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    South Asia
     Aug 18, 2007
Page 1 of 2
South Asia's schizophrenic twins
By Chan Akya

Reading through the various valedictory, overly critical and self-congratulatory articles on 60 years of independence for India and Pakistan this week, it becomes apparent that the media largely lack the courage to discuss the main issues confronting the two nations. Instead, the focus has overwhelmingly been on the cosmetic symptoms that are displayed by the disease in question.

In my opinion, this would be the abysmal economic record of the



two countries for the past 60 years that has been the dominant factor in the continued socio-political strife, diplomatic snafus and wars. The lack of economic growth in these two countries over the first 50 years of independence weighed on their domestic politics, security and, eventually, every element of the socio-political milieu.

Just after the Korean War, South Korea had a per capita income lower than India's. Fifty years later (and despite the effects of the 1997 Asian crisis), the country boasts an income more than 10 times India's. The magic of compound interest applies to economies as well - grow an economy at 5% every year, and it doubles in size in slightly less than 15 years; do it at 8% and it does it in just over nine years. Or put differently, the second economy would have tripled in size in the same time that the first doubled.

Much of the economic mess in the subcontinent can be laid at the door of two forces: feudal chiefs in the case of Pakistan and communist leaders in the case of India. Multilateral agencies such as the World Bank estimate that fewer than 500 families control more than three-quarters of Pakistan's resources. These powerful families have a blatant disregard for the laws of Pakistan, and express open disgust at democracy, often citing India's rambunctious politics as a justification. This corralling of power away from the poor and middle classes has left the military as the only national institution in Pakistan, which in turn explains its stranglehold on power.

In the absence of economic growth and political expression, the poor in Pakistan have turned increasingly to Islamic parties, especially from the mid-1980s. [1] While the nominal facade is religious, the ultimate objectives of many such political groupings are very much on the lines of communism, ie, an "equitable" redistribution of wealth. However, it is fair also to point out that Islamic parties across South Asia have been hijacked over the past few years by pseudo-nationalist forces aiming primarily to preserve the status quo favoring the very rich in each country.

India embarked on land reforms in the first few years after independence, thereby blunting the power of its feudal lords, but the victory was short-lived. Ill-thought-out socialist policies reduced economic growth from the second half of the 1950s, which in turn perpetuated the poverty suffered by hundreds of millions.

Combined with rising income disparities, the political framework ended up handing power to communist leaders, a term I use to describe the heads of all Indian political parties. These politicians come in different hues, but much like the French political system today, even the most right-wing of Indian politician looks like a socialist to me. From that perspective, branding the whole lot as communists does not appear an oversimplification of the current environment.

Communism is of course deadly for the economy, and one needs to look no further than the record for India in the 1960s and 1970s to explain the matter. Removing the entrepreneurial urges of a people once renowned for it is no mean achievement, after all. The pernicious impact of communist leaders in India has also been to push government bureaucrats rather than businessmen to the forefront of policy discussions.

Increased corruption was the easy result of such misguided policies, [2] more so in India than in Pakistan, mainly because one had to bribe a lot more people in the former to get anything done. Thus, irrespective of political hue, all political parties in India became increasingly corrupt over the past 20-odd years, in essence serving the same vested interests (businessmen) they were meant to combat. Anti-incumbency has become a permanent feature of the Indian political system as a result, with elections every five years or so inevitably bringing a new political party into power and, with it, a long list of supplicants and their own peevish demands.

Social changes ... or not
The deeply ingrained Islamic nature of Pakistani society has allowed relative social stability for much of the past 60 years. Even so, fissures on ethnic lines have deepened mainly because of economic strains. The dominance of the Punjab [3] in Pakistani economics (and military) resulted in deep divisions that eventually caused the creation of Bangladesh in 1971 and now threaten other provinces, especially the desperately poor ones on the border with Afghanistan.

In any economy growing slowly, demand for resources piles up in a geometric fashion as the existing infrastructure begins to creak under the weight of non-maintenance. That is the central feature of both India and Pakistan, but appears more acute in the non-Punjab parts of Pakistan. The intense envy thus evoked spilled over into the Bangladeshi movement in the 1960s, for example. Higher economic-growth rates, along with dedicated government focus on expanding the state's infrastructure, would have done much to keep Pakistan in one piece.

India had a different experience in this matter. Free mobility of people within the country allowed the expansion of labor-intensive industries in the western part of the country, and gradually across the rest of the north. Much like Pakistan's focus on the Punjab, successive Indian governments lavished attention on the largest 

Continued 1 2 


Pakistan's Pashtun 'problem' (Jul 26, '07)

Asia makes strides in cutting poverty (May 8, '07)


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