In part I (found here) and II (here), I reasoned, because the conventional wisdom gets Pakistan wrong, the recommended Western economic models will not benefit Pakistan. I argued, to harvest the majority of Pakistanis’ structure of behavior, styled after the institution Islam, as means to economic prosperity.
The simplicity series of articles are from my dire humanistic concerns. The series indirectly has concern for the stability of the world, because Pakistan is a nuclear country. The economic stability from wisdom insures the stability of the region.
In part III, the recommended system will achieve economic goals. Part III, utilizes data points from the previous two articles in an algorithm borrowed from a robotic vacuum cleaner for its decision-making logic to improve the economic quality of life in Pakistan.
A good algorithm repeats a process to ensure a task is completed efficiently. The vacuum cleaner’s algorithm uses artificial intelligence (AI) for cleaning the accessible space. The greater the accessible space, the larger a cleaning area it can map. The better the algorithm, the better is the path planning of coverage region (PPCR) in a room with minimal turns. –Source: ScienceDirect.
In the case of Pakistan, to improve economics, the algorithm works the new system, and is run repeatedly against the existing and future essential questions to complete tasks in the PPCR (Pakistan’s economic environment) that the algorithm grows. The converge region grows from AI and sensors.
The adopted algorithm’s input comes from three sensors. Sensor “A” deals with the essential questions. Sensor “B” overcomes the mafia cartel obstacle, and sensor “C” consistently thinks of making the PPCR efficiently larger and larger. This vacuum cleaner has a central processing unit—the Pakistan army.
In the current system, the algorithm assumes: A short run devaluation of currency; the ratio of Debt to GDP will “rise by 10%,” is statistically true for a developing country; a rise in deficits will give rise to unemployment; economic indices will not improve in a miraculous proportion to match the manufacturing economies of countries in part II; the IMF will mandate poor choices—increase taxes and energy costs.
In a robotic lingo, before the vacuum can start a task, the sensors must develop environmental model of the workspace. The sensors develop a workspace map from the data points (obstacles and guidance) found in the previous two articles for path planning. A refresher to some of the datapoints is provided below,
Pakistan is bipolar, where hope and tolerance can prevail as a strength; Pakistan army strengthens from corruption, but weakens the state; in the case of degeneracy, army’s strength will overcome weakness; to spend within means. solutions come from answering the essential questions; presence of mafia cartels; the essence of authoritarian rule works.
These sensors from logic have developed a habit of communicating with each other. Usually, they communicate about the unknowns in the environment to find the best and efficient methods for the PPCR. In this way, the PPCR can complete an important function—build future maps from the sensory data.
These sensors will take after the Islamic teachings by applying moderation, though harsher approaches could evolve. The unknowns in the environment will cause sensors to craft future essential questions, and can use additional Islamic institutional genetics to help with the PPCR optimization.
Before we un-box the new system of vacuum cleaner, it is interesting to note, this vacuum cleaner is not a debt generating workflow, and nicely conforms to “and spend out of what We have provided for them.” –Quran. In this case, humans are spending intellect in the shape of vacuum’s AI.
Similarly, before un-boxing, it is timely to address a housekeeping item that may clutter the PPCR. Here, I point out the pseudo intellectuals’ assaults on the Pakistan army. One, in my view is the shoddy intellectualism of Dr. Ayesha Siddiqa, that is likely resulted from a sponsored book by a U.S. think tank.
Siddiqa’s book has culminated into targeting the Pakistan army as a conglomerate business. Later, folks like Mr. Elliot Wilson, has recycled Siddiqa’s civil-discourse styled implant for The Spectator, where he singles out the “largest of the lot,” the Fauji Foundation.
Pakistanis do not benefit from these authors failing to surface the fact that Fauji Foundation operates under the constitutional charter of Pakistan, and pays taxes. Fauji is not a Pakistan army organization. Foundation’s original funding came from the WWII war reparations given to the soldiers of the Indo-subcontinent. Those men of honor on the Pakistani side donated their share to create Fauji Foundation, to benefit their future comrades.
It might very well be a decree of the sons and the daughters of those soldiers that have donated their share of war reparations to forbid the overflowing “modern intellectuals’” of “intellectual terrorism” in their criticism of Fauji Foundation.
In 2014, I had the opportunity to interview Fauji Foundation’s entire board of directors, and a few CEOs over two days. Fauji is an immaculately run foundation with opportunities for improvement, is dedicated to maximizing stockholder’s equity. Its key benefit, veterans are not abandoned.
