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The Political Economy of Growth Without Development: A Case Study of Pakistan

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Abstract

Political economy models of growth and public service provision stress the incentives of the elite under high inequality to under-invest in the human capital of the majority. Other political economy models stress that ethnic divisions will lead to low public goods provision. This paper examines Pakistan as a case study of these two propositions. Pakistan has had respectable per capita growth over 1950-99, intensive involvement by donors and international agencies ($58 billion in foreign aid), and has a well- educated and high-achieving elite and Diaspora. Yet Pakistan systematically underperforms on most social and political indicators -- education, health, sanitation, fertility, gender equality, corruption, political instability and violence, and democracy -- for its level of income. It systematically under-performs on improvements in these indicators for its rate of GDP per capita growth over time. I call this pattern "growth without development." Large inequalities exist between men and women, between urban and rural areas, and between regions. The donor- and government-supported Social Action Program that sought to address these lags in the last 8 years has failed. This follows a long history of failed government and aid programs to address social lags. While foreign aid and government programs may have contributed to overall economic growth, they were an egregious failure at promoting social and institutional development under the circumstances of elite domination and ethnic division.

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... Pakistani economy has faced multiple challenges in the past. According to a World Bank report (Easterly, 2001), Pakistan systematically underperformed on social and political indicators from 1950 to 1999. These indicators include education, health, sanitation, fertility, gender equality, corruption, political instability, and democracy. ...
... The economic problems of Pakistan have prolonged over almost the last four decades. The indicators reflect that in Pakistan, growth has been observed without development (Easterly, 2001). The researchers hold volatile economic policies responsible for economic challenges (Mahmood et al., 2008). ...
... Especially growth and development in Pakistan affected due to lack of consistent policies (Saboor et al., 2015). According to Easterly (2001), "The poor social indicators lower the productive potential of the economy and its ability to service its high debt, not to mention the loss in human welfare from having achieved so little social and political progress" (Easterly, 2001, p. 33). ...
... Pakistani economy has faced multiple challenges in the past. According to a World Bank report (Easterly, 2001), Pakistan systematically underperformed on social and political indicators from 1950 to 1999. These indicators include education, health, sanitation, fertility, gender equality, corruption, political instability, and democracy. ...
... The economic problems of Pakistan have prolonged over almost the last four decades. The indicators reflect that in Pakistan, growth has been observed without development (Easterly, 2001). The researchers hold volatile economic policies responsible for economic challenges (Mahmood et al., 2008). ...
... Especially growth and development in Pakistan affected due to lack of consistent policies (Saboor et al., 2015). According to Easterly (2001), "The poor social indicators lower the productive potential of the economy and its ability to service its high debt, not to mention the loss in human welfare from having achieved so little social and political progress" (Easterly, 2001, p. 33). ...
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This research paper explores aspects of the Pakistani economy using the Latent Dirichlet Allocation (LDA) technique. The data based on 3,000 articles were collected from two Pakistani English newspapers, Dawn and The News, (2015–2020), through Lexis Nexis database. The headlines of the news articles relevant to Pakistan’s economy, were taken into account. By employing the data-driven approach of the grounded theory, it is found that changes in policies, security preference, textile industry, the shift of energy, inflation, growth and investment, mega projects, sustainable democracy and poverty control need to be focused to overcome the challenges of Pakistan’s economy. It also reveals that mega projects like the China Pakistan Economic Corridor (CPEC) are called to boost Pakistan’s economy. The results show that smooth trading would help reduce poverty in the country.
... Pakistan is a classic case of growth without development. 1 Historically, the growth rate of Gross Domestic Product (GDP) in Pakistan has been around an average of 5% per annum. 2 Yet, its ranking in social development-especially in health outcomesis lagging behind countries at a similar economic level. 3 Pakistan missed infant and maternal mortality targets set in the Millennium Development Goals (MDG) 4 and 5. 4 Recently, it was ranked first among the countries with the highest newborn mortality rate. ...
... ANC and PNC visits increased by 0.8%-points (C) and 3.9%-points (T), and 1%-point (C) and 17.1%points (T), respectively. 10 Compared with the evaluation report of the project team, the Population Council's analysis was an improvement but still suffered from several shortcomings: (1) it associated all births reported to the year of survey, while these births referred to a 3 year recall period; ...
... To make better use of the timing of events, first, we obtained the birth dates from different parts of the PSLM survey and second, we extracted the exact timing of the roll-out of NPPI and its components from project reports. This allows us to (1) use an additional round of the PSLM (2013-2014) and (2) to obtain separate estimates of the effectiveness of the contracting and voucher schemes, that is, two essential programme subcomponents. ...
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Introduction Pakistan is a country with high maternal and infant mortality. Several large foreign funded projects were targeted at improving maternal, neonatal and child health. The Norway-Pakistan Partnership Initiative (NPPI) was one of these projects. This study aims to evaluate whether NPPI was successful in improving access and use of skilled maternal healthcare. Methods We used data from three rounds (2009–2010, 2011–2012 and 2013–2014) of the Pakistan Social and Living Standards Measurement Survey (PSLM). A difference-in-difference regression framework was used to estimate the effectiveness of NPPI and its different programme components with respect to maternal healthcare seeking behaviour of pregnant women. Various parts of the PSLM were combined to examine the healthcare seeking behaviour response of pregnant women to exposure to NPPI . Results Trends in maternal care seeking behaviour of pregnant women were similar in districts exposed to NPPI and control districts. Consequently, only a weak and insignificant impact of NPPI on maternal care seeking behaviour was found. However, women in districts which used vouchers or which implemented contracting were more likely to seek skilled assistance with their delivery. Conclusion We conclude that the objective to improve access to and use of skilled care was not achieved by NPPI . The small effects identified for vouchers and contracts on skilled birth attendance hold some promise for further experimentation.
