Manipulative economics

Economists have steered clear of behaviour in attempting to analyse economic doings. Yet at the heart of the action is the work of humans. The economic structure and functioning of the developing world cannot be explained unless we examine the leaders and policymakers’ psychological make-up.

We are from the beginning in manipulation economics; manipulation not for the country and the well being of the greater numbers but the well being of the self. Unless we in Pakistan start an analysis of what is going on in the manipulation of policy, there will be the same pathetic existence that we have had for the last nearly 67 years.

Take any sector and the role of the rich. The poor do not matter as they are unable to manipulate anything. Pakistan has not done any thinking on either the land mafia or the urbanisation. Previous finance ministers indicated their desire to show growth through the urban sector not realising that the requirements have changed.

The rural population started an internal mass migration as they had no chance to make it big time while residing in an area where the federal government had made no efforts at providing facilities that are the most basic for the people residing there. Forget these fanciful words of inclusiveness and exclusiveness of the population.

These fancy words do not mean anything to people that do not have the most basic needs are being met. Want is a far different cry. Pakistanis have miserably failed. We will continue to fail given whatever kinds of government. The saintly words in the manifestos do not matter at all. They are not worth the paper on which these have been written.

Over the last 60 years, we have experimented with people that have no knowledge of any aspect of Pakistani society. I am reminded of an import that rang me up to ask me the way to the PM’s office and he was residing in local hotel just three minutes away from the area he was targeting. And he got a cushy job for three years or so and he gave a passing kick to the people of Pakistan.

These foreign imports come and create confusion and as to how well we are doing; when all the time the downward slide is visible. They come and they make sure that the situation will be far worse than what it was before they took over. Glib talk does not get you anywhere. The abstract methods are so widespread and sophisticated that that they create an impression that all is honky dory. The era of Shaukat Aziz is a case in point. Our elites and he managed to get a team of them together who believed in profound words whether they actually delivered or not.

For growth they gave us inflation and for a budget that was balanced they gave us more debt. We started taking loans for such things as water channels with the promise that this will lead to 43% productivity increase in agriculture. From late 1970s, we have been telling the public lies because these foreign exchange requests were to meet the demands of the elite structures. The inability to live in reality is not linked to ivory towers anymore for it is a general malaise. If you want to see Arlington and twice as dead all you have to do is go to Islamabad and any of the ministries. You will, I promise you, will not return disappointed.

The people here are the most articulate that one sees anywhere in the country but they are not connected to the ordinary people. With the coming of the new democratically-elected government in position does one and can one hope for better governance? It’s a tough call. Tough because the institutions are run down and they are being made to run down further and by whom? Pakistan has curious position where every time there is change in government – or interim government – there is a mafia-led operation against those that work. It is in the interest of those government employees that have never worked to start this intrigue and get the government involved in a hassle. New governments lap this up and they too see this as an opportunity to get there workers into lucrative jobs.

That policy has never worked in the past and never will. The political influence comes into play and the country is not interested in truth thanks to the electronic media. Pakistan is in an unenviable position where the media will ensure that no hero will be allowed. Every one has to be belittled. Since there is no law of torts damages can never be achieved through the law of damages. Our lawmakers are just not interested in any legislation.

Manipulation in the industrial sector that belongs to the formal area indicates the way over-invoicing is carried out. But that is not all. One famous ice-cream factory came to Pakistan as adjunct of a textile factory. The clever ploys go on and it is the rich that manipulate. In agriculture the inputs are all priced at international costs while the industry making fertilisers are all seeking subsidies. Well, the technology has changed now. The restoration of agriculture is now based on natural resources. Chemical agriculture is now on the way out. But we persist. Why do we persist? We do so because our overlords in other countries tell us that if we do not use chemicals we will have famine in the country; a theory that has been proved wrong in the USA and even in Japan.

We are manipulated by international forces and we seldom take decisions that we ought to take. We are told that reforms in the FBR are necessary and what is the outcome. Musharraf and Company were told that the bureaucracy had to be sorted out through reforms and we ended short-changed. Now we do not have he ability to do anything. We were told that a rural structure through local bodies elections was the panacea for all ills. We found the Musharraf used to call monthly meetings of the elected local representatives for directions. Why this double act?

A central command and control structure from where Musharraf came could hardly be responsive to the decentralised system that was to come into place. So the entire episode aborted. We are now trying to resurrect the system all over again. What was wrong with the Indian Councils Act 1909 commonly known as Morley Minto Reforms? In 1947, we had working District boards that were elected. No we had to put our fingers into the pie and mess it up. We went in for basic democracy without realising what we were up to. Basic democracy was a sham like all the interventions we made for the rural areas. Pakistan is full of sordid money-makers and not thing-makers. This illusion can be seen in various land deals that have been struck. LDA, CDA and all the development bodies have forgotten what their real work is and all that they have are people keen on making assets at the cost of the poor. Want proof of it or can you not see with your own eyes? DHA, Bahria and others all dealing with land, ever since land was acquired for the town of Islamabad, for Tarbela, for Mangla and for wherever.

We go on and we will keep on going along this line for we do not have anyone who will teach the young the censorship system and how it works. The elders are a lost cause. The national economy does not matter. What matters is how we can use public funds for private benefits. That is a bottomless pit. Do not be surprised that we are at each others’ throat. We will stay that way.