Governance Issues in Pakistan
EXTRACTIVE INSTITUTIONS
• Good governance
Is directly related to institutional stability and the breakdown in the institutional development is a major cause behind bad governance
• The issues like institutional development, institutional stability, institutional balance and accommodation have affected Pakistan
• Institutional imbalance
It is the need for all institutions to work within their ambit
Inclusive institutions
These are the ones
1. Where plurality and greater participation of the populace is ensured
2. Economic gains and incentives are broadly shared
Extractive institutions
These are created
1. For the benefit of a tiny elite
2. Are perpetuated for the benefit of that elite
An Influential Book (on the subject = governance/institutions)
Why Nations Fail: The Origins of Power, Prosperity and Poverty (by Daron Acemoglu and James Robinson), says:
1. The progress and prosperity of nations is inextricably (inseparably/inescapably) connected to with the way political and economic institutions evolve in their histories
a. Those nations progress to prosperity which have inclusive political and economic institutions
b. The nations with extractive political and economic institutions end up being poor and fragile
2. This institutional development results from historical evolution of institutions
How institutions structure nations (illustration by example of impact of inclusive Vs extractive institutions on nations)
• Contrasting examples of two small towns bearing the same name of Nogales facing each other across US-Mexican border
• Explanation for their contrasting fortunes lies in the nature of their current political and economic institutions
1. Mexican Nogales
Is dirt poor, instable with lower health and educational outcomes due to extractive political economic institutions
2. US Nogales
Is rich, stable and demonstrates better health and education outcomes due to inclusive political and economic institutions
• Good governance
Is directly related to institutional stability and the breakdown in the institutional development is a major cause behind bad governance
• The issues like institutional development, institutional stability, institutional balance and accommodation have affected Pakistan
• Institutional imbalance
It is the need for all institutions to work within their ambit
Inclusive institutions
These are the ones
1. Where plurality and greater participation of the populace is ensured
2. Economic gains and incentives are broadly shared
Extractive institutions
These are created
1. For the benefit of a tiny elite
2. Are perpetuated for the benefit of that elite
An Influential Book (on the subject = governance/institutions)
Why Nations Fail: The Origins of Power, Prosperity and Poverty (by Daron Acemoglu and James Robinson), says:
1. The progress and prosperity of nations is inextricably (inseparably/inescapably) connected to with the way political and economic institutions evolve in their histories
a. Those nations progress to prosperity which have inclusive political and economic institutions
b. The nations with extractive political and economic institutions end up being poor and fragile
2. This institutional development results from historical evolution of institutions
How institutions structure nations (illustration by example of impact of inclusive Vs extractive institutions on nations)
• Contrasting examples of two small towns bearing the same name of Nogales facing each other across US-Mexican border
• Explanation for their contrasting fortunes lies in the nature of their current political and economic institutions
1. Mexican Nogales
Is dirt poor, instable with lower health and educational outcomes due to extractive political economic institutions
2. US Nogales
Is rich, stable and demonstrates better health and education outcomes due to inclusive political and economic institutions