Showing posts with label Current crisis. Show all posts
Showing posts with label Current crisis. Show all posts

Saturday, June 12, 2010

Good Governance tribulations in Pakistan

The issue of governance is a key component of policies for economic development. Good governance acts as a positive force to influence economic growth. A growing amount of available evidence suggests that lack of quality governance hinders growth and investment, and aggravates poverty and inequality. As the matter of fact developing countries are characterized by weak institutions, low growth, poverty and inequality all which translate into low levels of human development. The multiplicative effects of these outcomes result in poverty traps that are extremely difficult to break out.
Good governance can lead a country to achieve high and sustained economic growth by establishing conducive environment for saving and investment, risk taking, providing incentives to producers, creating certainty in markets, increasing the size of markets by removing barriers to international trade and improvements in competitiveness. It is a key component in the development factors. The emphasis on reforming economies to achieve high rates of economic growth is largely motivated by the fact that economic growth associates with lower poverty rates and improvements in the quality of life. It is assumed that there is a strong link between economic growth and poverty reduction.
Basically, Governance means process of decision-making and the process by which decisions are implemented. The quality of governance is determined by the impact of this exercise of power on the quality of life enjoyed by the citizens. Governance can be used in several contexts such as international governance, corporate governance, national governance and local governance. Government is one of the actors in governance. Asian Development Bank (1995) identified four basic elements of good governance such as accountability, participation, predictability and transparency.
Political Governance consists of two factors as (i) Voice and accountability. (ii) Political instability and violence. The political governance indicator is intended to capture the process by which government is selected, monitored and replaced. Indicator such as “voice and accountability” measures political, civil, human rights and independence of the media. It includes a number of indicators measuring various aspects of political process, civil liberties and political rights. It measures the extent to which citizens of a country are able to participate in the selection of government while the “political instability” indicator captures whether the government in power will be destabilized or overthrown by possibly unconstitutional or violent means, including military cop, terrorism etc. Pakistan after analyzing on both factors is a politically instable country.
Economic Governance has also two factors as (i) Government effectiveness. (ii) Regulatory quality. These two indicators summarize various indicators that include the government’s capacity to effectively formulate and implement sound policies. The thrust of this is on the input required government to be able to produce or implement good policies and quality delivery of public good. The ‘regulatory quality’ governance indicator includes measures of the incidence of market unfriendly policies such as price control or inadequate bank supervision, as well as the perceptions of the burdens imposed by excessive regulation in area such as foreign trade and business development. Pakistan is also weak on these grounds.
To remedies these solution what Pakistan needs is to develop proper and transparent process of elections so that right leadership can come on up front. Also planning in every exist but poor implementation is ruining image of government all over the country and abroad which require a serious heed to resolve issues like that.

Thursday, June 3, 2010

2010 PAKISTAN-CHALLENGES & OPPORTUNITIES

In 2010, Pakistan still faces fundamental questions of identity, governance, state and nation-building. Asif Ali Zardari, co-chairman of Pakistan Peoples Party and widower of former Prime Minister Benazir Bhutto, was elected Pakistan’s president in an indirect election on 6 September 2008. Zardai’s foremost challenge was to be best in restoration of peace and stability in Pakistan. The most critical challenge that Pakistan, under the leadership of Zardari, faces is geographically concentrated in the country’s western border region with Afghanistan, a challenge that maintains both regional and international dynamics.
Since 1947, Pakistan has had hostile relations with both its eastern and western neighbors – India and Afghanistan. Over the past six decades, the mutual relations between these two countries have been held inmate to larger regional and global alignments, pressures and interests. To improve the relationship with Afghanistan the president, Yousaf Raza Gillani, promised to bring “economic, social, and political reforms” to the tribal areas, where illiteracy and poverty have created conditions for terrorism to spread.
One other big challenge for Pakistan is the rise in sectarian violence between extremist Shiite and Sunni militant factions. The Shiite-Sunni conflict started in Pakistan in the mid-1980’s and has since resulted in an estimated 5,000 deaths. Though the extremists are supported by Saudi Arabia and the Sunni Gulf states on the one hand and revolutionary Shiite Iran on the other, innocent people are the most common victims of the violence unleashed by them.
Despite the centricity of the post-9/11 ‘war on terrorism’ and the current security concerns in the tribal regions bordering Afghanistan, India has always been Pakistan’s main agonize. The 1947 partition of India into two states, Pakistan and India, both solved and created a range of problems from ethno-religious to territorial. Real and tangible peace has yet to be achieved between these two states that have waged three wars over the disputed Himalayan region of Kashmir, and continue to spend considerable portions of their national wealth and political energies on advancing their particular goals over the future of Kashmir.
The emergence and declaration of a chirpy civil society, the spirit of the business community and the moderation of a very large segment of the Pakistani population are key assets that Pakistan can utilize in establishing a vivacious democracy with stable public and political relations. This may, in turn, provide Pakistan with additional international leverage and add to constructing an environment conducive to negotiated settlements with its neighbors and the international community at large over the variety of issues currently impeding Pakistani development.
In the long-term Pakistan will also have to engage in human development to follow the economic development models of its Asian neighbors to its east. This implies that a larger part of its GDP should be spent on the welfare of its people instead of the financially draining political & military lobby. Most significantly, Pakistani privileged has yet to agree on a unified future vision and work hard to achieve it. Again this implies the active support of the international community, which must recognize that for the sake of international peace, prosperity and stability, Pakistan must be engaged with and not isolated.