... Overlooking the voice of young people in educational research poses the risk of preserving power in knowledge that moves in different directions for political purpose [9] with subsequent rejection of entry of narrative in institutions for education and employment [10]. This requires controlling the political listening of voice [11] by centralising the voice as an evaluative tool or an automated causal mechanism with intervals in stress and strain for continuous linguistic reflection, textual observation, and strategic reflexivity [8] that can be verified in the family sphere and validated in different types of educational contexts [12]. This centralisation of voice that engages with society's capability of knowledge and its interventions and approaches in the context of education reveal its influence on parent enablers support, including contributions from different types of education, especially important for young people living in difficult circumstances and challenging conditions. ...
... While women are encouraged to acquire knowledge to support their husbands, this has implications for family mobility [41]. In this respect, mothers of a child with impairment resist, negotiate, and seek information from internal and external sources to overcome their dual exceptionalisation but which increases their workload with little success in reducing the concentration of power in society [12]. While maternal employment is seen as increasing the number of children enrolled in low-fee private education nearby, this also reduces the provision of public education in Pakistan [42]. ...
... This respectful research places controls on the political listening of voice [11] to overcome the risk of preserving the concentration of power in knowledge [9] with subsequent rejection of young peoples' entry in institutions of education and employment [10]. The centralised voice of young people as an automated mechanism of continuous linguistic reflection, textual observation, and strategic reflexivity on parent enablers of education provided scaled evidence on both access to learning and learning to access that is transferrable in facilitating the development of their independent skills that are supported by technology [7] across conditions [12]. ...
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This article examines the support received by young people with hearing impairment from parent enablers of education in Pakistan. In this ethically designed research, the society’s learning pathways of strong and weak knowledge and education centralised the voice of young people with hearing impairment as a methodology to evaluate society’s influence on parent enablers support, including from for-profit and not-for-profit education. The semi-structured interviews were conducted with 20 young people with hearing impairment, 10 each from for-profit and not-for-profit education. The case-by-case analysis of young peoples’ voice showed that in strong pathway, the binding together of family support in education with society formed young peoples’ equal but different identity that shaped an imbalance in gender and social choice of impairment over poverty with restricted translation of for-profit education in employment outside the family. In weak pathway, the family support in education disconnected from society formed young peoples’ same but unequal identity that shaped conflict in gender and social choice of poverty over impairment with limited conversion of not-for-profit education in local employment. In conclusion, alignment of society and parent enablers of education with reference to gender is required for young peoples’ entry in outside and local employment for sustainable development in Pakistan.
... As a remedial measure, GoP prioritized maternal and child health (MCH) among healthcare needs, while reforms were carried out to improve governance, especially in the public sector PHC. The findings of the SAP reviews were one of the factors to set the MCH agenda; that is, gender bias in access to health services and a bias in resource allocation against rural areas (Easterly, 2001). Evidence on effectiveness of health policies ...
... Pakistan is a classic case of growth without development (Easterly, 2001). Historically, the growth rate of Gross Domestic Product (GDP) in Pakistan has been around an average of 5% per annum (Ministry of Finance, 2018). ...
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Since the onset of the Third Millennium, Pakistan did make substantial efforts, yet its progress in the health sector is not encouraging. Except for the public sector review reports and a few small-scale studies, limited evidence was available on investments in the health sector and their effectiveness. In this thesis, we attempt to help fill the evidence gap on the effectiveness of health policies. We review healthcare financing and health outcomes and evaluate two large-scale programs implemented during this Millennium. We used multiple data sources, including data sets of household surveys, public archives, grey and peer-reviewed scientific literature. We applied state of the art methods on resource tracking and program evaluation, which represent an improvement on the past evidence. We find that while the Pakistan government devoted substantial resources to maternal and child health, but majority of the rural poor did not benefit from these investments. Our findings reject earlier claims of either shortage of resources or substantial achievements of the health policies. Management contracting of primary healthcare and the Norway Pakistan Partnership Initiative on maternal and childcare services proved to have had only small effects on the use of these services, either by the general population or by pregnant women and their new-borns. Our findings call for improved governance and transparency in the design and management of future health policies. We conclude that health policies should be devised in the relevant context of socio-economic and cultural factors and should apply a long-term integrated approach.
... Although in some South Asian countries, higher economic growth rates have led to gains in some dimensions of human well-being but not all and not at the aggregate level in particular (Deaton 2008;Easterlin et al. 2011). Pakistan remains one of the lowest performers in South Asia on human development indicators, particularly in literacy rate and health outcomes (see Easterly 2001). Therefore, Pakistan is famously known as a country observing steady economic growth without human development (Easterly 2001). ...
... Pakistan remains one of the lowest performers in South Asia on human development indicators, particularly in literacy rate and health outcomes (see Easterly 2001). Therefore, Pakistan is famously known as a country observing steady economic growth without human development (Easterly 2001). Furthermore, Pakistan remained unable to achieve most of the Millennium Development Goals (MDGs) specifically related to health, population welfare and inequality. ...
