Provincial Economic Development: Performance, Challenges, and the Way Forward
January 11, 2014
Khalid Ikram*
1. Introduction
Analyses of economic development in Pakistan have traditionally followed a “top-down” approach. They examine the behavior of macroeconomic indicators for the country as a whole, referring only in a general, even cursory, manner to the trajectories of each province, and even more summarily to the policy issues, constraints, and opportunities that confront the different provinces. The implicit attitude—that it is the federation as a whole rather than the federating units that matter—is so firmly embedded in the official mindset that, even after 65 years of Pakistan’s existence, the authorities do not produce official statistics of province-level gross domestic product (GDP), investment, savings, exports, imports, labor productivity, and other key economic indicators.
2. The Importance of a Province-Level Approach
Why is a province-level approach important? The issue is not merely of academic interest. It is necessary to strengthen studies at the province level, because policies to address questions of employment, poverty, and perceived deprivation, and to improve the delivery of key services are more effective if the perspective is as close to the ground as possible.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/11/2014 08:00:00 AM,
Institutions, Economic Growth, and Participatory Development
Akmal Hussain*
1.
Introduction
This chapter provides a new perspective, located in institutional
economics, on the nature of the structural constraints to achieving sustained
economic growth in Pakistan and overcoming poverty. It argues that the
fundamental factor underlying the failure so far to embark on the process of
sustained economic growth is the economy’s rent-based institutional structure
and associated patron–client-based governance model.
The
institutional structure generates rents for a small coalition of elites by
restricting competition and excluding the majority of people from the process
of saving, investment, and high-wage employment. The consequent narrow base of
economic growth is unequal; it is also incapable of being sustained because of
lack of incentives for competitive efficiency and innovation on one hand and a
low savings rate and export growth on the other. This chapter argues that
sustainable economic growth can be achieved through an institutional change
whereby the process of saving, investment, productivity increase, and income
generation can be broad-based to include the poor and the middle classes.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/11/2014 12:00:00 AM,
Beyond the Poverty Line: A Multidimensional Analysis of Poverty in Pakistan
January 10, 2014
1.
Introduction
The issue of
poverty is both simple and complex: at one level, the implicit or explicit
objective of most economic policymakers in developing countries is to reduce
the levels of poverty in a country; at another level, the tools that should be
used are constantly open to debate. The debate in almost all developing
countries concerns the correct policy mix between those that target economic
growth, which have the potential to reduce poverty as overall income levels
rise, and those policies that target poverty directly, such as social safety
nets or income transfers.
There is
little question that long-term growth reduces poverty, but in a country such as
Pakistan, where growth is sporadic at best, the question that arises is what
can be done to reduce poverty for those who will not benefit from growth for
years or even decades. If we add to this the fact that development has been
devolved to the provinces in Pakistan after the 18th Constitutional Amendment,
the future of poverty alleviation initiatives is quite simple: Either we
explicitly acknowledge that the state is only concerned with economic growth
and wait for growth to reduce poverty—while pursuing intermittent and
idiosyncratic poverty interventions that assist the poor but do little to move
them out of poverty—or we clearly focus the limited resources of the state on
explicitly targeted poverty interventions.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/10/2014 12:00:00 AM,
The Role of the Firm
January 09, 2014
Eric Manes*
1.
Introduction
This chapter on
the Pakistani firm describes the microeconomic factors underpinning economic
growth and wealth creation, focusing on enterprise-level analysis.
Notwithstanding the key role of the firm highlighted in the chapter, data at
the firm level is difficult to obtain and even more problematic to analyze.
While the statistical issues associated with enterprise-level analysis in
Pakistan are beyond the scope of this chapter, it is important to note up front
the various limitations of the firm-level data available and the caveats
stemming from firm-level analysis.
The Census of
Establishments for 2005–07 (Pakistan Bureau of Statistics, 2007), gives a
relatively clear picture of the family of Pakistani firms: many small, locally
focused firms exhibiting varying degrees of formality and market participation,
coexisting with relatively few, large formal firms (often multi-product
conglomerates that account for the bulk of production, exports, and higher-wage
employment). Only 5 percent of a total of almost 3 million establishments
surveyed employed more than five persons at that time. In manufacturing, the
figure is similar at 91 percent of the half-million firms surveyed, with only
1,100 of these establishments reporting employment of over 50 workers.[1]
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/09/2014 12:00:00 AM,
A Growth Vent Anchored in History and Geography
January 08, 2014
Ijaz Nabi*
1.
