Daily Times

The world is knocking at the door of Fourth Industrial Revolution with slogan of “nothing is impossible”. Artificial intelligence, quantum computing, robotics, and 5-G etc. are talk of the town. Machines are coming to rule the economies. The wealth generation has reached at highest level of human history. These are indicators, which were sold as a mean to reach the dream destiny of human, the prosperity. Unfortunately, the marvelous growth and innovation could not create universal prosperity and world is still unable to solve the fundamental issues.

Globally, 734 million people are trapped in extreme poverty (Pakistan, 39%). The world is home to 821 million food insecure people (Pakistan, 58.8%). More than 258 million kids are out of school (Pakistan, 22.8 million). The WHO tells us that more than 2 billion people use containment water (Pakistan, 17.7 million). UNHCR came up with the figure that 79 million people are forcefully displaced and 80 percent lives in the most food insecure regions of the world. Besides, among all these displaced people 40 percent are children. On top of that poverty and food insecurity have started to increase again, and climate change is making it difficult to tackle the issues.

These are disturbing facts and figure in the context of human progress and wealth generation. It is happening despite the fact that global community has erected different institutions and mechanisms like MDGs, SDGs, UN agencies etc. to ensure wellbeing of human. The situation gives rise to a basic question, what is wrong? Where is the problem? The analysis shows that the prevailing system of economy and governance, which is based on the liberal economy and democracy, have fundamental flaws.

The deep dive highlights three very important flaws. First, the present model of economy and governance helps to concentrate wealth in few hands and cause in-equality. OXFAM, in 2018, calculated that 1 percent people had acquired 82 percent of generated wealth. The major sources of wealth acquiring were monopiles and cronyism. It further deepened the in-equality and gap between have and have not. The spread of in-equality has put a question mark on the prevailing systems of economy and governance. Even the most advanced economies like USA, UK, Italy has scored 0.43, UK 0.39 and 0.37, on Gini Coefficient, respectively. It is in opposite to the claim of proponents of present system of economy and governance, that system is based on the concept of equal opportunity.

Second, there are no mechanisms in the system, which can ensure the redistribution of resources. Liberal economy talks about the trickle-down impact, which is being presented as system of distribution of benefits. In reality, it is not working. Despite, the practical implementation of system, even in most developed countries, world is going through the worst phase of in-equalities. The most advanced economies like USA and EU are also facing serious consequences due to in-equality. The rise of anti-immigration movements and racial movement in USA has also roots in in-equalities.

Further, it has been predicted that COVID-19 will further give impetus to in-equality across the world. The glimpse of in-equality can be seen from the USA. During the last few months 45 million people had filed with unemployment bureau. However, at the same time tech companies as amazon, Microsoft and Facebook are making billions of dollars. It has been pointed out that the net worth of Jeff Bezos had crossed the magic figure of US$ 189 billion. The process will be accelerated in future, as machines will be taking over jobs.

Third, the governance, system run by the concept of liberal democracy has started to show serious shortcomings and flaws. The election has become the game of money and fake news. The participation of common man has become impossible except the voting. It has also given rise to sharp division in societies and rise of conservative and violent parties. The rise of strong man is another phenomenon, which has presented many challenges. The worst problem of the system is crony governance.

Hence, to achieve the dream of prosperity, we need to fix the system. The assumption is that the reforms will not work, as we have been witnessing reforms for decades without results. Thus, there is need of new system which can effectively manage the flaws. First area of intervention would be to tackle the in-equality, which is mother of all ills. For that purpose, we can take guidance from Islam which, presents a solution in the form of Zakat. It is excellent system of re-distribution of resources.

The Zakat system has very distinctive characteristics. First, in only obligatory for rich to pay on the basis of a fixed formula. Second, it is strictly directed towards the resource poor. Third, it discourages the process of wealth accumulation. Fourth, it creates social harmony and cohesiveness in the society. Fifth, it is right of resources and not the favor by rich. However, this system is only applicable for Muslims, thus there is need to find a universal formula on the basis of Zakat.

It would be advisable for the ruling elite to change the system or be ready to face the consequences. If, they think, they will find new places to live, then be sure the same phenomena is happening all across the world

Second, wealth accumulation is also being supported by the Riba based system. As, it creates avenues to earn money through money. It hinders the investment and circulation of money in the economy. Thus, there is need to eliminate the Riba system and introduce the partnership-based system. It is even more important for Pakistan being an Islamic country, as Allah has declared it a war against Allah and Prophet (PBUH).

Third, governance system should be changed from election to selection. However, there is need to cautious that the selection does not mean the kingship. It means a process of selection, which ensure the training, practical experience and character building on the concept of humanity and morality. Islam presented such model 14 hundred years ago. It is based on human dignity, strict character building and public accountability. We have seen many incidents even when Khalifa had to explain his resources and position. Unfortunately, it is not implemented anywhere in today’s world.

The closet forum of such model is implemented in China. The system is very clear in China. It presents equal opportunity and ensure training, practical experience and character building. Second, planning process is based on the bottom up approach and decision making is based on the top down approach. Implementation is joint venture between state and people. Accountability is ruthless. Owing to these characteristics, model is very close to Islamic model by leaving aside the ideological and religious differences. Pakistan can learn this governance system and tailor it according to the needs of country.

In the conclusion, we have to be very clear that the patience of people is exhausting. They are tired to listen beautiful speeches, sugar coated reform agenda and cronyism etc. They want real change and the existing systems of economy and governance are delivering. Thus, it would be advisable for the ruling elite to change the system or be ready to face the consequences. If, they think, they will find new places to live, then be sure the same phenomena is happening all across the world. Besides, color politics and islamophobia are on the rise, which will it difficult for the elite to settle in.

The writer is Director, Asia Study Center SDPI