Article
To achieve sustainable future for all, United Nations’ (UNs’) Sustainable Development Goals (SDGs-2030) reinforced the formulation of social, economic and human development policies. Pakistan is a country with high population growth rate, among top ten recipients of foreign remittances but facing an acute problem of stagnant human development outcomes over the years. Of note, Pakistan’s economic growth is considered as growth without human face (see Easterly in The political economy of growth without development: A case study of Pakistan, 2001). It is, therefore, important from public policy point of view to understand the short-and long-run dynamics of the relationships between important social, demographic and economic factors. Accordingly, this paper investigates the short-and long-run relationships between population growth, government social spending, foreign remittances inflow and aggregate level of human development in Pakistan using Autoregressive Distributed Lag (ARDL) bounds testing approach of cointegration and error correction models. The cointegration test results showed that there is cointegration among the variables to proceed with the estimations of long-run relationships. Our empirical results confirm the existence of short-and long-run relationships between population growth, remittances inflow and human development in Pakistan. Population growth inversely while remittances inflow positively influenced Pakistan’s human development status both in the short-and long-run. The empirical findings of our study call for designing and implementing robust development policies—that result in effective and sustainable human development—mainly towards viewing population from a more humanitarian and equitable perspective in Pakistan.
... Different economic as well as sociopolitical channels have been suggested by this strand of literature through which inequality can retard economic growth and human development. These channels include the negative effects of inequality on economic growth and human development through its retarding effects for human capital creation (Galor & Tsiddon, 1997;Galor & Zeira, 1993;Piketty, 1997Piketty, , 2000, public provision of social services (Easterly, 2001) sociopolitical harmony, social cohesion (Alberro Alesina & Perotti, 1994 Wilkinson & Pickett, 2006) It is further argued that inequality would not remain tolerable for masses of the society if it persists over a longer period of time because in such situation people may become frustrated particularly in ethno-linguistically heterogeneous societies. Contrary to this, societies may remain socially cohesive if individuals have feelings that despite inequality they have fair enough chances to move up on socioeconomic ladder (Hirschman & Rothschild, 1973). ...
... Health status of individuals is associated with inequality as lower life expectancy, a higher prevalence of HIV infection, high rates of mental illness, and obesity are observed in more unequal societies (Babones, 2008 & Pickett, 2006). Hence, it seems to be pertinent that equity would help to improve human development in the society (Dasgupta & Ray, 1987;Easterly, 2001Easterly, , 2007. ...
Article
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Human development of a society can be affected by different structural, socioeconomic and public policy variables. Income inequality is one of such variables. In literature, it has been identified as an important detrimental factor for human development. However, equal opportunities of upward intergenerational mobility for different segments of the society can mitigate the negative effects of income inequality. This study aims to investigate the role of income inequality and the opportunities of intergenerational mobility for the process of human development. By using the data of different districts in four provinces of Pakistan, we have found that income inequality and educational inequality have retarding effects on human development. Public provision of social services, decentralization, intergenerational income mobility and intergenerational educational mobility have been found to be positively and significantly associated with human development. It implies that the opportunities of upward socioeconomic mobility can help to mitigate the negative effects of inequality on human development.
... Furthermore, the fast changes in industrial success is a major reason for these environmental problems in China, Pakistan, and India, etc. (Javeed et al., 2020). We choose Pakistan for this investigation because this country is facing several issues such as political instability, poor law execution, social and environmental issues, and a higher level of corruption (Easterly, 2001). Although, the Pakistani market is not so big, however, it is associated with higher concentrated ownership and facing less awareness related to conservational practices (Khwaja and Mian, 2005). ...
... Pakistan is a country that has different capital and financial markets with diverse social and political portfolio, which makes the Pakistani market unique from other countries . Besides, Pakistan is considered as a corrupt country because of political instability and weak laws execution (Easterly, 2001;Javid and Iqbal, 2008). According to the transparency international corruption index, Pakistan holds 116th position out of 176 countries in the view of corruption (Index, 2016). ...
Article
At present, many economies are suffering from environmental problems that have significant effects on the climate and life of human beings, thus, the governments and institutions work to reduce the industrial negative effects on the environment. Based on the Porter Hypothesis, agency theory, and management and organization theory, this study examines the connection between environmental regulations, corporate social responsibility and firm innovation with the moderating role of CEO power and ownership concentration. Importantly, this study divided CEOs into male and female CEO. This study classifies firm innovation into two kinds, such as firm input innovation and firm output innovation. This study selects the sample of Pakistani manufacturing firms and uses the panel data for the period 2008 to 2018. For the analysis purpose, this study employs ordinary least squares (OLS), fixed-effect (FE) model, generalized method of moments (GMM). For more robust results, this study employs the feasible generalized least square (FGLS) model. Based on the findings from the empirical analysis, this study concludes that environmental regulations and corporate social responsibility have a positive relationship with firm innovation (Input and Output). Moreover, a powerful CEO and ownership concentration are valuable for firm innovation (Input and Output), because these factors are positively connected with firm innovation (Input and Output). Majorly, this study contends that environmental regulations and corporate social responsibility are positively connected with firm innovation (Input and Output) because of the interactive role of CEO power. This study supported the role of both male and female CEOs for firm innovative practices. Therefore, firms of developing economies should also consider the female CEO. Besides, environmental regulations and corporate social responsibility also positively connected with firm innovation (Input and Output) because of the interactive role of ownership concentration. Moreover, this study offers various policy implications for governments and policymakers.
... Even during its spikes of higher growth, for some indicators such as infant mortality and female literacy, Pakistan has performed worse than its low-income counterparts like Bangladesh (Easterly, 2001). Part of the problem can be attributed to inefficient implementation of social policy programs. ...
