In Pakistan, there is much debate about why under successive governments, there has not been sustained economic growth. Over the last 80 years of history, Pakistan has experienced short periods of economic growth but then very quickly it is followed by long periods of economic stagnation. Every few years, there is the same balance-of-payment crisis, rising unemployment, a new IMF program, heavy taxation and this cycle repeats. What lies at the heart of this problem is often debated. Recently, I finished reading Why Nations Fail by Nobel Prize-winning economists Daron Acemoglu and James Robinson. The book argues that long-term differences in national prosperity arise primarily from whether political and economic institutions are inclusive or extractive. Geography, culture and individual policy mistakes may matter, but the distribution of political power often determines whether productive policies and broad-based economic opportunities can endure. Those nations with strong political institutions have flourished over the last several centuries whereas nations with weak political institutions even though may have achieved brief periods of economic activity, it was not sustainable. The book argues that long-term differences in national prosperity arise primarily from whether political and economic institutions are inclusive or extractive.

If you look at Pakistan’s current situation, many Pakistanis don’t believe the country is on the right track. Those in power think economic weakness is because there should be more provinces or we need to attract foreign direct investment, National Finance Commission Award needs to be fixed, there is lack of internal security, population growth is uncontrolled, political elite is corrupt etc. These factors directly constrain growth, but their persistence and the state’s inability to address them often reflect deeper weaknesses in political, legal and administrative institutions. What lies underneath these problems is a deeper structural problem of weak political and legal institutions.

Among the political institutions the most important one is the constitution. And the very first task of any newly formed country should be to formulate a constitution. Pakistan’s first constitution came in 1956; 9 years after the independence. Compare that to India, which adopted its constitution in 1950 and Bangladesh whose constitution came into effect one year after formation of the country. And even the first constitution of Pakistan did not last long, and martial law was established in 1958 in the name of bringing political stability to the country. Martial law in essence is evidence of institutional failure and even though it brings temporary stability, it never allows legitimate and inclusive political institutions to grow and flourish. It is just like a patient who is learning to walk is only given crutches to walk and never allowed to walk on his own feet. When the patient falls at the beginning when learning to walk on his own feet, the natural reaction is to give crutches so that it doesn’t fall. But when due to fear of failure the patient is never allowed to learn to walk, crutches become permanent. Similarly, martial laws of Pakistan and now the hybrid regime has given a semblance of stability on the surface, but there are always strong undercurrents of instability when the crutches of martial law or hybrid regime are removed. A legitimate and inclusive political system is a foundational principle of a modern state and martial law in essence is a non-inclusive order decided by the dictator and running on the whims of one individual. Similarly, a hybrid regime has the appearance of civilian facade, but at its core military leadership is the ultimate decision-maker. This never allows the political institutions to strengthen and therefore the patient i.e. the country remains on crutches of military support.

The Constitution: Core Institution

General Zia-ul-Haq once said ““What is the Constitution? It is a booklet with ten or twelve pages. I can tear them up and say that from tomorrow, we shall live under a different system. Is there anybody to stop me?”. This view misunderstands the deeper function of a constitution. It brings order to the entire society and that no one individual is considered above the law. The entire society functions under this framework which then gives way to inclusive political and economic institutions to be established and over time extractive political and economic forces are weakened. This brings a level playing field which allows progressive economic forces to move the economy forward. Yet, this issue receives insufficient public discussion in Pakistan. No country should expect stable economic growth without a strong constitutional framework that is followed by all institutions of the country. The Constitution must be supreme over all organs of the state. The US President’s oath of office states “I will faithfully execute the Office of President of the United States, and will … preserve, protect and defend the Constitution of the United States”. A central obligation of every........

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