What we need to grow

IN recent columns, I have written about the control of elites over Pakistan’s polity, the ineffectiveness of our governments and our pursuing the wrong model of import substitution, which results in boom-and-bust cycles. Since our elite already control most of our resources, they aren’t interested in economic growth or increasing the size of the pie. Their preoccupation is with maintaining their lion’s share of the pie. Our governments’ ineffectiveness serves our elite well as it stops any social mobility, and preserves the status quo. Finally, the import substitution policy ensures that monopoly profits flow to the already well-off. The only way to escape this poverty trap is to come up with a new ‘elite bargain’ that sues for growth and development. How can such a compact for prosperity be achieved is an important question that I leave aside for now. Today, I want to briefly describe what I consider to be six essential pillars for a development compact.