Tuesday, August 21, 2018

Can Imran Khan Lead Pakistan to the Next Level?

Pakistan graduated from low-income (level 1) to lower-middle-income (level 2) status at the end of Musharraf years in 2008, according to the United Nations.  Can Prime Minister Imran Khan lead his nation to upper-middle-income (level 3) ranks by the end of his first term in office? What are his chances of accomplishing this ambitious goal?

Health-Wealth Levels. Source: Gapminder.org


Four Levels of Development:

The extensive data compilation and research by Professor Hans Rosling of Sweden has shown that the binary categorization of nations into developed and developing is no longer useful. Instead, he has proposed using 4 levels of development based on health and wealth indicators, a proposal that has now been accepted by the United Nations and the World Bank. Here's how Rosling and the United Nations define these 4 levels:

1. Level 1: One billion people live on level 1. This is what we think of as extreme poverty. If you’re on level 1, you survive on less than $2 a day and get around by walking barefoot. Your food is cooked over an open fire, and you spend most of your day traveling to fetch water. At night, you and your children sleep on a dirt floor.

2. Level 2: Three billion people live on level 2, between $2 and $8 a day. Level 2 means that you can buy shoes and maybe a bike, so it doesn’t take so long to get water. Your kids go to school instead of working all day. Dinner is made over a gas stove, and your family sleeps on mattresses instead of the floor.

Level 3: Two billion people live on level 3, between $8 and $32 a day. You have running water and a fridge in your home. You can also afford a motorbike to make getting around easier. Some of your kids start (and even finish) high school.

Level 4: One billion people live on level 4. If you spend more than $32 a day, you’re on level 4. You have at least a high school education and can probably afford to buy a car and take a vacation once in a while.

Imran Khan's Ambitious Agenda:

Imran Khan laid out his agenda in his first speech to the nation after taking the office of the prime minister.  It was more like a fireside chat in which he spoke directly to the people to explain his priorities that emphasize education,  health care and human development. These are the keys to leading Pakistan from level 2 to level 3. In order to pursue his priorities, Mr. Khan needs to first address the more urgent economic crisis which he acknowledged. Pakistan needs to deal with excessive public debt and pay for the necessary imports to move forward.  He must also deal with financial corruption and mismanagement to free up the resources for his ambitious agenda of economic and human development of the nation.

Mr. Khan will almost certainly face stiff opposition from the status quo forces which stand to lose from the changes he seeks. They will fight to preserve their patronage networks and their power and privilege. They will try to bring down his coalition government with all they have got. They might even threaten his personal safety and security.

Democracy and Development:

Professor Hans Rosling has compiled extensive socioeconomic data and done serious research to understand how nations develop. He has shared his work in "Factfulness" that he co-wrote with his son Ola Rosling and daughter Anna Rosling Ronnlund. Here's an except on democracy and development from Factfulness:

"This is risky but I am going to argue it anyway. I strongly believe that liberal democracy is the best way to run a country. People like me, who believe this, are often tempted to argue that democracy leads to, or its even a requirement for, other good things, like peace, social progress, health improvement, and economic growth. But here's the thing, and it is hard to accept: the evidence does not support this stance.

Most countries that make great economic and social progress are not democracies. South Korea moved from Level 1 to Level 3 faster than any other country had ever done (without finding oil), all the time as a military dictatorship. Of the ten countries with the fastest economic growth, nine of them score low on democracy.

Anyone who claims that democracy is a necessity for economic growth and health improvements will risk getting contradicted by reality. It's better to argue for democracy as a goal in itself instead of as a superior means to other goals we like."

Summary:

Pakistan's newly elected Prime Minister Mr. Imran Khan has laid out an ambitious agenda that could take his country from level 2 to level 3 of socioeconomic development. It is achievable but the odds are against him because he faces stiff opposition from the status quo forces. The powerful dynastic duopoly of PPP and PMLN still dominates Pakistan's Senate whose support will be required for major reforms. The research by Professor Hans Rosling shows: "Of the ten countries with the fastest economic growth, nine of them score low on democracy." It's also supported by Pakistan's economic history where pace of development has consistently been faster under military governments than during civilian democratic rule.


