Monday, January 31, 2011
Saturday, January 29, 2011
Shahid Javed Burki: Pakistan - South Asia's sick man
Shahid Javed Burki: Pakistan - South Asia's sick man |
As they struggle to pull the economy from the edge of a precipice, policy makers in Islamabad would do well to learn from India and Bangladesh |
Shahid Javed Burki / January 29, 2011, 0:45 IST |
Today, Pakistan is South Asia's sick man. This year – the financial year ending on June 30 – if the Pakistani economy grows at all, the rate of increase will be no more than the rate of growth in population. This means that there will be no increase in average income and, for most of the population, income per head will decline. This will add another 10 million to the pool of poverty, bringing the total to over 70 million. In the immediate future, the national output is likely to increase at a rate less than one-half of that expected for Bangladesh and one-third of that projected for India.
I pointed this out to Pakistan's President Asif Ali Zardari in a recent meeting. He responded by saying that by comparing the performances of India, Bangladesh and Pakistan I was comparing apples and oranges. India had had a democratic system of government for more than 60 years and Bangladesh had been under democratic rule for a longer period than Pakistan. He said he had inherited a damaged economy and a dysfunctional political system from a military dictator. His government's first priority was to provide the country with a political system that was fully representative of the wishes of the citizenry.
|
Other than this explanation based on the impact of development in politics on economic performance, are there other reasons why Pakistan is lagging so far behind Bangladesh and India? What has the country not done that its neighbours have to better the lives of their citizens? There are three telling differences between the direction of economic policy taken by India and Pakistan and two when we compare Bangladesh and Pakistan. Taken together, these five provide some ideas to the policy makers in Islamabad as they struggle to pull the economy from the edge of a precipice. Let me start with the three things Indians have done differently compared to Pakistan.
It was perhaps a combination of Mahtama Gandhi's emphasis on self-reliance and Jawaharlal Nehru's attraction to socialism in the style of the Soviet Union that kept India from becoming dependent on external flows for financing development. Today, more than six decades after the two countries achieved Independence, the Indian rate of domestic savings and its tax-to-GDP ratio are more than twice that of Pakistan. Islamabad has had to go repeatedly to the International Monetary Fund (IMF) to save itself from bankruptcy. India needed to do that only once in the last quarter century.
New Delhi put a great deal of emphasis on developing public sector institutions of education, training and learning in a number of sectors. The famed institutions of administration and technology have produced skilled people who have led some important parts of the Indian economy. They also constitute the core of the community of Non-Resident Indians (NRIs), who are playing an important role in transforming the Indian economy at this time. Pakistan does not have a single such institution in the public sector.
The third important difference is that the Indians have allowed the development of scale in the modern sectors of their economy. Consequently, some of the Indian firms are now of the size and competence to challenge those in the West. The Indian firm has arrived on the international scene. That may have happened in Pakistan's case too but for the nationalisation undertaken by former Prime Minister Zulfikar Ali Bhutto in the early 1970s. He was, in a way, adopting the Indian socialist model of economic management without realising that India built up the state sector through investment, not expropriation of private assets.
The two differences that stand out between Bangladesh and Pakistan are in the areas of industrial policy and the treatment of women in the workforce. Dhaka adopted a model of development that put small enterprises at the centre of the economic stage. Such micro-lenders as the Grameen Bank and BRAC were able to provide small amounts of capital to hundreds of thousands of small entrepreneurs, most of them women. These enterprises contributed to the development of the ready-made garment industry which, in turn, encouraged the participation of women in the workforce. This development model, focused on women, has produced the most rapid demographic change in South Asia. The increase in the median age of the population was more rapid in Bangladesh than any other South Asian country.
There is, in other words, enough experience available in South Asia for policy makers in Pakistan to formulate a development approach to pull their country out of tremendous economic difficulties it faces at this time.
The writer is former finance minister of Pakistan and former vice-president, World Bank
Thursday, January 27, 2011
Mad for Mumbai ( By Catherine Taylor)
Taxis in Mumbai: "I have wept more here than I have ever in my life ... But the longer I stay, the more I seem to relax, let go, let it be." Source: Supplied
TONIGHT, as I waved my high heel in the face of a bewildered taxi driver, I thought suddenly: I am absolutely nuts in India. It's a thought I have often. Someone or something is always going nuts, and quite often it's me.
Wednesday, January 26, 2011
Tuesday, January 25, 2011
2 Mile Tall Men......
( from the Economist)
Jan Pen, a Dutch economist who died last year, came up with a striking way to picture inequality. Imagine people's height being proportional to their income, so that someone with an average income is of average height. Now imagine that the entire adult population of America is walking past you in a single hour, in ascending order of income.......
- The first passers-by, the owners of loss-making businesses, are invisible: their heads are below ground.
- Then come the jobless and the working poor, who are midgets.
- After half an hour the strollers are still only waist-high, since America's median income is only half the mean.
- It takes nearly 45 minutes before normal-sized people appear.
- But then, in the final minutes, giants thunder by. With six minutes to go they are 12 feet tall.
- When the 400 highest earners walk by, right at the end, each is more than two miles tall..................
.
Narayana Murthy on Netaji Bose
He would have been a perfect foil to Jawaharlal Nehru's more conservative approach to industrialization, opposed the licence raj and might even have prevented Partition, Murthy added while delivering the Netaji Memorial Oration in Kolkata on Sunday.
