CSS Pakistan Affairs | Overview of the Economic Policies of Ayub Khan
The following question of CSS Current Affairs is solved by Khirman Batool under the supervision of Howfiv’s Pakistan Affairs and Current Affairs Coaches. She learnt how to attempt 20 marks question and essay writing from Sir Syed Kazim Ali, Pakistan’s best CSS and PMS English essay and precis teacher with the highest success rate of his students. This solved past paper question is attempted on the pattern taught by Sir to his students, scoring the highest marks in compulsory and optional subjects for years, and uploaded to help aspirants understand how to crack a topic or question, how to write relevantly, what coherence is, and how to include and connect ideas, opinions, and suggestions to score the maximum.
Outline
1-Introduction
2-Positive impacts of economic policies of Ayub Khan
- ✓Green revolution increasing agricultural yields
- ✓Establishment of financial and development corporations
- ✓Formation of legislation regarding the regulation of land reforms
3-Negative impacts of the economic policies of Ayub Khan
- ✓Concentration of facilities to specific areas and people
- ✓Increase in income and regional disparity
- ✓Disturbance of balance of payment
4-Critical analysis
5-Conclusion
Answer to the Question
Introduction
Ayub Khan’s era is called “the Decade of Development” in the history of Pakistan. He was a dictator who took charge of the country on the call of President Iskander Mirza. He adopted several policies for the country to bring it back on track with development. The policies were mainly called the Green Revolution, which boosted agricultural yield. Moreover, he introduced the industrial revolution in the country, including the development of many small and medium private sectors. However, the policies were aimed at short-term gains for the country as the privatization of government sectors had generated income disparities as well as regional disparities in the country. And it had increased the inflation rate in the country. Moreover, it enabled the concentration of wealth in specific areas and to specific peoples. So, the era of 1958 – 1969 was an era of development that was temporary, bringing inevitable consequences for the country.
Overview of the era of Ayub Khan
Ayub Khan’s regimen is divided into two phases, both in the agricultural as well as industrial revolutions. Phase I of the agricultural phase was a boon, which has moved it towards the path of development. It includes the modification of the irrigation system, introduction of new agricultural policies, like allocation of tractors to the farmers, and installation of tube wells in different agricultural cities. Similar steps were taken in Phase II, like more allocation of tractors, importation of high-yielding seeds, and increased utilization of seeds. Moreover, the promotion of private small and medium-scale industries was the flagship of Ayub’s economic policy.
Positive impacts of economic policies of Ayub Khan
- Green Revolution increased agricultural yields
The Green Revolution was the 1st step that Ayub Khan took. He divided it into two phases. Phase I was centred on an increase in irrigation facilities, the installation of twenty-five thousand tube wells, and the importation of pesticides and fertilizers. In phase II, more than 79 thousand tube wells were installed, tractors were distributed to the farmers, and high-yielding seeds were started to be utilised for crop production. All the steps proved an opportunity to increase the production of crops from 3.7% to 6.7% in the decade, as mentioned in the Economic Survey of Pakistan. All the policies to increase the yield of crops and improve the agriculture sector have led the country towards the Green Revolution, which has been beneficial in his regimen.
- Establishment of financial and development corporations
Ayub Khan has taken the initiative for monetary policies in Pakistan. He has started several corporations regarding the finances and development of the country. The corporations include Pakistan Industrial Development Corporation, Pakistan Insurance Corporation, which is Pakistan Re-insurance Company Limited, and Pakistan Housing Authority. Also, he gave the country five-year plans that were implemented in two phases. All the programs have led the country to achieve economic stability through a new path of economic policies.
- Legislation regarding regulation of land reforms
Ayub Khan has introduced the land reform act in Pakistan. This has been introduced to prevent the concentration of wealth so major landowners would not crush other’s rights. The reforms were also introduced in two phases. Land Reforms Regulation 1959 has prohibited everyone from owning a property of 500 acres of irrigated and 1,000 acres of un-irrigated land or a maximum of 36,000 Produce Index Units (PIU). Moreover, it has restricted the land owners from buying or claiming further land after the independence. Also, It further allowed the redistribution of land among tenants and others, and regulation contained provisions, providing the security of tenants as well as preventing the subdivision of landholdings.
Negative impacts of economic policies of Ayub Khan
- Concentration of facilities to specific areas and people
Several steps for maintaining the circulation of wealth in the society were taken. However, the Green Revolution has increased the concentration of wealth in specific areas. The legislation regarding factorization and tube wells allocation has led to the concentration of tube wells and tractors mainly in rich, old-settled districts and colonies. Akmal Hussain disclosed that tractors imported were more expensive than the international market rate. Moreover, they were allocated to land owners having property of more than 25 acres of land. So, although the Green Revolution was a boon for Pakistan, it had several drawbacks that have derailed the country’s economy.
- Increase in income and regional disparity
The economic policies have accelerated income and regional disparities in the country. The policies had triggered neglect and betrayal in East Pakistan. Akbar Ali Zaidi stated that the economic policies have enhanced the income disparities among the people and neglected the social sector of the country. Moreover, among individuals, numerous business empires were created. There was little or no increase in the level of real wages, and social equity was of little concern. Functional inequality was the preferred philosophy of Mahbub ul Haq and Ayub Khan’s Harvard Advisory Group, and their focus was on the rich, who were supposed to generate more savings.
- Disturbance of balance of payment
The economic policy made the country face the crisis of balance of payment. Ayub Khan have initiated several policies regarding trade. The Export Bonus Scheme, which was aimed to import raw material in the country, had encouraged the importation of luxury items in the country instead of raw materials. And because of dependency on foreign aid, the country was pushed towards foreign exchange shortage in the country. So, some of the economic policies of the era of development have created the balance of payment in the country.
Critical analysis
The era of Ayub Khan was an economic package for the country. His approach was capitalist, encouraging privatization in the country. As a result, the economy has flourished. But it was a temporary establishment as it has made business empires in the country and made the concentration of wealth in specific areas and to specific people. The Green Revolution was a plus point of his era, but the Industrial Revolution showed a decline in agricultural growth. He made such policies that have maintained the pace of the economy for a short time.
Conclusion
The economic policies have named the era of President Ayub Khan as the Era of Development. He introduced policies for agricultural and industrial sectors to improve Pakistan’s economy. Some of his policies have actually accelerated the country’s economy towards success, but the success was short as the policies have several drawbacks. They have caused the country to enter the situation of a Balance of Payment crisis, regional disparities, and concentration of wealth to specific areas of the country.
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