Former World Bank Economist Ishrat Husain speaks at AKU-ISMC

AKU-ISMC Director Abdou Filali-Ansary and Chairman of the National Commission for Government Reforms in Pakistan, Ishrat Husain.

On the 5th of March, Chairman of the National Commission for Government Reforms in Pakistan and former World Bank economist Ishrat Husain presented a seminar at the Aga Khan University Institute for the Study of Muslim Civilisations (AKU-ISMC). Husain’s presentation explored his work in the field of governance and development, and more specifically in Pakistan and other Muslim contexts.

Husain, who was Governor of the State Bank of Pakistan for six years, began his presentation by noting that Pakistan is among the 24 worst performers in terms of economic and social development in the world, and that despite the wealth gained through natural resources, Muslim countries have performed very poorly in World Bank and World Trade Organisation economic and social development indicators. Despite this, per capita incomes in a number of Muslim countries have dramatically increased.

“However, there is not necessarily any correlation between social and educational development, and per capita GDP. Where we ought to be, and where we are, especially in terms of the non-elite sectors of society are vastly different. There is no comparison between the wealth generated, and the conditions that the majority of the population live under.”

Husain’s presentation explored his work in the field of governance and development in Pakistan

The stark inequalities created by such a situation have resulted in social tension, revolts, and a withdrawal from the norms of society, as seen throughout the world. In response to this, Husain said, it is important to consider an integrated approach to development.

Husain said that in response to the current situation, the Islamic Development Bank has initiated a commission, headed by former Malaysian Prime Minister Mahathir bin Mohamad, which has identified a number of challenges of development in Muslim contexts.

“One is human development – GDP is not the end-all of development. The nurturing and unleashing of human potential is the central focal point of the economic understanding of growth. Education must not be seen as acquiring good grades – it must be approached as a thirst for continuously acquiring and updating knowledge.”

From this, Husain said, the commission has prioritised a number of challenges as essential to development in Muslim contexts over the next 15 years. One is a reduction in poverty in the five most populous Muslim countries – Indonesia, Pakistan, Bangladesh, Egypt and Turkey. A second priority for the Islamic Development Bank is to raise the level of health – through access to medicine and clean water. Another important priority, Husain noted, is addressing gender inequality in almost all sectors.

Husain stated that although high economic growth is a prerequisite for development, it must be a sustainable form of growth in order to ensure that prosperity is passed on to future generations. In conclusion, three paradoxes which exist in contemporary Muslim contexts and which act as barriers to development were articulated.

“One is the fact that there are resources for economic growth but not development. The second is the question that although autocracies cannot work, many Muslim countries are not yet ready for democracy – what then, is a suitable structure of governance? The third is that half the population is not getting the resources that they need – that gender inequality must be addressed to ensure continued development in Muslim contexts.”

Husain’s lecture forms part of the AKU-ISMC series of lectures by guest speakers. The lecture series attracts speakers from a variety of contexts from around the globe to discuss and stimulate debate about issues which are critical to all societies.

Online Resources*

• To listen to a recording (wma) of the seminar, please click here.

* This recording is the property of Aga Khan University (International) in the United Kingdom. You may not copy, reproduce, republish, download, post, broadcast, or otherwise use this recording in any way except for your own educational or personal non-commercial use. The views expressed by the speakers are their own personal views and do not necessarily reflect those of the Institute.