and ethnic
studies

Indicators of prevailing Islamophobia?

1- War on terror ( war against Islam)
2- Iraq attack ( George bush used the world Crusades)
3- Switzerland stopped construction of minarets
4- Caricatures – Charlie Hebdo
5- Trump Banned Muslim countries travellers
6- 60 pc Germans criticised immigration of 8 lac Muslims
7- Christchurch Attack 2019
8- Indian citizenship act
9- Saffroon Movement in India
10- According to the National Observatory of Islamophobia, there were 235 attacks on
Muslims in France in 2020, up by 53 percent from 154 the previous year; attacks on
mosques increased by 35 percent in the same year. A global coalition of 25 NGOs asked
the European Commission to investigate France for its state-sponsored support of
Islamophobia.
11-COVID-19 has presented a justification for further Islamophobia in Europe, with
communities scapegoating the transmission of the virus on the local Muslim minorit

Pew report “ 6 out of 10 adult American hates muslim .

Solution;
1- Becoming Muslims in true sense
2- Legal efforts ( by OIC)
3- Coexistence among nations
4- Joint institutions building
5- Inter faith dialogue with western world
6- Modern universal interpretation of Islamic teaching
7- Pluralism
8- Criminalising Of Islamophobia ( not freedom of speech)

9-Uprising the West about the nature of relationship between the eastern values and the religion (
west experience with religion during papacy rule and holy hundred years war , hence it made west
abhorent towards political views of the religion)

10-Containing militarism in the name of islam

11-Rapprochement between islam and modernism

( example Role of Shah wali Ullah ) and sir syed ahmed khan

Diplomatic efforts from OIC

 12-Awareness of non muslim world through cultural exchange programs. Like with
Drama serial Ertugal ghazi .

13-Role of Muslim leadership across the globe and making islamic cells in foreign offices
.

14-Making Economic blockage by OPEC members ( like in 1973 )

15-Given the deep-rooted origins of Islamophobia in Colonialism and Orientalism, this

will require the deconstruction of many institutions and their long-standing perceptions
about Islam. Pakistan can take the moral high-ground and embody that most significant of
first steps, which is to highlight anti-Muslim injustices when they occur in order to
awaken the conscience of Europe

B – efforts needed at national level

1- Diplomatic efforts ( Russian PM and Canadian PM ) 2- Plugging the loopholes in

blasphemy laws
2- Special focus on protection of muslim and human rights within countries youth to
avoid radicalisation .
3- Protection of minorities in home countries to initiate cycle of co existence
4- Focus on human development

FATF ( FINANCIAL ACTION TASL FORCE)

what it does ?
The Financial Action Task Force (FATF) was established in July 1989 by a Group of Seven (G-
7) Summit in Paris, initially to examine and develop measures to combat money
laundering. In October 2001, the FATF expanded its mandate to incorporate efforts to
combat terrorist financing, in addition to money laundering. In April 2012, it added efforts
to counter the financing of proliferation of weapons of mass destruction.

what is FATF
The Financial Action Task Force (FATF) is the global money laundering and terrorist financing
watchdog. The inter-governmental body sets international standards that aim to prevent
these illegal activities and the harm they cause to society. As a policy-making body, the FATF
works to generate the necessary political will to bring about national legislative and
regulatory reforms in these areas.
With more than 200 countries and jurisdictions committed to implementing them. The FATF
has developed the FATF Recommendations, or FATF Standards, which ensure a co-
ordinated global response to prevent organised crime, corruption and terrorism. They help
authorities go after the money of criminals dealing in illegal drugs, human trafficking and
other crimes. The FATF also works to stop funding for weapons of mass destruction.
MEMBERS ;37 , OBSERVOR ; INDONESIA

FATF Associate Members

 Asia/Pacific Group on Money Laundering (APG) (See also: APG website)
 Caribbean Financial Action Task Force (CFATF) (See also: CFATF website)
 Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) (See
also: Moneyval website)
 Eurasian Group (EAG) (See also: EAG website)
 Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) (See also: ESAAMLG website)
 Financial Action Task Force of Latin America (GAFILAT) (formerly known as Financial Action Task Force on Money Laundering in South
America (GAFISUD)) (See also: GAFILAT website)
 Inter Governmental Action Group against Money Laundering in West Africa (GIABA) (See also: GIABA website)
 Middle East and North Africa Financial Action Task Force (MENAFATF) (See also: MENAFATF website)
 Task Force on Money Laundering in Central Africa (GABAC) (See also: GABAC website)

PRESIDENCY ; T. Raja Kumar(Singapore 2022-2024 began a two- )

year term as President of the Financial Action Task Force (FATF) on 1 July 2022. He
succeeded Dr. Marcus Pleyer.

