There are five forms of instability that are now feeding off one another to push Pakistan into the vortex of a gathering storm. First, extremist militant organisations have acquired the ideological influence and military capability to threaten not only Pakistan’s fledgling democracy but the existence of the state itself.
Second, the financial fragility of the economy is symptomatic of key structural constraints to achieving a sustained, high GDP growth: a low domestic savings rate and failure to achieve export diversification that could enable growth of export earnings sufficient to finance the import requirements of a high GDP growth path. These structural problems lead to an unstable GDP growth; they induce continued aid dependence, recurrent balance of payments pressures and a serious lack of fiscal space.
At a more fundamental level, Pakistan’s poor economic performance is rooted in a rent-based institutional framework, which prevents both, a sustained as well as an equitable economic growth process. Consequently, there is persistent mass poverty and high levels of unemployment in a rapidly growing and young labour force. At the same time, the fiscal pressures and governance weaknesses render the government incapable of providing adequate electricity or the provision of the minimum basic services necessary for civilised human existence to a large proportion of the population. These deprivations, combined with widespread corruption and the endemic inequality of incomes, assets and economic opportunities, creates growing resentment amongst large sections of the population. The failure of the government to address these issues — and instead the proclivity for providing an opulent lifestyle for the upper crust of the state apparatus — fuels extremism.
Third, the military has historically played an important role in foreign policy, security policy, public sector resource allocation and has even influenced the political process as the recent Asghar Khan case disclosures have shown. This is divergent from the Constitution, which stipulates the subordination of the military to elected civilian authority. The predominance of the military in the actual practice of the government has been a major factor in instability, with recurrent coup d’etats and a constant nurturing of extremist groups as ‘strategic assets’ in the pursuit of national security.
Fourth, there are growing regional inequalities and the tendency to respond to the consequent political expression of grievances in the backward regions, with military force. This tends to place pressures on the federal structure and leads to the rise of regional nationalisms such as in Balochistan.
Fifth, there is a tendency in the elements of the state, as well as society, to use self-serving fantasies and conspiracy theories in assessing the domestic and international situation. There is lack of an objective evaluation of where national power is to be projected; the place of Pakistan in the world; the fragility of the economy; the magnitude of the threat posed by the extremists and the dangers of ambivalence towards them.
The path to stability involves understanding each of these five forms of instability and their dynamics in the domestic and international arenas. Achieving stability will require building a combination of forces in the social, political and state spheres that can seriously address the challenges that confront Pakistan.
Published in The Express Tribune, November 5th, 2012.
COMMENTS (16)
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@Lala Gee: What the author wanted to convey is that we are not successful in exporting honour, acid, blasphemy, jirga and sectarian killings to Western countries.
@ahmed41: Well whatever they had was reset to zero during world war 2 so they more or less started at the same time as we did. S.Korea, India and China were no where 20 years ago. Pakistan still has average life standard better than India. No one is expected to sit home relaxed and earn. People have to work harder and think smarter in order to earn. Those who don't are not living a good standard life even in USA and UK.
@A.M.Khan:
Strong and persistent economic is what one wants. But, the index called GDP ignores the poverty of the have-nots. Remember it took a long long time for the countries you quote to become prosperous societies. They paid the price for all that.
South Asia needs a similar economic and social phase of growth; but lets not deliberately ignore those at the lower rungs of the prosperity ladder.
@gp65:
"------ My hope is that if Indian high growth persists for another decade, we will also see similar results in India.__"
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You right, Indian growth needs to be HIGH for about 15 years . It is not this GROWTH that that dismays me. Its welcome. However those who benefit from the growth in the economy, seem to forget the have-nots.
When you have as little as the have-nots, then the battle for the growth of that section of our society should be a social responsibility. But what one sees is increased marginalization.
If the poorer segment of our people can not afford, food, health, hygiene and education, then it is an unjust set up ; because they have no way to get out of the rut of abject impoverishment.
@ahmed41 You have stated a truth: higher GDP is indicative of a greater proportion of the economy being controlled by those whose participation in it is greater. Those at the bottom of the income pyramid will grow at a rate less than those at the top. But you haven't completed your picture, and left behind the implication that zero growth is best for those at the bottom. Since you cannot possibly believe that, obviously you have missed something vital viz. the higher the GDP growth, the higher is the elevation of the lower-most, in absolute terms. That seems to be what makes the difference between dissatisfaction and desperation for those at the bottom. If you find low GDP growth intellectually unsatisfying, and the rising income disparity of high GDP growth morally repulsive, all one can say is: Welcome to the Club! We don't have an answer, either. As consolation, however, you may find entertainment by observing the verbal contortions of our politicians and economists in India as they seek to fool all the people all the time on this dismal dilemma. But you have raised an unsolved issue that must never be forgotten, and we should all be grateful for that.