... The politicians at the time focused on providing services that would ensure patronage of the voters (Wilder, 1999). The rapid changes in regime meant that the politicians had less time to implement policies that would have long term benefits, so the governments used resources to provide targeted outcomes rather than high quality service which could improve lives of the people in the long term (Easterly, 2001). The strengthening of democracy can also be witnessed in the dramatic increase in voter turnout for elections from a mere 35% of the total registered voters casting the vote in 1997, to more than 44% in 2008 elections and 55% in 2013 elections (ECP, 2013). ...
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In theory, poverty reduction is associated with economic growth and equal access to opportunities for all citizens, regardless of their age, gender and income. Pakistan has reduced its poverty headcount by nearly 66% between 2002–2016, despite poor governance, weak institutions, mediocre economic growth, and poor social indicators. Using ADL/VAR and Granger causality tests, the paper empirically proves that change in political regimes, openness of media and foreign aid have contributed to alleviation of poverty in the country. The paper finds that the shift towards a stable democratic regime has facilitated the delivery of social services, regardless of the motive. Furthermore, it finds that free flow of information through the media has created an awareness among the masses about their rights; the access to information has led to a more equitable distribution of social services. Foreign aid has also contributed to alleviating poverty by focusing on targeted programs towards different groups with the help of various international organizations. These finding have important implications for interactions between the developed and underdeveloped economies as well as the economic and social benefits of democratic regimes.
... Despite Pakistan's notable economic growth in the post-independence era, this growth has not translated into social and human development (Abbasi, 2021;Easterly, 2003). This disparity is partly attributed to the country's reliance on Western development models, particularly modernisation theory, which posits a linear progression from traditional to modern societies based on industrialisation and economic growth (Abbasi, 2021). ...
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This article explores how media narratives in Pakistan, specifically through Dawn and the News International, engaged with and reshaped discourse surrounding the Digital Pakistan initiative, which the Pakistan Tehreek-e-Insaf government launched in 2019. Guided by Laclau and Mouffe’s discourse theory, the article identifies and explores two key themes in the media coverage: a shift in the Pakistani media’s perspectives from initial optimism about digital inclusivity to concerns over the digital divide, and the challenges related to governance, stakeholder tensions, and civil liberties. By moving beyond a technological focus, the analysis reveals how media disco­rse reflects and contests the sociopolitical realities of the Pakistani government’s initiative on digital transformation. The article highlights the need for a context-specific approach to digital policy that addresses deep-seated socioeconomic ineq­alities, stakeholder collaboration, and the safeg­arding of civil liberties. It thereby contributes to disco­rse on digital transformation by emphasising the role of the media in shaping national projects and broadening the scope of media st­dies in developing co­ntries.
... The country consistently places among the bottom in the Global Gender Gap Index, scoring particularly poorly in the education equality sub-index (WEF, 2023). It also remains the classic case of "growth without development" (Easterly 2001), lagging behind other countries in the South Asian region in terms of its Human Development despite seeing periods of significant growth (Majid 2022). Programmatic public goods provisioning remains severely lacking, with the government typically spending only 2% of its GDP toward education ("Government Expenditure on Education, Total (% of GDP)-Pakistan."; ...
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While school enrollment has seen gains globally over the last few decades, some 260 million still remain out-of-school. Digital solutions to overcome enrollment and learning gaps have become increasingly popular, but evidence around ed-tech solutions is limited. We experimentally evaluate learning outcomes from an online after-school learning platform. We find a 22% gain in assessment scores of students who availed the platform relative to those who did not have access to the platform. We also study the effects of income and gender. We find that the platform does not distinguish by income: poorer students do no worse than rich students, and that girls are at no disadvantage relative to boys. Our results then carry deep implications for leveraging at-home technology to reduce gender gaps in education in highly unequal and under-resourced contexts where girls’ mobility remains a primary constraint to enrollment.
... Therefore, the PIS is responsible for creating the situation of resource distribution disparity in the country. Since the disparities in the country do not seem to be improving despite maintaining an economic growth rate of 4.5 percent, this indicates, according to Easterly (2003), a weak political structure and system. As a weak institution cannot translate policy into implantation at the ground roots of the society, a fraction of society remains excluded and deprived of the resources distributed, and the presence of weak institutions and polity means that the extractive economic agents, as per Acemoglu and Robinson (2013), receive the disproportionate share and benefits, and therefore inequality increases. ...
Article
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In Pakistan, the majority of people have access to energy supplies. However, people who are underprivileged, below the extreme poverty line, or part of the middle class often spend disproportionate portions of their income on energy supplies and services, to some extent because of higher upfront prices for energy supplies, expensive products, and expensive imported appliances. The nonavailability of low-cost energy supplies is mainly affecting underdeveloped regions that have mostly low-income households. We used the dynamic ordinary least squares method to look at the impact of the energy crisis on income inequality from 1997 to 2021. The results show that the energy crisis exacerbates income inequality as low-income groups end up spending more significant shares of their income on energy products, supplies, and services than higher-income groups. Fair and equal access to energy supplies and services is less likely to reduce income inequality if prices are not cost-efficient. Cautious deliberation regarding the structure of energy tariffs is inevitable; at the same time, safety nets and social security programs for the poorest groups need to be expanded. At this stage, the aim is to target energy prices that will achieve the objectives of reducing polarity and increasing real income.
... The same spending corresponds to 1-2% in other developed and developing countries. Extra spending on the military in Pakistan almost equals the sum of underspending on health and education in GDP (Khan, F. 2007;Easterly 2003). ...
