It was rather strange to hear the finance minister’s advice given to the business community a couple of weeks back, to show restraint and patience as his government contemplates ringing the much-awaited reforms in the FBR. What exactly are those reforms, precisely how have they been framed and when will these be implemented; somehow, all these questions remain unanswered. Perhaps it is like asking someone to face the line of fire while the leadership works out a strategy on how to provide cover! Needless to say, such a statement comes across as being rather absurd, especially since not too long ago the finance czar himself was sitting with the FBR chairman in a press conference where the duo was trying to put the heat on! But then these are strange times where illusions rule the roost and the quarters that shamelessly reprimand tend to be the ones that need the most reprimanding. Also, this government by now in almost its third year reminds one of a legacy of creating an unparallel haze that leaves everyone dumbfounded: Is it performing or is it not?; Is it even there to govern or is it not?; Is it trying to stimulate the economy or simply content with a borrowing-based existence?; Is it democratic or is it satisfied with a hybrid decision-making model?; does it believe in the rule of law or it just rather remove all impediments to policy implementation drives?; Does it believe in freedom of speech or it rather curb it in the name of prudence and nationalism; the list goes on…
The greater irony is that it seems to be getting away with it despite all the uncertainty. The game plan being that if somehow the economic conditions improve through internal or external factors (who cares which ones), everything will be forgotten and all sins will automatically get washed. Perhaps the confidence stemming from the rude fact that like it or not, in modern-day society, the government still remains the most important actor in the economy and for this reason alone, it may not entirely be a counterproductive strategy to have a larger or an expanding footprint of the state. From education to medicine to income support programs to national defence, each year the government spends billions of rupees on direct service provision and transfers additional billions in direct payments and even if there is a fractional improvement in these spheres, it seems like a lot. Also, the government outlines its own performance by using the data from the statistical department that practically operates under it, whereas, the private sector, companies must report profits and losses and in essence their survival and growth are determined by consumers, capital markets, and the legal system. So, this raises the important question on how best to measure and report a government’s performance without the bias of relying on the figures that are primarily released by the government anyway? Also, within the government, how do we reward success and assign accountability for failures? Do modern advances in computation, data collection and analysis, and communications technology create new possibilities of holding government officials accountable on performance and delivery? This, as we know is the main concern here in Pakistan where governmental delivery, since its inception in 1947, has not only left a huge gap, but its overall management performance per se leaves with a lot to be desired! One of the main reasons on why developed countries tend to be developed is because over the years they have managed to successfully launch a series of initiatives to evaluate a government’s performance using independent tools and data. Their academia has also helped by devising new yardsticks and mechanisms – for example, of late Yale University has come us with its new ‘Democratic Innovation Program’, which brings together public sector managers from different sectors to help them learn from each-others experience, successes and failures and at the same time seek help from both, the experts and the private sector leaders on how to improve their performance. Additionally, the program can prove to be a sort of wake-up call for these bureaucrats on how to keep pace with private sector professionals. India today largely trains its bureaucracy by using such stints of exposing the Indian bureaucracy to private sector workplaces, so that they can come back more aware and abreast with the globalised corporate sector requirements to succeed.
The experiment seems to be bearing fruit, as I was recently told by an MNC Indian country head that the initiative is working so well that the private sector is seriously contemplating poaching from the government’s work pool! Yet, another good current-day example of learning through this model and in-turn improving state level management would be that of Bangladesh where professionals and private sector’s leading entrepreneurs have not only helped in teaching operational and delivery output efficiencies to a rather obsolete colonial-days’ bureaucracy, but at the same have also practically helped out by way of assuming responsibility in selected sectors and physically demonstrating on how it should be done. Pakistan could also benefit from undertaking such initiatives. More importantly, such interactions will help determine the real truths on government’s performance and hopefully lift Pakistan out of a vicious economic cycle that finds its economy in even a worst shape than before, every time an incumbent government makes way for a new one to come in.
Dr Kamal Monnoo
The writer is an entrepreneur and economic analyst. Email: kamal.monnoo@gmail.com