ISSN: 0030-9729 Published triannually by the Pakistan Institute of Development Economics since 1961, the Pakistan Development Review (PDR) is a leading journal in economics and the social sciences. By promoting high-quality research that informs public policy and addresses complex socio-economic issues, the PDR plays an active role in advancing the global development discourse.
Pakistan Institute of Development Economics
Industrialisation and Environmental Degradation in Asia: Rethinking Growth through an Ecological Lens
This study examines the ecological impacts of industrial expansion in Asia, focusing on four key pollution dimensions: nonrenewable energy use, industrial wastewater, waste gas, and solid waste. It argues that ecological resources are exploited as unpaid inputs, representing a disinvestment in social overhead capital. While prior research often focuses on a single type of pollution, this study introduces a comprehensive Industrial Pollution Index to reflect the multidimensional nature of industrial pollution in selected Asian economies. Empirical findings suggest that industrial solid waste, wastewater, and waste gas collectively contribute significantly to environmental degradation, particularly in high-polluting countries like China and India. Conversely, lower-polluting nations exhibit cleaner industrial practices and stronger environmental regulations. The study reveals that industrialization’s ecological effects vary across Asia due to differences in energy use, industrial structures, and policy effectiveness. It calls for integrated environmental governance, targeted ecological taxation, and robust regulatory frameworks to address Asia’s growing ecological challenges.
The Perspective of Native People Regarding Developmental Projects of China Pakistan Economic Corridor (CPEC) in Gwadar, Balochistan
Gwadar’s economic potential has become a centre of debate in national and international media. However, less discussed are the people living there, especially the native communities who are mostly dependent on fishing as a source of livelihood. This study has taken a peoplecentric approach by employing qualitative methods with the aim to explore the perspectives of the native people of Gwadar regarding the impacts of various projects related to the ChinaPakistan Economic Corridor (CPEC). Fieldwork was carried out in Gwadar city to collect data from various groups of local people. The findings reveal that the local people had legitimate expectations of improvement in their lives and livelihoods from CPEC projects but, over the last decades, these expectations were not met. As a result, the unmet expectations have given rise to concerns and frustrations. Most of the local people appreciated the development of infrastructure in Gwadar; however, they have been feeling discriminated against and see themselves excluded from the development process. Policy measures have been suggested to make CPEC more meaningful for the local people of Gwadar and to (re)gain their trust and confidence in the government.
Transforming Public Sector Through e-Governance: A Case Study of Khyber Pakhtunkhwa
Under the motto, ‘Technology is Our New Ideology,’ Khyber Pakhtunkhwa’s two-time elected Pakistan Tehreek-e-Insaaf (PTI) provincial government is undertaking several key governance reforms for digitising service delivery in various government departments. Taking the two key departments of education and health as case studies, this research investigates how service delivery is impacted through digitisation, what influences are generated on organisational culture, and in what manner it affects citizens’ trust in the provincial government. It attempts to do so from the perspective of public service providers, i.e., the bureaucracy, and end users, i.e., the public (school and college students and hospital patients). The study employs both qualitative and quantitative methods to reach its findings. The findings of the study suggest that significant digital interventions were made by the provincial government in both the education and health sectors; the Covid 19 emergency provided a big push for the digitalisation of government services. These interventions are driven by first, the desire to generate policies based on evidence-based data and second, to optimise the efficiency, transparency, and accessibility of public services. The findings of the study suggest that the ICT-induced impacts on service delivery have from a service provider’s perception induced greater efficiency, transparency, and accessibility; however, from the end user’s perspective, significant constraints remain. The absence of a critical thinking approach behind technology introduction has led to the underperformance of various ICT initiatives. Additionally, there is a propensity of significant groups being left out, either due to the nonavailability of resources, such as computers, and the internet, or lack of digital skills and awareness among the end users. The digitisation measures are also steered towards greater government control and less public participation in policymaking, making it as Chadwick and May (2003) suggest a model of managerial government. The findings also suggest that ICT induced transformations in the bureaucracy’s organisational culture have led to veiled resistance and scepticism of the ICT-introduced reforms from the service provider’s end.
