Daily Times

The definition of prosperity for a nation is not confined to high gross domestic product or a high tax-to-GDP ratio but has a much wider scope. One can refer to The Wealth of Nations, written by Adam Smith, the central thesis of which was that the need for humans to fulfill long-term self-interest results in prosperity. Smith firmly believed that people unconsciously promote public interest through economic choices giving rise to a free market force. As long as the people exercise these choices freely, the potential for prosperity remains great but interference by governments can produce shortages and surpluses.

The Smithsonian government’s responsibilities are limited to defence, universal education, development of infrastructure, enforcement of legal rights, and controlling crime. He sees the government stepping in when people act exclusively in their short-term interests, thus legislating and enforcing rules to check fraud, adulteration, theft, violation of contracts etc. While cautioning against larger bureaucratic governments, he writes: “There is no art which one government sooner learns of another than that of draining money from the pockets of the people.”

Smith believed that a majority of people practised self-interest, and his advice to them was that they should have an enlightened self-interest whereby they must work diligently keeping in mind long-term goals, and learn the value of investment through savings, expanding their trade with technological advances. He suggested that government should follow free market principles by keeping taxes low and allowing free trade across borders by removing all tariffs, which he found to make life more expensive for people in addition to stifling industry.

Could there be any doubt about the aspiration of achieving prosperity by every country in the world? To be happy, healthy, successful, and prosperous are deep-rooted desires of individuals and nations; then how come they do not attain these objectives, with the exception of a few countries? According to sociologists, critical to the success of both people and their nations, are the values they profess and adopt. One thing is certain. Success does not merely mean making money and wealth, it also entails being happy and content.

In the Legatum Prosperity Index 2018 Survey, Pakistan was placed 136th out of 149 countries. LPI ranks countries in nine sub-indices: economic, fundamentals, entrepreneurship and innovation, democratic institutions, education, health, safety and security, governance, personal freedom and social capital. In 2009, out of 104 countries so surveyed, Finland ranked the most prosperous nation; in the 2018 survey, its position is 3rd. The first and second positions are now held by Norway and New Zealand, respectively. For us, the case of Finland is more interesting as it rose to the high position after facing extreme difficulties. According to the creators of the LPI, the approach to measuring prosperity is not just material wealth but also happiness and quality of life. In fact, they note that that the most prosperous countries are those that have happy, healthy and free citizens, something in the nature of Riyasat-e-Madinah that our prime minister says he is so keen to convert Pakistan into.

Where the sole objective is attainment of wealth, even at the expense of rendering lives of the common people miserable, no country can ever become prosperous in the true sense of the word

At this juncture, it would be appropriate to mention that Finland did not always enjoy this status. It was once a part of the Russian Empire. Since 1917, after the Russian Revolution, it has suffered immense political volatility. Having declared independence in December 1918, a brief civil war erupted between the German-influenced Whites and the Russian-supported Reds, which caused many thousand deaths through disease, malnutrition or execution. The country fought the Russians in World War II (1939-1945), and its economic condition then was so poor that women would cook food and carry it to soldiers on the battle fronts. Until the 1970s, Finland continued to be in a political and economic quagmire.

On the economic front, the country has had to face many challenges, particularly in arable farming because of its climate and soil condition. But the resilient Finn farmers managed to overcome these deficiencies by relying on quick-ripening and frost-resistant varieties of crops, cultivating south facing slopes along with richer bottomlands and treating the soil with lime and years of cultivation to neutralise excess acid, thus improving fertility. Compared to farming in other European countries, Finland boasts of a more efficient and productive agriculture.

As per the LPI, history is not destiny. Although many of the countries falling in the higher ranks have long histories of prosperity, many others, in the recent past, were afflicted with poverty, oppression and unhappiness. Finland is one of those. To be ranked as number one is an honour for the country but this achievement did not come overnight. All the evaluated sub-indices – foundations of prosperity – are closely linked and for right reseults, have to be developed simultaneously. This can only be done when the end goal is the happiness of the people. Where the sole objective is attainment of wealth, even at the expense of rendering lives of the common people miserable, the country can never become prosperous in the true sense of the word.

When is a nation happy? Legatum’s answer is fairly simple. “Happiness is opportunity, good health, relationships, and the freedom to choose who you want to be.” If Pakistan wants to join the category of prosperous nations, it would have to reset its direction and adjust the sails of its ship accordingly. 70 years ago, when Finland was grappling with its woes, Pakistan’s founding father determined the goals, which was the well-being of the people, especially the poor. Somewhere along the years, we lost sight of this goal and deviated to more sinister ones. The choices have made the nation one of the world’s most unhappy and indebted.

The writer is a lawyer and adjunct faculty at the Lahore University of Management Sciences