Submitted by Inamullah

Submitted to: Dr. Prof. Rehana Hashmi

Roll number 54
Semester 8th

Chapter 19
1.Different sectors; social sector that include education, market, healthcare act.

The government and social scientists lament the state of social sectors in Pakistan. It is usually
presented that governments and public sector has ignored the social sector and has not given it
due importance. The chapter examines if the social sector is at such a precarious condition how
has the economy been growing? Do growth rate and social sector have some links?
The measure of social development is usually GNP, but it is not the sole standard rather political
commitment, structures and political involvement are equally important. GNP is very simplistic
and crude measure of the social development while we have another measure the HDI, which
can better explain the social development. HDI is greater larger composite which captures more
than just per capita income. The HDI contain three indicators: 1) life expectancy; representing a
long and health life 2) educational attainment; representing knowledge 3) the real GDP (in
purchasing power parity dollars), representing a decent standard of living.

1993 Rank 2011 Rank %

GNP 430 31 1120 38
HDI 128/176 146/186
literacy rate 54.9
Female 28.8
literacy rate

These few figures indicate the underdevelopment of Pakistan. The GNP has increased only by
2.1 times in two decades while the other countries like China, India and Bangladesh has shown
phenomenal growth. In human development index Pakistan is now falling among the African
countries. Above the rank of 145 in terms of HDI are only 5 countries other than African
countries and Pakistan is one of them. The HDI has further depreciated from 128 to 146 which
is bad to worse condition.
Pakistan’s economic and social profile looks like African countries because of lost decade of
1990s and although there was growing economy in Pakistan between 2002-07 but the social
sector became abysmal which indicate that rather than GNP per capita, political will and
commitment are also important. If we look at the trends the year 1947-77 was also of low
social development but it maintained the growth rate of the economy and in 1988 again growth
rate was high but it was unable to be sustainable as in the decade of democracy in 1990s it
went low. There are some identifiable trends in economic and social development in pre 1977
era and post 1977 era.
Education:
Education is one of the important indicators of social development and it works as a proxy to
many other indicators because they depend on education. Therefore, education is one of the
indicators that form the Human Development Index.
Literacy rate of Pakistan:
There are many problems in education and some important are enlisted below:

 Due to the low pace of government and lack of facilities in public sector the private
sector play important role and it has increased exponentially
 Education is a business for private sector
 The demand has outstripped supply which adds up to the problem
 Some private components in education, while fulfilling the urgent need, have
compromised the quality, relevance and standard.
 Government have no monitoring process to ensure minimum standard
 The female literacy rate is still low and to do any major breakthrough government must
focus on the expansion of the girl’s schools.
 Availability, of quality female teachers due to social mobility restrictions, is also a
problem
 Along with primary education, the government should focus on secondary education as
well because there is dire need of revised syllabus and a need to add subjects related to
vocational angle.
 Government should develop a public sector quality and quantity in education because
free market based private profit-oriented education system will create the social
discrimination.
Population welfare and family planning: The Demographic Transition
Pakistan introduced its family planning and welfare program in 1950 but it has not achieved the
expected success due to problems with delivery and quality of the guidance and work. This has
resulted in demographic transition to the world’s sixth largest nation. But this demographic
transition demands a growth strategy which should focus on employment otherwise the
Pakistan’s hopeful dividend will become a demographic nightmare. According to British council
report claims that Pakistan is facing a frightening demographic disaster with young people
frustrated, profoundly religious and having little faith in democracy.
Urbanization and Housing
The proportion of population in urban areas has increased from 18% in 1951 to anywhere
between 60 and 70 percent. The urbanization phenomenon is visually evident, and number of
sizes of small and large towns have been growing. With this most of the agricultural land is
being taken by housing schemes and there are many economic and social problems rising with
the rise of demand for the housing.

Chapter# 22
Poverty: trends causes and solutions

This chapter focuses on the major trends in poverty, its rise and fall along with the political and
economic landscape. The contextualization of poverty in Pakistan is major theme of the
chapter.
Defining poverty: Poverty is a dynamic term and it has no absolute value or definition.
Traditionally it was defined on the absolute monetary terms but it include the non-monetary
indicators as well i.e. issues of justice, rights, participation and equality, especially all types of
economic and social exclusion, usually based on the unequal material relations and their
manifestation of inequal powers. The most important and commonly used standard of poverty
include using the poverty line. Poverty line is drawn on the basis of basic requirements. In
Pakistan, the poverty line was defined on the two bases, using calorific approach and basic
needs approach. The planning commission of Pakistan decided that poverty line for Pakistan
will be estimated on the 2350 calories per adult per day. The poverty line on this basis for
FY2009 was RS. 673.
If we look at the trends of poverty, it was on rise till 1960 but then poverty level declined till
1987/88. This declining trend was apparent in 1990, albeit at lower pace. Another noticeable
trend from the chapter is that poverty went down in urban centers while in rural areas poverty
is continuously on rise which is widening the urban-rural divide. In 2000s a major controversy
emerged with regard to poverty levels in country. Although, there was high growth and rise in
per capita income in 2002-07 period, but this growth was accused as false bubble boom due to
the strategic conditions with long-term implications for economy and society.
As far as the poverty alleviation is concerned it is possible through a mechanism of economic
growth, high remittances and active public policy rather than specific poverty alleviation
scheme or policy. Like Junejo governments five-point program focused on development,
generation and infrastructure, but again, not specifically focused on poverty alleviation. The
main components of poverty reduction strategy include:

