Pakistan’s Economy
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Pakistan’s Economy, Reflections
July 02, 2006
REVIEWS: Fair-minded strategies
Reviewed by Afshan Subohi
PITY the poor, bash the filthy rich but don’t touch the middle class. It has forever remained above criticism. But Shahid Kardar, in his book Reflections on Pakistan’s Economy, turns to them. He is convinced that, far from enriching it, the growing middle class of Pakistan has failed the country. “The middle class in Pakistan wants everyone other than themselves to be regulated. They want high quality of services but are not prepared to pay for them,” he makes that strong observation.
It was this middle-income group — the so-called white-collared worker — that has historically, had shaped developing societies. In our country, they did not have any role to play in the transformation of society, which was expected of them. This segment of population should have, over the years, created a progressive work culture based on merit and efficiency. It should have been socially more responsible than being a the parasitic class. But it scarcely managed to do that. And that was the reason why it lost the high moral ground and motivation to maintain pressure on the government for good governance. The government was seen by this class of people in Pakistan as more of “an employer of last resort” and less as a facilitator of a market economy. The question is: why, in our case, should it have been so different from rest of the world?
Kardar in his book attempts to answer this pertinent question. “Part of the problem stems from our history in which even the middle class did not grow independently from the dynamic process of economic growth but flourished through state patronage, be it through employment opportunities in the public sector or through industrial units established by the state and then handed over to private entrepreneurs or by setting up private industry which the state protected from competition, both domestic and international.” Later, he concludes: “[The] Pakistani civil society still does not believe that it can prosper without government benefaction.”
It is the middle class that seems to interest the author most and he makes interesting and thought-provoking observations at quite a few places in his book. A noted economist who joined and later resigned from the Punjab government in the current Musharraf led set-up, Kardar has listed six lessons that he learned from his brief stint in office. A self-proclaimed, pessimist, the author says that his experience of 14 months in public office, in his words, “instead of reinforcing my worst fears, converted me into an optimist, convinced that a lot more is doable and achievable than one had perceived from outside.”
The book is a compilation of 33 articles published in the years following 2003. They cover a wide range of topics perceived by the author “as issues containing human development and economic growth” in Pakistan.
In the preface of the book, Kardar maintains that the key issues in Pakistan remain unaddressed. “In particular, issues pertaining to regional disparities, persistent if not growing poverty, government policies favouring powerful segments of society, poor management of the economy, the impediments to economic growth posed by the state structures, the disproportionate share of national resources appropriated by the military, trade with India, forces of globalisation, etc., continue to constrain the process of development,” he asserts.
The key lessons that the author says he learnt during his stint with the government are: “Leadership must have a vision, should have courage, must have priorities set straight, needs to downsize the government as a bloated government is self-serving, learn from mistakes and abandon wishful thinking and accept facts such as the one that Pakistan has been marginalised even in South East Asia and the reforms will be painful.”
Most of the articles compiled in the book were originally written for newspapers and magazines, therefore, they seem to be too condensed or excised to fit into the small, allotted space as is the constraint faced by writers who contribute to the press. For example, the theme of the shortcomings of the middle class of Pakistan is mentioned at a few places but has not been expanded exhaustively anywhere. In the first essay, “Lessons of office”, the author traces reasons for the peculiar behaviour of the middle class of Pakistan in the history of its evolution.
An article of the renowned Indian economist and Nobel Laureate Amartya Sen, “The argumentative Indian”, in which he examines the democratic culture of his home country, has evoked a lot of interest in economic literary circles. Dr S.M. Naseem and Akbar Zaidi have also dealt with the subject of the indifference of the middle class and the resultant weak democratic current in Pakistan in contrast to the strong democratic traditions in neighbouring India, in their recent writings. Shahid Kardar’s arguments add another dimension to this relevant discussion. The subject, however, demands an in-depth analysis and could have been dealt separately and in more detail.
It has to be conceded that the articles are well-written and packed with new ideas. What, however, one found most impressive is the ease with which the author has handled these tricky subjects. The book is highly readable. Its presentation is direct and reflects the author’s command over the economy of the country. The language is fluent but the style is refreshingly different. After reading the book, the reader would find it hard to place Shahid Kardar in the camp of either the government or the opposition. That could be construed as reflecting the author’s fair-mindedness. He has criticised many policies of the government but the criticism, though well-substantiated, does not challenge the proclaimed direction of economic policies.
Kardar endorses what neo-liberals and donors have been saying over the past decade — to stick to the so-called reform agenda, eliminate subsidies, downsize the state, remove barriers in free market operations, etc. His suggestion to involve the public in a debate on issues of economic choices should be heeded as it can go a long way in forming a fair economic strategy for the country.
Reflections on Pakistan’s Economy
By Shahid Kardar
Heritage Publications, Suite 11/S, 2nd Floor,
Saman Arcade, Firdous Market, Gulberg III, Lahore
Tel: 042-5837698, 5831326.
Email: heritage@wol.net.pk
ISBN 969-8958-00-2
215pp. Rs350