Article
Pakistan has suffered from pervasive corruption since its foundation. It deals with an unstable political atmosphere and unsustainable economic development due to its fragile institutional setting. The predominance of military power that does not hesitate to overrule any government when it faces a potential threat to its economic-profit channels plays an important role in institutional fragility. Moreover, incompetent civilian rules and the British heritage comprise a vicious cycle that is hard to break. An anemic institutional environment struggles within an embedded cultural structure exacerbated by corruption. This paper discusses corruption in Pakistan from historical, institutional, and economic standpoints. It provides a historical background of corruption. Then, it analyzes the negative economic reverberations of the corruption phenomenon. As an institutional case study, the paper concentrates on National Accountability Bureau (NAB), suggesting that institutional quality can be accomplished through bureaucratic accountability and determination, not through political victimization and abuse of institutions.
... Foreign Aid is utilized to further the agendas of political elites (Sarwar et al., 2015). Pakistan is a country where programs related to aid (especially foreign) and government assistance may improve economic growth but are degenerative when it comes to health, education, gender equality, political stability, and corruption indicators (Easterly, 2001). ...
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There is extensive literature available that dissects the linkage between foreign aid and the growth of the economy. The key focus of the current study is to explore how aid received from foreign countries are linked with growth rate of Pakistan’s economy. The present study considers time series data from 1985 to 2019 and corelates the nexus of foreign aid and Pakistan’s GDP growth rate in the long as well as short run. The study examined one dependent variable which is GDP, and seven independent variables including official development assistance as foreign aid, population growth, inflation, trade, domestic saving, unemployment, and foreign direct investment by using ARDL method. Broad canvas of the foreign aid and growth rate nexus is the main limitation of the paper and other factors impacting economic growth could not be taken into consideration due to the non- availability of complete data. The results of the study conclude that foreign aid hurts the economic growth of Pakistan throughout the thirty-four years not only in the short run but in long run as well.
... Their view is based on the Keynesian and neoclassical theory of growth, according to which external debt contributes to higher economic growth rates, whenever a productive use of borrowed funds takes place. This approach has been supported by Warner (1992); Cline (1995); and Easterly (2003). Opposing this view, the Ricardian equivalence hypothesis stated 'public debt had a neutral or irrelevant effect on economic growth' (Szabo, 2013, p. 251) From a financial point of view, when external debt is optimally utilised and the marginal return of investment is greater than the cost of borrowing, the debt burden is not a serious concern. ...
... As is now well-known, these poor social indicators are not due to poverty or lower rates of economic growth. As Easterly (2003) shows, Pakistan significantly underperforms when compared to other countries at similar levels of per capita income, and when compared to countries that on average grew at a similar rate. For example, Pakistan has 36 percent fewer births attended by trained personnel, an infant mortality rate that is 27 per thousand higher, and a gross primary enrolment rate that is 20 percent lower than countries with similar income levels. ...
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This paper examines the impact of the political party structure on the incentives for politicians to focus on patronage versus service delivery improvements in Pakistan. By analysing inter-provincial variations in the quality of service delivery in Pakistan, the paper argues that the more fragmented, factionalised, and polarised the party systems, the greater are the incentives for patronage, weakening service delivery improvements. Fragmentation and factionalism both exacerbate the information problems that voters have in assigning credit (blame) for service delivery improvements (deterioration), thereby creating the incentives for politicians to focus on targeted benefits. Polarisation, particularly ethnic polarisation, reduces the ability of groups to agree on the provision of public goods, again causing politicians to favour the delivery of targeted benefits.
... competitive capabilities (Azzam and Shafique, 2017). While the Green Revolution and improved irrigation systems have bolstered its agricultural output (Easterly, 2001), the nation contends with challenges stemming from deficient modern irrigation infrastructure, a scarcity of skilled human capital, inadequate physical facilities, and insufficiency in agricultural inputs (Azzam and Shafique, 2017). Notably, Pakistan demonstrates a degree of self-sufficiency in domestic food production; however, the country remains vulnerable to the vagaries of natural disasters (Husain, 2000). ...
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The diplomatic relations between Azerbaijan and Pakistan have undergone significant development since the late 1990s. Despite some studies focusing on diplomatic and political relations, the economic dimension of this partnership has not been systematically covered. In this paper, a robust least squares (RLS) approach is used to model bilateral trade between the two countries and identify statistically significant determinants, including economic, institutional, and cultural factors, after analyzing the main economic and subsectoral trade dynamics of both countries. The results reveal that Azerbaijan's imports from Pakistan are significantly associated with the country's higher income and market size, while Pakistan's elevated exchange rate and trade costs hinder bilateral trade. In addition, Pakistan's rising manufacturing output increases exports to Azerbaijan but decreases imports from Azerbaijan. Among institutional determinants, government effectiveness, the trade freedom index (TFI), and political stability play significant roles in bilateral trade. Lastly, it was found that cultural proximity increases Pakistani exports to Azerbaijan but not imports from Azerbaijan. The analysis also indicates that domestic savings stimulate Pakistani exports. These findings underscore the complex nature of bilateral trade between Azerbaijan and Pakistan and highlight the need for institutional arrangements to harmonize trade flows and boost welfare gains from trade. The results may be of great importance to intergovernmental working groups, domestic policymakers, and businesses.
... The protection of women's rights is also aided by legislation such as the Prevention of Anti Women Practices, 2011. Still, there were many difficulties for women in Pakistan, especially in rural areas where traditional values may be more strict (Easterly, 2001). Interpersonal abuse and other acts of female violence, such as honour killings, continue to be major issues. ...
