Sunday, January 19, 2014

Musharraf Accelerated Financial and Human Capital Growth in Pakistan

Pakistan experienced rapid economic and human capital growth in years 2000 to 2008 on President Pervez Musharraf's watch. Savings, investments and exports hit new records and the rate of increase in human development reached new highs not seen before or since this period.

Savings and Investments:

Domestic savings rate reached 18% of the GDP and foreign direct investment (FDI) hit a record level of $5.4 billion in 2007-8. This combination of domestic and foreign investments nearly tripled the size of the economy from $60 billion in 1999 to $170 billion in 2007, according to IMF. Exports nearly tripled from about $7 billion in 1999-2000 to $22 billion in 2007-2008, adding millions of more jobs. Pakistan was lifted from a poor, low-income country with per capita income of just $500 in 1999 to a middle-income country with per capita income exceeding $1000 in 2007.

Pakistan Per Capita Income 1960-2012. Source: World Bank 


The PPP government summed up General Musharraf's accomplishments well when it signed a 2008 Memorandum of Understanding with the International Monetary Fund which said:

"Pakistan's economy witnessed a major economic transformation in the last decade. The country's real GDP increased from $60 billion to $170 billion, with per capita income rising from under $500 to over $1000 during 2000-07". It further acknowledged that "the volume of international trade increased from $20 billion to nearly $60 billion. The improved macroeconomic performance enabled Pakistan to re-enter the international capital markets in the mid-2000s. Large capital inflows financed the current account deficit and contributed to an increase in gross official reserves to $14.3 billion at end-June 2007. Buoyant output growth, low inflation, and the government's social policies contributed to a reduction in poverty and improvement in many social indicators". (see MEFP, November 20, 2008, Para 1)

Human Capital Development: 

In addition to the economic revival, Musharraf focused on social sector as well. Pakistan's HDI grew an average rate of 2.7% per year under President Musharraf from 2000 to 2007, and then its pace slowed to 0.7% per year in 2008 to 2012 under elected politicians, according to the 2013 Human Development Report titled “The Rise of the South: Human Progress in a Diverse World”.



Primary Enrollment Source: Economic Survey of Pakistan

Youth Literacy Rate Source: Economic Survey of Pakistan

Overall, Pakistan's human development score rose by 18.9% during Musharraf years and increased just 3.4% under elected leadership since 2008. The news on the human development front got even worse in the last three years, with HDI growth slowing down as low as 0.59% — a paltry average annual increase of under 0.20 per cent. Going further back to the  decade of 1990s when the civilian leadership of the country alternated between PML (N) and PPP,  the increase in Pakistan's HDI was 9.3% from 1990 to 2000, less than half of the HDI gain of 18.9% on Musharraf's watch from 2000 to 2007.

R&D Spending Jumped 7-fold as % of GDP 1999-2007 Source: World Bank

Acceleration of HDI growth during Musharraf years was not an accident.  Not only did Musharraf's policies accelerate economic growth, helped create 13 million new jobs, cut poverty in half and halved the country's total debt burden in the period from 2000 to 2007, his government also ensured significant investment and focus on education and health care. The annual budget for higher education increased from only Rs 500 million in 2000 to Rs 28 billion in 2008, to lay the foundations of the development of a strong knowledge economy, according to former education minister Dr. Ata ur Rehman. Student enrollment in universities increased from 270,000 to 900,000 and the number of universities and degree awarding institutions increased from 57 in 2000 to 137 by 2008. Government R&D spending jumped from 0.1% of GDP in 1999 to 0.7% of GDP in 2007. In 2011, a Pakistani government commission on education found that public funding for education has been cut from 2.5% of GDP in 2007 to just 1.5% - less than the annual subsidy given to the various PSUs including Pakistan Steel and PIA, both of which  continue to sustain huge losses due to patronage-based hiring.

Pakistan's High-Tech Exports Tripled as % of Manufactured Exports. Source: World Bank


To see a discussion of the above subject and the current situation, please watch the following video:

http://vimeo.com/84504051



Civil-military Stand-Off on Musharraf Trial; Musharraf Govt's Performance Record from WBT TV on Vimeo.

