Government Failure: Causes

By Najm us Saqib

As usual, the PhD Professor of Political Science has started the topic by defining the basics first. Before explaining what government failure entails, he informed the students that the term government failure was coined in the 1960s when economists of that time observed that any government intervention in the regulation of the economy would not often work. ‘In simple words, government intervention leads to a net loss of economic welfare, culminating in government failure. Other reasons that indicate government failure include bad governance, nepotism, arbitrary alteration of prices, lack of a visionary approach, and high administrative costs. All these factors stifle the economy and come at a great social cost. Intervening in a market to resolve an issue often results in poor allocation of limited resources, thereby making the situation worse.’

The learned Professor looks around. Seeing his students rather disinterested, he stops for a while and decides to have an interactive session instead.

Professor: Is there anyone in the class who knows what a White Elephant Project means?

Several hands are raised. Pointing towards one of the students, the Professor says, Yes – you.

Student A: In 1962, the first-ever computer-controlled Concorde Supersonic Aircraft project began as a joint endeavour of the French and British governments. Somewhere in 1976, its first flight took place, and in the year 2000, after the tragic crash in Paris that killed over 100 passengers and failed to implement safety protocols even after spending millions of pounds, the project was abandoned. So that’s how the concept of a White Elephant Project came into being.

Professor: Impressive. Now, can anyone tell us about the reasons for government failure in Pakistan? But before that, how many White Elephants do we have in our country? Anyone?

Student C: (Whispering). How boring. I hope he is getting somewhere with all this. Phew…!

Student D: Yes, Sir. From PSO, PIA, PTV, and PBC to Pakistan Steel Mills, Pak Datacom, Heavy Mechanical Complex, and Pakistan Railways, there are numerous SOEs. The list is available on the Finance Division’s website. As regards government failure, we would like to know your personal viewpoint, as the relevant information is available on the internet. To me, a government fails when it can no longer do justice to its very being. Do you agree, Sir?

Professor: That’s a very general explanation. However, I agree with you. A government must do what it stands for, and to evaluate any government’s performance, we apply Pareto optimality. I’m sure all of you know what Pareto optimality is and what it signifies. Good to know that ours is an informed class, and instead of explaining the topic, you would like me to come to the point. Well, if you are ready, I am ready. Shall we?

The Professor begins:

In the context of countries such as Pakistan, among others, there are four major reasons for government failure.

One: The fear of the unknown keeps any government on its heels. No one knows whether the government will last for its prescribed period or not. Whether related to domestic issues or foreign relations, almost every policy is made and implemented in haste, under pressure, or to appease the powers that be. Therefore, a government fails even before it is installed in the capital.

Two: The focus is on permanence rather than performance. Look at all the governments of Pakistan since independence. The rulers want to cling to power at all costs, and to them, performance means staying in power. The welfare of the people is not an objective at all. They conveniently forget that running a government is inherently a responsibility, not a privilege. To them, the success of the government is measured by their ability to prolong their tenure, rather than by utilising public funds and government machinery to uplift critical areas such as education, health, and population growth. As they are not concerned with the accruing social costs, people suffer perpetually. Meanwhile, the government fails.

Three: The absence of real-time accountability leaves a government entirely to its own devices. As there are no checks on them, they know they are above the law. Interestingly, those who could hold the government accountable are the ones waiting in the wings – to form the next government or be part of it. They understand the repercussions of enforcing accountability across the board. Staying relevant is an art. Those who master it survive. It is then no surprise that various governments in Pakistan feature a few familiar faces. This elite class has mastered Darwin’s theory – the survival of the fittest.

(There is complete silence in the class. You could hear a pin drop. Students are busy taking notes. They know that what the Professor is saying will not be available on any search engine.)

The Professor continues:

Finally, a government fails because of its focus on individual development as opposed to a collective approach. The cohesive bonds between power and money keep morals at bay. Unless the mindset changes for the better, governments will continue to fail both the books and the people. I must clarify here that a change in mindset is a process that takes decades and numerous events moving in the right direction. It doesn’t happen overnight or with a change in government.

Backbencher: Sir, what if we made you the Prime Minister of Pakistan and let you have a Cabinet of your choice – do you think your government would succeed? I mean, would the government not fail?

Professor: I have many talents, but going back on my words is not one of them. Hence, there is no chance of me forming a government in Pakistan, even if it were miraculously offered to me. I must hasten to add that the people get the government they deserve. Who am I to question their choice?

Class dismissed.

The writer is a former Ambassador of Pakistan and author of eight books in three languages. He can be reached at najmussaqib

1960@msn.com

Note: This article first appeared in The Nation on 22 March, 2025.