Naveed Pirzada                                                                           1

    The State of Pakistan and ...
Naveed Pirzada                                                                                2

neocolonialism in the sh...
Naveed Pirzada                                                                            3

forces, as core capitalist c...
Naveed Pirzada                                                                            4

overall socio-economic syste...
Naveed Pirzada                                                                               5

(1974) argues that “[n]ot...
Naveed Pirzada                                                                             6

dominant classes. Marx’s se...
Naveed Pirzada                                                                             7

state argues that a capital...
Naveed Pirzada                                                                                            8

Naveed Pirzada                                                                                             9

the British...
Naveed Pirzada                                                                            10

landed aristocracy to share...
Naveed Pirzada                                                                           11

government of General Ayub K...
Naveed Pirzada                                                                             12

        bourgeoisie from w...
Naveed Pirzada                                                                            13

state with both the global ...
Naveed Pirzada                                                                             14

       nationalization of ...
Naveed Pirzada                                                                          15

socialism. On the contrary, i...
Naveed Pirzada                                                                                           16

one of the m...
Naveed Pirzada                                                                       17

      Amin, Samir. (1993). Socia...
Naveed Pirzada                                                                        18

      Jalal, Ayesha, (1990) The...
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  1. 1. Naveed Pirzada 1 The State of Pakistan and the World Economic System: A Path towards Underdevelopment Introduction The intention of this essay is to explore how the interplay of the world economic system and the Pakistani state makes Pakistan a periphery of the world economic system and thereby contributes to its own underdevelopment as a subsidiary of the world economic system. The peripherality of Pakistan can be explained primarily by associated with the role of the world economic system based on dependency theory which states that the underdeveloped situation of any country of the Third World is due to the exploitative nature of one global economic system. The dependent relationship is best defined as a “conditioning situation in which the economies of one group of countries are conditioned by the development and expansion of others” (Dos Santos, 1970:231). To define the peripherality of Pakistan is to show the ways by which the penetration of core countries’ capital into the economy of Pakistan conditions its local economy, class structure and whole social structure. In the words of Schuurman (1993) this “penetration…alienated the periphery from itself and made it dependent on the core…” (p.5). This necessitates discussing dependency theory in relation to the world econo mic system in order to understand Pakistan’s peripherality as a Third World country. Dependency theory primarily focuses on the unilateral relation between periphery and a core country, though the world economic system is a multinational structure of capitalist relations in the shape of unrestricted roaming of capital around the globe. The peripherality of Pakistan has roots in the colonial period (before 1947), and therefore the political and economic relationship between colonial India and the then British government could be explained by dependency theory — a unilateral one-to-one relation between periphery and the core country. However, the post-colonial period is marked by the imprints of
  2. 2. Naveed Pirzada 2 neocolonialism in the shape of global neo- liberal policies of the world’s wealthy nations and multi- national corporations. It is, therefore, clear, that right from its creation, Pakistan has fallen prey to the exploitative world economic system, or global neo- liberalism, and has been rendered dependent on the world economic system as a whole. Since its inception, the Pakistani state offered itself to global economic powers as a pawn to accomplish the neo-liberal agenda. First, I will analyze the Pakistani state in light of Marxist analysis of the state by which it has assumed greater autonomy — as compared to the “relative autonomy” of the capitalist state — because the mode of production in Pakistan is indeterminate and no single class has sway in power relations (Gold et al., 1975 & Trimberger, 1977). Second, this essay will discuss the role of the strong state bureaucracy of Pakistan as inherited from the colonial era. This “overdeveloped” (Alavi, 1972) bureaucracy was created by the British colonial government to control all the indigenous classes of India. Amin (1976) argues this inherited bureaucracy, stems from the petty