The multiple crises that confront Pakistan just as 2012 dawns are all aggravated by a singular deficit of leadership that does not measure up to the enormity of domestic and international factors impinging on its security and prosperity. In fact, what has averted a total collapse so far is the sheer resilience of the people who have an extraordinary capacity for absorbing pain. In the face of looming anarchy, they have held together and demanded peaceful change.
The sufferings of the people have worsened because of a particular phenomenon that defies easy explanation. In China, India, Russia and Brazil, the respective economies have benefited greatly from the performance of state enterprises that creatively adapted themselves to a world being shaped by the dominant post-1990 neo-liberal economic order, without giving up their basic structure of state-owned corporations. This adaptation has been successful enough to make economists rethink the paradigm in which the prescription of wholesale privatisation was imagined as the only option. In Pakistan’s case, the worst of both worlds has happened. Privatisation remained half-hearted and capricious, while mega enterprises such as the Steel Mills, the Railways and the PIA went into what looks like a terminal decline. In the popular view, unbridled corruption of the ruling elite has simply sapped away their lifeblood; in conspiracy theories, the spectacular collapse of the state sector has been deliberately engineered to open it up to cronyism.
There has been some useful legislation towards the realisation of the idea of provincial autonomy promised in the 1973 Constitution. Unfortunately, this belated exercise falls short of the expectations in Balochistan. Unlike other constituents of the federation, Balochistan now harbours an opinion — whatever its size — that is almost incompatible with the autonomy visualised in the 1973 Constitution. The gap should have been filled by dynamic leadership at the centre with policies creating shared interests and stakes. General Pervez Musharraf was much too vainglorious and arbitrary to have done that but there has also been a lamentable failure of the elected government to pioneer an altogether fresh approach to the basic issues in that troubled but indispensible province.
The international context in which Pakistan operates today does not brook delays in resolving its fundamental problems. Pakistan’s relations with the United States have run into difficulties more serious than ever before because of the militarisation of American foreign policy in the region. Great powers assert themselves anyway, but become dangerous when they start backing up their coercive diplomacy with actual use of force. The new year will test Pakistan’s diplomacy to the utmost, especially as Washington rings changes in its Afghanistan strategy. Washington’s current war of words with Iran is ominous; either side could misperceive and miscalculate with dire consequences for the region. The volatility of the regional situation warrants a faster pace of normalisation with New Delhi. This may not be possible in 2012 as India synchronises its regional moves with the United States and also wades deeper into the complexities of its internal politics beset with problems of an economic slow- down. Pakistan’s own political landscape is likely to see tempests as the unviable status quo is challenged. The beginning of 2012 needs deep reflection by all the stakeholders in Pakistan.
Published in The Express Tribune, January 2nd, 2012.
COMMENTS (9)
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In all the countries you mention, it is the PRIVATE sector and not the public sector that is the main driver of growth. While it may be true that the public sector has become more "efficient" and is managed reasonably well, that is not saying much and I am not aware of economists re-thinking the issue.
Why has privatization failed in Pakistan?
The privatization of the banking sector has actually been a success-story -- even if I have reservations about the excess profits they earn in a non-competitive market and how cruelly they penalize the small saver by giving them negative real rates of return. The SBP and the CCP need to be doing their job which neither of them is.
Those institutions remaining in the public sector are a disaster. They are bleeding the economy. They should be PRIVATIZED -- or opt for the PPP model as a first step!
Sir, there are solutions to every problem.
@Max: "The fact is we are back at 1857. Remember, Bahadar Shah Zafar was penny-less and under debt from East India Co. " Penniless and sans any support (much less loyalty) of his "subjects"! You probably have to go even farther back, for "zawaal-e-Mughlia" had been so islamically initiated by Aurangzeb, whose reign incidentally looks more like Pakistan today!
@A.Bajwa: "Junior allies are eventually dropped off. France after the Second World War is a good example, though it was led by DE Gaulle." France was no ally, junior or any other. And de Gaulle was nothing more than a pest who was overbearing especially when he brought nothing to the table. After Allies had handed him his country, he was the first "leader" who turned his back on the very people but for whom he would not have had a country. Look for the definition for "ingrate" in a dictionary and you might well find France mentioned somewhere.
On the lighter side, I am sure the readers have heard the story of that famous fakir king who was there to enjoy HALWA (good food). Once his country was invaded by alien forces, he pulled out his old blanket and said good-bye to the palace life and all the glamour attached with it saying we were here to enjoy "HALWA" and we did, now it is time to return to our traditional life-style of begging on the streets or sitting as "majawars" at a shrine. So, Mr. Secretary, we won independence and partition to have "HALWA" and we had it for 64 years. It was delicious, just delicious, and now is the time to move back where we started. Some of us may think, we are back at 1947 (partition). The fact is we are back at 1857. Remember, Bahadar Shah Zafar was penny-less and under debt from East India Co.
These lamentations don't help much.
United States is a big power and they have dominated the strategy and tactics of wars in Afghanistan, and they have funded their efforts.
Pakistan tagged itself knowing it is a junior partner, looking for assistance all the time. Junior allies are eventually dropped off. France after the Second World War is a good example, though it was led by DE Gaulle. Over Suez Canal both France and UK were jilted.
Pakistan should focus on developing an Exit Strategy that can lead to stability and prosperity in this region.
Pakistan's future can be determined by the fact that it is only 47th economy in the world but with an army that is 7th in the world. Is there any other third world country with such a huge army with all the expensive toys?
We all know too well that Pakistan is in deep trouble. But why ? Who is responsible ? Bashing US, the West, India, Zionists, " enemies of Pakistan ", the whole gamut of conspiracy theories etc etc etc is not enough any more. The crisis is much more pressing. The state sponsorship and export of terrorism, teaching Islamic exclusivism in text books to kids, the double game with the West in the war against terror and the futile trial to milk them of aids and weapon systems, search for strategic depth against India -------------------- so many mistakes, so much adventurism had to backfire. The payback time has set in. Pakistan will go down from here.
I did not see anything new in this essay. We are going around the same bush over and again. We all know that economy is in bad shape, the public corporations in the communication sector are falling apart, there is political turmoil in the country, the relations between U.S. and Pakistan are straining. So------? And the prophets of doom and gloom are sparing no moment in yelling bad news in the ears of the people. Get over this Mr. Secretary, there are more important things to do than crying over spilled milk.
This is a superb commentary.