Forty years after the Fall of Dhaka and the creation of Bangladesh on Dec 16, 1971, there's still much talk about it. The Daily Star, a Bangladeshi newspaper, has published a piece on the subject by Akbar Ali Khan marking the 40th anniversary of Bangladeshi independence. In his Op ED, Mr. Khan argues that "political independence provided much more conducive environment for growth in Bangladesh than united Pakistan. Though economic growth in East Pakistan was revived during Ayub Khan's so-called decade of reforms, growth rate in erstwhile East Pakistan was much lower than that of West Pakistan".
In his zeal to rationalize independence based on the economic argument, Mr. Khan has clearly ignored the following facts:
1. In 1969-70, the ratio of per capita incomes between West and East Pakistan was 1.6, as detailed by Mr. Khan. In 2011, however, this ratio has increased to 1.7, according to the IMF data.
2. Bangladesh is still categorized by the World Bank among low income and least developed countries of the world, while Pakistan is a middle income country and classified well above the list of least developed countries of the world.
3. Bangladesh is ranked as 11th poorest country in the world by the World Bank in terms of the percentage of population living on $1.25 or less a day. Neighboring India is the 14th poorest on this list, while Pakistan does not show up on it. The rest of the nations on this list are all in sub-Saharan Africa.
3. In 1947, East Pakistan started with a lower economic base than West Pakistan, and the loss of its Hindu Bengali business elite in 1947 left it worse off. It also didn't have the benefit of the large number of Muslim businessmen who migrated to West Pakistan, particularly Karachi, after partition of India in 1947.
4. Pakistani economist Dr. Ishrat Husain explains it well when he says that "although East Pakistan benefited from Ayub’s economic reforms in 1960s, the fact that these benefits were perceived as a dispensation from a quasi-colonial military regime to its colony—East Pakistan—proved to be lethal."
It must, however, be acknowledged that Bangladeshi economy has been outperforming Pakistan's in the last few years, particularly since President Musharraf's departure in 2008. Bangladesh has also made significant strides on various social indicators and it now ranks just one notch below Pakistan on human development index 2011. Bangladesh's family planning efforts have been remarkably successful in lowering the fertility rate of Bangladeshi women, an area where Pakistan significantly lags behind the rest of South Asia.
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Here are parts of a Daily Times Op Ed by Javed Jabbar on 40th anniversary of the Fall of Dhaka:
In the narrative adopted by Bangladesh and echoed by India and most of global discourse, about three million Bengalis were killed and about 300,000 women were allegedly raped by the Pakistan Army during the nine-month conflict resulting in the secession of Bangladesh. These numbers fail spectacularly on the anvil of factual scrutiny, documentation and rationality. In the 262 days between March 26 and December 16, 1971, Pakistan’s armed forces did not exceed 45,000 troops at optimal levels. The 90,000 prisoners-of-war held by India included over 50,000 non-combatant, unarmed West Pakistani civilians.
Spread out in small, embattled formations across East Pakistan, facing a newly unfriendly or uneasy population, an India-supported insurgency, preparing for an Indian invasion, constantly under-supplied and under-equipped, the Pakistani forces would have had to kill 11,450 Bengalis and rape 1,145 women every single day for 262 days to reach the levels claimed. Not a single credible document has been cited in 40 years to substantiate such absurd allegations of scale.
By unverified frequent repetition of the grotesque figures, the names of Pakistan and Pakistan’s armed forces have become synonymous with the charge of a ‘genocide’ in East Pakistan, which actually never took place. The unfounded charge amounts to the character assassination of a nation’s armed forces.
The Pakistani version is diametrically different. The official Commission of Inquiry headed by a former chief justice could only estimate 36,000 dead. Other estimates go between 100,000 to 200,000 killed. To contrast the two claims is not to demean the gravity of the catastrophe by cold statistics. Every human life is sacred. Every human being’s dignity is sacrosanct. Any violation of either is reprehensible.
Some atrocities by Pakistani troops did take place. Several eye-witness accounts state that the targets were almost always adult males, that women and children were spared. The killings were not one-sided. Many thousands of non-Bengalis and West Pakistanis, including women and children, were brutally slaughtered by Bengalis between 1st March and March 26, 1971, and subsequently as well, as also after December 16, 1971. About 4,000 Pakistani troops also perished in the conflict.
