Nutrition Profile
NUTRITION PROFILE
92% children victim of deficient nutrition in Pakistan
According to Pakistan National Nutrition Survey for 2011:
a) 44% of children under 5 years are stunted.
b) In rural Pakistan one in four children is experiencing severe stunting.
c) In rural Sindh almost three in four Sindhi families are food insecure. In tribal ridden Balochistan 64% families were food insecure.
An official of the Punjab Agriculture Research Board revealed that Pakistan invested 0.29% of its agriculture GDP on research whereas India invested 0.4%, China 0.6%, and Japan invested 2.5%.
The National Nutrition Survey said only 8% of the children received minimum acceptable diet. How long will the 92% children remain deprived of the minimum acceptable diet?
(Mahmood Mirza)
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92% children victim of deficient nutrition in Pakistan
According to Pakistan National Nutrition Survey for 2011:
a) 44% of children under 5 years are stunted.
b) In rural Pakistan one in four children is experiencing severe stunting.
c) In rural Sindh almost three in four Sindhi families are food insecure. In tribal ridden Balochistan 64% families were food insecure.
An official of the Punjab Agriculture Research Board revealed that Pakistan invested 0.29% of its agriculture GDP on research whereas India invested 0.4%, China 0.6%, and Japan invested 2.5%.
The National Nutrition Survey said only 8% of the children received minimum acceptable diet. How long will the 92% children remain deprived of the minimum acceptable diet?
(Mahmood Mirza)
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Poverty Profile
POVERTY PROFILE
Poverty on the rise in Pakistan
In 2010, 60% of Pakistan’s population was spending less than $ 2 a day, the international poverty line which is a more inclusive version of poverty. Extremely poor population living below $ 1.25 a day, in 2010, was 21%. (World Development Indicators, 2013)
The number of the poor, in both the categories of poverty has increased since 2010 as the price level generally and that of food particularly markedly increased. Of the poor people in Pakistan, 80% live in the rural areas. (Rural Poverty Portal, IFAD)
How to eradicate poverty?
(Mahmood Mirza)
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Poverty on the rise in Pakistan
In 2010, 60% of Pakistan’s population was spending less than $ 2 a day, the international poverty line which is a more inclusive version of poverty. Extremely poor population living below $ 1.25 a day, in 2010, was 21%. (World Development Indicators, 2013)
The number of the poor, in both the categories of poverty has increased since 2010 as the price level generally and that of food particularly markedly increased. Of the poor people in Pakistan, 80% live in the rural areas. (Rural Poverty Portal, IFAD)
How to eradicate poverty?
(Mahmood Mirza)
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Income Disparity – I
INCOME DISPARITY – I
Super-rich are 0.001% of the population
IIn 2010, “the super rich 18,000 people have a combined income of $1.31 billion or $72,700 per capita.”
“The super rich - the 18,000 who make up 0.001 percent of the population - earn 180 times as much as the poorest 18 million.”
“The richest 40,000 people in the country have combined income equal to that of the poorest 18 million people.”
(Extract from the paper titled “How rich are the Pakistani rich?” Shahid Javed Burki, The Express Tribune, May 16, 2011.)
Mr. Burki’s paper interprets official statistics which show distribution of income among “income-groups”. There are no statistics showing income earned by individuals or families.
(Mahmood Mirza)
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Super-rich are 0.001% of the population
IIn 2010, “the super rich 18,000 people have a combined income of $1.31 billion or $72,700 per capita.”
“The super rich - the 18,000 who make up 0.001 percent of the population - earn 180 times as much as the poorest 18 million.”
“The richest 40,000 people in the country have combined income equal to that of the poorest 18 million people.”
(Extract from the paper titled “How rich are the Pakistani rich?” Shahid Javed Burki, The Express Tribune, May 16, 2011.)
Mr. Burki’s paper interprets official statistics which show distribution of income among “income-groups”. There are no statistics showing income earned by individuals or families.
(Mahmood Mirza)
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Income Disparity – II
Education Profile
EDUCATION PROFILE
Only 0.46% of GDP for research and development?
In 2010 in Pakistan, adult male literacy rate was 69%. The female rate was 40%. Comparable respective literacy rates of developing countries were 86% and 76%.
In 2010, public expenditure on education in Pakistan was equivalent to 2.4% of GDP. The average public expenditure in this head in developing countries was 3.9% of GDP.
R & D expenditure during 2007-09 in Pakistan was equivalent to an average of 0.46% of GDP compared to 1.07% of the developing countries.
(Human Development in South Asia 2013) How to eradicate poverty?
(Mahmood Mirza)
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Only 0.46% of GDP for research and development?
In 2010 in Pakistan, adult male literacy rate was 69%. The female rate was 40%. Comparable respective literacy rates of developing countries were 86% and 76%.
In 2010, public expenditure on education in Pakistan was equivalent to 2.4% of GDP. The average public expenditure in this head in developing countries was 3.9% of GDP.
R & D expenditure during 2007-09 in Pakistan was equivalent to an average of 0.46% of GDP compared to 1.07% of the developing countries.
(Human Development in South Asia 2013) How to eradicate poverty?
(Mahmood Mirza)
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Health Profile
HEALTH PROFILE
Only 0.8% of GDP for health?
In 2010 the public expenditure on health in Pakistan was equal to 0.8% of GDP compared to average of 2.9% of GDP for the developing countries.
48% of the population of Pakistan has access to the sanitation compared to 56% for the developing countries. (Human Development in South Asia 2013)
(Mahmood Mirza)
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Only 0.8% of GDP for health?
In 2010 the public expenditure on health in Pakistan was equal to 0.8% of GDP compared to average of 2.9% of GDP for the developing countries.
48% of the population of Pakistan has access to the sanitation compared to 56% for the developing countries. (Human Development in South Asia 2013)
(Mahmood Mirza)
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Gender Disparity Profile
GENDER DISPARITY PROFILE
Bengali women have a lead over Pakistan’s
In 2010 in Pakistan, 27% of the female population above 15 years was engaged in economic activity while the comparable figure in Bangladesh was 67%.
