by From Asad Zaman The prescriptions of Development Economics were applied to generate growth in Pakistan in the 1960s by a group of expert economists from Harvard. As already discussed, these theories focus on the accumulation of capital, rather than the lives of human beings. Pakistani economist Mahbubul-Haq saw through the mathematical formulations to the heart of the strategy proposed for growth. He wrote: “ It is well to recognize that economic growth is a brutal, sordid process. There are no shortcuts to it. The essence of it lies in making the laborer produce more than he is allowed to consume for his immediate needs, and to reinvest the surplus thus obtained.” Despite this clear recognition, he thought that exploiting the poor was necessary to create growth, which would bring
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from Asad Zaman
The prescriptions of Development Economics were applied to generate growth in Pakistan in the 1960s by a group of expert economists from Harvard. As already discussed, these theories focus on the accumulation of capital, rather than the lives of human beings. Pakistani economist Mahbubul-Haq saw through the mathematical formulations to the heart of the strategy proposed for growth. He wrote: “ It is well to recognize that economic growth is a brutal, sordid process. There are no shortcuts to it. The essence of it lies in making the laborer produce more than he is allowed to consume for his immediate needs, and to reinvest the surplus thus obtained.” Despite this clear recognition, he thought that exploiting the poor was necessary to create growth, which would bring long-term benefits to all. Much to his credit, he renounced his earlier views when he saw the bad effects of these economic policies. As the Power=Knowledge theory predicts, these theories were accepted and adopted not because they were true, but because they served the interests of the rich. Mahbubul Haq noted that wealth became concentrated (in the hands of 22 families) and did not “trickle-down.” He wrote that “we were told to take care of our GNP as that would take care of poverty – let us reverse this and take care of poverty as this will take care of our GNP.”
One might think that the learning acquired from experience would translate into practice. This accords with the idea that knowledge is “true” and is acquired by rejection of false theories. However, the knowledge acquired by Mahbubul-Haq at such great cost to the Pakistani public was promptly forgotten. Mahbubul-Haq went back to the World Bank, and Pakistani governments, military and civil alike, continued to concentrate on programs favoring accumulation of capital by the wealthy at the expense of the public. Only lip service was paid to key initiatives like achieving universal literacy, which is a prerequisite for economic growth of any kind. read more: http://www.paecon.net/PAEReview/issue101/Zaman101.pdf