The power of crazy dreams

Imagine a world where reusable rockets connect the remotest corners of the planet, machines think faster than humans, and audacious companies don’t just sell products but transform entire ways of life. Now stop imagining – this is the world we live in, shaped by risk-taking, bold ideas, and an innovation-driven culture.

The extraordinary rise in US household wealth – $17 trillion in the last year alone – has drawn criticism for resting on what some call a fragile foundation. Some have argued that this growth is fueled by speculative bubbles, AI hype, and unsustainable borrowing. While these concerns aren’t baseless, they fail to recognise the deeper truth: America’s economic and technological prowess is rooted in its willingness to embrace risk, foster innovation, and dream big.

This isn’t just a lesson for critics in the US – it’s a lesson for countries like Pakistan, which has suffered from decades of stagnation. Unlike the US, Pakistan has shied away from bold decision-making, risk-taking, and innovation, and the consequences are evident: an economy in crisis, perennial dependence on IMF bailouts, social progress stalling, and missed opportunities in a rapidly changing global landscape.

In America, the culture of innovation is underpinned by the belief that failure is not the end but a step forward. Over the last 30 years, this ethos has made the US a global leader in technology, creating companies that have redefined industries.

Google has democratised access to information and fundamentally transformed how we search, learn, and connect. Tesla has revolutionised transportation and energy, driving the global transition to sustainable mobility. OpenAI is pioneering artificial intelligence, unlocking transformative possibilities in healthcare, education, and automation. Microsoft revolutionised the workplace and personal computing, Apple redefined consumer technology with the iPhone, Amazon revolutionised e-commerce and cloud computing, and Nvidia’s GPUs have powered advancements in AI, gaming, and scientific computing. It is hardly a surprise to see that the market cap of these companies runs into trillions of dollars.

These groundbreaking successes were made possible by a supportive ecosystem created by decades of government policies and regulatory frameworks. The US has consistently prioritised private-sector entrepreneurship and wealth creation, ensuring that venture capital, private equity, and institutional investors are available to fund bold ideas.

Visionaries like Elon Musk exemplify this boldness and have shown that even ‘crazy’ ideas – like colonising Mars – can lead to breakthroughs that benefit humanity in unexpected ways. SpaceX, for example, has drastically reduced the cost of space exploration, while Starlink is bringing internet connectivity to underserved regions. Such entrepreneurs thrive in this ecosystem, proving that even the craziest ideas – like colonising Mars – get funding for breakthroughs that redefine industries and improve lives.

This spirit of audacity has not only driven US economic growth but has created technologies and platforms that have reshaped global societies. Critics who focus solely on metrics like debt or wealth-to-income ratios miss the larger picture: the US’s success lies in its dynamic, ever-evolving ability to innovate and take risks.

Pakistan, on the other hand, has remained stuck in a cycle of mediocrity and stagnation. Over the past 30 years, the country has failed to foster an environment where innovation, entrepreneurship, and risk-taking can thrive. Bureaucratic inefficiencies, lack of investment in education and technology, and a deeply entrenched fear of failure have stifled progress.

The expansion of government and the dominance of the public sector have further exacerbated the issue. State-owned enterprises operate inefficiently, crowding out private competition and draining national resources. While funds are channeled into covering public sector losses, the private sector – especially innovative, tech-enabled startups – remains starved of capital.

Pakistan has also failed to develop a policy and regulatory framework that promotes wealth creation and builds a competitive private sector. The absence of a robust venture capital and private equity ecosystem, combined with underdeveloped capital markets and a banking sector focused on financing public sector debt, has left little room for great idea-based enterprises to flourish.

High taxation rates further deter business growth and even counteract the objective of tax collection. Instead of fostering an environment conducive to enterprise, excessive taxation stifles investment and innovation.

While the world embraced digitisation, Pakistan lagged. India, for example, has built a robust technology ecosystem, becoming a global hub for software development, startups, and digital innovation. Companies like Infosys and TCS have achieved global prominence, while Indian startups have attracted billions in investments. India, now the fifth-largest economy, has lifted millions out of poverty and positioned itself as a global tech leader.

Meanwhile, Pakistan remains overly dependent on agricultural commodities and traditional industries like textiles, cement, sugar, and fertilizer, failing to diversify its economy or leverage its young, tech-savvy population.

The consequences of these policy failures are clear: a stagnating and unproductive economy that is not able to compete in the new world, a growing brain drain, and a country increasingly being left behind in the global race for innovation and progress.

To escape this cycle of stagnation, Pakistan must embrace the lessons of innovation-driven economies like the US, and India, which had lower GDP per capita than Pakistan until 1990:

Adopt pro-innovation policies: Shift the focus from public sector expansion to private sector empowerment. Streamline regulations, cut tax rates significantly, provide tax incentives for startups, and establish intellectual property protections to encourage innovation.

Develop venture capital ecosystems: Foster local and global investment in young entrepreneurs through government-supported venture capital and private equity funds. Matching funds or co-investment programmes can help bridge the gap for early-stage startups.

Invest in technology and education: Prioritise STEM education and build digital infrastructure to enable a tech-driven economy. Encourage partnerships between academia, industry, and government to create a pipeline of skilled workers and innovators.

Foster risk-taking: Normalise failure as part of the entrepreneurial journey. Create innovation hubs, incubators, and accelerators that encourage bold ideas and provide mentorship and funding.

Diversify the economy: Move beyond traditional industries and focus on high-growth sectors like technology, renewable energy, and biotechnology.

We need a bold vision for Pakistan in 2025, aiming to create a thriving ecosystem for innovation and entrepreneurship. This vision includes: establishing a Rs100 billion national innovation fund to support tech startups and scalable businesses; reducing corporate tax rates to incentivise business growth while simplifying the tax system to boost compliance; developing innovation districts in major cities, modeled on Silicon Valley and India’s Bangalore, to foster collaboration between academia, industry, and entrepreneurs; strengthening capital markets to attract local and foreign investment, ensuring access to funding for promising enterprises; and launching a national digital transformation strategy that prioritises e-governance, smart infrastructure, and digital skills training for youth.

Imagine a Pakistan where startups flourish, universities produce world-class engineers and scientists, and bold ideas are celebrated, not stifled. Imagine a Pakistan that leverages its young population and strategic location to become a global hub for technology, trade, and innovation.

The critics of America’s wealth surge argue that it’s built on a fragile foundation, but they fail to see the transformative power of risk and innovation. For countries like Pakistan, the lesson is clear: the future belongs to those who dare to dream big and take bold steps.

Pakistan has the potential to follow in the footsteps of nations like the US and India. By embracing innovation, fostering private entrepreneurship, and creating an ecosystem where capital meets ambition, Pakistan can unlock its immense potential. The journey won’t be easy, but the rewards – economic prosperity, social progress, and a place on the global stage – are worth the effort. After all, as the US has shown, the greatest achievements often come from the craziest ideas.

The writer is a former managing partner of a leading professional services firm and has done extensive work on governance in the public and private sectors. He tweets/posts @Asad_Ashah