Economics Commons^™

Civil Service Reform In Pakistan: Capacity, Competence, Courage, And Compassion, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

My remarks this afternoon will be divided into three parts. First, I will dwell on the question: Why reform the Civil Service? What is the rationale and justification for reform? Second, if it is necessary what should be the end-result of the reform and what needs to be done to achieve this objective. Third, what should be the phasing and sequencing of various reforms if there is an agreement on the need, the objective and the content of the reforms. The overall governance structure is important because it is through this structure that economic policies are intermediated and translated into …

Delineating Roles Within The Sector, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

Dr. Husain went on to speak of the role of the microfinance industry in Pakistan where the distinction between the microfinance banks and microfinance institutions was deliberately designed to maintain a wedge between deposit mobilizers and social mobilizers to safeguard the poor against charlatans. The idea was to ensure that nobody but licensed deposit-takers could take money from the poor. Incidentally, he also mentioned that Pakistan was the first to make regulation for the sector. Bangladesh and India were against regulations at that stage as it was felt that regulation would hamper the growth of the sector. The State Bank …

Models Of Local Democracy Within A Federal System: The Experience Of Pakistan, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

I would like to divide my remarks this morning in three parts. First, I would like to focus on the reasons as to why local government system should be strengthened and made effective. Second, I would share the analysis of the Local Government system in Pakistan introduced in 2001 and finally, how can that system be improved and made more responsive to the needs of the common citizens

Asia And Global Governance, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

The invitation by the Group of 7 countries (G7) to 12 more countries from various regions of the world and the EU and transform themselves into a Group of 20 countries (G20) is indeed a welcome step. The economic power relations have changed considerably in the past decade or so and it was therefore natural that the global governance architecture should begin to reflect this new reality. The efforts of the G20 in tackling the 2008/9 global crisis did indeed reinforce the efficacy of this initiative.

The question, going forward, is to examine whether G20 could become an effective coordinating …

Shared Growth, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

A number of media persons and commentators were pooh-poohing Pakistan’s impressive growth record between 2002-08. The criticism against the previous government ranged from the insinuation of fudging the numbers and faking the growth rate to the other extreme where it was acknowledged that growth had indeed taken place but it was making the rich richer and the poor poorer. The same groups are now assailing the democratically elected government for a dismal showing on growth rate. It seems that we as a country can never get it right. You are damned if you do it and damned if you don’t …

Financial Development And Firms’ Growth In Textile Industry Of Pakistan: A Panel Data Analysis, Ijaz Hussain

Business Review

This discussion uses secondary data from “Balance Sheet Analysis (2000- 2009) of Joint Stock Companies Listed on the Karachi Stock Exchange published by Statistics Department of State Bank Of Pakistan” and covers a panel of 75 textile firms of textile industry in Pakistan . Findings of this study indicate that all explanatory variables included in our model have significant influence on firms’ growth. Lagged profitability and efficiency and financial development have statistically significant and positive impact on firms’ growth while financial leverage, size, risk, real cost of debt, energy crisis and abolishment of textile quota have negative impact. Acute energy …

Soziale Marktwirtschaft - Key To Economic Success Or Contradiction In Adiecto, Menno Aden

Business Review

German concept of Soziale Marktwirtschaft (social market economy, hereinafter SMW). A “system” would never explain everything. SMW therefore does not explain it all. But it is widely believed that SMW was the biggest single factor for the recovery of Germany after WW II and her performance ever since. It may be worthwhile to have a closer look at what SMW is about.

Firm Growth And Industrial Clusters: Implications For Latecomer Developing Countries, Babur Wasim Arif, Sajid Manzoor Asadi

Business Review

In developing countries, traditionally micro and small scale enterprises have remained present since ancient times. Certain regions excelled in production of specific items. The industrial clusters have grown in these regions spontaneously in response to the grown competition. The cluster formation process was informal as the governments in developing countries have not played an adequate role for cluster formation and enterprises’ networking. Due to absence of government leading role in clusters development , the majority of the industrial clusters in developing countries have not been able to enter from the initiation stage to the quality improvement stage with a very …

Impact Of Exchange Rate Depreciation On Domestic Output In Pakistan, Muhammad Afzal

Business Review

There is disagreement on the desirability of devaluation in the LDCs. Since the de-linking from USA dollar in January 1982, the Pakistan rupee has been losing its value vis-à-vis US dollar and other important currencies. The purpose of the paper was to see the response of domestic output to fiscal and monetary policies besides exchange rate and terms-of-trade. These policies have stable and long- run relationship with the domestic output. However, the impact of money supply and exchange rate is more robust than the other variables. Easy monetary policy has a favourable impact on domestic output. Fiscal discipline is the …

Political Economy Of Budget, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

The anticipation about national budget creates a lot of hype, particularly among the news channels, which have swollen in numbers and work in a highly competitive environment. However, by the time the actual budget is announced most of the information becomes already available in the public domain through trickles and dribs. The budget announcement, itself, comes as an anti-climax as it does not contain much that is not already known. Commentators and observers make superficial points about the realism of the budget targets and numbers. What is really important is to understand the dynamics and the context — particularly, the …

Budget 2011–2012: All Eyes On The Centre, But Provinces Matter Too, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

The budget announced yesterday did not contain any surprises and was, as usual, an accounting statement of the revenues and expenditures of the federal government.

