Showing posts with label Hope. Show all posts
Showing posts with label Hope. Show all posts

Friday, May 12, 2023

Pakistan Now: Darkest Before Dawn?

Pakistan is experiencing one of the darkest periods of its history. Political instability is eroding confidence in the nation's future. Declining economic growth and high inflation are hurting the people of all strata of society, particularly the poor whose numbers are rapidly rising. Is there any hope left for the country? Is it a case of the "darkest before dawn"? How do investors see it? 

Ex PM Imran Khan (R) with President Erdogan

Writing in the Time magazine immediately after the recent arrest of former Prime Minister Imran Khan, American investor, author and commentator Zachary Karabell who has invested in Pakistani startups sees rare hope for Pakistan. He sees Pakistan where Turkey was back in 2001-2003, "when a series of elections brought Recep Erdogan to power even as he was repeatedly disqualified by a military that was determined to retain control". Here's an excerpt of his article titled "The Contrarian Case for Pakistan" published in the current issue of Time Magazine: 

"To some degree, this is an argument of “well, it’s not as bad as they say.” But it’s also a way of highlighting that Pakistan today may be a case of darkest before the dawn. With elections schedule for the fall, and with Imran Khan the most likely victor of said elections unless is his arrest leads to his disqualification as a candidate, Pakistan is in a very similar position to where Turkey was in 2001-2003, when a series of elections brought Recep Erdogan to power even as he was repeatedly disqualified by a military that was determined to retain control. Imran Khan has many of the same strengths and weaknesses of Erdogan, who after championing Turkish democracy and economic reform, then turned into the very type of corrupt autocrat that he had once fought against. But he nonetheless unleashed massive economic potential in Turkey and has left its 80 million people materially better off over the past 20 years, even as hyperinflation and Erdogan’s recent economic ineptitude is now eroding that. Should Imran Khan return to the head the government, he may well usher in a similar period in Pakistan, even as he has his own authoritarian and demagogic tendencies". 

Here are some of the key points Karabell makes in his opinion piece:

1. Pakistan has a real and dynamic private sphere that is not only seeing a start-up and new business ecosystem that has attracted hundreds of millions of dollars a year for the past few years but operates freely in a way that would be inconceivable in many other countries. Compare it to Egypt, for example, which receives far less negative attention and more foreign money yet is almost entirely dominated by a military dictatorship. Or Algeria. And then there are countries which barely function at all, dominating a whole swath of Sub-Saharan Africa but also dot central Asia (Tajikistan anyone?).

2. Pakistan is the fifth most populous country in the world with 230 million souls, a median age of barely 22 and two-thirds of the population under the age of 30. That means unlike most of the world, it has a favorable demographic future.

2. Unlike, say, Nigeria, where the ethnic divisions and decades of corruption mean that it well-nigh impossible to treat the country as one unified market for goods and services, Pakistan is one common market even with its various tribal divisions.

Pakistan Population Youngest Among Major Asian Nations. Source: Nikkei Asia

Karabell concludes with the following: 

Pakistan is on a cusp. We should honor the fact that whichever way the consensus believes it will go, the country is also poised to breakout on the upside. Which path will only be clear in retrospect, but we should pay more attention to the potential of things going right along with the legitimate focus on all that is going wrong.

Thursday, September 24, 2009

Do South Asian Slums Offer Hope?

There is a growing wave of urbanization in the developing world as the cities are drawing people away from subsistence farming to jobs in the industrial and service sectors. This rapid migration of people from rural to urban areas is causing massive increases in urban populations, creating more and larger urban slums, increasing the potential for environmental deterioration, and bringing tremendous pressures on city services already strained beyond limits. Take sanitation, for example, and it is no surprise that three major South Asian cities, Dhaka, Mumbai and New Delhi, show up on Mercer's list of the world's dirtiest cities.
United Nations Habitat estimates that roughly 1 billion people -- or 33 percent of the world's urban population lives in slums. By 2030, according to the UN's human settlement program, that number is likely to double.



The slum dwellers struggle to survive with little clean water and sometimes no electricity around metropolises like Rio de Janeiro, Brazil; Mumbai, India; Lima, Peru; and Istanbul, Turkey. Their shantytowns are usually vast in expanse and dense in population. In Kibera, a slum near Nairobi, Kenya, for example, more than a million people live in an area about the size of New York's Central Park.

When visitors see a squatter city in India or Pakistan or Bangladesh, they observe overwhelming desperation: rickety shelters, little kids working or begging, absence of sanitation, filthy water and air. However, there are many benefits of rural to urban migration for migrants' lives, including reduction in abject poverty, empowerment of women, increased access to healthcare and education and other services. Historically, cities have been driving forces in economic and social development. As centers of industry and commerce, cities have long been centers of wealth and power. They also account for a disproportionate share of national income. The World Bank estimates that in the developing world, as much as 80 percent of future economic growth will occur in towns and cities. Nor are the benefits of urbanization solely economic. Urbanization is associated with higher incomes, improved health, higher literacy, and improved quality of life. Other benefits of urban life are less tangible but no less real: access to information, diversity, creativity, and innovation.