In 2008, 3.6% of women were working in ministerial level position in Pakistan. The comparable figure in Bangladesh was 8.3%.
In 2008 female legislators, senior officers and managers were only 3% in Pakistan while in Bangladesh the comparable figure was 10%.
Why do women in Pakistan lag behind?
(Human Development in South Asia 2013)
(Mahmood Mirza)
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Bengali women have a lead over Pakistan’s
In 2010 in Pakistan, 27% of the female population above 15 years was engaged in economic activity while the comparable figure in Bangladesh was 67%.
In 2008, 3.6% of women were working in ministerial level position in Pakistan. The comparable figure in Bangladesh was 8.3%.
In 2008 female legislators, senior officers and managers were only 3% in Pakistan while in Bangladesh the comparable figure was 10%.
Why do women in Pakistan lag behind?
(Human Development in South Asia 2013)
(Mahmood Mirza)
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Energy Profile
ENERGY PROFILE
In 2010, energy use per capita (kilogram of oil equalent) in Pakistan, was 487 compared to 1,210 for the developing countries.
(Human Development in South Asia 2013)
(Mahmood Mirza)
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In 2010, energy use per capita (kilogram of oil equalent) in Pakistan, was 487 compared to 1,210 for the developing countries.
(Human Development in South Asia 2013)
(Mahmood Mirza)
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Classes of the Poor
CLASSES OF THE POOR
The main categories of the poor in Pakistan are:
i) Owners of small units of agricultural land.
ii) Landless tenants particularly in the South Punjab, Sindh and Balochistan.
iii) The property-less tribesmen in Balochistan.
iv) Urban labourers, small shopkeepers and street hawkers.
v) Industrial labour and other low-paid fixed income groups.
vi) Property-less persons suffering from various diseases whose number is ever rising.
Poverty, crime, ignorance, corruption, high birth rate, instability go together.
(Mahmood Mirza)
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The main categories of the poor in Pakistan are:
i) Owners of small units of agricultural land.
ii) Landless tenants particularly in the South Punjab, Sindh and Balochistan.
iii) The property-less tribesmen in Balochistan.
iv) Urban labourers, small shopkeepers and street hawkers.
v) Industrial labour and other low-paid fixed income groups.
vi) Property-less persons suffering from various diseases whose number is ever rising.
Poverty, crime, ignorance, corruption, high birth rate, instability go together.
(Mahmood Mirza)
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High Growth And Education for Reducing Poverty
HIGH GROWTH AND EDUCATION
FOR REDUCING POVERTY
High rate of growth mitigates poverty to some extent. There are numerous pre-requisites of high growth such as stable law and order, human development, physical infrastructure, high rate of saving and investment, efficient and transparent governance, and regional trade and cooperation. High rate of growth in an inequitable social order enhances inequality – class-wise as well as region-wise. In India regional disparity as well as class inequality increased during the period of high rate of growth.
Leaders who put emphasis only on high growth and education, divert the
attention of people away from the unjust socio-economic order.
In political parlance, human development means education. Education definitely plays a crucial role in enabling the people to emancipate themselves out of the poverty trap in a growing economy. But in a society where other pre-conditions such as law and order is bad, as was in Sri Lanka, growth may not take place despite universal literacy and widespread education.
(Mahmood Mirza)
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High rate of growth mitigates poverty to some extent. There are numerous pre-requisites of high growth such as stable law and order, human development, physical infrastructure, high rate of saving and investment, efficient and transparent governance, and regional trade and cooperation. High rate of growth in an inequitable social order enhances inequality – class-wise as well as region-wise. In India regional disparity as well as class inequality increased during the period of high rate of growth.
Leaders who put emphasis only on high growth and education, divert the
attention of people away from the unjust socio-economic order.
In political parlance, human development means education. Education definitely plays a crucial role in enabling the people to emancipate themselves out of the poverty trap in a growing economy. But in a society where other pre-conditions such as law and order is bad, as was in Sri Lanka, growth may not take place despite universal literacy and widespread education.
(Mahmood Mirza)
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Do We Need a Redistribution of Productive Assests?
DO WE NEED A REDISTRIBUTION
OF PRODUCTIVE ASSETS?
In Pakistan, an important condition for reducing poverty is to redistribute productive assets amongst the assets-less. Only those productive assets may be redistributed as help enhance production. Redistribution of large agricultural farms enhances per acre and per worker yield.
Redistribution of plants and machinery of large manufacturing units is ill advised. It breaks up the capacity of the unit to carry on production. Again nationalization of industrial units within a framework of politico-economic order, dominated by capitalist class / corrupt elite, is also ill advised. The author subscribes to the idea of setting up of industrial units in the public sector in a socio-political order led by social politicians. Let socially motivated politicians guide a movement to set up a socio-economic system that promotes the well-being of the people and roots out the causes that give rise to poverty and inequality. But this is not realizable in a short span of time. It requires social engineering of almost a radical order.
(Mahmood Mirza)
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In Pakistan, an important condition for reducing poverty is to redistribute productive assets amongst the assets-less. Only those productive assets may be redistributed as help enhance production. Redistribution of large agricultural farms enhances per acre and per worker yield.
Redistribution of plants and machinery of large manufacturing units is ill advised. It breaks up the capacity of the unit to carry on production. Again nationalization of industrial units within a framework of politico-economic order, dominated by capitalist class / corrupt elite, is also ill advised. The author subscribes to the idea of setting up of industrial units in the public sector in a socio-political order led by social politicians. Let socially motivated politicians guide a movement to set up a socio-economic system that promotes the well-being of the people and roots out the causes that give rise to poverty and inequality. But this is not realizable in a short span of time. It requires social engineering of almost a radical order.
(Mahmood Mirza)
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INEQUALITY – Owners of Agricultural Land
INEQUALITY – Owners of Agricultural Land
1) Percentage of small owners (holding less than five acres) in relation to the total land owners in each province is as follows:
2) Number of owners owning more than 50 acres and the area they hold is as follows.