bourgeoisie and has monopoly over modern education and technical skills. Third, the role of state capitalism will be explored and analyzed in the context of Pakistan which gives it a shape of an entrepreneurial state. By this, I mean that in the wake of local capital’s weakness, Pakistan as a state assumes the main role of a developer of infrastructure and acts as the subsidiary of multinational corporations and core capitalist countries. It is therefore clear that Pakistan as a peripheral state of the world economic system is a creature of complex social and economic pressures. These pressures owe the ir origin to internal and external pressures and to historical and contemporary processes as well. In conclusion, it will be argued that Pakistan, as a Third World and peripheral state of world economic system, plays a very important role in its own underdevelopment in partnership with world such economic
  3. 3. Naveed Pirzada 3 forces, as core capitalist countries, international financial institutions and multi- national corporations. I shall begin with the theoretical orientation of my essay. From Colonialism to Post -Colonialism: Theoretical Orientation The main objective of this essay is to explore the interplay between the world economic system and the states of the Third World, out of which arises the underdevelopment of the Third World country — in this case, Pakistan. The present era of theorizing about Third World development is overwhelmed by the theories of dependency and other neo-Marxist theories. I use an integrative approach to investigate and explore the causes of the underdevelopment of Pakistan. This integrative approach will treat the interplay of the world economic system and the state, which reinforce each other increasing the underdevelopment of Pakistan as a country at the periphery of the world economic system. I regard both these factors (the world economic system and state) as the central explanatory variables which lead Pakistan towards more dependency vis- à-vis the world economic system. The state of Pakistan submits to the “subordination of external (usually aggressive) relations to the logic of…accumulation” (Amin, 1993:81). Amin (1993) further argues regarding the ‘recompradorization’ as follows: …the peripheral state (which like any state fulfils the functions of maintaining internal class domination) does not control local accumulation. It is – objectively – the instrument of the ‘adjustment’ of the local society to the demands of worldwide accumulatio n, and how it evolves is mainly determined by how the centre evolves. Here, the state is by nature comprador (p.81). Dependency theory is clear that the processes of underdevelopment in Third World countries are only to be understood in relation to the development processes in core capitalist countries and also in relation to the policies of international economic bodies. Penetration of capital from core countries into the economy of a country at the periphery has a strong conditioning effect on the
  4. 4. Naveed Pirzada 4 overall socio-economic system of the dependent peripheral country. Schuurman (1993) defines dependency as a “penetration of…capital, and consumption ideology that alienated the periphery from itself and made it dependent on the core, led to large scale marginalization and the non- realisation of development potential” (p.5). At this point, it is imperative to analyze dependency theory and the world economic system in two different historical perspectives: colonialism and post-colonialism. I emphasize that dependency theory argues that during the colonial period there was a unilateral relationship between the colonial core country and the colonized country at the periphery of the world system. Before 1947, India was a single country, the predecessor to Pakistan, and had a unilateral colonial relationship with the British. In other words, the colonial British had self- granted sole proprietary rights over the dominion of India and all economic benefits from all sources of revenue generation went to the foreign imperial bourgeoisie. These propriety rights granted power to British capital to penetrate into dependent colonial India and transfer surplus back to the British as colonial power. To achieve these objectives, the British colonial government of India equipped itself with apparatuses and mechanisms which enabled it to subordinate the natives through direct rule. This was a case of a dependent unilateral relationship between the colonial British and colonized India, manifested in the fact that Indian evolution was determined by the evolution of the British as a core capitalist country. On the other hand, the dependency in neo-colonialism has a multinational structure of global neo-liberal relations and so the evolution of the country at the periphery of world economic system depends on the movement patterns and cycles of global capital. It can be argued that it is the world economic system that shapes and disadvantages the society and economy of the peripheral country and therefore integrates it into a world economy. Amin