 Substantial economic growth, at fast pace, resulting in an increase in per capita income;
sustianble economic growth is to take place through infrastructure development,
taxation reforms and financial sector development.
 To provide employment opportunities to counter the recessionary trends and to provide
employment for poverty reduction.
 Expand and improve the quality of social services
  Mobilization of the support organizations, NGOs and partnerships with the private
sector.
 Community based participatory development programs.
 A system of social safety nets
 Microcredit programmes for the poor
 Development of the human resources and the basic skills
 Information needs for poverty policy
 Empowerment of woman
 Focus on issue of governance
The whole of the chapter focusses on the trends of poverty in Pakistan and the trends show
that poverty rose from 1988-2004. Almost 50 million people went below poverty line. One of
the major reasons for the increased poverty level was the shifts in governmental plans and
policies in the form of structural adjustment programmes. The only option for the alleviation of
poverty is land and agrarian reforms which no government is willing to take.

Chapter 26
Political economics: Class, state, power and transition
This chapter focuses on the nature of the social change that has taken place over the last six
decades and so. Its purpose is to identify the social groups and institutions that have impact on
the social, political and economic patterns of Pakistan, of which military as dominant one was
the most important. This chapter also gives flashback to the structural problems that exist in
different layers that constitute Pakistan. Another purpose of the chapter is to examine the
nature of the relationship between different classes and groups. An assessment is made about
economic process of last sixty years and its impact on society, politics, state and class.
Now, we will summarize the main themes of the chapter:
Civilian bureaucracy and Industrialization 1947-58:
The problem ridden newly emerged state of Pakistan, with many other problems faced the
problem of underdeveloped institutions. Bureaucracy was the only we managed and working
institution which seemed only modern and developed institution to run the country. The import
substitution industrialization was also a well thought out policy of bureaucrats. Bureaucrat
turned politicians were the important actors in industrialization.
Civil and military bureaucratic capitalism 1958-71:
In 1958, military emerged as a stabilizing shell under which industrialization with the help of
bureaucracy and industrialists went further. Later on, when this industrialization was supported
by other fields like agriculture it led to the increase in purchasing power of the people and
finally, we know this decade as decade of development. Hence, the political nature of the
regime, or the political settlement under military was where military and bureaucracy governed
Pakistan, assisted by allies in industry and agriculture.
A shift in emphasis: 1971-77:
In the beginning all of the classes supported Bhutto’s left leaning policies but his social
programme of early 1970s shift the support to opposition because bureaucracy and industrialist
along with land owning classes were affected while military was also sidelined and
marginalized. Hence, between 1947 and 1977 the following picture of Pakistan’s political
economy emerges. Large-scale economic development had taken place, in both urban and rural
areas, giving rise to a middle class that was still young and economically prosperous, but was
essentially non-existent in political terms. Industrialists having made great inroads and
extraordinary economic gains in the first twenty-five years, were nowhere on the scene, even in
economic terms, in 1970; many had lost fortunes, while others had fled the country. The
feudals had increasingly been losing economic power as mechanization took hold in agriculture,
and capitalist agriculture began dominating production. Although the BD system produced
many agriculture-based politicians, but still civil and military bureaucrats were dominating the
political scene.
A military state and the middle classes: 1977-88:
The takeover by General Zia ul-Haq crystalized the hegemony of the civil and military
bureaucracy, not just on the political map of Pakistan, where they had existed preciously, but
also, for the first time, in the generation and distribution of economic resources and wealth. In
earlier period military had played administrative role but under Zia it enhanced its role in
economy as well.
Some important developments of this era are the Gulf remittances and US aid along with
structural adjustment programmes. Elections under local bodies system were held in 1979, 83
and 1987. These elections produced a participatory middle class in politics which later on
became permanent mark of the Pakistani politics and they won elections for parliament in 1985
and following elections as well.
Elections without Democracy: 1988-99
This is the period when world was sniffing the air of democracy from Eastern Europe to Asia.
Pakistan also came under a civilian leader as a result of 1988 elections which were considered
fair at that time and BB was the true leader. However, army and military institutions influence
grew further and interference in politics. Total four elections were held form 1988-99, all were
rigged, and highly manipulated. Democracy failed at the hands of provinces, the role of ISI and
bureaucratic organizations is increasing.
The return of military 1999:
Against the naivete perception of 1990s, that military has confined itself to the barracks,
Musharraf installed his coup on 12 October 1999. There were many similarities with previous
military generals as the purpose of coup was to save country from politicians, to end corruption
and to put political economy on the high course. All of the generals came with their devolution
plans and praetorian democracy. With that amending, trampling and distorting of the
constitution was also the norm of martial law which fourth general also followed. Controlled
democracy was a fashion and its success relied on the unenviable front-line status and
subsequent US assistance as a reward to fight for US interests. Mush brought many important
social and economic changes, in economy hundreds of serving and retired military men came in
and caused growth and extensive involvement of Military Inc. while the social changes include
alliance of religious parties and their coming into parliament with full swing power under
Musharraf.
Issues in Pakistan’s political economy:
Now the focus is on the issues that have emerged in previous few years.
The first of the obvious impact on the social, economic and political scenes is through vibrant
and buoyant middle-class revolution rampant in whole of the country. The Pakistani middle-
class has emerged exponentially as clear from the exponentially increased consumerism, and
this middle class has demands which are not fully dealt with through the political and economic
realities of Pakistan. Pakistan is struggling to deal with growing needs of society which is leading
society to opt for alternative ways.
The second problem is military Inc. The ever-growing corporatization, involvement and
intervention in the economic affairs (military has been key player in the management of
economy and has been sole arbitrator) along with political realities is also a reason for the
dysfunctional political economy. When military has stakes in national economy from increased
defense budget and direct stakes in agriculture, service and manufacturing industries, it is bad
enough to consider that military will free the political level playing field for politicians.
The third problem is praetorian democracy and praetorian technocratic apologists. The military
has always controlled the democratic process under the shadow civilian leadership with the
help of technocrats who are mostly interested working under military and caretaker (non-
elected) governments.
Pakistani state, society: groups factions and influence: The fourth problem is the groups or
factions is society which usually come out of the social relationships in the society. These social
forces in Pakistan include military as an interest group, Islamic political groups, middle class,
industrialist class, NGOs, international powers and donners etc.
The rapid urbanization and consequent demographic transitions is another issue in the political
economy as the urbanized middle class has deep impact on social relations.
In short, this chapter argues that economy is dominated by middle class, large landowners (not
feudal), traders, industrialists, manufacturers and somehow these groups have cashed their
economic strength to share the political power. Since, these groups along with the military have
been able to capture the state, they have seen no need for participation or democracy in past.
Military being strongest institution and contender of power should be accountable and
questioned for faltering nature and miseries of Pakistan.

