Historical Account of Nations’ Growth Performance : A Case of Pakistan

Developed countries pursue different policies for their growth trajectory. For some, there was no government intervention, and purely financed by private enterprise. For others it involve active government planning and investment. Developing countries had ‘advantage' of backwardness. They were not involved in cumbersome process of inventions and rather borrow policies and technologies from developed world. Hence, they follow similar strategies as followed by developed world however it was revealed that there were no signs of convergence. Furthermore, the policies pursued for convergence actually result in divergence. As in case of Pakistan, policies from openness to strict government intervention was followed, but they all failed to put the economy on a sustainable growth path. Hence, the key to economic success lies in factors other than economic policies. It requires a deeper understanding of the inherent structure of the economy. Some of the factors highlighted include Institutions, Financial development, Infrastructure, and Human and social capital