Posts Tagged ‘Corruption in Pakistan’

Game Over

The now and then rising problems of inflation of commodities and the people behind the viel.

The vast majority of population of Pakistan is not enough aware to sort their needs, else they would have solved most of the problems without even expecting anything from the government or the people who they depend upon.

When their is an inflation of commodity the media, bourgeious and well off people come up with the most commonly used sentenced,”stop buying the commodity and the prices will fall”. But will anyone will stop buying that commodity?
Commodities like sugar, wheat, oil e.t.c are commodities of needs not desires. Population earn their living through them, how can anyone abstain from buying it just like that, without the alternative.

Government tries to solve these problems, in its own way by introducing innovative ideas to tackle the repeated problems and every time failing. Government are formed to benefit the people, especially countries with the population with the awareness level like our depends heavily on the government to grow and mature.

People who are part of the government are either feudals or industrialists. Who are elected by the people to represent them and solve their problems. Those who are part of the governement are aware of the needs of the people because government have all the statistics on economy.

Now, at present the current commodity on which the market is running low is sugar. The actions which have been taken are change in policies, formations of commities, message spread throught the media e.t.c. There is a question to be raised here, if their is a shortage of any commodity in the market, why don’t government reduces its supply in the first place? Besides, that all the intelligentsia expects illiterate and uneducated people to understand their needs.

If the supply of sugar is reduced and sold at the original price, that will not only result in maintaining the prices along with that government will be able to solve the issue more rapidly. The news with that decision must be spread like this,”Inorder to control the prices of the sugar, we have reduced the supply which will definitely benefit the public in the future”. But why government doesn’t take such actions?

Let’s see things from the governments perspective for the moment. Government is aware of the nature of the people, government is aware of economic statistics and they have all the power. Now, by making policies government shows that they are trying but the issue due to the hassle and irrationality of the public cannot be solved. People blaming the government, government blaming the people with out any actions. Mean while all the surplus amount goes into the bank account of industrialist or feudal. Apparently authorities tried their best, people are convinced that its a corrupt environment and all the money in the bank account, problem solved.

In order to present the idea more realistically here is an example,

Suppose Mr. X is an industrialist as well as politician, selling sugar at Rs. 40/kg. The total aggregate demand of sugar in the market is 1 billion.That gives Mr.X the total sales of 40 billion. Now, he starts the supply of sugar at Rs. 70/kg and reduces the supply to 0.5 billion. Now he would be earning 35 billion along with the decrease in production cost and increase in profit.  Now, he have to cover his tracks from the auditors, media and people. Well, I already mentioned how to cover up the tracks. Their will be no such thing as evidence, money can buy anything.