In a recent interview published by Wired Magazine, Stewart Brand, "the pioneering environmentalist, technology thinker", and founder of the Whole Earth Catalog focuses on the positive aspects of urban slums. Brand also makes a counterintuitive case that the booming slums and squatter cities in and around Mumbai, Nairobi, and Rio de Janeiro are net positives for poor people and the environment. Wired asked him to elaborate.

Wired: What makes squatter cities so important?

Stewart Brand: That's where vast numbers of humans—slum dwellers—are doing urban stuff in new and amazing ways. And hell's bells, there are a billion of them! People are trying desperately to get out of poverty, so there's a lot of creativity; they collaborate in ways that we've completely forgotten how to do in regular cities. And there's a transition: People come in from the countryside, enter the rickshaw economy, and work for almost nothing. But after a while, they move uptown, into the formal economy. The United Nations did extensive field research and flipped from seeing squatter cities as the world's great problem to realizing these slums are actually the world's great solution to poverty.

Wired: Why are they good for the environment?
Brand: Cities draw people away from subsistence farming, which is ecologically devastating, and they defuse the population bomb. In the villages, women spend their time doing agricultural stuff, for no pay, or having lots and lots of kids. When women move to town, it's better to have fewer kids, bear down, and get them some education, some economic opportunity. Women become important, powerful creatures in the slums. They're often the ones running the community-based organizations, and they're considered the most reliable recipients of microfinance loans.

Wired: How can governments help nurture these positives?
Brand: The suffering is great, and crime is rampant. We made the mistake of romanticizing villages, and we don't need to make that mistake again. But the main thing is not to bulldoze the slums. Treat the people as pioneers. Get them some grid electricity, water, sanitation, crime prevention. All that makes a huge difference.


The effect of urbanization in defusing the "population bomb" mentioned by Stewart Brand does make sense in Pakistan's context. With increasing urbanization, Pakistan's population growth rate has declined from 2.17% in 2000 to 1.9% in 2008. Based on PAI Research Commentary by Karen Hardee and Elizabeth Leahy, the total fertility rate (TFR) in Pakistan is still the highest in South Asia at 4.1 children per woman. Women in urban areas have an average of 3.3 children compared to their rural counterparts, who have an average of 4.5 children. The overall fertility rate has been cut in half from about 8 children per woman in 1960s to about less than 4 this decade, according to a study published in 2009.



Dramatic declines in fertility are not necessarily good for society. In a book titled "The Empty Cradle", the author Philip Longman warns that the declining birth rates around the world will cause many social and economic problems. As a consequence of declining fertility, by 2050 the population of Europe will have fallen to what it was in 1950. Mr. Longman says this is happening all around the world: Women are having fewer children. It's happening in Brazil, it's happening in China, India and Japan. It's even happening in the Middle East. Wherever there is rapid urbanization, education for women and visions of urban affluence, birthrates are falling. Having and raising children is seen as an expense and a burden.

"So we have a "free rider" problem. You don't need to have children to provide for your old age -- but the pension systems need them." Says Longman, referring to the coming Social Security crunch as the number of retired people rises faster than the number of workers.

In a recent interview with Wall Street Journal, Pakistan's former finance minister Salman Shah explained that "Pakistan has to be part of globalization or you end up with Talibanization". "Until we put these young people into industrialization and services, and off-farm work, they will drift into this negative extremism; there is nothing worse than not having a job," Shah elaborated. But increasing urbanization in South Asia represents both a challenge and an opportunity for India, Pakistan and Bangladesh. It is a challenge because it imposes a rapidly growing burden on the already overcrowded megacities such as Mumbai, Delhi, Dhaka and Karachi. Such a massive challenge will require a tremendous focus on providing housing, transportation, schooling, healthcare, water, power, sanitation and other services at an accelerated pace. But if this challenge can be successfully met, there will be an opportunity to develop the human potential of the rural poor and employ them more productively in the growing industrial and services sectors in the cities. In the case of Pakistan, if the level of robust economic growth, human development and increased urbanization can be sustained to significantly enlarge the South Asian nation's middle class, then there can be hope for genuine and durable democracy to thrive.

