The Pakistan Tehreek-e-Insaf (PTI) has unveiled its Economic Policy Vision, which other political parties have predictably treated with scorn. Much of this ensuing criticism, however, seems motivated by rivalry or spite rather than being based on valid analysis. One will try doing the latter here, particularly with reference to some key points that evoked personal interest and concern.
The governance and institutional components of the PTI’s Vision immediately bring some questions to mind. Its governance component aims to devolve power down to the grassroots level. Given the devolutionary experience under General (retd) Pervez Musharraf and its subsequent dismantlement by democratic forces, makes one wonder which local government model the PTI wants to implement.
Similarly, while the PTI drew attention to loss-making state-owned entities, the specific steps which it thinks will prevent privatisation disasters like that of the PTCL or the Pakistan Steel Mills controversy, need further elaboration.
Expenditure reforms to reduce the number of federal ministries, limit perks enjoyed by parliamentarians, civil and military bureaucrats would be laudable steps. It would be great if the PTI were to also consider abolishing the practice of granting prime agricultural land to retired military officials (a practice introduced by the British to secure loyalties and induce recruitments).
Increasing funding for education would also be welcomed. Presuming that the PTI would be able to generate the required funds, let us instead consider some conceptual issues. The PTI proposal of implementing one-education system for the entire nation continues to be puzzling. What will this system exactly be? Who will set the curriculum, administer exams, and what will be the medium of instruction?
The PTI Vision also endorsed the need for a voucher system to fund students to go to private schools to fill gaps where government schools are not enough. Seeing the PTI endorse such a scheme seemed a bit jarring after having seen the “Insaf for our children: a radical education policy” paper prepared by the PTI research wing earlier this year, which criticises the existing Western education model for propagating a worldview centred on the ascendancy of Western civilisation and claimed to draw inspiration from Ibn Khaldun’s notion of education. But then we saw the PTI endorse a voucher scheme originated by the champion of liberalism and libertarianism, Milton Friedman.
What the PTI will do about madrassas also remains a mystery. It seems unlikely that they will be ready to embrace the PTI’s educational system. Agricultural reforms proposed by the PTI also merit more consideration. The PTI spokesperson for food and agriculture recently used social media to highlight key features of what is apparently a 1,100-page document. The summary of proposed reforms highlights the need for providing small farmers financial support for required agricultural inputs, through taxing those owning more than 100 acres of land. If the PTI can pull this off, it would be a major accomplishment.
The PTI, in fact, aims to do more, by reforming agricultural research, education and extension organisations/departments. Given the years of institutional decay and increasing intrusion of the private sector and multinationals in this sector under WTO obligations and World Bank pressure, it will be a challenge to institute these reforms.
Instead of providing cash stipends to the rural poor, the PTI proposes offering at least partial employment through union councils for the youth to undertake plantation schemes or rural infrastructure improvement. This is a good idea. There was also mention of involving women and landless farmers in such projects. I did not, however, notice the PTI endorsing the need to ensure minimum wages for agricultural workers and greater rights for sharecroppers.
One hopes that the PTI agricultural development document deals with the above issues effectively if it gets the chance of being put into effect.
Published in The Express Tribune, September 3rd, 2012.
COMMENTS (20)
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Pakistan Tehrik-e-Insaf has issued its economic policy paper as part of the formulation of its election manifesto. The policy is silent over the country’s debt that has touched Rs 1,200 trillion, or 60 percent of GDP. How does PTI plan to sort out this issue is a thorny question that could not be easily answered, especially because of the energy crisis that needs an extended period to fix. Indeed, most of the country’s resources are being drained by government expenditure. PTI would meet this problem by shutting down expensive government mansions and turning palatial buildings into schools, universities and playgrounds. Imran claims to have people who could take tough decisions, but it is going to be a drawn out correction. Is PTI ready to wait for the payback period that might extend to decades perhaps, especially when it has in its cadre those who had the taste of ministries on their palate and might seek to regain them sooner rather than later?
A reasonably balanced analysis. I would agree with the author that introducing a uniform education system for the whole country would be a huge challenge, especially after the 18th amendment has transfered education almost completely to the provinces.
On local govts, I think Musharraf's system was not a bad effort if it had not been used for political engineering or undermined by political expediency. If the same system is reintroduced on party basis, Nazims are elected directly in order to avoid horse trading, local govts are given some fiscal space to collect their own taxes, and public safety commissions are created as per the original proposal for police reforms announced in 2002, we can expect much better results. Even in its somewhat flawd form, local govts did bring positive results in many districts. The real problem is the hostility of the political class to the idea of local govts, becausZe no MNA or MPA wants to see hundreds of union councilers in his constituency.
