All states in the modern world are governed in large by an elected government. The political decisions that governments take effect the economies. The political ideologies define the economic state of the nation. The two most important systems prevalent in the world today are the capitalist and the socialist economies. Both do not exist in their purest form. A capitalist country would not have all economic policies based on the concept of a free and unregulated market. A capitalist country merely adopts more rules that create a comparatively free market. However restrictions are still in place that keep the markets in check.
An analysis of the economic policies of a government gives us an insight of their respective performance. Most economic variables that are effected by the policies effect the life of the ordinary man and hence holds vital importance. The prices, unemployment and the availability of resources are all economic variables whose direction is determined by the policies of the government.
Pakistan's dismal economy sheds light into the performance of our governments. We as a nation have failed to produce leaders that can bring prosperity to the nation. Most of our economic decisions are based on the self interested minority. Unemployment, a rise in the prices, deplorable living standards are just some variables which highlight this point. Our economies hinges more towards capitalism where the state tries to stay clear of the industries in order to create free markets. The problem is that it also restricts and contradicts its policies by enforcing regulations as well.
We have for a majority of our existence used economic policies for our own advantage. "Our own" refers to the minority of elites that reigns supreme over the majority of the poor masses. The sole purpose of an economic system is based on the distribution of wealth among the masses. The poverty level and the unemployment level of the state speaks volumes about the policies that have been adopted by our nation. We need a system that we stand by in all times and not when it suits the ruling class. A truly representative economic system should be in the best interest of all and not a few.
As you have correctly pointed out, the economic condition of a country is actually a reflection of its political scenario. The rise in prices of commodities and hence, inflation is not only a result of our currency's depreciation but also but also the increase in money supply resulting from excessive printing of cash.
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