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Rule of Law, Shameless Plutocracy and Turbulent Economy

November 8, 2010 6 comments

Recently, Transparency International published their Corruption Perception Index in which Pakistan was placed at 34th position. Also in UN Humanitarian Development Index, Pakistan is proudly placed at 125 with Zimbabwe at lowest on 169 and small countries like Srilanka and Maldives in better positions of 99 and 107 than World’s 7th Nuclear Power.  Many people especially those with some sort of sympathies with our ruling elite criticize the authenticity of these indexes.

One of the main argument presented against the results is lack of understanding by these institutions about the local conditions and environment. This criticism seems to be valid and genuine because if the analysis is based on real conditions then the results might come out worse.

If we look at the problems a common person faces due to corruption, law and order situation, and incompetent governance then the seriousness of the issues become a bit clear. Reality on the ground is that not only corruption is destroying our so-called national institutions and costing us billions but it has buried a common man straight under.

From cartelization to paying forceful unnecessary taxes, there is no justification of calling the present situation even near satisfactory. High inflation and energy crises are a result of government sponsored cartelization and corrupt privatization without merit. If things are done in transparent way and Rule of Law is established then we can expect some improvement in turbulent economy, if it has not crashed yet.We are already moving around 4 percent GDP growth which is very low as compared to countries like India and China in the same region.

If a common man saves enough money through his hard work, even in this time of government sponsored inflation, and decides to build his house then a new series of hurdles and problems start for him. First one is to go through the government doors for transferring the plots, passing the site plan and other unnecessary approvals which not only cost huge amount of fees but a big amount is taken from his through forceful corruption otherwise his file disappears somewhere in hell.

Once he goes through the process then the process of construction comes, if high prices of construction material due to unjustified sales taxes is not enough then extortion money will surely take a lot juice out of him. All the major government parties and their allied mafias are involved in this game. In case of Karachi, areas are distributed and in each area people are bound to pay this money if they want to make their houses or they want to do business. If someone denies then Shersha Kabari Market incident is not that old to remind us what can happen.

Recent target killing also has some touch of this mafia war for taking more and more area under control. Many times where demarkation of areas is not clear people have to pay extortion to multiple parties. The situation has gone worse after floods, especially in Karachi, not only due to chanting demographics but also due to further slowdown in economy and high inflation.

Cost of doing and initiating business is also a major problem. Not only permits, licensing and quotas are a major problem but red-tapism, corruption, security issues and high electricity are things which in any country can break the backbone of business. Load shedding of 12 hours in a commercial hub like Karachi cannot send a positive message for any investor whether local or international.

The situation is not only resulting in the flight of capital but it has created unemployment issues as well which directly impacts the standard of living. We often demand overseas Pakistanis to bring their money in the country but if we honestly analyse the situation then the demand looks a bit unjust.

At the moment our country is facing worst kind of shameless plutocracy in the name of democracy with mafias and government cronies hammering the life out of our people.

 The responsibility also lies on the shoulders of people as they are the ones who chant slogans for these leaders and support either corrupt politicians or dictators.

The real issue is not just that how long this situation can go on but the real issue how long our country can sustain it. We need to come out of this situation otherwise time doesn’t wait for anyone and if worse becomes worst and worst becomes unchangeable then collapse of everything becomes inevitable. So the choice is ours and we are already getting late for the right choices to be made. Instead of cursing institutions for bringing out reports reflecting our dismal performance we need to focus on improving the situation and coming out of this mess.

- Also on : http://blogs.aaj.tv/2010/11/shameless-plutocracy-and-turbulent-economy/
by Faisal

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