Daily Times

The year’s biggest event, the FIFA World Cup 2022, came to a spectacular end. Argentina beat France in a penalty shootout and gave their captain a well-earned farewell. Let’s discuss some of the socioeconomic lessons that we can learn from this mega-event.

Lesson No 1: Economic and Environmental Sustainability go hand in hand.

Modern economics now revolves around the notion of sustainability in the backdrop of climate change. Anything that is not sustained will taste defeat. Argentina was two goals ahead in the first half. But France with a brilliant comeback equalised the score. So, does the modern capitalistic system, which was leading ahead, profits were creating more profits and capital was creating more capital. Not anymore, the challenges of modern times are different than those in the late 19th and 20th centuries. Now, the rapidly changing climate requires sustainability of Earth’s environment and a lead over global Green House Gases (GHGs) as well. There is a need to add sustainability to the production function just like productivity is included in the production processes. So, that the lead can be made and maintained. Therefore, the first lesson is if you want to play and enjoy more games, produce and earn, do not ruin your playground, the Earth, and keep the sustainability of economics and the environment as important as productivity.

If you want to play and enjoy more games, do not ruin your playground, the Earth, and keep the sustainability of economics and the environment as important as productivity.

Lesson No 2: Champions are also suffering from the risks of economic default

Pakistan and the new FIFA champion Argentina have striking similarities in the Economic arena. Argentina’s Peso is at an all-time high against the dollar, currently at 172.75 against 1 dollar and increasing. Argentina is also availing of the Extended Arrangement Under the Extended Fund Facility. Recently in a September review, International Monetary Fund (IMF) allowed the disbursement of 3.8 billion dollars to Argentina. According to IMF, episodes of domestic policy uncertainties and acute market pressures due to COVID-19, Conflict, and Climate Change have caused macroeconomic turmoil. Argentina is also heading toward presidential elections in 2023. Argentina is facing a trade deficit; imports are increasing particularly imports of energy. There is high inflation due to uncertainty of policies, higher domestic demand, supply shocks, global energy prices, and tight macroeconomic conditions. The Net International reserves (NIR) excluding swap lines and Reserve Requirements (RR) on foreign exchange deposits stand at around US$2 billion (the reserves are equivalent to somewhat less than one month of imports), and the liquid reserves are in negative territory. Both countries need foreign exchange, foreign investment and an increase in exports. Thus, there is a need to convert fear into opportunities, so that the confidence of international investors and national exporters can be increased.

Lesson 3: Diplomacy is the key.

Isolation is not an option. Well, reverting to the title, From Argentina to Argentina Park, Argentina park is a beautiful place and recreational spot at the heart of Islamabad in sector G-6. The park was inaugurated on May 23, 1973, by Zulfiqar Ali Bhutto as a token of gratitude for Argentina’s support which was extended to Pakistan in the Security Council and the General Assembly of the United Nations against the backdrop of the Indo-Pak war in 1971. The lesson learned for Pakistan is, distances do not matter, what matter is diplomacy and the will to extend friendship to corners of the world. The problems of modern times require strong diplomatic relations across the continents.

Lesson 4: Sports are important.

The importance of sports as a diplomatic, economic and geopolitical agent is well established. The successful completion of the World Cup has put Qatar back on centre stage. World cup win will bring much-needed confidence boast to Argentina’s economy. For us, it is pertinent to highlight that we are the fifth largest country in the world in terms of population but in the global FIFA ranking, Argentina is at the top while Pakistan is in 195th position out of a total of 211 international teams.

What is the way forward for Argentina and Pakistan:

Firstly, there is a need to address the common issue of the Global South, which is climate change. The issue cannot be tackled alone by any country. Therefore, the countries of the global south including Argentina and Pakistan are required to convince not only governments around the globe but multilateral institutions, and private businesses to add sustainable climate in the production functions. The Integration of the global south and climate diplomacy is needed to save Earth.

Secondly, decrease the blanket subsidy on energy commodities. To provide cushions to vulnerable segments of the society fuel subsidy should be targeted based on ground-level data such as the Benazir Income Support Program (BISP) in Pakistan.

Thirdly, both countries need efforts to trigger demand-side management in energy sectors. Energy efficiency and conservation are viable options for Argentina and Pakistan, as both countries have no control over the global energy supply. Thus, by improving energy efficiency and tackling consumption inefficiencies through the reduction in losses in the electricity distribution sector, expanding generation capacity for hydropower and other renewables, enhancement of the electricity distribution and transmission system, and strengthening the overall financial sustainability of the sector through the curtailing the circular debt in both countries can reduce the energy deficit and resulting deficit in trade.

Lastly, for Pakistan, learn from Argentina, we have potential in Lyari, Gilgit-Baltistan, Sialkot, and Balochistan to excel in football. We won third place in the Street Child World Cup this year. So, there is a potential, we need to cater to and garnish this young potential through school-college-university level coaching. These lessons can help us to transfer confidence from Argentina to the heart of our federal capital, Argentina Park.

The writer is associated with SDPI as an energy consultant. He can be reached at khalidwaleed@sdpi.org and tweets @Khalidwaleed_.