With raising economy and governments modern ‘public-friendly’ budgets, Bengaluru was looked upon as the land of “achievers” with the early influx of Technology companies Bengaluru slowly made its mark on the world map and then there was no looking back for the city, one after other companies made their grand entry into “Namma” Bengaluru” and with that began the raise of Support and service companies. From Hostels to PG’s educational institutions to private coaching centres, canteens to hotels Bengaluru slowly began to grow. People realised that the city had enough money to be exploited, with more number of inhabitants Bengaluru’s tourism department rose to glory. Private transports were now more, auto rickshaws were the only king on the roads; communication, be it public or private increased, cell phones slowly became a part of every one’ life et all. It was a new wave and Bengaluru was not too slow to catch this wave, Bengaluru had something in store for every one.

With increasing number of workaholics Bengaluru’s attention slowly shifted towards entertainment industry, Pubs, week end bars, disco’s night clubs made their way in-between the hectic schedule of Bengaluru, week ends were more glorified and Saturday night fever was spread all over. Alcohol was easily available and Dj’s were introduced to get that extra kick. Bengaluru wore a modern outfit and the hand of Law was too short to control or cut down on any un-wanted activities. 24/7 restaurants were introduced, the menu card now had more than our ‘Masala dosa’s’, ‘idli’s’ burgers were the need of the hour and pizza was the staple food. Bengaluru was a new platform for all restaurants and food chains to make their mark in business, people of Bengaluru with diverse backgrounds welcomed any food of any kind of any rate.

Bengaluru even acted as a host to many other artistic fields like theatre, painting, and music. With hectic schedules and boring week ends always at pubs people now wanted something different, something artistic and thus the “Art life of Bengaluru” was started. Theatre made its early mark with some major theatre groups camping permanently in Bengaluru, music was part and parcel of every Bengalurian, the city gave innumerable opportunities to young talents to showcase their creativity and grow to new heights. Bengaluru accepted every play with warm heart, every painting with caring eyes and every music with encouraging ears, Bengaluru also became a destination for artistic people and very aptly called “the arts paradise”

Call it a boon or bane, Bengaluru has given every body its piece of success, people have walked in made merry and walked out but the city as such has been kind enough to accommodate any one of any kind anytime. Life at Bengaluru never stops; the city never sleeps and success is always in store for you in Bengaluru.

The idea stems from an interesting piece written by Nadeem Chauhan of Navitus Consultancy, who argues that managers need to use better vocabulary to excite, energize and bring out the best from their team members. For instance, while drawing a list of monthly assignments and projects for a team, a manager may use the phrase ‘a must do’ on each project, in his preach to advance the monthly objectives to be attained. However, in practice only some of the projects are really categorized as ‘a must do’ and others as ‘probable’s’. Therefore, if the manager is unable to effectively communicate this distinction, his team may not be able to differentiate between a specific ‘must’ based assignment relative to the ‘probable’, hence will not be able to effectively allot it’s energy, time, resources, mental and physical wealth to each project relative to priority, leading to sub-optimal results.

Let me consider the case of governance to illustrate the point further. The concept of accountability is excessively used in governance practice. However, the definition is overtly vague. What is a leader accountable for? A set of scientific or quantifiable objectives and goals which can be measured such as growth rates etc? or a set of moral objectives such as no cheating, allocative efficiency, equal opportunities etc? which although measurably, are an under-rated subset of the broader definition. Although most will argue for both, it is important to note, that one can be achieved at the expense of the other, hazing the true stance of accountability- its interpretation and subsequent policy action. For instance, productive efficiency (production of a quantity at the lowest cost possible- given the current structure of activity) which may be vital for growth can be achieved at the expense of allocative efficiency (producing with respect to the needs of the people). On the other hand, allocative efficiency may enhance accountability from a moral portfolio, but may undermine growth rates, that is, for example, if the need is health care for the elderly, hence may not have a positive impact on economic growth. However, the pursuit of one instead of the other will fulfil one objective (growth vs allocative efficiency or even both) at the expense of the other, therefore on the whole, how is one doing in the overall level of accountability to responsibility. Confused?

