Big Capital in an Unequal World: The Micropolitics of Wealth in Pakistan

by Rosita Armytage

Inside the hidden lives of the global “1%”, this book examines the networks, social practices, marriages, and machinations of Pakistan’s elite.

Benefitting from rare access and keen analytical insight, Rosita Armytage’s rich study reveals the daily, even mundane, ways in which elites contribute to and shape the inequality that characterizes the modern world. Operating in a rapidly developing economic environment, the experience of Pakistan’s wealthiest and most powerful members contradicts widely held assumptions that economic growth is leading to increasingly impersonalized and globally standardized economic and political structures.

Genres: Pakistan, Nonfiction, Politics, Economics, Anthropology, History

297 pages, Kindle Edition

Published January 10, 2020

Reviews

[Asim Bakhshi · Rating 3 out of 5]

It starts with a great promise and grips well, but the narrative slowly disintegrates and eventually leaves the reader with short-lived bursts of admiration. I would call it a lost opportunity since a lot of hard work must have gone through in field research, but execution could have been a lot better in relating those stories to the sociopolitical theories of dynamics of capital.

There were some very interesting points that were merely touched and weren't unlayered to their full potential; for instance, the point made towards the end that Pakistani elite disregard the state as a moral actor, and thus reduce the ethical requirement to follow edicts.

[Lisa Boyd · Rating 5 out of 5]

As the title of this book suggests, it is not a “book at bedtime”! It demands, yet rewards, close attention from a general reader such as me. In 2014 Rosita Armytage was a single woman in her early thirties who, against the advice of her academic mentor, embarked on a long-term field study of the economic and political elite, the “1%” within Pakistani society; that is, those family businesses which generate at least an astounding US 100 million dollars in revenue per year. She set out to discover how this group had created and sustained their wealth. She did not use established formal interview techniques, but explored this society from the inside, as an anthropologist.

Armytage’s writing style is clear and accessible. For me, this work came to life when she described her encounters and experiences with elite Pakistanis, many of whom became close friends during her field work. She discovered early on that she had been carefully profiled by security forces, before being admitted into the almost exclusively male social circles she was allowed access to. Over time, she gained trust among political, military, and business connections. She attended elite parties and weddings. She visited factories and held long discussions over lunches and in cafes. The quotations she gleans are often striking, and gave me insights into a Pakistan which surprised me – a country holding onto its colonial past while simultaneously breaking free and striking out into the future.

But the main thrust of this work is focused on exactly how and why the elite have gained and maintained their wealth, despite, and often because of, the intense political and economic insecurities of life within Pakistan. In the face of these challenges, they have formed self-protective networks which have enabled wealth to be held by a handful of families. They have created inter-familial alliances through carefully selected marriages, developed close understanding of each other through long-term networking and socialising, and organised a closely controlled environment of selective inclusion, and rigorous exclusion, of those who do not fit the accepted social mould of the ‘1%’.

Armytage proposes that this society flies in the face of the widely held belief that economic growth is leading to impersonal and homogenised structures within developing countries outside the Western world; rather it is a highly personalised and regionalised way of doing business. She further argues that Pakistan is not unique in this, but it is an extreme example of how this form of elitism both contributes to and shapes the inequality so prevalent within the modern world.

Further, she notes that rapidly developing countries such as Pakistan are not turning to the West to be their business allies, but to countries such as China, whose mode of doing business, through long-term social connections, is much more allied to their own. The West, in contrast, is viewed with distrust, as one of many pithy quotes shows: “Goras (white people) are unreliable”, says one of her elite business ‘informants’. “They are always working for their own satisfaction. They are selfish… Now I know what they are really like, I am more cautious.”

Big Capital in an Unequal World is not simply a dry academic treatise. It has practical, thought-provoking implications. It may well make you question your underlying assumptions about how capitalism works, and what the future holds for the West. If we do not simply wish to be left behind, I believe that the ideas in this book could be well worth taking to heart.

[Skye · Rating 5 out of 5]

There are three excellent non-fiction books on contemporary Pakistan. A “Pakistan: A Hard Country” by Anatol Lieven is an old favorite, Declan Walsh’s more recent “The Nine Lives of Pakistan: Dispatches from a Precarious State” is great fun. Dr. Armytage’s book, “Big Capital In An Unequal World,” is more lively than the former and more insightful than the latter. Her analysis of high society illuminates an economy where state capture is the path to generational wealth and a politics whose instability insulates the elites from outsiders. Unlike much contemporary analysis of Pakistan, Dr. Armytage hews to the fundamentals of the economy, politics, and the state, and doesn’t get lost down the cull-de-sacs of terrorism, religion, or the civilian-military divide. Highly recommended for anyone trying to comprehend this commonly misunderstood country, and relevant to other countries ruled by an extractive state.

