Pakistan & Bangladesh Critical Thinkings Examples

Manufacturing exports in Pakistan has been given a lot of importance since 1960s with export bonus scheme introduced to give boost to export. However, the industrial policy is undisciplined leading to unnecessary rents and wastages.
Pakistan tried to create capitalist class by directing import rents to investments in industries. However, the focus shifted to liberalization which took away incentives to invest in industries. This was similar to the practices followed in many East Asian countries.
As a result, the exports lagged behind other Asian countries in 1980s, when it was well ahead in 1960s. The 1960 to 1990 period saw Pakistan fall behind East Asian countries due to various policy related issues, despite the growth being in double digits.
The major issues behind slowdown and stagnancy in Pakistan were related to neglect of equity and large regional disparities. Further, welfare programs were neglected and population skill development did not happen.
Also, the industry was not allowed to work in a fully liberalized manner and the banking system came under huge problem of non-performing loans. Policies were also discriminatory against agriculture, leading to further neglect of masses.
There was large level of price discrimination and unequal resource allocation as compared to fairly equitable distribution in East Asian countries. Interventions and subsidy policies were also misdirected and uneven, causing further inequity.
Growth of banking system and services was neglected and politicized, leading to inefficiencies and vulnerable systems. All this neglect manifested into very low growth during 1990 to 2010 period, when the country lagged far behind others in East Asia and India.
Bangladesh on the other hand, had concentrated on garment export and higher investment in human capital which improved social indicators. Service delivery and micro credit in the country helped the population incomes improve. As a result, overall development levels and social indicators of Bangladesh are much better than Pakistan, with majority population involved in garment export.
Sri Lanka had great human capital potential but issues regarding education, political fallout of internal conflict etc. resulted in erosion of development.