Foundations of Real-World Economics: What Every Economics Student Needs to Know
1. Overview Professor John Komlos is a former chairman of the Department of Economic History at the University of Munich and also taught as a visitor at Harvard, Duke, and the University of Vienna. In his book, “Foundations of Real-World Economics: What Every Economics Student Needs to Know and Doesn’t Get in the Usual Principles Text”, he examined mainstream economics and contemporary economic policies. This book has been translated into Chinese, German, Hungarian, Romanian, Russian, and other languages are forthcoming. This can be categoriSed as a major reference book to study the hopelessness of mainstream economic thought in explaining contemporary economic issues. Professor Komlos received a PhD in history in 1978 and a second PhD in economics in 1990, both from the University of Chicago. His academic career mainly consists of research and study of the effect of economic development on human biology. This background is reflected in the contents and sub-topics of his book in which he established the links of economics with neurology, psychology, sociology, ideology, and humanism. He advocates for a new paradigm: Capitalism with a human face by differentiating humanistic and mainstream economics based on their fundamental characteristics. Humanistic economics accepts the foundational achievements of sister disciplines as well as behavioral psychology. Instead of using mathematical logic, he emphasises considering human sentiments and morality, which cannot be incorporated into mathematical equations. In his own words, “I believe that our starting point should not be Adam Smith's Wealth of Nations (1776), but his Theory of Moral Sentiments (1759), in which Smith asserted forcefully that we possess an innate empathy toward our fellow human beings.”
The Great Defiance How the World took on British Empire by David Veevers
Introduction While much has been written about how the so-called superior Western civilization conquered and colonized vast regions of the world owing to their advancement in technology and mission civilisatrice, there have been few histories of the people who encountered the British with more advanced militaries, lavish courts, thriving cities, bustling trade and economies, and complex and developed cultures with extravagance lifestyles. Although James S Mill like historians praised the civilizing mission of the British Empire that came of age when J.S. Mills like historians developed disillusioned historical consciousness, the so-called backward and barbarian autochthonous people were far ahead of the British and other European nascent powers. The story of the British conquest remained a famous subject of romance historians who eulogized the British ability to conquer and subjugate different regions. However, the story of British subjection and their humility and disgrace rarely became a famous subject of study for Western historians. Although there are many stories of resistance against the British colonial forces around the globe most of them are taken from the point of view of the British perspective hereoising the British forces instead of showing the heroic defiance of the conquered. In his exuberantly lively and dazzling account of the world's resistance towards the British Empire, ‘The Great Defiance: How the World Took on the British Empire’ David Veevers tells the story of Indigenous people’s resistance in his epic book. The Great Defiance is the story of the world taking over the British Empire. While castigating the histories written eulogizing the empire where the sun never set, David Veevers sees that ‘the defining event of the pre-modern world was not the emergence of an all-encompassing British Empire, but the great defiance of the people who found themselves in its path and their heroic struggle in resisting it—often successfully.
Political Violence as Commitment Problem: Evidence from Balochistan, Pakistan
Existence of a social contract ensures cooperation among ethnically-diverse groups, especially when they are characterised by power asymmetries. Alternatively, constitution or any other form of social contract is meant to ensure resource and power sharing mechanisms in ethnically-diverse societies. In this regard, adherence to the commitments accentuated in the contract is Pareto superior outcome that not only prevents exploitation by the powerful group but also mitigates the risk of rebellion by the minority groups. A break-down arises when, in the presence of power asymmetries, the dominant coalition has an incentive to renege on the social contract by appropriating more than the agreed-upon share of resources. In this study, we focus on this aspect by exemplifying it with the issue of Balochistan, Pakistan, which is an important saga of deprivation and political violence. We utilise the post constitutional game-theoretic analysis of Kirstein & Voigt (1999) to establish the need for accountability for reneging on the social contract and then contextualise the framework for the case of Balochistan. We posit that while the existence of a formalised social contract in the form of a constitution is necessary, it is not sufficient for ensuring lasting peace. In other words, it is always essential to protect the constitution through ensuring accountability for violating its terms and commitments. We conclude that the recent surge in political violence in Balochistan highlights the urgent need for the country’s leadership to implement the 18th Constitutional Amendment, address Baloch grievances, and ensure that initiatives like the Peaceful Balochistan Programme to prevent civil conflict and uphold constitutional rights.