[Fatima Hayee · Rating 3 out of 5]

Rosita Armytage's book , "Big Capital in an Unequal World " , is an ethnographic study of elites of Pakistan. The author has described about the emergence of the business elite prior to the creation of Pakistan.These merchants made fortune during the mutiny of 1857 and later during world war I and world war II. After the partition, a vacuum of industry was observed which was later filled by providing incentives to Gujrati traders. During 1947-52 , rupee was overvalued so that industrials can import heavy machinery at cheaper rates. In the mid 1950's , Pakistan Industrial Finance Corporation ( PIFC) was created. Elites established alliances with bureaucrats to operate the institution in their favour.Later on , Ayub's Planning Commission decided to relocate the nation's capital from Karachi to northern Punjab in 1960's.During Ayub , a ground was created where the business elite was used by military for support and funding. A patronage relationship between elite and military was observed at this stage.The loss of East Pakistan affected the fortune of many industrialists.Bhutto's nationalist policies increased the number of medium sized business groups. During Zia ul haq regime , itefaq group was expanded and power was shifted from Karachi to Punjab.Relatives of Punjabi military officers and Punjabi bureaucrats rose to prominence.During these transitions of government, many elite families have lost their fortune . Only few have been able to maintain their wealth.According to author , the business families prefer to make marriage alliances with high ranked military officers to insulate themselves from from outside threats. The main reason of survival of the elite in Pakistan is their inter networking , alliance making and socialization.The elite controls the state apparatus and exempts themselves from tax by using these connections.The elite school like Aitcheson College serves this purpose of networking.There is also ethnic cleavages among the elite of Pakistan. The author later on describes the lavish parties and clubbing of the elite.

Overall, it's a good book and I find it too short . I wish the author has discussed more aspects of Pakistani elites in detail. The main focus of this book is how elites utilize their friendships and information sharing to expand their empires.

Giving it three stars

[Farwah · Rating 3 out of 5]

When released, this book was the talk of the town - quite literally - with Armytage making an appearance at Karachi Literature Festival alongside the legendary Ishrat Hussain, and even, arguably, Pakistan's most renowned podcast. Everyone wants to know what lay behind the private parties and guard-clad Hiluxes.

At a time where the connection between the practices of the 'elite' and the failure of governance and policymaking are almost vernacular, this book is worth the read - but sadly unmemorable. Having just put it down, I'm scouring a tangle of borderline salacious descriptions of parties, private conversations, boastings, and the documented je ne sais quoi airs of Pakistan's ultra-wealthy. Extracting meaningful analysis or critique of the country's crony capitalism, empowerment of the wealthy through a curated social exclusivity, gendered classism (or anything the book claimed it would tap into) is a task.

Armytage - an anthropologist through and through - is clearly a keen observer of human behaviour, and has painstakingly documented both fieldwork and historical context. However, one realises that she relies exclusively on her observation for the majority of the book's contents. The book appears to be written for mass publication, and therefore, the analytical rigour is compromised. It's the first and last chapters, and the conclusion, where the reader is provided a conceptual framework by which to make sense of the rest. Having understood it as intended for commercial consumption, it does its job relatively well. It validates much of the urban legends surrounding the elite creature, but provides no perspective on how we can begin to rethink Pakistan's many policy failures that have enabled it to metamorphosize into a seemingly untamable beast.

[Sherdil Shehbaz · Rating 4 out of 5]

In her splendid work ‘Big Capital in an Unequal World: The Micropolitics of Wealth in Pakistan’, Rosita Armytage, an anthropologist and political scientist, explores the elites of Pakistan in a detailed manner. She conducted numerous in-depth interviews of elites to produce this extraordinary and comprehensive book. The author has also substantiated her ideas by providing a plethora of references of sociologists and political scientists.

Introducing her work, the writer briefly explains the perspective of elites regarding their own selves and also sheds some light on the division present in the elites themselves. Those, who accumulated wealth in the post-partition era, call themselves the established elites, while those, who have gotten rich in the recent times, are referred as the Navaye Raje or the new rich.