Assume that the year-end objective of a minister is to attain growth (where sustainable growth is a secondary objective- due to various political reasons), based on grounds of economic efficiency, which may subsequently have a positive impact on reducing poverty- hence equity aswell, as shown by some empirical literature in the field (between economic growth and poverty).

In such a case, a regime although low on scores of accountability to responsibility (measured through the moral definition) can still have a positive accountability evaluation based on quantifiable objectives. For instance, Vietnam lacks the existence of an appropriate judicial system, however, it continues to bag unprecedented rates of economic growth (Dani Rodrik, 2008). Similarly, as shown by evidence from India, Cambodia, China and Pakistan, governments have attained high level of economic growth under severe periods of low morally defined accountability-corruption (Anjum Altaf, 2005). Therefore, although our hindsight focuses on moral factors associated with accountability, policy in practice addresses (increasingly) accountability against a set of scientifically quantified and set objectives.

For instance, it is argued that devolved tiers of governments will be captured by the local elites; hence may lack accountability, and resources would be unevenly distributed, subsequently leading to lower levels of economic efficiency and growth (Pudhomme, 1995). However, this may not neccessarily be the case, as local governments, even if allocatively inefficient, can be productively efficient (based on existing structure and fragmentation of resources), hence greater economic growth. This is because, even if resources may be un-equally distributed among the population and may not serve the interest of the larger population, in other words be captured by the few elite, positive growth rates can be attained. For instance, assume that the elite is an industrialist ‘lot’, interested in doubling and tripling it’s income, as argued by Max Weber, who drew the link between the protestant church and industrialisation driven by their core belief of accumulating greater wealth to secure a place in heaven, hence such underlying incentives will lead to a lack of allocative efficiency but greater productive efficiency hence subsequent economic growth. Therefore, although a government may have low levels of accountability from the allocative and moral definition of term, it can still lead to economic growth measured through scientific data, fulfilling the other half of the terminology. Hence, what is the true basis of accountability- a broadly defined term, with competing objectives?

Until and unless moral factors are given quantification through scientific measures, or a distinguishing term in economic analysis, rather than taped under the broad breed of accountability and ‘justice’ driven policy (as generally used on the floor- exceptions apart in some academic debates), the policy apparatus will not precisely hit the ‘nail on the head’. This is due to the vagueness in measurement and globalising nature of our surroundings, leading to the rising importance of growth rates in the international arena rather than effective domestic distributional arrangements and optimising the target population welfare especially in the lagging and striding countries where such disparity is optimised.

Although moral and scientific measures of accountability together are vital for sustainable growth, as it needs to be based on set of generative and evolving institutional incentives (for a later date), growth in it-self can be based on the presence of either one. Therefore, given the hype to attain growth and achieve short term dividends in the foreseeable future, morally defined objectives may be noted as a second-best priority in the umbrella of accountability for developing country leaders, especially as we are re-visiting the age of cross border networks, competitive mentality and knowledge driven bonding- therefore the hype to succeed and be counted given the high stakes.

Therefore, until we disaggregate the definition through effective and precise vocabulary, drawing independence and subsequent respect for the objective and term (sounds extremely sensationalized- I know), there will be a wedge between our hindsight and what our policy sets out to achieve. Hence, the real problem will remain unsolved. In other words, language and vocabulary are one of the most under-rated, yet key ingredients to attaining optimal results, drawing clarity in understanding which is vital for subsequent remedy, which in the current age of globalisation are being exposed to their prime where language harmonization yet differentiation is at competing crosswords (given the rising importance of English as a language, yet its underdeveloped form of practice, understanding and interpretation world over), leading to the development of a bridge between ideology and practice.

The discussion drew from a class room debate of what is a government really accountable for? And what if, one branch comes at the expense of the other?

I realize that is the idea, but does it really work?

This article drew my interest given what I feel is the basic policy dilemma which is based on replicating policy from one end of the world and applying it to the other, which has rarely ever worked and is ‘time-and-again’ supported through evidence from different parts of the world. In other words, the policy apparatus needs to focus on the context of application to have any desired consequence, rather than what we may perceive as an imported ‘best practice’.

There are various parts of the article which can be discussed and debated, but I would just like to draw light on a few aspects.