Related Links:

Haq's Musings

Musharraf Earned Legitimacy By Good Governance

Musharraf Wants to Face Trial; Military Opposed to it

Saving Pakistan's Education

Political Patronage Trumps Public Policy in Pakistan

Dr. Ata-ur-Rehman Defends Pakistan's Higher Education Reforms

Twelve Years Since Musharraf's Coup

Musharraf's Legacy

Pakistan's Economic Performance 2008-2010

Role of Politics in Pakistan Economy

India and Pakistan Compared in 2011

Musharraf's Coup Revived Pakistan's Economy

What If Musharraf Had Said No?

Human Development in Musharraf Years

19 comments:

M said...

How much power generation capacity was added during the 8yrs of Musharraf regime?

Riaz Haq said...

M: "How much power generation capacity was added during the 8yrs of Musharraf regime?"

Overall 2900MW of electricity was added to national generation capacity. The new energy projects initiated included the Ghazi Barotha hydro electricity project (1600MW), the Chashma-II nuclear electricity plant (300MW). The Neelum-Jhelum hydroelectricity project was initiated (1800 MW), the Satpara Power project in Skardu, and the Naltar power project in Gilgit.

http://www.thenews.com.pk/Todays-News-9-222331-Lest-we-forget

Majumdar said...

Prof Riazul Haq sb,

2900 MW in 8 years!!! Even Bhindia which you are so fond of deriding added 20000 MW p.a. for the last 2-3 years. Power was Mushy's big failure.

Regards

Riaz Haq said...

Here's an ET story on graduate student enrollment in Pakistan:

The Higher Education Commission (HEC) has produced 8,161 PhD scholars up till 2012. As many as 10 to 15 scholars are currently completing their degrees each week, HEC Media Project Manager Murtaza Noor said on Tuesday.
As many as 1,039 scholars have completed PhDs in agriculture and veterinary sciences, 1,211 in arts and humanities, 1,692 in biology and medical science, he said. As many as 1,978 scholars have been awarded PhDs in social sciences, 1,810 in physical science, 288 in engineering and technology and 143 in business education.
“Pakistan is publishing more research papers per capita than India,” he said.
The scholars completing their PhDs are placed in different universities under the Interim Placement of Fresh PhDs Programme (IPFP), said Noor.

The HEC provides several incentives to these scholars, including a Rs0.5 million research grant to each returning scholar, he said.
“Hundreds of fresh PhDs from foreign universities are being inducted into universities across the country,” Noor said, “The number of PhD faculty in public universities has increased by almost 50 per cent…from 4,203 to 6,067 over the last two years.”
“Scholars are also being sent abroad to pursue studies in leading universities,” said Noor.
The number of PhD students enrolled in universities has increased by over 40 per cent [from 6,937 to 9,858 students] in the past year.
More than 28,122 students are registered for the MPhil/MS. The number of MPhil/MS students has increased by 65 per cent [from 16,960 to 28,122] over the past two years, he said.
The number of PhDs awarded has increased from 628 to 927 in the last three years. The number is expected to surge exponentially in the future as more PhD faculty and students join universities, Murtaza said.


http://tribune.com.pk/story/577780/intellectual-boom-pakistan-is-publishing-more-research-papers-per-capita-than-india/

Riaz Haq said...

Majumdar: "2900 MW in 8 years!!!"

It's because Pakistan did not and does not have the issue of insufficient installed capacity. The issue since Musharraf left has been accumulated unpaid bills to power generation companies which are refusing to buy fuel and operate the plants at full capacity unless they are paid past dues. Nawaz Sharif paid them $5 billion this year and it dramatically reduced load shedding in Pakistan.

What Pakistan must do is crack down on power thieves and debt beats and raise rates to match production costs which are rising with cost of fuel.

Anonymous said...

Human Capital and Economic Growth: Time Series Evidence from Pakistan

Faisal Sultan Qadri, Faisal and Dr. Abdul Waheed, Waheed (2011): Human Capital and Economic Growth: Time Series Evidence from Pakistan. Published in: Pakistan Business Review , Vol. 1, No. Jan 2011 (2011): pp. 815-833.

Human capital is generally considered as a positive contributor in the economic growth. In this study, we estimate this relationship using time series data of Pakistan for the period 1978 to 2007. A health adjusted education indicator for human capital is used in the standard Cobb-Douglas production function confirms the long run positive relationship between human capital and the economic growth in Pakistan. A sensitivity analysis was also performed in order to check the robustness of the initial findings. The estimation results supported the findings of the previous studies that human capital is positively related to growth and also that the results are robust. The health adjusted education indicator was found to be a highly significant determinant of economic growth, which indicates that both the health and education sectors should be given special attention in order to ensure long run economic growth.

http://mpra.ub.uni-muenchen.de/30654/

Majumdar said...