  5. 5. Naveed Pirzada 5 (1974) argues that “[n]ot a single concrete socio-economic formation of our time can be understood except as part of this world system” (p.257). Consequently, the happenings in the country at the periphery can be explained in the light of the patterns and cycles of movement of global capital and the overall objectives of unrestricted capital moving around the globe. Therefore, the processes of underdevelopment in the countries of the Third World necessarily emanate from their dependency on the core of the world economic system. By this, I mean the core’s capital is not just outside of the peripheral country, but is embedded in its economy and negative ly affecting its socio-economic conditions. Some dependency theorists think that “[e]verything is connected to everything else, but how and why, often remains obscure” (O’Brien, 1975:23) so the notion of dependency may not be used as a meta- narrative to explain all processes of underdevelopment in the less developed countries (Lall, 1975). These theorists argue that the theoretical tendency to blame everything negative on dependency “deprives local histories of their integrity and specificity, thereby making local actors little more than the pawns of outside forces” (Smith, 1979:257). I, nevertheless, argue that in the particular case of Pakistan, the state managers in the shape of the civil and military bureaucracy, the power- hungry politicians and the dominant classes are no more than the pawns of outside forces. However, some anti-systemic revolutionary forces, despite their limited resources, are present in the shape of civil society, and thus do have their integrity and specificity in the development of Pakistan at the periphery of the world economic system. It is pertinent to discuss classical Marxist theory which terms the modern state, a committee to manage the affairs of bourgeoisie that oppresses subordinate classes and (Miliband, 1965). Miliband (1965) argues that this is the classical Marxist view of the state. He further argues that the state is independent and superior to all social classes, not just an instrument of
  6. 6. Naveed Pirzada 6 dominant classes. Marx’s secondary view of the state emanates from his analysis of the Bonapartist State and, in this regard, Miliband (1965) argues that for Marx, the Bonapartist State, despite its political independence from any given class, continues the economic and social protection of the dominant classes. However, in post-colonial countries, such as Pakistan, the relationship between the state and the macro-economic structure is much more complicated than in the Bonapartist State. It has its own unique historical, political, economical and social trajectories and necessitates theorizing distinctively. In post-colonial countries of the Third World there is a variety of classes which could be termed ruling classes, with a very complex web of simultaneous inclusion and exclusion tendencies for each other. Mostly, the economies of the post-colonia l peripheral countries consist of more than one mode of production and, consequently, have more than one dominant socio- economic classes, such as landed aristocracy, local bourgeoisie and neo-colonial bourgeoisie. The different dominant modes of production in the post-colonial countries could also be distinguished as pre-capitalist, capitalist and transitional. Therefore, in the case of Pakistan the pre-capitalist mode of economy consists of landed aristocracy and could be termed as a mode of production based on feudal relationships. The capitalist mode of production in Pakistan is visible only in the urban centers of the country, and consists of local and neo-colonial bourgeoisie, and the transitional mode of production is one in which collaboration occurs between these different economies despite their divergent economic interests. Alavi (1972) puts this as follows: …that the state in the post-colonial society is not the instrument of a single class. It is relatively autonomous and it mediates between the competing interests of the three propertied classes, namely the metropolitan bourgeoisies, the indigenous bourgeoisie and the landed class” (p.62). I agree with how Alavi (1972) distinguishes the dominant classes in a post-colonial state, but I disagree with his concept of relative autonomy of the post-colonial state. Marxian analys is of the
  7. 7. Naveed Pirzada 7 state argues that a capitalist state has a certain degree of relative autonomy and is therefore considered relatively free from general control and interest of the capitalist class, but not free from its general interests. Gold et al. (1975) argues that a relatively autonomous state is the cause of cohesion for the bourgeois class and facilitates its dominance over all sections of the society. This makes the relative autonomy a distinct characteristic of a bourgeoisie state to safeguard the interest of the capitalist class. In the post-colonial countries of the Third World, such as Pakistan, several factors lead its state towards greater autonomy as opposed to Alavi’s (1972) relative autonomy in post- colonial countries. This greater autonomy of the state is the by-product of the several modes of production that compete with each other and thus survive simultaneously. Marxist analysts argue that the state can achieve greater autonomy when the mode of production is indeterminate and no single class has sway in power relations (Gold., et al, 1975; Trimberger, 1977). Alavi’s (1972) three propertied classes — metropolitan bourgeoisie s, local bourgeoisie and landed class — of a post-colonial state is the manifestation of the fact that the mode of the production is indeterminate. He also discusses Pakistan as a post-colonial state and refers to bureaucratic- military oligarchy as in the dominant position in the state and his reference to the military “coup d` etat of October 1958” (Alavi, 1972:65) manifests the greater autonomy the Pakistani state has assumed in the wake of indeterminate mode of production. Trimberger (1977) argues in the context of Japanese economic transition to capitalism that it has achieved “dynamic autonomy” and has actively promoted the capitalist mode of production to compete with other modes of production. The same “dynamic autonomy”, which is a greater autonomy, has been achieved by the state apparatuses of Pakistan to compete with the other modes of production.
