LAHORE: What matters most to the business community? Democracy or autocracy? Most businessmen are least bothered about the political setup in vogue in the country as long as they are making decent money on their investments, background interviews with a number of manufacturers, exporters and traders indicate.

“A businessman is there to make money. He invests his money and takes known and unknown risks only because he wants to multiply his wealth. It doesn’t matter to him who rules the country,” an exporter says.

It is a common observation that most businessmen recalling Ayub Khan’s so-called development era with nostalgia as golden period in the history of Pakistan’s economy.

“Those were the perfect, business-friendly days. The economy grew by leaps and bounds in those golden days. Manufacturing and other sectors of the economy boomed at that time,” a second-generation exporter reminisces.

“No doubt he (Ayub Khan) was a dictator, but he did for the country that no other ruler has been able to accomplish ever since. All the gains achieved during the Ayub period were wiped out by nationalisation of the economy by the so-called democratic government of Z.A. Bhutto,” he says.

His views are echoed by a number of people from the business community with equal force. “What the business needs to flourish is political and financial stability, consistency of policies and early resolution of problems and issues hindering its growth. All these elements are more or less in place only when what you call as a dictator is ruling the country. No sooner a political, democratic government takes over, the situation begins to deteriorate. Political turmoil, strikes, whimsical changes in economic policies, delays in decisions on issues retarding business growth and problems of law and order overtake everything. The government gets busy in other things, which it finds more important for its survival,” says an office-bearer of the All Pakistan Hosiery Manufacturers Association (APHA).

Comparing Gen (Pervez) Musharraf’s early years in power with the present situation, he says, the business flourished and the economy progressed before the general elections 2002 because the government was more receptive to the issues that had stunted the economic and business growth in the 1990s.

“There was a consistency in the economic and business policies and stability was put in place to remove the hurdles constraining growth. An enabling and facilitative environment was provided, which resulted in investments to the tune of billions of dollars, quick growth of exports and a general economic wellbeing of the people. Once the political government took over the reins of the country, the entire scenario changed radically. The attitudes of bureaucrats and ministers, including those who were part of Gen Musharraf’s cabinet before the induction of the so-called democratic setup, changed. The government’s view about the business changed. And what do we have now? The manufacturers, exporters, traders and others crying for help to stay afloat,” he says.

But there are also businessmen who prefer a political, elected government as more responsive to the needs of business.

“Dictatorships always favour the selected few at the expense of the rest of the community. For example, we had 22 families controlling the whole economy during the so-called golden period of Ayub Khan. Besides, corruption was rampant and any one who wanted to start a new business or expand the existing one had to grease the bureaucratic machinery to get a license or permit. The ‘commission economy’ flourished as we had numerous middlemen helping entrepreneurs buy a license or permit,” says former Lahore Chamber of Commerce & Industry (LCCI) president Pervaiz Hanif.

He says only those who had made money at the cost of their community as well as common man can praise that era. “Barring Z.A. Bhutto’s government, when the economy was nationalised and mark you he did so because he had got the public mandate for that, the industry and business has flourished most during the civilian rules because democratic setups are always more responsive to the needs of businessmen as well as consumers. Besides, there is less corruption because democratic governments are under pressure to settle the business and consumer issues if they want re-election. Unlike dictators, the civilian rulers have to and they must strike a balance between the demands of the business and the needs of the common man. That is something which many businessmen do not like and favour authoritarian rule,” Pervaiz says.

“What matters most for the growth of business is good governance and a policy of checks and balances, which allows the businessmen to make a fair return on their investments without compromising the larger public and labour interests. And good governance can be ensured only when the country is ruled by a democratically elected government that is accountable to the people,” he says.