Pakistan Society ofDevelopment Economists Research Articles

Pakistan Society of Development Economists: Secretary's Report

On this occasion last year, I had reviewed the history, and aims and objectives of the Society. I had also outlined at some length the major activities undertaken by the Society since its inception. I feel no need to repeat what I had reported last year, especially because its account has been published in the 1985 Proceedings issue of the Pakistan Development Review. I would only submit that the Society, in the four short years since its creation, has grown from strength to strength and that by now it is a fully grown organization effectively achieving the objectives for which it was created. I am happy to report that the state of the Society is excellent with all time records set this year in membership, in attendance at the Annual Meetings and in the breadth and scope of the issues addressed both in the Lecture Series in Development Economics and in the Annual Meetings. We now have a rich experience and a routine has been established which should be helpful in an efficient conduct of the activities of the Society in future years.

Inaugural Address

President Pakistan Society of Development Economists (PSDE) and Vice Chancellor of Pakistan Institute of Development Economics (PIDE) Dr Asad Zaman, Secretary Planning, Secretary PSDE, distinguished economists, eminent scholars from overseas, and young economists of Pakistan. Ladies and gentlemen, it is indeed a great honour and privilege for me to be the chief guest at the opening ceremony of the 31st Annual General Meeting and Conference of Pakistan Society of Development Economists. I happen to be a teacher as well as the politician, so, I promise you to be succinct while inaugurating the Conference. It is a matter of great pride to acknowledge that the tradition initiated by the Society in 1982 continues with great strength. All credit goes to Prof. Nawab Haider Naqvi, one of the founding fathers of this tradition. It is also a tribute to the sincerity of those who are keeping this tradition alive. I hope this tradition of knowledge sharing and intellectual debate will be of practical benefit to the development journey of Pakistan. I am sure that it will go on uninterrupted in future as well, and through such platforms we will be getting new ideas and solutions to our problems. Allama Iqbal also penned down such thoughts:

Energy, Environment and Sustainable Development in South Asia (The Quaid-i-Azam Lecture)

Honourable Federal Minister for Planning, Development and Reform, his excellency Mr Ahsan Iqbal, the President, Pakistan Society of Development Economists, discussants, Dr Ashfaque Hasan Khan and Dr Rehana Siddiqui, Dr Durr-e-Nayab, distinguished ladies and gentlemen, let me say at the outset that it is a great privilege for me to be here and to be given this opportunity to deliver the Quaid-i-Azam Lecture. I regard this as a signal honour and I feel particularly privileged coming from India being able to speak in honour of the Quaid-i-Azam, the founder of this country. I want to express my gratitude for this particular privilege which I have been given. I also want to acknowledge the very warm sentiments expressed by his Excellency the Minister. I certainly believe that in this day and age we have to look forward, we have to look at the future and I think we have to erase some of the problems, demolish some of the barriers and the hindrances that have prevented South Asian cooperation in the past. So Sir, your words in that context are certainly appreciated and I would say that we have to put them into effect by ushering in a new future for this region. I want to mention that when I had the privilege of accepting the Nobel peace prize on behalf of Inter-governmental Panel on Climate Change (IPCC) in 2007 along with Mr Al Gore, in my acceptance speech I used a Sanskrit phrase which is Vasudhaiva Kutumbakam and that means the universe is one family. Now if the universe is one family, may I submit that, we particularly in Pakistan and India are really the core of that family. I believe the future lies in our ability to develop a model of economic growth and development that serves as an example for the rest of the world. Let me at the very outset say that we have been somewhat negligent and perhaps short sighted in emulating what has been established as a form of development in other parts of the world and I will say a little more about this as I move on. Let me start by referring to the definition of sustainable development which essentially comes out of the work of the Brundtland Commission that was completed in 1987 and it’s a very simple definition. It defines sustainable development as that form of development which allows the current generation to meet their own needs without compromising on the ability of future generations to meet their own needs. So, therefore, it essentially takes into account the issue of intergenerational equity. Whatever we do today should not be selfishly oriented by which we might meet more than our needs today

