The economy, stupid

Published: August 22, 2011
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The writer is a partner at Bhandari, Naqvi & Riaz and an advocate of the Supreme Court. The views presented are not those of his firm. The writer can be reached at http://twitter.com/#!/laalshah

The writer is a partner at Bhandari, Naqvi & Riaz and an advocate of the Supreme Court. The views presented are not those of his firm. The writer can be reached at http://twitter.com/#!/laalshah

Wailing about corruption has become part of our usual soundscape. And like the din of our daily lives, or the persistent stink of a nearby sewer, we have learnt to block it out. For many of us, corruption is just one of the many unfortunate facts that we need to live with. Or is it?

A large number of Indians don’t think so. Anna Hazare, the 74-year-old Indian social reformer hoping to emulate Gandhi, has touched off a firestorm in India with his crusade against corruption. After being arrested and tossed in jail, Hazare has now emerged to a hero’s welcome and a government which is trying desperately to avoid being cast as the bad guy.

The obvious response at this stage is that Pakistan is not India. We do not have massive crowds out on the streets protesting against corruption. And we have no equivalent of Anna Hazare storming the ramparts of Islamabad.

The obvious response, however, is wrong. The crowds may not be out on the streets yet but according to innovative social research carried out by the data-mining wizards at pringit.com, corruption is — by far — the single most important consideration across the board for all Pakistanis, irrespective of geographic location.

The nationwide analysis by Pringit (described as a Pakistani social network for mobile phone users) found that 42 per cent of Pakistanis think that corruption is the biggest threat facing Pakistan (as opposed to 12 per cent for ‘dehshatgardi’ or terrorism). Even across different locations — the results were separately analysed for Lahore, Karachi, Faisalabad, Peshawar, Fata, Islamabad, Multan and Balochistan — corruption was universally perceived as the biggest threat to Pakistan. In fact, with the exception of the results for Fata and Peshawar, terrorism was not even the second-most important threat: instead, that spot went to either unemployment or inflation (‘mehngai’). Overall, economic concerns (corruption, unemployment, inflation) accounted for 80 per cent of public concerns.

I have to admit that the results came as a surprise to me. After all, between the daily discovery of gunny-sacked bodies in Karachi and the steady drip of casualties from atrocities like the bombing of a mosque in Jamrud, I would have thought it self-evident that the single biggest problem in Pakistan is law and order. But clearly, the people think differently.

Given that the facts are unarguable, a separate issue emerges: does this make sense? Is corruption really as big a deal as the people of Pakistan think it is?

There is certainly a distinguished body of opinion which thinks that corruption is not that big a deal. Or as pithily stated by one commentator on Twitter, “corruption is a silly middle-class concern”.

The economic (or policy) argument in support of that contention is fairly simple. The basic theory behind capitalism is that private individuals get to decide what their capital does since they are best capable of figuring out what the market needs. The job of the government (in such a context) is therefore to provide the services that people need in order to have a stable economic playing field (i.e., things like electricity, transport infrastructure and basic physical security). The fact that people are willing to pay money for certain services (i.e. to give bribes) only shows that the government has misallocated resources or is not responding to private demand. As such, corruption is simply how private entrepreneurs get what they should have been getting in the first place.

While I am no economist, I think such blithe disregard for social concerns is not such a good idea. To begin with, the events of the last few years have only reminded us that capitalism is an imperfect system, one whose many benefits need to be moderated with a dose of common sense and sufficient government regulation to prevent a completely imbalanced society. It is this imbalance which is the public’s root concern today.

As explained by an Indian supporter of Hazare in a New York Times report, “It is the middle class who is worst affected by corruption. The upper class is not affected. The upper classes can get what they need by paying money”.

The term ‘corruption’ thus covers many sins. It refers to the paying of bribes. It refers to a society in which the upper classes can afford to pay ‘speed money’ but the rest of the people cannot. And it refers to public anger at a system so decrepit that none of the simple necessities of life are available without paying extra, often at prices which are not affordable.

Let me try to put all of this together. If the polling data is accurate, there is a tidal wave of public anger building up in Pakistan. From what I can gather, there is little or no recognition of this groundswell amongst the established political parties, all of whom seem to be assuming that life consists of mouthing the same old clichés and all of whom seem to be assuming that the public has no other options.

I am no fan of Imran Khan and I certainly don’t think that he is the answer to our problems. But it may well be that the very high levels of public dissatisfaction with corruption are fuelling his surprisingly high public support. If that is the case, he may not just be a flash in the pan but instead a serious player in the forthcoming elections.

In the 1992 elections, Bill Clinton’s famous War Room used to feature a banner saying, “It’s the economy, stupid”. The point of the banner was to remind the Clinton team that despite all of the froth on the airwaves, what counted most was the economy and people’s perception of it. It may be that the time has come to put up similar banners in the Presidency and in each of the chief minster houses. Otherwise, chances are that the next few years will be more ‘interesting’ than anybody would really prefer.