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The present study aims to examine the evil of violence against women within different cultures of the world. The research focuses on conducting a comparative analysis to shed light on the patterns of violence experienced by women in Islamic and non-Islamic contexts. The study explores various forms of violence, including physical, sexual, psychological, and economic abuse, with respect to, domestic violence, sexual assault, honour-based violence, familial abuse, discriminatory practices and cultural injustices. By examining the experiences of women across different cultural, social, and economic backgrounds, this study seeks to identify effective measures to address and prevent violence against women. Through a comprehensive analysis of existing literature, this study contributes to the broader understanding of violence against women and provides valuable insights, strategies and policies for policymakers, practitioners, and advocates working towards gender equality and the eradication of violence against women. The study has followed the doctrinal method of research.
... The same spending corresponds to 1-2% in other developed and developing countries. Extra spending on the military in Pakistan almost equals the sum of underspending on health and education in GDP (Khan, F. 2007;Easterly 2003). ...
... Economic development model of the second component is absorbed Through the input of capital, can obtain higher levels of investment  91 of resources Pakistan's development goal is based on its ability to attract foreign loans, although small private foreign investment, but in at least 1965 years ago, Pakistan can rely on the stability of the foreign capital flows by public institutions Total's foreign spending, for example, accounts for 35% and 50% of its first and second fiveyear plans respectively (Easterly, 2001). ...
Article
Poverty eradication is a critical issue that must be tackled as part of the world's economic and social progress. China and Pakistan have distinct ways of combating poverty. Since the start of reforms and opening up in 1978, China has taken a number of initiatives to alleviate poverty. The Communist Party China (CPC) Central Committee's decision on several major issues concerning rural reforms and development, adopted at the Third Plenary Session of the CPC's seventeenth Central Committee, proposed increasing support for the development of poor areas in old revolutionary base areas, ethnic minority areas, and border areas. The CPC's 18th National Congress set the lofty objective of completing the construction of a moderately affluent society in all aspects by 2020. The report emphasized the parties tenaciously fought for aims to lift people out of poverty. This paper attempts to explore and understand the causes of Pakistan's poverty reduction strategies and the elements that impact it, utilizing the experience of China's poverty reduction to identify the difficulties that have arisen as a result of Pakistan's poverty reduction process. This research shows that the poverty policies of China are more mature, which led the country towards progress and today it is one of the leading economies in the world. Similarly, Pakistan after its independence is struggle to tackle the issue of poverty and still could not get rid of it and this is all because of the policies of Pakistan which could proof to be successful.
... However, on the other end there is example of Pakistan where political instability and higher corruption existed parallel to each other(Easterly 2001) and of Brazil for the same type of phenomenon in the last decade of previous century. ...
... Moreover, Ahmadis and scheduled castes are 0.25% each, and 0.07% are described as 'others'. Pakistan is facing the problem of social exclusion and marginalization of religious minorities owing to its multi-ethnic, multi-cultural, and multi-religious society (Ballard 2012;Carraro, Weinzierl, and Hunt 2004;Easterly 2012). Minorities are reported to face exclusion of various types like economic, social, or political (Gregory 2012;Rehman 2019). ...
Article
This paper aimed at analyzing the social inclusion of the Sikh community living in Pakistan with emphasis on social, economic dimensions. The mixed-method research approach was employed and data was collected from 94 respondents through questionnaires, focus group discussions, and in-depth interviews, and analyzed using descriptive statistics and thematic analysis. The results revealed that both communities extend moral and financial support at times of need and participate in each other's communal events. The Sikh community showed dissatisfaction with their economic conditions and considered education and employment as the most important factors for enhancing the inclusion of Sikhs in society.
... The nation's economy mainly focuses on manufacturing and agriculture. It is identified to be self-sufficient in most food production (Easterly, 2001;Husain, 2005). In the course of 1988, till 2002 Pakistan's economy fell after it witnessed a state of booming during the 80s. ...
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Lebanon has been passing through considerable difficulties as a result of compounded economic and financial degradation. Therefore, a comprehensive adjustment program is necessary. The aim of this research is to describe different reform plans applied by countries that have undergone economic and financial crises. More particularly, it discusses nations that implemented the International Monetary Fund reform programs; the purpose, plan, requirements and policies of the program are also identified. Furthermore, this paper highlights the reasons behind the success or failure of a nation in implementing a development program to anticipate whether an agreement with the IMF will be the solution for the Lebanese case.
... Our motivation for picking Pakistan stems from its previous characterization as a country that has witnessed "growth without development" (Easterly 2001) and lacked inclusive growth (Amjad and Burki 2015). More specifically, the country has seen periods of high gross domestic product (GDP) growth alongside continued stark gender inequalities. ...
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This article seeks to clarify the effect of growth on gender equality for the case of Pakistan, a country that has seen periods of high growth alongside the persistence of stark gender inequalities. The paper addresses this aim by estimating gendered sectoral employment elasticities of growth for the period 1984–2017 and investigates their drivers. It finds that the secular trend toward productivity-driven growth since the turn of the millennium has lowered the responsiveness of men’s employment to growth impulses in particular. For women, factors related to Pakistan’s gender order are more relevant. Greater gender parity in education enables women to benefit from growth in the form of better employment access. The reverse is the case for improvements in relative women’s life expectancy, understood as indicative of their social status. The paper interprets the related effect as a reduction in the precarity of women’s employment associated with improved status. HIGHLIGHTS • Employment dividends of growth are realized in a highly gender-differentiated way. • Pakistan’s gender order mediates women’s volatile employment responses to growth. • We use excess women’s mortality as an indicator for Pakistan’s gender order. • Women workers bear the brunt of recessions through the loss and precarity of jobs. • Education is especially relevant in reducing women’s employment precarity.
