Politics / 11.01.2016

By Anjum Altaf Pakistan today is very different to what it was fifty years ago. An aspect that has changed significantly – literally turned on its head – is the nature of political and social activism, i.e., the very dynamic that leads to change in society. I describe this transformation based on my interactions with the young – as a student at the beginning of the period and as an instructor of students at its end. Needless to say, the majority in any society is content to swim with the tide. Members of this majority may hold opinions about desirable changes but they are not involved in the process of bringing them about. On the other hand, there is always a small minority of individuals who become actively engaged in efforts to change society. Such activists mobilize varying numbers of the majority for or against in different...

Development / 05.02.2015

By Anjum Altaf It may seem counter-intuitive but if we wish to spur economic growth in Pakistan both government and citizens would have to step in to help labour. This is the surprising conclusion of a study of the local economy carried out by students from the Lahore University of Management Sciences (LUMS) under my supervision. Initial discussions with representatives of several small cities around Lahore identified violations of labor laws as having a significant impact on both the welfare and productivity of industrial workers. As a result, the interactions between labor laws and economic growth were studied in Sheikhupura, a half-million sized industrial city about 30 miles from Lahore. Observations of small scale industry, employing the majority of the industrial labor force, revealed desperate, survival level, working conditions at compensations below the minimum wage. Workers had little or no protection from various forms of exploitation and exposure...

Development / 17.07.2013

By Anjum Altaf Peshawar is by no means the busiest airport in the world but compared to Hyderabad it is a monster. I mentioned in an earlier post (Anchoring Khyber-Pakhtunkhwa Province) that the number of flights per week into Peshawar airport was 79 of which 56 were from the Middle East. I used the information to venture that the KP economy was anchored in the Middle East and that this was not due to the flow of investment into KP but the export of manpower from it. A reader commented that what I had mentioned for Peshawar was true of every big city in Pakistan. This may well be established and, if so, it would suggest that Pakistan as a whole is a manpower exporting economy – statistics indicate that almost the only positive number in recent years has been remittances from workers overseas. Still, it is my guess...

Development / 01.07.2013

By Anjum Altaf I learnt there is just one flight per week from Lahore to Peshawar and it returns three days later. This prompted an investigation of how the city is connected to the outside. Here is some quick information on the flights per week to Peshawar and their origins: None from Central Asia; 1 from East Asia; 1 from Afghanistan; 1 from the Punjab; 2 from Balochistan; 4 from within KPK; 4 from Islamabad; 10 from Sindh; and 56 from the Middle East. While KPK is part of Pakistan, it seems reasonable to infer that its economic engine is in the Middle East. One might post oneself outside Peshawar airport to determine the nature of the economic engine. I doubt one would see investors armed with briefcases and laptops. Much more likely that the vast majority would comprise migrant workers returning home for a break with the...

Cities/Urban / 07.05.2013

By Anjum Altaf We ought to care about urbanization because it will shape our lives, for better or for worse, and often in surprising ways. An obvious starter is that all developed countries are predominantly urban. Of course one can ask whether it was development that led to urbanization or the other way around. The historical evidence is clear: cities produced jobs that pulled less productive labor from rural areas. That, in a nutshell, was the story of the Industrial Revolution. The most unremarked replication in recent times has been in South Korea, going from 5 percent urban in 1925 to 80 percent by 2000. At the same time the country transitioned from an aid recipient to a member of the industrialized world, a donor in its own right.
Development / 06.08.2011

By Dipankar Gupta If bribe giving is legalized will that ground the bribe taker for good? This suggestion was made recently by Kaushik Basu, the Prime Minister’s Economic Advisor. Sadly, such low cost, budget one-liners invariably fail to fly. Eager to clean up the corporate sector, Narayana Murthy, of Infosys, initially endorsed this suggestion, but later found faults with it. The bribe giver could rat on the bribe taker, but it would not be worth the halo. Word would go around and that person would be singled out forever in the real world of give and take. Under current conditions, but for a handful of companies in IT, telecom and financial services, it is hard for business to play clean and be above board.