Introduction
In explaining economic growth, economists invariably turn to analytical
frameworks such as the Harrod-Domar growth model and its many extensions (e.g.,
Solow, 1956). The main drivers of growth in such models are capital, labor, and
more recently, knowledge (Romer, 1990). These models are useful in that they
allow us to separate out growth arising from an increase in capital and labor,
from productivity-led growth associated with the quality of overall economic
management. This separation is useful because it brings into focus the
efficient use of available resources rather than an insatiable quest for
ever-more investment.
Another approach is to look at episodes of rapid and sustained economic
growth and identify the “big ideas” (vents for growth) that have made them
happen. These ideas stimulate, borrowing from Keynes, the “animal spirits” and
result in both higher investment as well as higher productivity growth. The
discussion presented in this chapter takes this approach, arguing that Pakistan
has enjoyed several episodes of rapid economic growth since 1947 that are
associated with changes in technology, institutions, and legal systems that
support the rolling out of a big idea (growth vent). Those growth vents have
run their course. Pakistan now has to seek a growth vent that results in
geographically balanced growth and can thus be sustained politically for a
prolonged period.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/08/2014 12:00:00 AM,
The Opportunities and Pitfalls of Pakistan’s Trade with China and Other Neighbors
January 07, 2014
Naved Hamid* and Sarah Hayat**
1.
Introduction
There is increasing recognition in Pakistan that regional trade could
be an important driver of growth for the country. However, much of this debate
has focused on India–Pakistan trade.[i] While,
undoubtedly, trade with India could give a tremendous boost to Pakistan’s
economy, there are other neighbors with whom trade could be equally important.
We propose to look at this neglected aspect of regional trade and show that
promoting trade with the rest of Pakistan’s neighbors could have a significant
positive impact on the country’s growth over the next decade or more. Trade
with India and trade with the other neighbors are two sides of the same
coin—promoting trade with both would have tremendous synergies. The overall
impact on Pakistan’s economy could well be to raise the trend growth rate for
the next decade or so by 2 to 3 percentage points above the historical trend
growth rate of 5.5 percent per annum.
Section 2
provides a review of the trends in growth in trade, particularly exports in the
last decade. In the next three sections, we discuss trends in exports at the
aggregate and commodity level, as well as the pitfalls, opportunities, and
appropriate policies to promote exports with respect to Pakistan’s three
largest trading partners of its neighboring countries, i.e., China, the United
Arab Emirates (UAE), and Afghanistan. Section 6 briefly reviews the potential
for trade with Central Asia, overland through Afghanistan. Section 7 concludes
the chapter.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/07/2014 03:19:00 PM,
The Prospects for Indo-Pakistan Trade
Hafiz A. Pasha* and Muhammad Imran**
1.
Introduction
Trade between India and Pakistan has been fundamentally influenced by
factors that are not purely economic. At the time of Partition in 1947, both
economies were heavily interdependent, with the share of the Indian market in
Pakistan’s exports at close to one fourth, and over half of Pakistan’s imports
coming from India. Thereafter, bilateral trade has had a chequered history.
Trade virtually ceased after the wars of 1965 and 1971.
Some positive steps have been made since 1995, when India announced its decision
to grant most favored nation (MFN) status to Pakistan, and the latter established
a positive list with respect to imports from India. The signing of the South
Asian Free Trade Agreement (SAFTA) in 2004 was a major step forward in the
eventual establishment of a customs union in the region. Recently, Pakistan
announced its potentially landmark decision to grant MFN status to India by the
end of 2012. In the interim period, a restricted positive list has transitioned
to a negative list, which opens up a large percentage of tariff lines for
imports from India. Further, the two countries have agreed to simplify customs
procedures and facilitate the process of goods certification. India has also
announced that it welcomes investment by resident Pakistanis and companies.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/07/2014 10:21:00 AM,
An Analysis of the Remittances Market in Pakistan
January 06, 2014
1.