He notes, the importance of monetary and fiscal measures- as rightly so- however, such tools in isolation are an under nourishing application to run a domestic economy plagued with bottlenecks at various junctions (some traditional and some created) with varied tiers of economic and social classification, thoughts and outlook with different views and perception about world reality and the unfolding diagnostics (not to say that any society is homogeneous for that matter- but I hope u can understanding the startling difference- measured through social, economic and political inequality in our region of analysis).

Countries such as India or Pakistan, like any other developing nations (especially who rule from a distance- given the large population base and link to society) have much more to consider, given the bottlenecks (some identified and mostly unidentified) prevalent in their economies as a result of the social and philosophical system we live in (and I don’t mean that in a negative sense- I am emphasizing on the need for appropriate identification, causality, policy and application in context to the four mentioned factors to have any significant bearing).

For instance, the sensitivity (impact) of interest rates will be not even be close (in the developing world) to what impact such a policy may have in the developed world, given the large proportion of the population with little or without access to bank dependent facilities (less than ¼ in the developing world) and they are the ones most hurt by inflation. Further, there exists a culture in many traditional societies to hold saving in physical assets rather than bank deposits etc, hence the impact is further handicapped. In addition, interest rates may not have the associated cost of doing business or buying a new house in these countries at least not outside the urban land (not in terms of depth at least) relative to what it may have in the developed world, as most people in the given strata rely on the informal economy for such forms of funding, given their minimal access. There are further inter-relations to the dynamic- but long story short- the influence, trickle and outcome it is far more complicated than it may seem.

Further, there are societal bottlenecks, created by thinking and stereotype, the law of the land, society hierarchies, which may lead to absorption of profits at the margin etc. Corruption, rent seeking and other realities may further add to budgetary and inflationary problems.

Therefore, Yes- neoclassical economics has a lot to teach us, but more in terms of opening our mind, rather than directing an appropriated policy (in our environment) – at least in the current day reality or otherwise inflation over and above the desired level will not be controllable as obvious today. It is important to note that state policy is generally justified and targeted to curb market failures; however in most developing countries identifying specific market failures may be nearly impossible, given its lack of rarity and mostly a rampant feature of the landscape (Hausmann et al, 2007).

Inflation is a result of bottlenecks (at least the blotted version) and once those factors are addressed can other conventional demand side issues come into any significance, which if anything are aggravated by these bottlenecks (‘soft’- social, mental etc- and ‘hard’- agricultural, budgetary, foreign exchange and more).

Further, aggregate supply does not undertake a linear or quadratic shape, it has a polynomial bearing with a jittery face in the specific environment, hence would not have the outward moving consequent and hopeful result with aggregate demand as noted in the article (at least not in the simple sense) as such would only be possible in perfect or close to perfect markets, which don’t exist in the real world- at least not in the developing world. Therefore, context is important when applying and subsequently assessing the impact of policy in the real world.

So, how does the control on inflation work? There are two measures to control inflation – monetary and fiscal. Monetary measures include expansion and contraction of money while fiscal measures deal with the government’s policy related to expenditures and taxes. Let us talk about the fiscal measures first.

India exports the commodities in which it has a comparative advantage (incentives provided to the country by the means of opportunity costs), like tea, coffee, iron-ore and other such products., Similarly India will import commodities from other countries which have a lower cost of production. Imports slash down the prices of the commodities in the domestic market as similar goods are produced at a higher cost within the country, providing the consumers a surplus. India imports nearly all the essential commodities like edible oil, food grains etc. from other countries.

An increase in prices in one country leads to an increase in prices in other countries as well, by the tool of exports and imports. This kind of situation is often described as ‘exported inflation’, assuming that the currency rate does not change. Likewise, India is also experiencing the same, a condition very common for the countries importing essential commodities. Encouraging imports and discouraging exports shifts the aggregate demand of the commodities towards the right, which means that the aggregate demand rises with an increase in imports. We know that India is producing below its capacity and there exists a lot of unemployment. Therefore, an increase in aggregate demand increases employment more than increase in prices. Our Finance Minister is concerned with encouraging imports and curbing exports, which also leads to currency depreciation. That is why he made the statement that he is likely to trade off economic growth in order to make the essential commodities available to the society; kudos to him for making a wise decision.

