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Published:July - Dec 1999
The educational system in Pakistan is beset with multiple dilemmas
and constraints. Some are underlying and deep-rooted, while others are
rooted in immediate, superficial reasons. Understandably all are inter linked
and each affects the other. One that pervades as an under current is the
issue of lack of Equal Opportunity (EO) which takes myriad forms when
translated into practice. This paper delineates the various forms the absence
or imbalanced prevalence of EO takes within the context of the education
system of the country, and primary education in particular.
KEYWORDS:
Pakistan, educational system, social development, statistical data, literacy, poor education indicators.
JEL: N/A.
Published:July - Dec 1999
Textile is one of the most heavily protected sector in developed
countries. This paper addresses the issue of anti-dumping measures, a new
form of trade restriction. Protectionism is still common place in textiles,
tariffs remain high and progress in eliminating import quotas has been slow.
In fact, protectionism is on the rise in a new guise: anti-dumping cases
against Asian countries are multiplying in the US, EU and around the world.
Pakistani textiles (yarn, unbleached grey cotton fabric and bed-linen) exports
are being increasingly subjected to the initiation of anti-dumping
investigations, which creates uncertainty and depresses business sentiment.
Investigation periods are quite lengthy and the legal costs of defending
against these cases are enormous. These result in a great loss of time that
could be better spent in a productive manner. This phenomenon is a matter
of great concern because it has created a damaging impact on the normal
growth of trade. In fact, by merely initiating an anti-dumping case against
exporting country's manufacturers, or even just threatening to do so,
developed countries producers can cause extensive disruption to the market
for an extended period of time. At the end of the day, whether dumping
and injury are proven may no longer matter for some Asian manufacturers,
who could be driven out of the market simply as a result of the case being
initiated.
KEYWORDS:
Anti-dumping, protectionism, WTO, Pakistan, procedural rules, ADP agreement, preliminary affirmative determination.
JEL: N/A.
Book Reviews: Rural Credit and Self-Help Groups: Micro-Finance Needs and Concepts in India
Viqar Ahmed
Published:July - Dec 1999
Micro-finance is an idea which occurred to developing countries
considerably late in the day. When during the colonial era, the modern
sector and its peculiar institutional framework emerged in the South Asian
continent, the system catered to the needs of the modern sector i.e. trade
and industry. Agriculture did not receive the kind of attention that it
deserved although colonial rule was responsible for destroying the viability
of this vital sector. A compensatory effort to provide finance for the rural
sector would have been in order. However, this task was left to the cooperatives and informal sources of credit. The governments in the colonial
system only undertook “distress lending” in the form of Taccavi loans on a
somewhat limited scale.
KEYWORDS:
Micro-finance, rural credit, Third World, cheap credit, assessment, India.
JEL: N/A.
What use is the Neo-Classical Theory of International Trade? Part II: International Trade without Comparative Advantages
Sikander Rahim
Published:July - Dec 1999
The first part of this paper showed that the neo-classical theory of
international trade leads to conclusions that contradict the facts or leads to
no conclusions that can be verified. The version of the theory with two
factors and the same production functions in different countries has some
appeal because relative abundance of factors or intensities of their use have
consistent meaning and make the theory plausible, but it results in the
Leontief paradox and factor price equalisation. This appeal is lost when the
number of factors is greater than two or production functions are not the
same in different countries; relative abundance and intensity can not be
consistently ranked or their connections to the pattern of trade is not the
simple one of the Heckscher-Ohlin theory. Nor does the theory have much
left to say; the kind of verifiable general prediction that was possible with
two factors is not possible when the factors are more than two; such
conclusions as can, in principle, be drawn are specific to the general
equilibrium calculated for a given set of production functions and a given
set of countries, with specified factor endowments and consumer
preferences.
KEYWORDS:
International trade, neo-classical theory, shortcomings, specialisation, models, Heckscher-Ohlin, Haberler, Bensusan-Butt, mechanised production.