The need to revisit this facet of history to conclusively establish the truth is superbly highlighted by the meticulous research recorded by a scholar who is neither a Pakistani nor a Bangladeshi. In her unusually sensitive and remarkably balanced book, Dead Reckoning: Memories of the 1971 Bangladesh War, Sarmila Bose — an Indian Bengali Hindu by birth, a senior Research Fellow at Oxford University — powerfully and persuasively presents the case for a rigorous, evidence-based search for the truth.
http://www.dailytimes.com.pk/default.asp?page=2011\12\17\story_17-12-2011_pg3_5
Here's a mid-year economic performance summary by Finance Minister Dr. Hafeez Shaikh as reported by APP:
ISLAMABAD, Dec 19 (APP): Federal Minister for Finance, Dr Abdul Hafeez Shaikh here on Monday said economic indicators were showing positive results due to prudent economic policies initiated by the government.Briefing a newsmen, here at the Ministry of Finance, the Minister said the government wanted to improve the workings, efficiency and performance of State Owned Enterprises like Pakistan International Airlines (PIA), Pakistan Steel Mills (PSM) and Pakistan Railways through introducing efficient management and operating through the professionals in order to make them profitable entities for the economic development of the country.
He added that government has fulfilled the minimum financial requirements of the PSM in order to help the organization improve its working capacity.
He informed the media that large scale manufacturing sector has registered growth of 3.6 percent during the first quarter of current financial year which was a health sign for national economy.
He added that revenue collection up to December 16 stood at Rs. 715 billion which was realized at Rs. 555 billion during the same period of last financial year.
Besides, the governmental expenditures were fixed at 42.5 percent during first five months of current financial year which was recorded at 38 percent, he added.
He further informed that government expenditure had targeted to 50 percent of the total expenditures by December this year which would reach up to 42 percent.
However , he said that it would spent about 40 percent of (PSDP) by December.Secretary Finance, Dr Waqar Masood said that export grew by 11.5 percent against the expected targets of 5 percent,while imports grew by 20 percent as against the expected targets of 10 percent.
He informed that inflation rate was recorded at 10.2 percent during the period under review which was recorded at 14 percent during the last year.
Foreign remittances in the country were increased by 18 percent which crossed US $ 5 billion mark during last five months of current financial year.
Secretary Finance said that Federal Board of Revenue (FBR) was determined to achieve its revenue targets of Rs. 1952 billion as revenue collection has registered 28 percent growth as compared to same period last year.
http://app.com.pk/en_/index.php?option=com_content&task=view&id=171141&Itemid=1
Well some of the fact needs to be mentioned here. The 1971 virtually destroyed all the infrastructure of Bangladesh and almost everything was needed to be rebuilt from top to bottom. As a result Bangladesh lost 2 decades mainly 1970s and 1980s. This are the 2 decades where Pakistan has done most of the development.
However Bangladesh started to picking up from 1990s and 2000s. If you see the development in this 2 decades is much more then that of Pakistan. In the coming decades this trends will continue where Bangladesh is expecting to get a 7-8% GDP growth within 2-3 year, Pakistan got only 2% gdp growth last year. The internal chaos will hinder the growth more.
Now lets come to the GDP or per capita GDP. The GDP of Bangladesh is a hugely underestimated one that people usually quote mainly due to the fact that it is based on 1995 economic base year. Since then economic structure of Bangladesh has changed completely. Most of the new emerging industries are not counted in the total economy such as private banks, trading companies, private universities, cellular companies, tv stations etc but they contribute to a great extent. Other part is that economic activities at the villages. Due to receiving of high amount of reminiscences economic activities that occur there is huge. On top of it in Bangladesh provide only less then 1% of the people pays taxes with mostly fake information. That actually helped to create a shadow economy. Recently finance ministry indicated that 37-81% economy is shadow economy and size is 50-100 billion usd. Even though other country's also have shadow economy but this size is massive for Bangladesh where as other have only in between 6-20% where as for Bangladesh it is 37-81%.
If we sum up all we will find that at present there is not much difference between the per capita gdp of Pakistan and Bangladesh. This year Bangladesh will publish updated GDP based on 2005 economic baser year. This will give a clear picture what is the present status of the economy though it will not count shadow or black economy.
Lastly Bangladesh has done so far really well after getting independence from Pakistan even better then Pakistan. It will continue at more faster scale in the coming year. But still has some challenges such as corruption, political instability, poor infrastructure, load shedding etc. Bangladesh needs to focus on these stuff if we want to attain more faster growth or 10% GDP growth within the next couple of years.
