Though Pakistan has a history of relying on IMF loans, Rida Yamin notes that the organization is not to blame for the state’s economic condition. She asserts that poor governance is a key factor in Pakistan’s economic decline and its tendency to take loans from the IMF. The political parties in Pakistan either fail to implement efficient policies or make high-cost-low-yield flawed policies that further exacerbate the economic crisis.
The changing dynamics of global politics has pushed the Indian Ocean region into the limelight, and so the author, Allah Nawaz, examines the strategic policies and alliances of China and India. Although both China and India have a huge disparity in conventional and non-conventional capabilities, the US and Israel’s role in making India a regional power has intensified Indo-China relations.
Economic security is necessary for every state but Pakistan’s economic problems have made it difficult for the South Asian state to acquire it. The author, Badshah Gul, notes that to improve its economic condition and to efficiently utilize its national resources, Pakistan needs to strengthen its relations with its neighboring countries—China, India, Afghanistan, and Iran—and engage with regional organizations like SAARC and the Economic Cooperation Organization (ECO).
2021 was truly an unpredictable year for Pakistan. The country saw turbulence in the political realm with protests by the Pakistan Democratic Movement (PDM), and dharnas by various other entities. The country’s economic woes only intensified as it failed to exit the FATF grey list. On the bright side, Pakistan’s athletes were given the due spotlight at several games this year, particularly at the Tokyo Olympics. Take a look at some of the major developments that took place in Pakistan in 2021.
President Erdogan is seeking to incorporate the Chinese economic model in Turkey. As such, Turkey will abandon high-interest rates and turn to production and exports. Opposing parties have cited this proposal to be unquestionably authoritarian. The author, Necati Demircan, explores Turkey’s abandonment of the neoliberal economic model and the new slogan of production in the country’s orientation towards Asia.
With citizens being choked by the worsening inflation, the PTI government under Imran Khan is doing everything it can to avert the economic fallout that awaits if the IMF refuses the $1 billion loan. Many economists believe the IMF economic deal to be the cause of Pakistan’s rising inflation, but at this juncture, this dreaded deal also seems to be the only recourse for the country.
In 2019, the former US president, Donald Trump, declared China a currency manipulator. Although his predecessor, Barack Obama, had refrained from labeling China as such, he had shown frustration with its currency devaluation. For China, the low currency has been a cause for greater foreign investment. Since the state has a cheap production cost and labor, the international community now relies heavily on China’s exports. The author, Muhammad Hamza Tanvir, notes that China stockpiles American dollars and then uses them to purchase US treasuries which, in certain cases, can prove disastrous for the US. He explains that the US and China are ensnared in the Thucydides’ Trap and any development in their relations will affect the entire world.
The ongoing coronavirus pandemic has left no part of the world unharmed. Aside from its devastating impact on human life, COVID-19 has severely damaged the global economy. The author notes that the collapsing global economy has increased unemployment, food insecurity, and poverty, and threatened international trade and tourism. Due to the pandemic, the oil demand has reduced by 30% and the oil prices have reached an all-time low, causing the oil-producing states to suffer a 50-85% loss in oil revenues. According to the Asian Development Bank (ADB), this collapse is likely to cost the world economy $5.8 to $8.8 trillion. The author explains that for the recovery of the global economy, international organizations and varying countries (i.e. the US, China, Japan, and Pakistan) have introduced several initiatives and stimulus packages. However, for these measures to be successful, international cooperation is necessary.
Pakistan’s agricultural sector possesses the ability to drive the state’s economy. Despite that, the sector only contributes 24% to the GDP of Pakistan and its true potential remains untapped. The author notes that the policies of the previous governments and the mismanagement of the resources have led to sluggish agricultural growth, post-harvest losses, and caused Pakistan to lag in the seed and livestock sectors. The author argues that while Pakistan has the perfect environment for growing high-value crops, the current challenges to the agricultural sector have held back the state.
Since its independence in 1965, Singapore has come a long way. Now, it ranks as the 5th largest recipient of foreign direct investment (FDI) worldwide. The state is also renowned for its high living standards, public administration, and commendable infrastructure. The author notes that the “economic miracle” has achieved this by letting go of its colonial baggage, reforming its education curriculum and public sector, and successfully establishing a national identity without assimilating its multi-ethnic population. The author asserts that while Pakistan’s identity and geopolitical issues are more complex than that of Singapore, the Singaporean model can still provide the state with lessons in nation-building and identity construction.
Although the two consecutive financial crises of 2000 and 2001 shook Turkey’s economy to the core, they also paved the way for major economic reform. Against that backdrop, the author, Nimra Dawood, reflects on the remarkable economic development witnessed in Turkey shortly after the financial crises.
The Taliban takeover in Afghanistan has significant implications for the regional actors, particularly for Pakistan. The author notes that the fall of Kabul could negatively influence the economy of Pakistan. She asserts that with the border between the two states open, the possibility of Pakistan facing another refugee crisis, a drug trafficking problem, and terrorism, has also increased. These issues will ultimately cause the economic growth of Pakistan – which improved by 3.94% in 2021 – to decline and undermine the progress of the developmental projects in the state.
Pakistan’s fluctuating economy has witnessed an alarming downturn after the brutal second wave of Covid-19. The poverty rate was predicted to increase to a whopping 58.6% (from the pre-Covid 23.4%) in the case of a high impact scenario. With a third wave currently gripping the state, the author believes that the government’s policies can either improve the economic situation of the country – or make it much worse.
The implications of the world systems theory, proposed by Immanuel Wallerstein, can be seen in the influence of the coronavirus on the economy of each state affected by the virus. The author asserts that while the virus has heavily impacted the rich core states, they are still better off as compared to the developing and underdeveloped states. She explains that the pandemic has made the North-South divide even more apparent; it has made it clear that the world cannot have a unified economy.
Today, Bangladesh celebrates its golden jubilee of independence from Pakistan. The country’s social and economic development has only accelerated in the 50 years since its inception and despite Bangladesh’s troubling South Asian dynamics, its economic and social growth continues to thrive. The main reason behind such growth Bangladesh’s commitment to a secular polity.
The paper is structured around assessing mainly the gross domestic product and human development index of India, Bangladesh, and Pakistan.