Economic Questions

How will the economy work?

The question itself is very vague and needs to be specific. Economy is influenced by many factors in the country. Take the example of USA: taxes, stock market, inflation, interest rate, gold etc. are all part of the economy. So expecting Khalistan supporters to list everything to the smallest detail is only preposterous considering the fact that majority of such people do not even know how the economy of their own countries works. We have examples more than 200 countries to learn from as well as our past Sikh kingdoms. Besides, it is the responsibility of economist Sikhs to come up with economic policies to make sure that the country lasts for a long time. If Sikhs do not find answers then who will? Whenever Sikhs took power, it always brought prosperity. Sikhs have made it work in the past and they can do a lot better in the future. Economic policies need to be changed over time as the situations arise. Therefore, once the country is independent, specific policies can be drafted and adopted.

Sikhs can turn Himachal into a major tourist attraction and invest more in man-made industries such as amusement and national parks. Making and exporting computer parts, software, sporting goods, clothing, food etc. have become a major source of income for many countries and Khalistan can take part in it by inviting foreign companies to invest and operate their business in the country.

There are no natural resources.

Natural resources and raw material are very important for country’s economic growth. People say Punjab has neither but they do not realize the fact that the Indian government’s policy has always been to keep Punjab on the bottom line and therefore never did anything to look for resources. According to Punjab government’s survey in 1991 Punjab has 284,450 hectare jungles. Even if we assume that Punjab has no resources the argument fails because other countries are always willing to supply the needed goods and materials. South Korea, Taiwan, Hong Kong and other countries have no raw material and natural resources of their own which is all imported from other countries and all are surviving pretty well because they have hard working honest people. Sikhs are hard working people and Khalistani government will import everything it needs. Looking for natural resources in Khalistan will be its first priority. Take the example of Nigeria: with abundance of natural resources and revenue from oil, the country still suffers from poverty and high debt. So natural resources alone do not guarantee economic boom.

Punjab is a semi-arid region. Without the rivers running through it, it would rapidly turn to desert. All of the rivers running into Khalistan would first come through India. India has diverted river water in the past from Punjab to Haryana, but cannot divert anymore because of the public outcry and political minefield they would be entering. With no duty to the citizens of Khalistan, how would you prevent India from diverting ALL river flows from entering Khalistan causing it to turn to desert?

This question deals with ecology more than with Khalistan. If water flows naturally through Punjab, more water will precipitate resulting in more rainfall which will turn the land into fertile. Also, pollution needs to be controlled so that more sunlight gets to the land and water. All the rivers originate from Himalayas. Himachal being part of Khalistan will be the first to get access. So I don’t think India will control the rivers. Countries grow economically by having friendly relations. India might want to get electricity from these rivers but we can easily sell it in exchange for access to seaport. We are moving towards globalized economy rather than invading and taking over. Crushing a homeless community is much easier than invading a foreign country.

Agriculture is pretty much the only industry in Punjab (bar tourism). With the animosity likely to be faced from India and Pakistan and the trade barriers and huge farming subsidies in the West, who would the farmers of Khalistan sell their produce to? And if they are unable to sell beyond the borders of Khalistan competitively, how will you ensure there is not a wholesale collapse of the farming industry in Khalistan?

Take a look at California. Its major industry is Hollywood and amusement parks and both are man-made. Does every landlocked country have farming as its only industry? How about Greenland and Iceland? Surviving, aren’t they? We are in the age of science and technology. We can specialize in computers, software, clothing, sports, tourist attractions, medical and everything else that helps the economy. The list is endless. There is no proof that both India and Pakistan will have animosity against us. On the contrary, both will be friendly and here is why: We will need access to seaport and we will have to negotiate with either India or Pakistan and give something back in return (electricity, food or anything else we may specialize in). This will increase the chances of two countries doing business and growing economically. The other country would want to be in on it in the hopes that the other country does not grow stronger. This will increase the competition and we may get better deals than expected. I prefer to use seaport of Pakistan and then shipping the cargo using trucks or trains. But we can get into the details when we get a country. Pakistan has been friendly to us as we share same culture and language. We share more similarities with Pakistani Punjabis than with Indian Hindus. Both Punjab can work together and have better relations so that we (Sikhs) will have more access to have darshan of our Gurdwaras.