For a full review: https://timesglo.com/big-capital-in-a...

[Haris Niazi · Rating 4 out of 5]

The book is well-researched and hits home with every chapter. Middle class Pakistanis obviously knew most of the things mentioned in the book i.e. Elites manipulating the system in their favor, the elite-military-bureaucratic-political nexus, and the colonial roots of the aforementioned, however, the research authenticates these realities.

[Muhammad Arqam · Rating 5 out of 5]

A very comprehensive and well thought-out case study on Pakistani Elite Class system, it's origin, and it's way of working. Loved it!

[Markus Bell · Rating 5 out of 5]

This is a compelling, ethnographically rich account of how the global elite get rich and stay powerful. Focused on Pakistan's 1%, Armytage provides impressive insights into how family networks and old boys clubs allow money to be made and passed on through the generations.

This book challenges the conventional wisdom of Western capitalism colonising and homogenising the world. Critically, the work is brought to light by the author's refreshing reflexivity and captivating anecdotes of the businessmen, politicians, and wealthy women who befriended -- and sometimes scorned-- her. Great read, definitely recommend for anyone interested in both (or either) how the fat cats get fatter and contemporary Pakistani life.

[Emily Longshaw · Rating 5 out of 5]

A well written, well researched fascinating read that contained an incredible amount of information that was very accessible to the layperson.

[Danika · Rating 5 out of 5]

A fascinating insight into the world of the Pakistani elite. An enlightening, thoroughly enjoyable read!

[Bilal · Rating 4 out of 5]

Very interesting view of Pakistani elite from an anthropologist. I’ll recommend anyone who’s looking for insights into how Pakistani elites live and work. Great work.

[hajrah ♡ · Rating 4 out of 5]

3.75. her research participants lied to her, there is no anthropology masters program offered at LUMS.

no one networks quite like the affluent.

[haris · Rating 4 out of 5]

A quite insightful read, but took me more than 2 months to complete (which clearly indicates how much I struggle with non fiction lmao)

[Waqar Hussain · Rating 4 out of 5]