(Reference Agricultural Census 2010, Table 13.1)
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1) Percentage of small owners (holding less than five acres) in relation to the total land owners in each province is as follows:
| KPK | 82% |
| Punjab | 68% |
| Balochistan | 39% |
| Province | No. of owners holding more than 50 acres of land | Percentage in relation to total land owners in the province | Area owned by owners of more than 50 acres | Percentage in relation to total agricultural area in the province |
| KPK | 10 Thousands | 0.6% | 10 Lac acres | 17% |
| Punjab | 39 Thousands | 0.7% | 41 Lac acres | 15% |
| Sindh | 37 Thousands | 3.8% | 33 Lac acres | 31% |
| Balochistan | 27 Thousands | 8.2% | 73 Lac acres | 72% |
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Why Reduce Poverty And Inequality
WHY REDUCE POVERTY AND INEQUAILTY
Pakistan, despite a population of about 190 million, has a limited market. A large majority of the people is poor and does not have sufficient money to buy goods other than food. The elite and upper middle classes, who have the resources, prefer to buy foreign goods. Industrial development will be possible by creating the demand for goods and services by raising the income level of the poor.
Pakistan has regional and ethnic inequality. Such inequality raises social and political tensions. The development strategy must aim at reducing inequality. Planning for this purpose must be regional to be coordinated at provincial and national levels. Again, the planning has to be bottom-up.
(Mahmood Mirza)
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Pakistan, despite a population of about 190 million, has a limited market. A large majority of the people is poor and does not have sufficient money to buy goods other than food. The elite and upper middle classes, who have the resources, prefer to buy foreign goods. Industrial development will be possible by creating the demand for goods and services by raising the income level of the poor.
Pakistan has regional and ethnic inequality. Such inequality raises social and political tensions. The development strategy must aim at reducing inequality. Planning for this purpose must be regional to be coordinated at provincial and national levels. Again, the planning has to be bottom-up.
(Mahmood Mirza)
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TAX REVENUE: The Elite VS The Common Man
TAX REVENUE: THE ELITE VS THE COMMON MAN
The ruling elite does not fulfill its social obligation towards fellow citizens by paying taxes on their income and property. Most of the taxes in Pakistan are paid by the masses on the goods and services they consume. Direct taxes are paid either by banks, telecommunication companies, multinationals or state corporations who still make profit. The tax to GDP ratio in Pakistan is around 9% and one of the lowest in the world. The state, therefore, is unable to allocate funds for education, health and welfare of the people. The ratio of education to GDP is 2.4% and of health is 0.8% in Pakistan, while the average expenditure of the developing countries is 3.9% for education and 2.9% for health. (Figures adopted from Human Development in South Asia 2013)
(Mahmood Mirza)
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The ruling elite does not fulfill its social obligation towards fellow citizens by paying taxes on their income and property. Most of the taxes in Pakistan are paid by the masses on the goods and services they consume. Direct taxes are paid either by banks, telecommunication companies, multinationals or state corporations who still make profit. The tax to GDP ratio in Pakistan is around 9% and one of the lowest in the world. The state, therefore, is unable to allocate funds for education, health and welfare of the people. The ratio of education to GDP is 2.4% and of health is 0.8% in Pakistan, while the average expenditure of the developing countries is 3.9% for education and 2.9% for health. (Figures adopted from Human Development in South Asia 2013)
(Mahmood Mirza)
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Living Beyound Means
Living Beyound Means
Debt higher than the sustainable limit
Our elite traditionally lives beyond its means. In the economic life of the nation this culture finds expression in budget deficits and in the balance of payments forcing the state to increase debt. Public debt aggregating Rs. 13,626 billion on March 31, 2013, has become unsustainable. The debt growth outstripped revenue growth as well as the export growth. The servicing of public debt for nine month ended March 31, 2013 amounted to Rs. 936 billion. Its percentage to revenue was 44%, which was 14% higher than the sustainable limit. We may even be debt-trapped. In nine months ended March 31, 2013 foreign debt increased by 7.5% while the growth in exports was at 0.01% only. (Figures from Economic Survey 2012-2013)
(Mahmood Mirza)
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Debt higher than the sustainable limit
Our elite traditionally lives beyond its means. In the economic life of the nation this culture finds expression in budget deficits and in the balance of payments forcing the state to increase debt. Public debt aggregating Rs. 13,626 billion on March 31, 2013, has become unsustainable. The debt growth outstripped revenue growth as well as the export growth. The servicing of public debt for nine month ended March 31, 2013 amounted to Rs. 936 billion. Its percentage to revenue was 44%, which was 14% higher than the sustainable limit. We may even be debt-trapped. In nine months ended March 31, 2013 foreign debt increased by 7.5% while the growth in exports was at 0.01% only. (Figures from Economic Survey 2012-2013)
(Mahmood Mirza)
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How Leadership Makes a Nation Dependant
HOW LEADERSHIP MAKES A NATION DEPENDANT
A leadership that bureaucratized (nationalized) big tool manufacturing units made the nation highly dependent on other countries in the technological field, or foreign investment. Then those experienced in machine tools, started producing sugar, chicken and milk. It is no service to the technological advancement of the nation.
(Mahmood Mirza)
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A leadership that bureaucratized (nationalized) big tool manufacturing units made the nation highly dependent on other countries in the technological field, or foreign investment. Then those experienced in machine tools, started producing sugar, chicken and milk. It is no service to the technological advancement of the nation.
(Mahmood Mirza)
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Finding Jobs for an ever-increasing Population
FINDING JOBS FOR AN EVER-INCREASING POPULATION
The annual growth rate of labour force in Pakistan is 3% compared to 1.2% in India. Again, the GDP growth of India has been double or more than that of Pakistan’s. (Human Development in South Asia 2013) India with a higher growth rate of economy could not provide employment to its work force growing at a much lesser rate compared to Pakistan.
(Mahmood Mirza)
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The annual growth rate of labour force in Pakistan is 3% compared to 1.2% in India. Again, the GDP growth of India has been double or more than that of Pakistan’s. (Human Development in South Asia 2013) India with a higher growth rate of economy could not provide employment to its work force growing at a much lesser rate compared to Pakistan.