Fauji benefits from the institution of Islam’s traces (believers, hope and spend.) It shares a common success factor with the institution of the nuclear science—its success comes from running in isolation from the weaknesses of Pakistanis. The algorithm makes note of it for future incorporations.
Now we can turn on the vacuum cleaner to run and develop a new system. Before it can start a task, sensor “A” will initialize to develop the environmental model of the work space. It will grab hold of data—the essential questions from part II. Those are, a) What is one thing Pakistan can do that will enable a destitute in making a financial transaction? b) What is […] can do to maintain the intrinsic value of the financial transaction created in ‘a’? c) What one thing Pakistan can do where manufacturing cost of goods produced may fall in the short run, but will definitely fall over the long run? It formulates the following path:
a) One can originate a financial transaction among the destitute on the basis of a Japanese principle, of Fureai Kippu. These are computerized currency credits given to those in Japan that provide caring service, and has a positive impact on society.
In the case of Pakistan, similar credits for various services (health care, education, and expanding the program,) are spent in a private market via a clearinghouse. These credits will substantially pay for itself in a geometric progression from its default property of full participation in a taxation system. Digital currency also severs the corrupt link between the taxation department and the tax payers.
b) Maintaining intrinsic value of any financial transaction or Fureai Kippu, which is a digital dual currency, is possible when it is tied to physical gold as in a gold standard.
A gold backed dual currency, digital it may be, is key to economically distressed countries. Gold backed currency holds the property of Dinar of the golden days—it lends a proven history.
These digital credits will become the second currency in a dual currency across Pakistan. For a good reason, Pakistan’s digital currency is not a legal tender. This means, it cannot be used for settling legal debts.
Digital currency is a wilt on the vine technique. It’s gold-backed reserve wilts risk and the undesirable. During hyperinflation, people will replace using native currency to foreign. As an example, learn from the harmful process in Zimbabwe’s de jure dollarization.
c) Cost of goods produced will constantly go down if gold reserves are placed against buying raw materials. Basing a cost modeling for a soccer ball over a certain fifteen years trend, where gold had appreciated 335%; in the year-one (2019) the ball would cost 3.33 Oz gold, and the same in the year-three without factoring additional rupee devaluation, its manufacturing cost will drop to 2.08 Oz of gold in comparison to its cost if it was produced with purchasing materials in rupees (fiat currency) that face inflation and devaluation.
South Korea, in an effort to bring down the cost of goods sold, opted for centralized purchases of certain imported raw materials. Volume purchases benefited from competitive price. Centralization is a wilt on the vine technique benefiting Pakistan.
If you noticed, sensor ‘B’ from the Islamic principle of moderation has not addressed the mafia cartel even with a moderate approach. It has also not addressed the mafia cartel because the algorithm ran independently of the current obstacles of the cartels in the PPCR optimization runs.
When necessary, sensor ‘B’ will communicate with sensor “A.” In which case, “A” would formulate other essential questions to expand PPCR. Like,
i) What is the one thing Pakistan can do to address external debt? Or
ii) What one thing Pakistan can do to make the mafia cartels (Media, some 300 business owners, two thieving politician families, many maulvis and judges with bad faith) wilt on the vine? Or
iii) What is one thing Pakistan can do to wilt Article 18 on the vine or cultivate it to the States’ advantage? I leave it as essential quiz questions for Pakistan.
To answer “i,” floating gold-backed digital currency is a wilt on the vine technique to address external debt for a few reasons. One is, the typical inverse value correlation between gold to dollar. Dollar fails to compete with gold value.
To answer “ii,” a digital currency will wilt corruption incentives among the mafia cartel. When prosperity in the economic quality of life from a gold backed digital currency is achieved, people can afford to shift focus from their economic struggles to checkmating the mafia cartel.
In the second cycle, sensors “A” and “C” communicates. Greater services are identified to participate in the digital currency. Participation in services generate a greater tax volume. In which case, new broader taxation of a lesser burden on people becomes a relief for reducing bad taxes, like on energy and fuel.
In the third cycle, sensor “C” substantially increases the PPCR work plain from sensor “B’s” wilt on the vine logic. That is, any move that brings prosperity to people is a threat to the mafia cartel.
Therefore, the algorithm consolidates sets-of-assets under a bank’s ownership. For example, all of the Fauji Foundation’s assets are now under the ownership of Askari Bank, which in 2014, was managed by Fauji. This bank opts to operate on the Islamic principle—sharing profit and losses.
These banks can pay out substantially larger profits Vs the banks’ current up to 9 percent interest rates. As a result, these banks can competitively attract the world’s foreign exchange deposits. Deposits will strengthen fiat currency and wilt foreign debt.