Now let us come to the monetary measures. Monetary measures are regulated by the Reserve Bank of India or the RBI. Each day, RBI buys US currency to maintain a desired level of the currency rate. The forces of demand and supply determine the currency rate. An increase in demand for a currency increases its price; the currency is tradable at a higher rate. Various factors are responsible for the change in currency rates like future expectations, interest rates for the investments, domestic prices etc.
There are three types of interest rates by the means of which the RBI sets its credit policy, along with the tools of demand and supply. First is called Repo rate. This is the rate at which the RBI lends funds to the commercial banks. It has a direct impact on the economy. Another tool is Reverse Repo Rate, the interest provided to the commercial banks for their overnight deposits at the RBI. There is also the Cash Reserve Ratio (CRR) rate, which is a percentage of the deposits that the commercial banks are impelled to keep with the RBI as reserves. An increase the CRR forces the commercial banks to squeeze the money available to lend funds. An increase in the CRR under the quarterly revision of the credit policy on April 25 is expected to suck out over Rs 9,000 crore excess funds from the banking system, while the 0.5 per cent increase in CRR announced on April 17 was aimed at squeezing out Rs 18,500 crore from the system.

Inflation is a result of increase in the demand for money. People are liquidating their savings in order to cope up with the sky rocketing prices. An increase in the demand for money has lead to an increase in the interest rates. Now, an increase in the CRR will suck out excess funds. Usually, higher interest rates encourage savings and leads consumers to defer or cut back on purchases until the rates soften. This leads to a lower demand for goods and services and in turn can squeeze inflation rates. An increase in the interest rates is generally meant to be targeted at the lives of the executives. In general, the executives substitute savings for the extra consumption they make, which brings down the demand for the goods and services leading to a lower inflation rate. Dr Yaga Venugopal Reddy assured that the home loans interest rates are not going to be changed as a large portion of the middle class families indulge in taking home loans. Following the interest rates, various supply side factors will be instilled into the system curbing the executive life and softening the inflation rates.

Besides the monetary and fiscal policies, our honourable Prime Minister Manmohan Singh has followed a method of persuasion and pressure requesting, the executives to cut back on executive life after raising the slogan ‘Simple living, high thinking’.

A few years ago when I used to think what it would be like to live in the year 2008 and onwards I assumed a world much similar to that of the one depicted in the sci-fi movies and fantasy fiction. Technology would have taken over the problems that are too distracting in human growth in general, places like Gaza, Chad, Darfur, and Afghanistan etc. will be relatively better off in terms of making themselves a better bargain for futures ahead.

Upon my waking up and that to the reality where all has changed with time and for the worse, the crises on the earth (political as well as socio-economic) have not only gotten mature but have consistently perpetuated themselves. Ironically 2008 is no different than the dark alley of a tunnel whose length and width are not known owing to human indifference to studying nature at times.

Speaking of 2008 being the year of Olympics, what seemed to many a source of bliss and pride as Pakistanis or Asians so to speak, we were the atypical host of the Olympic torch and Islamabad was not a surprise picking in this regard. Since than much has been said and written about the pride we should take as a nation in being the neighbors of People’s Republic of China and of course as Pakistanis and in particular to the position that we some how suddenly have acquired to be given the status of an Olympics torch host alongside countries like US, UK, France, and India.

All this sounds music to the ears when I gaze at this pleasant state of the affairs and indeed take pride in the spirit of the Olympics- united and equal, we are but one world.

But a prompt Shift in the frame of reference shatters all this vanity and takes away all the pride that I endure in being who I am and where I am. What good all this do? Or the recently acquired (or rather fought out) democracy, more so when in these contemporary age being amongst the only few nations capable of making their own unmanned spy planes. On the contrary some things beyond truly dreadful happens under the same sun in our very own premises, where a mother of two ( a five year old son and four year old daughter) taking along her two kids decides to be rundown by a passing train owing to excruciating circumstances i.e. ; poverty , and a young man in his 20s shots himself in a street in Rawalpindi crowded by many also due to the same reasons ( he was unable to find a job despite having a degree) , as if all this hadn’t been enough where a Rickshaw driver is seen with an advert on the back of his rickshaw saying ‘ kidney for sale’ all this due to him being unable to repay his loans and bear the expenses of livelihood. All this being just a glimpse of how things have gone wrong economically and socially.