Prof Riaz ul Haq sb,

It's because Pakistan did not and does not have the issue of insufficient installed capacity.

You seriously consider all those 1000s of MWs of liquid fuel based power plants as real "capacity"?

In any case, you build power capacities for future demand not current demand 'cos you take anywhere between 5-10 years to build power plants from planning to production.

Regards

Riaz Haq said...

Majumdar: "In any case, you build power capacities for future demand not current demand 'cos you take anywhere between 5-10 years to build power plants from planning to production."

There were several major water and power projects started during Musharraf years...Neelum-Jhelum, Bhasha, Chashma 2, 3 and 4, Gomal Zam, Mirani Dam, etc etc

Riaz Haq said...

86% of Pakistanis say Musharraf should not be tried alone for his actions of declaring emergency in 2007, according to a nationwide Gallup survey:

Majority Pakistanis (86%) believe individuals privy to and in favor of declaring emergency in the country in 2007 should be tried for treason along with Musharraf. GILANI POLL/GALLUP PAKISTAN


According to a Gilani Research Foundation Survey carried out by Gallup Pakistan, majority Pakistanis (86%) believe individuals privy to and in favor of declaring emergency in the country in 2007 should be tried for treason along with Musharraf.

A nationally representative sample of men and women, from across the four provinces was asked “In your opinion, should individuals who were privy to and in favor of former President Musharraf’s act of declaring emergency in the country in 2007 be tried for treason under Article 6 or do you believe that Musharraf should be tried alone?” Responding to this, 86% were in favor of trying all individuals associated with declaring emergency in 2007 while only 12% think Musharraf should be tried for treason alone. 2% did not respond.

http://www.gallup.com.pk/pollsshow.php?id=2014-01-21

Riaz Haq said...

Here's a Express Tribune report on Pakistan Education Atlas 2013:

For the last few years, Pakistan’s adult literacy rate has stagnated at 58% – almost half the country’s adult population is unable to read or write. The figure is not surprising when you consider that only 50% of the country’s rural population has ever attended school; the number is higher for urban populations, at 73%.
According to the Pakistan Education Atlas 2013, launched on Tuesday, improvement in the education sector moves at a snail’s pace, with 32% of children aged 5-9 years out of school. 17% of primary schools consist of a single room.

It’s not all grim news, though – 91% of girls make it from primary school to middle school (higher than the number of boys, at 78%).
State Minister for Education, Trainings and Standards in Higher Education Balighur Rehman formally launched the report on Tuesday and reiterated the government’s pledge to improve education in the country. Even though education has been devolved to provinces, he said, they ‘have agreed to the constitution of a National Curriculum Commission to bring the education system on the same page across Pakistan’. Speaking at the launch, World Food Programme Representative and Country Director in Pakistan Lola Castro said the WFP had contributed to the report as it wished to ‘support and promote this important educational undertaking’ in the country.
According to the report, almost seven million children are out of primary schools in the country. “The quality of education across multiple levels is also lagging by most standards,” the report states. Some provinces fare relatively better than others in the education sector, with a ‘survival rate’ – the percentage of students completing primary school education – of 96% in Islamabad Capital Territory and a robust 95% in Gilgit-Baltistan. Khyber Pakhtunkhwa clocks in at 64%. The number is lowest in Balochistan and Sindh – 43% each. Survival rates in Punjab stand at 56%, 48% in Fata.

From primary to middle school
The results are encouraging with regards to the number of students able to reach middle school in Pakistan, particularly in Fata, where the number has crept up from 44% in 2010 to 61% this year. 100% of Islamabad students make it to middle school and 87% in Punjab. The number stands at 89% in G-B, 72% in K-P, 69% in Azad Jammu Kashmir and 67% in Balochistan. Sindh has the lowest number of students reaching middle-school level, at 59%.
Poor grade
Students in 64% of primary schools in the country have access to drinking water – in Azad Jammu Kashmir, the number plummets to 27%. In Islamabad, 185 schools out of 191 have access to clean water.
Meanwhile, 49% of government primary schools have electricity. Of more than 10,000 schools in Balochistan, only 1,662 schools are provided with electricity....


http://tribune.com.pk/story/687360/pakistan-education-atlas-2013-education-survey-reveals-mixed-bag-of-results/

Riaz Haq said...