7 comments:

Riaz Haq said...

The ‘new’ is synonymous with broad and deep reforms in critical areas of governance, social and economic policies and provision of services to the people, including fair and speedy justice. The idea of change has two sides to it. One, it shows dissatisfaction with the way things have been in the past — the problems, the failures and institutional decay. Pakistan’s problems are too many, too deep-rooted and structural in nature. They have accumulated over a long time because of political expediency, personal interests and lack of will and imagination of previous military and political governments.


https://tribune.com.pk/story/1786127/6-making-new-pakistan/

Imran Khan and the PTI, in my view, represent the popular and grassroots level narrative of plunder by the ruling elites, misappropriation of public resources by the two political dynasties and concentration of political power in few individuals that have controlled the party politics in the past few decades. The reason Imran Khan’s first speech to the nation won ordinary people’s hearts is that he spoke what has been on their minds. The social and political movements against the ruling oligarchies succeed when the challengers are able to do an objective analysis of the causes of failure and offer, doable and realistic solutions.

Khan’s understanding of the problems of Pakistan is reflective of his close observation, intimate experience and interaction with ordinary people. This is the most authentic way of gaining political knowledge of a society that successful leaders master, articulate and express in a simple language that people understand. In this regard, Khan was at his best in engaging the nation in a conversational style. He was pure, natural, sincere and deeply touched by the problems that we have faced. In about 90 minutes, he placed before the nation, a long list of challenges that have largely gone unaddressed, or partially attended to. Khan has done the diagnosis part of the issues the best before and during the election campaign.

Second, most important and difficult part of ‘change’ is translating a vision into reality. All human societies, no matter how deep-rooted their problems are, can change for the better, and they have in many parts of the world. Khan presented evidence from history with frequent references to the state of Madina and the West. While societies might differ in the character of the people and in variables of time and space, the principles of collective success — achieving progress or creating good and just society are universal.

It is a test and challenge of a leadership how it sets the priorities right and how it effectively utilises the principles and policies that have produced educated societies, scientific communities and economic development. Chief among them is, rule of law, a point that Kaptaan has emphasised for two decades and also in his maiden speech. Why is it so important a principle? It ensures human dignity, equality, fairness and accountability. It is not just in Pakistan, but in every post-colonial state where corrupt regimes, first and foremost, destroyed the rule-of-law principle. They couldn’t amass illegal wealth and privileges or defend their rule without doing so. Bringing the rule-of-law principle will be the beginning of reforms.

Change is possible but not that easy. It has to be brought about through rusted and corrupted government institutions that have traditionally worked hard in preserving the vested interests. All reformist leaders embarking upon a path of reform and reconstruction have faced resistance, and one must expect it coming in many forms. The challenges we face will test Khan’s political will, tenacity and leadership skills.

What gives optimism about success this time around is the popular support IK enjoys. His integrity, deep commitment to public good and sincerity are beyond any doubt. More importantly, his vision of new Pakistan has popular resonance.

Riaz Haq said...

#Pakistan 2016 Per Capita #Steel Consumption: 42 Kg, #India 72.3 Kg, #Bangladesh 25.7 Kg, #China 504.9 Kg, #Japan 528.4 Kg, #UAE 918.5 Kg, #USA 318.4 Kg, #Germany 522.5 Kg, #Sudan 9.0 Kg https://www.worldsteel.org/en/dam/jcr:3e275c73-6f11-4e7f-a5d8-23d9bc5c508f/Steel+Statistical+Yearbook+2017.pdf

https://twitter.com/haqsmusings/status/1034143767626801156

Riaz Haq said...

Do you want Naya Pakistan? Remember Allama Iqbal: Khuda ne aaj tak us qaum ki haalat nahiin badli // Na ho jisko khyaal aap apni haalat ke badalne ka.

Riaz Haq said...

