Elite domination

LAHORE: Despite various reforms, Pakistan continues to exhibit traits of an elitist economy, marked by concentrated economic power, inequitable resource allocation, taxation loopholes and industrial cartelisation.

Landowners, industrialists and political elites dominate key economic sectors, shaping fiscal policies to their advantage. A narrow tax base with minimal contributions from the wealthiest segments reflects the elite’s influence. Development resources disproportionately target urban and elite-centric projects, leaving rural and underserved regions neglected. Powerful cartels in industries such as sugar, cement, and pharmaceuticals stifle market competition.

Efforts to broaden the economic base, such as microfinance initiatives and SME promotion, have had limited impact due to entrenched structural issues and political resistance.An elitist economy refers to a system where policies and benefits disproportionately favour a small, privileged group at the expense of the broader population. Characteristics of such a system include wealth concentration, limited social mobility and restricted access to resources like land, credit and education. Elites benefit from policies designed to protect their interests through subsidies, favourable taxation and monopolies. To transition towards an inclusive economy, Pakistan must address several critical areas:

Land reforms: redistribute land to ensure equitable agricultural resource access. Progressive taxation: tax the wealthiest segments effectively and direct revenues toward public welfare projects. Equitable credit access: promote financial inclusion for small businesses, farmers and marginalised groups.

Social investments: increase funding for education, healthcare and skill development to empower underprivileged communities. Institutional strengthening: combat corruption and ensure transparency for fair public resource distribution. SME support: enhance entrepreneurial opportunities by reducing market-entry barriers.

Dismantling Pakistan’s elitist culture faces significant obstacles. Many elites are entrenched in political structures and resist reforms that threaten their dominance. Weak institutional capacity hampers the implementation and enforcement of inclusive policies. Cultural norms and patronage systems perpetuate inequality, while a large informal economy enables elites to evade taxation and regulation.Achieving inclusivity requires not just policy changes but also a societal shift, strong political will and sustained grassroots movements.India: some states achieved success with land reforms and reservations for marginalised communities, while rural development programmes like MGNREGA provided support to the poorest. However, significant inequality remains, particularly in education and healthcare access.

Bangladesh: microfinance initiatives, such as the Grameen Bank, empowered rural women and reduced poverty. Export-led growth in the garment sector created jobs for low-income workers, and investments in health and education improved human development indicators.

Sri Lanka: universal free education and healthcare since independence have ensured broader access to essential services. Land redistribution programmes in the mid-20th century reduced rural poverty. However, regional disparities and post-conflict recovery challenges continue to cause income inequality.

Among these nations, Sri Lanka appears the least elitist due to its commitment to universal services, which have narrowed disparities. Bangladesh follows closely, driven by grassroots development initiatives and inclusivity in the garment industry. India lags behind, grappling with regional inequalities and a vast population despite notable progress in certain areas.