KIPS SUPER LECTURE

TOPIC: 1- Globalisation and Pakistan

2- Populism
By Farhan Ahmad Mirza

Globalisation ; Globalization, or globalisation, is the process of

interaction and integration among people, companies, and governments
worldwide .

Globalization is the condensation of entire globe into one village with fast
technology and swift transportation

‘’Globalization is a fact, because of technology, because of an integrated global

supply chain, because of changes in transportation. And we're not going to be
able to build a wall around that.’’ (Barack Obama).
quotes ;-
1- Arguing against globalisation is like arguing against the laws of gravity. ―Kofi Annan, Former UN
Secretary-General
2- No generation has had the opportunity, as we now have, to build a global economy that leaves no-one
behind. It is a wonderful opportunity, but also a profound responsibility. ― Bill Clinton, Former U.S.
President

❖Manifestations of Globalisation
1- Car manufacturing
2- China and South KOREA trade with Asia and rest of the world ( Samsung , Changan
and many more )
3- Digital payments
4- Integrated health systems
5- Internet devices

❖4 phases of globalization
1- Globalisation 1.0 ; European expansionism through imperialism , making colonies in
America and Asia .
2- Globalisation 2.0 ; Bristish expansion ( ww1 and ww2) , it showed negative impacts of
Globalisation
3- Globalisation 3.0 ; decolonization of AFRICA AND ASIA ( formation of pak and india )
coupled with industrial revolution
 4- Globalisation4.0 ; infrastructure and digital revolution

❖Key aspects of Globalisation

1- Economic dimensions ; IFI ( International financial institutions) and Trade agreement
coupled with FDI and free market ideology.
2- Environmental dimensions; climate pacts ( examples; Rio summit and Cop 26)
3- Political dimensions ( international civil societies like NGOS. , expansion of
intergovernmental org eg ASEAN and SCO ,
4- Cultural dimensions ( fast food and western clothing/events)

Benefits ;
1- Globalization has transformed the world. Global political, economic, social, and cultural
outlooks have changed altogether.

2- Globalization has worked as a vehicle for the spread of democracy that has enabled
man—partially if not completely—to conquer peace and develop robust governance
structure.

3- It has revolutionized the world markets that have changed global wealth dynamics. A
large segment of society has been integrated into the world political and economic
structures, particularly women.

4- People have been able to get their fundamental rights which was denied in pre-
globalization era.

5- Cultural assimilation of various civilizations has facilitated to enhance the cognizance of

different cultural patterns that help cultivate tolerance and mutual respect.

6- The spread of knowledge and technology is also a product of globalization. Access to

knowledge, spread of information and ubiquity of communication infrastructures have
fundamentally transformed the world.

7- Globalization has increased the access to global markets, expanded world supply chain,
lowered the prices of commodities, augmented economic growth, mushroomed foreign
direct investment (FDI) in pauper countries, and amplified employment opportunities
worldwide.

More benefits
1- Free trade
2- FDI and flow of Technology.
 3- Employment generation
4- Inflow of information
5- Cultural intermixing
6- ecological solution
7- poverty reduction

Demerits ;
1- Economic inequalities
2- Human trafficking
3- Exploiting tax havens
4- Compromised sovereignty
5- Effect on local market
failures of globalisation acc to book ‘’ US VS THEM ; FAILURE OF GLOBALISM (by
IAN BREMMER )1-divides the world between winners and losers 2-Technology killing
unskilled jobs through Robots 3- It causes cultural anxiety ( case of EU) .

