Why nations fail

The question of why nations fail is central to understanding their history. Is it the result of flawed policies, a discontented population, or something deeper? Nations often fail because of economic, political and historical factors that centralise power and wealth among elites while neglecting the broader population's needs. Nations that embrace fairness advance, whereas those that restrict it stagnate.

In Pakistan's case, instability, power consolidation and economic mismanagement are structural issues. A key factor in national failure is the lack of stable political institutions, where governance is controlled by a few elites. These institutions often serve the interests of the few, leading to decisions that benefit their power and wealth whereas ignoring the well-being of the majority. When those in power prioritise self-preservation over national growth, policies become exploitative.

Another contributing factor is the extractive nature of economic institutions, which transfer wealth from the majority to a privileged minority, weakening the overall economy. Pakistan's agricultural and industrial sectors, which employ a large portion of the population, suffer from poor policies that leave small farmers and labourers dependent on powerful elites. These groups often lack rights and protections. Instead of promoting equal opportunities, Pakistan's economy has frequently favoured established groups, making it difficult for marginalised communities to escape poverty.

Political instability contributes to national failure. Pakistan's history stands witness to the disruption caused by military coups, political infighting and instability, all of which have impeded long-term planning. Frequent changes in governance disrupt policy continuity, with development programmes often abandoned or restructured by successive administrations. This inconsistency undermines domestic confidence and weakens international credibility, affecting foreign investment and aid, both decisive for developing nations.

Pakistan's challenges are compounded by a lack of investment in education and human capital. Without a skilled workforce, Pakistan's industries face difficulty competing globally, leaving the nation increasingly reliant on sectors with limited growth potential. Youth, who comprise a major portion of the population - 63% as per a 2024 report - face limited opportunities, prompting many to seek better prospects abroad. This brain drain thwarts national development.

Corruption is another major impediment to progress, undermining public trust in institutions and diverting resources meant for development into private hands. Pakistan ranks 133rd out of 180 countries on Transparency International's 2024 Corruption Perceptions Index. Corruption affects all levels of governance. Public funds intended for infrastructure, healthcare and other critical sectors are often misused. This not only drains resources but also disheartens citizens and discourages public participation.

Economic diversification is for sustainable growth. Pakistan's over-reliance on sectors like agriculture and textiles, which are vulnerable to market fluctuations, impedes progress. Without investment in technology, IT, renewable energy and advanced manufacturing, the country struggles to create high-value jobs and expand its markets. Nations that fail to diversify are left behind in a technology-driven world.

The culmination of these factors - exclusionary political and economic institutions, political instability, lack of investment in education, corruption and failure to reform - has resulted in poverty and underdevelopment that are difficult to overcome. Pakistan's leadership often focuses on short-term gains rather than addressing the structural issues that cost progress. To move toward prosperity, Pakistan must prioritise building strong institutions, investing in education and healthcare, and diversifying its economy to withstand global challenges.

Nations succeed when they enable their citizens to participate fully in economic and political life.