(Mahmood Mirza)
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Global Crisis and Pakistan
GLOBAL CRISIS AND PAKISTAN
Pakistan is a part of the global society, which is moving towards advanced science, technology and a new civilization. Many third world countries, including Pakistan, are unable to keep pace with this advancement. They rather look backward in some respects. The economy of twenty-first century is global. It is dominated by multinational corporations. No inter-governmental organization has a share in the management of corporations. Financial system of the globe too is not managed or regulated by an inter-governmental organization. A few countries having large GDPs deal with issues of the global economy. The political forces of these countries are fiercely nationalist and look after the interest of the elite. This is the basic cause of the international crisis. In the crises-ridden global situation, Pakistan has to find a way to move ahead.
(Mahmood Mirza)
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Pakistan is a part of the global society, which is moving towards advanced science, technology and a new civilization. Many third world countries, including Pakistan, are unable to keep pace with this advancement. They rather look backward in some respects. The economy of twenty-first century is global. It is dominated by multinational corporations. No inter-governmental organization has a share in the management of corporations. Financial system of the globe too is not managed or regulated by an inter-governmental organization. A few countries having large GDPs deal with issues of the global economy. The political forces of these countries are fiercely nationalist and look after the interest of the elite. This is the basic cause of the international crisis. In the crises-ridden global situation, Pakistan has to find a way to move ahead.
(Mahmood Mirza)
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How to overcome a Financial Crisis
HOW TO OVERCOME A FINANCIAL CRISIS
The prevalent debt-ridden finance-led economy, which is prone to booms and busts, will continue to give rise to crisis which hit this, more or less, every country. Dr. Steve Keen, a professor of finance and economics in an Australian university, suggests that we can control the malaise by nationalization of the whole financial system. Most countries will not accept Prof. Keen’s proposal. But a country intending to build a welfare state and promoting the commodity producing sectors may nationalize its financial system. Such a system, however, will not succeed unless the country adopts a new political system which the writer of these lines names as social politics. This matter is discussed by this writer in chapter IV and V of his book titled ‘Social Change’. See website www.mahmoodmirza.pk
(Mahmood Mirza)
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The prevalent debt-ridden finance-led economy, which is prone to booms and busts, will continue to give rise to crisis which hit this, more or less, every country. Dr. Steve Keen, a professor of finance and economics in an Australian university, suggests that we can control the malaise by nationalization of the whole financial system. Most countries will not accept Prof. Keen’s proposal. But a country intending to build a welfare state and promoting the commodity producing sectors may nationalize its financial system. Such a system, however, will not succeed unless the country adopts a new political system which the writer of these lines names as social politics. This matter is discussed by this writer in chapter IV and V of his book titled ‘Social Change’. See website www.mahmoodmirza.pk
(Mahmood Mirza)
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The Conflict between the prevalent Economy and the Democratic Order
THE CONFLICT BETWEEN THE PREVALENT
ECONOMY AND THE DEMOCRATIC ORDER
The advancement of industrial society led to evolving a welfare system within the capitalist framework. In the recent three decades a material change has taken place in the capitalist system. Now the finance-capital leads the overall (capitalist) economy and generates more profit than the industrial sector. The financial sector suffered a crisis in 2007-08. It spread into all the sectors of economy and created socio-political turmoil and misery. A conflict of interest has risen in the finance-led capitalism and the democratic system inasmuch as the measures taken to correct economic malaise, by the economic managers, curtailed the welfare benefits which the common people used to enjoy while countries were prosperous. Pakistan has to find a way to put up with crisis-prone world order.
(Mahmood Mirza)
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The advancement of industrial society led to evolving a welfare system within the capitalist framework. In the recent three decades a material change has taken place in the capitalist system. Now the finance-capital leads the overall (capitalist) economy and generates more profit than the industrial sector. The financial sector suffered a crisis in 2007-08. It spread into all the sectors of economy and created socio-political turmoil and misery. A conflict of interest has risen in the finance-led capitalism and the democratic system inasmuch as the measures taken to correct economic malaise, by the economic managers, curtailed the welfare benefits which the common people used to enjoy while countries were prosperous. Pakistan has to find a way to put up with crisis-prone world order.
(Mahmood Mirza)
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Pakistan- Conflict of interest between the Super Rich and the Masses
PAKISTAN - CONFLICT OF INTEREST BETWEEN
THE SUPER RICH AND THE MASSES
In Pakistan, national politics is led by the super-rich (the financial elite) who somehow accumulated immense wealth. Big landlords and tribal chiefs also have an influential share in politics. The super rich, leading the state, are building an iniquitous economy and are planning to invest in constructing physical infrastructure etc that primarily serves the larger interest of the capitalist order. What we need to mitigate the miserable conditions, is an economic strategy that serves the poor and the millions of unemployed. The importance of international motorways is there. The question is of priority. Should Pakistan give priority to schemes that enhance iniquitous development or should it prioritize schemes that reduce poverty, malnutrition and inequity. (See the article of political economist Prof. Niaz Murtaza, that appeared in Dawn, September 16, 2013).
(Mahmood Mirza)
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In Pakistan, national politics is led by the super-rich (the financial elite) who somehow accumulated immense wealth. Big landlords and tribal chiefs also have an influential share in politics. The super rich, leading the state, are building an iniquitous economy and are planning to invest in constructing physical infrastructure etc that primarily serves the larger interest of the capitalist order. What we need to mitigate the miserable conditions, is an economic strategy that serves the poor and the millions of unemployed. The importance of international motorways is there. The question is of priority. Should Pakistan give priority to schemes that enhance iniquitous development or should it prioritize schemes that reduce poverty, malnutrition and inequity. (See the article of political economist Prof. Niaz Murtaza, that appeared in Dawn, September 16, 2013).