Introduction
Remittances to
developing countries sent through official channels were estimated at USD 406
billion in 2012 (World Bank, 2012). This represents a growth of 6.5 percent
over 2011, and is projected to rise by 8 percent in 2013 and 10 percent in
2014. Current remittance flows are over three times the amount of official
development assistance (World Bank, 2012). In Pakistan, remittances through
official channels have grown from just around USD 1.5 billion in 1997/98 to
slightly over USD 13 billion in 2011/12 (State Bank of Pakistan, n.d.; see also
Table 12.1). In the first six months (July–December 2012), they were slightly
over USD 7 billion—an increase of 12 percent over the corresponding period in
the previous year (July–December 2011).
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/06/2014 10:19:00 AM,
Benefiting from Foreign Direct Investment
January 02, 2014
Khalil Hamdani*
1.
Introduction
It is commonly
held that foreign direct investment (FDI) has played an insignificant role in
Pakistan’s economic development.[1] Certainly, the aggregate data supports this view: FDI
inflows have accounted for less than 1 percent of gross domestic product (GDP)
in most of Pakistan’s 60-plus years, and less than 4 percent in the peak year
of 2007 when the country ranked among the 10 largest recipients of FDI in Asia.[2] At the same time, FDI has been more important in
Pakistan than in India: annual inflows have been larger in most years from 1947
to 1993, and even now, while our larger neighbor receives four times more inflows,
the share of FDI in capital formation is three times as large in Pakistan. Such
comparison, while superficial, suggests the relevance of FDI.
This chapter considers
the role that FDI can play in moving the economy forward by improving its technological
base and placing production on a more dynamic growth path, as other countries
have done with great success. It begins with a brief history to remind readers
that Pakistan’s economy has always been open to foreign investment, even in the
heyday of nationalization. Next, it looks at the particular type of investment
and technological profile that has evolved: weighty, but largely insular,
statist, and low on competiveness. Finally, the chapter assesses the potential
for a more ambitious industrial trajectory: private sector-led, fueled by FDI,
and supported by policies and institutions that encourage technological
deepening.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/02/2014 04:25:00 PM,
Economic Governance and Institutional Reforms
1.
Theoretical and
Empirical Insights
The link between
good governance and economic and social development has been well established
in the last few decades. There is a wide consensus that good governance must
lead to broad-based, inclusive economic growth and social development. It must
enable the state, civil society, and the private sector to enhance the
wellbeing of a large segment of the population. Economic policies, however
sound or benign, cannot disperse their gains widely unless the institutions
intermediating these policies are strong, efficient, and effective.
There is no precise definition of governance but a number of attempts
have been made to define it. According to the World Bank (1992), governance
refers to the manner in which public officials and institutions acquire and
exercise the authority to shape public policy and provide public goods and
services. Institutions establish formal and informal rules that determine
whether the public sector acts in its own interests or on behalf of all
citizens. Corruption is one outcome of poor governance involving the abuse of
public office for private gain. The World Bank’s (2012a) Governance and
Anticorruption Strategy of 2012 surmises that governance is about what the
state can do and how it does it—what the state can do is determined by its
capacity, legitimacy, and authority:
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/02/2014 04:21:00 PM,
Pakistan’s Indus Basin Water Strategy: Past, Present, and Future
January 01, 2014
1.
Introduction
Pakistan’s Indus
Basin Irrigation System (IBIS) is the strong heart of the country’s economy.
Its creation is a tribute to the British irrigation engineers who created the
original system (1847–1947) that Pakistan inherited in 1947, and to the
Pakistani irrigation engineers and institutions (particularly the Water and
Power Development Authority [WAPDA] and the provincial irrigation departments)
who have spent the last 60 years adding new dams and barrages, building new
link and branch canals, and modernizing and maintaining the world’s most
complex and extensive irrigation system. From the 1950s onward, the IBIS has
also been the product of the generosity and intellectual input of a host of
international experts and international institutions, particularly the World
Bank. This chapter starts with a review of what has been accomplished in order
to put the IBIS into perspective and illustrate the magnitude of the effort put
into building the present system. The chapter’s aim is to sketch the task ahead
and develop a coherent national strategy for the preservation of the IBIS for
the future.
