A Tale of Two Countries: Comparing India and Pakistan’s Economies

re: arjun

{And what exactly is wrong with the consumer being able to choose? }

...this is why mullahism is incompatible with capitalism...they are never able to let go of their instincts (that are beaten into them) to tell people what to do...``you must buy soap that smells like this``...``you must like this type of potato chip``...``you are wrong, and will be punished on judgement day``...

...capitalism, at its core, is about letting market forces, of which the consumer is a central part, drive economic activity...which means the consumer decides what he wants (there is no right or wrong, just choice), entrepreneurs try to meet the consumer`s needs, and other entrepreneurs try to compete with better and/or cheaper products...there is no role for some dictator or mullah in any of this, which is a bitter pill for the likes of urstruly to deal with....

Arjun_M

At the time of partition, both wings of Paksitan had about 600 Industrial units (quite pathetic ones). And in early 90s, only the Karachi Industrial zone had over 6000 Industrial units. Only Karachi Steel Mills employs 30,000 people. This is an astrononmical growth for a country like Paksitan. However, unfortunately, this increase in Industry is in the consumer goods area. That $9 billion (I thought it was 6) is from agri and and this sector. The income from defence technology is not disclosed - but according to defence journals Paksitan is one of the major exporter from Asia in this area.

#76 by Urstruly on October 25, 2002 12:29pm PT

``The society is thus clearly divided into two - haves and have-nots.``

Mashallah. Why didn`t anybody else point that out? Now you know why I read all your posts twice. You and Lajwanti are the only truly original thinkers on chowk.

(And what about Kashmir, jee? Phir bhool gaye?)

Your fan

Zafar

Reply Stuka #73

``What does that bring us...a perverted saccharine sweet unrealistic perspective of romantic relationships and high cholestrol??``

The ability to deal with ANYTHING without feeling overwhelmed or out of depth. One thinks: ``Yes, this is quite difficult, but it`s nothing compared to bashing up sixteen villains on motorbikes while wearing two pears of sun glasses, having one hand tied behind one`s back AND also participating in seventeen long song and dance numbers and thirty-seven constume changes, while recognising your long lost mother and carrying on phone dialogue with corrupt police officer. I CAN DO IT! MaaaaaaaaaaaaaaaaN!!!!!!`` (``Betaaaaaaaaaaaaaaaaaaaa!``)

As for romance shomance, it gives one something to hope for EVEN when life is disappointingly not providing.

And cholesterol? Sala, how dare you claim to be a Punjabi? You`re probably from Coorg or some place like that. Punjabi log cholesterol ka naam bhi nahiN lethe, don`t you know anything?

Reply Prem #72

``Liquor it must be....how else can a decidely astute guy be so consistently angry? And why else would a man of ANY intelligence equate tahmed with romair?``

Speed psychosis. (Jay, man, just get some SLEEP!)

Reply Harimau #67

``At least, we are safe from an invasion by the Chinese! Let them try saying Sravanabelagola.``

I would be less sanguine if I were you...one word they have absolutely no problem with is ``Amma``.

re:#66 by jay
Jay,
Did you hear the news about karnataka govt not honoring Supreme Court order of releasing Cauveri water for TN? What do you think of it? Are our own leaders following the legal system? Do not criticise Pakistanis or anyone else for weaknesses we all possess.
If you must compete, compete with China. Now, there is a tough competitor and he has left India far behind. As someone said, you cannot become a good wrestler if you go on wrestling with the weak.
Sridhar

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Dost-Mitter # 61

You can write your post again, word by word, just replacing the word India with Pakistan. That is exactly what has happened in Paksitan. As a matter of fact, Paksitan gave up on scocialist economy, as soon as the Bhutto was hanged. During late seveties and up until early 90s there has been an astronomical growth in industrialization. There are several Induastrial zones and export processing zones set up during that time period just right in front of me; 80% of that industrialization was in consumer goods, mostly from foreign and especially Arab investments and only 20% was the capital industry; but it ranged from aircraft manufacturing, to defence technology on one end and from automotive to cement to potato chips on the other; later sector being a private one.

What ails Paksitan, however, currently is not the industrialization but 90% of it is because corrupt politicians and generals have stolen billions without impunity. That impacts the economy in a very different way. It is not a failure of economy but it is that of governance.