(Mahmood Mirza)
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What Pakistan Needs to do in a Readjusting world order
WHAT PAKISTAN NEEDS TO DO
IN A READJUSTING WORLD ORDER
Knowledge-poor developing economies having a large population, such as Pakistan, are likely to face a difficult situation in the years to come. Goods such economies produce may not find market in high-tech/ rich countries in future. Many rich countries are bringing manufacturing back with a view to providing jobs to their increasing backlog of the unemployed. The high-tech countries are inventing techniques (such as robots) that will produce many goods in small quantities at low cost. These countries in future may not import goods which the developing economies specialize in. Millions of workers of developing countries may therefore lose jobs. Besides, many in EU, suffering from economic hardship, now resent Asian and African immigrant labour. Change is taking place in the political and economic policy of the leading countries after the 2007-08 crisis. We need to review the whole matter in the light of the emerging situation: How to increase earnings of foreign exchange in the years to come? How to expand local market for our manufactured goods? How to provide employment to our fast growing workforce? Will an elitist state be able to solve such deep-rooted problems? Does this not call for a change in politico-economic order?
(Mahmood Mirza)
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Knowledge-poor developing economies having a large population, such as Pakistan, are likely to face a difficult situation in the years to come. Goods such economies produce may not find market in high-tech/ rich countries in future. Many rich countries are bringing manufacturing back with a view to providing jobs to their increasing backlog of the unemployed. The high-tech countries are inventing techniques (such as robots) that will produce many goods in small quantities at low cost. These countries in future may not import goods which the developing economies specialize in. Millions of workers of developing countries may therefore lose jobs. Besides, many in EU, suffering from economic hardship, now resent Asian and African immigrant labour. Change is taking place in the political and economic policy of the leading countries after the 2007-08 crisis. We need to review the whole matter in the light of the emerging situation: How to increase earnings of foreign exchange in the years to come? How to expand local market for our manufactured goods? How to provide employment to our fast growing workforce? Will an elitist state be able to solve such deep-rooted problems? Does this not call for a change in politico-economic order?
(Mahmood Mirza)
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What Pakistan Needs to do in a Readjusting world order
WHAT PAKISTAN NEEDS TO DO
IN A READJUSTING WORLD ORDER
Knowledge-poor developing economies having a large population, such as Pakistan, are likely to face a difficult situation in the years to come. Goods such economies produce may not find market in high-tech/ rich countries in future. Many rich countries are bringing manufacturing back with a view to providing jobs to their increasing backlog of the unemployed. The high-tech countries are inventing techniques (such as robots) that will produce many goods in small quantities at low cost. These countries in future may not import goods which the developing economies specialize in. Millions of workers of developing countries may therefore lose jobs. Besides, many in EU, suffering from economic hardship, now resent Asian and African immigrant labour. Change is taking place in the political and economic policy of the leading countries after the 2007-08 crisis. We need to review the whole matter in the light of the emerging situation: How to increase earnings of foreign exchange in the years to come? How to expand local market for our manufactured goods? How to provide employment to our fast growing workforce? Will an elitist state be able to solve such deep-rooted problems? Does this not call for a change in politico-economic order?
(Mahmood Mirza)
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Knowledge-poor developing economies having a large population, such as Pakistan, are likely to face a difficult situation in the years to come. Goods such economies produce may not find market in high-tech/ rich countries in future. Many rich countries are bringing manufacturing back with a view to providing jobs to their increasing backlog of the unemployed. The high-tech countries are inventing techniques (such as robots) that will produce many goods in small quantities at low cost. These countries in future may not import goods which the developing economies specialize in. Millions of workers of developing countries may therefore lose jobs. Besides, many in EU, suffering from economic hardship, now resent Asian and African immigrant labour. Change is taking place in the political and economic policy of the leading countries after the 2007-08 crisis. We need to review the whole matter in the light of the emerging situation: How to increase earnings of foreign exchange in the years to come? How to expand local market for our manufactured goods? How to provide employment to our fast growing workforce? Will an elitist state be able to solve such deep-rooted problems? Does this not call for a change in politico-economic order?
(Mahmood Mirza)
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Will Growth Alone Bring Social Change in Pakistan?
WILL GROWTH ALONE BRING
SOCIAL CHANGE IN PAKISTAN?
Growth brought gradual change in many countries. Education, knowledge and skill help increase productivity of the factors of production increasing GDP, tax revenue and export, etc. These are necessary conditions for growth and to a degree in societal development regardless of the country and the economic system. But in Pakistan there are strong institutional impediments in the process of high growth. The ruling classes are reluctant to carry out necessary reforms in administrative and economic fields essential for high growth. In enacting and implementing any reforms they prioritize their own interest. Rather the ruling classes impoverish the poor by levying taxes on goods and services they consume while they themselves enjoy privileges and evade taxes. The prevalent system as a whole is corrupt, unjust and aggravates inequality. Historically, high growth in Pakistan depends on foreign resources and foreign investment. High growth in a system, described above, aggravates inequality - class-wise, ethnicity-wise and region-wise. Inequality is unacceptable for many reasons. It aggravates woes / grievances of the common people, ethnic groups and regions and strengthens hereditary aristocracy which is antithetical to democratic evolution. We need high growth in an egalitarian socio-economic framework that simultaneously eliminates poverty and reduces wealth inequality.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
Growth brought gradual change in many countries. Education, knowledge and skill help increase productivity of the factors of production increasing GDP, tax revenue and export, etc. These are necessary conditions for growth and to a degree in societal development regardless of the country and the economic system. But in Pakistan there are strong institutional impediments in the process of high growth. The ruling classes are reluctant to carry out necessary reforms in administrative and economic fields essential for high growth. In enacting and implementing any reforms they prioritize their own interest. Rather the ruling classes impoverish the poor by levying taxes on goods and services they consume while they themselves enjoy privileges and evade taxes. The prevalent system as a whole is corrupt, unjust and aggravates inequality. Historically, high growth in Pakistan depends on foreign resources and foreign investment. High growth in a system, described above, aggravates inequality - class-wise, ethnicity-wise and region-wise. Inequality is unacceptable for many reasons. It aggravates woes / grievances of the common people, ethnic groups and regions and strengthens hereditary aristocracy which is antithetical to democratic evolution. We need high growth in an egalitarian socio-economic framework that simultaneously eliminates poverty and reduces wealth inequality.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