Globalization is the culprit of many misfortunes—economic inequality, pandemics,

climate catastrophe, terrorism, refugee crisis, spread of destructive weapons, identity
crisis, sovereignty challenges, disruptive technologies, human and drug trafficking and
exploitation—that humanity faces today.

https://dailytimes.com.pk/1081235/colonialism-to-globalisation/

• FUTURE OF GLOBALIZATION ?
Increase in regionalism
• The Conference on Interaction and Confidence-Building Measures in Asia (CICA) wields
a significant influence in the domain of regional security and peace-building, through
the prism of complex interdependence and liberal institutionalism theory.
• The intergovernmental forum, which consists of 27 member states, is dedicated to
fortifying confidence and instilling a spirit of dialogue amongst nations in Asia. Its
primary objective is to cultivate trust among member states, by fostering a conducive
environment for effective and fruitful discussions
• A plethora of evidences suggests that globalization will pack its bag and baggage to
retire. Regionalism has gained currency owing to the failure of globalism that will be a
death-knell to globalization.
• Also, identity crisis tends to mobilize the forces of nationalism against globalization, as
an example can be deduced from the Brexit.
• The disruption of global supply chain poses another serious threat to globalization as it
is evidenced from Ukraine War, the Covid-19 pandemic and economic decoupling of
major economies, particularly the US and China.
• Moreover, the rise of economic and cultural protectionist movements and xenophobia
in the shape of Islamophobia or Sinophobia are also arresting the tides of globalization.
 • It has been due to refugee influx, economic migration and cultural invasion of aliens
from different parts of the world.
• It has increased the notion of “nativism” that has paved the way for far-right politics in
advanced democracies.
• Today, national security has superseded global security. States have become vulnerable
to cyber threats, climate change, terrorism and social polarization due to hybrid
warfare; therefore, policymakers may think globally but they will act locally in order to
protect their national interest.
• Similarly, the rise of nationalism and populism will render the global multilateral
forums, the political bedrock of globalization, redundant.
• Unilateralism in foreign policies will make it difficult for states to collectively respond to
global threats.
• Hence, globalization does not survive in such climate, and these developments may
force globalization to hibernate.
• According to the World Bank, foreign direct investment peaked in 2007 at 5.3
percent of world GDP and drifted down to 1.3 percent by 2020. The world’s two
largest economies, China and the United States, have become increasingly hostile,
trying to reduce their dependence on each other for goods and services.
• however ,the world needs globalization for a better future like global
warming cannot be mitigated in deglobalized world

❖GLOBALISATION AND PAKISTAN;-

The Challenge for Pakistan For Pakistan

The challenge of globalization is to position the economy within the evolving constellation of cross-
border relationships so as to seize opportunities for rapid growth. At present, the country is more a
recipient of globalization than a participant and needs to shift its terms of engagement from passive to
active involvement.

On the plus side, Pakistan has benefitted well from the crossborder movement of workers. Pakistani
workers going overseas are a form of outward investment that has returned large flows of remittances
to the home economy

On the negative side

, Pakistan has been complacent on investment and exports. It was not a major recipient of the
worldwide surge in FDI. There was little FDI in manufacturing, and mainly in the extractive sector, which
generates few economic spillovers.

The Pakistan experience illustrates three half-truths about globalization.

 One is the notion that large economies do not need to globalize. The view – long popular in South Asia –
that small economies need an external engine of growth, but that large economies can develop on the
strength of domestic demand is a half-truth. China, as previously noted, is the counterfactual: a large
economy achieving double-digit growth in manufacturing through exports.

A second half-truth is that openness defines success – this is necessary but not sufficient. Pakistan was
more open than its neighbors, but was unable to translate its lead into successful integration.

A third halftruth is that technology is a quick fix. Technology transfer and acquisition expedite catch-up,
but keeping up requires learning and mastery. Like East Asia, Pakistan acquired technology from abroad,
but the emphasis here was on importing capital goods, even entire turnkey plants and factory
complexes. Unlike East Asia, little attention was paid to technological learning. Thus, Pakistan’s industry
today depends on continuous technology transfer; its technological capabilities have not emerged as a
driver of industrialization as in East Asia.