JEL: N/A.
Efficiency Wages in Pakistan's Small Scale Manufacturing
Abid A. Burki
Published:Jan - June 1999
This paper investigates wage differentials between workers in
subcontracting and non-subcontracting firms, using data from a recent
survey of small manufacturing firms in Gujranwala, Pakistan. The paper finds
that subcontracting workers receive a high wage premium and invokes
efficiency wage arguments to explain this differential. The paper argues that
due to a client/vendor monitoring problem it is optimal for subcontracting
firms to pay higher than the market clearing wages. The use of Heckman's
two stage procedure to test for sample selection bias fails to give such
evidence. A decomposition of the wage differentials indicates that
endowment differentials partly explain higher wages for subcontracting
workers while the bulk of this wage gap is explained by differential returns
to workers' attributes.
KEYWORDS:
Small manufacturing firms, Pakistan, allocation of resources, adjustment policies, competitive equilibrium model, cumulative wage growth.
JEL: N/A.
Valuing Environmental Costs due to Automobile Pollution in Pakistan
M. Qamar uz Zaman
Published:Jan - June 1999
In the current era, increased attention is being paid to protect the
environment in developing countries. The concern stems primarily from
recent advances in information concerning health problems associated with
pollution. The extent of the deep-seated dangers present has motivated
detailed studies and consequent pollution abatement programmes to be
adopted by several countries. However, the evaluation of projects and policy
reform for environmental effects in Pakistan has been rare. The task thus is
posed to provide credible estimates of the benefits that can be provided by
pollution abatement, and the corresponding costs.
KEYWORDS:
Pakistan, automobile pollution, air pollution, environmental costs, air pollutants, gasoline, petrol, emissions, health cost estimates.
JEL: N/A.
Published:Jan - June 1999
The debate over the relationship of population and development is
now more than 200 years old, starting with the treatise on population by
Malthus, in 1798. The increase in population, ever since, has remained a
matter of concern for economists and development planners. The most
recent high point of the issue was witnessed at Cairo in September, 1994.
The conference which was attended by more than 10,000 persons from all
over the world ended with an agreement on the issues involved in the
growth of population and the economy. The outcome was a Plan of Action
for the next twenty years, which would concentrate on Reproductive Health
in order to obtain, “a state of complete physical, mental and social wellbeing, and not merely the absence of disease or infirmity in all matters
relating to the reproductive system and its functions and process”. This can
be a turn-around in global efforts for human health and welfare, if properly
implemented.
KEYWORDS:
Population growth, plan of action, poverty, industrialization, development, sustainable development, social development, Pakistan.
JEL: N/A.
Published:Jan - June 1999
Higher Education (HE) in Pakistan presents a case of the "inverted
pyramid". The need of the country is to eradicate illiteracy and yet on the
eve of the new millenium it stands at a humble 45 per cent. Poverty in the
country is on the rise. Given the constraint of the financial resources the
downward spiral is evident and yet the masses at the grassroots level could
greatly benefit from increased literacy skills. Equipping them with functional
literacy skills would clearly improve their quality of life. Given the two
opposing trends whereby the country needs to provide massive literacy skills
to its populace and the infrastructure of education heavily biased in favour
of HE, an innovative approach within the education system and its mode of
delivery is needed. This paper focuses on one such possibility and proposes a
model to develop a link between the two to place the benefits of HE at the
doorstep of the populace where it is desperately needed.
KEYWORDS:
Pakistan, higher education, human development indicators, HDIs, national development programmes, community development unit, CDU, BUNYAD Literacy Community Council, BLCC.
JEL: N/A.