Sloganeering For Socaial Change
SLOGANEERING FOR SOCIAL CHANGE
Realizing the direction of wind, the ruling elite also raised the slogan of social change. By social change some leaders mean change in social behaviour of society and some reforms in governance. They do not want to attack the iniquitous system which is the root cause of poverty, ill-health, malnutrition and unemployment. A solution is to set up a welfarist mixed economy that ensures growth with justice. But such a system, managed by billionaires or corrupt elite, will never succeed. Politics must also be manned by social politicians i.e., a new crop of politicians devoted to serve humanity. If the economy continues to be run with the short-sighted view of serving billionaires, it will not be possible to check deterioration in environment which has already jeopardized the life and nature on the planet – provoking the sea to punish the earth.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
Realizing the direction of wind, the ruling elite also raised the slogan of social change. By social change some leaders mean change in social behaviour of society and some reforms in governance. They do not want to attack the iniquitous system which is the root cause of poverty, ill-health, malnutrition and unemployment. A solution is to set up a welfarist mixed economy that ensures growth with justice. But such a system, managed by billionaires or corrupt elite, will never succeed. Politics must also be manned by social politicians i.e., a new crop of politicians devoted to serve humanity. If the economy continues to be run with the short-sighted view of serving billionaires, it will not be possible to check deterioration in environment which has already jeopardized the life and nature on the planet – provoking the sea to punish the earth.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
Equitable Development Through Motivational Economics
EQUITABLE DEVELOPMENT
THROUGH MOTIVATIONAL ECONOMICS
Developing societies like Pakistan are usually iniquitous. Their leadership comes from the elite and pursue development that aggravates inequity. If a developing country has a large population, the system run by the elite fails to find jobs for the workforce, particularly the unskilled. The ruling classes rely only on investment for development and creating jobs. The developing societies, however, have a potential to achieve much, in the initial stage of development, by motivational economics. A socially motivated leadership can, by mobilizing the public, bring about behavioural change in society and improvement in governance. Admittedly this system does not continue forever. Ultimately investment and technological advancement start playing the leading role in upgrading the society to a higher level of development and civilization. Our society has to abolish large land ownerships and the tribal system. The province that does it will set the development process on a faster path of equitable growth.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
Developing societies like Pakistan are usually iniquitous. Their leadership comes from the elite and pursue development that aggravates inequity. If a developing country has a large population, the system run by the elite fails to find jobs for the workforce, particularly the unskilled. The ruling classes rely only on investment for development and creating jobs. The developing societies, however, have a potential to achieve much, in the initial stage of development, by motivational economics. A socially motivated leadership can, by mobilizing the public, bring about behavioural change in society and improvement in governance. Admittedly this system does not continue forever. Ultimately investment and technological advancement start playing the leading role in upgrading the society to a higher level of development and civilization. Our society has to abolish large land ownerships and the tribal system. The province that does it will set the development process on a faster path of equitable growth.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
Genuine Change in Pakistan
GENUINE CHANGE IN PAKISTAN
As long as the politics is conducted according to the game-rule of ‘power politics’, the super-rich will continue to control the state and use the state power to consolidate their hold. The interest of masses will remain a remote cause and a slogan to placate the masses. If we have to set up a genuine welfare society in the post-industrial era, the game-rules will have to be changed. Game-rules of politics of the industrial era will not produce the desired result. Politics in the global world has to be ruled by humane considerations. Such a change is not possible unless the masses reclaim the political power from the super / corrupt rich unto those who stand for the emancipation of the people and establishment of an egalitarian society. A welfarist mixed economy must be accompanied by a political system based on a new premise of social service. It is a long term programme. But it must start now. It will take long to break the political hold of moneyed class.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
As long as the politics is conducted according to the game-rule of ‘power politics’, the super-rich will continue to control the state and use the state power to consolidate their hold. The interest of masses will remain a remote cause and a slogan to placate the masses. If we have to set up a genuine welfare society in the post-industrial era, the game-rules will have to be changed. Game-rules of politics of the industrial era will not produce the desired result. Politics in the global world has to be ruled by humane considerations. Such a change is not possible unless the masses reclaim the political power from the super / corrupt rich unto those who stand for the emancipation of the people and establishment of an egalitarian society. A welfarist mixed economy must be accompanied by a political system based on a new premise of social service. It is a long term programme. But it must start now. It will take long to break the political hold of moneyed class.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
Social Politics of Change
SOCIAL POLITICS – THE POLITICS OF CHANGE
A people, developed or developing, seeking to humanize their society need to adopt “social politics” in place of the prevalent “power politics”. Social politics is specially relevant to a low-tech developing country having a large population. Improvement of life of the common people in such a country depends on adoption of social politics. Social politics aims at establishing political as well as economic democracy, for the wellbeing of people. A democratic society, so established, will promote peace and happiness and will move along advancement of knowledge that helps generate wide-spread prosperity and fosters harmony with nature.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
A people, developed or developing, seeking to humanize their society need to adopt “social politics” in place of the prevalent “power politics”. Social politics is specially relevant to a low-tech developing country having a large population. Improvement of life of the common people in such a country depends on adoption of social politics. Social politics aims at establishing political as well as economic democracy, for the wellbeing of people. A democratic society, so established, will promote peace and happiness and will move along advancement of knowledge that helps generate wide-spread prosperity and fosters harmony with nature.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
More About Social Politics
MORE ABOUT SOCIAL POLITICS
