The economies around the world faced some indomitable challenges during the year 2011. The international economy had not yet recovered from the 2008 crisis of the US economy when the eurozone calamity struck this year. The domino effect was visibly there when the governments in Greece and later in Italy experienced changes in political governance. The European central bank decided to put some stringent fiscal measures for the individual economies to be careful in their public spending.
Things at home also passed through turmoil of economic issues that would have required some close attention and handling. We can partly explain the inflation factor due to problems in the international economy. But closure of train services and other utilities is totally unexplainable, grossly speaking of mismanagement at a massive scale. It is surprising that no effort was launched to streamline management. In these days of availability of valuable advice, it should be not be difficult to remedy the ills when things take a turn for the worse. I believe the time is still ripe for taking appropriate steps to setting the rail system in order. In these days of energy shortages it is the most convenient and affordable way of providing transport for passengers and carrying goods from and to the seaports.
The growth figure for the economy being just above two per cent was not very encouraging. Though non-developmental expenditure was somewhat controlled but management of the public sector required some adroit handling. There was never a strong point on our part for taking care of public-related institutions as they ought to be handled. Unfortunately mismanagement has taken root so strongly that it has become a cause of worry for the long-term goals of economic development. Socio-economic priorities are always pushed to the bottom to take care of immediate expediencies. That is not how businesses of the state or for that matter, private enterprises managed.
The matter of tackling issues of international trade and that of climate change remained mired in international negotiations. No further progress was made in the Doha round of trade talks or at the Durban summit on climate issues. Indigenously the matter of seeking to earn some extra foreign earnings from exports to Europe got linked up with granting MFN status to our neighbourly country. This was probably done in haste as no detailed study of extensive non-tariff barriers likely to be imposed by India was made before such a move. Textiles, pharmaceuticals and other exports by Pakistan to its neighbour are likely to face some formidable challenges before it can break in to that market. All steps must be taken to pursue the goal of achieving greater integration of the economies of the SAARC region but this must be done through careful negotiations by the respective partners.
It is important for Pakistan to seek greater economic cooperation with the fast changing Asian economies. Along with that other regions in the world must not be ignored. The sub-Saharan Africa is fast rising from its slumber and is expected to make some valuable progress in harnessing the abundant natural resources the countries of the region are endowed with. In a decade or so these economies shall be significant players in the African scene. It is important that our entrepreneurs be encouraged and facilitated to further enhance economic linkages not only in trade but also in establishing business houses and activity there.
As another year is coming to a close we can say and reflect it was indeed a microcosm of all the efforts that were made to tackle economic and historical developments during the last hundred years or so. It was a year that posed challenges to the international economy to save the important gains made by the world economy during the last century. Nearly most of the socio-economic progress is being jeopardised at least in the short term. The developed economies are desperately trying to deal with the rapidly deteriorating situation in the employment sector, maintaining sustainability of social benefits or provision of health and other similar benefits. The world economy is adjusting itself to new parameters that are being defined in this fast changing scenario of international economic activity. As the year 2012 is approaching we must ensure better governance in the future and awareness of the importance of socio-economic issues.
The writer has served as consultant to the United Nations on the issues of trade and development. He can be reached at [email protected]
