LAHORE: The model of growth in Pakistan's two most populated neighbours has been exemplary. The growth model of both countries differed but both emerged at the leading global economies. Pakistan unfortunately failed to benefit from these diversified growth strategies.
China is ruled by an authoritarian regime, while India is the world's largest democracy (at least before Modi assumed power). Pakistan has been ruled by both authoritarian regimes and controlled democracy.
We never really excelled under any form of government. One thing, common in China and India, was both have stable and strong institutions capable of executing government policies in letter and spirit.
The institutions in Pakistan are very weak and are frequently manipulated by the people in power. They are not capable of implementing policies transparently.
They easily succumb to the pressure of the ruling elite. While institutions in China and India are accountable; this is not so in Pakistan. This drawback is the main reason for lopsided growth cycles in our country.
Another point worth noting about China and India is the Chinese accelerated their growth on the strength of manufacturing and India through IT services.
It succeeded in creating a strong middle class of IT and its relative services professionals.
Three decades back accelerating manufacturing growth was considered the best solution to take people out of poverty. The East Asian economies did that in the 70s and then China succeeded in pulling...
Read Full Story: https://www.thenews.com.pk/print/913341-time-to-grow-institutional-spine
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