Some would claim that charity is a core cultural trait of mankind. The urge to help others is a selfish act of survival of the group and hence individual security. In today’s world, welfare has assumed a wider meaning and is linked with the economy of the state, the concept of human rights of society, structure of society and cultural expression of welfare. The state may be willing to contribute towards welfare but poor economic conditions may not allow welfare programmes or only allow low key programmes. With poor level of governance most welfare work comes to a standstill. In such situations the burden of poor economies can be shared by all rather than the poor alone. Human rights, as defined by the UN, impinge on the basic concept of welfare as seen by individual states. The right of all people to shelter, security, health, job, education as well as freedom to speak, associate and practice religion are concepts difficult to swallow for many societies and states. Social disparity may not allow many to grant rights to others. Yet social welfare is a practical arm of human rights and not an act of charity to be left to individual whims. In Islam, social welfare is the right of the underprivileged and not an act of charity extended by the state or individual. On the other hand the welfare of all the citizens of the state is vital for economic and social development. There are more than 94 indicators to measure social development. Each country’s performance in this area can be monitored following each intervention. Although social welfare had been debated by philosophers for a long time, it only became important after the Industrial Revolution in the 1840s. This was the time of the birth of modern cities with all its problems of communal living and compression of people into tight compartmental life, dynamics new to the first generation rural society. Since the Industrial Revolution started in England, the first city to cross the 2 million mark inhabitants a hundred years ago was London. The responsibilities of the new industrialised state was projected in the domain of social welfare of its people. Social welfare was the responsibility of the parish but with a large number of new towns, this became impractical. The Poor-Law Amendment Act was passed in 1834 and the Municipal Corporations Act in 1835. These were the basis of social welfare in the Britain of the future (Hill, 1997). Social welfare at the level of local government started in the middle of the 19th century West and emerged as a profession. Social welfare work in the hospital started in Massachusetts General Hospital, USA in 1905 (Morales and Sheafor, 1989). Social welfare departments in hospitals in Pakistan started in 1963. The Lahore Journal of Economics, Vol.3, No.1 106 The concept of a welfare state was introduced in the 1910 budget by David Lloyd George and Winston Churchill which was blocked in the House of Lords. In the USA Child Welfare was started in 1912 and social welfare was introduced during the Roosevelt era in 1935. The Social Security Act of 1935 was a significant landmark for the US. WH Beveridge (1879-1963), born in Rungpur, now Pakistan) is considered as the father of the modern welfare state when he produced the Beveridge Plan in 1944. The Beveridge Plan recommending war on Want, Disease, Ignorance, Squalor, and Idleness formed the basis of post war liberalism (Dean, 1994). It was after World War II that the Labour Government in Britain put the theories of social scientists into practice with great enthusiasm. It was a combination of “Keyesian economics and Beveridgean social concern that gave the welfare state its strong political legitimacy and popular appeal”. Health, education, housing, minimal wages, money for the unemployed, care of the handicapped and destitute were assured by the state.
KEYWORDS: economy, cultural expression, welfare, Human rights, UN.

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The fifth decennial population Census was held after 17 years and its data is now being processed. Originally the Census was scheduled to be held in March 1991. The exercise had been actually initiated that year from Sindh but was soon abandoned when two major ethnic groups in the province started accusing each other of resorting to false enumeration in order to achieve a fake majority in the province. Some of the prominent Punjabi politicians also objected that the head count figures in Sindh were being engineered in order to stake claims to more resources for the province at the expense of other federal units. The Census was postponed in view of the objections and it was announced that the exercise would be undertaken in October the same year. This time the Balochistan government announced that it would reject the Census results if thousands of Afghan refugees living in the province, many among whom had acquired fake Pakistani identity cards, were not first repatriated to their own country. As the federal government failed to do this, the Census had to be postponed without any new date being fixed.
KEYWORDS: Census Problems, Pakistan, Afghan refugees, Punjabi politicians, NWFP, PKMAP.