A ‘social politician’ is a politically alive person with a strong urge to serve the people, particularly the deprived. He or she initially carries out or participates in the social work touching the lives of the common people. Social work should be of a nature that brings about a visible improvement in the lives of people. Social work includes a development programme for the benefit of common people. The objective of change (in a comprehensive sense) will be best realized if the people of the locality actively take part in executing the social work. Participation of the common people is necessary. It is participation that will change their outlook and social behaviour. They will learn to rely on their own strength and acquire confidence that they can turn the iniquitous society they live into a just society. A leader who fails to bring about a cultural change of the nature will not achieve much in the circumstances we face. The prevalent system projects only those leaders to power who are populists or those who serve the elite and their stooges. A pure social worker, howsoever committed, will rarely become a social politician. However, a person aspiring to become a politician may start social work and, in the process, become a ‘social politician’. We need such a politician. A social politician should take a long-term and futurist view of the socio-economic change to come though pursued in a pragmatic manner. He or she is a democratic change-maker of substance. I would put emphasis on the word substance. If a leader preaches “behavioural change” or “administrative reform” only he or she is not a true change-maker. He or she helps consolidate the prevalent unjust economy.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
A ‘social politician’ is a politically alive person with a strong urge to serve the people, particularly the deprived. He or she initially carries out or participates in the social work touching the lives of the common people. Social work should be of a nature that brings about a visible improvement in the lives of people. Social work includes a development programme for the benefit of common people. The objective of change (in a comprehensive sense) will be best realized if the people of the locality actively take part in executing the social work. Participation of the common people is necessary. It is participation that will change their outlook and social behaviour. They will learn to rely on their own strength and acquire confidence that they can turn the iniquitous society they live into a just society. A leader who fails to bring about a cultural change of the nature will not achieve much in the circumstances we face. The prevalent system projects only those leaders to power who are populists or those who serve the elite and their stooges. A pure social worker, howsoever committed, will rarely become a social politician. However, a person aspiring to become a politician may start social work and, in the process, become a ‘social politician’. We need such a politician. A social politician should take a long-term and futurist view of the socio-economic change to come though pursued in a pragmatic manner. He or she is a democratic change-maker of substance. I would put emphasis on the word substance. If a leader preaches “behavioural change” or “administrative reform” only he or she is not a true change-maker. He or she helps consolidate the prevalent unjust economy.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
A Welfare System for Pakistan - Futuristic View
A WELFARE SYSTEM FOR PAKISTAN – FUTURISTIC VIEW
1) This series proposes changes to the politico-economic system in Pakistan. The proposed changes will bring into being (i) a democratic society having mixed economy (ii) graduating towards an egalitarian system (iii) while the political power will be held by social politicians.
2) As an initial step, we have to emancipate the people through the following reforms in the society’s structure:
(a) Radical land reforms
(b) Abolition / erosion of tribal system
(c) Effective local government
3) Proposed economic system will mainly have the following features:
(i) GDP maximized:
(a) Maximum possible economic activity needs to be knowledge-based though not necessarily labour-saving at least in the initial stage.
(b) Production of commodities and services consumed by common people should be prioritized and incentivized.
(c) Comprehensive facilities should be provided for the development of small farmers and small and medium enterprises to broad-base production of wealth. A stagnant/ receding economy can ill-afford a welfare system.
(ii)Welfare measures ensured by financial resources mustered by improving the tax-GDP ratio, controlling non-development expenditure and curbing corruption.
(iii)Policy framework:
(b))uplift the education and skill level of people in these areas.
(i) Measures for nation’s stability
(a) Make haste to readjust economy to find productive jobs for the unemployed.
(b) Eliminate the causes of poverty as early as possible.
(ii)Measure for Economic stability:
Reduce inequality of wealth in the society as far as possible. After we have taken these measures internal threat to (i) solidarity of the country and (ii) the cyclic crisis in economy will be minimized.
5)Holistic Approach
These measures constitute a compact programme of reforms. If the compact programme is broken and the measures are implemented in isolation from one another, these will not produce desired effect of early emancipation of the people and high rate of growth with justice.
Will the ruling classes let you do the comprehensive reforms in one go? No. The root cause of our problems, therefore, is more political than economic.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
1) This series proposes changes to the politico-economic system in Pakistan. The proposed changes will bring into being (i) a democratic society having mixed economy (ii) graduating towards an egalitarian system (iii) while the political power will be held by social politicians.
2) As an initial step, we have to emancipate the people through the following reforms in the society’s structure:
(a) Radical land reforms
(b) Abolition / erosion of tribal system
(c) Effective local government
3) Proposed economic system will mainly have the following features:
(i) GDP maximized:
(a) Maximum possible economic activity needs to be knowledge-based though not necessarily labour-saving at least in the initial stage.
(b) Production of commodities and services consumed by common people should be prioritized and incentivized.
(c) Comprehensive facilities should be provided for the development of small farmers and small and medium enterprises to broad-base production of wealth. A stagnant/ receding economy can ill-afford a welfare system.
(ii)Welfare measures ensured by financial resources mustered by improving the tax-GDP ratio, controlling non-development expenditure and curbing corruption.
(iii)Policy framework:
- Adopt measures that help create productive jobs.
- Discourage high consumption and encourage savings and investment.
- Review policies and efforts in all walks of life to direct them towards education, health, environment etc.
- Take steps for:
(b))uplift the education and skill level of people in these areas.
- Discourage short-term trading in immovable property and stocks and shares. Also discourage other ‘easy money’ opportunities for accumulation.
- Adopt a comprehensive programme of human development.
(i) Measures for nation’s stability
(a) Make haste to readjust economy to find productive jobs for the unemployed.
(b) Eliminate the causes of poverty as early as possible.
(ii)Measure for Economic stability:
Reduce inequality of wealth in the society as far as possible. After we have taken these measures internal threat to (i) solidarity of the country and (ii) the cyclic crisis in economy will be minimized.
5)Holistic Approach
These measures constitute a compact programme of reforms. If the compact programme is broken and the measures are implemented in isolation from one another, these will not produce desired effect of early emancipation of the people and high rate of growth with justice.
Will the ruling classes let you do the comprehensive reforms in one go? No. The root cause of our problems, therefore, is more political than economic.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
Redeeming the economy of grave crises
REDEEMING THE ECONOMY OF GRAVE CRISES
Wealth generation in the high-tech era in the framework of the free market system leads to a concentration of wealth aggravating inequality between the advanced and developing economies and the resource-rich and resource-poor classes.
Unchecked inequality creates economic crises and social upheaval. Advanced countries curtail welfare programmes. Developing economies which acquired knowledge and human development grow economically. Their political system and civilizational values, however, do not develop at the same speed as does the economy. The time gap cannot be helped nor can the matter be much remedied.
The world has a lesson: high inequality breeds economic and social crisis.
