Department of Economics

Assignment No: 2 (Case Study)

Econ 311-(Development & Growth Economics) Presented By:
Waqar Hassan 12-10025 Section: A

To The Respected:
Dr. Rabia Aslam Department Of Economics

FORMAN CHRISTIAN COLLEGE

(a Chartered University)

Q 1: Summary:
In poor countries governments do coruption in different ways. Government allocates its bugjet in the sectors in which thay would be able to do coruption in more efficiently. Mauro states that governments dont invest in educstion sector because there is less probability of coruption. Governments do invest in the sectors that are being controlled by them. As they do projects of government privatize. And they give the projects of different sectors to the privete firms and people like the project to make some dam or roads and motorways. In this way bureaucrates control those people who are have these projects to do coruption. Because firstly they give them these projects at very high grants more then its expenses by using their powers. Then they receive their part. It is stated that politicle instability and coruption are intrinsically related with eachothers. In the discipline of that governments do the combersum bureaucracies to be the politically unstable. In this unstaiblity people dont focus on the coruption and other efficiency of the government. Butt they are just being worried about the staible condition of the countries. I have choosen these variables to discuss because these are the same variables that are being practiseing in Pakistan curently. Our governments and bureaucracy is also doing such types of the jobs. Coruption is being done in such a manners that is seems not to be coruption. They bare doing many differeent ways to do coruption.

Q 2: Case Study:
In this case study, there are many factors that resembles with the factors in the Pakistan which contribute toward the failed take-offs. But according to my openion, I m going to explain only three factors that are closely relatd with tha situation of Pakistan. Those factors are given below: 1. Poor governance / coruption 2. Low investment in human capital (Health, education, skills) 3. Neglect of agriculture 4. Dualism Dualism is included as well but we are not going to discuss it. Now I m going to elaborate these factors that how they can be relate with the Pakistans situation:

(1). Poor Governance/ Coruption:

In this case in Africa coruption is at very high degree. Because there government is not democratic. But in democratic governments it happened much more then dictatorships. Like in Africa people are suffering from hunger and thay are even unable to fulfil there basic needs. In this situation governemnt isusing its spendings on the war and there causes. African governments are spending a lot of money on war and training militants to fight aginst each others. Thats so silly. Aids are given but that is not being spend on the people of Africa. Same as in Pakistan, government is busy in getting much and much wealth to enrich there Swiss accounts and there status. Most of the budgets is being

spending on Army, governemt protocols, and War against terror. That is actually war against muslims. But our government is doing war against our muslim brothers to get more and more Aid from America. This is the biggest sighn of poor governence. Our leaders are not able to think about country, development policies. Pakistan is being burried in debt day by day. But all that debt money is being spend on non-development policies. Poor people are being poor and more poor. Thay are unable to fulfil there basic needs.

(2). Low Investment In Human Capital:

In human capital, there is too much less investment then its requirement. In africa and pakistan there is not sufficeint budget allocation on education, health and skills. Like in pakistan ony 4% is being spent in education. In this way in africa education and health facilities is too much less then its needs. Thats y mortality and fertility rate is too much high. Average age is less. Education sector is also not good. Educated people are less there. Thay are dependent on developed countries. Because they have resources but thay are unable to allocate those resourcess just because of lack of skillful and educated persons. In the same way, in Pakistan govenemnt have a very little part of budget for education and health sectors. Private institutions have sufficient facilities but these are out of reach of a common man. In governmet schools condition is worse. No infrastricture, furnitures, and uneligible persons are working there. Children are studying under the open sky. In the same way in govt hospitals no facilities are available, doctors are not vailable. Less educated persons are working there. With out education and helth facilities how a nation can be developed. People are always thinking about there needs. Thay dont stidy because they have not enough resources to study in private well reputed institutions.

(3): Neglect of Agriculture:

Pakistan and Africa, are the countries that have the enough land and resources, climate and favorable conditions for agriculture. Even pakistan have worlds best canal system as well. But government is not supporting the agriculture. Supporting is far, govt is imposing new and new taxes on agriculture instead of supporting and guiding the agriculture sector. In pakistan in total GDP, more then 40% is contributed by agriculture. Even its not being supported by government. In the same way in Africa people work very hard in agriculture and gains are being taken by USA and other dominated countries. Governments have no incentives for farmars and agrarians. Even in Africa piloghing is also being taken by humen. No machinary is provided by government. In pakistan there is also no incentives is being given to the farmars. In recent government, pakistan is suffering from worst condition of the shortage of gas and electicity. Pestisides and fertilizers are not sufficiently being provided. Agriculture is being less productive. By developing agriculture sectors more GDP can be collected by this sector.