Understanding the Nature of Political Economy in Developing States: A Study of the Structural Issues in the Political Economy of Pakistan

Abstract

This Study mainly aimed to explore the structural bases of the political economy of Pakistan for finding out the key structural issues which are constantly resulting to impede the economic progress of Pakistan. This research has followed the case study research methods, and for the purpose of achieving the main objectives of this study, the Campbell’s (1998) Institutional Analysis Model and the Setterfield (2003) Analytical Political Economy approach was used. The results of the study indicated that the political economy of Pakistan is essentially characterized with: a society which is unwilling to accept necessary change in its traditional values which is causing to create an all-round culture of nepotism and favoritism; a political system which is pre-occupied by the political leadership which is financially very strong but morally very weak; and, a governance structure which lack both the resources and general capacity to effectively implement the policies of the government. The study recommended that for overcoming the aforesaid persistent structural issues in the political economy of Pakistan, the national political leadership shall have to change their own mindset first, and later, they have to devise a serious plan/strategy to bring the pre- requisite changes in the perception of general public i.e. for infusing a sense of acceptability regarding the need for some genuine socio-economic reforms in the country.