Major Determinants of Female Child Labour in Urban Multan (Punjab-Pakistan)
Karamat Ali and Abdul Hamid
Published:Jan - June 1999
In recent years, the sensitive issue of child labour has received
world-wide attention and has become the focus of serious discussion in
developing as well as developed countries. Any exact information on child
labour is usually hard to come by as most of the children work in the
unorganised informal sector, which is neither regulated by labour laws nor
is monitored by any organisation. These working children are usually
illiterate and start working at a very early age, are inexperienced and
vulnerable, they usually work long hours in deplorable conditions, have no
medical cover, go without sufficient and proper food and clothing, and get
little rest and recreation. In this paper, an attempt has been made to
analyse the major causes of female child labour in the city of Multan and
certain measures and policies have been suggested which could help in
bringing an end to this inhumane practice. Legislation against child labour
is not an ideal solution in a country such as Pakistan. The child labour
phenomena is not as simple as it appears and needs consideration in the
context of the microeconomics of the family and population growth and
macroeconomics of the social security structure of a country,
unemployment, underemployment, opportunity cost and productivity of
formal education. There are very few studies on child labour in Pakistan
and on female child labour, hardly any study can be found. Data has been
collected for 60 female child labourers, employed as maidservants, baby
sitters and other household activities etc. Most of these female children
work in the houses of educated and well off people who are usually against
child labour. This exploitation of child labour cannot be stopped by child
labour laws only. In this regard, other measures such as more facilities for
education and vocational training are indispensable. A group of social
volunteers comprising workers, employers, government officers, media
experts, members of non-government organisations and educationists
should make earnest and sincere efforts to achieve the objective of
minimising child labour and improve their living conditions as much as
possible.
KEYWORDS:
Child labour, Pakistan, female child labour, legislation, unemployment, formal education, literature, education policy.
JEL: N/A.
Published:Jan - June 1999
The obvious fact of female under-representation in educational
management across cultures and nations is mentioned in every relevant
study. Interestingly this phenomenon transcends the dichotomies such as
developed/under-developed, Eastern/Western, Muslim/non-Muslim, First/
Third World countries. Variations are more often due to situational
differences. For example, the percentage of female representation in higher
education management for the U.S., Britain and China as given by Lyn
Davies is respectively 24, 13, and 26 per cent (1992-6; Also see Coleman:
1996), 20-30 per cent in Pakistan (Ibid:4). These statistics could be
misleading for generalisation purposes if it is assumed that a higher
percentage means more educated women or less gender discrimination. We
know that a comparatively higher percentage of women managers in
Pakistan is because of 'women only' institutions. In the contexts where
management jobs are open to men and women, women are in extremely low
numbers, and the situation is not very different in other countries.
KEYWORDS:
female under-representation, female participation, sex-roles, management, Pakistan.
JEL: N/A.
What use is the Neo-Classical Theory of International Trade?
Sikander Rahim
Published:Jan - June 1999
International economic policy is now more under the sway of
orthodox economics than it has ever been. The main international economic
institutions, the IMF, the World Bank, the WTO, and the major developed
economies are unremitting advocates of free trade and impose their views on
the developing countries. And the developing countries, whose attempts at
economic development through protection have mostly failed, are on the
whole inclined to accept these views. Over the last twenty years economic
policy in these countries has more and more come to be formulated by
orthodox neo-classical economists, often described in the press as
“reformers”, who advocate more reliance on markets and less protection
against imports.
KEYWORDS:
International trade, neo-classical theory, shortcomings, specialisation, models, Heckscher-Ohlin, Haberler, Bensusan-Butt, mechanised production.
JEL: N/A.
Published:Jan - June 1999
Similar to most countries, the objectives of the taxation system in
Pakistan are not well-defined. Historically, the primary objective has been
resource generation for the government. The taxation system has
simultaneously addressed the secondary objectives of promoting area/sectorspecific economic activities, discouraging undesired imports/production,
encouraging savings and investment. These objectives were met through a
variety of tax concessions and exemptions, rebates and credits, differentiated
tax rates and tariffs. The revenue shortfalls/leakages resulting from
preferential tax treatment of the desired activities were offset through
appropriate changes in various fiscal instruments, e.g. high tax rates and
tariffs, regulatory duties, extended withholding and presumptive taxes,
excise duties on services, and many more. These measures, in turn,
complicated the taxation system and adversely affected the equity, neutrality
and progressivity thereof.
