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| Industrial Backwardness Essay |
Industrialization means novelty and change. If those who hold power fear that change may bring unpleasant consequences, they will systematically obstruct it, which rulers in Pakistan proceeded to do from decades. But slow and distorted industry development in Pakistan is the result of blocked opportunities as well. Wouldn't Pakistan be much better off if it exported more of its textiles to the rich industrial world? Wouldn't waiving Pakistan's quota under the Multi- Fiber Agreement have been a very good and important step for the US government to take in reciprocation of the Pakistani government's help as US-led forces attacked Al Qaeda bases in Afghanistan? No doubt it would have been.
But other key reasons for the slow pace of industry development in Pakistan reflect the standard dilemmas of poor governance. "Protect property rights and enforce contracts”. But property rights and contracts are threatened at many levels. They are threatened by roving bandits, by local notables, and, most of all, by government functionaries who use their offices to extort extra income. Simply put, a weak state cannot enforce contracts and property rights, while a state that is strong enough to enforce them must control its own bureaucrats.
However, the most important reasons that Pakistan has done worse than Latin America or Southeast Asia seem to be focused around education. There can be little hope for sustained industry and economic development where the educational system is at least one generation--and possibly three generations behind other regions in terms of its commitment to universal literacy, and where higher education largely ignores the skills and subjects needed to enable people to master technology.
After all, blocked export opportunities, weak government institutions, and high levels of corruption are worldwide problems. Even political and religious leaders hostile to change and industrialization are not uncommon. But as we compare patterns of development throughout the world, more and more evidence is piling up that universal literacy and a large class of people with industrial-technical skills are key resources that determine whether countries are able to break free from the grip of backwardness and poverty.
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