@ahmed41: That's not true for Sweden, Denmark, Germany, Holland, Finland, Norway and many others. I don't know any other way of getting life standard high without a strong economical growth.
@ahmed41: Sure, why don't you ask Thai, Korean, Singaporeans Malaysians who all had high GDP growth for couple of decades in a row in the 70s and 80s. You can also ask Chinese. who have had high GDP growth in the last 25 years.While the difference betweeen rich and poor may grow (compared to a situation where most people were poor) by and large the number of people in dire poverty drops very significantly. Brazil too used its high growth coupled with well designed and targetted conditional distribution to make a serious dent on poverty. My hope is that if Indian high growth persists for another decade, we will also see similar results in India.
If these five "elements"/"forms" of instability had had external origins, one can imagine the internal strengths of Pakistan being mobilized for the grim fightback that would be necessary. On the other hand, if the origins are internal, and of long standing, the problem would be much more fundamental than indicated by the author. One hopes the author is wrong in his identification of the five "elements"/"forms" of instability, otherwise their seriousness leads to the obvious question: can the solution ever come from within the very country that created such a disaster for itself? My personal apprehension is that, judging from the visible performance of its leaders and institutions, Pakistan's problems are at a qualitatively higher level than its capacity to solve them. Therein lies the kind of external assistance Pakistan needs today, not cash doles.
"------high GDP growth:----"
Ask any citizen of the countries which have a so called high GDP growth and they my opine that a high GDP growth in a globalized economy means that the rich get richer and the poor are marginalized~~~specially the rural masses.
Recently stock market has been all time high and inflation, all time low which indicates that there are certain elements trying to lift up the indicators. Peace is the foundation of all which cannot be achieved without the suppression of religious reactions on issues.
A very thoughtful OpEd holistically identifying the key areas that need attention to turn things around.
@Lala Gee: "“Second, the financial fragility of the economy is symptomatic of key structural constraints to achieving a sustained, high GDP growth: a low domestic savings rate and failure to achieve export diversification that could enable growth of export earnings sufficient to finance the import requirements of a high GDP growth path.“. I am sorry if I didn’t understand because of my own lack of comprehension abilities. Perhaps I am too tired."
The author is highlighting key constraints to financial growth. These are: 1) Low domestic savings rate 2) Lack of geographic and product diversificatio nof Pakistani exports. Pakistan mainly exports textiles and food/animal products. These are low margin items and highly competitive. Also bulk of exports go to the Western countries with whom Pakistan is gradually alienating itself.
IF money does not come from domestic savings or from exports - where will the money come from to pay for import of coal/oil etc. needed to drive your economy? This is what the author is saying.
Essentially this is a good summary of our problems. I believe all articles that deal with our economic situation should start with a DEFINITION of the authors form of DEMOCRACY. That would reduce the article length considerable. Examine the statement '"poor economic performance is rooted in a rent-based institutional framework, which prevents both, a sustained as well as an equitable economic growth process." This invites the question that is this so called "rent based institutional framework" unique to Pakistan? Is it failure to tax the institution properly the problem? Is it the collection of such tax a negative cost benefit exercise? Should we become a Maoist state and nationalize rent generating assets.? etc etc..
@Lala Gee:
You are right - not meant for Extablishment-Fauzis like you - let me translate : Pakistanis donot save enough. Pakistan is also happy just exporting towels. It needs to save much more and also need to look at other goods to sell abroad. If this is done, Pakistan will be able to accumulate more capital (money) to boost GDP and import more stuff. This will improve the country.
If the religious fascists can be controlled the other four points mentioned by you become manageable. Without this everything else remains out of reach.
Very confusing and incoherent writing style. For example read this sentence "Second, the financial fragility of the economy is symptomatic of key structural constraints to achieving a sustained, high GDP growth: a low domestic savings rate and failure to achieve export diversification that could enable growth of export earnings sufficient to finance the import requirements of a high GDP growth path.". I am sorry if I didn't understand because of my own lack of comprehension abilities. Perhaps I am too tired.