Conflict between social structure and legal framework: political corruption in Pakistan

There is a growing body of literature on the conflict between social environment and legal system. This article seeks to unravel the contradiction between Pakistan's anti-corruption laws and its social world. The study of this uncharted territory becomes even more urgent when the consequences of corruption are taken into account in the broader context of Pakistan's internal cohesion, democratic development and sustainable growth. Despite the fact that Pakistan inherited a British legal framework based on the division between public and private spheres, the article argues that a greater part of Pakistani society does not recognise such division. The split between public and private realms which provides a conceptual framework for any definition of political corruption seems culturally deficient. In particular, the paper attempts to demonstrate that ethnic loyalties by taking precedence over the public interest give rise to the ‘moral view of corruption', which explains why many people do not view the use of public office for ethnic gain to be an act of corruption. In these particular circumstances, the paper finds an underlying conflict in the treatment of corruption between the social and legal systems. The disparity between the legal system and social world has given rise to grave concern on the part of civil society.     

Financializing the poor: ‘dead capital’, women’s gold and microfinance in Pakistan

This study examines how Pakistani microfinance banks’ (MFBs) collateralized microcredit arrangements take advantage of the cultural centrality of gold in women’s lives. In so doing, it contributes to the wider debate on financial inclusion and financialization. The product, processes and narratives examined are a local manifestation of global finance’s emphasis on engaging commercially viable means to bring previously ‘unbanked’ populations within its fold. Based on fieldwork in Lahore and Karachi, two of Pakistan’s largest cities, this paper highlights how the ‘financial inclusion’ agenda of microfinance has effectively financialized the lives of poor Pakistani women. Our analysis finds that Pakistani MFBs draw on patriarchy’s hierarchical norms and the precariousness of low-income living in ways which bolster their own financial positions. This is supported by the country’s central bank, which has granted collateralized microfinance products a ‘risk-free’ rating, easing the path to the financialization of jewellery which in a South Asian context is directly associated with women’s social standing and economic security. The outcome is a deepening of deep-seated vulnerabilities.