Islamabad: In Pakistan, we are a fragmented society with divisions manifesting along ethnic, religious and now political lines. The recent trend of strengthening this divide for political gain is extremely dangerous and will have deep and long-lasting consequences.
These divisions are not only detrimental to social cohesion but also have important economic consequences.
First, a fragmented society makes it difficult to build strong institutions that can promote economic growth. Institutions such as banks, courts and businesses often struggle to function properly when there is a lack of trust between different groups.
For example, members of one ethnic or religious community may be unwilling to put their money in a bank that they perceive to be controlled by another community.
Some of the other negative consequences are:
One, with divisions along religious, ethnic or linguistic lines, we are witnessing a decline in productivity as these divisions create an atmosphere of mistrust and conflict within society and divided groups or communities.
Two, a divided society often results in a poor allocation of resources because the needs of one group may be given more importance than another. This creates disparities in economic opportunities for people belonging to different groups. This is particularly relevant because of the inherent disparities between Pakistan’s geographical regions that are coincidentally divided along ethnic and political lines.
Third, higher spending on security as a fragmented society requires higher spending on security forces to maintain law and order, which in turn may increase public spending.
Fourth, we see limited economic growth due to the fact that a divided society with political instability and ongoing conflict can limit economic growth and deter foreign investment. Pakistan has recently witnessed such episodes, particularly due to political and social instability hampering the China Pakistan Economic Corridor (CPEC) projects.
Five, Pakistan has seen increasing levels of brain drain as talented individuals feel marginalized and seek opportunities elsewhere, resulting in a loss of human capital for the country.
Six, instead of allocating spending to the social sector to mitigate the effects of social division, we have allocated the majority of our resources to security, law and order. This inhibits long-term growth.
Seven, a divided society contributes to increased poverty, especially for groups that are marginalized or discriminated against. This, in turn, leads to higher social costs, such as health care and welfare costs.
Secondly, a fragmented society makes it difficult to attract foreign investment. Investors are wary of investing in countries with social and political instability as this may increase investment risk. An example of this is the recent slowdown in CPEC.
When there are high ethnic or religious tensions, it can be difficult to convince foreign investors that their investments will be safe and not threatened by conflicts between different communities.
We have excellent potential for investment in many sectors but unfortunately these have not been exploited due to tensions arising from social and ethnic divisions.
Third, social tensions can lead to violence and unrest, which can be disastrous for the economy. For example, ethnic or religious conflicts often result in riots, strikes, and other disruptions that cause businesses to close and supply chains to be disrupted. This trend has lasting effects on the economy, especially on small businesses.
Overall, the economic cost of a divided society in Pakistan is high. Fragmentation makes it difficult to build strong institutions, attract foreign investment, promote equality and inclusion, and maintain political stability.
While there are no easy solutions to these problems, it is clear that addressing the root causes of social tensions must be a priority for policymakers and civil society. By working together, it is possible to build a more integrated and prosperous society that benefits all citizens.
Unfortunately, hate is the hottest commodity at the moment and various interest groups are peddling it to build visibility, traction and narrative.
Hatred and division sell fast, but the buyers always lose in the short term, while the state and nationalism lose in the long term. Now is the time to stop buying and selling distributions before the price becomes unaffordable for statecraft.