2.
The Indus Basin:
The First Decade 1947–57
The Revelle
Report commissioned by President Kennedy following a request from President
Ayub Khan in 1961 provides a fascinating look at Pakistan in this period. It
paints a West Pakistan of 43 million people, malnourished and desperately poor
with an average income of less than 20 cents/day, and an average life span of
less than 45 years, with a 10 percent rate of literacy—“industrious, frugal,
progressive … their watchword: ‘our sons will have it better’” (US Department
of the Interior, Panel on Waterlogging and Salinity in West Pakistan, 1964, p.
35).
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/01/2014 04:17:00 PM,
Can the New Intergovernmental Structure Work in Pakistan? Learning From China
December 27, 2013
1.
Introduction
The 18th
Amendment to the 1973 Constitution of Pakistan disentangles overlapping
spending responsibilities between the federation and provinces in a wide range
of functions, devolving them to the latter. The legislation was also a reaction
to relatively poor service delivery and living standards that had fallen continuously
behind those in other countries in South Asia, and, indeed, are now lower than
sub-Saharan Africa in most respects.
The Musharraf
government had used this argument for its own decentralization
effort—delegating power to the districts and bypassing the political centers of
power in the provinces. The 18th Amendment reasserts the provinces’ power
and the associated political centers of power. It is designed to weaken the
center, and correspondingly make it less attractive for the military to assume
power by moving against an elected Prime Minister, as it has done periodically
in Pakistan’s history.
But will this
major reform work effectively and ensure higher living standards for all people
in all the provinces? To what extent is the need for a national identity
important in ensuring that the decentralization does not cause the federation
to unravel or the overall delivery of public services to deteriorate and lead
to greater exclusion of the poor? These are important issues and could well
determine the fate of the 18th Amendment as well as social stability
in Pakistan.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 12/27/2013 11:39:00 AM,
The Future Path of Tax Reforms in Pakistan
1.
Introduction
Pakistan’s
taxation system has come under intense scrutiny in recent years. The country’s
low and declining revenue yield has been attributed to wide-ranging concessions
and exemptions, large-scale tax evasion, and a slack and corrupt tax
administration. This has led to the perception of a virtual breakdown of tax
compliance in the country.
Improving the
tax effort has now become the lynchpin of any future economic reform process.
Experience shows that this will require political determination in order to overcome
the resistance from powerful vested interests. In addition, tax collecting
agencies such as the Federal Board of Revenue (FBR), will need to undergo
fundamental improvements to successfully implement the required changes in tax
policy.
The objective
of this chapter is to describe Pakistan’s taxation system both at the federal
and provincial levels, followed by an in-depth diagnosis of the factors
contributing to the exceptionally low tax-to-GDP ratio. We also assess the
level of tax rates, the magnitude of tax expenditures (revenue losses due to
concessions and exemptions in the tax code), and the extent of tax evasion.
Based on this
diagnosis, we identify the key elements of a reform package in the areas of tax
policy and administration. This set of reforms will promote transparency of the
tax system, improve the progressivity of the tax burden, and remove distortions
in the allocation of resources in the economy. Importantly, the various
measures proposed will help in significantly raising the tax-to GDP ratio.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 12/27/2013 11:29:00 AM,
Beyond the Poverty Line: A Multidimensional Analysis of Poverty in Pakistan
December 25, 2013
Azam Chaudhry*, Theresa Chaudhry**, Muhammad Haseeb***, and Uzma Afzal****
1. Introduction
The issue of poverty is both simple and complex: at one level, the implicit or explicit objective of most economic policymakers in developing countries is to reduce the levels of poverty in a country; at another level, the tools that should be used are constantly open to debate. The debate in almost all developing countries concerns the correct policy mix between those that target economic growth, which have the potential to reduce poverty as overall income levels rise, and those policies that target poverty directly, such as social safety nets or income transfers.