... Chuan (2008) using Simultaneous Equation Models, finds that industrial development increases farmers' incomes while reducing the income gap between urban and rural areas. Ocampo et al. (2009), Easterly (2003 in their studies of developed and developing countries, reported that industrialization has been accompanied by a lack of reduction in inequality and poverty, a lack of infrastructure and income-generating activities, and an expansion of the informal sector. ...
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Africa has also experienced a decline in the level of industrialization for at least three decades. Examining the dynamics of industrialization, and its effect on inequality, therefore remains a strikingly topical issue. This paper assesses the effects of industrial transformation on inequality in Africa over the period 1980-2016. Using a sample of 48 African countries, we estimate a dynamic panel data model using the Generalized Method of Moments in System (GMM-S). Our results show that strong industrialization would reduce inequality in Africa. The robustness of the results is tested using a PSTR (Panel Smooth Transition Regression) model and a PTR (Panel Transition Regression) model. The study recommends that economic, social and environmental disparities be taken into account in the process of industrial transformation on the continent.
... Although agriculture grew at an average of almost five per cent between 1990 and 1996, a yearly breakdown reveals that this period saw both the all-time high and low of 11.7 and −5.3 per cent annual sectoral growth. Further, the comparatively lower average growth rate of agriculture relative to the other two major sectors for the 27-year period examined in this paper may in part be attributed to the poor harvest of 1993, and the extreme drought between 1998 and 2002, which reached its peak in 2000-2001(Majid and Zahir 2013. Other issues facing the agriculture sector resulting in low productivity relate to issues of land fragmentation and the resulting inapplicability of modern technologies, water-logging and salinity which not only reduce productivity on cultivated land, but also lead to loss of land available for cultivation, low total factor productivity, inadequate agricultural extension services and agricultural inputs, among others (A. ...
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The SDGs’ commitment to inclusive growth reflects an increasing international concern with the inclusiveness of macro-economic development. Yet, although research underscores that economic growth is not gender-neutral, gender dimensions remain a footnote to these debates. This article explores the connection between growth performance and gender inequalities in the case of Pakistan. The country’s macro-economic performance has been characterised as a case of ‘growth without development’. More specifically, severe gender inequalities and women’s marginalisation in international comparison have persisted even in phases of high GDP growth. This paradoxical situation offers a fertile context for the analysis of how empowering macro-economic growth has been and can be for women. We investigate how empowering growth has been for women in Pakistan by exploring aggregate data on sectoral growth and gendered employment. Our analysis does not suggest the straightforward win–win for growth and women’s empowerment espoused in Pakistan’s national policy vision. Rather, we find that women’s employment is precarious—women are largely viewed as secondary earners engaging in distress sale of labour.
... Pakistan is a developing country with various issues such as political instability, corruption, and weak law promulgation [30,31]. Moreover, Ibrahim [32] contended that corporate governance practices in Pakistan are very poor; therefore, the Securities and Exchange Commission of Pakistan (SECP) should focus on this issue and strengthen the corporate governance mechanism. ...
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Firms in developing economies generally find ways to enhance their reputation and growth in the international market. In this context, an Audit Committee (AC) is composed of multiple skilled members that control and monitor auditing activities and present a transparent image of their firm, which automatically attracts investors and builds investor confidence. Therefore, this study used CEO power and ownership concentration as moderating factors to examine the connection between AC and firm performance. For this purpose, this study used the data of Pakistani manufacturing firms for the period 2008 to 2018 and applied the Ordinary Least Square (OLS) method, the Fixed Effect (FE) model, and the Generalized Method of Moments (GMM). To check the robustness of the results, this study used a Feasible Generalized Least Square (FGLS) model. The findings of this study contended that AC and firm performance have a positive association with each other. Moreover, the findings revealed that CEO power positively influenced firm performance. Furthermore, lower ownership concentration is a valuable approach to maximize a firm's performance. Importantly, the outcomes concluded that AC and firm performance have a positive connection with the moderating effects of CEO power. Moreover, AC and firm performance also have a positive association with the moderating effect of ownership concentration.
... However, this does not necessarily seem to be true because improvements in human well-being are not solely determined by GDP or GDP per capita (Easterly, 2001b). Such improvements in human well-being and welfare are strongly influenced by public policy choices (Ranis et al., 2000). ...
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Purpose of the study: GDP Growth does not necessarily bring improvements in the lives of people belonging to lower social strata. The objective of this study is to analyse the welfare implications of economic growth in Pakistan. We aim to investigate that to what extent economic growth has been successful to bring improvements in the welfare of the poor segments of the society. Methodology: By using the data of different waves of Household Integrated Economic Survey (HIES), Pakistan Integrated Household Survey (PIHS), Pakistan Social and Living Standards Measurement (PSLM) Survey over the period of 1990-2017, we have done an analysis of income shares received by different income groups. We have also constructed Ahluwalia-Chenery Equal Weighted and Poverty Weighted Welfare Indices (Ahluwalia and Chenery, 1974). In order to analyse the welfare implications of economic growth in the country, these indices have been compared with another index termed as Income Weighted Index (IWI). Main Findings: Empirical results indicate that substantial income gaps exist among different income groups. In the absence of an effective fiscal policy, these gaps do not seem to be narrower.