“Economic Reforms for Productivity, Innovation and Growth” (The Presidential Address)

Finance Minister, Dr Abdul Hafeez Sheikh, Dr Nadeem Ul Haque, Patron of the Pakistan Society of Development Economists, and Deputy Chairman Planning Commission, Past Presidents and Distinguished Members of the Society, Excellencies, Ladies and Gentlemen! It is my pleasure to welcome you all to the 28th Annual General Meeting and Conference of the Pakistan Society of Development Economists. On behalf of the members of the PSDE, I would like to thank you, Finance Minister for having spared your precious time to open this important meeting. I would also like to especially thank our members and guests who have come from different parts of the country and from different continents to participate in the Conference. We are extremely pleased to see here today many young students—Pakistan’s future economists and business leaders—who I am sure are enthusiastic to learn from the many leading specialists attending this Conference on the critical economic issues and challenges that we face at the global, regional and national levels. Let me join Dr Musleh ud Din in especially welcoming Professor L. Alan Winters, Professor of Economics, University of Sussex, United Kingdom, who will be delivering The Mahbub Ul Haq Memorial Lecture later today; Professor M. Ali Khan, Abram Hutzler Professor of Political Economy, Johns Hopkins University, USA who will be delivering the Gustav Ranis Lecture; Dr Yannos Papantoniou, Former Economy and Finance Minister of Greece, and currently President of the Centre for Progressive Policy Research, Athens, who will deliver The Allama Iqbal Lecture; and Dr Ishrat Husain, Dean and Director, Institute of Business Administration, Karachi, Former Governor, State Bank of Pakistan who will be delivering the Quaid-i-Azam Lecture this year. In continuation of the tradition started last year by the Pakistan Society of Development Economists (PSDE), the Society will this year be honouring Professor S. M. Naseem to acknowledge his outstanding contribution to the field of Economics and for his pioneering work on Pakistan.

Inaugural Address

Dr Rashid Amjad, President Pakistan Society of Development Economists and Vice-Chancellor PIDE, distinguished guests, ladies and gentlemen, it gives me great pleasure to address the 27th Annual General Meeting and Conference of the Pakistan Society of Development Economists (PSDE). I am pleased to note that the Society has been instrumental in promoting scholarly research and debate on critical socio-economic issues facing Pakistan, and that the Pakistan Institute of Development Economics (PIDE) has played a vital role in promoting and nurturing the Society since its inception in 1982. The Society has not only upheld and galvanized the profession of development economics in Pakistan but has also helped inspire new ideas for the greater development and prosperity of Pakistan. Ladies and gentlemen, I am happy to see that when I address you today Pakistan's economy is again showing distinct signs of recovery and we hope to achieve a growth rate of 4 to 5 percent this year which should help lift us to a much higher growth trajectory in the future. Despite the heavy headwinds that we have had to face, our government took important fundamental economic decisions of which we can be justly proud.

Economic Growth and Development: New Directions (The Presidential Address)

Finance Minister, Dr Abdul Hafeez Sheikh, Dr Nadeem VI Haque, Patron of the Pakistan Society of Development Economists and Deputy Chairman Planning Commission, Past Presidents and Distinguished Members of the Society, Excellencies, Ladies and Gentlemen: It is my pleasure to welcome you all to the 27th Annual General Meeting and Conference of the Pakistan Society of Development Economists. On behalf of the members of the PSDE, I would like to thank you, Finance Minister for having spared your precious time to open this important meeting. I would like also to especially thank our members and guests who have come from different parts of the country and from different continents to participate in the Conference. We are extremely pleased to see here today many young students of Economics and Development-Pakistan's future economists and development specialists-who I am sure are enthusiastic to learn from the many leading economists attending this Conference of the critical issues and economic challenges that we face at the national, regional and global levels.