The word “manifesto” is derived from the Latin word “manifestum,” meaning clear or evident. It serves as a comprehensive and detailed document that outlines a political party’s vision for society, its proposed solutions to various issues, and its commitments to the electorate if they are elected to govern. Manifestos are also a means for political parties to establish credibility and demonstrate their understanding of the challenges faced by society. They serve as a roadmap to convince voters that the party’s vision aligns with the aspirations and needs of the public. A typical political manifesto includes several key components.....
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Public Cognizance of E-waste Effects on Human Health and Environment: Evidence from Punjab, Pakistan
The negative effects of electronic waste (e-waste) on the environment and human health are globally acknowledged. Across the world, developing countries in Asia are the most vulnerable countries in hosting e-waste. Informal recycling and crude processing of e-waste cause environmental degradation and harm human health. Therefore, the study analyzes public awareness about e-waste effects on human health and the environment using a logit model with a mean comparison of variables based on primary data of 312 respondents. Meanwhile, the study notifies the correlation of e-waste generation with gross domestic product (GDP), population, and electrical & electronic equipment (EEE) put in the Pakistani market. Moreover, the study discusses other pollutants putting a burden on human lives and the environment in Pakistan. Lastly, we provide a brief overview of the study’s implications on both theory and practical applications while emphasizing key areas for future research work.
Pre-Afghan Taliban Refugee Exodus and the Complexities of Returning Home
This study is designed to address some key questions regarding Afghan refugee’s exodus. Such as, when did Afghan refugees migrate to Pakistan? What are the prominent factors which compiled Afghan Refugees to flee Afghanistan? What they deem about the future destination? Are they willing to repatriate to Afghanistan? why/why not? In the first step, this study has discussed the recent Afghan repatriation policy of the caretaker government, and identified either the Afghan refugee’s migration was voluntary or involuntary, similarly is the repatriation forced or voluntary? Moreover, this study provides a brief history of Afghan refugee’s migration. In the second part, this study has empirically, addressed the eminent questions. And finally, suggest policy proposal regarding sustainable repatriation of Afghans to Afghanistan.
Determinants of Management Practices among Manufacturing Firms in Pakistan
A strong case for looking at management quality as a source of productivity has been assembled in recent years by studies showing that variations in management quality account for a big part of the productivity gap across firms and countries. In this paper, we investigate the determinants of management quality among Pakistani manufacturing firms, using a new World Bank Enterprise Survey that provides firm-level information on the use of modern management practices. Our findings suggest that the adoption of good management practices is influenced by such characteristics as firm size, product market competition, ownership type, and the information available to staff and managers. We also find that such considerations are more relevant for medium and large firms than for small firms. Finally, we find that the link between management practices and productivity is not uniform and varies from practice to practice.
Korea’s Saemaul Undong Revisited as Rural Development Game for Poverty Eradication: A New Development Economics Perspective
The 2019 Nobel Prize in Economics for Randomized Controlled Trials (RCT) has sparked the popularity of an experimental approach to poverty alleviation. This paper delves into this theme by revisiting the highly successful case of Korea’s Saemaul Undong (New Village Movement) during the 1970s, which served as a precursor to such experimental approaches in economic development. It presents a comprehensive model of rural development aimed at poverty eradication, emphasizing the vital role of three key entities: the villagers, village organizations, and government, all operating under the principles of economic discrimination outlined in the new general theory of economic development. As a framework for rural development, this trinity model offers potential enhancements to existing market-oriented and villager-centered rural development approaches, as well as to the RCT model.