In so far as the content of economic policies and institutional changes was concerned, it made four departures from the past.

First, the federal excise duties are going to be phased out in the next three years and a beginning has been made in this year’s budget. Second, the exemptions and concessions in the tax regime available for a wide variety of activities without any coherence are being abolished, minimising some of the distortions and …

Us Assistance : Differing Perceptions, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

Bilateral official economic assistance from developed to developing countries has always been loaded with political and foreign policy overtones of donors. In Pakistan, US economic aid has become a highly contentious issue due to the widely differing perceptions about its motivation and consequences among the donor and recipient countries. The debate about the future of this assistance has been reignited after Osama bin Laden’s capture by the US.

Message By Dr. Ishrat Husain, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

Dr. Ishrat Husain highlights entrepreneurship, innovation, and value addition as essential drivers for job creation and economic growth in Pakistan. He emphasizes the role of business education in developing responsible, proactive, and future-oriented leaders. The message outlines IBA's strategic vision to become a globally recognized business school through benchmarking, accreditation, and international partnerships. It also acknowledges the support of public and private stakeholders in advancing the institution’s long-term development goals.

Enabling Environment For Entrepreneurship, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

This morning I would like to divide my remarks in three parts. First, I would like to point out four mega trends – both global and national – which are going to shape the environment for business and enterprises in the future. Second, I would like to recount the main impediments that are constraining the growth of entrepreneurship in Pakistan. Finally, I would present the key elements of an enabling environment that would be conducive for the growth of entrepreneurship.

Bridging Gap Between Academia & Business, Manager Today

Faculty Research - Newspaper and Magazine Articles

Dr. Ishrat Husain took over as the Dean and Director of the oldest Business school outside North America in March 2008. Before that he served as the Chairman, National Commission with the status of Federal Minister for two years reporting directly to the President and Prime Minister of Pakistan. The Commission produced a two volume report on governance reforms in Pakistan.

Economic Growth And Intellectual Property Rights, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

For more than two decades, the economies of different countries have grown at a pace that greatly exceeds anything previously known in the long sweep of human history. What distinguishes this period from the earlier one is what we have come to know is the knowledge economy. This reflects a very real transformation in our understanding of the factors underlying long-run economic development. In the 1950s economists discovered that there was a huge gap in their explanations of economic growth in terms of capital accumulation. Since then, other factors such as human capital, technological progress, internal organization and managerial practices …

Long-Term Economic Direction And Consistency Of Economic Policies, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

China, India and Brazil are three emerging countries in different parts of the globe with differences in culture, history and politics but have done extremely well in terms of economic development in the recent years. Pakistan on the other hand with similar culture, institutions and history as India but different political evolution has not done so well on a comparable basis. Pakistan and India have shared the same history, culture and politics for many centuries. Politicians in both these countries behave in not too different ways and are known for their penchant for self aggrandizement and their own interest maximization. …

2009 Pay And Pension Commission Report, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

The 2009 Pay and Pension Commission (PPC) Report is a major departure from the previous reports in so far as it examines compensation reforms as part of the overall reforms of the whole value china of human resource policies of the government. The Report’s findings are based on the basic premise that the channel of economic growth filtering down effectively to the poor and less privileged is a function of public sector governance – policy making, regulation, implementation of projects and programs, and delivery of basic services. Government has therefore, a critical role to play not by controlling the commanding …

Good Governance For Dummies, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

President Asif Ali Zardari administered oath of office to a 22-person federal cabinet last Friday. Almost three years in, his party’s government says this has been done to address concerns about “good governance.” This is a good start, but there are other things that he and Prime Minister Yousaf Raza Gilani can and should do.

First, we need to progress toward democratic governance. The Election Commission of Pakistan must be neutral and empowered. Political parties must run cleanly and democratically: they must hold regular intra-party elections, submit their audited accounts and statements of assets of members, and adhere strictly to …

Disconnects & Mismatches, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

Popular discourse pertaining to Pakistan`s economic problems usually takes place at a highly superficial level, looking merely at symptoms. It is essential to go beyond generalisations and diagnose the real sources of the malignancy affecting the economy.

Several disconnects and mismatches of various kinds are sapping the economy`s energy and vitality. These need to be fixed as part of a medium-term consensus agenda. First, unlike the past where the rural population lived under miserable conditions, the increase in commodity prices has transferred additional purchasing power worth about Rs450-500bn from the urban economy to the rural. Rural incomes are exempt from …

Drivers Of Globalization, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

Having listened to distinguished luminaries such as Prof Ishwar Dayal there is hardly very much I can add or contribute to the discourse initiated this morning. But as a student of economics I know that I should stick to my comparative advantage. What I therefore propose to do this afternoon is to spell out what I consider are the main Drivers of Globalization. I would then argue that unless we understand those Drivers of Globalization we cannot have a picture of what the firms or business - individually and collectively - are going to look like in the future.

