Failed rescue act: Too many ‘visions’ for Pakistan

Published: December 4, 2011
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Gillette Pakistan CEO Saad Amanullah Khan said “I don’t care if a dictator is there as long as he revamps the economy.”

Gillette Pakistan CEO Saad Amanullah Khan said “I don’t care if a dictator is there as long as he revamps the economy.”

Gillette Pakistan CEO Saad Amanullah Khan said “I don’t care if a dictator is there as long as he revamps the economy.” “Many people think that a non-democratic set-up is a panacea for the economic problems of Pakistan. They’re wrong. A non-democratic government is not sustainable,” said Ishrat Husain, former governor of the State Bank of Pakistan.
KARACHI: 

A vigorous difference of opinion among technocrats, economists and corporate leaders on a number of socio-economic issues was witnessed during an interactive session held at the Institute of Business Administration (IBA) on Saturday. And at the end it was unclear whether democracy was the answer, or a dictatorship, as advocates for both arguments came up with pretty convincing logic.

Speaking at the session organised by IBA in collaboration with Blinck, a youth resource group, under the title of “New Year Resolutions for the Economy of Pakistan,” panellists candidly expressed disagreements over the questions of foreign aid, democracy and the interplay of policy-making and implementation at the national level.

“Many people think that a non-democratic set-up is a panacea for the economic problems of Pakistan. They’re wrong. A non-democratic government is not sustainable,” said Ishrat Husain, former governor of the State Bank of Pakistan, who is currently serving as dean and director of IBA. “Democracy is slow and messy. It takes two steps forward and four steps backwards. Yet it’s the only option. The democratic process shouldn’t be interrupted.”

Husain said military regimes do make an extra effort in the beginning to improve the economy because they have not yet developed a constituency of their own. “But later on, they start making compromises.”

Claiming that a democracy needs low poverty and high literacy rates to prosper, Gillette Pakistan CEO Saad Amanullah Khan said Pakistan had only two eras of development: first, in the early 1960s, and second, during the first three years of the Musharraf government. “I don’t care if a dictator is there as long as he revamps the economy,” Khan said.

He said that the idea of a government led by technocrats that could bring the economy back on its feet had its relative merits. Khan emphasised the need for adopting a national vision for long-term growth, adding that the entire nation should work towards its realisation. “Go to Proctor & Gamble or Gillette, and they’ll tell you their five-year goals in detail. But ask a government representative what the vision for Pakistan is for the next five years, you won’t get any definite answer.”

Disagreeing with Khan, Husain said Pakistan did not need any more “visions,” as the problem existed in their implementation only. “The country is full of pious documents. These are beautifully written policy papers that nobody reads. We all agree on the substance of policy, but the implementation is the real issue.”

Responding to a question, former Asia editor for The Economist Simon Long said it was wrong to attribute Pakistan’s dismal economic performance of six decades to its culture or laid-back attitude to work. He said that 35 years ago people often assumed China’s poor economy was a consequence of Confucianism. He said it was now obvious that Confucianism had nothing to do with the slow growth in the economy of China.

Talking about Pakistan’s economic indicators, Long said an economy with a tax-to-GDP ratio of less than 9% was not sustainable. He said it was hard for him to understand how Pakistan’s economic managers would bring down the fiscal deficit in next two to three years.

In response to the comment of a business student that Pakistan should stay away from all kinds of foreign aid and assistance to achieve self-reliance, Husain said the assumption that the Pakistani economy depended on US aid to survive was wrong. “Isolationism won’t solve our problems. Transfer of knowledge and technology is important. You’ve to be outward-oriented.”

Published in The Express Tribune, December 4th, 2011.

 

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Reader Comments (5)

  • Dec 4, 2011 - 5:43AM

    The day a Pakistani can go into a voting booth and cast their vote for someone who’s father or mother or brother or sister was not involved in politics is the day that a vote can actually count for something. Until then, you are just leasing the country to someone to use for their own benefit.

    Democracy is the only way forward. Before that though, the dynastic and feudalistic leadership needs to be flushed down the drain for good. No more seats of power being handed down the family. No more handling of the provinces and the country like an extension of a waderas land. Future politicians need to come from common, humble backgrounds and work their way through the ranks.

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  • Khan
    Dec 4, 2011 - 9:13AM

    How is a government run by technocrats democratic? Technocrats are not elected, they are selected. And then they continue to implement their ‘vision’ in an undemocratic fashion.

    The rise of China in a short period of time has shattered the myth that democracy is a requirement for development.

    Peace, stability and the right policies are the answer.

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  • Rafi
    Dec 4, 2011 - 11:41AM

    Well said Dr Ishrat.

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  • Ali Tanoli
    Dec 5, 2011 - 1:19AM

    Make a death penalty for any crrupt person in the coutry then see how pakistan will succeed.Recommend

  • American Desi
    Dec 31, 2011 - 12:52AM

    Gillette Pakistan CEO Saad Amanullah Khan said “I don’t care if a dictator is there as long as he revamps the economy.” Translation: “I don’t care whatever happens to others/ country as long as we make money.” Shame on this guy! I hope Gillette takes note of this.Recommend

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