good governance is a prerequisite for social harmony

8/12/2019 Good Governance is a Prerequisite for Social Harmony

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Pakistan is the worlds second largest Muslim country. It has a population of 180 million

people which is growing by the day with the Government of President Zardari totally

unwilling and completely un-prepared for the economic and social disaster that lies

ahead due to the population explosion.. Out of 180 million people approximately 55 per

cent or 95 million people fall in the young age group. In any other country, with

adequate investment, they would have formed the engine of growth. The people of

Pakistan are however unfortunate. They are governed by men who lack both vision and

leadership. The luminaries who grace both the houses of Parliament and the Provincial

Assemblies do not tire of expressing their pain and anguish over the plight of the

masses. Yet the very same masses are left to grapple with multiple challenges to their

very existence. Apart from unemployment, rising poverty and lawlessness, the masses

are confronted with rampant militancy, a fragile economy that is surviving on oxygen

provided by the IMF, a crisis in governance and a society deeply divided along ethnic

and religious lines.

Of the multiplicity of problems that threaten Pakistan, the most fundamental threat to its

existence arises from the adverse economic governance of President Zardaris

government. Despite the IMFs Standby Arrangement (SBA) the flight of capital

continues (even Salman Taseer, the Governor Punjab, and a die-hard jiyala to boot

prefers to take his money out of the country and invest in the Colombo stock exchange

where reportedly he is a major player). In the face of inconsistent policies, rampant

corruption, damaged infra-structure, absence of law and order and the high cost of

doing business keeps foreign investors away. It would take a very long time for their

confidence to be restored. As a consequence, the investment rate has plummeted to

the lowest level since the 1950s. The falling investment rate has adversely affected theeconomic growth rate. The floods have only served to aggravate an already

deteriorating economic situation. Given the countrys high population growth rate

notwithstanding the Population Ministrywhose Minister spends more time on

television channels than in her Ministry, the real per capita income is likely to decline in

the current financial year. On the basis of current performance, it can be held that

President Zardaris government will be unable to correct the sectoral distortions and

improve governance. The per capita income is likely to increase only marginally during

the next couple of years. This eventuality contains serious security implications for the

country given Indias impressive economic performance and Pakistans inability to

match this growth.

Taking a dispassionate view of the economy, we can see a persistent leadership and

public management deficit which has been aggravated by the saga of Wikileaks. The

polarization of political parties over the GST issue is seen as a precursor to a renewed

round of political instability. Political parties opposing the imposition of GST have


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argued that the Government of President Zardari must take steps to end corruption and

introduce good governance. Lack of governance and corruption are causing peoples

loss of faith in democracy. Demands are being made for a new social contract.

The combined menace of corruption and poor governance is posing a serious threat to

the countrys well being and the survival of democratic institutions. The very large

reduction in revenues can be attributed to corruption. It is estimated that due to corrupt

practices in the FBR, Rs. 500 billion are lost annually. An additional amount of Rs. 300

billion has to be extended annually to the public sector corporations to keep them afloat.

The heads of these corporations are cronies and friends of yesteryears many of whom

are now in jail facing trial for embezzlement of public funds. This loss contributes to the

fiscal deficits in the budget The existing income in-equalities are due to various

economic policies as well as corruption. The record rise in the price of sugar which the

Government of President Zardari attributed to the sugar mafia was in fact due to

corruption which distorted the market and caused enormous hardship to the poorconsumers.

Taking a very optimistic view, it can be said that the people of Pakistan have an outside

chance of a better tomorrow. For this to happen, many things will have to change. The

lack of investment in education by the government of President Zardari makes it

impossible for Pakistan to emulate other emerging economies most notably that of India

which has become a high tech hub. Heavy and sustained investment in the education

sector will have to take place as a matter of national priority. The current expenditure of

1.3% of the GDP on education is unlikely to take Pakistan anywhere. Our youth enrolled

in colleges and universities are simply not prepared to work hard. They will have to bemotivated to meet the challenge. Their current attitudes will have to change. Societal

norms will have to change as well. Herein lies the challenge and the opportunity for the

countrys leadership.

In meeting the governance challenges ahead, it does not help that the population is

growing at a high rate of 2.9% and that the youth bulge in its demographic profile shows

few signs of abating. This factor seems to be having negligible impact on policy makers

of President Zardaris government who have successfully managed to remain in a state

of permanent trance.

As and when the policy makers are shaken out of their stupor, they would recognize

that the countrys youth bulge provides them with a God send opportunity. If necessary

investments are made in their education, training and employment and they are

motivated to work hard, they could provide the countrys economy with a demographic

dividend long after the equivalent bulges in China and India have aged and retired.


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Pakistan has an opportunity to leverage its domestic consumer market to attract

multinationals and build up competitive economies of scale in industries like food,

electronics, autos and engineering for the export market. It is up to the political

leadership of the country to seize this opportunity and realize the dream that went into

the making of Pakistan.

good governance is a prerequisite for social harmony

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