Abstract

Every region and people has peculiar economic characteristics and these features largely have roots in that region‟s social structure, social psychology and its dynamics. The capitalist economy of the United States has roots in individualismand Protestant Work Ethic, influenced both by Protestant religion and the social character of the Americans; the Client Economy of Saudi Arabia has deep linkages to its tribal social structure and the so-called Bazaar Economy of Afghanistan is profoundly embedded in the Pakhtun social structure of the country. The Pakhtuns of Pakistan have a peculiar social structure and social psychology thereof having profound and extensive influence on the region‟s economy particularly its largely underdevelopedcondition. The paper explores the characteristics of Pakhtun social structure and the interactive linkages between the social edifice and economic development or lack of it.

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