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www.cssexampoint.com Governing the Ungovernable Institutional Reforms for Democratic Governance www.cssexampoint.com Governing the Ungovernable Institutional Reforms for Democratic Governance ISHRAT HUSAIN OXFORD UNIVERSITY PRESS www.cssexampoint.com OXFORD UNIVERSITY PRESS Oxford University Press is a depanmem of the Universiry of Oxford. It furthers the University's objective of excellence in research, scholarship, and education by publishing worldwide. Oxford is a registered trade mark of Oxford University Press in the UK and in certain other countries Published in Pakistan by Ameena Saiyid, Oxford Universiry Press No.3B, Seemc 15, Korangi Industrial Area, PO Box 8214, Karachi-74900, Pakhran @ Oxford University Press 2018 The moral rights of the audlOf have been asserted First Edition published in 2018 All rights reserved. No parr of this publicarion may be reproduced, stored in a retrievaJ system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permirted by law, by licence, or under terms agreed with the appropriate reprographics righ(s organization. Enquiries concerning reproduction outside the scope of (he above should be sen( to [he Rights Departmem, Oxford University Press, at (he address above You must not circulate [his work in any other form and you must impose this same condition on anyacquirer [SBN 978-0-19-940781_1 Typese[ in Adobe Garamond Pro Printed on 80gsm Imported Offset Paper Printed by The Times Press Pvt. Ltd., Karachi www.cssexampoint.com Contents vii Acknowledgements xi Preface 1 1. Introduction 35 2. Historical Background 59 3. The Economy 96 4. The Poliry 124 5. The Sociery 157 6. Federal and Provincial Governments 182 7. Local Government 210 8. The Civil Services 236 9. The Judiciary 264 10. The Legislature 287 11. The Military 322 12. The Religious Edifice 358 13. The Private Sector 387 14. Administration ofJustice 410 15. The Role of Exrernal Actors 443 16. Restructuring Key Institutions 17. Lessons from the Experience of Other Countries 467 488 18. Conclusions 511 WOrks Cited 530 Bibliography 537 Index v www.cssexampoint.com Acknowledgements his book is a culmination of my residential renure as Public Policy Fellow with the Asia Program at the Woodrow Wilson Center at TWashington DC from June 2016 to March 2017. I wish to thank the President and officersof the Center and panicularly Michael Kugelman, the Deputy Director, for providing me this opportunity. The Trustees of the Fellowship Fund for Pakistan and Mr Arif Habib were generous in sponsoring the fellowship. Munawar Noorani and zaffar Khan deserve my gratitude for proposing and then making this happen. At the Center, I wish to acknowledge Janet Sykes the Librarian who opened up all the resources available at the Libraty of Congress, Bruce Griffith and Bill Kelly of the IT depanment, Arlyn Charles, Lindsay Collins, and Krishna Ariel for their support thtoughout my stay.The participanrs of the seminar at the Center where 1presented the work in progress gave me helpful comments. Two of my research assistants, Aleena Ali and Hamza Tariq, went beyond their notmal duties and responded promptly and diligently to all my requests. Aleena did a superb job in cartying out the literature survey and collating the material in a systematic way. Hamza volunteered to help in preparing the bibliography and verifjring the foot notes even after the completion of his assignment. I wish to thank my friend, Steve Radelet, an outstanding scholar in his own right who made the services of one of his graduate students at Georgetown. Rayah AI Farah at my disposal. She worked conscientiously and diligently on the assignment given to her. Two other interns, Divya Sabni and Jamie Liang came to my rescue during the period when I didn't have an RA. The title of this book was the brainchild of my friend, Shuja Nawaz, who not only had several discussions at different points of time bur also vii www.cssexampoint.com viii ACKNOWLEDGEMENTS provided some unpublished material and offered extensive comments on the Chaptet 'The Military'. Lieutenant General Asim Bajwa, Lt Gen. (retd) Khalid Nawaz and their staff, and Major General Chaudhry Sarfarz Ali made material available which added new insights on the defence forces and their businesses. Three persons, among many, need to be mentioned for their contributions. Shahid Yusuf was as usual fierce in his critique of the chapters he reviewed and commented upon. Michael Kugelman not only provided candid feedback himself but also shated the work of the participants of the Confetence held in January 20i 7. Robert Hathaway, a fotmer Director of the Asia Program, took a lot of time out to read the drafts and offered valuable comments. I am not in a position to acknowledge everyone who participated