For peace to ultimately prevail in Afghanistan so that economic development can happen is an issue and task to deal with by the people of that very country alone. The recent crisis in the euro zone has also focused the thinking towards these themes. By forging a single market EU was confident of handling the economic problems in a collective manner but the application of one set of economic principles did not help to assuage the woes of other economies in the common market. The question of governance and taking decisions by the different capitals themselves in the region has assumed a different kind of significance now.
Edmund Burke very aptly described the setting up of the institution of a government as “a contrivance of human wisdom to provide for human wants”. The significance of appropriate actions by the state at the right time and at the right place is undeniable for many reasons. If we take the question of steering the economy in the direction where it is required to fulfill the desired objectives of provision for human wants the concomitant question of provisions of resources to meet those demands props up for the state to deal with also. In the academic circles the role of the state and that of the private individual is a matter that is continually discussed. The balance has changed with variations not only in political economy but also around the key question as to the use of available resources in social and economic terms.
The enlargement of corporate economy around the globe has benefited through expansion of international trade and investment. The economic preference of seeking profitable markets and regions for trade or investment is making the international economy strong. But at the same time the level of risk for a big business to falter or for a sizable economy to weaken has also grown manifold. Monitoring by international institutions like IMF or the European central bank considerably falls short of pinpointing the weak and vulnerable areas of concern; both at the state and private enterprise level. These institutions were once developed on models of economy that were not faced with the diverse challenges of tackling the economic issues in varied regions. These other areas are now centers of strong economic growth. The world economy has now a diversity which was unimaginable only a few decades ago. The solutions found in one region or in one particular set of economic activity may not necessarily apply to other regions or other types of economic activity. The international competitiveness in economic terms has an upward trend in many areas of economy that were once a sole concern of just one country or a few business enterprises.
The ongoing talks on the inter-regional trade in the subcontinent have taken an importance which no one can afford or allow to be derailed on some whimsical grounds or the other. Indo-Pak trade is an important part of such developments. The international players must be watching closely the outcome of these negotiations but it is essentially the responsibility of these two very countries to realise the prominence attached with these issues. They must assiduously work out the nuances involved to these very difficult economic and social questions. The future map of economic cooperation in the region shall have a lot to do with the serious thinking that must go in resolving these issues now. There are large number of public and private concerns as to how the outcome must benefit all and sundry. The economic future of the people of this region should be the prime concern for everyone on both sides of the border. The mutual understanding needs to develop on the principle of economic cooperation for the benefit of businesses and enterprises on all the sides. A serious and sincere approach towards taking up each issue in a congenial atmosphere which must be devoid of repetition of throwing blames will help settle the problems more efficiently. The efforts put in by the different players will determine the economic future of nearly one third population of this globe. The role of the state in assuming and taking up its prime role of looking after the specific economic demands of the economy has never been more important than in these times of international competition.
The write has served has consultant to the United Nations and other developing economies on the issues of trade and development and can be reached at [email protected]
