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...
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... 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
The economy of a nation is a major indication of its success. One aspect of a nation's economic success or failure is the system of government. Whether a nation is socialistic, communistic, ruled by absolute sovereignty, or based on capitalistic principles can be a key factor in a country's economic success or failure. Government is the foundation of an economy but it is not what determines its success. Issues that determine a nation’s economic success include growth strategies, improved or increased resources, investment and savings, government policies, trade, foreign direct investment, income distribution, labor allocation, innovations in technology, and several other economic issues. I feel that economic growth is the main indicator of economic success. Additionally, innovations in technology, improving human capital, and improving foreign direct investment (FDI) are three issues that can lead to economic growth.
My country (Kenya) has is almost similar to Pakistan. It has experienced stronger political stability and attracted many investors. Generally, Kenya is among top ten African countries that attracts business, protects investors, has a relative ease to start businesses.
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.
Pakistan which is known as the Islamic Republic of Pakistan is country in South Asia. Having a population more than 180 million, it is the sixth ranked for the most population, and it is the 36th largest country in the world in terms of area. Pakistan is surrounded by China to the North, India to the East, Afghanistan to the West and Iran at South. Interesting fact is that Pakistan shares it’s marine border with Oman.
There are two types of economic growth, ACTUAL and POTENTIAL. We have to recognise the difference between actual and potential economic growth.
For any country, in the way of development, needs cordial relations with its neighbors in political, social and global issues to create a healthy environment for development. Pakistan, one of the most important neighbor of India was once homogeneous political unit with India before independence and the struggle for freedom was fought collectively. India’s relations with Pakistan are the most complex of its ties with its neighbors and can be understand by following historical events :
Pakistan is a growing country. The holidays, religion, housing, family, marriage, divorce, and dating make up just a bit of the country. Many other things make Pakistan a whole. The most important out of the characteristics discussed, family is at the top of the list to making the country special.
The Islamic Republic of Pakistan, the sixth most populated country in the world, is in South Asia. Its people and traditions reflect many diverse cultures. It is administratively divided into, four provinces: Punjab, Sindh, Khyber Pakhtunkhwa (KPK) and Baluchistan, the federal capital Islamabad and seven Federally Administered Tribal Areas (FATA).
The topic that I have selected for my chapter evaluation essay is that of “Economic Development”. This paragraph above is the best summary of the chapter’s contents. In this chapter the author discusses the influence of development on the three worlds of countries. These worlds are benchmarks set to assess countries economic states relative to each other.
Considering the situation of Pakistan in last few years, the Government of Pakistan has taken some measures which commits for better access to critical public services for the poor. There were different strategies were made to reduce poverty in the country. Along with these strategies to control poverty that prepared by the Government, there was the need of major improvements in education, health and other basic necessities (including food and water etc.) sectors. To tackle with above mentioned, two major initiatives were taken by Government – i) Khushal Pakistan (a comprehensive pover...
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...
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.
Economic Growth refers to the progressive change in the expansion of production of goods and services which can be indicated as Real Gross Domestic Product (GDP) by a country over a given period. It is achievable for the country to prosper if the economic growth was well-maintained over the years. However, gradual or lack of economic growth would cause a nation to drop into a devastating poverty. (Parkin, 2014). Therefore, sources of economic growth are vital to a nation’s advancement.
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).
Pakistan can be categorized as the “Agricultural Society”. Industrial sector is also working in Pakistan but it’s not fully developed as that of other countries including the America etc.