I picked up this book as soon as it hit the shelves in Pakistan. The elite capture of Pakistan's economy is not a new subject and a lot has been written about it. However, this book promised to be different. And it is. For one, this is an ethnographic study of the elite. It takes you inside the Pakistani elite's living rooms, clubs, weddings, and exclusive parties. Not just that. The book also takes you inside the mind of the elite in Pakistan and you learn about their motivations, predispositions, and inclinations. The writer, Rosita Armytage, spent 14 months of ethnographic fieldwork in Lahore, Islamabad, and Karachi between October 2013 to January 2015 and spent time with wealthy businessmen and their families and friends both in formal and informal, often private settings. For inclusion in her research, she chose a baseline revenue generation of a minimum of US $ 100 million per year. She interviewed 92 such businessmen. Rosita is careful however in keeping the real identities of these businessmen their family and friends concealed and uses fake names.
I will be writing brief notes about each chapter so this is more a note-taking than a review.
The first chapter of the book titled ' Middle-class woman in an elite man's world' talks about the relative ease with which the author was able to get access to the inner sanctum of the elite world in Pakistan. She owes it to her outsider status and unique position as an Australian, middle-class, academic, white woman. However, it was not always smooth sailing and she has interesting anecdotes to share.
The second chapter is called "Creating and protecting an elite class" and it traces the history and genesis of elite families in Pakistan. Rosita identifies five major historical events during which the current major business families in Pakistan rose and found rapid upward social mobility. They are namely a) Anglo Indian Wars b) 1947 Partition c) 1971 Separation of East Pakistan d) 1972 Nationalisation d) 1980s military-dominated rule. This chapter also gives us the story of early established elites such as Adamjee, Dawood, Habib, Isphahani, Syed etc, and how in the early decade after partition, policies such as over-valuation of the rupee and import substitution helped the consolidation and further rise of Muhajir(largely Gujrati) Industrialists with Karachi as the center. Bureaucracies in institutions such as PIFC and PIDC facilitated these businessmen in securing financing, approvals, etc. Ayub era is marked by the rise of Punjabi Industrialists as the capital was shifted from Karachi. Restrictions on imports were reduced and it became easier to import machinery and raw materials. Tax concessions were given to the sectors where there were largely monopolistic Punjabi industries. Ayub also curtailed the powers of the landed political elite. Besides land reforms, he also imposed stern measures against hoarding agricultural items and this resulted in a decrease in the cost of raw materials for industrialists. In the Ayub era, the business elite began to serve as a powerful support base for military rule and remained a powerful constituency for the military ever since. This also played out in later protests against Ayub regime in terms of labour strikes. After Ayub, a major reconfiguration of the elite landscape took place due to the 1971 war and 1972 nationalization. 1971 war had a devastating effect on those West Pakistani industrialists who had substantial assets in East Pakistan. And in 1972, the businesses which survived the 1971 war suffered major losses due to nationalization. The major exception was the Textile industry as textile was not nationalized. Similarly, other medium-sized groups scaled up. Nationalisation, therefore, created a new class of business elite. Later, Zia incorporated industrialists and landed elite into the assembly to minimize possible opposition. He also reprivatized some of the nationalized industries. However, the most salient feature during his regime was the expansion of small-scale producers as a result of broadened access to credit after years of loaning only to large-scale industrialists with close ties to the government and senior bureaucrats. However, the old elite was not all happy with Zia due to a number of reasons such as his overtly Islamic agenda, his deregulation of a number of monopoly industries such as sugar, fertilizers, and pesticides, increasing income tax, etc. Moreover, during the Zia era, the shift of wealth and power from Karachi to Punjab accelerated through a range of policies preferential to the province which was a stronghold of Zia's own military supporters.
Chapter 3, 4, and 5 is where the ethnographic lens comes into play. Chapter 3 is titled " Old money, new money'. This chapter talks about markers of difference between old established elite and new wealthy families with an emphasis on social assets such as education, intellect, lineage, dress, and mannerisms. It talks about the role of elite schools such as Aitchison and private clubs such as Gymkhana, Punjab Club, and Royal Palm in Lahore and Sindh Club and Boat Club in Karachi and how these institutions are used to police the elite boundaries.
Chapter 4 is titled "Making an elite family" and it sheds light on the functional role of marriage within an elite family. It is used to either consolidate elite power or expand it. An interesting and perhaps counterintuitive fact is that cousin marriages are very common among elite families. This is done to ensure that wealth remains within the family and to ensure that family business feuds in the second and third generations are avoided. Therefore, in the liberal elite families, under the veneer of openness, the practice of marriage remains policed.
Chapter 5 is called "The elite network' and it has some of the best anecdotes. This chapter discusses how the elite carefully cultivates transactional relationships while striking a delicate balance between their affective and instrumental nature. The chapter discusses the culture of elite parties and their role in networking. When you read about it you feel as if the culture of networking with its many subtleties has almost been elevated to an art form.
Chapter 6 is about "The culture of exemptions". It discusses that the rules are only for the less connected and less powerful in Pakistan and how big businesses operate in the extra-legal territory. The elite cites the immoral and unpredictable nature of the state as a justification for their illegal and extra-legal actions. This chapter also discusses Muhammad Ashraf Tiwana vs. Pakistan etc case as a classic example of regulatory capture and cites a number of examples where the law has been used as a political tool.
In the last chapter "Conclusion", Rosita locates the structure of the Pakistani elite in the overall framework of global capitalism and makes important observations. At the time of her research, Pakistan's growth numbers were good enough and these elite businesses were doing good for themselves. And yet, she maintains that the economic growth in Pakistan is not changing the configuration of elite domination because it is based on patronage networks as opposed to the personalized, rule-based, efficient business model. The chapter also rejects the notion of 'self-made success' not just in the context of Pakistan which is understandable but even globally. It also discusses how the elite in Pakistan shows remarkable integration despite ethnic and political and institutional differences. Rosita also makes an interesting, counterintuitive point as to how the elite in Pakistan benefits from the perennial instability. It is in this unstable, ever-shifting environment where they can leverage their connections, roots, and local understanding to make maximum profits and it is precisely this climate of fear and uncertainty that keeps new entrants and especially foreign investors from entering the murky waters of business in Pakistan. As a result, the local elite always has the advantage and even if foreign investors show interest in the Pakistani market, they have to navigate it through the local elite.

Overall, this book brings on record something that is already a lived experience of all Pakistanis. We have all come to believe and almost accept the elite capture of our state. This book does well to put a microscopic lens on the lives of the elite and to share with the rest of us as to how we are, well, screwed.