Inaugural Address

My fellow social scientists, economists, scholars, thinkers, observers. Welcome to the 26th Annual General Meeting and Conference of the Pakistan Society of Development Economists—a society that prides itself on being the only “professional association of economists and other social scientists” in the country. This annual event serves many purposes: it is an intellectual exchange allowing a stock taking of research and ideas; it is a showcase of fresh understandings and analyses of the Pakistani economy and society; it is a place to review policy and develop constructive policy debates to improve economic management; and it is also a place to develop economists and prepare them to lead development thinking in the country. I was happy to see that the agenda contains a number of panels with leading Pakistani economists discussing a burning issue of the day—fiscal federalism which we are facing with the 18th amendment and the NFC award. We will all await ideas that are generated from the PSDE.

Inaugural Address

Dr Ishfaq Ahmad, Deputy Chairman, Planning Commission, Dr Rashid Amjad, President, Pakistan Society of Development Economists, Dr G. M. Arif, Secretary Pakistan Society of Development Economists, Excellencies, Ladies and Gentlemen! It is indeed a privilege and honour to address this distinguished gathering of economists and social scientists. Over the years the Annual Conference of the Pakistan Society of Development Economists has become one of the leading events on the calendar of meetings where experts from various disciplines discuss cutting edge issues that confront developing economies in general and Pakistan’s economy in particular. I want to especially congratulate the Society and the President on completing 25 years as it celebrates its Silver Jubilee. I am very happy that the founding President, Prof. Dr Nawab Haider Naqvi is with us today and that some of the past Presidents are also present. The Pakistan Institute of Development Economics, the home of the Society, also needs to be congratulated for holding such conferences on an annual and regular basis. I am very happy that this meeting as in the past is being attended by internationally acclaimed economists and academics from both within and outside the country. I am especially heartened to see that students of economics from all over Pakistan have been especially invited to attend this meeting.

Investing in People (The Presidential Address)

Syed Naveed Qamar, Federal Minister for Petroleum and Natural Resources, Dr Ishfaq Ahmad, Deputy Chairman, Planning Commission, Professor Syed Nawab Haider Naqvi, Former President, PSDE, Dr Sarfraz Khan Qureshi, Former President, PSDE, Dr G. M. Arif, Secretary, PSDE, Past Presidents and Distinguished Members of the Society. Excellencies, Ladies and Gentlemen It is my pleasure to welcome you all to the 25th Annual General Meeting and Conference of the Pakistan Society of Development Economists. We are extremely grateful to Syed Naveed Qamar, Federal Minister, Petroleum and Natural Resources, for having spared his precious time to join us at the inaugural session. It was during your tenure as Finance Minister that important and difficult economic decisions were taken to restore macroeconomic stability resulting from the unprecedented increases in international commodity prices, the global financial meltdown and neglect and inaction of past policy-makers. That the economy today has achieved macro stability in many of the key indicators is to a large measure the result of these decisions. I am also extremely grateful to our Patron Dr Ishfaq Ahmad, Deputy Chairman, Planning Commission, for his active interest and support to the work of our Society. A warm welcome to our members and guests who have come from different parts of the country and abroad. It is especially satisfying to see our future economists from all over the country join us at the Conference. Let me join Dr Arif in welcoming Dr Mohsin Khan who will be delivering the Quaid-i-Azam Lecture, Professor Hirashima who will be delivering the Allama Iqbal Lecture, Professor John Casterline, the Mahbubul Haq Lecture and Professor Robin Burgess, the Gustav Ranis Lecture (which we started last year).

Economic Sustainability in a Globalised World (The Presidential Address)

