Daily Times

Though capitalism is the most exploitative economic system known to mankind yet its proponents continue to expand it. After the collapse of the mighty Soviet Union, deregulation made it even more lethal. The distribution of wealth in the world today is highly skewed. For the rich it is the best of the times while for poor the worst. While poverty is on the rise, the number of billionaires continues to increase.

The rapid growth of the People’s Republic of China (PRC) continues to challenge the myth of deregulated capitalism. As a last defence the term ‘State capitalism’ is being used for the Peoples Republic. Instead of allowing individuals to control the wealth and natural resources of the nation, the state assumes this vantage position. It is then in a position to serve the people through inclusion and sharing instead of exclusion and exploitation. Such form of capitalism stands out with all its dividends as seen in PRC.

The industrial revolution that started in 1760 and continued till 1840, changed the world for ever. With new large volume manufacturing processes the economy moved from agrarian to industry while over running the handicrafts sector. There was a major distribution of wealth. Capitalism started to dominate; labour reacted to this uneven distribution of the bounties. In Chicago on May 04, 1886 at the Haymarket a clash between labour and capital took place. Bullets were fired with bloodshed. Red emerged as the colour of resistance. Today the day is commemorated as the ‘International Labour Day’.

The twenty century was rocked by three revolutions (Bolshevik, Chinese, and Iranian) and two World Wars. We are now completing the 18th year of the 21st century. The gains of the last century have almost been neutralized through the free market approach of deregulation, globalisation and privatisation. While the Soviet Union collapsed, both China and Iran have kept their course. The People’s Republic has emerged as the second largest economy of the world; the Islamic Republic of Iran (IRI) has made great strides in human development and is poised to take off once the controls are loosened.

Unfortunately, Pakistan is neither here nor there. Bhutto introduced the concept of ‘Mixed Economy’ under which basic industrialisation took place which was overlooked during the regime of the dictator. Steel Mill, Fertilizer Complexes and Defence Production units were established under self-reliance programme. Nationalisation of existing industries did not help but no country has been able to grow without covering the basics with steel and fertilizer included.

Private and individual controls of national assets have played havoc on economies. In the People’s Republic private sector investments have been allowed but the state continues to be a stakeholder. Profits earned from these ventures are then used for nation’s development. Taxes alone cannot generate enough revenue needed for growth. The republic cannot abdicate its responsibility to the uplift of the common man who is considered to be an important component of the set-up. It is ‘Motherhood’ in its purest form (Riyasat hogi maa jaisi).

While people of Pakistan have capital to enjoy the state does not. The informal sector continues to grow while the formal sector shrinks; it is a failure of the colonial state that governs the Islamic Republic of Pakistan (IRP). A regime that does not work in the interests of its people is termed as ‘oldest form of government’ by Karl Marx. It is time to dismantle these ancient systems of governance as most nations have done to advance.

The November 07, 1968 revolt against the first dictator was averted by the free and fair elections in 1970, followed by a constitution in 1973.

Pakistan continues to suffer due to a serious lack of revolutionary leadership. In the last century several cadres were prepared to meet the challenges of the changing world. Even e centrist party like the All India Muslim League had a left of centre group headed by stalwarts like Mian Iftikharuddin. Who then founded the progressive papers limited which was later confiscated by the first dictator to corner the free thinkers.

When the people of Pakistan have capital to enjoy the state does not

Riyasat-e-Madina is being debated these days. Though it was the first welfare state of the world where the needs of the marginal segments of society were met through Bait-ul-Mal. Focus areas were employment, basic needs and relief from debt.

Historians claim that it was indeed the first organized effort to narrow the gap between the rich and the poor. Some economists claim that it was a capitalist state where private ownership and free trade was encouraged. After building the first mosque in Medina, trading posts were established.

Traders operated freely however, in addition to collection of zakat, social responsibility was taken very seriously. Rights of neighbours, family members were recognized.

Perhaps state capitalism, Bait-ul-Mal is an effective way to collect wealth and then use it for common good. Citizens have rights over their natural resources which should not be held by individuals or squandered in the name of free enterprise.

The promised trickle down has not taken place in capitalist economies as a result the rich are getting richer while poverty is on the rise. Under the prophet (PBUH) Riyasat-e-Madina performed well, it continued to expand its welfare activities till the martyr down of Hazrat Ali (RA).

In our times the People’s Republic of China is serving 1.39 billion people while emerging as a model for the world to follow. With our population of around 200 million, I am sure we can learn from the Chinese model.

The writer is Ex-Chairman Pakistan Science Foundation. He can be reached at fmaliks@hotmail.com

Published in Daily Times, November 20^th 2018.