Economic gap between East and West Pakistan in 1960s is often cited as a key reason for the secessionist movement led by Shaikh Mujib's Awami League and the creation of Bangladesh in 1971. This disparity has grown over the last 40 years, and the per capita income in Pakistan now stands at 1.7 times Bangladesh's in 2011, slightly higher than 1.6 as it was in 1971.
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 Ayubs economic reforms in 1960s, the fact that these benefits were perceived as a dispensation from a quasi-colonial military regime to its colonyEast Pakistanproved 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.
Haq's Musings: Economic Disaparity Between Bangladesh & Pakistan
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 Ayubs economic reforms in 1960s, the fact that these benefits were perceived as a dispensation from a quasi-colonial military regime to its colonyEast Pakistanproved 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.
Haq's Musings: Economic Disaparity Between Bangladesh & Pakistan