The experience of Nawaz Sharif’s earlier terms in office (1990-1993, 1997-1999) shows that Nawaz Sharif and his close associates overestimated their electoral clout in dealing with the military. In January 1993, differences developed between Prime Minister Nawaz Sharif and President Ghulam Ishaq Khan on the selection of the army chief after General Asif Nawaz Janjua died of a heart attack. Nawaz Sharif’s famous speech of not accepting anybody’s dictates in April ultimately brought him in conflict with the army top leadership when it worked towards seeking the resignations of Nawaz Sharif and Ishaq Khan to break the political deadlock in July 1993. Another example of poor management of civil-military relations is Nawaz Sharif’s interaction with the army top brass in the post-Kargil period, especially in August-October 1999. Shahbaz Sharif went to Washington to obtain American support for democracy. This support could not secure civilian rule as Nawaz Sharif attempted to remove General Pervez Musharraf in a dramatic manner and appointed his protégé as the army chief.........In a country like Pakistan, where internal and external security pressures are intense, the military cannot be pushed to the sidelines. Civilian leaders will have to change Pakistan’s internal security profile and build peace on its borders in order to cut back on the role and status of the military.If Pakistan continues to suffer from violence and terrorism and its ultranationalists want to wage war against India, dominate Afghanistan and keep Iran under pressure, the military and its needs and requirements will override other considerations influencing policymaking and its execution..............At a time when the “performance legitimacy” of the PML-N government has slipped downwards, it has embarked on two extremely contentious policies: talks with the TTP and the trial of Pervez Musharraf for “high treason”. The talks with the Taliban in an apologetic manner cannot go on for an indefinite period. The civil government will have to produce positive results by the end of April in terms of the TTP giving up violence and agreeing to work within the framework of the Constitution. The army cannot afford to let the summer of 2014 pass by and let the Taliban consolidate their position in the tribal areas. This will increase the cost of defending Pakistan’s security for the military in 2015.....The civilian government needs to undertake a dispassionate review of its policies on both issues. Stepping back on these issues may subject the civilian government to criticism by a section of political leaders. However, the cost is likely to be higher for sleepwalking into the Taliban trap in the name of dialogue and settling old scores with Musharraf. ...http://tribune.com.pk/story/692158/nawaz-sharifs-predicament/

Riaz Haq said...

"Speaking fee for #Musharraf in $150K-200K range for a day," says Embark USA President David B. Wheeler. #Pakistan

http://www.newsweek.com/pakistans-musharraf-lucrative-speaking-fees-88033

"The [speaking] fee for Musharraf would be in the $150,000-200,000 range for a day," says Embark President David B. Wheeler, "plus jet and other V.I.P. arrangements on the ground." Wheeler says Clinton, for whom Embark has arranged speaking engagements in the Middle East, commands up to $250,000 per appearance. "If we did multiple events in multiple cities, [Musharraf] could get closer to the $500,000 to $1,000,000 range [for a series of talks]," he said. Embark, which promises "unique experiences that educate, entertain and enlighten," has also booked speeches for former U.S. President George H.W. Bush and former U.S. Secretary of State Colin Powell.

Pakistanis who know Musharraf well say this is good news for the former president, who is not believed to have salted away a fortune as some of his predecessors have done (Musharraf will only receive a modest army retirement pension). But he is a long way from the poor house. Workers are putting the finishing touches on a mansion, said to be worth some $2 million dollars, that he is building on five acres of prime land just outside Islamabad. Since his resignation he has been playing golf and tennis with friends, surrounded by heavy security, and is also planning to write a sequel to his successful 2006 autobiography, "In the Line of Fire," which could easily net him another seven-figure windfall.

Riaz Haq said...

Joint #US-#Pakistan #energy collaboration at #ASU energizes entrepreneurial aspirations 4 #Pakistani scholars

https://asunow.asu.edu/20161223-project-energizes-entrepreneurial-aspirations-pakistani-scholars

A second cohort of Pakistani engineering scholars has completed their entrepreneurship course of study at Arizona State University as part of the USPCAS-E program. In addition to entrepreneurship, the students are also studying engineering and policy in an effort to improve their country’s energy prospects.

U.S.-Pakistan Centers for Advanced Studies in Energy is a U.S. Agency for International Development project focused on applied research relevant to Pakistan’s energy needs. The project, which is a partnership between Arizona State University and two leading Pakistani universities, aims to produce skilled graduates in the field of energy.