Related Links:

Light a Candle, Do Not Curse Darkness
Total Fertility Rates for Countries of the World

Urbanization in Pakistan Highest in South Asia
Orangi Pilot Project

Orangi Beats Dharavi
Can Slumdog's Success Improve Lives of Poor Children?
Dr. Akhtar Hameed Khan
UN Population Fund Report 2007

Urbanization Levels of Countries of the World
Eleven Days in Karachi

Karachi: The Urban Frontier

Slums Offer Hope
Urbanization Challenges in Pakistan

World's Dirtiest Cities

Karachi Fourth Cheapest for Expats

Cities and Environment

Pakistan's Choice: Talibanization or Globalization

Patterns of Urbanization in Pakistan

Thursday, December 25, 2008

Jinnah's Pakistan Booms Amidst Doom and Gloom



Media reports from Pakistan often portray a picture of doom and gloom, with the IMF bailout of the economy, terrorist training camps, Islamic radicals, horrible governance, and corrupt and inept politicians making the headlines around the world. The adjective of "failed state" is often used to describe Pakistan. Is there more to the story than the big headlines? Is there hope for Pakistanis amidst the doom and gloom? On Quaid-e-Azam M.A. Jinnah's 132nd birthday today, I think there is. The telecommunication, information technology, higher education, media and the middle class progress started during Musharraf-Aziz years continues to have its impact on the country founded by the Quaid-e-Azam more the 61 years ago. Here are a few things I found posted by a fellow blogger on Tech Lahore blog:

1. Pakistan is the most connected country in South Asia, with the highest teledensity. The Internet penetration in Pakistan is at 10% versus 5% in India, according to ITU.
2. Pakistan’s communications costs are lower than any other country in the region.
3. Pakistan has the world’s largest biometric database (NADRA); this system (not the data) is now being provided to allied countries.
4. Pakistan has the world’s largest WiMAX network.
5. Pakistan has one of the world’s most aggressive Fiber-to-the-Home (FTTH) rollouts.
6. Pakistan has one of the highest rates of cellular connectivity growth in the world (According to PTA 2007’s report the rate of growth in Pakistan’s mobile sector is fourth highest in the world).
7. Pakistan was the winner of the 2007 GSM industry association award.
8. The US is importing UAVs designed and built in Pakistan to protect America’s borders.
9. With WLL (CDMA), WiMAX, GSM and FTTH, Pakistan is pretty much leading the pack in terms of diversity and breadth of connectivity.
10. According to Gartner, Pakistan is a “first category” offshoring location; this ranking has grown by leaps and bounds.
11. Pakistani companies won several awards at Asia’s APICTA startup/innovation conference and were considered the most “interesting” and cutting edge in Asia.
12. The world’s youngest Microsoft Certified Professional is a Pakistani and so is the world’s youngest Cisco CCNA professional.
13. Pakistani students excelled in MIT’s global software talent competition.
14. Citations of Pakistani scientific publications are rising sharply.
15. Over two dozen Pakistani scientists are working on the Large Hadron Collider; the grandest experiment in the history of Physics.
16. In 2007, analysts at Standard Chartered bank estimated that Pakistan has a middle class of 30 million which earns an average of about $10,000 per year. And adjusted for purchasing power parity (PPP), Pakistan's per capita GDP is approaching $3,000 per head.

The Wall Street Journal did a story in September 2007 on Pakistan's start-up boom that said, "Scores of new businesses once unseen in Pakistan, from fitness studios to chic coffee shops to hair-transplant centers, are springing up in the wake of a dramatic economic expansion. As a result, new wealth and unprecedented consumer choice have become part of Pakistan's volatile social mix."

In the absence of any visionary and pro-active political leadership in the nation, Pakistan will likely continue to be heavily influenced by external factors and events in the foreseeable future. The change in Washington and potential change in Delhi in 2009 will likely have a far greater impact on Pakistan than anything Pakistani leaders say or do.

I am hopeful that people of Pakistan, especially the young entrepreneurial and the professional classes, will continue to do their best to help extend the positive legacies of Musharraf-Aziz years. I believe it can be safely said that the communications revolution (accompanied by dramatic growth in urbanization and the vociferous electronic and new media) as well as a significant enlargement of the middle class in Pakistan helped sow the seeds of the end of arbitrary actions by President Musharraf. In other words, Musharraf pulled a Gorbachev (a la perestroika that unleashed uncontrolled energies) by enabling powerful resistance to his arbitrary rule. Some of these changes that Musharraf brought are durable and I hope will make our rulers more accountable. There will still be abuse of power but the media spotlight will hopefully shine brightly on it to the detriment of the abusers. Eventually there will be real participatory democracy to serve all Pakistanis with appropriate checks and balances imposed by a much larger and more powerful and aware middle class essential for true democratic governance in Pakistan, or anywhere else.

Here's a video titled "I Am Pakistan":



Here are two video clips of Pakistan's progress in the last few years:





Related Links:

Pakistan's Foreign Visitors Pleasantly Surprised

Start-ups Drive a Boom in Pakistan

Infrastructure and Real Estate Development in Pakistan

Pakistan Conducting Research in Antarctica


Pakistan's Telecom Boom

ITU Internet Data

NEDUET Progress Report 2008

Pakistani Entrepreneurs in Silicon Valley

Musharraf's Economic Legacy

Should Pakistanis be Proud of Their Country?