A Comparison of Economic Growth and Development: Pakistan and Similar Countries
Introduction
Pakistan has all the major ingredients necessary to become a developed nation; it has a geo-strategic location, a generous availability of natural resources and a large population in the working age. Despite having the potential to turn itself into a developed country, Pakistan has not been able to fulfill its potential.
Israel, South Korea and Malaysia are countries in roughly the same region as Pakistan. All of these countries came into being around the same time as Pakistan. All three of these countries have a higher GDP (Gross Domestic Product) than Pakistan and all three of them are ranked higher in the HDI (Human Development Index) as well. South Korea has been ranked 12th, Israel has been ranked 16th, and both reside in the very high human development category. Malaysia also resides in the high human development category whereas Pakistan is listed in the low human development category.
The rationale behind selecting these three countries as the subject of this comparative analysis with Pakistan is that, they all achieved independence in the same decade, were at a similar stage of economic development and had similar levels of GDP per capita initially. By researching and investigating the social indicators, the reforms and the policies of these four countries, over the preceding 60 years, this paper will help to identify the factors that may help explain the subsequent divergence in the rate of development of these countries.
The objective of this paper is to make an economic development and economic growth comparison of these four countries. The comparison will be multi-faceted. It will compare monetary perform...
... middle of paper ...
... of increase was at a greater level and the population increased to 27 million. Korea showed an increase in its population as well, from 22 million in 1960 the population increased to 40 million in 1985 but from here the rate of growth slowed down but picked up pace again from 1995 onwards, in 2010 Korea had a population of 50 million approximately. From 1960 till 1980, the population of Pakistan increased significantly from 45 million to 85 million. Between the years 1986 and 2010 there was an extremely sharp increase in the rate of growth increasing the population from 85 million to an outstanding 180 million. Pakistan is the only country among the rest three which experienced such a large increase in its population.
South Korea’s Economic Growth and Development
Conclusion/Policy Recommendations
In Pakistan, people are stricken with poverty, the economy is unstable, and there are no opportunities to fulfill one’s goals. The U.S. economy is abundant and ripe with jobs. The only attribute is that one has to go out and want a job. Pakistan is more of a follower than a leader. It essentially adopts America’s ideals, but does not attain them. The poverty and unemployment rates are increasing daily. In many cases, one person works in the family and rest of the individuals sit back and play cricket or watch movies all day long. There is no hope of becoming a self-made person. The system is backwards and I think it requires a change. In contrast, living in Ameri...
Huang (2005), used pooled data averaged over the period of 1960s, 1970s and 1980s for the analysis of 86 countries, including 258 observations. Applying the regression tree and flexible non-linear approaches, result explains the strong evidence of cross-country growth regression but not for multiple steady-states. The countries in different regimes may attain different steady-state equilibria due to varied state variables.
While growth rates of GDP per capita vary, it is not always the poorest countries that seem to see the highest growth rates. The differences in GDP per capita are greater today than any other time in the world’s history. These differences were relatively small before the early nineteenth century when the gap became more divergent during the Industrial Revolution (Parker, 2013). Living standards in many of the poorer countries are from prolonged but small changes. “The Mystery of Economic Growth” starts by showing the divergence of countries by show casing growth rates and living standards differences in courtliness during the post-World War II era. The book presents the Solow (1956, 1957) model to introduce the insights of the effects of growth of capital accumulation. The results from this lead to the question of “what are the forces of divergence in the world economy” (Helpman, 2010: 15). One can predict from the Solow model is economies will converge. For this model to hold and be true this must be true in every situation. The world economies accelerated growth rate cannot be explained by the forces of accumulation described by the Solow model which would predict a convergence and a declining growth rate. The limitation of this model is that it assumes that all countries have the same technological progress. To help expand the model with the concept of accelerated growth, technical innovation must
When looking through the topic of development, two drastically different ways to assess it arise. The majority of the western world looks at development in terms of per capita GNP. This means each country is evaluated on a level playing field, comparing the production of each country in economic value. Opposite this style of evaluation is that of the alternative view, which measures a country’s development on its ability to fulfill basic material and non-material needs. Cultural ties are strong in this case as most of the population does not produce for wealth but merely survival and tradition.