Tuesday, June 1, 2010

Current Crisis in Pakistan - Possible solutions

Pakistan is the world’s first Muslim nuclear-armed “failed state”. The country’s current situation is as terrorist bombings, uprising of Islamic fundamentalists, a weakened democracy and a faltering economy. Every day that passes things get even worse and economy is in down spin. Relations with India were recently on the road to reestablishment after years of conflict over Kashmir issue but received a quick setback after the recent attacks on Mumbai. Before that Pakistan was facing the consequences of the 9/11 accident whose blame is also on the shoulders of Muslims. The situation in Pakistan is very bad or one can say on the edge. Said by one US official “No money, No energy and now No government”.
Pakistan is facing now-a-days existential crisis on its streets, its courts, and its parliaments. Most democracy experts say that the system needs informed and educated masses. Fortunately no one Pakistani political leader denies with this fact but unfortunately these same politicians don’t even help a little to make Pakistanis to read and write.
Pakistan necessitates a lead which has determination, optimistic, and act as a catalyst for it. Basically it is a time of showing new ideas and creativity in building the ruined relationship with whom who are the true friends of Pakistan. With other vital problems Pakistan is facing the high inflation rate along with unemployment & lack of investment.
The most unfortunate aspect of the Pakistan’s crisis is that the judiciary was always kept under restrain by all successive governments. The doctrine of dichotomy of powers is the essence of our Constitution. In reality, this system could not be developed because of regular military invasions. For more than 32 years, i.e. more than half of its life, Pakistan had remained under the rule of different military generals. This one man rule has extended the authority and powers of executive more than the system of dichotomy required. It is very painful to note that the judiciary in Pakistan has extended authority to military rulers to legislate and even to amend the Constitution. 
Inflation remains the biggest threat to the economy, jumping to more than 9% in 2005 before easing to 7.9% in 2006. In 2008, following the surge in global petrol prices inflation in Pakistan has reached as high as 25.0%. In 2009 it jumped to 30%.The central bank is pursuing tighter monetary policy while trying to preserve growth.
While Pakistan has some social and political problems, it has also been stated as being the tourism industry's big thing. Pakistan has diverse cultures, people and landscapes. The country's attraction range from the ruin of civilization such as Mohenjo-Daro, Harappa and Taxila, to the Himalayan hill stations, which attract those interested in winter sports.
The romances of the North West Frontier Province is timeless and legend. Punjab province has the site of Alexander's battle on the Jhelum River and the historic city Lahore, Pakistan's cultural capital, with many examples of Mughal architecture such as Badshahi Masjid, Shalimar Gardens, Tomb of Jahangir and the Lahore Fort. Before the Global economic crisis Pakistan received more than 500,000 tourists.
In 2009, The World Economic Forum’s Travel & Tourism Competitiveness Report ranks Pakistan as one of the top 25% tourist destinations for its World Heritage sites. Ranging from mangroves in the South, to the 5,000-year-old cities of the Indus Valley Civilization —Mohenjo-Daro and Harappa.
Pakistan receives economic aid from several sources as loans and grants. The International Monetary Fund (IMF), World Bank (WB), Asian Development Bank (ADB), etc provides long term loans to Pakistan. Pakistan also receives bilateral aid from developed and oil-rich countries. In November 2008, The International Monetary Fund (IMF) has approved a loan of 7.6 Billion to Pakistan, to help Stabilize and rebuild the country's economy. More recently the govt. of Pakistan received an economic aid of US $5bn dollars out of which the US pledge of $1bn was described as a down-payment on the previously announced $1.5bn already promised to Pakistan for each of the next five years.
The European Union promised $640m over four years, while reports said Saudi Arabia had pledged $700m over two years. Overall Friends of Pakistan had pledged $1.6 billion in aid, which would help Pakistan, move forward on its way to self-reliance. In my opinion, Pakistan should focus on the self-blessing providing to it by Allah such as its major crops, minerals and the other hidden powers present within its human capital.