Desperate dreams

LAHORE: We are poor in governance, productivity, energy efficiency, unity, gender equality, implementation of law and dispensation of quick justice, yet we aspire to be among the best 20 economies of the world.

Any of the above factors is enough to keep our nation away from prosperity and well-being. The dispensation of justice is delayed even in economic matters. It is an uphill task to enforce contracts as originally signed quickly through courts, the tax cases could linger on for years, and the defaulters continue to get stay orders on one pretext or the other.

Billions worth of fines slapped on businesses by regulators are pending in courts for over a decade. Economy is a package the success of which depends on numerous factors. It needs efficient and transparent bureaucracy, it needs a justice system that acts fairly and quickly, it needs a free market with prudent regulators. It needs accountability as well.

The entrepreneurs in established economies are accountable for their deeds. They cannot exploit the workers; they cannot dare to conceal their actual incomes. At the same time they have the confidence that the bureaucracy would not dare deny or delay permissions required for smooth operations without a valid reason. If the businessmen are accountable so are the bureaucrats and the members of the judiciary. The law of fair practices applies to all.

Every individual in our society feels himself above law. The businessmen openly deprive the workers of their legally due wages. Hardly 10 percent of the workforce in our country gets the minimum wage announced by the government.

The social security is applicable only on the workers registered in an organization (they are the ones drawing minimum wage). The remaining workers are deprived of social security benefits as the organisation does not register them with the relevant department. The social security officers have an idea of the actual number of employees. They agree to the organisation's stance at a price.

The productivity of all organisations showing a lower number of full time minimum wage workers is much higher that needs three to four times higher workforces. So they conceal the production as well.

When they conceal production they pay less sales tax and income tax as well. The revenue officers know very well the productions in these units, but are silenced by the bribe that they receive on a monthly basis.

The workers denied fair wages work under stress and their productivity suffers. They are prone to illnesses and are rarely sincere with the organisation. Exploited workers cannot be trusted.

The employee has to keep a strict eye on them. The potential of the employee also suffers as he consumes less time promoting business in the free market.

This creates a vicious cycle. The bribes and rents along with exploitation of workers reduce the state revenues and enrich the bureaucracy as well as bribers. The concept of free market stands nowhere. The market is ruled by those that create monopolies through bribe culture.

They deny entry to new entrepreneurs. Anyone that desires to enter the market has to follow all the rules. He has to pay the bribes and at the same time join hands with the players already in business. Failure to do so would boot the newcomer out of the market by the entrenched players that may undercut his prices long enough to force him to close down.

The society has a bias towards its fair gender. The women have almost no excess to finances, they work mostly in the informal sector and their wages are much lower than the exploited men workforce in formal industries. The number of girls out of school is three times higher than the boys. By rendering almost 50 percent of the population out of the real economy Pakistan is already operating with a huge handicap.

Things could have been better had the governance, accountability and justice system worked efficiently. Delayed decisions bring miseries to the people. The absence of accountability encourages corrupt officials and it is a fact that justice delayed is justice denied. When influential could hide behind stay orders for decades it breaks the will of litigants that failed to get quick justice.