LAHORE: Public sector remains focused on well-being and improving living standards, but in many instances lack of resources and corrupt practices limit the benefits to the masses. Recent studies have shown that private sector can also play an important role in this regard.
The private sector predominantly provides financial services and wherever it introduces financial products to facilitate financial inclusion of the unbanked it has positive impact on the well being of the poor. In fact, there is a measurable link between financial inclusion and well-being.
Bangladesh and Africa countries like Ethiopia have improved the well being of their population through financial inclusion.
The most basic financial service to which an individual can have an access is an affordable financial account. Such accounts give people a safe way to deposit money, receive salary and other kinds of payments, and transfer funds to relatives. Financial inclusion in Pakistan is still less than 20 percent despite introduction of mobile-based transactions.
Pakistan needs a sound and flexible regulatory structure that promotes innovation and competition while safeguarding consumers and the integrity of the financial system. Once this system is in place the private sector would be able to innovate and introduce lucrative financial products for the poor.
Well being of citizens of a country depends on its wealth, investments and sustainability. Growth is also linked to well being and seems to be a better measure of how effectively a country has converted its economic growth into well-being. Countries like Brazil have improved well being with comparatively lower GDP growth than India or China. A research paper by the Boston Consulting Group said India and Bangladesh are converting their growth into well being much better than Pakistan.
On the sustainability front, countries growing at a faster pace are polluting the environment more than those growing at a slow pace particularly in developing economies. One reason is that they introduce less efficient and higher polluting equipments discarded by the developed economies. This is evident in Pakistan where environmental conditions have deteriorated more due to inefficient equipment than lax implementation of environmental laws.
A robust infrastructure, including reliable electricity and telecommunications networks and a well-functioning payment infrastructure is essential for the well being of citizen. Pakistan has not done badly in infrastructure compared with other economies of its size. However, it has faced acute power shortages in the recent years. This shows that the well-being is closely linked to equitable development of all types of infrastructure.
Private enterprises have the potential to create social benefits that strengthen the well-being. This can be easily done without deviating from their core; and they can do this in the course of operating their core business instead of doing it as a side activity. The businesses should find out the ways to create social value from their core businesses.
Education and health are two most important issues damaging the quality of life and well being of our lower strata of society.
Since the state has failed in providing quality education and health care, the private sector has jumped in to fill the gap. However, in doing so it has made quality education and healthcare out of reach of the poor. This attitude must be changed and poor should be given equal opportunities in these two spheres.
Civil society is too meek and never raises its voice against the disparity. There should be a movement to standardise educational curricula in all the schools. Civil society and private sector would have to come up with products that ensure basic health facilities to the poor.