23 charts and maps that show the world is getting much, much better. #poverty #hunger #health #literacy #longevity #mortality #optimism https://www.vox.com/2014/11/24/7272929/global-poverty-health-crime-literacy-good-news via @voxdotcom

For most Americans, these feel like bleak times. We have a massively unpopular, scandal-plagued president whose aides are being convicted of serious federal felonies. Overt, old-fashioned racism is publicly visible and powerful in a way it wasn’t only five years ago. More than 200 admired, powerful men have been accused of sexual misconduct or assault.

This is all real, and truly alarming. But it would be a mistake to view that as the sum total of the world in 2018. Under the radar, some aspects of life on Earth are getting dramatically better. Extreme poverty has fallen by half since 1990, and life expectancy is increasing in poor countries — and there are many more indices of improvement like that everywhere you turn.

But many of us aren’t aware of ways the world is getting better because the press — and humans in general — have a strong negativity bias. Bad economic news gets more coverage than good news. Negative experiences affect people more, and for longer, than positive ones. Survey evidence consistently indicates that few people in rich countries have any clue that the world has taken a happier turn in recent decades — one poll in 2016 found that only 8 percent of US residents knew that global poverty had fallen since 1996.

It’s worth paying some attention to this huge progress. The people benefiting aren’t missing it — 50 percent of Chinese respondents in the 2016 poll said they knew poverty had fallen — and you shouldn’t either. Nothing’s permanent, and big challenges like climate change and the potential collapse of liberal democracy remain, but the world is getting much, much better on a variety of important, underappreciated dimensions.

Riaz Haq said...

#Pakistan #PMImranKhan at #NamalConvocation explaining #UCDavis' Prof James Hill's speech on how #Pakistan can produce a lot more food than #California. Hill is Project Manager of US-Pakistan Center for Advanced Studies in Agriculture and Food Security https://youtu.be/KuPpcJAK5S4

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...

#Malaysian Leader in #Pakistan to Sign $900M #Investment deals in #informationtechnology and #telecom sectors. . #MahathirMohamad will also be the chief guest at the #PakistanDayParade. #technology https://www.voanews.com/a/malaysian-leader-in-pakistan-to-sign-900m-in-investment-deals-/4841609.html

Malaysian Prime Minister Mahathir Mohamad arrived Thursday in Pakistan on an official three-day visit, where his high-powered delegation is expected to finalize investment deals worth nearly $900 million, officials said.

The Malaysian leader will also be the chief guest at the Pakistan Day military parade Saturday, the Foreign Ministry announced.

Pakistani Prime Minister Imran Khan's adviser on commerce told reporters that business leaders accompanying Mahathir would sign three memorandums of understanding on Friday covering up to $900 million worth of investments in information technology and telecom sectors.

The adviser, Razak Dawood, said the deals with Malaysia would also provide Pakistan a new opening toward membership in the Association of South East Asian Nations. He said Malaysian businessmen had also indicated they would like to invest in other sectors, including energy and textiles, to help Pakistan improve its exports.

Officials said that Malaysia's Proton carmaker signed an agreement late last year with a Pakistani partner to set up an assembly plant in the southern city of Karachi that would be its first facility in South Asia. Khan and his Malaysian counterpart are expected to officiate at a symbolic groundbreaking of the Proton plant Friday.

Looking for investors

Since taking office last August, Khan has approached nations that have warm relations with Pakistan, including China, Saudi Arabia, the United Arab Emirates, Qatar and Malaysia, to bring investment and financial deposits to help reduce a widening current account deficit and shore up foreign reserves.

Riyadh and Abu Dhabi have deposited or are in the process of depositing $6 billion in loans in recent months. The two countries have also agreed to allow Islamabad to import oil on deferred payments. China is expected to deposit more than $2 billion in the next few days.

Beijing has invested more than $19 billion over the past six years in energy and infrastructure projects under what is known as the China-Pakistan Economic Corridor, as part of its global Belt and Road Initiative.

Last month, Saudi Crown Prince Mohammad bin Salman visited Islamabad and signed investment agreements worth $20 billion, including a $10 billion refinery and petrochemicals complex in the southwestern port city of Gwadar.

Pakistani officials say they are also close to securing a deal with the International Monetary Fund for a bailout package reportedly of up to $12 billion.