Mr Prime Minister, Patron of the Pakistan Society of Development Economists and Chancellor PIDE, Minister for Planning and Development, Ministers, Past Presidents and Distinguished Members of the Society, Excellencies, Ladies and Gentlemen: It is my pleasure to welcome you all to the 24th Annual General Meeting and Conference of the Pakistan Society of Development Economists. We are extremely grateful and honoured by the presence of the Prime Minister. On behalf of the members of the Pakistan Society of Development Economists (PSDE), I would like to thank you, Sir, for having spared your precious time to grace this occasion. I would like also to especially thank our guests who have come from different parts of the country and from abroad to participate in the Conference. We are heartily pleased to see here today many students of Economics and other social sciences from different colleges and universities of Pakistan who are just as eager as regular members to understand our subject better. Let me join Dr Arif in especially welcoming Professor Yu Yongding, Professor John Mellor, Professor Siddiqur Rahman Osmani, and Dr Parvez Hasan, who will be delivering the Invited Lectures this year. At the outset, on behalf of all members of the PSDE, I would like to recognise the support and encouragement of the Prime Minister as Chairman of the Planning Commission to the initiative taken by the Deputy Chairman and his predecessor Mr Salman Faruqui to actively involve professional economists in Pakistan in the process of economic policy-making. The new Task Forces on critical economic concerns and the Advisory Panel of Economists to frame the short-run and medium-term policies by the Planning Commission are democracy’s gifts to the economists of Pakistan. Democracy encourages independent thinking, accommodates diverse viewpoints, and thus makes it possible to evolve a comprehensive policy for all.

Inaugural Address

Distinguished Guests, Excellencies, Ladies and Gentlemen: It gives me great pleasure to inaugurate the 23rd Annual General Meeting of the Pakistan Society of Development Economists. I am particularly happy at the choice of theme for this year’s conference i.e. “Environment and Natural Resource Management: Issues and Challenges”, as it shows the deep concern of Pakistani economists that economic development and growth cannot go on indefinitely without limit and without regard to our habitat and environment. I will invite your attention to a few areas which are impacting Pakistani development strategies. Our planet just cannot sustain its present and future population numbers, if the current global trends of consumption continue in the attitude of business as usual. We have witnessed the effect of this most acutely in the last couple of years, with major increases in prices of most food commodities, minerals and metals, and of course fossil fuels. Globally, the amount of land on which we grow our food has been shrinking every year, and has actually fallen to less than half of the hectares per capita used for grain production fifty years ago.

Environment and Natural Resource Management (The Presidential Address)

Engr. Dr. M. Akram Sheikh, Deputy Chairman, Planning Commission of Pakistan. Past Presidents of the Pakistan Society of Development Economists, Distinguished participants to the 23rd Annual Conference and General Meeting of the Society. Ladies and Gentlemen: It is indeed an honour and privilege for me to deliver the Presidential address at this prestigious forum. I am very well aware of my distinguished predecessors who have served as Presidents of this Society and I hope that I can during my tenure do justice to this responsibility. As you perhaps know yesterday we held the first Convocation of the Pakistan Institute of Development Economics and in the afternoon we launched the Golden Jubilee Celebrations to mark fifty years of its existence. I am sure that given the high regard and esteem with which we all hold the Pakistan Institute of Development Economics, members of the Society will share in the pride that we all feel on the award of 10 PhDs and one MPhil to students of the Institute and also join me in congratulating the Institute on the occasion of its Golden Jubilee. The plans are to hold the Golden Jubilee Celebrations in different parts of the country and we look forward to your active participation in these events.

Towards Reorientating the Role of the Government in Pakistan (The Quaid-i-Azam Lecture)

I feel it a privilege to be asked to give the Quaid-i-Azam lecture on the occasion of the 22nd Annual Meeting of the Pakistan Society of Development Economists (PSDE). At a time when sustainability appears difficult and institutions are not finding it easy to take hold, it is a source of legitimate pride that the PSDE has been able to meet consecutively for 22 years and to bring economists together to discuss current ideas, present latest research, and to think about our country: its economy; its institutions and its future; and also to think about our profession, and the role it can play in our country, in understanding and interpreting its past and in shaping and influencing its future. And of course it is a good opportunity for us to have some fun and renew the bonds of friendship. The theme for this year’s meetings—governance—is both timely and important. And it is a tribute to the resourcefulness of the organisers, in particular the President of PSDE, Dr Nadeem Ul Haque that he has been able to attract high quality participation from the academic and policy circles of Pakistan.