ASU entrepreneurship professor Kenneth Mulligan said: “The intention of the program is to improve availability of clean, reliable power in Pakistan. Strategic innovation and entrepreneurship provides a pathway for widespread implementation of their innovative technical solutions.

“Pakistan is subject to rolling blackouts that impede stability, progress and business. The problems faced in Pakistan are not easy problems, which is why coming up with solutions that reside outside the box are so critical,” said Mulligan, who has taught and mentored both cohorts so far.

“They get to use causative thinking, systems analysis and technical feasibility to solve complex technical problems in energy generation and distribution. However, this problem-solving approach and skillset is insufficient in the development of innovative and disruptive products and technologies.”

Riaz Haq said...

Where are online workers located? The international division of digital gig work

Pakistan ranks 4th after India, Bangladesh and United States, according to Oxford Internet Institute's Online Labour Index top occupation by country, 1-6 July 2017


http://ilabour.oii.ox.ac.uk/where-are-online-workers-located-the-international-division-of-digital-gig-work/

Riaz Haq said...

International conference on emerging technologies: Chairman HEC for translating opportunities into reality

https://www.pakistantoday.com.pk/2017/12/28/international-conference-on-emerging-technologies-chairman-hec-for-translating-opportunities-into-reality/

Higher Education Commission (HEC) Chairman Dr Mukhtar Ahmed has stressed on the need for translating the opportunities created by new technologies into reality while ensuring a positive use of advanced gadgets.

He said that the HEC is committed to facilitating universities and encouraging research activities. “We need to conduct researches that cast positive impacts on society and mitigates the miseries of humanity,” he underlined.

He expressed these views while speaking as a chief guest at the two-day 13th International Conference on Emerging Technologies (ICET) jointly organized by the Capital University of Science and Technology (CUST), in collaboration with the HEC and Institute of Electrical and Electronics Engineers (IEEE) Islamabad.

CUST Vice-Chancellor Dr Mansoor Ahmed, Professor Aamer Iqbal Bhatti, ICET General Chair and a large number of faculty members and students were also present on the occasion.

The HEC Chairman pointed out that water and food security will become vital issues in the near future. He emphasised that the solution to all social ills including terrorism, poverty and unemployment lies in the promotion of education.

“It is the era of a knowledge economy and no nation can make progress without promoting education,” he stated. He said that the universities are responsible for imparting education, creating knowledge and integrating it into society. He urged the faculty to pay special attention to the training of students, as training is imperative for a peaceful society.

Shedding light on the achievements of the HEC during the last 15 years, the chairman said that HEC set off on its journey when Pakistan had only 59 universities, adding that the number of universities in the country has now reached 188. He maintained that the HEC has been putting strenuous efforts to promote ICT in the country.

“Pakistan has one of the best ICT setups of South Asia”, he informed.

He also announced that the HEC plans to establish centres of excellence in data and artificial intelligence.

Sharing the background of the conference, Professor Aamer Iqbal Bhatti said that the first international conference on emerging technologies was held in 2005. He said CUST lays great emphasis on applied research and the 13th ICET is a testimony to that fact. He appreciated the role of the HEC and IEEE Islamabad in collaborating to organise the conference.

Riaz Haq said...

Measuring human capital: a systematic analysis of 195 countries and territories, 1990–2016
Prof Stephen S Lim, PhD
Rachel L Updike, BA
Alexander S Kaldjian, MSc
Ryan M Barber, BS
Krycia Cowling, PhD
Hunter York, BA
et al

https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(18)31941-X/fulltext

In 2016, Finland had the highest level of expected human capital of 28·4 health, education, and learning-adjusted expected years lived between age 20 and 64 years (95% uncertainty interval 27·5–29·2); Niger had the lowest expected human capital of less than 1·6 years (0·98–2·6). In 2016, 44 countries had already achieved more than 20 years of expected human capital; 68 countries had expected human capital of less than 10 years. Of 195 countries, the ten most populous countries in 2016 for expected human capital were ranked: China at 44, India at 158, USA at 27, Indonesia at 131, Brazil at 71, Pakistan at 164, Nigeria at 171, Bangladesh at 161, Russia at 49, and Mexico at 104. Assessment of change in expected human capital from 1990 to 2016 shows marked variation from less than 2 years of progress in 18 countries to more than 5 years of progress in 35 countries. Larger improvements in expected human capital appear to be associated with faster economic growth. The top quartile of countries in terms of absolute change in human capital from 1990 to 2016 had a median annualised growth in gross domestic product of 2·60% (IQR 1·85–3·69) compared with 1·45% (0·18–2·19) for countries in the bottom quartile.

