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It is an old saying that the soil grows castes and the machine makes classes. So whichever way one considers the social system is at odds with the concepts of equity and equality. Pakistan has its own brand of meritocracy. Examine the last scene and you will find that the tyrannical powers were doing two things - appointing uniformed people to top positions (the loyalty factor) and the graft factor wherein Shaukat Aziz and company bought off any one that had a nuisance value.
Plots of land were handed out to favourites at preferred prices. This was their way of handling delicate situations. Power was proportioned thus in packets of benefits to one's dear and near ones and agriculture land was allotted and given to the rich and powerful irrespective of whether they were aware of agricultural requirements or nuances. An asset was an asset and if it could be taken cheaply why not. The feudal ills that Thomas Jefferson stood against in 1776 were not even considered in the modern nation.
The political system brings its own kind of merit-oriented policies. Thus one minister (not to be named) perked that the first right was to his relatives, (and there was merit even amongst the relatives - sons and sons-in-law were preferred), the second to his caste and the third to his area people. Merit was different when it came to the poor. They were not even considered. The jobs that were handed out thus had economic consequences that went far beyond the borders of providing jobs. The economic impact of inefficiency was to last till the superannuation and this was to be geometrically multiplied.
Today the consequences can be seen in institutions. Take agriculture for example and the Cotton Research Institute is now attributed to one of the former ministers' name, in the Musharraf regime. The subsequent act was no better. Institutes and posts were named informally after the minister that had created this mess so that anyone who went there was able to understand why the level of institution was as it was. Work was not in consideration. The Cotton Research Institute had on its pay-rolls something like 575 personnel and the chief was the one who did not have the qualification for that job. Of these 575 something like, 276 were on the rolls at Karachi. Blow me with a feather for how can cotton be grown in Karachi. The ethnicity was obvious. The jobs were for the senile and the sinecure were in position. Knowledge or work ethics were never in consideration. Time and again the organisation failure was and is attributed to mute policies of this kind. So Pakistan was to contend with deficiencies of the system as well as with the deficiencies of the thinking process of individuals in power.
With this as an example, come to the economic consequences for the textile industry and how the game for comparative advantage and competitive structure was played. The textile industry is vital for the country in asmuchas textiles make up the maximum amount of forex earnings. Without this Pakistan would be hard put to meet its requirements for the hard currency. The economic system would collapse. So what is to be done? The comparative advantage is due to the natural resource base and this natural resource base would work if the productivity of cotton was such that the raw material was cheaper to the textile entrepreneur. This can only be ensured if the hybrid cotton was in position. This is not possible as the fair weather friends of Pakistan are not interested that we should be in an advantageous position. Their corporate concern was going to provide cotton seed that was going to produce cotton that would take 11 months. The cotton hybrid developed at NARC and which has since been vandalised was to produce a cotton harvest in 100 to 110 days and had better quality parameters.
All of a sudden the fair weather friends started sending emissaries to check and check they did. They had a problem and openly admitted by them as they had closed their textile units because these could not compete with the Third World exports and now their farmers were under threat. The inevitable happened. The sector was badly mauled and in a most inappropriate way. The comparative advantage from the local hybrids was to give very high yield and was to place the textile sector in a position where the comparative advantage would be supreme. Come to the entrepreneur and the competitive edge that is a function of management and practices that are best for the sector. That did not happen in the past as the sector had been cotton wool-led and looked after for obvious reasons. The world market is different now and the entrepreneur has to have different skills.
This is going to be an Achilles heel of the system as the entrepreneurs have not developed out of the market system but out of a connective system. There have been a number of interventions for the textile sector but with incompetent teachers one cannot have competence coming in. What of the other institutions of the government that could come in and play a part. That aspect has been badly affected. The competent civil service has been replaced by sinecure and senile connected personnel.
When an organisation does not deliver it is time to seek a diagnostic assessment. The diagnosis of the government institutions is that these are no longer delivering. The world is up in flames and the major reasons are that the institutions have over a time become lopsided. The old rules no longer apply. The new rules have not been formulated.
The rich have grown rich at the expense of the poor. The midwives that were required for the social services and equity are no longer in position. The social architect has been lost in the mire of modernisation and the real hard effort that was required by people has given way to cosmetic work. Start looking at the institutions and see how these have delivered? The 18th Amendment is in order if it removes all the extra fat that has accumulated in the federal government. The HEC and the other organisations are all trying to save themselves and that is wrong for these people have become mafia in the system and a self-perpetuating one. If the foundations are not strong enough how can there be an infrastructure that is as heavy as the HEC survive. First the government has to get its act together and start building on its primary education. Will you send your children to a rural school? Scratch your backs for these are meant for children of a lesser god.
What is the future in store for us? The more one makes a collective effort for the many the better. The shortages of quality teachers are obvious. Third rate teachers cannot produce first rate students and therein lies the crux of the matter. The cost to the economy is so obvious and the amount estimated would be horrendous. The weaknesses be addressed. There are many ways to skin a cat and so try and try again.

Copyright Business Recorder, 2011

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