His labor reforms gave more rights and perks to factory workers, such as the scheme for workers’ participation in management.
This scheme provided for 20% participation by workers in management committees set up at factory level. The Workers’ contribution to the Social Security Fund was abolished. Instead, the employers were made to increase their contribution from 4% to 6%. Compensation rates for workers under the Worker’s Compensation Act were also increased and provision was made for group insurance under the Old Age Benefit Scheme besides pension after retirement. As a result of Bhutto’s economic reforms, concentration of wealth had declined compared to the Ayub Khan era when 22 families owned 66% of industrial capital and also controlled banking and 97% of insurance.
However, not all was as rosy as it seemed.
Bhutto’s first critical misstep was to nationalise everything he could lay his hands upon: basic industries like steel, chemical and cement, banks, insurance, flour, rice, cotton and edible oil mills, heavy mechanical and electrical engineering industries as well as schools. Indiscriminate nationalisation even of small rice husking and wheat crushing mills led to economic stagnation due to fall in investment and flight of capital. Next was the dissolution of assemblies in Balochistan and army operation to control unrest in which thousands of civilians were killed. It was also Bhutto who declared the Ahmedis out of the pale of Islam under pressure from religious parties. His Federal Security Force became the prototype of the dreaded Gestapo, notorious for repression of dissidents.
Bhutto was dynamic, resolute, a skilful diplomat and a powerful demagogue. All these attributes put him in good stead to achieve his goals. But he also had an acerbic tongue, an arrogant mien, a short temper, a vindictive attitude and often acted like an absolute monarch who must not be crossed.
For example, in reaction to a critical remark on his inordinate delay in attending a function, Bhutto had J.A. Rahim roughed up by the FSF, even though Rahim was a minister and co-founder of the PPP. He was also totally unprincipled. For him, it was the goal that mattered, not the means. Thus, he equated Ayub Khan with his father when he wanted to become a minister, but after Tashkent denounced his benefactor publicly.
Ultimately his arrogant behavior with the army chief Zia-ul-Haq cost him his life. As Stanley Wolpert writes, once at a banquet for a visiting head of state, Bhutto called Zia to him addressing Zia as “my monkey!” Bhutto’s execution was Zia’s answer to that insult.
S. G. Jilanee is a senior political analyst and the former editor of Southasia Magazine. (The End)