Daily Times

For economic development, it seems desirable to set forth, in terms of generalization, relationship that have historically characterized the developmental process. Industrialization is the key to economic development and, in fact, is virtually synonymous with it. Development requires an increase in the amount of accumulated capital per head of population, in industries, the distributive trades, and in government. In a number of countries, economic development must begin by strengthening and improving the agricultural sector without, initially, an increased capital accumulation. This may even take the form of strengthening subsistence. Agriculture is the nonmarket sector of the economy. But at some point, growth requires capital, and this will inevitably mean industrialization in the sense of increased fabrication, with a concomitant shift of economic activity and the labour force away from agriculture and into other activities.

In most countries this is what economic development has come to mean and commands widespread support – industrialization to strengthen the non-agricultural sector of the economy. It is only through industrialization that an underdeveloped country producing raw materials can gain economic independence in relation to the more advanced countries on which it depends for markets. It is only through industrialization that an economy can become both specialized and diversified for progress.

Economic development can be operationally defined in terms of (a) an increase in real output per capita, including the output of the nonmarket sector, and consequent increase in real income per capita. The emphasis on both output and income is necessary in establishing a usable criterion for judging the rate of development. Progress in the economy as a whole can generally be gauged solely on the basis of output per capita. The consequences of almost all policies, public and private, can be examined and appraised in relation to the output criterion. However, economic development has come to mean more than this. Historically, as western European countries and the United States have developed, larger numbers of the population has enjoyed increases in income.

A permanent basis for higher living standards must be created within the society; indeed, this is the very meaning of economic development. Unless the chief nurture of growth is indigenous, the society is constantly exposed to retrogression

On the other hand, the distribution of income is typically more concentrated in an underdeveloped economy. This emphasis on the distribution of the “fruits of development” distinguishes modern programs from the programs of colonial development. Total output, and even output per capita, may well increase in the colonies, but the income counterpart may be exported, with no resulting improvement in the distribution of income through the whole population. Economic development should be judged not only by the increases in output but by the extent to which there is an increased participation in economic activity and in the income derived from it. The pressure from an increased population need not prevent development, instead, it may intensify the need for development; it may slow the rate of development; it does not necessarily preclude it.

The histories of Belgium, Netherlands, and Japan, among others, suggest that high ratios of population to the land area do not in themselves stifle economic growth. There is little historical evidence to confirm the view that the Malthusian spectre condemns countries to poverty until birth rates are reduced.

In fact, the experience of developed, industrialized countries would suggest quite the contrary. As industrialization and urbanization proceed, and as the proportion of families engaged in agriculture declines, birth rates also decline, until at some point the rate of population growth declines. It is reasonable to expect that a successful development program will in itself, over time, contribute to a solution of the population problem.

What is now demanded is a widespread popular participation in the process of development. This means that for many countries a new system of economic values must be internalized, with new patterns of behaviour and expectation. Development must command the efforts and the moral support of increasing numbers of persons.

A permanent basis for higher living standards must be created within the society; indeed, this is the very meaning of economic development. Unless the chief nurture of growth is indigenous, the society is constantly exposed to retrogression.

Moreover, economic growth must be viewed as a learning process. New skills are acquired and old skills abandoned, with a resulting increase in the specialization and interdependence of the total system.

Economic growth not only increases the specialization and complexity of an economy; it also increases certain kinds of internal mobility. This mobility is geographic and social. This will be accompanied by social mobility the upgrading of persons in the hierarchy of skills and prestige, or the new creation of such hierarchies. Old occupations acquire new status, challenging the established power positions, which have hitherto inhibited and resisted the growth process.

In every society, there are persons and interest groups resistant to change. Where these are in command of the power structure of a society, there will be no evident impetus to economic development until new persons and organizations are in a position to challenge the existing order. Most of modern economic theory presupposes a specific organizational character for society. This is an outgrowth of attempts to describe and understand the behaviour of advanced industrial market structures. Much less attention has been devoted to pre-capitalist organization and to the factors that accompanied the transition from one kind of economic order to another.

Insights that may be provided by economists must be supplemented by the studies of political scientists, sociologists, geographers, and anthropologists. These skills are particularly needed in the study of the organizational character of society and its relation to economic growth the interaction between resources and organization, the ways in which groups are organized for the conduct of economic activity, the leadership patterns that develop within groups.

With the current economic situation and the rise in inflation, the Pakistan Tehreek-e-Insaf (PTI) government is relying heavily on foreign aid under the international monetary fund (IMF) programme to help ease the situation domestically. Pakistan has been able to comply with many of the clauses postulated by the IMF and after the recent review a loan of one billion dollar is approved by the Asian Development Bank (ADB). This loan will go towards helping the government implement reforms and actions to improve the current account deficit, Strengthen the revenue base of the country and to help the poor against the impact of the economic crisis afflicting them.

Politicians need to understand the significance and meanings of liberalism. They need to draw a line between liberals and extremists. Focus has to be on dangerous consequences of religious extremism leading to terrorism, even. This is an existential question for the state of Pakistan. Wrongs have to be corrected. This infact should be our collective responsibility as a nation. We must respect the constitution and strengthen our institutions for the sake of peace, harmony and development. For a way forward it is important that the political party in power should lead on all national, regional and local issues and make all major decisions in cooperation and coordination with leaders of the opposition.

Behaviors and attitudes make a difference in developing an enabling culture, may it be for policy formulation and implementation, economic development or public welfare, or a decision on extension in service of the Army Chief or the appointment of Chief Election commissioner and the members of the election commission.

Methods and procedures and rules and regulation you learn through experience. The executive branch of the government must take initiatives for all civil matters. This requires an environment of trust and reconciliation. Imran khan will be effective Prime Minister if the opens up to politicians and people of all shades. It is time to start handling things with care and to opt for positivity and good things. It is not necessary to bother the apex court unnecessarily. Let the judiciary do its own work.

The writer is former Director National Institute of Public Administration (NIPA) Government of Pakistan, a political analyst, a public policy expert