Many Development Economists can indeed dispute here with me on this one and will counter this change of heart to the notion that economic disparities are a global phenomenon, joblessness is a problem even in developed nations, and inflation is an issue even in developed countries like Japan. But than the leaders and the so-called decision makers in all these nations do something, just a bit to counter the inevitable that haunts all the pessimist of the world. We on the other hand sadly are only entangled in issues like who should be the chief justice and which party should have more been given ministries in the interest of a certain province. All this may not be trivial but what about the people and their problems, after all this is done in the name of the very people in torment.

All this takes me back to my dream, a dream that ceases to fade away more so due to the hope tangled with it, as some one rightly said dreams may fade but hope shall never. So I continue to hope because hopes don’t cost anything they only make u live longer.

Under a protectionist regime, a regime which says NO to competition, free markets and empowerment of the human mind.

It certainly does not fit with the future we want to attain in our country (Pakistan) in terms of mentality, thought or practice. It replicates the mentality of dependency and being second tier in world practice, even if that qualifies as first tier in our domestic market. The methodology is based on grilling knowledge and fostering dependency rather than sowing the seeds for academic fruit, human thinking and breaking the stereotypes. Hence its objective and focus is not suited to competition on a global scale given the early half of the 21st century, where capitalism in its innovative form is the norm or believed norm for growth and progress.

Further, its business model and success in the current years is based on the lack of competitive alternatives (LUMS as an exception) in terms of networking, business education and the high and lust created by the graduates of the past decades. The norms of the system were compatible with the markets of the past decades. However, the changing tide and the lack of flexibility is evident by the influx and take over being drafted by the external programs infiltrating and further deepening our foreign exchange problems.

Further, the lust of the early 1990′s does not exist today, not due to the graduates themselves- who probably are the tier one students and hardworking academic souls in the country but rather through the norms of dependency inculcated in our practice (system) by the British pre-partition.

In the next issue, I will discuss my claims in depth (this is a teaser- to say the most), drawing a link between the current issue and my quotation from an earlier post ‘quantity, quality and the deepening of the education system is the only way to prosperity’.

Till then,

Note: To my friends from IBA- your response is especially appreciated and further, this is not to discount your hard work but to highlight your spirit and work with a framework of constructive criticism for progress and a better future.

IBA: Institute of Business Administration- Pakistan

For starters, I would draw an analogy between the current Asian giant (China) and the pre 1990′s crisis East Asian giant (South Korea) and then diverge away as the discussion unfolds.

Currently, the pre giant is bagging 3-4% growth rate every year- which is sustainable and draws in line with the economic fundamentals of its economy. However, what was so different a dozen or more years ago. Regardless of the factors leading up to the crisis, it was achieving 8-9% growth levels each year, driven by its transforming indigenous and export economy supported by the creative and innovative management of its leaders.

Apart from the obvious reasons which instigated the crisis, why has South Korea not been able to maintain its pre-crisis high’s? As pointed out by Dr Anjum Altaf, It can be argued, such high growth rates cannot be maintained forever, as evident by studying the US economy, within which an average 1.5% growth rate each year translates into a large absolute expansion in real terms. However, I would argue, in the case of South Korea, regardless of its classification as a developed country and the current trend, its eventual flattening of growth rates, investment to saving patters and changing composition of exports post crisis, can be contributed to deeper factors within its economy.

The following can be well articulated through the point made by a few in the field (Krugman/Quah), they argue that the only manner to sustain and value growth in the long run is by increases in total factor productivity (the residual in output not explained by inputs), which the current China (similar to South Korea of the pre crisis period) is heavily slacking in, relative to the developed world. Therefore, considering the total factor productivity (TFP) as a direct measure, is China’s growth sustainable? A direct critique would be our capacity to accurately measure TFP, which is a highly debatable issue (Quah).

Secondly, the contribution of China is driven primarily by its large population size (who said, a large population is a curse), therefore once we correct for GDP per capita, the economy is not classified in the current race.