The Geopolitics of Peace in a Post-Western World – Special Invited Lecture
INTERNATIONAL RELATIONS AS A PRESCRIPTION FOR PEACE We are in the midst of an extraordinarily dangerous and destructive hot war in Ukraine, and there is now daily talk about the prospects of a US-China war in Asia, perhaps over Taiwan. Such an expanded war is too horrific to contemplate, and yet it has become the casual discourse of US op-ed columns almost daily. The people who write these columns are not thinking straight, are not knowledgeable, and indeed are utterly irresponsible. We cannot afford a continuation of the current war, and we cannot afford a war between the US and China. That would be the end of civilisation. There is also the idea that the Ukraine war will not spiral into a nuclear war. The English-speaking media, especially in the UK and the US, tells us not to worry, and that it is unlikely that Putin will use nuclear weapons. The media tell us not to be afraid. Let me tell you: Be afraid. The world is not in safe hands right now. The governments in the United States, here in the UK, and around the world, are truly dangerous to our health and wellbeing. It is our responsibility to think clearly because our lives depend on it. I have been thinking a lot about the Ukraine war, and I am very concerned. This is a war that is extraordinarily dangerous and should never have happened (see the Addendum). This is not simply a war that Putin decided to launch, unprovoked, on February 24, 2022. That is nonsense for anyone who has been around. I was an adviser to President Mikhail Gorbachev; I was advisor to President Boris Yeltsin; I was advisor to President Leonid Kuchma, the first president of independent Ukraine; and to others. What you’re being told about this conflict and others is simply not true. I say that based on firsthand experience of more than 30 years.
Macroeconomic Policy, Institutional Quality and Inclusive growth in Nigeria
The inability of macroeconomic policy in influencing macroeconomic indicators in Nigeria has been attributed to weak institutional quality which has consequences for the achievement of inclusive growth. Thus, this study investigates the link between macroeconomic policy, inclusive growth, and institutional quality in Nigeria. The period of this study spanned 1996 to 2021. The study utilised fully modified ordinary least square and the results showed that macroeconomic policy variables and institutional quality contributed significantly in enhancing inclusive growth in Nigeria. More so, it was observed that the interactive terms between macroeconomic policy variables and institutional quality enhanced inclusive growth Therefore, the study concludes that macroeconomic policy and institutional quality are important drivers of inclusive growth in Nigeria. This study recommends that institutional quality should be improved using appropriate anti-corruption policies through institutions like the Economic and Financial Crime Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
Lahore in the 21st Century: The functioning and development of a megacity in the global south
In the world of urban studies and history, it is not uncommon for researchers and writers to draw from established frameworks as points of inquiry. However, in “Lahore in the 21st Century,” Qadeer presents a refreshing departure from this norm. What sets this book apart is its original analytical framework, one specifically tailored to the vibrant city of Lahore. Qadeer’s work is an exploration of the internal dynamics of urban development in Lahore, and it offers readers a unique perspective on how the city functions.
Is Corruption Perception Index Biased? An Ethnicity Based Analysis
Corruption is a widespread problem that affects many countries across the world. The broad definition of it is the misuse of public authority for personal benefit, which results in an allocation of resources that is less efficient than would occur in a corruptionfree environment. Corruption has a negative impact on economic growth, investment, and social development in several ways. First, corruption reduces the efficiency of public institutions and distorts resource allocation. Second, it discourages foreign investment and can lead to capital flight. Third, corruption undermines the rule of law, which is essential for economic growth. Ethnicity and economic growth are two important factors influencing corruption levels in a country. Therefore, understanding the factors contributing to corruption is essential for policymakers to develop effective measures to combat it. This research report investigates the relationship between economic growth, ethnicity, and panel-country corruption levels. Specifically, it seeks to answer the question: do economic growth and ethnicity explain the differences in panel-country corruption levels?
