Staying poor

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Necessary versus necessary

African countries are poor, we are told by development economists, because they are poor. The tautology is not meant to be facetious; it is meant to describe a situation where the vicious circle of lack of opportunities doesn’t let a sustainable enabling environment be created for more people to be dragged out of poverty. Ad infinitum.

Poverty abounds in Asia as well, the south being no exception. But market forces, demographic changes, liberalisation of trade policy and the increase in the international prices of food have led to a measure of prosperity; one that leads to that most overused of terms: trickle down of wealth. No, the Gini coefficient in the country is what it is. But wealth has been created. And there are people from all strata seeking upward mobility that are spending for it.

But many more cannot spend enough and even those who can are not able to do much. The state hasn’t caught up with the challenges of the times. It cannot provide all the services that a society requires. Were that to be rectified in areas like health and education, the immense potential of our population could be unlocked and accompanying it, some prosperity.

But in recent times, Pakistan has been faced with a scourge that dwarfs previous problems: the scourge of terrorism. Granted, things never were too peachy on the law and order front, but terror and in certain parts of the country, war-lordism, has held sway. Since the state’s primary responsibility, by all accounts, is the monopolisation of violence, spending on law and order increased. In fact, some would argue we are not spending nearly enough. Not on the army, mind you, but on civil armed forces like the police.

As a result, in KP, public works projects have been stalled in favour of spending on law and order. The same would, and should, apply to Balochistan, where, even if the state wisens up this very day and engages in a political solution, the situation would still get worse before it gets better. The time bomb that is Punjab is inevitably going to head towards a military/police operation against the extremist groups present there. Expect to see a diversion there as well.

Pakistan spent Rs 260 per person on health last year. As opposed to the Rs 485 per person spent on law and order. Education, public works and economic development will also take a backseat, ensuring the perpetuation of the status quo on the development front.