  8. 8. Naveed Pirzada 8 The specificity of the colonial and, thereafter, post-colonial situation developed a web of complex social relationships between the state and the social classes. In Western societies, the creation of the nation state owes its origin to the indigenous capitalist class. This indigenous capitalist class helped create the necessary governmental institutions and define the parameters of law in order to protect the interests of the capitalist class. These institutions, procedures and analyses created by the capitalist class are later on known as the apparatuses of ‘governmentality’ 1 (Foucault, 1991). However, the processes of relationship between the state and the heterogeneity of the dominant social classes in the post-colonial societies are very complex in nature and quite different from the evolution of the nation state in the West. In the following section, I shall discuss Pakistan as a post-colonial state with reference to its heterogeneity of the dominant social classes. Pakistan: From Colony to Post-Colony The British left the Indian subcontinent in 1947, and in the wake of the Indian partition, Pakistan was created as an independent nation, but with the solid imprints of the colonial history in the shape of an ‘overdeveloped’ (Alavi, 1972) bureaucratic- military structure. Soon after its independence, Pakistan plunged into a trap of global neo-colonialism as a post-colonial state. Pakistan as a state has always played a very active role, enabling global neo-colonialism to hold its foot firmly on Pakistani soil. As discussed earlier, the colonial state facilitates the penetration of a colonial country’s capital directly. This role was continued after the so-called independence in the shape of allowing neo-colonialism forces to penetrate into the country’s economic structure. This role only changed the shape of dependency from unilateral to multilateral; from 1 Foucault (1991) says that ‘governmentality’ is “[t]he ensemble formed by the institutions, procedures, analyses and reflections, the calculations and tactics that allow the exercise of this very specific albeit complex form of power”
  9. 9. Naveed Pirzada 9 the British as a single colonial country, to the plethora of countries, international monetary organizations and the multi- national corporations. Since its creation, the dearth of a local entrepreneur class in Pakistan created a vacuum allowing the global neo-colonialist bourgeoisie to take over. This phenomenon was very common to almost all post-colonial states because “it is not established by an ascendant native bourgeoisie but instead by a foreign imperialist bourgeoisie” (Alavi, 172:61). A very small number of non-Muslim industrial/ merchant classes existed and migrated to India before the Indian sub-continent’s partition2 . Nevertheless, the direct control of the foreign imperialist bourgeoisie was ended at the time of Indian partition, but by no means had its domination become history. This foreign imperial class was later on known as the neo-colonialist class and surfaced in the economy of Pakistan. As a consequence of the global neo-capitalist class’s economic hegemony in Pakistan, the weaker indigenous bourgeoisie came to form an alliance with it as an inferior partner. Therefore, the alliance of local and neo-colonialist bourgeoisie very significantly shaped their relationship with the Pakistani state. This alliance became a triple alliance when the landed aristocracy jumped in and sought its share of money- making from the local and neo-colonial bourgeoisie. In areas that comprise today’s Pakistan, agriculture has been the predominant lifestyle due to the increased land for cultivation through irrigation. This settled agrarian based lifestyle and increased land for cultivation gave birth to large land holdings and this evolution eventually emerged in the shape of a society based on feudal relations. The British colonial government in the Indian subcontinent devised a system of political and administrative control by securing the feudal interests of the local feudal lords. This system worked for the British as well for the local 2 In the wake of the Indian partition there was a mass migration between India and Pakistan, because of the partition’s religious characteristics. Muslims of India migrated to Pakistan, and Hindus of Pakistan (especially from Sindh province) migrated to India, because of the fear of victimization on the basis of religion.