FATF LISTS ;

GREY LIST (Jurisdictions under increased monitoring)

;

When the FATF places a jurisdiction under increased monitoring, it means the country has
committed to resolve swiftly the identified strategic deficiencies within agreed timeframes and is
subject to increased monitoring.
- 12 countries : Bahamas, Botswana, Cambodia, Ethiopia, Ghana, Pakistan, Panama, Sri Lanka, Syria,
Trinidad and Tobago, Tunisia and Yemen are in grey list

Black List ( High Risk jurisdictions subject to call for action) -Comprise of those countries
which have grave strategic deficiencies and lack mechanism to curb money laundering and terror
financing , Two countries in black list ;North Korea, Iran

Pak in grey list since June 2018

SOURCE ; THE DIPLOMAT

What Pak needs to do in order to get out of grey list
1- Follow 27 recommendations by FATF
2- Pakistan is trying its best through legislation and their implementations in order to get an
exit from the grey list. Pakistan needs the support of at least 12 member countries out of the
39 FATF member countries to exit the grey-list.

Steps Taken by Pakistan up-till now

1. National Action Plan
i. Zarb-e-Azab ii. Madrassa Reforms iii. Registrations of SIMs iv. NACTA v. Operation Rad ul Fasad

2. IN 2020, three FATF related bills including ICT waqaf property bill, ATA amendment bill 2020 and
Anti money laundering amendment bill 2020 were also passed in order to show compliance of the
FATF regime.

3. The Terror Financing Risk Assessment Report was submitted by Pakistan that unfolds the network
of crime funding across the border from both domestic and foreign sources

4. Since June 2021, Pakistan has taken quick steps towards its AML/CFT administration, counting by
sanctioning authoritative revisions to improve its universal participation system; illustrating
DNFBP(Designated non financial businesses and proffesions) observing for PF TFS(Targeted Finanical
sanctions) and DNFBP supervision

5. Last year, the parliament amended 14 laws in September that are related to its legal system to
fulfill the requirement of the FATF.

6-Anti-money laundering units were established in Pakistan Customs in order to have surveillance on
under/over invoicing on consignments which may involve an element of money laundering

7. In compliance with Security council resolution 1267 and 1373,Jamat-ud-dawa was prevented from
its activities.

8.Coordination between NACTA, FBR, Banks, SCEP and FBR was enhanced through data sharing and
mutual coordination .

9- A Special Cell under the DGMO (Director General of Military Operations) was also
established
10- In addition, Federal Board Revenue (FBR) efforts to monitor jewellers and real estate agents
by DNFBP (Designated Non-Financial Business and Professions) led to strict compliance. A
special cell to combat human trafficking (via the Tokhram border) was introduced by Federal
Investigation Agency (FIA). Besides, the number of ‘anti-Benami zones’ in the country is
being enhanced
9.Documentation of economy drive

. Major Hurdles for Pakistan-

FATF lense INTERNAL CHALLENGES
1. Corruption in AML regime

2. Political rift among various political parties

3. institutional incapacity for AML regime

4. Extremist nurseries

5. Absence of centralized system of data sharing

6. Strategic aspect of proscribed organizations

EXTERNAL CHALLENGES
1. Malicious role of India in regional politics

2. Convergence of US-India Relationship

3. Illegal channels for money laundering i-e Hawala Hundi

4. Changing regional dynamics and monopolized FATF

Impacts of FATF Grey/Black Listing on Pakistan

1. Trust deficit with multinational companies and decrease in FDI

2. Limited access to international lending

3. Economic loss of about $38 billion

4. Political isolation

5. Negative Impact on CPEC and decline in Exports

The way forward/ Recommendation

1. FATF related laws should be implemented in true spirit through capacity building of the
institutions.

2. Digitalization of the government processes is more than inevitable

3. A robust foreign policy and international lobbying can create as support system for Pakistan

4. Proscribed organizations should be curtailed and strict action should be taken against them

5. Ties with regional neighbors should be strengthened

6. Institutional capacity building

.7. A nation-wide consensus is also needed to restrict TF risks strengthening the sanctions regime
against those found involved in Ml/TF. Moreover, regional countries have to be convinced to stop
cross-border illegal cash transaction.

8. FMUs need to enhance their access to TF risks and financial intelligence; and Federal and
provincial governments should also improve their support to institutions dealing with the TF.

9.Diplomacy is needed to lobby for Pakistan’s point of view and its attempts to reform AML/CFT and
get off the grey-list.

10. Pakistan needs to show that its new AML/CFT rules work and look for international help in ML/TF
cases through mutual legal aid.

Conclusion
Pakistan Foreign Office spokesperson Asim Iftikhar statement: “In the context of FATF, we have
faithfully complied with and completed all technical requirements and hope that the outcome would
be in the positive direction…… only political considerations of the members of the illicit financing
watchdog can hold it back in that category.” (source: Dawn 19 feb 2022)

Read this article from IPRI JOURNAL by clicking the link

https://journal.ipripak.org/wp-content/uploads/2022/06/Article-8-IPRI-Journal-XXII-I-Adeel-
Mukhtar-Mirza.pdf