We need security, sincere leadership, and a rapidly growing economy if we are to survive. The difference between East Asian cultures and our own is a social contract between the state and the people. We need only look at India to see what happened when an authoritarian for authoritarianism sake comes to power. the last 50 years of our history should be proof enough that we need to sustain a healthy and amicable social contract with all our people, similar to what is done in Germany or Japan.
If we can sustain a 7% on average growth for the next 30 years, we can become a $2 Trillion economy, as projected by the world bank. Considering how underproductive our industries and agriculture are, we need to find a way to attract the investment to modernize and utilize our labor force, and then this number will not look unrealistic.
A lot of the growth also comes from consumer demand and government spending on social services. Productive use of tax money should be key. If you have an all power authoritarian, its leads to bloated and inefficient public sector that underperforms. We need to incentivize small and medium enterprises. Study the German model and how after WW2, German chancellor Konrad Adenauer reformed Germany into the economic power house it remains today.
In 2018/2019, Even now German’s Mittlestand companies were seeing 11% growth. The Germans know a thing or two about authoritarianism, and after how to grow without it.
We have a golden opportunity with CPEC, to reform ourselves. Our companies should be going over their books and putting more money into modernizing as well as training their workers for the future. If Pakistan can make the reforms that could enable it to grow at a minimum of 7% it will attract the FDI from foreign investors looking to make some money during this global downturn. We don’t need to be the best, just better then the alternative investment options.
we should be careful not to go down the same road India is going down today, the socioeconomic burden that will condemn that nation to for a generation of not longer. Look at all the authoritarians in Latin America and how their economies have stagnated.