There is little question that long-term growth reduces poverty, but in a country such as Pakistan, where growth is sporadic at best, the question that arises is what can be done to reduce poverty for those who will not benefit from growth for years or even decades. If we add to this the fact that development has been devolved to the provinces in Pakistan after the 18th Constitutional Amendment, the future of poverty alleviation initiatives is quite simple: Either we explicitly acknowledge that the state is only concerned with economic growth and wait for growth to reduce poverty—while pursuing intermittent and idiosyncratic poverty interventions that assist the poor but do little to move them out of poverty—or we clearly focus the limited resources of the state on explicitly targeted poverty interventions.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 12/25/2013 05:52:00 PM,
Exports: Lessons from the Past and the Way Forward
December 18, 2013
Hamna Ahmed*, Naved Hamid**, and Mahreen Mahmud***
1. Introduction
The idea that trade is important for economic growth dates back to the nineteenth century when classical economists such as Adam Smith, David Ricardo and John Stuart Mill advocated the favorable effects of international trade on output. Since then, a rich body of theoretical and empirical literature has evolved with regard to the role of trade in growth and development. Initially, post-Second World War, development economists viewed trade as a negative factor in developing countries’ industrialization objectives, and from the 1950s through the early 1970s most newly independent countries adopted an import-substitution industrialization (ISI) strategy. By the mid-1970s, however, there was growing disenchantment among development economists concerning ISI and in favor of the export-led growth strategy that several East Asian countries had successfully adopted. Subsequently, this was formalized in what is referred to as the Washington consensus: generally described as an outward-oriented development (OOD) strategy, it has since been adopted by most developing countries.
According to proponents of the OOD strategy, outward orientation can promote economic growth through three main channels. The first is trade, which enables firms (at the micro-level) and countries (at the macro-level) to gain through specialization and economies of scale. This is because increased competition results in the least efficient producers being driven out of the market, while the most efficient producers expand their market share, thus raising aggregate productivity through the reallocation of resources (Tyler, 1981; Melitz, 2003). The second is exports, which serve as the primary source of foreign exchange needed to purchase imported inputs such as raw material and machinery and, more broadly, to help ease the balance of payments constraint (Faridi, 2012). The third channel involves trade as an important source of knowledge and technology transfer, with the potential to encourage innovative activity—such as research and development, and the introduction of new products and processes—by increasing the returns on innovation as exporters have access to a larger market than nonexporters.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 12/18/2013 11:51:00 AM,
Tackling the Energy Crisis
December 16, 2013
Afia Malik*
1. Introduction
This chapter aims to discuss the crisis of the power sector in Pakistan—its origin and challenges—and, most importantly, to suggest strategies and possible solutions for coping with it. A sufficient energy supply is indispensible for all economic activity and for ensuring sustainable economic growth and development. Regrettably, Pakistan’s power sector is beset by a crisis with the demand–supply gap growing continuously to unmanageable proportions. The electric power deficit has crossed the 5,000 MW level many times during 2011 and 2012; in the second week of June 2012, this shortfall had surpassed 8,000 MW.
The main reason for this growing gap is not only the rising demand and high system losses, but also the declining generation capacity. Seasonal reductions in the availability of hydropower, reductions in indigenous gas resources, the country’s heavy reliance on imported fuel oil for power generation, and forced power outages due to capacity degradation or scheduled outages for the maintenance of existing power plants are all responsible for the declining generation capacity. The unavailability of oil—given the economy’s mounting circular debt as the government fails to adjust energy prices to reflect supply cost—has only accentuated the energy crisis.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 12/16/2013 04:28:00 PM,
A Country and an Economy in Transition
Shahid Javed Burki*
1. Introduction
The main thrust of this chapter is that Pakistan is finally in a position to move forward and set its economy not only on the path to recovery, but on a trajectory that will ensure high levels of sustainable growth. This could happen since some of structural problems that have dogged the political system since its creation seem to be nearing resolution. Since there is a close connection between political and economic developments, this advance in the former will have positive meaning for the latter. Pakistan may well be on its way to developing a new way of managing its affairs—meaning the way in which the political system is run, how the economy is managed, and how social interactions take place among different segments of the population. With the adoption of an appropriate set of public policies, it may also be possible to pull the economy out of the deep slump into which it has fallen and achieve a much higher rate of gross domestic product (GDP) growth.
