Binding constraints: the role of the army in Pakistan’s economic under-development

Pakistan army has ruled the country for the better part of its history. As a result, several scholars have contemplated its role in the economic under-development of the country. However, a better approach to understand the true influence of the army on the economic development would be the one that Bardhan has used to understand the distortions within the Indian economy. According to this approach, in post-colonial states, certain dominant proprietary classes compete for their share in the benefits the economy. As a result, the policy makers fail to pursue policies that challenge the status quo even though they are vital for the development of the economy. The case of the Pakistan economy is no different from that of India in this regard. Despite being the group in control, the army has failed to deter other dominant proprietary classes from their rent-seeking behaviour. In fact, the army actively encouraged the rent-seeking behaviour of certain classes in order to prolong its rule over the country. As a result, certain distortions emerged within the economy that hindered its growth and are directly responsible for its present poor state.