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In any economic system, be it a free market or a command economy, the elementary functions of production, distribution and consumption take place within the natural world. The natural world provides the raw materials and the energy inputs for the production process whereas production and consumption leave “residuals” or waste products which go back into nature. The manner in which the residuals are handled will infact tell us how they may lead to pollution or the degradation of the natural environment. (a) explains nature in its role as a product of raw materials and (b) explains what the impact of residuals is on the natural world. Therefore we can see that environmental economics draws from two angles. Primarily it is the study of waste flow management and secondly, it studies the impacts of human activity on environmental resources. Thus one’s misconception of environmental problems only being constrained to pollution are removed. Infact, environmental economics focuses not only on pollution oriented problems but also looks at issues such as habitat disruption caused by human activities in an economic system. A good example of this is a housing development scheme which will disrupt the natural habitat and at the same time bring an array of problems such as sanitation, house waste disposal, etc. Analysing the environment from the perspective of an economic system we have to establish how this
KEYWORDS: Environment, Economic Systems, pollution, nature, resources, environmental problems.

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Tariq Banuri, Shahrukh Rafi Khan and Moazam Mahmood (ed.), Just Development: Beyond Adjustment with a Human Face, Karachi, Oxford University Press, 1997. Pp. 207. Price not mentioned. The Oxford series of books published on the occasion of the golden jubilee of Pakistan’s independence constitute a welcome and high quality addition to material on various facets of life in the country. “Just Development” reviews Pakistan’s development from the human angle and looks at the structural adjustment programme, debating whether it is possible to have “adjustment with a human face”. Perhaps the most enduring element of our development strategies has been the relegation of social objectives to low priority and the consequent neglect of social sectors. This has been as true of decades of high growth – 1960s and 1980s – as of those of low growth – 1950s, 1970s and 1990s. Why?
KEYWORDS: golden jubilee, Pakistan’s independence, constitute, human face, government, bureaucracy.

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S.M. Burke and Salim Al-Din Quraishi, Quaid-i-Azam Mohammad Ali Jinnah, his personality and his politics, Karachi, Oxford University Press pp 412 Rs. 495/-. A convincing vindication of the Quaid’s Conversion from Ambassador of Hindu-Muslim unity to founding father of Pakistan. A book which most Pakistanis have been waiting for for the past five years or so, has at last been published by The Oxford University Press, Karachi (1997) as part of their Jubilee Series. A dispassionate study of the Quaid’s life and his personality illustrates that he was a luminary in three different walks of life. Firstly, as one of undivided India’s renowned legal practitioners; secondly, one of it’s leading legislators and, thirdly, as one of it’s leading politicians. It is universally recognised that the Quaid attained not only world stature, but won a permanent place in world history. Through his dynamic and inspiring leadership, he not only won independence from the then British colonial rule, but had the sole distinction of altering the world map by carving into existence the largest Muslim state of its time in the comity of nations – bigger than the United Kingdom and France put together. It is the role of a leading politician which this latest publication principally deals with.
KEYWORDS: Quaid-i-Azam Mohammad Ali Jinnah, personality illustrates, legal practitioners, legislators, politicians.

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Rafi Raza, (Ed.), Pakistan in Perspective, 1947-1997, Oxford University Press, 1997. pp. 320. 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.

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Pakistan’s economic reforms that were set in motion in 1991 rest on the tripod of privatisation, domestic deregulation and trade liberalisation. A critical component for strengthening the reforms and improving their effectiveness will be the availability and quality of human resources for accelerating industrial growth. This paper, therefore, attempts to: a) Review the success of Pakistan's vocational and technical education institutions in satisfying the market demand for various skills. b) Based on these assessments, identify the key constraints to the availability of technical skills and make recommendations on how the government can improve the efficiency and effectiveness of training arrangements.
KEYWORDS: Technical training, vocational training, labour demand, workforce, manpower, public sector, public sector training.

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This is a conceptual paper on the analytics of the phenomena of economic corruption. And it is very much a working paper, begging comments. The paper concentrates on what appears on first reflection a redundant question -what is the impact of corruption? The almost knee jerk answer is loss of income. However, when modelling economic corruption we run into the problems of determining the questions of: loss of income for whom - the principal, the agent, the state, the consumer, the economy? - how? and by how much?
KEYWORDS: Corruption, macroeconomy, macroeconomics, comprehensive model, analysis.

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The governance of an institution is normally partly ensured by other institutions, which depend on yet other institutions for their governance. But who ultimately guards the guardians? For the liberal electoral democracies of Europe and America the answer that evolved from the political thought of the eighteenth century and the limited liability joint stock company of the nineteenth was, crudely put, checks and balances and voters, who could be the electorate or shareholders. Its limitation is that it presupposes a state and the right of the voters to vote in their own interest. How, then, can good governance be ensured for international organisations, especially the World Bank and the International Monetary Fund, in which the representatives of the developed countries hold the majority of the votes on the Boards and are expected to cast them, not in their own immediate interests, but in the long term interest of the developing countries that borrow from these institutions?
KEYWORDS: World Bank, governance, institutional governance, reorganisation, reform, internal organisation.