The population will continue growing and will peak in 2030 and start to decrease in 2050. Works Cited Pam, and Max. Comparing Population of Countries. Lady Luck Enterprises, 1998-2014.
Every year there is a ‘league table‘ published showing the level of economic growth achieved by each country. The comparison is made using each countries Gross Domestic Product, or GDP. An important factor to look at is the difference between actual and potential economic growth. Actual economic growth increases in real GDP. This increase can occur as result of using previously unemployed resources, or reallocating resources into more productive areas or improving existing resources. Whereas potential economic growth is the productive capacity of the economy. For example, it can be shown by the predicted ability of the country to produce goods and services. This changes when there is an increase in the quantity or quality of the resources. All countries have different ways of achieving this with the resources they have available to them. For this reason it party answers the question of why some countries are richer than others. It is widely thought that the productive capacity of an economy will increase each year largely due to improvements in education and technology. This will obviously differ from country to country. For example, in the UK the quality of fertilizer could be improved, hence forth increase the years fruit and vegetable output.
In order to assess the current state of the economy, the examination of important economic indicators or variables has always played a vital role in the understanding of the complex economic systems we live in. The analysis of these economic variables studied by many, not only has served as a tool to evaluate the current economic performance of a country, but also has allowed experts to envisage and continue the pavement of an economy's road. Currently, some economic variables have had favorable improvements indicating a general good outlook for the economy for the following months, requiring a further individual analysis and comparisons in order to foresee crisis or successes.
Population growth is the change in population over a period of time. It happens due to a number of factors such as standard of living, cultural factors, and government policies. When the standard of living become better such as the improvement of social conditions ( shelter, sanitation, clean water , health care and etc) death rate and birth rate reduce as more people become inclined to have fewer children. As standard of living increases, there will be more immigrants thus an increase in population. Government policies which encourage people to have lesser or more children also has a significant effect on birth rate too.
In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.
Neighboring Iran and Afghanistan to the west, China to the north, and India to the East Pakistan has a diverse geography consisting of flat plains and mountainous regions. The country is divided into four Provinces: Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan. Located in the northwest between Afghanistan and the provinces of Khyber Pakhtunkhwa and Balochistan are the Federally Administered Tribal Areas. The FATA is home to a number of various tribes of ethnic Afghans known as Pashtun(Weightman 2011).
According to Collier & Dollar, (2001) economic growth is normally dependent on the nature and quality of economic policies that a country implements. In South Africa, soon after apartheid the government have tried to wrestle with the multiple objectives which are namely to reduce poverty, increase employment, increase international trade as well as increasing the rate of economic growth. According to Mohr et al, (2015) the macroeconomic objectives are used to assess the performance of the economy. The five macroeconomic objectives that will be discussed in this assignment are firstly the economic growth, full employment, price stability, balance of payments and equitable distribution of income. The assignment will then evaluate each of the objectives of macroeconomic growth and asses where South Africa as a country is performing on each of these respective points.
There are at least four different research perspectives about the relationship between development and economic growth. Firstly, economic growth is the basis for social development. Secondly, economic growth and social development are not necessarily linked. Thirdly, both economic growth and social development are not basic causes by each other, but they depend on interaction. Fourthly, social development is the prerequisite for economic growth (Mazumdar. 1...
Economic growth is one of the most important fields in economics. In current generation economic is developing well. Economic growth is really important to country and for the world as well. Economic are one of the identity for country because it shows a country development and attraction for other countries (F, Peter. 2014). For example well economic develop such as Singapore, Dubai, New York, and Japan. These countries are well develop and maintaining their economic growths. Economic growths are really important because higher average incomes enables consumers to enjoy more goods and services. Then, lower unemployment with higher output and positive economic growth firms tend to utilize more workers creating more employment. Enhanced public
It is natural to be misled by the idea that economic growth is the key
The dependent variable, which has been extensively used in prior examinations, is rate of growth in gross domestic product per capita. Moreover this research will cover the time range between 1960 and 1990; and the information measuring the dependent variable will be extracted from the World Bank data set. The data source is reliable because it measures the strength and size of a country’s economy of every year within a specified time period, hence allowing this paper to examine the influence that general trends have on growth rates. For the independent measures, I will utilize both qualitative and statistical analysis from previous research (which examines level of education, regime type, comparison of exports and imports, etc.) carried out by government agencies, international organization and scholars.