Economics

The 2008 edition of the Economic Freedom of the World report includes new research, examining the role of economic freedom in eliminating poverty with a particular focus on sub-Saharan Africa. Numerous studies have shown that countries with more economic freedom grow more rapidly and achieve higher per-capita income levels than those that are less free; therefore, it would seem that this growth should also help reduce poverty.

The World Health Organization claimed this week that “social injustice is killing people on a grand scale.” Its major report on the “Social Determinants of Health” concludes that social and economic inequality is a major global cause of disease and that only massive government intervention and redistribution of wealth can improve the health of the poor.  But, as with many prescriptions, the side effects would be worse than the disease.

Self-interest runs supreme. It is natural and logical. However, it is market that discovers and maintains a beautiful balance between clashing self-interests. Voluntary exchanges in the market where all the parties involved seek their own interest ultimately benefit all the parties. Otherwise, if any one fears to incur harm or loss, the exchange does not take place. This is how self-interest of one individual takes care of other individuals’ interest. It is in this perspective that the science of economics has been defined as the study of how and how not we fulfill our mutual needs.

There is a growing notion that rich countries should slash imports from poor countries whose antiquated factories are heavy carbon emitters: this eco-protectionism is in fact good old-fashioned protectionism and would hit the poor hardest.

The article argues that it was in 1968 that Pakistan Peoples Party snatched the slogan of Roti (Food), Kapra (Clothing) and Makaan (Shelter) from the Left. Even today it is harping the same tune, while the Left parties both in India and Pakistan are shifting from Poverty to Justice as the core demand.

This article discusses continuous price hikes of essential items in Pakistan and suggests a non-governmental way out highlighting responsible consumer behavior. The main cause of price-hikes is government itself. So how ridiculous it would be to plead before it or urge it to reduce or control prices. That is why the prescriptions suggested in this article are directly meant for us consumers.

The article argues that the notion of economic imperialism is but a myth. Indeed, it is our own being that we need to analyze and evaluate first. For any sane person, it is quite difficult to understand how the World Bank, the International Monetary Fund (IMF) and the Asian Development Bank (ADB) force us to be exploited! How the United States or the European Union or the G-7 or the World Trade Organization (WTO) compels us to become its stooges? How can they exploit us, unless some of us are not prepared to be their partners in such endeavors? If such exploitation is taking place, we have only ourselves to blame for it -- we should take the responsibility on our own shoulders rather than blaming others.

This article argues that present circumstances require that the Supreme Court of Pakistan must fulfill its legal and constitutional duty to protect not only the provisions but the spirit of the Constitution also. If it does not do so and does not pave the way for the rule of the right, we will be going to have another 60 or 160 years' rule of the might in Pakistan.

President General Musharraf and former prime ministers Benazir Bhutto and Nawaz Sharif all claim they should be given another chance. The question is whether any of our discredited potential leaders can see that the economic tools such as property rights (including intellectual property), lowering trade barriers and cutting corruption and bureaucracy, are their only hope of saving the country and staying in power.

Pakistan climbs the ladder of Economic Freedom scoring 6 points ranking 101 out of 141 countries; leaps big in Legal Structure and Security of Property Rights area by improving from 2.5 to 4.4; loses big in Access in Sound Money by sliding down from 6.4 to 6.0.