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Crucial aspects about economic development
Dr Zafar Altaf
Economists might feel a bit slighted if I say that economic development
is not about economics alone and economists must learn to understand the
elements that are there in economic development. That understanding will
take a long time. In the developing world the economists are generally
brained in the western theories and they lack the depth of local
knowledge. Conceited, as they are and with degrees from elsewhere they
romp around as if they are the cat’s whiskers, hopping around the world
with another country’s agenda that is not in consonance with one’s own.
Petty amounts of money have laid the developing countries bare. With the
current financial crises why are the seven developed countries getting
to have meetings of twenty countries the thirteen that they have called
are for the financial resources that they can provide otherwise Saudi
Arabia was very much on the firing line after the 9/11 episode. Why
cannot USA go to the IMF for support, as they do need financial
resources for the misrepresentation that they have been doing to the
world and themselves. So why bail out there banking system. Let the IMF
deal with it just as they did with the financial crises of the Far East.
Economists have failed to recognize equality considerations and have
failed to address issues of poverty and these days they are not the
solution but the problem. How will any country given its massive poverty
underwrite its own solution? It cannot unless it takes on a different
kind of intervention [s]. Shaukat Aziz used to gloat on his macro
economic data, data that was fudged and was purposely manipulated. The
forex reserves were so many billions and the growth rate was up and up
only with cheat figures. The nature of growth did not create any jobs
rather it held out hope when hope was already lost. Where is that
stabilization that he used to gloat about? Slaves that they were they
took us to the pits of the world. Stabilization requires an in depth
knowledge of the underlying complex factors that caused that
destabilization in the first place. Anything that requires selling of
family silver has to be carefully orchestrated. Pakistan has been made
to sell short in its privatization process. The result has been that
precious resources created during the previous five decades or so were
sold to the highest bidder in theory yet in practice that did not
happen. There was lack of transparency in the privatization process. To
consolidate millions of people of a population it must try and
consolidate its new input as well as output prices. Domestic price
stabilization factors have not been identified and as we are the lackeys
of the received directions of the west we will never bring in policies
that will be to the benefit of the people of Pakistan. Make no mistake
for that is what we will be yelling from the rooftop. This dichotomy
between the statements and the implementation process is mostly due to
the economists that we have had. Somehow some one passed the knowledge
that economists would be able to solve the problems of the country and
that that is what started the rot.
The build up of a bureaucracy that was handmaiden to the power and
vested interests of the powerful ruling autocratic system that was put
in place committed the mistake of obeying all orders whether these were
correct or incorrect orders. The economists had even less ability than
the dishonest bureaucracy that was looking to survive the onslaught that
was carried out by the military junta. Some how the feeling grew that
the way to the top was to be servile to the powerful one man show and to
do this it was necessary to show it by word and deed.
No one understood that the criteria imposed on the country in terms of
macro economic indicators and the various tools were and continue to
have minimum and limited impact. The international agencies were used to
providing a straight unimagined package for implementation that had no
connection with the cultural heritage or the country specific
variations. No local aspect was kept in mind while providing the
conditionalities to the country as if these were the only interventions
that could save the country from ruin. The intentions were otherwise.
The intrinsic structural issues created by the previous IMF directed
polices were ignored and more of the same were applied.
There was one difference. If Pakistan played its cards according to the
dictates of the western country then the nature and kind of government
could be forgiven and aid could flow. This kind of governments were a
poodle to the western regimes that wanted to use the country for other
nefarious activities, like the fight against Russia in Afghanistan
during the Zia regime or the war on terror during Musharaff’s time
during which the soul of Pakistan was sold to the devil. All concepts of
democracy were forgotten and the General’s one-man shows were accepted.
The hypocrisy of the policy makers of the international agencies was not
to be questioned. Human rights went for a six.
Successful change requires not only that the knowledge part be suitably
modified but also that the science be merged wit the intuitive ability
of an artist. Lacking in one or the other will not allow decent policy
issues to be implemented. A combination of technocratic ability had to
be tempered by and with bold leadership and an even broader social
participation. Participation was there during the last nine years but
that was for the powerful army personal that took away the lands from
the poor and gave it to themselves. Not a word from the powerful
international agencies for all of a sudden the indications given the
people of the country was that these illegal occupiers of governance
were actually great friends of the local people. That these were the
only patriots that were available and capable of sacrifices for the
country. The governance of the country was passed on to the economic hit
men that were developed over the years and brain washed in the western
ways. These were people like the former PM, the SBP Governor [ess] and a
host of such people. The influence over top positions was called for if
these western countries were to exercise influence and their own way of
thinking on to Pakistan. As a result of the shift in ownership of landed
assets an already skewed agrarian system was further given a twist.
Massive inequalities were created and massive regional discords were
sown. The short term and myopic policies led to further schisms in the
system. Pakistani’s continue to be taken up the garden path and a
measure of the massive creation of uncertainty is carried no to the
economic issues but new one are raised as if to say ‘how dare you stand
up, a lesson would be taught you and your country’.
Maps are touted around when al these discrepancies were and are due to
the blind following the blind. Does the economy need financial resources
from abroad? What good would that do unless the structural issues as
understood by the local wisdom were not addressed. Is there a basis for
self-reliance here? Yes there is. The sooner the wisdom of one’s own
action is understood the sooner we would be a proud nation in the
complex world of the developing countries.
Should Pakistan demand what is due to it? Is there anything due as of
right to Pakistan? If such a demand were made then the illusion of
independence would be furthered. Are we lackeys of some outdated
thinking in the west? Look around you especially those that have
prostituted this country, those whose assts are not commensurate with
their abilities and see what kind of benefits they have been taking. It
would then be possible to see what kind of criminals have been in policy
making. Take care and if you are unable to comprehend what has been
stated take a journey to the poorer areas of Pakistan. Perceive for
yourself. If you are limited to your life by your conveniences and the
lies that the various governments have been passing on to you and if you
have forgotten the ability to question and find the answers then your
life is wasted in the service of this country. The illusion of
development that we have been made to understand by the likes of the
previous regimes has led to the current impasse.
Do you ant more of the East Pakistan recipe? If not then play your part
in the governance of this country in which no personal benefits are
sought but the welfare of the poor of this country.