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This paper is the first systematic attempt at understanding the nature and extent of hazards faced by child workers in the construction and related industries, which perhaps are not only growing more rapidly but have far greater hazards than any other set of occupations in which children are employed.
KEYWORDS: Child labour, child worker, education, hazard, Pakistan, working conditions.

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Pakistan experienced the reverberations starting in 1988 of the changes that swept the Asian emerging markets. To create an investment friendly environment the GoP adopted liberal economic policies of deregulation, privatisation, opening of capital markets to foreigners, liberalisation of foreign exchange regulations and dismantling of investment control - policies that lead to a significant increase in direct and indirect foreign investment in the country. These changes resulted in a drastic increase in the financial assets of Pakistan with stock market capitalisation rising from Rs.l88 bn in 1991 to Rs.547 bn at present, daily trading volume improving from 2 mn shares in 1991 to 50 mn shares at present and number of listed companies rising from 542 in 1991 to 788 at present.
KEYWORDS: Capital markets, domestic market capitalisation, investment, mutual fund investment, Pakistan.

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In 1995 the Republic of Korea (ROK) was officially admitted to the Organisation for Economic Cooperation and Development (OECD). This organisation groups together industrially developed countries of the world. Recently, the World Bank has also released a study of China that predicts that China is going to become the second biggest economy in the next fifteen years if its economic growth follows the pattern of the last fifteen years. ROK is the only country from among the developing countries to join the ranks of the developed industrialised countries in the last thirty years. However, it is still a small country compared to China. Hence when China completes its transformation into an industrialised country the whole world will be affected. How did South Korea achieve such an accelerated transition to prosperity? What measures were adopted by the Chinese leadership that has allowed China to grow so rapidly? There are many factors that have been cited to explain Korea's miracle, and rapid Chinese growth. However, In the following we will highlight the role that education, science and research and development (R&D) have played in their success.
KEYWORDS: South Korea, ROK, GDP, OECD, research and development, R & D, investment.

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This article will attempt to answer the question why the redistribution of land ownership (i.e. land reform) is important and even necessary for our society's progress and development. Why there remains a crying need to concretely study the question of agrarian land ownership and all it implies in terms of political and economic power distribution and its social fallout in the rural milieu. Let us begin with an examination of how the present land ownership patterns originated and evolved. A discussion of the pattern of agrarian land ownership must necessarily take as its main focus the areas where agriculture is the mainstay. That inevitably means the provinces of Punjab and Sindh. The other two provinces, NWFP and Balochistan, with the exception of some relatively limited areas where canal fed or barani cultivation exists, have economies that are mixed pastoral/agricultural, an economic base reflective of their surviving tribal structures.
KEYWORDS: Land Reform, land ownership, agrarian reforms, Pakistan, economic distribution.

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Child labour exists throughout the third world including Pakistan. For some unknown reason, the Western Press has chosen to single out Pakistan to decry the system. The May 1997 issue of the Readers’ Digest carried a particularly vicious article entitled `No Life for a Child’ giving harrowing tales of beatings and other forms of coercion to make little children in Pakistan to work in factories. Advantage is taken of the fact that there has been no census in the country for two decades to bloat the figures of child labour. One estimate going the rounds is 15 million. But the more popular figure is 8 million which both UNICEF and SAARC have adopted. ILO produced a figure of 6.3 million till, in 1996 it sponsored a survey which turned up the figure of 3.3 million. In a country with a population of 132 million, every man, woman and child of which is under a debt burden of about Rs 13,021 per annum the figure of 3.3 million labouring children should not take anyone by surprise. Not that this is any justification for child labour.
KEYWORDS: Child Labour, welfare, enforcement, ILO, UNICEF, social welfare, education.

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Policy formulation and implementation are the chief, though not the only, business of a modern government, implying exercise of its power. In a democracy the people themselves grant permission to the government to exercise power in their name. Thus through the democratic process power is transformed into legitimate authority. However, there is a feeling that a policy, formulated through due procedures at the highest echelons of the government, is sometimes not implemented in the same spirit or in the same way as was originally intended by the policy makers. Thus there If need to locate and identify the points where such lapses take place.
KEYWORDS: Policy formulation, policy implementation, political leadership, administrative leadership.