In the case of Fauji, a thought could prevail then to assist with paying off Pakistan’s debt, and if desired, from corporate responsibility, to look after the wellbeing of the people. Fauji would benefit from a goodwill gesture.
In the fourth cycle, sensor “B” applies additional wilt on the vine logic because these cartels are not oasis. Prosperity from Askari type ventures will wilt these false oases, including some of the uncompetitive banks.
Adopting a new finical system is foreseeable, just not in Pakistan. The vicious circle of fiat currency debasing has begun in the West. When a monetary system fails, which it has, the Fed adopts a measure of Quantitative Easing (QE) – Prints money. Then Fed buys a fixed amount of treasury bonds. When QE fails, the Fed resorts to a more drastic measure—maintaining bond Yield Curve Control (YCC). Here, Fed buys unlimited amount of bonds to maintain a capped bond yield. Australia’s failed YCC effort has lessons for other Central Banks.
Islam has a solid economic system. Lombard views the Muslims of the past as the “masters of gold.” The Muslim economics gave the world reserve-currency that “unified the Byzantine and [Byzantine’s arch-rival Sassanid, the] Sassanid monetary system.” In Lombard’s view, the Muslim world gave an economic shock to the world of consequences. –Source: Abdallah Zouache; Oxford, 27-28 October 2017.
By the end of the fourth cycle, the algorithm would have sufficiently benefited from the efficiencies that come from Islamic institution that has no-cost. In Nobel prizewinner Douglas North’s view, the lesser the institutional cost, the more efficient is the institution, which he once promoted. –Source: Id. From institutional efficiency, the algorithm in subsequent cycles can reach out to the silos of external data to expand the PPCR.
For instance, sensor “A” can diffuse external knowledge unto itself, by what is now found in the European institutional concepts, by coining another essential question. What is the one thing Pakistan can do “to attract the most efficient merchants.”? Read Braudel’s scholarship about the 1288 decree “published by the Mamluk authorities.” It was later copied by the Europeans. Source: Id.
In the new system, Pakistan can very well accomplish many of the features of CPEC by running the algorithm, and reach out in a decree to the efficient merchants—China in the case of CPEC.
China is a ‘believer’ and is spending, but China’s spending on CPEC goes against the grain of the economic fundamentals of Islam when it is applied to Pakistan. Pakistan is borrowing, which is not spending from what He “has provided for them.” –Quran.
The readers are left to ponder over the cliché, “absolute power corrupts absolutely.” The Fauji Foundation/Askari may compete to become the absolute economic power. China is an absolute power, and has taken millions out of poverty. South Korea’s model is flourishing under an authoritarian rule.
Wall Street is an absolute power. Similarly, strengthening Fauji conforms to the Western business methods—mergers and policies, and the wilting methods are taken again after capitalism, which has wilted the middle class on the vine while sparing the one percent rich. No hearts should sadden to wilt the Pakistani obstacles on the vine that includes the faulty judges.
The example of China is before us. In Dr. Yukon Huang’s view, government corruption in China strengthens the State. Similarly, if wilting the mafia and obstacles, in the PPCR is remotely equated to corruption, it will strengthen the State of Pakistan.
Should solutions fail to financially revive Pakistan; Pakistan will plummet from debt stress. In the absence of better scenarios, Pakistan army will be left to adapt to a controlled civil war. The evidence of the civil war like experience is there. The Swat Valley crises from 2007-2009, was triggered by Musharraf, which can be argued was an outcome of his weakness that complied every time to foreign instructions.
One of the outcomes of overcoming the Swat valley insurgency (controlled civil war) was the real estate corruption of the Pakistan army that has strengthened the army and the State. From Swat operation, the army was able to purchase real estate at a nickel on a dollar, and now has a military garrison in Swat.
In a controlled civil war, where there is a partial failure of legal tender laws, the reverse of Gresham’s Law will apply. Good money (gold-backed digital currency) will drive out bad. Sensor “A” will prompt “C” to prepare for Gresham’s Law to play out to help strengthen the economics of country.
A shutdown sequence in a controlled civil war will attempt protecting businesses and factors of production. The institution of hope reminds Pakistan, she In Shah Allah cannot fail. In the case of a failure, the interested landing parties will have to salvage Pakistan.
Can Pakistan “rise like a phoenix […] No one could have witnessed what you did to me […] Once I’m reborn.”?
Absolute wisdom is for the divine. As far as the central processing unit of the algorithm—the army rebirthing a country; for one soldier who has departed his ranks, unequivocally believed, a solder must be “loyal to his profession” and his country. –Source: Brig. Gen. M. Hamid-Uddin, Looking Back.