Political Economy of Tax and Digital Transformations in Pakistan (Special Invited Lecture)
1. THE NEED FOR A COORDINATED TAX AND SUSTAINABLE GROWTH STRATEGY I The 1985 National Tax Reform Commission (NTC) recommended a coordinated set of policies on tax policy, administration, and digital transformation to take the tax/GDP ratio from around 14 percent as it was then, to 20 percent by 1990, to underpin a sustainable growth path. The interim report of the NTC called the CBR “the most corrupt of Pakistani institutions.” The final report paid a great deal of attention to the interrelationships between tax evasion, smuggling and corruption. 1 The report emphasised a coordinated approach to reforming all taxes and administration, and that a tax-by-tax approach with tax administration determined separately would not do. Unfortunately, the report was shelved as Pakistan extracted geographic rents from the war against the Soviets in Afghanistan. While the NTC could not have imagined that the tax/GDP ratio would decline after three decades of interactions and support from the IFIs, that the country would find itself on the brink of default consequently, or the depths to which rent-seeking and corruption might plumb. A coordinated approach to multilevel tax policy and administration should also address key political economy challenges if Pakistan is to overcome the current economic crisis and move towards resilient and sustainable growth in the medium term. This is especially critical given the unprecedented “perfect storm” of the pandemic, climate shocks and once in a century floods, and ongoing disruptions in global value chains. The contrast with India is striking. With a general government tax/GDP ratio well above “the tipping point” of around 15 percent, India has been able to run a greater general deficit and much higher overall debt level than Pakistan (see Table 1 and Chart 1), without running into a potential debt crisis. It is important to stress that India by a Constitutional Amendment to harmonise the VAT across subnational jurisdictions has begun to address faults inherited from the pernicious 1935 Government of India Act, that still influences revenue assignments in Pakistan. The increasing geo-political importance of India, and the country’s greater resilience and attractiveness for FDI provide important contrasts and lessons for policy makers in Pakistan.
Microcredit versus Child Schooling Nexus: Exploring Child Schooling Decisions in Rural Bangladesh
The study investigates if the microfinance loan burden influences the children’s education of the borrowers. By surveying the microfinance borrowers of Agarpur and Thakurmollik— distant rural areas under the Barisal district (Southern part of Bangladesh)— and by applying the OLS regression technique and logistic regression technique, the study identifies that the amount of microfinance loan installment does not have any significant direct effect on the dropout or enhancement of child education. Instead, the dropout tendency increases as kids move from primary to secondary or higher secondary level or as the number of kids increases in the family. However, as more kids are going to primary school, the school dropout tendency decreases. Thus, in remote rural areas, children’s school dropout appears as a matter of social behaviour rather than being an issue of microfinance loan burden.
International Monetary Fund (IMF) issued a staff report on the seventh and eighth reviews of the extended arrangement under the Extended Fund Facility (EFF) on September 1, 2022. As per the review report, the authorities of Pakistan are allowed to draw USD 1.1 billion, keeping in view the measures taken by authorities to address fiscal and external challenges. The IMF board has also approved the extension of the EFF till June 2023 along with extra Special Drawing Rights (SDR) of 720 million and that brings the total access under the EFF to about USD 6.5 billion. The review report has also identified some priority measures to be considered by the Pakistani authorities, such as the implementation of an approved budget, marketdetermined exchange rate policy, proactive and prudent monetary policy, the expansion of the social safety net, and structural reforms related to the performance of state-owned enterprises (SOEs) and governance. The set of measures that have been identified contains both short-term and medium-term measures to promote long-term growth. In this regard, the Pakistan Institute of Development Economics (PIDE) has also been working extensively to identify the measures that are necessary to remove the bottlenecks in the economy to improve productivity and increase growth. Therefore, the objective of this document is twofold, i.e., a commentary on the measures suggested by the review report, and what other measures should be part of the programme.
Effect of Urban Land Use on Travel Behaviour: Evidence from Lahore
In urban areas across Asia and Africa, public investments in road infrastructure subsidise suburban sprawl and privilege car ownership. At the same time, restrictive land use ordinances prevent mixed-use land development, so distances between home and work increase; an outcome particularly burdensome in time and money for marginal groups. To analyse the effects of public investments in road infrastructure on commute times for different modes, the study uses a rare household travel survey from Lahore. A novel multilevel methodology nests individual-level commute times for different modes within a zone level of analysis which controls for differences in urban land use and road infrastructure. Results suggest that individuals who drive to work enjoy significant time benefits over those who walk to work. The policy implications focus attention on the need for infrastructure investments to mitigate the time costs for commuters who walk and who ride the bus.
