The economics of information

07 Mar, 2015

Market economies are based on information that is passed on to the consumer. In fact the stronger that nexus is the more the market economies have proved resilient and served the purpose of the consumer as well as the investor. Most of the decisions that are then based are on the information that is provided by the market. But there are information and information and they all mesh into one aspect and that has to do with the strengthening of democratic institutions. In third world countries there is separate ministry of information or rather a ministry of disinformation. The word that these ministers carry to the public is one of justification of actions and policies of the government. There is seldom any rationality in these statements. Since loyalty is not to the state and neither to the institutions of the state it all boils down to the person of the power structure. There is very little awareness of the abstraction that is due to information that can work wonders for a society and a country. Truthfulness works wonders for any state-capitalist or communist or any country that is in transition from one to the other. But given that the analysts in any country are powerful persons [anchors in our part of the world] and can twist things the majority of the governments view any transgression as part of disloyalty.
Pakistan power block does not have the ability to stand critics for governments are fragile. These days the government capitalises on the fact that the end of government is the end of democracy. In other words that government is indispensable. The fear of another form of government may not cut ice with the public but it is well received by other political parties who have forged an agreement not to destruct another party that is in power. The world culture of democracy in action is not important. Parties out of power realise that one day they will be in power so they accept the current culture of no holds and no culture of democracy. The meaning of democracy is different in different countries. Given human ingenuity one can justify any aspect of life.
When public policy is developed in the third world there are always question marks for there are always some unknowns that emerge. The conceptualisation of public policy is limited to benefits to a few. Dicey always stated that one's rights are as far as one's nose but that is never the case for the power structure in less developed countries has unlimited rights. The poorest segment has no rights and there is no one to assert their rights. The lower judicial system is unable to stop the rot that is caused by the unwarranted use of power by the politicians. Normally any one that seeks any kind of redress through better information is struck down as an enemy. There are known knowns and there are unknown knowns. One has only to see the use of electronic media for the assertion of wrongs as rights. There, despite the footage by the electronic media the abuse of honesty is carried out. The legal system is unable to take notice of the criminal wrong that has been done. The developed world has the institutions where action to correct a wrong can be taken but that is not also in developing country.
The economic impact of such roughed up information is that the poor credibility of the developing country is further eroded. That leads to questions by would-be investors for they want to see their investment as secure. The insecurity that is unleashed on the economy means that there are fewer jobs and even less control on inflation. Take the case of the 'bhatta khor' in Karachi where the thuggery has taken on critical dimensions. When such a situation emerged in British India they developed a Commissioner of thuggery whose power was beyond the territorial jurisdiction of the deputy and the commissioners. In other words there was a diarchy that was consistent with the social requirements of the time. Policy initiatives of this kind are only possible if the elements that are in power understand the concept of equity and equitable use of policy instruments? The use of fragmentary influence is also used to their advantage. The media is in the habit of taking sides or even unable to decipher the truth or the correct position.
The oft-quoted statement of the policymakers that what they are up to is to have inclusive development. The lies that are foisted on to the public as a result of these assertions has taken Pakistan to the brinks of disaster. The three macro economic figures almost daily quoted by scoundrels is that we have taken care of Inflation, deficit financing and unemployment. It is almost as if they have the magic wand with which to do what they are so strongly asserting. Others can point at secondary evidence at the lack of these things but that is not acceptable and the information are not only denied but vilified in the media. Governments are known to have cynics. But these days the cynics abound and everyone is one of a kind. Go through the talk shows and see how loyalty to personalities are played out.
When Pemra was being established as a regulatory body at the instigation of the WB I spoke out against it for my reason was another such body will only make matters worse because such institutions become the handmaiden of the government in power. We have seen that such a thing has happened with Pemra arresting and beating up cable operators and closing channels and throwing all kinds of threats to independent anchors; the attacks on media personnel is unabated. How can we call ourselves a democracy leave aside the adjectives like vibrant and honest? The recent elections to the senate are also a case in point and the confession of the parties that votes are purchased. Then why not set up a free market where votes can be traded. The west will also be satisfied in this. Free and unfair markets will prevail.
In developing countries markets are developed for the oddest of things rather than for economic commodities and this was a case in point. There is no point in hiding this fact and I think that the politicians are for the first time calling a spade a spade. Great credit to them. An analysis of the professions that constituted the National Assembly would indicate how the change in professions of the politicians have been affected and what can be the consequences of such actions. I looked at these for I had at one time the white paper on politicians. The shift from the rural sector and the lawyers to traders has had a non-salutary effect on the politicians. Traders are looking for gains of odd sorts. That has nothing to do with work ethics. The morality of the professions also counts.
Is it now true that to be in political sphere one has to play with words? The more the tongue wags the more successful the politician. The Senate elections are an indication of what is going on. So far as the other morality aspects are concerned we can go back to the world of MNA Dasti and see how the evenings are spent. The entire Dasti clan is in serious trouble for the vindictive nature of the politicians is also obvious. Big brothers are not disliked for no reason. They are brash and what have you. East Pakistan, Balochistan, N&S Waziristan are the current examples of their idiotic behaviour. Only politicians can change their domicile we ordinary Pakistanis stick with only one domicile. That is how the law works in Pakistan-for the rich and the powerful it is non-existent but for the poor it is in the person of every policeman. Karachi proves it all.
Remember the more crude one is in Pakistan the better off he is. Such is the way of life in this pak saf land of ours. Any variants to this? No!!

Read Comments