[Rajaa Bokhari · Rating 4 out of 5]

The book contains a good overview of the history of the formation and propagation of elite circles in Pakistan. It also presents an excellent concluding chapter against the widely-held assumption that capitalism will necessarily provide more equal access to markets and make societies more equal in general, when it's evident through Pakistan how elite capture has a stronghold on the economy and political modes of power. The middle of the book is composed of multiple anecdotes and analyses by the author's contacts, which can drag slightly or could have been shortened. Perhaps it was just me who didn't find them that interesting, being already aware of these networks, attitudes, and customs. But overall this book is a helpful addition to build a pretty objective understanding of Pakistan through the lens of elite power.

[Ashleigh Sheehan · Rating 5 out of 5]

Having spent time embedded in the lives of Pakistan’s elite, Armytage draws on her exceptional skill as a storyteller to explore wealth, marriage, family and social networking. Ultimately, this is a story of how wealth and status (two distinct ideas) are accumulated and lost in Pakistan in the midst of major historical upheavals and carefully curated marriages but it also shines a light on the universal nature of money and power.

[Taloot S. · Rating 4 out of 5]

A very indepth and accurately analyzed study of most of the wrongs in Pakistan.

[Abdul Monum · Rating 3 out of 5]

Opportunity wasted in my opinion because she could have wrote more in depth considering the links she had. The book started on a good note , told important points about rich and the amount of money one needs to make to be considered as Elite in Pakistan i.e 100 Million Dollars but after all these points she failed to do justice with the potential of executing the idea of this book with her resources

[Anam Azam · Rating 1 out of 5]

I finally read it, and it left me bitter & disappointed.
This book suppose to provide readers the information about micro politics of wealth, how the elites manipulate the society, play the games and kept the politicians, power under control.
But i find it more like a novella where the protagonist is sharing her experiences while she was on some kind of a trip to some foreign country.

[Syed Faraz · Rating 4 out of 5]

Honestly started off well, but this ain’t for the Pakistani reader but for non Pakistani readers who want to get involved in doing business or involved with people in Pakistan.

The narrative is good but loses intensity as the book progresses.

[Haider Zaidi · Rating 3 out of 5]

It wasn't too revealing for a native audience. I found the entire book to be geared towards international audiences. Very little was cited from public history that isn't common knowledge. Regardless, it's a concise overview of how elite power functions in Pakistan.

[Muhammad Pattal · Rating 4 out of 5]

The Pakistani elite, state and establishment are a victim of moral degradation/ immorality. Whereas, the price of their immoral actions is paid by the Pakistani nation as a whole.

[Nadeem Kashif Ali · Rating 5 out of 5]

I dont think the elite structure of Pakistan has ever been exposited in a book like this! Rich in anthropological surveys and observations.

[Haseeb Jamal · Rating 3 out of 5]

It's a good research book, written like a scientific research paper that has all the facts and figures but fails to narrate the facts like a story and engage the readers. Further, mostly, the hypothesis is made on a single event or observation by the author, and a generic or sweeping statement, sometimes contradictory, too, is stated by the author.

[Hagar · Rating 3 out of 5]

An ethnographic work spanning two years. Armytage researched and interviewed "elites" in Karachi, Lahore, and Islamabad. By elites, she means anyone or any family with a $100 million or more annual income. She goes back and forth between the old money, established elites, and the "navay raja" (nouveau riche) families.

This was a bit disappointing. It's well-written, but the idea was greater than the execution. Even though she interviewed and hung out with around 90 people during her stay, the book doesn't include that many long conversations. Nor does she describe all of the myriad parties she says she attended. There was no chronicle of how elites interacted around each other.

The bigger let-down was that her analysis, albeit embedded in history, was very general. Most of this history is written about extensively. The thesis of the book was to show how the micropolitics of the elites works, which Armytage failed at presenting. I wish she would've demonstrated the mechanism of power, politics, and economics in the elite class. How business bleeds into military, bureaucracy, religion, and politics within these families, showing examples of what she observed.

Another criticism would be that she mostly focused on Lahore and Islamabad, which wouldn't be a problem if she just focused on the Punjab region. (She does include KPK families as well, but they did business in Lahore/Islamabad). Karachi's culture is very different from other places in Pakistan. And it's a bigger, more complex area to work on. She either should've given more effort and time to the city or just not have included it in the first place.

All in all, it's a good starting point for people who aren't familiar with Pakistani history and culture and want an overview of how the elite create networks and influence so many facets of society in Lahore and Islamabad. How the military, politicians, businessmen, religious groups, and bureaucracy are part of one large network of elite connections.

But for those already in the know, I'd say skip.