The organisation and structure of its agriculture, industry and services would also become relevant in terms of the pattern of ownership. Finally, the framework of law and practices that govern the economy also has a bearing on political economy issues. Feudal culture, patronage and rent-seeking largely underpin the political economy of Pakistan.
The economic growth rate has averaged 5 percent annually since —a feat achieved by very few countries. Politically, however, the Political economy of pakistan of religious fundamentalism, sectarianism, ethnic cleavages and regional economic disparities has made the country volatile and unstable.
Various East Asian countries that were behind Pakistan in the s have surged far ahead in most economic and social indicators. Pakistan has thus been unable to realize its potential. It is usually believed that economic growth can take place only in the presence of political stability, but the Pakistani case contradicts conventional wisdom.
In order to explain these paradoxes and contradictions, this article attempts to address the following questions: How can a country that has suffered from political volatility and instability for such a long period achieve high economic growth?
Have periods characterized by stable authoritarian regimes in Pakistan provided the means for long term economic performance?
Have external influences, particularly the United States, played a constructive role? Despite sharing a common historical, cultural and social milieu, Pakistan and India have pursued different paths since independence in Both countries have done reasonably well in improving their economies and reducing absolute poverty levels.
India has, however, emerged as a stable and vibrant democracy while Pakistan has spent half of its post-independence years under military dictatorships and is currently struggling to quell an Islamic insurgency in the northwest part of the country.
The democracy—development nexus appears to be well entrenched in the case of India, while it is faltering in Pakistan. A great deal of recent literature has suggested that China and India are the typical representatives of authoritarian and democratic regimes, but fewer attempts have been made to resolve this puzzle in the case of India and Pakistan, two countries that are more akin to each other and share a common legacy.
The Flat Fifties, to Pakistan came into existence as a moth-ridden country at the time of the partition of India. The British-controlled provinces of Punjab and Bengal were each divided into two parts.
The physical separation between eastern and western Pakistan, with Indian territory in between, put Pakistan at a serious disadvantage from its inception. After the death of the first prime minister, Liaquat Ali Khan, and the ascent of bureaucrat Ghulam Mohammed to the office of Governor-General, the supremacy of politicians in the political order was lost.
Changing political loyalty has since become one of the main causative factors of political instability. Pelf, patronage and power have dominated the political scene.
The seeds of separation were further sown when the Muslim League lost the provincial elections in East Bengal due to a growing disaffection with the ruling political elite in West Pakistan.
This elite from the Punjab province, instead of coming to grips with the grievances of East Bengal, adopted a confrontational strategy to consolidate their power by merging all four western Pakistan provinces into one province.
As a result, East Pakistanis were antagonized when their province, which contained the majority population, was forced to accept parity with newly-formed West Pakistan in the Parliament.
The political atmosphere was too vitiated; political instability was too acute; tensions between the different tiers of the government were so damaging; the challenge of setting up the organs of a new state was so formidable; and the influx of millions of refugees from India was too demanding.
With the help of Harvard advisors, Khan vigorously implemented the Planning Commission on Economic Management and Reforms with impressive results.Pakistan’s international trade is suffering from huge amount of deficit due to low demand for its exports.
Domestic political instability also accounts for trade deficit. The trade deficit stood at US$ billion in Pakistan is a member of several international organizations such as ECO (Economic Cooperation Organization), SAFTA(South Asian Free Trade Area), WIPO(World INtellectual.
Pakistan is a multiparty democracy where several political parties bag seats in the National and Provincial assemblies. However, as an aftermath of the Fall of Dhaka in , a two-party system was inculcated between the Peoples Party and Muslim League. The s was the time when the economic interests of middle and influential Pakistan became expressed into politics and into a desire to use politics for economic gain and political control.
The s witnessed high instability in Pakistan.
List of Pakistani newspapers, magazines and news sites in English. Also Pakistan news headlines. OVER the last quarter of a century, Dawn Economic and Business Review (EBR), a weekly pink-page supplement, has been serving as a chronicler of Pakistan’s political economy.
The term. In the last few weeks, over , Rohingya Muslims have fled a bloody pogrom in Myanmar’s Rakhine state, crossing into Bangladesh. Among the horrified and largely moralistic reactions in the West, some have pointed to economic factors supposedly behind these events.