he elite description refers to individuals or groups having the ability to manipulate a state’s distributive system, thereby gaining private advantage. In Pakistan, the state distributes land and money among the dispossessed and the landless. However, this can also serve as a cover-up for diversion of resources to the elite.

The Capital Development Authority in Islamabad and some other land development authorities, have long been accused of allocating prime property to senior civil and military bureaucrats, politicians and elite journalists. A three-star general allegedly took prime property from a cricket stadium in Karachi to distribute among fellow officers.

To understand this debate, it is important to consider the following points. First, every society has an elite; there is no elite-less society. In a highly class-oriented society, the elite can appear particularly sinister.

Second, the concept of the elite is not fixed; it keeps evolving. Historically, in Pakistan the elite has referred to the landed class due to the dominance of the agrarian economy. However, new elite groups have emerged, replacing or merging with the older ones, thanks to state patronage and changing circumstances.

Third, the elite is not just a group. It is also a process that drives societal change.

In Pakistan, the state is all powerful but easily manipulated. The formation of the elite is directly linked therefore to the group’s ability to manipulate the state and its resources. Consequently, what was considered the middle or lower middle class in the past can become a part of the elite today. Many individuals, who came from modest backgrounds have become powerful millionaires and members of the elite. Some religious leaders from various denominations also hold positions of power within the elite.

Now we turn our gaze to the elite-led economy model peculiar to Pakistan. The concept refers to an economic system that caters primarily to the needs and interests of a privileged few, while neglecting most of the population. The model has been subject to scrutiny and analysis by prominent economists, including Hamza Alvi and Ishrat Hussain. Both have shed light on the dynamics and consequences of this model as well as suggested some remedies.

Elite concentration of wealth and power

Hamza Alvi highlights the significant concentration of wealth and power in the hands of a small elite in Pakistan. This concentration is often attributed to factors like land ownership patterns, the dominance of powerful families and the influence of the military establishment. The elite’s control over economic resources, political institutions and decision-making processes exacerbates inequality and hinders social mobility.

Neglect of human development

Ishrat Hussain, a former governor of the State Bank of Pakistan, has emphasised the detrimental impact of the elite economy model on human development indicators. He argues that the model has prioritised large-scale infrastructure projects, such as highways and energy plants, while neglecting investments in education, healthcare and social welfare. As a result, Pakistan has struggled to achieve inclusive growth, leaving a large portion of the population marginalised and deprived of basic services.

Rent seeking and corruption

Both Alvi and Hussain draw attention to the prevalence of rent-seeking behaviour and corruption in the elite economy model. The collusion between the political and business elites often leads to favourable policies, monopolistic practices and the exploitation of public resources for private gain. Such practices create barriers to entry for new businesses, stifle competition and impede economic progress.

Lack of investment in productive sectors

A critical aspect highlighted by Alvi and Hussain is the limited investment in productive sectors of the economy. The elite’s focus on rent-seeking activities, speculative investments and real estate development diverts resources away from sectors that could foster job creation and sustainable economic growth. This contributes to a lack of industrial diversification, overreliance on imports and widening of current account deficit.

Economist Akmal Hussain holds that the Pakistani elite represent a complex web of power and influence, deeply entrenched in the country’s socio-political fabric. He argues that the Pakistani elite comprises several segments, each with its own vested interests and sources of power.

Akmal Hussain emphasises the existence of economic, political and military elites, all with significant roles in shaping the dynamics of power in the country. He suggests that the economic elite, often associated with industrialists, landlords and business tycoons, wield substantial control over resources, investment and policymaking. Their influence extends beyond economic realms, affecting political decision-making and societal structures.

Akmal Hussain also highlights the role of political elite – influential politicians, bureaucrats and technocrats. This group holds sway over the levers of governance, manipulating state institutions and policies to serve its interests. Hussain underscores the need for political reforms to ensure a more equitable distribution of power and prevent the consolidation of authority in the hands of a few.

Akmal Hussain also points out the role of the military elite. While recognising the importance of a strong defence establishment, Hussain stresses the need for civilian oversight.

His analysis highlights the connectedness of the various elite groups and their symbiotic relationship. He argues that alliances and collaborations between economic, political and military elites perpetuate the existing power structures, often at the expense of the broader population. He argues for a more inclusive and participatory system that ensures the accountability of the elite and empowers the marginalised sections of society.

The following are some of the potential remedies to address the issues:

Promoting inclusive growth: Prioritise policies and investments that foster inclusive growth and address the needs of the majority. This includes allocating resources for education, healthcare, social welfare programmes.

Strengthening accountability and transparency: Implement effective measures to combat rent-seeking, corruption and undue influence of the elites. This can be achieved through comprehensive anti-corruption strategies, robust legal frameworks and independent oversight institutions.

Political reforms: Introduce reforms that promote a more level playing field and ensure a more equitable distribution of power. This may involve measures such as campaign finance regulations, electoral reforms and reducing the influence of money and vested interests in the political system.

Encouraging diversification: Promote investment in productive sectors of the economy to foster job creation, reduce reliance on imports and stimulate sustainable economic growth. This can be achieved by providing incentives and support for small and medium-sized enterprises, innovation and entrepreneurship, while discouraging speculative investments and excessive focus on real estate development.

Civil-military balance: Strive for a healthy balance between civilian and military institutions, ensuring civilian oversight and strengthening democratic institutions. This can be achieved through constitutional reforms, transparent defence budgeting and the promotion of a culture of dialogue and consensus-building between the military and civilian leadership.

Empowering the marginalised: Create avenues for the participation and representation of marginalised sections of society in decision-making processes. This includes promoting inclusivity, diversity and equal opportunities in all spheres of society, giving voice to underrepresented groups and addressing systemic inequalities.

Public Discourse and Awareness: Foster public awareness and engagement in discussions around elite power dynamics and their impact on society. This can be achieved through an open and free media, access to information and platforms for dialogue that encourage informed citizen participation.

Implementing these remedies requires a comprehensive approach involving the political will, institutional reforms and active participation from various stakeholders, including the government, civil society and the private sector.

The writer is Professor in the faculty of Liberal Arts at the Beaconhouse National University, Lahore.  He can be reached at tahir.kamran@bnu.edu.pk