‘Good governance stimulates growth’

LAHORE: The cheapest form of stimulus for growth is confidence and growth will only be achieved if citizens and investors are provided the confidence that the benefits will be shared fairly and transparently, experts said on Wednesday.
The government should realize that it’s Asia and Africa from where the growth will be generated in 21st century, while the growth in developed economies will be slow as they have already achieved the peak form of their GDP according to their potential, they added.
They said the same potential has not been exploited in developing countries like Asia and Africa and particularly Pakistan. However, they pointed out that highly developed economies even if they grow at a pace of two percent would out run Pakistan, if it grows at a pace of 10 percent average for a decade.
“Creating confidence among investors while ensuring equitable growth is a very difficult job,” said market analyst Amina Usman CPA.
This target could be achieved through transparency and fair practice, she said, adding that when assured fair play, investors would flock a developing country like Pakistan, where young consuming class is expanding rapidly.
She said to instill confidence among the citizens the government would have to ensure that justice would be quick and government services would be efficient and without graft. These measures alone would close the poverty gap appreciably as currently only the influential families have monopoly on government services.
She said plenty of work needs to be done for the lower strata of society in Pakistan, adding that besides education the issue of transition from school to work needs quantitative enhancement as well. Essential skills will have to be imparted, for which resources are already available while only corrupt menace needs to be reduced by at least 25 percent.
Amina said healthcare is equally important, not only the young but aged need adequate health coverage, adding that technology should be applied to make health services available in all the remote areas.
Economist Faisal Qamar stressed that greater efforts are needed to promote innovators in Pakistan. He said science and research now offers more promises and rewards to the developing countries than ever before.
“Only we will have to analyze the quality of our institution because strong institutions would ensure changes in our society,” he added.
Qamar, however, expressed that mobile networks are only being used for nonproductive work by majority of the subscribers, “only few are benefiting from mobile revolution as the institutions regulating the technology have never tried to create awareness about the social and economic benefits of the technology to the subscribers.”
He said technology is changing the world with much more vigor than the industrial revolution of late 19th century and there is still time to engage our youth in gainful employment.
“We would ruin our economy if we fail to keep pace with the technology which is changing at a mega speed,” he warned, adding that that the days are gone when an employee used to spend his entire life with a single employer. He said employers would no more act as insurance for lifelong work. Instead, the state will have to get prepared for the fact that more of the economy ultimately is going to be in health and education than has been the case traditionally. Thus, there will be a need for more progressive taxation as well, he added.
Qamar said the state would have to come out of the public appeasing mode and should focus on raising the demand for capital and stimulating investment. For that, the spending on meaningful public sector infrastructures should be increased and government borrowing should be limited to infrastructure projects that will boost economy and quality of lives of masses, he added.
Certified Public Accountant Asif Ali Shahid said the development plans should be in line with realities of 21st century. Transporting oil through trains is a thing of the past, now the country needs investment in pipeline infrastructure, the trains should be spared for transport of capital goods at low cost, he said, adding, “We need much more broadband devices then what we have available and this should be done urgently.” From the private sector, Pakistan needs commitment to investment on a large scale, he said, further adding that this commitment would only come if they have confidence in the government policies.