Economy woes: Inconsistent policies, undemocratic decisions to blame, says economist
Lack of consistency in successive regimes and avoidance of democratic norms in decision-making.
Lack of consistency in successive regimes and avoidance of democratic norms in decision-making are the main reasons behind the economic crisis of the country. This was stated by former Planning Commission Chief Economist Fasihuddin while addressing a seminar at the Institute of Policy Studies (IPS) here on Monday, said a press release issued by IPS.
He zeroed in on the abysmal situation that Pakistan had to face after inheriting a poor economic infrastructure as compared to India and had to rely on foreign aid. However, he cited ‘inconsistency in policies’ as the main cause that hampered maximum utilisation of the country’s economic potential so far.
The implementation of the long-term economic planning done in the early decades of Pakistan was disrupted due to the partition of East Pakistan. Later economic experimentation based on ‘socialist’ principles was carried out, which resulted in the nationalisation process. The process was reversed with the ‘Islamisation’ experiment which was again short-lived. The volatile post-1988 regimes were also not able to formulate a long-term economic vision.
Furthermore, he pointed out that the decision-making process was more democratic and the cabinet was a powerful body that used to take decisions with consensus after extensive deliberations; the prime minister was not able to decide anything on his own.
However, after General Ayub Khan came into power, the situation reversed and the authority concentrated into the president’s office. Unfortunately, this situation continues to mar the state of affairs at the government level to date, he lamented.
Fasihuddin said that earlier foreign financial aid used to be ‘project based’ however after Pakistan went for International Monetary Fund’s Structural Adjustment Programmes in 1980s it became ‘policy based’.
He underlined the importance of reducing communication gap between the government and the masses and building mutual trust to achieve the national objectives.
Fasiuhddin said that the government should understand and realise the woes of the common man before formulating any policy.
Moreover, he stressed need for empowering government bodies like National Economic Council and Council of Common Interests in view of the post 18th amendment scenario.
Published in The Express Tribune, May 15th, 2012.