This way of thinking about the future seems much too optimistic for a time that brings grim news every day—of an economy that is not able to move out of the slow growth groove in which it has been stuck since 2007; of national bankruptcy believed to be just around the corner; and of a country increasingly isolated in a world that is busy reorganizing itself. The GDP growth rate has been on a declining trend since the 1965 war with India. For the last six years, the average rate of growth has been just slightly more than 3 percent a year—only one percentage point above the estimated yearly increase in population.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 12/16/2013 12:00:00 AM,
Economic Management under Musharraf and Coalition Rule: Key Lessons for Sustainable Growth
December 12, 2013
Rashid Amjad*
1. Introduction
Over the last 65 years, the Pakistan economy has displayed considerable resilience as it has moved through recurring economic cycles of high economic growth followed by prolonged spells of low growth. Its average economic growth of around 5 percent during this period would be considered respectable by most developing countries’ standards, even though this performance is now clearly overshadowed by the stellar growth rates achieved since the 1980s, first by the East Asian economies, followed by China, and then till recently by India.
Is there a limit to the strain that even a reputedly resilient economy can bear? After being mired in deep stagflation for the last five years (2009–13), there is a growing despondency that the Rubicon may well have been crossed. Breaking out of the current recession will need firm and resolute policy action and a commitment to deep economic reforms. The time to resort to easier options such as external financial support as a means to procrastinate on essential economic reforms has now passed. Neither is external assistance going to be so easily forthcoming after the country’s dismal record of reneging on promised reforms, nor for that matter will it be sufficient. The problem is now much more deep-rooted and structural. It is no longer business as usual to rekindle sustained growth.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 12/12/2013 02:20:00 PM,
Failed Economic Promise: Lessons from Pakistan’s Development Experience
December 11, 2013
Parvez Hasan*
1. Introduction
Pakistan has had a checkered economic and political history. The country’s periods of rapid growth in the 1960s, the first half of the 1980s, and 2002–07, have been followed by periods of sharp economic slowdowns. Sustained economic growth has been elusive; there has been no real deepening of the structure of the economy, and social and distribution issues have become increasingly troublesome. Yet Pakistan has somehow managed to attain an annual average gross domestic product (GDP) growth rate of 5.2 percent and a per capita income growth rate of 2.5 percent over the last half-century (1960–2010) that has more than trebled the average living standard over the period.
The distribution of gains from growth has, undoubtedly, not been equitable. However, the country’s economic record, though of course not able to match that of East Asia—especially China, and more recently India—seems to compare favorably with the average for developing countries. This is no mean achievement considering the great deal of political instability and long periods of military rule that entailed relatively good governance but a high cost in terms of defense spending, continued tension with India, and weakening institutional authority.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 12/11/2013 02:23:00 PM,
Pakistan: Moving the Economy Forward
Rashid Amjad and Shahid Javed Burki
When we, the two editors of this volume, joined a group of South Asian economic experts at a meeting held in Kathmandu, Nepal, in the summer of 2011, there was much discussion on the economic gains to be made if the South Asian countries could work together. We discussed how the differences in the endowments and advantages of these countries could be aggregated and used for the benefit of the entire citizenry. “Connectivity” was another subject of great interest.
In meetings such as these, there is as much talk around the table as off it. The Kathmandu meeting was no exception. Several of us spent a few evenings together reflecting on how the possibility for achieving the regional goal could be realized in South Asia. In our discussion, we were struck by one thing: there was a great deal of hope expressed by the representatives from Bangladesh, India, and Sri Lanka about their countries and how they could contribute to regional integration and South Asian development. Even the Bhutanese and Nepalese at the meeting thought that their most significant difficulties were behind them. It was only the Pakistani group that displayed some diffidence. It was at some point in this discussion that we began to ask whether Pakistan had been dealt such a poor hand that it could not sit at the table with hope and play the game the other South Asian nations were eager to join. It was then that the idea of assembling a book of essays on Pakistan’s future was born.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 12/11/2013 01:46:00 PM,
City Campus
104 - C, Gulberg III,
Lahore, Pakistan.
Phones: 92-42-35714936, 38474385
Fax: 92-42-36560905
Main Campus
Intersection Main Boulevard Phase VI
Burki Road
Lahore, Pakistan.
Phones: 37254099, 37254311