Chapter: 27
A new political economy:
The chapter is divided into three sections while the first section analyses the critical
developments which occurred/happened in the period of 2000s. From lawyer’s movement to
Lal Masjid attack and Musharraf’s imposition of emergency in November 2007 and the daunting
rule of army dictator and new government of PPP all are comprehensively analyzed. The
chapter puts a flashlight on the watershed events of 2011 which questioned the military might
and capability due to their severe criticism on social and electronic media. And this first section
ends with May 2013 elections which were as important as were the 1988 elections which
resumed the electoral politics in Pakistan.
The second section of the chapter focuses on the structure of the political economy and
changing characters of state. The old scholarship which theoretically described the nature of
Pakistani state was given by Hamza Alavi in 1972. Alavi’s argument was based on the notion
that a nexus of power existed in Pakistan between landlords, the military, and the bureaucracy
and what he called metropolitan capital which, based on Pakistan’s colonial legacy and
evolution, resulted in an overdeveloped post-colonial state over and un or underdeveloped
society.
Aasim Sajjad Akhtar contends his argument and criticize it being static and he claims that post-
colonial state is little more than mere coercive apparatus. Akhtar and many others claim that
state has considerably changed now as the subordinate or intermediate classes play an
important role like counter hegemony and they are challenging the status quo. While military is
no more the strongest force rather urban commercial classes are now big players and that the
landed class is also no one patron amongst many. So, we can see state and state behavior along
with society is changing.
The third section focuses on how Pakistan is changing and is more reflective and speculative
and offers a sketch of thinking about a new political economy of Pakistan. In past sixty years
military was the strongest institution but the landscape has been changed since 2007. Now two,
or possibly three other institutions share power with military, aggressive parliament, the active
and independent judiciary and to some extent the questioning media. The military is not what it
was in the eyes of the public nor in the equation which explains the Pakistan’s political
economy. The new contenders of power are influencing the course of state, its institutions and
the economic decision making. These institutions shape the nature of state as far as the class is
concerned, no class shapes the nature of state. The above-mentioned institutions are all multi-
class and they dominate the state apparatus and may be that is the reason all of the analysis in
Pakistan is based on the institutions rather than the class structures. On the other hand, there
are forces which challenge the authority of the state and they have their parallel power on their
own i.e. terrorist organizations, organized and unorganized Islamist Jihadist groups.
Unlike many other countries which have the logic of path dependence, internal consistency
which allow one to make projections into future, the only thing certain about Pakistan is
Uncertainty. The events of Soviet Invasion and 9/11 all happened suddenly and totally altered
the track for Pakistan.