KEYWORDS:
Tax policy, preferential tax treatment, structural reforms, administration, federal revenue.
JEL: N/A.
Published:Jan - June 1999
Ishrat Hussain, a former Pakistani civil servant and currently a World
Bank official, has been writing on Pakistan's economy for the national print
media. Much like the professional economist that he is, his views reflect an
objective approach to a vast range of economic issues. It was now time for
him to correlate his analysis of individual problems and sectors to a
macroeconomic framework and make some sense out of Pakistan's baffling
styles of economic management. How could a compact economy with a rich
resource endowment be reduced to the position of a basket case?
Hussain's hypothesis: a small group of elites managed to "hijack the
state" and "rig the market" for its own exclusive benefit. The "Elitist State"
now controls both the private and public sector. No matter which way the
economy turns ___ market mechanism or state control ___, the goodies
will inevitably land, and are actually landing, in the hands of the controlling
elites
KEYWORDS:
Book review, elite, Pakistan, privatisation, nationalisation, illiberalism, market mechanisms.
JEL: N/A.
Book Reviews: Reasons for Hope: Instructive Experiences in Rural Development
Mir Annice Mahmood
Published:Jan - June 1999
The development of rural areas is now becoming one of the major
objectives of government policy in less developed countries. It has become
part of policy simply because governments in developing countries are
beginning to realise that to tackle poverty effectively, and to reduce the
pressure on urban centres, income levels, as well as the quality of life in
rural areas has to be made significantly attractive to prevent people from
migrating to the relatively higher income urban areas. Rapid urbanisation in
many developing countries has resulted in increased social stress which is
reflected in high crime rates, and a substantial decline in social services such
as education and health, water supply and sanitation, electricity and
housing, etc. The developing countries in Africa, Asia and Latin America are
afflicted with both problems - rural poverty/environmental degradation and
a rapidly urbanising sector that is estimated to double every twelve to
fifteen years.
KEYWORDS:
Book review, rural development, urbanisation, rural poverty.
JEL: N/A.
Published:Jan - June 1999
This is undoubtedly a most useful, updated collection of articles on
various aspects of the Pakistani canvas. It is a valuable contribution given the
relative paucity of material and literature on such topics. Aside from the
somewhat tedious chapter on foreign policy, tiresome by virtue mainly of its
bulk (stretching over a total of about a hundred pages in its entirety), the
articles make for interesting and refreshing reading for not merely the
specialist but the layperson as well.
If length is any indication of importance, then surely it is a case of
misplaced priorities to have given so much space to a subject such as foreign
policy and, in comparison, the pieces on such vitally crucial issues as
population planning and human rights are allocated, for whatever reason, a
considerably less quantum of space in the book.
KEYWORDS:
Book review, Pakistan, economic development, human rights.
JEL: N/A.
Published:Jan - June 1999
This is the second edition of Dr. Saeed Shafqat's popular and well
received book, the first edition of which came out in 1995. Pakistan studies
has been an integral part of the country's educational syllabi and competitive
examinations for many years now. Unfortunately the syllabi for our school,
college and university students reflect a narrow definition of the subject.
Not much attention has been paid to historical authenticity and accuracy of
facts. The approach in general is simplistic and one is sorry to note,
jingoistic. No wonder this discipline, whose importance cannot be
overemphasised, fails to capture the minds and imagination of the young
students and the level of perceptions manifested by its study are abysmally
low. There is need to raise the tone and level of debate and to move beyond
the Pakistan Movement to which this subject has largely been confined.
Even here the treatment is by and large narrow and simplistic.
KEYWORDS:
Book Review, Pakistan studies, Pakistan Movement, syllabi, Pakistan.
