It is shocking to find out that the countries of the Arab Gulf
account for 70 percent of Arab military expenditures. That is equivalent to $29.5 billion, which represents 11.89 percent of the GNP of these countries. While military expenditures are increasing, the economy of these countries is deteriorating due to the lack of stability in the oil market. This awkward situation raises the question: Is it possible to transfer the burden of military expenditures into a vehicle for development?
In recent years privatization has emerged as an economic process, which helps reduce the governments interference in
commercial activity and allows the private sector to emerge as a powerful and less dependent financial entity. In Pakistan too, privatization has been regarded as one of the main instruments to bring about a desired change in the economic power structure. How far this process has been successful is a matter of debate but one thing is surely settled that privatization alone as an economic policy measure cannot be regarded as a panacea for all the economic ills faced by Pakistan today. However, it can play a supplementary and a very important role in our economic revival if pursued honestly, diligently and pragmatically.
Today's complex production process may seem difficult to analyze, but they need not be. Understanding the nature of the production process will help to answer several economic questions. Why is the Unites States more developed than Thailand? Why is the Dutch Mark more valuable than the Turkish Lira? Why does Britain import clothing from China and China import machines from Britain?
