Governance structure becomes dysfunctional: Dr Ishrat

The Chairman of National Commission for Government Reforms in Pakistan, Dr Ishrat Husain, in his discourse at a seminar on ‘Governance and Development’, hosted here by the Aga Khan University Institute for Study of Muslim Civilisations (AKU-ISMC), noted that the overall governance structure in his country. Through which social and economic policies are inter-linked, has become corroded and dysfunctional and the benefits of rapid growth are not transmitted to a significant segment of the population. “Starting with the reasonably sound institutions of executive, legislature and judiciary branches of the state, there has been a gradual deterioration in the capacity of these institutions to deliver public goods and services equitably,” he said in his keynote address. Ishrat, who has been tasked to suggest changes on the size of the Government, also observed that leakages, waste and corruption induced by the patronage and privileges of the ruling elite have created a large wedge in the distribution of gains resulting in differentiated impact of growth on different classes, regions and segments of society. Pakistan High Commissioner in the United Kingdom, Dr Maleeha Lodhi, and Deputy High Commissioner Abdul Basit were also present on the occasion. He said that as most of the institutions are controlled by the ruling elite, and the basic public services are rationed by access, the poor are at a comparative disadvantage in relation to well-to-do-classes.
“The outcome is, therefore, obvious in the form of poverty, inequalities and poor social indicators despite high economic growth,” he said. The seminar is part of one of the several academic events being organised in commemoration of the Golden Jubilee of the Aga Khan, Chancellor of the University.
Pakistan, the former Governor of the State Bank said, is one of the few countries that have recorded an impressive growth rate of over 5 percent per annum between 1947 and 2007. Only a few developing countries, mainly in Asia, have been able to achieve such high rates of growth over an extended period of time, he added.
He stated that despite this impressive growth, almost one quarter of the population still lives below the poverty line, and social indicators are among the worse in the developing world, with the country being ranked 134th in the Human Development Index ratings, among 177 countries. “Income inequalities, regional disparities and gender differentials have worsened over time,” he added.
About the governance reform agenda, Dr Ishrat said that it is designed at restructuring government and revitalising institutions to deliver the core functions of the state which include provision of basic services such as education, health, water, sanitation and security to common citizens in an effective and efficient manner and to promote inclusive markets through which all citizens have equal opportunities to participate in the economy.
He said that the governance agenda cannot be implemented without political backing. “The balancing of diverse interests of the various stakeholders involves many politically tough choices which cannot be made by technocrats.”
Professor Mushtaq Khan, who teaches at the School of Oriental and African Studies (SOAS), focussed on the relationship between governance, including democracy, and accountability and development as a two-way relationship.
He said the historical experience and lessons of East Asia do not fit well with the conventional wisdom on good governance as a necessary precondition for development.
“This does not mean that democracy should be abandoned as an important aspiration for developing countries, such as Pakistan, but rather that many other complementary policies are required which many downplay the importance and expectations we have of democratisation as a policy priority.”
He pointed out the limitations of a simplistic transposition of the lessons of China, or other East Asian countries, for Pakistan where the political environment is entirely different. The Director of the AKU-ISMC, Abdou Filali Ansary, delivered his closing remarks on the daylong seminar.