However, the point that I have been raising in my last posts was not to compare the economies of two countries but it was that of how we measure the economies.

Purchasing Power Parity bases is a very dangerous idea for a nation to perpetuate. It means that there is a target market in the country where a certain segment of the society can pay the prices of consumer goods in amounts equal to the prices in Western country (US$ in particualr). So the foreign investment targets that segment of the society. When they start selling these products at those prices, the prices of locally manufactured goods also have to be increased to give consumer an impression that they are equally good. I give you an example:

During my final year of engineering I started a part time employement at a potato chips plant for my dissertation. This plant was an Arab-Pak joint venture. The small packets of the size that are sold here at the vending machines, were sold there at the price of Rs. 15 in early 90s. The potato at that time was around Rs. 3-5 per kilo. One sack of potato chips is usually made from half of a medium size potato costing approx. Rs. 0.15. The foil packaging was expansive and it cost about a Rs. 1 per pack. The other overheads would cost a total of about Rs. 5. Taxes were Rs. 3. And was sold at a profit of Rs. 6-7. Whereas, at local backery you could buy potato chips for Rs. 10 per pound. Local bakery did not pay any direct tax. But consumer psychology dictates him that the potato chips in shiney foil packing are much better than the bakery ones. In order for bakery to compete, they artificially increase the price because consumer psychology is built up that more pricey item is better. But by doing so bakery loses its low paying customers. So the PPP is working very well for foreign investment and government because government is earning taxes, but a consumer is getting poorer and poorer. The society is thus clearly divided into two - haves and have-nots.

That is the reason governments also perpetuate the concept of PPP.

Ref ZafarA #68

[Harimau, what is diamond in Tamil, please? I KNOW the word is NOT Love Queen...]

Funny you should ask.

It is Vairam as in Vairamuthu (literally, Diamond-Pearl or Heera-Moti), the man who penned the song that Sangilikkaruppan, father of Love Queen, refuses to translate.

Ref Jay #66

Just brilliant, positively brilliant analysis of what is wrong with Pakistan.

Not one Pakistani has come up with a response to you because you speak the truth.

re: Zafar # 69

Liquor it must be....how else can a decidely astute guy be so consistently angry? And why else would a man of ANY intelligence equate tahmed with romair?

Zafar:

``Brought up on Raj Kapoor movies and butter chicken. What more could you ask for?``

What does that bring us...a perverted saccharine sweet unrealistic perspective of romantic relationships and high cholestrol??

No benefit yaar...

:(

...what is mullah urstruly talking about?...


{People feel ashamed and disgusted that you have to import things like soaps, detergents, airconditioners, motorcycles, and vehicles from other countries in this day and age. }

Last I checked, India wasn`t importing any of this out of need..some psycho desis will always be convinced that bathing with phoren soaps will make them more like goras, but other than that ain`t no one buying that stuff...

Soaps - Lifeboy...lifeboy hai jahaan, tandrusti hai wahaan...
Detergents - Nirma washing powder
Airconditioners - Videocon
Motorcycles - Hero Honda is made in India, even if Honda name is Jap
Vehicles - Maruti, TATA jeeps

Ref ZafarA #64

[Look, they just took this decision on aesthetic grounds after hearing the attempts that Northies were making with Oodhakamandalam, Sravanabelegola, Balasubramaniam and, of course, Dravidamunnetrakazhagam. So sue us.]

At least, we are safe from an invasion by the Chinese! Let them try saying Sravanabelagola.

I think the Golden Quadrilateral is a tremendous defensive asset in case of an invasion by the Chinese. All those l`s right next to the r`s. I think the Chinese Army would then be forced to take the country roads choked with bullock carts since they wouldn`t be able to communicate where they are on the Quadrilateral.

Reply ERaman #65

``Seems like Hari may be right. I might have just made up the name Diamond network because I forgot the Golgden quadilateral part, anyways take your pick which is easier?``

Well, they tell me that Gold is actually becoming less popular in India than it used to be, so I would say Diamond would be more in keeping with the new national mood. Vaisai Old is Gold, so if you want the system to hark back to our sanskriti, philosophical truths and hallowed traditions...actually, what am I saying? We should forget our tradition of roads as fast as possible. Diamond it is! (Harimau, what is diamond in Tamil, please? I KNOW the word is NOT Love Queen...)