JEL: N/A.
Structural Adjustment and Health in Pakistan
Shahrukh Rafi Khan and Sajid Kazmi
Published:July - Dec 1998
Government health expenditures as a percentage of GDP have
declined in Pakistan, though not in absolute real terms, over the structural
adjustment period. Progress over this period is evident on a number of health
indicators. However, Pakistan still lags far behind the means of low income
countries and South Asian countries in all child survival statistics. In view of
this, and since the evidence shows a significant and sizeable association of
public sector health expenditures and the decline in infant mortality rates,
there seems little justification in cutting public sector expenditures.
KEYWORDS:
Government, Pakistan, government health expenditures, public sector expenditures, basic health unites, rural health centres, Social Action Plan, SAP, service delivery.
JEL: N/A.
Published:July - Dec 1998
The assumption that people were to be given theatre was of course
in keeping with the government fiction that people were to be given
development particularly if they behaved themselves. (Wa Thiong’o,
1986:41)
Despite our short history, the norms of scholarship in Pakistan have
already become well entrenched: the grooves already seem so deep that
digging ourselves out of them may present some difficulties. (One example
of that in the social sciences generally, and political science and history in
particular, is the retelling of the major historical events and noting major
trends without offering any remarkably new interpretations). The need, in
other words, of newer and different understanding of where we are and how
we got there is considerable. One purpose of introducing Escobar’s (1997)
Encountering Development and related materials is to offer an opportunity
to get out of these academic ruts. Specifically, two exits are simultaneously
provided by Escobar; one lets us interrogate the dominant narrative of
development, and the other enables us to consider the possibilities that
postmodernism opens up. He applies the latter to the former, which is an
uncomplicated way to make what is valuable in postmodernism clear and
accessible. (In what follows, the numbers in parenthesis refer to pages in
Escobar’s work).
KEYWORDS:
Development, postmodernism, international organisations, Third World, colonialism.
JEL: N/A.
Mandatory Rules of Law in International Business Arbitration
S.M. Hyder Razvi
Published:July - Dec 1998
Of all mankind’s adventures in search of peace and justice,
arbitration is amongst the earliest. Long before law was established, or
courts were organised, or judges had formulated principles of law, man had
resorted to arbitration for the resolution of discord, the adjustment of
differences and the settlement of disputes.
One of the recurring themes in International Business Arbitration is
the tension between the will of the parties and the ability of states of
regulate the conduct of arbitration proceedings. The general trend in
international commercial arbitration is to respect, within limits, the will of
the parties regarding the choice of law and the procedure for carrying out
their arbitration. Thus, party autonomy is recognised as one of the cardinal
elements of international business arbitration.
KEYWORDS:
International business arbitration, proceedings, arbitration international, arbitration, disputes.
JEL: N/A.
Published:July - Dec 1998
This study raises policy issues arising from the fact that the present
tax-expenditure policies and institutional set-up at both the provincial and
local government levels of the Province of the Punjab are dated and need
revision.
There is now an active awareness within the Punjab Province that
substantial changes are necessary. The broad outlines of these required
changes which have been identified in this study, as follows:
i) The Provincial Government needs to recognise that the 1997
National Finance Commission (NFC) Award’s projected high level of
Federal Divisible Pool Revenues are unlikely to materialise in the
light of the substantial changes made in tax policies by the post
1997- Award Federal Government as well as by the depressed state
of the economy. As a result the historical pattern of Federal
Transfers covering more than 85 per cent of consolidated Punjab
Provincial and Local Government expenditures is unlikely to be ever
repeated. In fact the 1997-98 coverage of 75 per cent is likely to go
down even further and this gap needs to be filled by active resource
mobilisation and expenditure curtailment measures.
KEYWORDS:
Fiscal resources, tax collection, local governments, provincial governments, income tax, provincial excises, finances, provincial revenues.
JEL: N/A.