Political Economy of Pakistan
Economics: The
branch of knowledge concerned with the production, consumption, and transfer of
wealth.
Economics is the social
science that studies how individuals, businesses, and societies make choices to
allocate limited resources to fulfill unlimited wants and needs. It
focuses on the production, distribution, and consumption of goods and services,
analyzing everything from individual decision-making (microeconomics) to the
economy as a whole (macroeconomics).
Politics: In
Aristotle's hierarchical system of philosophy he considers politics, the study
of communities, to be of higher priority than ethics, which concerns
individuals. The title of Politics literally means "the things concerning
the πόλις (polis)". Politics (from Ancient Greek πολιτικά (politiká)
'affairs of the cities') is the set of activities that are associated with
making decisions in groups, or other forms of power relations among
individuals, such as the distribution of status or resources.
- Political
economy studies the interaction between politics and economics—how
political institutions, power structures, and decision-making shape
economic outcomes, and vice versa.
- In
Pakistan, politics and economics are deeply interlinked. Since
independence in 1947, economic growth, development, and reforms have often
been driven or hindered by political instability, governance quality, and
institutional capacity.