Inaugural Address

I would like to extend a very warm welcome to all of you assembled here this morning. It is a great honour for me to address this opening session of the Twentieth Annual General Meeting and Conference of the Pakistan Society of Development Economists. Recent decades have witnessed a proliferation of regional integration schemes around the world involving both developed and developing countries alike. In the context of developing economies, the promotion of regional economic cooperation and integration is increasingly being viewed as an important instrument for expediting the process of economic development. It is widely believed that regional economic cooperation yields gains in production specialisation, efficiency and improved quality of exports, all of which benefit the countries participating in the regional cooperation effort.

Budgetary Reforms for Growth and Poverty Reduction in Pakistan (The Mahbub-ul-Haq Memorial Lecture)

Webster’s Dictionary defines institution as “an established order, principle, law or usage as an element of organised society or of civilisation”. There are other interpretations of this term, depending upon the context for which the term is needed. For the purposes of the theme of this 19th Annual General Meeting of the Pakistan Society of Development Economists (PSDE), “Institutional Change, Growth and Poverty”, I find this well-crafted Webster Dictionary definition to be appropriate and adequate. There is now strong recognition that institutional reforms are necessary to sustain rapid growth and poverty reduction in developing countries. However, it is first necessary to identify and specify what these institutional reforms are. A number of systematic efforts to define institutions in an analytical context have been undertaken. For example, the World Development Report (WDR) 2002 of the World Bank focused on “Building Institutions for Markets” as the core theme of the report.1 There has been emphasis on aspects of institutions in other WDRs as well, including in the WDR 1997 on the Role of the State,2 the WDR 2003 on Environment,3 and the most recent WDR 2004 on Service Delivery.4 Each of the WDRs builds on the analysis of earlier WDRs and provides analysis of the institutional context of the development challenge in concrete terms to make associated reforms implementable. This is indeed a laudable effort and provides a fairly rich analytical base over which one can build on to move the institutional reform agenda forward.

Inaugural Address

Excellencies, Ladies and Gentlemen: The 17th Annual General Meeting of the Pakistan Society of Development Economists (PSDE) is taking place at a critical juncture of our economic history. The events of September 11 have changed the complexion of the global economy. Global economic prospects appear grim, at least, in the short-run. Developed and developing countries are witnessing their economic growth reduced or even turned negative owing to the slowdown in the global economy. Growth in international trade during 2001 may undergo one of the severest deceleration in modern times. As 2001 closed and a new year began some two weeks ago, the global economy is now balanced precariously between recession and recovery. Although the full impact of September 11 events is still to realised and evaluated, it has nevertheless, unleashed new and unpredictable forces that have substantially raised the risk of global downturn. Being the part of the global economy and that it has placed itself at the epicentre of global events, Pakistan has once again been thrust into the role of a front line state. Whatever happens to the global economy is bound to create temporary difficulties for Pakistan’s economy as well. But at the same time, Pakistan is also witnessing the openings of several opportunities to strengthen its economy. The challenge before us is two fold: how to minimise the loss caused by the temporary difficulties and how to position ourselves to translate the openings of opportunities into real gains for the country.

Pakistan’s Economy: Potential and Challenges (Patron’s Address)

Mr President, Distinguished Delegates, Excellencies, Colleagues, Ladies and Gentlemen: Assalam-o-Alaikum. The Annual Conference of the Pakistan Society of Development Economists has traditionally provided the people of Pakistan—both practising economists and ordinary citizens—with a forum to debate in a rigorous analytical framework the major economic issues facing the country. In this context, the theme of the current conference “Growth, Poverty and Decentralisation” is particularly appropriate as Pakistan begins the 21st century. Many important issues will be discussed by the honourable participants during the Conference and an excellent start reflecting the quality of the debate has been made by the paper just presented by Dr Kemal. I, on my part, would like to take this opportunity to talk about Pakistan’s economy in an overall poverty elimination perspective and particularly the potential and challenges facing it in this regard. As a starting point, a summary of the potential of the Pakistan economy is in order. First, Pakistan is the home of the oldest and largest integrated land and water systems in the world. The world’s other old river basins—the Nile and the Tigris/Euphrates—have remained relatively minor, while Pakistan’s Indus Basin is still vital and robust. Last year, Pakistan’s record wheat crop again showed the world the potential of the Great Indus Food Machine.