The Inadequacy Of Our Economic Agenda, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

The government and opposition parties deserve the nation’s gratitude for sitting together to evolve a national consensus on finding solutions to the economic problems facing the country. My research suggests that the setting of long-term economic direction, continuity and consistency of economic policies, as well as the predictability and transparency of decision-making, are important factors that boost investor confidence and stimulate economic growth. Changes in political regimes, under those conditions, do not make any significant negative impact.

The present efforts by the federal government’s economic team to seriously discuss a 10-point economic agenda are highly commendable. But in my view, …

آنکھیں تو کھول : ایسے معاشی ترقی کیلئے تحریک بھی بن سکتے ہیں, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

The article discusses the economic impact of the 2010 floods in Pakistan, including damage to infrastructure, agriculture, and livelihoods, and calls for inclusive economic development strategies that involve international partners, government, and local communities.

Pakistan’S Economy Post-Flood, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

Pakistan had been suffering from three serious external shocks before the recent devastation to human lives, property, infrastructure and social services by the floods struck the country in August-September 2010. Pakistan was engaged in fighting the militants and terrorists since the U.S. initiated the war in Afghanistan in 2001. Forty three billion dollars of losses have been incurred so far in the fight against terror and the country has been virtually shut out as a destination for investment, capital flows, tourism and trade. Thirty thousand civilians and six thousand Army, Para-military and Police officials have lost their lives. The Second …

International Financial Reporting Standards: A Cautionary Note For Emerging Economies, Khursheed Omer, Darshan Wadhwa

Business Review

Long before the present economic crisis unfolded, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) had been working to achieve harmonization in accounting and financial reporting standards across the globe. Now that the world economic community has become more integrated, cross border flow of capital has gained unprecedented momentum and steps are underway to achieve this goal as early as possible. Initial efforts to harmonize local accounting principles and practices with those followed in developed economies were generally aimed at facilitating foreign multinationals operating in other countries. The desired goal of harmonization now ought to …

Technical, Allocative And Economic Efficiencies In Sugarcane Production In Pakistan: A Non-Parametric Approach, Heman D. Lohano, Adnan Nazir, Ali M. Khushk

Business Review

The objective of this paper is to measure the technical, allocative and economic efficiencies of sugarcane farms in Pakistan. These efficiencies are measured by data envelopment analysis method using the farm level data collected from 333 sugarcane growers of Pakistan in 2008. The results show that the average technical efficiency of the sugarcane farms is 75 percent, the average allocative efficiency is 83 percent, and the average cost efficiency is 62 percent. The results indicate that the sugarcane farms of Pakistan can reduce the costs of production by 38 percent to produce the same level of output by using the …

Innovation, Creativity, And Entrepreneurship, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

I would like to focus my remarks this morning by drawing upon the research that shows how organizations have led change and renewal through innovation and creativity. I believe that the topic “Intrapreneurship”, i.e. entrepreneurial behavior within an organization is quite distinct and vast and requires separate discussion and discourse. I would therefore draw upon liberally from the seminal work of Michael Tushman of Columbia Graduate Business School and Charles O’Reilly on how innovation and creativity have found their way into mid to large Corporations. The biggest challenge facing the well established and well entrenched Corporations is: How can they …

East And Central Europe: The Impact Of The 2008–09 Global Financial Crisis, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

My remarks this morning will be focused on the question whether the European Union (EU) membership has helped or hindered the East and Central European (ECE) countries in coping with the recent global financial crisis. Before I delve into this question, let me suggest that the economic structure and institutions that the ECE countries had inherited from the Soviet dominated political relationship in the 1990s were quite different from the well established economics of the Western European Countries (WECs). The decade of 1990s was spent by the ECE countries in privatizing state-owned enterprises and banks, establishing autonomous central banks and …

Managing Government Business-Relations In Pakistan, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

I wish to thank the Management Association of Pakistan for inviting me this afternoon to attend this ceremony. As I am privileged to address a highly distinguished audience I would like to share my thoughts on a subject about which there is very little open debate and discourse. The topic I have chosen this afternoon “Managing Government Business – Relations in Pakistan” is quite critical to all the stakeholders in the economy of Pakistan. In almost all nation-states of the world, private businesses have to co-exist with governments. The balance between the two in economic space varies a lot. On …

Private Sector And Economic Growth, Ishrat Hussain Dr.

Faculty Research - Talks, Speeches, & Discourse

Despite spectacular achievements on the economic front: achieving growth rate of 6 percent annually for over four decades, tripling its per capita income and drastically declining the incidence of poverty from almost 50 percent of the population to less than 20 percent by the late eighties although it has resurged to 34 percent by the late nineties. However, we are still a poor and underdeveloped country and the benefits of this progress have not been shared universally.