The software guru paid a glowing tribute to Bose while censuring the Centre for not paying due respect to the great leader. "India would have been a different country had Bose been around in the post-Independence period. Along with Nehru, Shyamaprasad Mookerji and C Rajagopa-lachari, he would've formed a cohesive team that could have done wonders for India. The country could have done better in terms of population management, reaped richer demographic dividends, adopted scientific agricultural techniques earlier and embraced industrialization better. With these men at the helm, our bureaucracy would have functioned better and most importantly, the country would probably not have been split. Today, India would've been where China now stands — on the second rung of the world economic ladder," he said at Netaji Bhavan.
Infosys chief mentor N R Narayana Murthy elaborated on why Netaji's presence would have made a big difference to India's destiny.
"He was bold, upright and could take on anybody. He could question even Mahatma Gandhi and dared to disagree with him, which he did on the dominion status issue. Netaji knew that areas like population control, industries, agriculture and health were key to the country's growth and had expressed his views on these. His views were strikingly modern and practical which makes me conclude that India would have done better than China with him in the front seat of the government," Murthy said.
Critcizing the Centre for not paying "due respect to this great son of India", Murthy felt it was time to correct the mistake. "I have heard that Delhi doesn't have a single prominent avenue named after him. This is a shame and I hope our wonderful Prime Minister will soon correct this lacunae," he added.
Commenting on India's achievements, Murthy said the country has come a long way from being looked upon as a poor, pitiable nation to a strong, emerging country.
"Our GDP growth rate is the second highest in the world, our stock exchanges and industries have done exceedingly well, we have more billionaires than Japan and our cricketers have emerged as stars across the world. But this is not the whole story. We are 119th among 160 countries in the human development index, we have 400 million illitretates, 750 million without access to proper sanitation and 25 million children out of school, while 64% of our children are malnourished. We needed a strong leader like Bose and his courageous approach to tide over these hurdles. He was a visionary in every sense and had written that even though industrialization had its evils, we can't go back to the pre-industry era and should learn to reconcile ourselves to the progress already made. Bose saw India's potential in industrial development," Murthy explained.
Bold decisions, integrity and courage could still set India on the growth path, Murthy said. "This is clear from the example set by Narasimha Rao. Even though he was criticized, he went ahead and ushered in liberalization, which should be lauded," he said.
Monday, January 24, 2011
Sunday, January 23, 2011
And now, the Chinese Umrao Jaan !
Check out this video on YouTube:
http://www.youtube.com/watch?v=3AxH-pbUwZ8&feature=youtube_gdata_player
RSK
Saturday, January 22, 2011
Two suns in 2011?
The cosmic phenomenon, which may happen as soon as this year and remain for at least a week or two, is expected to be the most stunning light show in the planet's history.
According to astronomers, the Earth will undoubtedly have a front row seat when the dying red super-giant star, called Betelgeuse, finally blows itself into oblivion.
The explosion will be so bright that even though the star in the Orion constellation is 640 light-years away, it will still turn night into day and appear like there are two suns in the sky for a few weeks, theDaily Mail reported.
Brad Carter, of the University of Southern Queensland in Australia, claimed that the galactic blast could happen before 2012 -- or any time over the next million years.
"This old star is running out of fuel in its centre," Dr Carter was quoted as saying.
"This fuel keeps Betelgeuse shining and supported. When this fuel runs out the star will literally collapse in upon itself and it will do so very quickly.
Meanwhile, there is a doomsday theory being floated on the Internet with some linking this supernova to the Mayan calendar's prediction of an Armageddon in 2012.
But experts claimed that even if the big bang is looming, it will still happen way too far from Earth to do us any harm.
"When a star goes bang, the first we will observe of it is a rain of tiny particles called nuetrinos," said Dr Carter.
When it happens, the Betelgeuse supernova will almost certainly be the most dramatic ever seen.
It is the ninth brightest star in the night sky and the second brightest in the constellation of Orion.
Here and There !
|
Friday, January 21, 2011
The Power Of Just One..
THE POWER OF...... JUST ONE..
ONE WORD CAN START A POEM
ONE LINE CAN TWIST A STORY
ONE FLOWER BEGINS A SPRING
ONE LEAF BEGINS A FALL
ONE RING WILL GET YOU MARRIED
ONE SIGN WILL SAY IT'S OVER
ONE HUG CAN SAY YOU CARE
ONE SHRUG CAN SAY..YOU DON'T
ONE CANDLE CAN LIGHT THE ROOM
ONE CLOUD CAN DIM THE SUN
ONE MARK CAN WIDEN YOUR HORIZON
ONE PERCENT CAN BROADEN YOUR VISION
ONE BULL CAN TOSS YOUR FORTUNE
ONE BEAR CAN MAKE YOU BEG
ONE CARD CAN MAKE YOUR GAME
ONE GAME CAN TUMBLE YOUR LIFE
ONE MALL CAN MAKE YOU BUY
ONE BILL CAN MAKE YOU CRY
ONE QUAKE CAN CHANGE YOUR DESTINY
ONE RIOT CAN CHANGE YOUR ADDRESS
ONE FALL CAN SCAR YOUR FACE
ONE ACT CAN BREAK A BOND
ONE STRIDE BEGINS A MARCH
ONE MARCH BEGINS A REVOLUTION
ONE REVOLUTION EARNS YOU FREEDOM
ONE VOTE CAN CHANGE A NATION
ONE DROP CAN CREATE A LIFE
ONE CLOT CAN TAKE A LIFE
TO REALISE THE VALUE OF A FRIEND
TRY LOSING......................JUST ONE