Inaugural Address

At the outset let me thank Professor Hashmi for his kind words about me in the welcome address. It is a matter of great pleasure for me to inaugurate this conference. I congratulate the Pakistan Society of Development Economists on organising its 16th Annual Conference with such wide and distinguished participation. The conference’s theme “Growth, Poverty and Decentralisation” is highly relevant for Pakistan in view of the urgent need to pull the country out of the vicious circle of poverty and indebtedness. I hope this Conference will come up with concrete recommendations to strengthen the economy by addressing the issues confronting us in this matter. The importance of economy in the emerging global scene cannot be overemphasised. A country’s sovereignty, political stability and diplomatic weightage largely depend upon its state of economy. Pakistan can take genuine pride in its achievements since 1947. We started from the scratch and today we are proud to be the first Islamic country and 7th in the world to become a nuclear power. Our industrial sector, communication infrastructure and agriculture have attained reasonable levels of development. However today when we look back at our achievements, we see that we have not made judicious use of our scarce resources. We borrowed heavily and went on a spending spree without proper planning. Wastage and injudicious use of resources coupled with lop-sided planning have now landed us in economic crises. Our debts have become difficult to service, our population growth rate outpaces our economic growth, and disparities in incomes have increased the gap between the rich and the poor.

Inaugural Address

It is a matter of privilege and pleasure for me to attend this annual Conference of the Pakistan Society of Development Economists. Over the past years this gathering has turned into a regular event providing a unique opportunity to scholars, economists and social scientists to deliberate on issues of national and international significance. The participation of eminent scholars and experts from within and outside the country and the large number of papers on various topics to be presented during its four-day deliberations signify the importance of the Conference and augurs well for its success. I feel that in addition to offering a platform for academic and professional interaction, the Conference can also be used for putting forward specific recommendations that may be considered by the government in formulating its policies. The theme of the Conference, namely “Governance and Development”, is critical and timely. It implies that the issue of governance is not only significant in its own right but also has a direct and close bearing on development issues. Experience in Pakistan and elsewhere shows that neglecting the issue of governance and management has severely impaired economic growth and contributed to social and political malaise. It is a happy coincidence that this theme is also occupying a high position in the agenda of the present Government. You may recall that in his address to the nation on 17th October, the Chief Executive, General Pervez Musharraf, has identified good governance as the pre-requisite to achieving the seven aims and objectives that the government has set before it. This seven point agenda, includes the revival of the economy, restoration of investors’ confidence and ensuring swift and across the board accountability.

A Governance Perspective on Development Issues (The Presidential Address)

It is with great pleasure that I welcome you to the 15th Annual General Meeting of the Pakistan Society of Development Economists. I have had the proud privilege of being associated with this Society since its inception, initially as its Founding Secretary and member and later as its President. I have watched it flourish and helped ensure that it grows from strength to strength. In this, the last meeting of the Society with me as its President, I am really cheered by the presence of so many colleagues here, particularly as we know that we live in troubled times. But I can assure you of a frank and open discussion of the key development issues of the day. Economic growth and poverty reduction are difficult to achieve in the best of times. With decaying institutions and poor governance, these goals become an impossible dream. That is why the theme of this year’s annual meeting is “Governance, Institutional Reform, and Economic Growth”. I hope that the papers being presented and the discussions on or around this theme during these four days will indicate the way forward from the current morass. I shall not bore you with the details of the economy’s deplorable condition—most of you are familiar with them. Its deterioration is best judged by the International Country Risk Guide (ICRG) ratings for Pakistan, which are computed by weighting three elements—corruption, rule of law, and bureaucratic quality. These ratings for Pakistan in 1998 are three times what they were in 1982. This means that on a relative scale, things in Pakistan are three times as bad in 1998 as the 1982 levels.