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
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