September 13, 2024 (MLN): We can all learn valuable lessons from our fellow human beings. Students learn from their seniors, teachers from professors, employees from their bosses, and children from their parents. Similarly, policymakers should learn from the experiences of others, especially those who have successfully led their countries.

Indonesia's outgoing President, Joko Widodo, provides a shining example of effective leadership.

He oversaw a decade of sustained economic growth, averaging 5-6% annually, and is now peacefully transferring power to a new generation of leaders. 

In his final cabinet meeting, he emphasized the importance of maintaining continuity and avoiding disruptive policy changes.

Jokowi's decision to step down voluntarily, rather than clinging to power, demonstrates his commitment to the greater good. 

While his son's appointment as Vice President has raised questions about nepotism, it is also worth noting that there are no signs of dynastic rule, military coups, or religious extremism in Indonesia.

To draw comparisons, Indonesia has run a fiscal deficit of 2-2.5% on average in the last decade compared to Pakistan's imprudent 6-7% of GDP showing clear signs of fiscal mismanagement, excessive spending and inability or unwillingness to raise taxes.

Similarly, Indonesia's debt-to-GDP ratio has declined from a peak of 80% in 2000 to 35% in 2024 compared to Pakistan's increase from 80% to 91% of GDP in the same period.

The economic parallels dictate that strong leadership focusing on the well-being of the masses can truly uplift living standards from GDP per capita income of USD ~700 to USD 4,400 in 25 years. 

Pakistan, with its population of 250 million, faces numerous challenges, including poverty, illiteracy, and tribal divisions. Its leaders have a moral obligation to serve the people and prioritize their needs. 

By implementing policies that promote economic growth and reduce inequality, Pakistan can create a brighter future for its citizens.

Let us hope that Pakistan's future leaders will learn from the example of Joko Widodo and strive to build a nation where everyone has an opportunity to thrive.

The author is an independent economic analyst and writes on Twitter and Linkedin.

Disclaimer: The views and analysis in this article are the opinions of the author and are for informational purposes only. It is not intended to be financial or investment advice and should not be the basis for making financial decisions.

Posted on: 2024-09-13T12:31:38+05:00