However it would be naïve to draw a conclusion based on these findings as there are several other factors at play, which when considered can negate the above drift. Important considerations and differences need to be drawn based on China’s untapped market potential driven by its population numbers, unskilled labour and the west-east divide within the country. Other factors such as trade as a share of output, mode of governance, positive sum territorial competition, dependency of the western markets along side environment and social sustainability, are very important considerations to make. Therefore my argument is inconclusive and fruits a strong basis for future research (Current trends).

Furthermore, if China is to be the future giant of the world economy as claimed by the figures produced by Merrill Lynch- would it be the beauty or the beast in its imperial life. Will its history, values and culture detach itself from the western mode of imperial practice or would it soon follow. Its recent expeditions in Africa and how they nurture in dialogue and practice over the coming years can be a base of evaluating the inevitable future.

Read the snipet by Pranad Bardhan to overview some myths about the rise of the new asian giants.

Above all, the real question is: What Does China Think? (A Interesting Book by Mark Leonard)

For one, I would say – nothing of the universal kind exists. The relevant distinction between good and bad is based upon the social context of application, the forces at play, the realities undefined and the mentality at bay. The view point is well narrated through the concept of Second Best Institution (Dani Rodrik).

If anything, it is not a distinction between good and bad but in between ‘low risk’ and ‘high risk’ policies, given a specific environment. For Instance, Investment in Infrastructure and Foreign Direct Investment (FDI), although a politically viable and easier policy to implement, can be categorized as a high risk policy that is given the local labour and firm market are not susceptible or flexible to such inherent changes given their current standing and structural stance (most of the developing regions of the world). Therefore, a fore front priority of projects based on solely Infrastructure and FDI in such regions, will not only drive the local firms out of business and lead to massive brain drain, but will ultimately exacerbate the employment problems and realities(structural) of the region (Rodriguez Pose).

Therefore, as a policy specialist when advising a local government or enforcing the pursuit of a goal, my policy recommendation to the authority would be based on implementing a low risk policy, defined in terms of making the best of what exist, fine tuning and diversification within the existing base. However, while doing so I would propose gradual but necessary investment in enhancing the flexibility and mobility of the local labour and firm market, reducing their susceptibility to external shocks and changes in the environment (Balanced policy). However, an important assumption to note is my hindsight conclusion that policy intervention will help juice up the economy in question.

This is especially important and relevant for external specialist, who are alien or mere acquaintances to the surroundings and workings of the environment in which they are intervening and providing advice, if not action. The above narration falls in line with the new paradigm in development policy, based on the social context and learning by doing policy practice, as outlined by a few in the field.

The narration is supplemented by several case studies, under which similar policies applied to different regions under a similar framework have provided diverging if not opposite results. Therefore socio-economic and political characteristics and realities are very important considerations.

For year’s policy makers have been cornered for their short falls, for the mismatch between promise and result, for their adhocism in policy driven by inconsistency and on-off approach. In practice, the real question within the academic and policy world has been what works and what doesn’t. What role does policy have in the local let alone global economy? What is its impact and target market? Its nature, form and characteristics and above all what does it want to achieve. As many policy specialist, as either students or practicing experts are confronted with the conundrum to lay out a distinction between what works and what doesn’t, their minds are subverted towards drawing conclusions.

However, very few would say, we cannot precisely pinpoint what works and what doesn’t on a broader scale, we are unclear what is better and what is worse given a complex environment, which is the real world we live in, and we certainly cannot claim its absolute success, as it is a combination of several forces working outside the scope and domain of the policy table. If anything, we can give a drift but rarely a precise conclusion. However, such is the test of their expertise and role in the global race. For starters, maybe, acceptance is the way forward.

You drew a contrast between South Korea and Pakistan- I disagree with the comparison, primarily based on 2 factors.

1) Given that 35 years ago, the foreign interest in South Korea was very different in purpose, even if not in action, relative to the Pakistan.
2) South Korea progressed into democracy, did not jump into it. Implying that the transition was coupled with several institutional reforms which are not allowed to take place in Pakistan, at least not peacefully.

On a different note, like today we continue to advocate for a military free democratic government, fairly and rightly so! Although we do not really know how to progress in the future with this government, which is based on the very bottlenecks our society is plagued with. Similarly, further back in the day we kept advocating for independence, however we did not know what to do with it, once we attained it. For instance if we would have implemented land reforms right after independence, our economic and social policies would not be contained around such sticky structural rigidities. Therefore, foresight is our biggest constraint.