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In economics we study how and why “people” whether they are consumers, firms, non-profit organisations or government agencies make decisions about the use of valuable limited resources. When studying the environment from an economics perspective we are in fact primarily focusing on how and why “people” make decisions that have environmental consequences. Secondly, we focus on how we can manage institutions to bring these environmental impacts more into balance with changing human demands and the demands of the ecosystem itself. If we follow this economic approach several answers emerge to the basic question asked in environmental economics, that is “Why do people behave in ways that cause environmental degradation?”
KEYWORDS: Environmental resources, environmental economics, environmental impacts, Pakistan.

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In this paper we cite evidence regarding the likely impact of IMF/World Bank policies on labour and the poor in Pakistan. Our findings show that since the 1987 bout of structural adjustment, public sector employment has decreased while wages have been frozen. Also, overall unemployment in occupations with a high incidence of the poor has dramatically increased and real wages of skilled and unskilled labour sharply declined. In addition, subsidies that were critical to the consumption pattern of the poor have been cut while the burden of indirect taxes on the poorest income group has increased. Not surprisingly, there has been an increase in poverty and inequality, particularly in the rural areas.
KEYWORDS: Structural adjustment, Pakistan, IMF, International Monetary Fund, structural adjustment agreements.

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The diverse growth experience of economies across the globe is perhaps the most intriguing question that the economics profession faces. The economies of East Asia have grown rapidly over the past three decades, while the economic performance of the South Asian and Latin American countries has been relatively mediocre, although better than that of the African countries, where the per capita incomes have been generally declining. Among the developed countries also, there has been considerable diversity of economic performance. There is no dearth of research on the question, but there is little agreement among economists on what explains the diversity of economic growth experience. One reason for the absence of consensus is that economic growth is a relatively recent phenomenon and we, as economists or social scientists, still do not understand well what factors bring it about. Sustained economic expansion and rise in living standards can be traced back only to the late eighteenth century, i.e., the time when the Industrial Revolution started in Great Britain. This is not to suggest that there had been little social or economic change prior to that epoch. Quite the contrary. Agricultural practices had been improved over time, and there is a rich record of the mastery and ingenuity of artisans all over the world. But such improvements in products and processes as occurred over the period prior to the Industrial Revolution somehow did not become an economic force, leading to a general improvement in the living standards.
KEYWORDS: Global economy, analytics, growth, technology, total factor productivity, TFP.

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In the post war world, numerous attempts at all levels – multinational, bilateral and domestic – have been made to foster growth and development in the low income world so that these countries can catch up with their richer brethren from the industrial countries. Why has growth not been faster? What can be done to make these countries achieve more balanced and sustainable growth? These are important questions of the day that are preoccupying all serious positive social science and development policymaking. To a large extent, many of the answers that are being derived relate to the failure of these countries to develop key institutions. Most practitioners and thinkers are now in agreement on this issue but remain perplexed at what is required to develop these institutions. The public sector’s attempts at developing the institutions within its fold have not succeeded. The fostering of non-governmental institutions also remains fairly uneven in its results. Donor funding for institutional support too has had very limited results despite the extensive history of sectoral and institutional reform that has been supported by substantial financial and technical assistance and resources.
KEYWORDS: Growth, Development, institutions, institution-building, donors.

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The Pakistan economy is currently going through a period of much needed structural adjustment focusing on: (i) Reducing fiscal deficits from about 6 to 4 per cent of GDP, which should reduce public sector borrowing and bring down interest rates and inflation; (ii) Reducing tariffs from an average of about 80 per cent in 1993 to about 60 per cent currently and about 45 per cent next year – which while requiring painful adjustments particularly in the industrial sectors, should make Pakistan more competitive in the long term and also benefit consumers; (iii) Reducing the size of the public sector in the economy by privatizing nationalized banks, nationalized and public sector industry and public utilities including power, gas and telecommunications, which should increase the efficiency of these sectors. All these measures have implications for employment generation. In the short term they are slowing down the economy and therefore employment creation is not taking place at the earlier higher rates. In the long term they should help stabilize the economy and add significantly to economic growth.
KEYWORDS: Pakistan economy, employment generation, employment, government policy, GDP, formal employment.

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