  10. 10. Naveed Pirzada 10 landed aristocracy to share the power over the local people (Ansari, 1992). These big land owners remain very powerful due to their political power base in the shape of land and people, and that increased their socio-economic position to bargain with other two emerging classes — the local and neo-colonial bourgeoisie. Thus, in the backdrop of this tripartite economic power sharing, there emerged a Pakistani state which “mediates between the competing interests of the three propertied classes, namely the metropolitan bourgeoisie, the indigenous bourgeoisie and the landed classes” (Alavi, 1972:62). This conglomeration of the class base in Pakistan leads its macro economic structure to the definition of indetermination. As stated earlier, that economies of the post-colonial peripheral countries have indeterminate modes of production due to the multi- mode production system (pre-capitalist, capitalist and transitional). In this way, no single economic class has sway in power relations (Gold et al., 1975 & Trimberger, 1977). This indeterminacy in terms of the mode of production leads the post-colonial Pakistan state to greater autonomy as opposed to relative autonomy of capitalist state. The greater autonomy of the Pakistani state is evident from the dominance of military and civil bureaucracy, since mid-1950s. The first martial law was imposed in Pakistan in the year of 1958, and thus stage was set to accommodate the Western neo-capitalism to enter into Pakistan. Jalal (1990) puts this situation as follows: It was during the first decade of independence that an interplay of domestic, regional and international factors saw the civil bureaucracy and the army gradually registering their dominance over [political] parties and politicians within the evolving structure of the state (p.295)…there were strong domestic, regional and international compulsion for the bureaucratic military axis want to depoliticize Pakistani society (p.301). I argue that these international factors or compulsions were the forces of global neo-colonialism making it a dependent society. The refore, the garrison state became an ideal state structure for the global neo-liberal powers to make their power base stronger in Pakistan. During the first military
  11. 11. Naveed Pirzada 11 government of General Ayub Khan (1958-1969) there were no means to restrict the operations of the global neo- liberal capital which rendered local capital weaker vis-à-vis its international counterpart. If we briefly look at the political history of Pakistan, it is evident that much of the period is taken up by direct military rule and the rest is quasi or procedural democracies. From 1971 to 1977 was the only epoch in the political history of Pakistan when first popularly elected Prime Minister of Pakistan Z.A. Bhutto challenged the power base of neo-liberal capital in Pakistan and tried to dismantle the power structure of landed aristocracy through land reforms (Esposito, 1974; Gustafson, 1976). A a consequence, he was hanged by another military ruler s General Zia in 1979. From 1985 to 1999 Pakistan witnessed the emergence of quasi-procedural or controlled democracies under the tutelage of the Pakistani military. In 1999, the present ruler of Pakistan General Parvez Musharaf, overthrew the controlled democracy of Nawaz Sharif, when he attempted to assert an all powerful role of the Pakistani army. The macro economic history of Pakistan is dominated by the nexus of three propertied classes, as discussed above, under the auspices of the military junt a. However, the military bureaucracy, despite differences, has sought help from the ‘overdeveloped’ (Alavi, 1972) civil bureaucracy. The notion of ‘overdeveloped’ refers to the state machinery developed by the British colonial government/bourgeoisie to control all the indigenous social classes. The civil bureaucracy under colonial rule was also known as a steel frame of the British government. Ziemann and Lazendorfer (1977) argue that after independence the post-colonial countries inherit these ‘overdeveloped’ state apparatuses and its institutionalized practices to regulate and control the local bourgeoisie. Amin (1976) puts this as follows: The bureaucracy inherits that prestige of state power that is traditional in non- Western societies and is strengthened by the experience of the colonial administration power, which seemed absolute, and by the fact that the petty
  12. 12. Naveed Pirzada 12 bourgeoisie from which this bureaucracy stems has a monopoly of modern education and technical skills (pp.345-346). In post-colonial Pakistan, however, the nexus of the military and civil bureaucracies emerged as a viable and effective apparatus of the garrison state to further the cause of the tripartite alliance of the three propertied classes of Pakistan. Alavi (1972) calls this nexus a military-bureaucratic oligarchy and argues that besides performing a role of mediation between these three dominant economic classes, it “assumes also a new and relatively autonomous economic role, which is not paralleled in the classical bourgeoisie state” (Alavi, 1972:62). The civil bureaucracy of Pakistan, as a legacy from colonial government, reproduces itself in the post-colonial Pakistan to maintain the hyper-authoritarian mentalities of the Pakistani state. This partly happened because the democratic forces were explicitly thrown out of the political arena and civil society was also refrained to assert its power out of the state. This military-bureaucratic oligarchy vested itself with extreme administrative powers, because in Pakistani state discourses the y were termed as highly efficient and equipped with the administrative acumen to implement and oversee the country’s development process. The local or indigenous bourgeoisie has failed to