To: ratan lal who wrote (2109 ) 8/1/1998 5:34:00 PM From: Mohan Marette Read Replies (2) | Respond to
Empty Pockets-A look at Pakistan's economy.Empty Pockets Pakistan's rulers treat the treasury as private property. Pakistan's creation in 1947 had raised hopes that as an Islamic state it would face fewer problems in its governance and proceed speedily towards prosperity. Fifty years on, with chronic political instability and a sharp, recent (post-1988) deterioration in its economy -- not to mention the post-nuclear sanctions -- these hopes have been belied. This despite an acceleration of market-oriented reforms, partly induced by the IMF. As policy adviser to Pakistan's government and at the World Bank, Parvez Hasan has vast experience. He has focused on specific policy factors which have stymied the economy and identified four long-term ones. One, population growth, currently 3 per cent a year. Two, low savings rate, currently 12 per cent of GDP. Three, abysmal human resource development, with an evident gender bias (77 per cent female illiteracy). Four, neglect of infrastructure. Indians will easily identify with Hasan's diagnosis as well as his prescriptions. He recognises that Pakistan needs better relations with India. It also requires sound and visionary economic policies. These, in turn, can be made possible by a "strong and enlightened political leadership" (page 368). Unfortunately, Hasan doesn't tell us how this leadership will emerge.