In particular, there is need for a stronger relationship between government and industry, and shared
views on:

(i) tackling the urgent problems of energy, security, and investor confidence;
(ii) practical matters of regulatory barriers that impede entrepreneurship and business; and
(iii) strategic plans for industrial upgrading. While the latter plans may focus vertically on specific
industries, much industrial policy is implemented horizontally through instruments such as
competition policy, export policy, regulatory frameworks, and health and environmental
standards, which apply to all industries and all enterprises, foreign and domestic, large and
small.

(iv) Finally, Pakistan has a number of scientific organizations that should be deployed in support of
the enterprise sector through research programs, industrial clusters, and technical advisory
services for SMEs. There is a continuing long-term need for greater public expenditure on
education and physical infrastructure. The large annual expenditures to maintain state-owned
enterprises could be better allocated to the development budget. Inefficient state enterprises
are not only a drain on public resources, but are also a burden on downstream industries. The
inefficiencies of Pakistan Steel, for instance, have impeded the engineering sector

❖ Let us access to how far Pakistan is positioning

itself to meet the challenges of globalization.

1-Agriculture;- The main reforms in agriculture sector have been to free agriculture markets for
products and inputs by deregulating prices and dismantling the monopoly of the public sector in
mandatory procurement of major crops. Cotton, Rice and Sugarcane were already sold by the farmers to
private sector but recently it has been decided to allow the private traders to buy wheat directly from
the growers without the intervention of the Food Department. Farmers receive market-based prices
equivalent to export or import parity but they are safeguarded against excessive volatility in prices
through the second buyer channel which is the Government.
2-Trade regime;- Pakistani manufacturing sector was one of the highly protected sectors among
the developing countries through a combination of high external tariff structure and quantitative
restrictions. The level and dispersal of tariff rates have both been excessively high historically.

3-Textiles The termination of Multi Fibre agreement (MFA) in 2004 presents an enormous
opportunity for Pakistani textile producers. As future market shares will depend on price and quality
advantage as compared to the current quota regime it will facilitate efficient and low cost producers to
enlarge their share in the North American and EU markets.

4-Promotion of Science and Technology: One of the worrisome developments during

the last three decades has been a lack of attention to producing scientific manpower of caliber in the
country.

5-Upgrading Quality of products: A serious difficulty in expanding Pakistani exports in the

Western countries markets has been the perennial problem of low, uneven and inconsistent quality of
our products

6-EXPORTS DIVERSIFICATION AND FDI INFLOWS WITH ICT

7-GOOD GOVERNANCE AND MACROECONOMIC STABILITY ALOMG WITH HUMAN DEVELOPMENT

CONCLUSION;-
Pakistan is faced with a stark choice today – whether it can actively participate in the growing world
trade of goods and services, foreign investment and capital flows, technological advances, labor and skill
supply and thus benefit its population and improving their standards of living or remain a by-stander
and marginal player pursuing an inward looking strategy. The findings of this paper are that Pakistan is
beginning to position itself for maximizing benefits from globalization as the same policies that are
conducive for accelerating economic growth and poverty alleviation domestically are also pre-requisites
for gaining from globalization. The serious concern, however, is, the underdevelopment of the country’s
human resources and the low skill intensity of its labor force. Unless the quality and outreach of
education, training, literacy, skills, health status are significantly improved Pakistan will remain
handicapped in maximizing these benefits.

➢ Populism ;
▪ Populism is defined as a system of politics that is elitist, exclusive, anti pluralist and even
called anti democratic.
▪ Populism on the left is often referred as social populism ( that don’t challenge capitalist
hegemoby anymore ) .
▪ Populism on the right is called national populism .(it is pro - nativism and anti
immigration , it encourages religions role in politics .
both left and right populists position themselves as being ‘anti elite’ and ‘pro –people; .
Populism defines a political approach that projects itself to appeal to ordinary people who feel
their concerns are disregarded by established political parties or groups. On the face of it, there’s
nothing wrong with that approach. Trouble begins when populist leaders draw battle lines against
political opponents as a fight between good and evil.
▪ A populist leader does not offer a better governance model but uses existing public
perception of injustice to further personal political ends.
▪ A populist uses existing public grievances by polarizing society into followers who are
right and virtuous people and opponents who are corrupt and evil. Add to this contest
between virtue and evil personal charisma and good communication skills and there is the
perfect populist pied piper able to sway followers upon followers with empty promises.