in the focus groups, filled out the structured questionnaire, and responded to my queries and follow up questions. It was indeed a pleasure that a large number of civil servants-active and retired, corporate CEOs, civil society activists, academics and scholars. and donor representatives shared their views and thoughts candidly and openly. The work produced hete would not have been possible without their inputs. Ali Sarfraz and Waqas uI Hasan deserve special mention for getting me the missing data on government employees and following up on the questionnaires. Nasim Beg also pushed some of the ClOD members and has helped me throughout the study. Ismail Qureshi deputed one of his staff at the National School of Public Policy to make reports of the training syndicates available to me. Sakib Sherani was kind enough to shate his own wotk in progress on Institutions of Reforms with me. Naseet Rana of the World Bank, with whom I had collaborated earlier, was generous by furnishing very exhaustive notes and substantive comments at the inception stage. To ensure consistency of data, I relied upon the State Bank of Pakistan (SBP), and Farooq Arby and his colleagues were extremely generous in preparing the time series on a large number of variables. I wish to thank them for their outstanding work My intellectual debt to three of my former bosses who are giants in the profession of economics-Stanley Fischer, Larry Summers and Joe Stiglitz-from whom I learnt a lot, would always overwhelm me but my interest in institutions and economic growth was sparked by Dani Rodrick www.cssexampoint.com ix ACKNOWLEDGEMENTS of Harvard. I have found his work ro be both illuminating but also televant for policy purposes. Thanks, Dani for setting me on this course. I was very fottunate when one of Pakistan's leading visual attists, Naiza Khan, winner of the 2013 Prince Claus award, volunteered to adorn the title cover of this book with one of her creative designs. Despite her teaching engagements at Cornell she ptoduced seveta! outstanding pieces and it became teally difficult to choose one of them. I am greatly indebted to her for this genetous offer and for sparing time to ptoduce an excellent piece of work which has enhanced the aesthetic value of this book. I would like to express my ptofound thanks to Ameena Saiyid, Nadia Ghani, and Raheela Baqai of the Oxford University Pressfor their consisrent and conrinuous support, and to my editor, Sunara Nizami, for her hard work and dedication thtoughout this project. Finally, I have no words to convey my heartfelt gratitude to my spouse, Shahnaz, and daughters, Farah and Uzma. They have always been fully behind me in whatever I have endeavoured to do, even at the expense of their own inconveniences. Shahnaz not only relocated twice during this period but took eate of all the daily chores and allowed me complete space and freedom to concentrate on my work. Farah and Uzma were both interested in my work but equally concerned about the long hours I was putting in and the travels I was undertaking. I felt guilty that this ptoject kept me away ftom spending more time with my adorable grandchildren. This book would not have seen the light of the day without their love and support. www.cssexampoint.com Preface y is pakistan perceived to be an 'ungovernable' state? A label it never carried in the past? Can anything be done to restore it to the track from which it derailed?These are questions that Ware often asked by the global community and the public at large in Pakistan. We do not pretend to have either a magic wand to answer these very complicated but relevant questions or a crystal ball to foresee the future. In all humility, what we can do is to figure out why pakistan was among the top ten performing developing countries ahead of China, India, Vietnam, and many others in economic and social indicators recording an average GDP growth rate of6 per cent annually for over 40 years until 1990. It was a peaceful country enjoying respect amongst the world community. Tourists and visitors from abroad were able to visit any part of Pakistan freely in what they found to be a safe and secure country of friendly, hospitable, and caring people. Thousands of students from African and Asian countries studied at its universities and professional colleges. What happened then over the following 25 years from 1990-2015? How did Pakistan get lefr behind both economically and in terms of social development in the region, let alone in comparison to China and Vietnam? The Indian economy was only five times larger than Pakistan's in 1990. According to the latest estimates, it is eight or nine times larger now. pakistan has, during this period, gained notoriety in the international media as one of the most dangerous countries in the world.