Governance Issues in Pakistan Suggested Action Strategy

Pakistan has been concerned for the improvement of its institutional and human capacity to improve the livelihoods of its citizens since its inception. This surge for improvement in the lifestyle of its citizens is assessed by the level of good governance in the country. Pakistan lags far behind in the field of governance, as the same is evident from the world reports on governance. Pakistan needs to review and revise its policies to earn effective and efficient governance practices. Law and order, energy, economy, political stability and national harmony are the key governance issues in Pakistan, which need comprehensive policy response. Pakistan has to overcome its shortcomings in the corruption control, accountability and mal administration through legal frameworks in support, to ensure the good governance. Pakistan can achieve the good governance by introducing integrity, coordination, cooperation among individuals as well as institutions, besides the economic sustainability and proper policy process implementation. 1 Mr. Muhammad Usman Asghar holds M.Phil Degree in Government and Public Policy. He is currently serving as Research Associate at Institute for Strategic Studies, Research and Analysis (ISSRA) National Defence University, Islamabad. Governance Issues in Pakistan: Suggested Action Strategy ISSRA Papers 2013 114  A recent research suggests that at the current rate of progress, it would take Zimbabwe 184 years to reach the institutional quality of Singapore as measured on the Kaufmann, Kraay, and Mastruzzi governance effectiveness index.1 Pakistan is confronted, at present, with a variety of governance issues, which have become a hindrance in the smooth and sustainable development of the country. World Economic Forum report ranks Pakistan at 124 among 144 countries on the index of competitiveness which is based on 12 pillars as follows: institutions (115) infrastructure (116) macroeconomic environment (139) health and primary education (117) higher education and training (124) goods market efficiency (97) labour market efficiency (130) financial market development (73) technological readiness (118) market size (30) business sophistication (78) and innovation (77).2 This portrays a pathetic picture of governance at national and international level. Pakistan needs to review its policies regarding the efficiency and effectiveness of governance at all levels with a serious concern for development and growth in the short term and long term. It is an established fact that poor governance leads to corruption in a number of ways.3 The concept 'Governance' needs to be defined first as there are numerous descriptions of the term governance. In the next step, it can be evaluated in achieving the desired goals at national level. This process involves these three actors in making political, administrative, economic, and social decisions that affect the public. Governance determines the lifestyle of a society, as how it will organizes itself to make and implement decisions (politics) mediate Mr. Muhammad Usman Asghar ISSRA Papers 2013 115 differences (public goods) and exercise legal rights and obligations (public administration) As a whole, governance encompasses the rules, institutions, and practices that set limits and provide incentives. It operates at every level of human enterprise in a country and its impact is also for all segments of society. It is the responsibility of the state that it creates an enabling political and legal environment whereas civil society facilitates political and social interaction. It is commonly perceived in Pakistan that the concept governance revolves around law and order situation in the country, whereas, it is a more comprehensive concept which involves managing the affairs of the state i.e. political, economic and social. This paper discusses governance issues in Pakistan. These issues are dependent on a few underlying legislative and administrative factors, which have contributed to mis governance or malgovernance in Pakistan. Then, this paper attempts to identify the action strategy to rectify the governance issues in Pakistan. This paper also explains the minimum action strategy needed for improvement of governance level in Pakistan as it lags far behind in world ranking of governance. According to a study, there are three basic elements of governance in Pakistan, which need core attention of the government, mentioned as decentralization, corruption and the social and economic costs of mal governance.4 The governance issue is not restricted to these three broad areas only. Other than these three core segments, governance reforms are inevitable particularly in the areas of fiscal (taxation) and monetary policy (money demand and supply) financial management (budget deficits) energy (circular debt management) law and order (ethnic and terrorist Governance Issues in Pakistan: Suggested Action Strategy ISSRA Papers 2013 116 conflicts) and devolution of power to local governments which are some of the major challenges for Pakistan. Despite the maximum number of legislative reforms by the last government, governance still poses a big challenge for both the bureaucracy and politicians. There are number of studies which indicate the weaknesses in tax policy and administration, as Pakistan's most serious challenges. After the 18th Amendment in the Constitution of Pakistan, provinces are given more autonomy, devolving the main responsibility for the delivery of education, health, water and sanitation, roads and transport, and agriculture services. This functional devolution naturally accompanied by remarkable political, fiscal and administrative changes at provincial and national levels.5 Despite all this, administrative decentralization remains the most contentious area, which still follows the path of pre partition era. Provinces are more autonomous in recruiting junior level staff, whereas, federal (central) services still remain under the umbrella of Central Superior Services (CSS) Conceptual Framework There is a gap theoretically between the interpretation and practice of the concept 'Governance' Explaining the very concept of governance, a scholar explained that the term had been derived from a Greek word, 'kubernao' which meant to steer, noting that the process of decision making and the process by which decisions were implemented was part and parcel of the term governance.6 In simple words, governance was supposed to be regarding the public institutions that would perform public affairs, manage public resources, and guarantee the realization of human rights and delivery to public goods on merit. Mr. Muhammad Usman Asghar ISSRA Papers 2013 117 An approach to public goods and their free and fair availability for common public will mean good governance that would be accomplished in a manner, if corruption does not exist besides due regard to the rule of law. In this backdrop, public policy scope and the use of institutional resources to manage society's problems and affairs matters a lot as knowing the problem is meant to have half the solution in the form of policy response.7 A study under the World Bank has identified six key governance indicators, by researchers namely Kaufmann Kraay Mastruzzi which appraised the governance in the world; voice and accountability, political stability and lack of violence/terrorism, government's effectiveness, regulatory quality, rule of law, and control of corruption.8 Basic Elements of Governance Governance is divided into five basic elements which help to evaluate the overall governance level. Accountability (Building Government Capacity) Participation (Participatory Development Process) Predictability (Legal Framework) Transparency (Information Openness) Governance is very commonly used term among the politicians and bureaucracy in Pakistan. It is necessary to elucidate this concept. A World Bank report mentions that there is no strong consensus around a single definition of governance or institutional quality. Some definitions are so broad that they cover almost anything, such as the definition of rules, enforcement mechanisms, and organizations, whereas, some narrowly focus on public sector management issues, including the definition proposed by the World Bank in 1992, as "the manner in which power is exercised in the Governance Issues in Pakistan: Suggested Action Strategy ISSRA Papers 2013 118 management of a country's economic and social resources for development".9 This study by World Bank further unfolds the governance ingredients, which are mentioned as (a) the process by which governments are selected, monitored and replaced; (b) the capacity of the government to effectively formulate and implement sound policies; and (c) the respect of citizens and the state for the institutions that govern economic and social interactions among them." This study calculates the world governance index which provides the world ranking of governance on six indicators. There are six indicators as shown in the figure below for Pakistan, taken from World Bank data set.10 The above figure shows six broad dimensions on which governance is ranked in the world. These dimensions had been identified by the World Bank researchers as helpful in determining the state of affairs in a country with regard to governance and good governance. The results of the governance index rate the countries, where top countries fall in the bracket of good governance and last ones in the bracket of bad governance countries. Mr. Muhammad Usman Asghar ISSRA Papers 2013 119 The foundations of 'good governance' rest on the principles of freedom of thought and speech, and from persecution and from hunger; equality all persons have the same rights; equity no person is discriminated against; justice; honesty and transparency; and accountability.11 Global trends have also indicated that a blizzard of management oriented reforms which had swept t