As a threat to Democracy
1-Anti pluralism being itself against democracy.
2-opposition to dissent

➢ How populist leaders operate; and their

characteristics
1- deceive masses through oratory fluency
2- unrealistic pledges in elections
3- vilification of opponents
4- opposed to rule of law
5- act as source of polarisation in society

Example Election slogans by Donald Trump( Make America great again ) means anybody who
opposes trump must also somehow be against American greatness .
Hungary under the long-serving Prime Minister Viktor orban has
politicised the anti-Muslim sentiment to keep himself in power.

In ‘Democracy Rules’, Jan-Werner Muller writes: ‘populists see themselves as morally pure crusaders fighting against
corrupt elites. They always immediately make it personal and they make it entirely moral, which means that the
parties opposing them are illegitimate and corrupt’.

‘Populists
are spin masters’, write Guriev and Treisman in ‘Spin Dictators: The Changing Face of
Tyranny in the 21st Century’.

▪ They hire pollsters and consultants, stage citizen call-in shows, manipulate the media,
mobilize trolls and hackers and social networks to skew information and engineer
popularity.

▪ When the facts are good, they take credit for them; when bad, they have the media
obscure them when possible and provide excuses when not. Poor performance is the
fault of external conditions or enemies.
 ▪ And disappointing outcomes are cast as still better than others could achieve…Such
leaders survive for a while, eroding their country’s reputation. But so far, they have all
been voted out of office to face corruption prosecutions!

▪ Populists follow a similar route to success: after years spent in political obscurity during
which they are not taken seriously by the people, they gather a passionate fan-group
around them.

▪ And suddenly with the help of strong state institutions, they’re in power. Once there,
they make a mess. Why?

▪ Because deceptively simple populist solutions to complex problems are neither

effective nor relevant, such as: honest leadership will eliminate corruption and set right
public finances, overseas remittances will deliver the required foreign exchange, a large
dose of religious education will abolish social evil, giving incentives to the rich will
accelerate growth whose benefits will eventually ‘trickle-down’ to the working people.
Meanwhile, they cut welfare programmes, give hand-outs to the rich, and jack up war
spending without a semblance of an effort to make budget numbers add up.

➢ Three techniques populists use for

governing
1- Mass clientelism( exchange of material for political gains )
2- State colonisation ( It is the technique through which populist occupy the institutions of
state in a manner that loyalist are placed an important bureaucratic positions) example ;
the independence of courts in Poland
3- Discriminatory legalism ( for my friends, everything, for my enemies , the law ) .

Solution ;
1-Stop giving tax reductions to rich people
2-Democracy and nationalism are common belongings and should not be allowed to be hijacked by a populist. A credible
and sincere approach to offer unifying pride in the country without trashing a foreign entity or government can focus on
celebrating the country, people, culture, and accomplishments. Offer hope and optimistic vision of a better future which is
inclusive, forward-looking and hopeful and which goes beyond just a rational appeal to interests or a technocratic future of
smart government

Quotes
Political populism always poses a great danger because it disorients
people, creates excessive expectations or, on the contrary, prioritises
objectives that are clearly not priorities or are simply impossible to
achieve.
Vladimir Putin
Media populism means appealing to people directly through media. A
politician who can master the media can shape political affairs outside of
parliament and even eliminate the mediation of parliament.
Umberto Eco ( Italian historian )

BOOKS
1-POPULISM
by PAUL TAGGERT

2-WHAT IS POPULISM
by JAN MULLER

Contact: Farhan Ahmad Mirza 03350172274