I think it is misleading to say that the people of Pakistan are not aware of the cost at stake. However, I do agree they seem tuned and immune to their surroundings, hence the lack of panic in the business environment and the robustness shown by the stock market, in terms of its ability to bounce back, which if anything, is a positive rather than a negative.

I certainly agree, that the wheat and energy crisis are the result of the mishandlings of the previous government, however past portfolios of other standing governments do show differing but not better results.

In terms of inequality, yes it has been a chronic disease with a natural outcome of the neo-liberal policies imposed in the capital given our environment, these policies are predominantly efficiency based and instigate inequality in the short run. However, it is never the case of one for the other; better redistribution policies need to be implemented. However, redistribution is not the long term solution. Better education in terms of quantity and quality is the only way to prosperity, with a core emphasis on deepening of the system. Therefore, regardless of the economic policy, due to the low literacy and flexibility among the major crux of the masses, inequality is inevitable!

However, it is important to note that issues of redistribution have existed for much longer than the period of this government therefore in terms of issues relative to redistribution (corruption and mismanagement of funds through the system) it is virtually impossible to enforce an effective redistribution system without a long term commitment to solve the problem. However, better interim action could have been taken.

I would further argue, based on hindsight, although relative inequality has increased, absolute poverty which is the true measure of poverty has decreased in core terms- i.e. if we disregard the current wheat and energy crisis, which is more a global rather than Pakistan instigated phenomena. However, alternatives such a better management for wheat and coal as a energy alternative should be looked into as well.

Ali Sohail wrote this article while responding to a previous article by Anas Tahir: Pakistan: Into The Future 

Today, as the political situation of the country takes another sharp turn in history; many questions arise regarding its future. It surely is a never ending debate and it can never be reduced it to one plot. Its role as the only Islamic Nuclear Power in the world, supporting the US in the war on terror, the Kashmir issue, resolving the energy crisis and tackling the increasing domestic instability without democracy are all those big questions it has to answer in the coming years and for that Pakistan hardly looks prepared.

Emerging from the history of political uncertainty, Pakistan has always struggled with democracy. Dictators as well as criminal politicians have played their role in the country’s falling in the iron-clad hands of marshal laws several times resulting in the military enjoying huge foreign aids, none of which seemed to have been spent of social development. In the recent years, Pakistan has experienced the most destructive violence and political unrest, all because of army and its fake policies which they call a step towards democracy. With the current Musharaf regime misusing the powers to full extent, Pakistan never saw its own judiciary being sacked and even the media being banned from straight coverage.

The recent fall of the iconic political figure and opposition leader Benazir Bhutto just few days before the elections is another big reason of the domestic unrest Pakistan is facing today and its all happening in a country which calls itself the biggest ‘peace’ supporter of the US. Its not about the terrorism groups, its not about social evils, its all about the unstable future of the country. Those who control the ruling class of the country, who implement their policies on it, take the advantage and the people pay the price. The fall of democracy in Pakistan can result in the rise of the American think-tank which may provide the basis for the implementation of the American Map of Islam in the near future.

Apart from politics, Pakistan struggles economically. Pakistan can be compared to South Korea, both countries were underdeveloped thirty years ago but today the economically stable S. Korea has joined the ranks of the developed countries and has a great contribution in reviving the pacific. On the other hand, Pakistan remains a third world country where development and technology are still a part of  the “future”. It´s a country where poverty rate is increasing, where electricity is still a “facility” for the people, where people don´t unite for the country, they unite to fight with eachother. Pakistan is a country where everything just doesn’t happen for a reason.

The people of a country always look for their future in their leaders; they hope for a better and secure lifestyle from them. Sadly, our leaders misuse their powers every time they take the seat and the people are forced to get on the streets and fight for their rights. It´s a 21st century country where the power to rule is the power to play with the rights of the people. On the darker note, we still have people who possess those stone age mentalities and wired up socially to the traditions of their forefathers which they think are a part of their religion. But every country has this particular group of people but once your leadership is strong and loyal to its people, nothing can compare to it. Pakistan needs a powerful leadership and then who knows, it may prove to be one of the most developed nations of the world.

Read a response to this article, written by Ali Sohail.