assert its active and productive role in the economy and paved the way for the greater autonomy of the Pakistani state to assert its own entrepreneurship. Simultaneously, corruption was heightened in the so-called military-bureaucratic oligarchy and enabled these civil and military bureaucrats to enter in the arena of entrepreneurship, either directly or indirectly through others. However, the Pakistani state’s role in entrepreneurship is a form of a new dependent development in the periphery of the world capitalist economy, which helped the Pakistani state to assert its strength even more vigorously with the help of the ‘overdeveloped’ state machinery in the shape of a so-called military-bureaucratic oligarchy. The main characteristic of the dependent development is a collaborative functioning of the Pakistani
  13. 13. Naveed Pirzada 13 state with both the global neo- imperialist class, and local capital and the landed class. Local capital is gaining visibility in Pakistan due to the capital generated through heightened corruption of the military-bureaucratic oligarchy and its investment in the business and industry. The interaction of the Pakistani state with the landed aristocracy is in the shape of tax relief and forthcoming corporate farming. The largest beneficiary of this collaboration is international capital to gain maximum privileges from the Pakistani state. Evans (1979) calls it a ‘triple alliance’, because dependent development in the periphery of the world capitalist system is between the peripheral state and both international and local capitalist classes. In the case of Pakistan, I call it a quadruple alliance, because dependent development in Pakistan is a collaborative strategy among the peripheral state, both international and local capitalist classes, and the landed class. Since the local /indigenous capitalist class is weak in terms of its operational capabilities, the post-colonial Pakistani state started assuming the role of problem solver through building an infrastructure, devising an institutional base to favor international monetary organizations, and bargaining with transnational corporations and Western core capitalist countries. The state of Pakistan has practically moved into spheres which traditionally are the domain of private sector. The Fuaji Foundation is the example of the role of the Pakistani state as an entrepreneur. To quote Jalal (1995): [The Fauji Foundation] run by the army has eight manufacturing units, including sugar, fertilizers, cereals, liquid gas, metals, a gas field as well as transportation companies, schools, hospitals and investment in defe nse production industries (p.143). The entrepreneur ial role of the Pakistani state is also manifested from Burki’s (1999) following observations regarding the Pakistan’s nationalization program:
  14. 14. Naveed Pirzada 14 nationalization of a number of economic enterprises in the sector of industry, finance, trade, and communication… [f]or political reasons, the public sector received a much larger share of investment—more than 60 percent—and much greater attention from the policymakers (p.106). However, Burki (1999) argues that the Pakistani state only entered those areas of entrepreneurship in which private entrepreneurs were reluctant to invest. By disagreeing with him, I argue that the local private entrepreneur was simply discouraged from rising as a powerful class, because it would have entailed a new- liberal democracy in Pakistan with a free political culture and civil liberties at the helm of the affairs. The free political culture and the increase in civil liberties in the form of a powerful civil society were seen as a threat to the free intervention of global neo-capital in the economic activities of Pakistan. Burki (1999) himself mentioned that in the first decade of the creation of Pakistan, the Ford Foundation and the Harvard advisers in Pakistan contended that economic planning “had to be done by the Pakistanis with the assistance of foreign advisers” (p.113). This clearly shows how the state of Pakistan became a captive to the global neo-capitalist class and thus, assumed the role of entrepreneurship at the state level primarily to appease the neo-colonialism and the military-bureaucratic oligarchy. The secondary beneficiary of this conglomeration of the international and local exploitative sections is the landed aristocracy who also secured benefits out of this arrangement. Despite their support of the Pakistani state and global neo-colonialism, the local capitalist class is on the lowest position on the beneficiaries of the “state capitalism” or “entrepreneurial state” (Petras, 1976; Sobhan, 1979). In other words, the local bourgeoisie has assumed the status of an appendage to the post-colonial Pakistani state and also to the neo-capitalist class, which is fully operationalized in Pakistan. Conclusion The greater autonomous Pakistani state in the shape of state capitalism, however, is by no means a step towards transformation of social relations of production from capitalism to