Effectiveness of the Exchange Rate Channel in Monetary Policy Transmission in Pakistan
The exchange rate is one of the most important channels of monetary policy transmission to the real economy. However, the effectiveness of this channel depends on the extent of exchange rate flexibility, degree of international capital mobility, and inflation expectations. Like other emerging economies, Pakistan is typically characterised by weak fiscal and monetary institutions, currency substitution, liability dollarisation, and vulnerability to sudden stops of capital flows. These features compel emerging economies to follow managed exchange rate regimes by restricting the mobility of capital flow. All these factors weaken the effectiveness of the exchange rate channel of monetary policy transmission. This study estimates the effectiveness of the exchange rate channel in monetary policy transmission in Pakistan and explores the impact of exchange rate regimes on the channel’s strength. The study benefitted from the widely used structural VARs methodology and found that the exchange rate channel is less effective in transmitting monetary policy shocks to the real economy. In recent years, however, greater flexibility in the exchange rate has improved the effectiveness of this channel.
Street Vending: An Introduction and Overview
The widespread phenomenon of street vending, particularly in the developing world, is a fascinating one. With gradual industrialisation, countries in the Global South have experienced significant levels of urban migration—people moving out of their rural settings in the search for better economic opportunities in closer proximity to commercial hubs (Recchi, 2020). Lacking formal education, these working-class individuals gravitate towards the informal economy, characterised by spontaneity, low (and in some cases nonexistent) levels of regulation, long work hours, and perpetual improvisation. Defined as “the production and selling of goods and services in urban public spaces, which is not officially regulated by the law and is carried out in non-permanent built structures,” street vending has risen to prominence in both positive and negative ways—on the one hand, functioning to fill important gaps in the market at affordable rates, and on the other contributing to congestion, pollution, and general ‘disorderliness’
Wheat Support Price: A Note for Policymakers
Wheat is one of the most strategic crops globally, which has always been a big challenge for many governments. Over the last few months, Pakistan’s government is struggling to fix wheat prices in the country due to weak governance and mismanagement. The Minimum Support Price (MSP) for the Year 2019-20 was PKR. 1,400, but the market price of wheat rose to PKR. 2,256 per 40 kg in the first week of October. The Prime Minister of Pakistan directed relevant authorities to devise a comprehensive plan to ensure the supply of wheat on market prices. The plan should look at the current stock, future demand, and import policy to fulfil domestic needs. PIDE has developed a brief to provide a comprehensive plan to ensure the supply of wheat on market prices.
Performance of Asian MFIs: The Role of Capital Structure and Macro-Institutional Quality
We draw on the capital structure theory and examine whether Modigliani & Miller’s capital leveraging ideology improves the performance of microfinance institutions (MFIs) under different macro-institutional quality. We develop and test a framework of the combined effect of capital structure and macro-institutional quality on both financial and social performance, which is a novel contribution. We collect data on 75 MFIs in Asia from 2009 to 2018 and applied Hausman-Taylor test. We find that when operating in countries whose institutions are relatively weak, MFIs can better perform both socially and financially by using equity funding instead of debt or donation. As supported by the Market Failure Solution theory of institutions, MFIs perform better socially in weaker institutional quality as they can fill up the gap in the market left by traditional banks. As this gap narrows down with the improvement of institutional factors, MFIs face stronger competition from traditional banks. Such competition transposes MFI’s focus toward financial performance (profit-seeking behaviour) and drifts away from social performance (objective of poverty alleviation). Furthermore, under any institutional condition, MFIs with debt or donation impose less control over capital utilisation compared to equity funding. Thus, despite initiation with a major goal of social performance, MFIs suffer from mission drift even with the support of debts and donations when operating in countries with relatively stronger institutions.