WHAT MAY PAKISTAN DO TO CHECK WIDE INEQUALITY
Measures for alleviating poverty have sometimes been confused with the ones for reducing inequality. Social entrepreneurs do good job for alleviating poverty. But for reducing inequality we have to take a political decision of broad-basing ownership of selective productive assets, such as land reforms.
As long as wide inequality of wealth exists in a society, equality of opportunity does not carry much sense. After social politicians have brought about cultural change in the society, we will have before us a wider choice of patterns of collective ownership (such as cooperatives) for generation of wealth. We would safely nationalize banks and financial firms. The state will then be able to ensure effective control over credit and be able to curb the activities that give rise to economic crisis.
GROWTH IN STATUS QUO
Another question is whether economy can grow within the system as it exists today. Yes, it can “grow” but society as a whole will not “develop”. The prevalent system will make the rich richer. It may to a degree broaden the middle class but any improvement in the conditions of the downtrodden (in the predominant majority) will be insignificant. Despite growth, the country will continue moving from one crisis to the other.
CHOICE
In a nutshell, we have a choice: (i) to bear with the status quo or (ii) bring about social change. Pakistan today has many versions of social change. Billionaires and multi-millionaires raise populist slogans of social change. Then we have the backward-looking version of change. We also have a half-way approach to social change (such as behavioural change). We, however, need (forward-looking) genuine social change. This starts with land reforms and leads the way to establishing an egalitarian and stable system.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
Wealth generation in the high-tech era in the framework of the free market system leads to a concentration of wealth aggravating inequality between the advanced and developing economies and the resource-rich and resource-poor classes.
Unchecked inequality creates economic crises and social upheaval. Advanced countries curtail welfare programmes. Developing economies which acquired knowledge and human development grow economically. Their political system and civilizational values, however, do not develop at the same speed as does the economy. The time gap cannot be helped nor can the matter be much remedied.
The world has a lesson: high inequality breeds economic and social crisis.
WHAT MAY PAKISTAN DO TO CHECK WIDE INEQUALITY
Measures for alleviating poverty have sometimes been confused with the ones for reducing inequality. Social entrepreneurs do good job for alleviating poverty. But for reducing inequality we have to take a political decision of broad-basing ownership of selective productive assets, such as land reforms.
As long as wide inequality of wealth exists in a society, equality of opportunity does not carry much sense. After social politicians have brought about cultural change in the society, we will have before us a wider choice of patterns of collective ownership (such as cooperatives) for generation of wealth. We would safely nationalize banks and financial firms. The state will then be able to ensure effective control over credit and be able to curb the activities that give rise to economic crisis.
GROWTH IN STATUS QUO
Another question is whether economy can grow within the system as it exists today. Yes, it can “grow” but society as a whole will not “develop”. The prevalent system will make the rich richer. It may to a degree broaden the middle class but any improvement in the conditions of the downtrodden (in the predominant majority) will be insignificant. Despite growth, the country will continue moving from one crisis to the other.
CHOICE
In a nutshell, we have a choice: (i) to bear with the status quo or (ii) bring about social change. Pakistan today has many versions of social change. Billionaires and multi-millionaires raise populist slogans of social change. Then we have the backward-looking version of change. We also have a half-way approach to social change (such as behavioural change). We, however, need (forward-looking) genuine social change. This starts with land reforms and leads the way to establishing an egalitarian and stable system.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
Proposed socio-political system
PROPOSED SOCIO-POLITICAL SYSTEM
Success of the system (of social politics) depends upon:
(1) political party organized for social change.
(2) Capacity, dedication and systematic efforts of the party’s(a)think tank, (b) leaders and (c) cadre.
(3) Resources mustered by the party and
(4) Strategy and tactics of the party leadership during the struggle for power.
Leadership
To be eligible for an office of the party a member will need to take part in social politics and commit to reducing socio-economic inequality in the society and eliminating the root causes of poverty. A person who carries a general perception of corruption will be ineligible for any office of the party at any level.
Cadre
The cadre shall be properly educated about the programme of social change.
Membership
Membership of the party, however, will be open to all citizens of Pakistan who subscribe to the programme of the party. The party has to understand that it will achieve success only in the medium term. A party of change will fail if it seeks or gets power in a short run.
Message of the Party and its Programme Pakistan needs a deeper change in important spheres of life – culture, politics and economy. The change must be non-violent. (1) The mechanism of change will be people’s participation in community-development / community-welfare that may bring up a new breed of politicians (social politicians) who spearhead the movement for social change.
(2) A higher level of social consciousness, acquired by people through participation in community projects, will promote a creative culture that will help transform the prevalent money-led politics into social politics. Socio-economic programme will project the party into power to bring about social change.
(3) Success of a welfare mixed economy will be ensured by the socio-economic order designed as described above.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
Success of the system (of social politics) depends upon:
(1) political party organized for social change.
(2) Capacity, dedication and systematic efforts of the party’s(a)think tank, (b) leaders and (c) cadre.
(3) Resources mustered by the party and
(4) Strategy and tactics of the party leadership during the struggle for power.
Leadership
To be eligible for an office of the party a member will need to take part in social politics and commit to reducing socio-economic inequality in the society and eliminating the root causes of poverty. A person who carries a general perception of corruption will be ineligible for any office of the party at any level.
Cadre
The cadre shall be properly educated about the programme of social change.
Membership
Membership of the party, however, will be open to all citizens of Pakistan who subscribe to the programme of the party. The party has to understand that it will achieve success only in the medium term. A party of change will fail if it seeks or gets power in a short run.
Message of the Party and its Programme Pakistan needs a deeper change in important spheres of life – culture, politics and economy. The change must be non-violent. (1) The mechanism of change will be people’s participation in community-development / community-welfare that may bring up a new breed of politicians (social politicians) who spearhead the movement for social change.
(2) A higher level of social consciousness, acquired by people through participation in community projects, will promote a creative culture that will help transform the prevalent money-led politics into social politics. Socio-economic programme will project the party into power to bring about social change.
(3) Success of a welfare mixed economy will be ensured by the socio-economic order designed as described above.
(Mahmood Mirza)
Follow www.MahmoodMirza.pk