Pakistan fighting the war of terror for entire world. Despite
this still pakistan economy is growing. Bandladesh is enjoying prefential treatment being a poor and low income country where as in the case of Pakistan it is not so. Pakistan is oblige to maintain a huge army because of its big enemy India where in case of Bangldesh, the country is ruling as a part of India and not obliged to maintain a big and advance army. Pakistan is hosting 3 million refugees from Afghanistan Iran and African countries where as Bangladesh pushed back to their country a very little refugees from Burma when they tried to take shelter and save their live from Budhist terrorists.
Quality of life is much better in Pakistan as compared to Bangladesh and even India. There is no long term investment in Big projects in Bangladesh while in case of Pakistan the case is reverse
Here's a Bloomberg story titled "Pakistan, Land of Entrepreneurs":
On a warm Sunday morning in November, Arif Habib leaves his posh home near the seafront in southern Karachi and drives across town in a silver Toyota Prado SUV. About half an hour later, he arrives to check up on his latest project: a 2,100-acre residential development at the northern tip of this city of 20 million. He hops out, shakes hands with young company call-center workers who are dressed for a cricket match, and joins them at the edge of the playing field for a traditional Pakistani breakfast of curried chickpeas and semolina pudding. After a quick tour of the construction site, he straps on his leg pads, grabs his bat, and heads onto the field. “The principles of cricket are very effective in business,” says Habib, 59. “The goal is to stay at the wicket, hit the right balls, leave the balls that don’t quite work, and keep an eye on the scoreboard. I feel that my childhood association with cricket has contributed to my success.”
Habib, who started as a stockbroker more than four decades ago, has expanded his Arif Habib Group into a 13-company business that has invested $2 billion in financial services, cement, fertilizer, and steel factories since 2004. His group and a clutch of others have become conglomerates of a kind that went out of fashion in the West but seem suited to the often chaotic conditions in Pakistan. Engro (ENGRO), a maker of fertilizer, has moved into packaged foods and coal mining. Billionaire Mian Muhammad Mansha, one of Pakistan’s richest men, is importing 2,500 milk cows from Australia to start a dairy business after running MCB Bank, Nishat Mills, and D.G. Khan Cement.
These companies have prospered in a country that, since joining the U.S. in the war on terror after Sept. 11, has lost more than 40,000 people to retaliatory bombings by the Taliban. Political violence in Karachi has killed 2,000 Pakistanis this year, and an energy crisis—power outages last as long as 18 hours a day—has led to social unrest. Foreign direct investment declined 24 percent to $244 million in the four months ended Oct. 31, according to the central bank.
At the same time, some 70 million Pakistanis—40 percent of the population—have become middle-class, says Sakib Sherani, chief executive of Macro Economic Insights, a research firm in Islamabad. A boom in agriculture and residential property, as well as jobs in hot sectors such as telecom and media, have helped Pakistanis prosper. “Just go to the malls and see the number of customers who are actually buying in upscale stores and that shows you how robust the demand is,” says Azfer Naseem, head of research for Elixir Securities in Karachi. “Despite the energy crisis, we have growth of 3 percent.”
Sherani of Macro Economic Insights estimates the middle class doubled in size between 2002 and 2012. “Those who understand the difference between the perception of Pakistan and the reality have made a killing,” Habib says. “Foreigners don’t come here, so the field is wide open.” The KSE100, the benchmark index of the Karachi Exchange, has risen elevenfold since mid-2001. Shares in the index are up 43 percent this year alone. Over the past decade, stocks have been buoyed by corporate earnings, which were bolstered in turn by rising consumer spending.
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Today, Habib has 11,000 employees and annual revenue of 100 billion rupees. He plans to expand into commodities trading and warehousing. “I’ve created all my wealth in Pakistan and reinvested all of it here,” says Habib, who drives himself to his cricket matches and is never accompanied by security guards. In 1998, when Pakistan’s share index fell to a record low after the government tested nuclear weapons, Habib bought shares even though “people thought I was mad.”...
http://www.businessweek.com/articles/2012-11-29/pakistan-land-of-entrepreneurs
Here are some figures from Economist magazine's EIU 2013:
Bangladesh GDP per head: $695 (PPP: $1,830)
http://www.economist.com/news/21566450-bangladesh
Pakistan GDP per head: $1,410 (PPP: $2,960)
http://www.economist.com/news/21566503-pakistan
Pakistan-Bangladesh GDP per head Ratio: 2.03 ( PPP: 1.62)
Here's interesting data on GDP of Indian states...look at the per capita incomes of Chadigarh, Punjab and Haryana and compare with West Bengal:
Chadigarh Rs. 140,073
Punjab Rs. 78,594
Haryana Rs. 109,064
West Bengal Rs. 55,222
http://unidow.com/india%20home%20eng/statewise_gdp.html
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