Construction without Real Estate Development
Real estate development in Pakistan suffers from a bad reputation, both in policy circles and in the public. Detractors frequently claim that investing in real estate is unproductive and should be discouraged. Officials often put forward unsubstantiated claims that the real estate business is riddled with illegal activity of all sorts. However, when one looks back at Pakistan’s foray into real estate development activity from the date of Independence, we find that the state considered itself responsible for providing housing for the millions of refugees who came to Pakistan to become citizens of the newly minted country. From then on, successive regimes have taken or tried to take, some initiative to fulfil the promise to provide adequate housing for the poor masses. During his tenure, former Prime Minister Imran Khan also promised to provide subsidised housing for the poor, numbering up to 5 million homes. His approach was slightly different as Mr. Khan made a point of recognising the importance of the construction industry as a participant in achieving the goal of providing subsidised housing to the masses. Another important aspect of his agenda was the recognition that the construction of high-rise buildings in big cities is an important part of urban development. However, city administrations did not immediately accept the former Prime Minister’s vision and showed limited interest in accommodating the discomforts of construction upheaval, such as ‘tower cranes’ and other such machinery in their city’s midst.
Firms and Technology Adoption: The Role of Political Institutions and Market Size
The study presents a political economy model and analyses how firms behave towards technology up-gradation given the different dynamics of political and market institutions. The model presented here depicts that political power is controlled by the elite, who formulate trade policy to consolidate power. While the middle-class access the production technology and the labour class provides labour inelastically. The model shows that the technology adoption decision of a firm essentially depends upon the political institutions and the market size of the country. Firms in a country with strong democratic institutions adopt new technology more rapidly. While in a weak democracy, firms successfully persuade the elite policymaker to impose higher trade restrictions and obtain higher protection from technologically advanced foreign firms. Moreover, the model also shows that firms operating in a large market adopt technology more rapidly since a large market has a high price elasticity of demand and supports a large number of larger firms. Furthermore, firms adopt technologies more swiftly when the productivity gains from the adoption are relatively large.
The Fall of Urdu and the Triumph of English in Pakistan: A Political Economic Analysis
In this paper, we investigate both how the use of language in higher education in Pakistan has evolved and why the medium of instruction remains a contested terrain. We focus on the struggle between advocates for the use of Urdu and the use of English in higher education. By examining the repeated failed attempts by high political authorities to replace English with Urdu, we demonstrate the usefulness of evolutionary theories of path-dependent institutional change while placing language struggles in the context of national and class stratification.
Does Free Market Mechanism Offer a Win-Win Situation to Wheat Consumers and the Government? Authors Abedullah
Wheat is the most important agricultural crop of Pakistan. It is grown by 80 percent of farmers and planted on about 22 million acres, which is approximately 40 percent of the country’s total cultivated land. Punjab plays a major role in wheat production by allocating 16.14 million acres (71.5 percent), followed by Sindh, KPK and Balochistan with almost same trends in production also (AMIS, 2020). Wheat also contributes 37 percent to both food energy and protein intakes. Being a staple food, it accounts 72 percent to the food basket of Pakistan, with the highest per capita consumption of 124 kg per person per annum in the world.
Pakistan throughout its history has seen regime changes from more democratic to 1 more authoritarian and vice versa. This has meant that the country’s political and social landscapes have remained volatile and unstable. Many economists argue that this instability has partly contributed to the stifled and irregular growth patterns in the country. The average GDP growth rate has been irregular from decade to decade, with an overall long-run downward trend
Dowry and Female Education: A Theoretical Evaluation
Using a dynamic framework based on intertemporal optimisation, this paper explores the complexity of the intertwined relationship between dowry and female education. The incidence of dowry in a gendered society is not at all a mechanically biological entity but fundamentally socially nurtured. The effect of social heterogeneity, economic status of the bride and groom family, unemployment, and female-specific education subsidy has been analysed to explain the incidence of dowry. We find that specifically targeted subsidised education for the girl child and gender empowerment may aggravate the incidence of dowry. Interestingly, we found that even if dowry is negatively correlated with bride education initially, a rise in the groom’s relative status can result in higher dowry and higher bride education in the final equilibrium. The results of this study show that the equilibrium level of dowry and female education exhibits a non-monotonous relationship which hinges on the nature of the underlying socioeconomic characteristic. However, overhauling the existing social system is not an easy exercise given the stigma associated with dowry exchange, and thus dowry may persist.
