Re: Destroyed by Z.A Bhutto - the golden economic legacy left by Ayub Khan?
British rail is an example.
What an example. How come? British Rail was Nationalised in 1948 (that at the time was considered as essential service and of strategic concerns) and then Privatised in 1994-1996. UK nationalised industries that were going bankrupt (or could have gone bankrupt) and were of strategic concerns, thus their survival and existence was important for the country.
Bhutto did not nationalised industries because they were going bankrupt and their existence was national strategic requirements. Bhutto nationalized industries that were big and were running in profit, but Bhutto wanted to break industrialist influences and to give jobs to his workers without merit, resulting in complete destruction of those industries.
For instance, Pakistan shipping industry at one time was envy of developing countries. Pakistan had dozens of ships sailing under Pakistani flag and after taking care of all Pakistani trade, was providing services to other countries of the region. Bhutto nationalised shipping industry resulting in complete destruction of Pakistani shipping industry. PNSC as government run shipping company was always running on loss became almost bankrupt. Within few years of nationalisation, Pakistan started depending on foreign ships for Pakistani trades. Now, no one wants to start shipping company using Pakistani flag. Today, most ships owned by Pakistanis are registered in Panama or other countries. Thus today, Pakistan spends several billion dollars on shipping cost for Pakistani trades alone.
Pakistani banking industry was progressing fast and was again envy of developing world. Banks like Habib Bank, United Bank, Muslim commercial Bank, Allied bank etc were growing fast, but Bhutto nationalised banking industry resulting in creating incompetent banking service used for give jobs to political workers and take political loans (to get written off later). The person that started UBL (Agha Hasan Abdi) who could have taken UBL to world top bank height, was sacked (later he started Bank of Credit and Commercial International, that at time became biggest privately held bank, but as it started bailing out some third world countries, especially some south American countries against western political interest, due to western conspiracy was declared bankrupt). Nevertheless, Pakistan banking suffered and all banks started incurring huge losses, and were surviving on government bailouts.
Instead of improving public sector education institutions, Bhutto nationalized most privately held schools and colleges that affected education standard of Pakistanis, such that at one time, Pakistan education standard became almost zero. It also stopped all private funds coming into education and shattered the confidence of investors investing in Pakistani education sector. Private fund started coming back into education sector when Zia allowed that.
Actually, Bhutto nationalized many industries resulting in them getting destroyed in public hand under incompetent management and corruption (in private sector, an employee or manager cannot do corruption not could be incompetent, as owners are always looking at things and would sack incompetents and corrupts and could even send corrupt managers to jail).
Overall effect was that, many industrialists became bankrupt, many left Pakistan never to invest in Pakistan again, and no new industry got started in Pakistan, other then some politically motivated public industries (that were marred with corruption). Thus, in this way Bhutto destroyed Pakistan industrial and education sector both.
When Zia came, people confidence returned (not completely but to an extend) and that is when new industry really got started in private sectors again, that started giving boost to Pakistan economy, and that is the reason we see GDP growth of Pakistan becoming reasonable after ousted of Bhutto and arrival of Zia.