Rome's (of the Roman empire) Cicero's (106 - 43 BC) philosophy is still valid even today, for almost any country of our globe:
The poor: work and work, The rich: exploit the poor, The soldier: protects both, The taxpayer: pays for all three, The wanderer: rests for all four, The drunk: drinks for all five, The banker: robs all six, The lawyer: misleads all seven, The doctor: kills all eight, The undertaker: buries all nine, The Politician: lives happily on the account of all ten.Not far from the truth even today !! AND I will try PTI this time!!!!
Ali,
your analysis and criticism is low-key well-worded and balanced. While the economic vision that has been presented is far from perfect -- and perhaps not even do-able -- it is a good stab at the issues. Anything less ambitious would have been criticised; since the vision is very ambitious it is being criticized as well.
Let us leave out superlatives like "eliminate", "wipe out" and "end forever" all our social and economic ills. No one can do that -- perhaps not even in a generation.
If the PTI could even just move the country along the right lines and point the economic vaiables in the right direction, it would be an accomplishment. Get inflation down, get deficits and debt down to more sustainable levels, get growth up, and so on. It certainly would be an improvement over the present state of affairs where no one seems to be minding the shop, the economy is adrift with a high probability of going off-the-cliff in the not too distant future.
GOOD MOVE BY PTI.... now its the responsiblity of the media to ask the other parties about their economy policies?????????? do they have any plan for a common man???? as they only focus on their own pockets whenever they come in power....THE FATE OF OUR NATION....
@Mirza ... The PTI document clearly states that they will reduce non-developmental government expenditure by reducing the exceptionally high number of ministries this PPP government has created. That alone should be enough to fund those projects!!!
Need further information, please go through the documents before you start bashing them.
I am not an economist but I strongly believe that if one is honest and committed to bring a positive change, then nothing is impossible. Examples: Churchill, Abdullah of Turkey, Qaboos of Oman........... and so on!!!
This is very good analysis. This kind of analysis gives guidance to policy makers to add more points and polish the existing document. I have read the rubbish which got nothing but questions. "How", "How". This is pity in pakistan media that if you are against any body/party then you don't think before writing against him.
Defense and debt payment are more than 50% of our budget. Mush included army perks in the civilian budget from defense. The debt payment is not going to change and only increase. In order to spend more money on healthcare, education, electricity and civic needs one needs revenues and where would PTI make the cuts? Unless there is dramatic increase in revenue or big cuts in expenses no party can even maintain the budget at the current level let alone spending more for public.
Finally a fair analysis of PTI's economic plan instead of a demolition job.
Agri tax on 100 ace plus farmers if they are able to do that they have my support because we do need to broaden the direct taxation base
Msuharrafs system was the same but don't like any tuning with musharrafs tag on it do we@shakir:
I'm really curious to know what the educational policy of PTI is. "Pakistan will have one educational system for all", this statement without any further supporting details seems extremely premature and rudimentary. Since, education is the only way forward for Pakistan, such an undeveloped statement does not exactly inspire confidence in their ability and reeks of unpreparedness on part of PTI. The current Pakistani educational curriculum and system is utter garbage. With so much focus on rote learning, thinking critically is challenging for most Pakistani students. This makes our students and eventually workforce incompetent compared to global standards. Pakistani education system needs so many reforms that you might as well tear off this system to shreds and start anew. If the educational system is not up to the par and standard then I'm not ready to accept it and PTI loses my vote.
@author. A very balanced analysis. Just a few ideas on the concerns raised in the article. Firstly, the allotment of plots to bureaucrats and generals. I believe the issue has already been raised by PTI as part of the plan. Of course, the precise specifics will come about at the time of implementation. As far as your question on homogeneity of education is concerned, you are quite correct to question how will such a mammoth task be accomplished. PTI's education policy is due in few weeks, so let's see what they come up with. Lastly, you mentioned a bit about setting minimum wages for workers in agricultural sector. I think that in an under-documented economic structure with a lot of loopholes in law implementation, a better idea might be to create conditions for equalization of opportunities through better access to market alternatives and improved productivity rates rather than imposing constraints on inputs of wages. Example of e-Choupal in India is a related example to consider.
Please somebody tell PTI's steel necks that 70% of Pakistanis live in villages and small towns. With this economic policy, they will not get any support from rural Pakistan.
"draw inspiration from Ibn Khaldun" ROFL
Just post this on another article. It is good to criticize as there is always room for improvement and any plan will obsolete with in a year or two as things change fast in economic term. However, we see sincerity and commitment behind it that is unique. PPP and PML with all its good plans has no intention to make change happen. It is people of Pakistan who has to decide between sincere Imran Khan or corrupt and vision-less leadership of other parties. I am talking it based on previous track record of Khan and his commitment to the nation building, and I believe I don't need to explain his commitment.
im the dim has a economic strategy?
Well done, there is atleast one party in Pakistan exists now who have made their own policies before cming into power. They are fully committed and excited to work for Pakistani nation. Pakistan will win this time through PI inha allah.