How will the country survive without oil?

This is the primary concern for every country in the world. In fact, shortage of oil is more of a problem for developed countries like USA than it is for the developing countries or countries that have yet to come into existence. Oil is the primary source of energy and accounts for 40% of the use by humans. Without this many essential functions to society such as transportation of raw minerals, refinement, manufacturing goods, and to transport the goods to their destination are not possible. Hence, making it even more difficult for the developed countries to have stable economy.

The world consumes about 84 million barrels of oil every day and US alone consumes 2/3 of it. Japan and Germany are also big importers of oil. China being the fastest growing economy in the world has high demands of oil and is the second largest consumer yet it imports more than half of its energy resources. Chinese people are currently facing electric and oil shortages. Once the oil is depleted, the entire economy of US, China, Japan and Germany and many other countries will collapse.

The major exporters of oil are Arab countries and Russia. Nigeria, Chad and Venezuela are taking advantages from their reservoirs. But all of these countries are not categorized as developed nations. They are still in the developing phase. Chad enjoyed a windfall of one billion dollars in 2007 but its people remain the poorest in the world. Venezuela has one of the largest oil reserves in the world yet significant portion of the population lacks education, health services and an adequate diet. When Nigeria initially gained its independence from Britain in 1960, expectations were high that Nigeria would become an economic heavyweight in Africa.  With abundant natural resources and a large population, it seemed the stage was set for success.  However, despite earnings of more than $300 billion from oil sales during the period 1970 to 2000, the country still suffered from extreme poverty, illiteracy, and high debt. Therefore, it proves beyond the doubt that having oil as the primary energy resource does not automatically make you a developed country. UAE for example benefitted significantly from its oil but this is about to end. Within a decade, UAE will have no more oil left forcing the government to seek alternate methods to earn revenue. The government has already started to turn UAE into tourist attraction in order to keep the revenues coming.

Growing demand and less quantity of oil to be consumed is a warning signal to many of the developed nations and countries that are going through an economic boom. So the oil problem is not a concern just for the Sikhs but for the entire world. In fact, developed countries have more to worry about the economy since their dependency on oil exists at a very high rate. Consider the economic downfall of those countries that will need to replace planes, cars, ships etc. Shortage of oil will have an adverse affect on military and its strengths. Therefore the world must find a substitute and make it useable quickly enough to alleviate the effects of a diminishing oil supply.

Some replacements under consideration are hydrogen, natural gas, coal, ethanol, nuclear fission, hydro power, solar power, and wind power. NASA is considering bringing helium from the Moon to use it as an alternative energy resource. Whatever the case may be, the world at large has the same problem.

In the light of all of this, Sikhs are not alone. Whether Khalistan becomes independent today or tomorrow, seeking alternative methods has become the necessity of every country in the world. If there is a need for oil, it can be imported through India and/or Pakistan and the governments can work out a deal. If oil is used, agriculture productivity will come at higher costs due to use of petrochemicals and machines relying on oil. In my opinion, depending on oil would prove to be disastrous. Sikhs might have more advantage after independence since no cars, planes, ship would need replacement and Sikhs will be starting from scratch. Sikhs will have a fresh start and can concentrate more on using alternative methods. Considering the oil production costs and environment problems in Punjab due to pollution, producing electric cars would be more economical and beneficial in the long run. Smaller size of the country would be an added benefit since managing and running a large oil dependent country would be much more difficult.

In any case, Sikhs share the same problem with the entire world. If the world suffers from oil then Khalistan will not be any exception and if alternatives methods are used as replacement then Sikhs too will take advantage of this.