  15. 15. Naveed Pirzada 15 socialism. On the contrary, it is an attempt on the part of the Pakistani state to pave the way for the smooth functioning of global neo-colonial forces. The concentration of power in the Pakistani state could be defined as a precondition to dependent underdevelopment. Evans (1979) argues in the Brazilian context that “the entire success of the dependent development is predicated on multinationals willing to invest, international bankers willing to extend credit” (p.290), but in Pakistan’s context, dependency on the world economic system is creating a sheer dependent underdevelopment. However, it is important to place the state of Pakistan in the center of the analysis and thus class relationships and the processes of accumulation and distribution of capital ought to be defined as mediated by the state. The basic proposition of my essay suggests that world economic system and the state apparatuses of Pakistan interplay to influence the process of capital accumulation to the benefit of each other. This essay provides an integrative analysis which regards the underdevelopment processes in Pakistan as a logical outcome of the interplay of the world economic system and the state of Pakistan. The penetration of global neo- liberal capital in the economy of Pakistan not only creates socio-economic problems, such as unemployment, poverty and hunger, but also constantly generates new class relations which created new challenges for the class struggle. In capitalist core countries the state has relative autonomy, but the degree of the greater autonomy in Pakistan as a Third World country is largely determined by the interplay of the state and the world economic system — with the dominant position of the World economic system. Dependency theorizing has, however, established that the processes of underdevelopment in Pakistan as a post-colonial state, are the outcome of the development processes in Western core countries and the policies of the world monetary bodies and multinational corporations. Ronald Muller, co-author of Global Reach, says that “the MNC [Multinational Corporation] is
  16. 16. Naveed Pirzada 16 one of the most powerful impediments to Third World development” (as cited in Ghosh, 1984:7). Dr. Mahbubul Haq, the leading economist of Pakistan, says that Pakistan has one of the poorest records on UNDP’s human development criteria in the region (Haq, 1997). External borrowings and defense spending in Pakistan have reached an alarming point 3 . The continuing budget deficits due to the heavy spending on debt servicing, defense spending and the structural adjustment programs (SAP) of IMF and the World Bank have entangled Pakistani people into a vicious circle of poverty and hunger. “This neo- liberal trickle-down economic logic was encouraged, and indeed perpetrated” (Hak, 2002) in the shape of structural reforms under the SAP, thereby, increasing the misery of poor people of Pakistan. It is, therefore, clear, that the dependent underdevelopment of Pakistan as a post-colonial state is due to the dominant position of global neo-colonialism in collaboration with the state apparatuses of Pakistan. In other words, Pakistan as a country at the periphery of the world economic system renders itself vulnerable to underdevelopment at the behest of global capitalist powers thus increasing its dependent position vis-à-vis world economic system. References Alavi, Hamza. (1972). The State in Post-colonial societies: Pakistan and Bangladesh. New Left Review, Vol. 74, pp. 59-81. Amin, Samir. (1974). Accumulation on a World Scale: A Critique of the Theory of Underdevelopment (2 Vols) New York: Monthly Review Amin, Samir. (1976). Unequal Development: An Essay on the Social Formation of Perip heral Capitalism. New York: Monthly Review. 3 In the wake of 9/11 international politics, aid flowed to Pakistan from the core countries and international monetary organizations and temporarily saved the life of Pakistan standing on the verge of state bankruptcy.
  17. 17. Naveed Pirzada 17 Amin, Samir. (1993). Social Movements at the Periphery. New Social Movements in the South: Empowering the People. In Ponna Wignaria (Ed.). London: Zed Books. Pp. 76-100. Ansari, Sarah. F.D. (1992). Sufi, Saints and State Power: The Pirs of Sind, 1843-1947. Cambridge: Cambridge University Press. Burki, Javed Shahid. (1999). Pakistan: Fifty Years of Nationhood. Colorado: Westview Press. Dos Santos, T. (1970). The Structure of Dependence, American Economic Review, Vol. 60, pp. 231-236. Esposito, Bruce J. The Politics of Agrarian Reform in Pakistan. Asian Survey, Vol. XIV, No. 5. pp. 429-438. Evans, Peter. (1979). Dependent Development: The Alliance of Multinational, State, and Local Capital in Brazil. Princeton, NJ: Princeton University Press. Foucault, M. (1991). Governmentality, in G. Burchell, C. Gordon, and P. Miller (Eds.) The Foucault Effect: Studies in governmentality, Chicago: University of Chicago Press, pp. 87-104. Gardezi, Hassan N. (1998) The Failure of Capitalism in Pakistan, Journal of Contemporary Asia Vol. 28, No3. pp. 310-26. Ghosh, Pradip K. (1984). Multi-National Corporations and Third World Development, Westport: Greenwood Press. Gold, D., C. Lo, and E. Wright. (1975). Recent Developments in Marxist Theories of the capitalist State. Monthly Review 27, pp. 29-43 & 36-51. Gustafson, W. Eric. (1976). Economic Problems of Pakistan Under Bhutto, Asian Survey, Vol. XVI, No. 4. Pp.364-380. Hak, Zain. (2002, June 6th ). Alleviation of poverty and the IBRD pundits, Daily Dawn, Karachi, Pakistan. Retrieved on November 15th , 2003 from Haq, Mahbubul. (1997). Human Development in South Asia, Karachi: Oxford University Press. Jalal, Ayesha (1995) Democracy and Authoritarianism in South Asia, Cambridge: Cambridge
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