A capable state |
FOR right-wingers, the best state is one that shrinks its role in economic matters to a minimum — even in those areas that may indirectly affect them, for example, environment and social policy. Such neoliberal views dominate economic policy and debates globally. In Pakistan, their hold on actual policy is limited. Policy is always led by those who follow predatory crony capitalism. But the shrillest critique of such policies comes from IMF-type neoliberals.
States that have progressed in modern history displayed neither predatory nor neoliberal traits. In predatory states, officials adopt policies that provide largesse to their crony capitalists in return for kickbacks. State policies inhibit long-term equitable progress. Such states can’t even achieve the two most basic goals of progress: economic stability and durable growth. They largely benefit predatory elites.
The neoliberal state is a different beast. The state largely follows on delivering macroeconomic stability, rule of law and security while leaving economic development largely to the private sector. Predatory crony ties are replaced by policies that achieve stability and growth but ignore the other two key goals of progress — equity and sustainability.........