Despite 25 years of progress in many dimensions of human capital, in 2016 these levels were not universally high (Figure 2, Figure 3). The top five countries were unchanged from 1990 except for the replacement of Canada with Taiwan (province of China). In 2016, all countries in western Europe, and many in central and eastern Europe, had more than 20 years of expected human capital, as did South Korea, Japan, China, Singapore, Taiwan (province of China), Turkey, Brunei, Australia, New Zealand, USA, and Canada. Despite improvements, 24 countries in 2016 continued to have expected human capital below 5 years, with the five lowest-ranked countries being Niger (1·6 years; 95% UI 0·98–2·6), South Sudan (2·0 years; 1·2–3·0), Chad (2·7 years; 1·7–3·2), Burkina Faso (2·8 years; 1·8–4·2), and Mali (2·8 years; 2·0–3·8).
-----------

Human capital refers to the attributes of a population that, along with physical capital such as buildings, equipment, and other tangible assets, contribute to economic productivity.1 Human capital is characterised as the aggregate levels of education, training, skills, and health in a population,2 affecting the rate at which technologies can be developed, adopted, and employed to increase productivity.3 The World Bank has brought new attention to this topic through its recently introduced Human Capital Project,4 which aims to “understand the link between investing in people and economic growth, and to accelerate financing for human capital investments.” A basic input needed for this aim to be fulfilled is an internationally comparable index of human capital, which currently does not exist. This study seeks to fill this global measurement gap.3
Although evidence supports human capital as a driver of growth, the World Bank has argued that investments in human capital are too low in low-income and middle-income countries.5 Much of the World Bank's investments focus on physical rather than human capital.5 Only 1·5% of the World Bank International Development Association concessional grants are for health and 1·9% are for education.6 As countries graduate to borrowing from the non-concessional International Bank for Reconstruction and Development framework, the shares for health increase to 4·2% and to 5·2% for education.6 A focus on building physical assets might also be driven by time horizons; such projects can yield returns sooner than investing in children's health and education, and the political process in many nations might reward short-run returns.6

Riaz Haq said...

Winning #Elections In #India: #Food price #Inflation not double-digit #GDP growth, determines the fate of incumbents. Local issues trump national issues. #Corruption charges hurt more than convictions. Voters sympathize with jailed leaders. #Modi https://www.ndtv.com/book-excerpts/ruchir-sharmas-guide-to-winning-elections-in-india-1988612 via @ndtv

One of the most important lessons I have learned on the road is that ideas - particularly economic ideas - do not play the same role in India that they do elsewhere. In more advanced democracies the main ideological divide involves the role of the state versus the free market in distributing wealth. In India everyone is a statist. ....

Of all the numbers I have run on what determines the outcome of Indian elections, one of the most surprising to me is how little political lift chief ministers get from palpable economic success. Even when their state has been growing faster than 8 per cent-a rate that normally puts an economy in the 'miracle' class-their chances of re-election improve only slightly, from one in three to 50:50. Often, voters in mofussil India do not feel a dramatic lift even from a rate of growth that makes the Mumbai's stock market bubble and the capital elite assume that everyone feels the fizzy good times. Growth helps at the margin, but even spectacular growth is no guarantee of victory - particularly when the rural majority is not feeling the boom.

The number more likely to decide the fate of incumbents is inflation, particularly food price inflation. Unlike double-digit GDP growth, the impact of double-digit inflation rarely goes unfelt or unremarked by voters. Often they can recite recent price increases for onions or ghee down to the rupee, because these numbers determine what - or whether - their family eats. High inflation has presaged the fall of leaders from Rajasthan Chief Minister Shekhawat in 1998 to Prime Minister Manmohan Singh in 2014. But deflation can have the same effect. Lately, farmers have told us they planned to vote against their incumbent government out of frustration over depressed crop prices.

Local issues often trump national ones, and vary dramatically from state to state. While a prohibition state like Gujarat demands that visitors reveal 'the name of the drunkard' seeking to buy alcohol, Tamil Nadu struggles to wean its alcoholics off booze and its state bureaucracy off alcohol tax revenue. Today the clouds of smog stretching across the subcontinent are a big issue in Delhi, a nonissue in provincial cities and towns, where voters are less focused on air quality than more pressing concerns such as finding a functioning school for their children. Even the national corruption scandals that periodically consume Delhi matter less outside the biggest cities than scandals involving state leaders.

