Following the Quaid

Over the last seven decades, Pakistan has struggled to develop a comprehensive economic model to solve long-term structural and economic issues. Successive governments have created various vision documents, planning tools, and growth strategies to transform the country into a developed nation. The current government is working to create a new growth strategy to solve economic and social issues.

Do we need a new vision document or growth strategy to resolve massive unemployment, structural poverty, and deteriorating economic growth? No. Why? Because our founding father gave us an economic vision to create a contented people. The Quaid’s economic vision started with the goal of "creating a happy and contented people." The Quaid emphasized that the economic transformation required "education planning, economic planning, and social planning."

The Quaid’s blueprint for economic reconstruction and transformation is based on five pillars: first, economic reconstruction depends on human capital development. He emphasized developing human capital in diverse areas, including agriculture, commerce, trade, and science and technology. The state should provide the best possible training for technicians, scientists, businessmen, doctors and civil servants to develop human resources for economic growth.

Second, private sector-led labor-intensive industrialization is the hallmark of transformation: The Quaid emphasized that all industrial enterprises should be open to private enterprise. The proposed industrial and commercial policy's main points include: i) to associate individual initiative and private enterprise at every stage of industrialization; and ii) to build the banking and financial mechanism, bankers should repair and restore this vital sector.

Third, the role of the public sector should be as a facilitator and enabler. The Quaid wanted the public sector to play a more active role in providing a network of social and public utility services and relief and amenities.

Fourth, free trade and price stability are the keys to enhance welfare: The monetary policy should encourage maximum production and free trade flow. The state should stabilize prices at a level that would be fair to the producer and consumer. Lastly, linkages between academia and industry are essential for economic and social uplift.

The success of the 70-year-old economic model can be judged by looking at economic transfers in the East Asian countries (East Asian Tigers). These countries invested in human capital and allowed the private sector to develop a technologically driven industrial base. The economic growth of East Asian Tigers was built on investment in schooling and training.

These countries streamline the role of government as a facilitator and enabler. The governments in East Asia used targeted interventions to facilitate private investment and promote competitiveness for economic development. Lastly, these countries ensure well-established linkages between academia (think tanks) and industry to innovate and enhance competitiveness.

In a nutshell, the Quaid stood for structural change in the economy. A balanced and mixed economy with a pragmatic blend of the agricultural and industrial sectors, resulting in a more equitable distribution of wealth, is essential for sustainable development. The Quaid’s economic model is based on full employment opportunities for one and all, for contented labor, for a fair deal to the farmer, and human resource development at all levels. The proposed economic model ensures economic equity and social justice.

As a way forward, Pakistan needs an action-oriented growth strategy to transform these principles into actionable policy items. No need to invest time and energy to create a new vision for Pakistan. It's time to implement the Quaid’s Economic Vision.

The current strategies for poverty alleviation through social protection, economic stabilization driven by foreign aid, and consumption-oriented growth are not sustainable. Pakistan needs to implement the Quaid’s economic model to alleviate poverty, ensure full employment, and achieve sustained growth. This model will help achieve the goal of ‘creating a happy and contented people’.

The writer is associate professor at the Pakistan Institute of Development Economics (PIDE).

Email: dr.iqbaln@gmail.com