Pakistan’s Development and Asian Experience (The Iqbal Memorial Lecture)

Gustav F. Papanek

Abstract


To summarise the conclusions of this paper: 1. Pakistan not
only has to deal with a cash flow problem, it also has to make the
difficult structural adjustment of living within its means, after nearly
50 years of failing to do so. 2. Despite large resource inflows and
periods of good economic management Pakistan’s per capita growth has
been less than half of that in rapidly growing Asian economies. The
country has therefore failed to reduce poverty as much as it could have.
3. This performance was the result of inadequate export growth, savings
and attractiveness to foreign private investment. Two periods of good
economic management show the impressive potential of the economy. 4. The
heart of an appropriate economic strategy is to make non-traditional
exports more profitable. 5. It is appropriate to emphasise the need for
further decontrol and greater reliance on the market. But government has
an important role in providing infant industry incentives for exports
and compensating for externalities. 6. To maintain political support for
reforms government must allocate fairly the pain and gains, and reduce
corruption.

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DOI: https://doi.org/10.30541/v35i4Ipp.343-382

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