Alongside inflation, corruption is the other big incumbent killer, though it works in strange ways. Leaders rarely make it five years without facing some charge of corruption, and many of them can survive so long as the charge doesn't come to dominate the election storyline. But sweeping corruption charges have been contributing to the defeat of leaders at least since Rajiv and the Bofors case, and we have seen scandal help topple Vasundhara Raje on her ties to a flamboyant 'super chief minister', Mayawati on the self-indulgence of her own statues and palaces, and many others.

---
Excerpted with permission of Penguin Random House India from 'Democracy On The Road' by Ruchir Sharma.

Riaz Haq said...

Bilal I Gilani
@bilalgilani
Close to 350k engineers in Pakistan ( registered with engineering council)

Largest number is electrical , followed by civil engineers

https://twitter.com/bilalgilani/status/1577366163700465664?s=20&t=WBzayqQ-JdSiEUMBO2EdXA

Riaz Haq said...

HOW ROADS CHANGED THARPARKAR


by Arif Hasan

https://www.dawn.com/news/1714144

The main recommendation of the 1987 report on drought and famine conditions in Thar, prepared by the author, was that the changes taking place in Thar could only be consolidated through increased mobility and linkages of Thar with the rest of Pakistan in general and Karachi and Hyderabad in particular.

It was felt that, if a road-building programme did not take place, the inequities in Thari society would increase, since those who could hire or possess four-wheel drives would be the main beneficiaries of Thar’s huge mineral and livestock potential.

For mobility and linkages to happen, a road-building programme had been recommended, which envisaged linking the four Thar taluka headquarters with one another and with the national road network. However, it was not till the Musharraf era (2000-08) that a road-building programme commenced.

The roads have made transportation cheaper and easier. The old six-wheeler kekra [World War II era American truck], which was slow and consumed enormous amounts of energy plying on the desert tracks, has been replaced by normal Bedford trucks, which are cheaper to run and can carry 250 maunds as opposed to 150 maunds carried by the kekras.

It is claimed by the transporters that, earlier, it used to take three hours from Mithi to Naukot, but now this has been reduced to one hour. They also claim that the cost of petrol/diesel and maintenance of vehicles have been reduced by 20 per cent.

With the building of the road network, trade and commerce has increased substantially. Thar’s agricultural produce now goes to distant markets — six to seven lorries per day carry onions from Nagarparkar to Lahore, and vegetables and fruit from other areas of Sindh and Punjab are now easily available in Thar.

Unlike the situation that prevailed 15 years ago, there are cattle markets in the taluka headquarters, so the Tharis do not have to make the long trek on foot to Juddo to sell their animals. Shops carrying industrially produced household food have multiplied and sell items such as baby diapers, something quite unimaginable before. Every hour an air-conditioned bus, complete with TV and Wi-Fi (owned mainly by Pakhtuns and people of Mianwali based in Karachi) leaves for or arrives in Mithi.

The number of taxis operating in Thar has increased from 150 to over 400, while the qingqis in Mithi have increased from over 150 to over 300 since 2013. These taxis carry passengers not only within Thar but to distant locations all over Pakistan, while the qingqis have almost completely replaced transport animals such as camels and bullocks.

Bank loans for the purchase of taxis are available, but to buy the qingqis and trucks, one can only borrow from the informal market. Interest rates against loans are high and vary depending on how much advance payment can be made by the borrower, or if property or land can be mortgaged against the loan. Spare parts and mechanics for the maintenance of the taxis and qingqis are locally available, which was not so in 2000 and, very often, the vehicles had to be taken to Umerkot for maintenance purposes.

Almost all these different types of vehicles have no insurance, since the owners find insurance rates far too expensive and prefer to put their trust in God. The qingqi and taxi owners have no association but are of the opinion that they desperately need one to negotiate with government agencies and fight against the bhatta [protection money] that the police extorts from them.

An association is also necessary to resist pressure from national transporters’ associations, who coerce the Thari transporters to call a strike on their advice. This was not an issue in the past, because the kekras, which the new vehicles replaced, were collectively owned by seths in Umerkot and Naukot. One truck driver pointed out that there was a desperate need for a driving school in Mithi, because people who were learning to drive were dangerous and caused a large number of animal deaths.