Strategies for Transforming Agro-Commodity into Agro-industrial Clusters in Pakistan
The main focus of this study is to propose a plan to transform largely existing agro-commodity clusters in Pakistan having little value addition into agro-industrial clusters in which all stakeholders along the value chain are integrated to supply the quality as demanded by the market. Main triggering factors are to induce quality of agricultural products, establish markets of these, and train stakeholders. To make this transformation small-farmer inclusive, stakeholders have to be organized into groups, incentivize them to participate in small-scale agro-business projects, and link them with markets. The plan will require an investment of US$1039 million, 40% of which will come from the government, giving an IRR of 62%. Project management units (PMUs) to implement the Plan are proposed at the provincial level. Introduction Following Porter’s (1998) definition for industrial clusters (ICs), an agriculture-based cluster (ABC) is defined as “a geographically proximate group of commercial farmers of a product or closely-related products, and related companies and institutions for input supply, processing and service provision”. The ABCs can be further classified into: (1) agricultural commodity clusters (ACCs), and (2) agro-industrial clusters. (AICs). The ACCs supply fresh but low-quality agricultural products with little grading and processing, while the AICs market graded or processed agricultural products following strict quality standards as demanded by the market (Otsuka & Ali, 2020). In other words, in AICs all downstream and upstream stakeholders along the value chain and related institutions are properly integrated, while such integration is weak in ACCs. It has been observed that several agriculture commodities, especially high-value products (HVPs), are produced in clusters. Examples of clusters of HVPs are provided by Ali (2020) in Pakistan, Chatterjee & Ganesh-Kumar (2016) in India, Briones (2015) in the Philippines; Zhang & Hu (2014) in China; Cavatassi, et al. (2011) in Ecuador; & Galvez-Nogales (2010) in Asia, Africa, and Latin America. These studies argue strong roles of AICs in enhancing productivity, employment, and stakeholders’ income by (i) creating synergistic links among cluster stakeholders; (ii) facilitating collaborative actions to meet the quality standards; (iii) provide better market access; (iv) easing innovation and its dissemination; (v) producing specialised skill labor; (vi) enabling policy makers to sharply focus on cluster issues; (vii) creating spill-over effect of innovations; and (viii) formulating networks to protect cluster interests thus creating social, political, and economic capital. All of these roles of clusters improve competitiveness thus enhancing exports or reducing imports of cluster products. Despite the established role of AICs in agricultural development, the policies, strategies, and implementation package to develop AICs is not well-defined, especially in the Pakistan situation. The purpose of this paper is to propose such a package after evaluating the status of agriculture, and identifying gaps and potential of agriculture clusters in the country. In earlier studies, several individual factors have been highlighted to transform ACCs, but an integrated approach incorporating and prioritising these factors is lacking. Using successful examples from the literature, macro-data, and our consultations with stakeholders in 33 HVC clusters in Pakistan, the role of product quality, capacity building, small-scale value addition and processing units in rural areas, farmers’ entrepreneur groups, and linking these groups to markets are underscored. Necessary incentives to encourage first risk-taking movers in a cluster, encourage innovations, and enhance private public-private partnership for the development of cluster infrastructure are elaborated. The necessary policy reforms in the seed, seedling, and output markets, and subsidy structure in Pakistan are outlined. The outline of a unit to implement these reforms is also provided. The framework of this article is as follows. The data used in this study are explained in Section 2. The status of agriculture clusters in Pakistan is described in Section 3, while Section 4 lays out the cluster-development based agriculture transformation plan (CDBATP) by explaining strategies, cluster-level incentives, and reforms required to transform ACCs into AICs. Section 5 provides financial requirements of the plan and its economic viability, while an implementation structure for the plan is laid out in Section 6. Major findings of this study are summarised in Section 7.