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Spearheading  Development

Pakistan surprises everyone by doing the unexpected whether on the cricket field or surviving 75 years when pundits gave it a mere two years if that.

In 1967, Gustav Papanek, Economic Adviser from Harvard to the Planning Commission of Pakistan in the 50s, in his book Pakistan's Development, noted that despite no prior industrial experience, the Memons, a handful of traders, conservative, uneducated and certainly not ‘modern’, drove Pakistan’s rapid economic growth, with the support of what he calls the elite "educated gentlemen" of the civil service. Other international observers called it "a rare success story", an "economic monstrosity," whose performance was "outstanding", supported by "positively brilliant" government decisions and a "sophisticated" planning system, not seen in other developing countries.

A 23 year-old Mahbub ul-Haq, later to become the author of the Human Development Index, was part of the Planning Commission and its first Five-Year Plan.  Ten years later, during a lecture at University of Karachi’s Applied Economics Research Centre, he was the first to identify the monopoly of 22 families.

He suggested higher taxation. Instead in the 70s the big industries, banks and educational institutions were nationalized. Coming fast on the back of the loss of East Pakistan, not only did it dismantle the economic edifices, it broke the spirit of private enterprise, and the enthusiasm to invest in Pakistan.

Long term developmental plans were replaced by short term gains, and the flight of capital. Re-privatization in the 90s was a messy grab for maximum profit with minimum outlay, and had none of the ideals of the first pioneers. Those early Memon entrepreneurs, shared their high profits in social uplift programmes, establishing schools and charitable institutions, not perfunctory CSR funding to satisfy company boards.  

There are some inspiring examples of the role of private sector industry in the social, cultural and economic development of nations. In 19th C England, William Lever of Lever Brothers soap factory, built Port Sunlight, a beautiful village for the families of factory employees, designed by leading architects, with modern cottages, parks, and technical institutes. Bournville was another such village development by the Cadbury family.

In Sindh the village of Tando Soomro, the Orangi Pilot project of Karachi and the social uplift programmes of the Aga Khan Foundation in the Northern areas of Pakistan are examples of how receptive Pakistani communities are to better standards of living.

 Much of the development of prosperous nations has been achieved by private sector investment. In addition to the obvious factors of employment, adding to the economy and the supply of products for society, scholarships, hospitals, museums and universities have also been beneficiaries of their support.

Sometimes great contributions to cultural development are made by industry for dubious reasons  - the big tobacco companies such as Philip Morris, make a point of financing large scale exhibitions and museums to  improve their image, especially after the 1964 U.S. Surgeon General’s report concluded that smoking caused lung cancer.

Investment in Research and Development (R & D) has always spearheaded development. It was once institutions such as the Bayt al-Ḥikmah (House of Wisdom) in Baghdad that from 8th  - 13th century, supported famous scholars, scientists and inventors, including the three orphaned brothers known as Banu Musa, who made 100 engineering inventions and authored more than 20 books on science.  

Today, in countries leading in innovation - USA, China, Japan, Germany South Korea, France and UK, R&D is supported by the business community. Pakistan ranks 131 out of 141 countries in R&D. Yet YouTube videos abound with ordinary Pakistanis inventing amazing products, the small workshops of Karachi’s Liaqatabad and Golimar have developed innovative production methods, and art schools create design projects that should have been picked up for mass production by industry. The Sialkot surgical equipment manufacturing waits for investment in new technologies to meet international medical needs.

Most industries are cautious about expansion and investment. Since the fateful 70s there is a lack of trust in long term government support, so necessary for developing and marketing innovation. The early decades prove that Pakistanis are capable of ambitious entrepreneurship and deserve a stable political and economic climate and infrastructure that only a new generation of "educated gentlemen" of the civil service can provide.   

 

Durriya Kazi

November 19, 2023

Karachi

 durriyakazi1918@gmail.com

 

 

 

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