Published in The Express Tribune, August 23rd, 2011.

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Reader Comments (12)

  • N
    Aug 22, 2011 - 8:57PM

    It is corruption – not the Economy, stupid!

    In addition, no ruling elite has given up their privileges – corruption being one of them, voluntarily. We will have to find our own Hazare…Recommend

  • Khalid Rahim
    Aug 22, 2011 - 9:17PM

    Three State Bank Governors tried to explain to this Government the implication of their very
    behavior in relation to the economy. Corruption is one factor which is caused by nepotism
    and becomes the greatest hurdle in correct planning of projects and their development. In
    his two terms that Bill Clinton succeeded in turning the ink green from red was selecting the
    right persons for the job related to the economy and followed their advise. Could our egoistic
    leaders understand the Humility.Recommend

  • Meekal Ahmed
    Aug 22, 2011 - 9:40PM

    Now that you have taken the name of “Im the Dim”, there will be a huge reaction to your article and no one will concentrate on its message.

    Hope this was not deliberate.

    “Im” is not lilly-white himself if one is to go by what one hears from here and there.

    he has promised to end corruption in the first 100 days. I wish him luck and congratulate him on demonstrating extraordinary naivety.

    Recommend

  • Silent Observer
    Aug 22, 2011 - 9:44PM

    All other problems like Terrorism, inflation, Karachi fashioned murders are indirect results of social injustice, incompetence and corruption.

    Corruption will, for sure, Kill us.

    Recommend

  • Aug 22, 2011 - 10:36PM

    It’s corruption which prevents the government from spending on maintaining law and order. If our tax money were spent on increasing security instead of being wasted, maybe Pakistan would be a better place than it is now.Recommend

  • Mirza
    Aug 23, 2011 - 12:48AM

    Corruption is directly related to our character or lack thereof. Whether we bring Hazare or Imran Khan, unles we change our character and take responsibility of all our actions nothing would happen. The angles or aliens are not coming over to help us out of our social evils. Nobody can force teach us not to add water in milk, or fake baby formula, fake lifesaving drugs, bribes, stealing water, power, or other social evils. We cannot wait for someone come from the top and improve out plight. No doubt with the improvement in economy there would be less corruption but it would be a long process and we have to start it with one single step and not leap-frog. It would take 3-4 consecutive elections for the country to normalize its course. In the meantime we have to re-evaluate our values and character.

    Recommend

  • gp65
    Aug 23, 2011 - 10:28AM

    Corruption results in a misallocation of resources. Resources that should have been used to solve people’s problems are instead used to line the corrupt establishment’s pocket. In India this establishment consistes of politicans and bureaucrats.
    Thus you are correct Feisal that corruption is at the core of many of the symptoms such as poor law and order, weak infrastructure for education and health etc.

    I hope that my Indian compatriots succeed in this fight against the government which has been dragging its feet.I also hope that your wish comes true and a similar movement does succeed in Pakistan too. Recommend

  • Hassan Sadiq
    Aug 23, 2011 - 11:50AM

    @ Meekal Ahmed, Obviously since you consider yourself the only one who has been bestowed with the powers of comprehension let me burst your bubble i understand Mr Naqvi’s message and i also support Imran Khan.

    Maybe if you had a life outside of taking potshots at Imran Khan and instead commented on the article itself you would also see the contradiction in your comment and the hypocrisy of your message.

    Imran is not clean because you heard so from ‘here‘ and ‘there‘ wow these two impeccable sources of inside information have almost always got it correct except for the time when Imran was a jewish agent!!!!!!

    Try to get some help if its possible!!!!

    Recommend

  • Meekal Ahmed
    Aug 23, 2011 - 2:36PM

    @Hassan Sadiq:
    Take a chill pill.

    I don’t take names and identify sources of my information on a public forum. Go find the names yourself.

    Recommend

  • Ishrat Salim
    Aug 23, 2011 - 3:48PM

    @ Mirza…he is correct to a great extent….build character….most of the country`s around us has built themselves due to character…e.g CHINA…but inorder for our people to confront the issues & seek right from wrong…it is one & only one ” EDUCATION “….which has been given so much importance in our Quran also….but we Pakistanis & Muslim…this factor has been of least priority & the result all over the WORLD…Muslims are sufferring.

    Recommend

  • R.Khan
    Aug 23, 2011 - 6:10PM

    Corruption is deep rooted in the genes of Indians & Pakistans thus no amount of efforts can get rid of this manace. It starts from the top & goes all the way to the lower ranks.

    Recommend

  • Hassan Sadiq
    Aug 24, 2011 - 4:12PM

    @ Meekal Ahmed, no Dude i am good!!!

    I dont need to do anything of the sort the onus is on you to prove your allegations, you have the time and energy to accuse someone on a public forum but you cant reveal your sources!!!!!! So till the time you can gather the guts to take names ill put down your comments in a dustbin with your two best friends ‘here’ & ‘there’…..

    Recommend

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