... Higher inequality implies a greater share of population will be liquidity constrained and thus the society accumulates less human capital. Easterly (2001) argues that equality in a society would lead towards better human capital formation. In his interesting work on the history of social mobility, Clark (2014) establishes a strong relationship of socioeconomic status of individuals with the status of their parents and grandparents. ...
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This study measures temporal and spatial variations in income inequality and education inequality across the districts of Punjab (Pakistan). It further investigates the relationship between income inequality and education inequality. Data of two different surveys of MICS (Multiple Indicator Cluster Survey) i.e. MICS 2007-08 and MICS 2014 has been utilized for our analysis. Gini coefficients of households' income and school attainments have been used for the measurement of income inequality and education inequality. The results of our analysis reveal that income inequality has risen in twenty three districts whereas it has decreased in twelve districts over the period of study. Educational inequality has decreasing trend during the period under consideration in all district except Dera Ghazi Khan where it has increased slightly. The results of our regression analysis show that school attainment as measured by mean years of schooling is negatively whereas income inequality is positively associated with education inequality.
... Since independence to the end of the twentieth century, no doubt the economy of Pakistan achieved excellent growth performance, but unfortunately ranked poorly (144th on the HDI out of 178 countries) (UNDP 2010). The uneven distribution of income and failure of trickle down theory has given rise to the magnitude of poverty (Easterly 2003). According to Shorrocks and Hoeven (2004) economic growth has failed to reduce poverty and inequality if its benefits are concentrated in upper-income groups. ...
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Tremendous increase in occupational multidimensional inequality has become an emerging challenge across the developing globe. Present research examines the inequality in uni-dimensional and multidimensional spectrum across different occupations at provincial level in Pakistan through HIES/PSLM survey data for the years 1998–1999 and 2013–2014. The estimation of uni-dimensional inequality based upon positive and normative measures (Gini-coefficient; and Atkinson measure and Generalized Entropy Index). Analysis of multidimensional inequality employs the methodology of Araar (The hybrid multidimensional index of inequality. CIRPEE. Working Paper 09-45, 2009), while using three core dimensions i.e. health, education and housing services. Results indicate the reduction in inequality among all occupations in uni-dimensional context over the time, with the exception of self-employed group, which have experienced higher consumption inequality. The figures of multidimensional inequality identify that daily wage labor has experienced higher inequality in multidimensional context, because of having smaller income that restrict them to enjoy the basic facilities of life as compare to higher income groups associated with other professions. At the provincial level, Punjab has lower multidimensional inequality across all professions, which was mainly attributed to the fact that wider population of such provinces belong to urban areas and having good access to basic facilities and other necessities of life. Contrarely, Baluchistan has higher multidimensional inequality, mainly due to over spread rural sector along with poor access to basic facilities like as health, education & housing services.
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The study examines how fiscal decentralization affects the education index at the district level in Pakistan's Punjab province, which has five components. Disparities in the distribution of public services have existed throughout Pakistan's history, and current research on regional development emphasizes the importance of evaluating human development phenomena using spatial models like density, locality, and distance. According to the study's findings, the distance between districts and the capital city determines the significant positive effects of fiscal decentralization on the district-level education index; the more "distance from the city" that districts are from the city, the greater the positive effects of fiscal decentralization. Since geography affects the delivery of public services, differences between districts should be addressed by enhancing social and economic institutions and infrastructure in the nation's underdeveloped areas.
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This study centered on effect of Company Income Tax (CIT) on economic development of Nigerian economy. The main objective of this study was to assess the effect of company income tax on economic development of Nigerian economy. Ex-facto research design was used in the study as the researcher relied heavily on secondary data that covered 20 years period (1999-2018). The formulated null hypotheses were analyzed using simple linear regression. Result from the study showed that Company Income Tax (CIT) has insignificant effect on economic development of Nigerian economy (R 2 = 0.144257, which translate to 14.4257 percent). It was concluded that Company Income Tax (CIT) has insignificant effect on economic development of Nigeria within the period under review. It was recommended that Company Income Tax (CIT) in the state should be properly structured in such a way that it will encourage both indigenous and foreign firms in the state to engage in business operations.
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Integrating labor law into Islamic and civil law is a process to harmonize principles and implementation in contemporary society. Does this study aim to answer (1) How can labor law principles in Islamic law be integrated with civil law for citizenship to create harmonization in its implementation? Moreover, (2) What challenges and obstacles are faced in integrating Labor Law into Islamic Law and Citizenship Civil Law in contemporary society? This study's research type is the normative juridical method, whose other name is doctrinal legal research, also known as library research or document study. The research results show that to integrate the principles of labor law in Islamic law with civil law on citizenship, several strategic steps need to be taken—first, open dialogue and discussion between Islamic law experts and civil law on citizenship. Second, they draft laws and regulations that accommodate the principles and norms of both legal systems. Third, involving inclusive and interdisciplinary legal education and fourth, educating the public about the benefits and objectives of integrating labor law into Islamic and civil law on citizenship. Fifth, increase cooperation between countries and international organizations.
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Women’s empowerment is indispensable for attaining inclusive and sustainable development. The facts reveal a pitiful situation in terms of female empowerment in Pakistan. This research not only analyses the socio-economic, legal, demographic, and political determinants for empowering marginalized women in Central Punjab but also builds a cumulative women's empowerment index using the appropriate statistical methodology. The data is collected through well –a structured questionnaire by multi-stage stratified cluster sampling technique from 257 respondents. Polychoric principle component analysis creates a complete cumulative women empowerment index with six dimensions. These dimensions are household decision-making, social mobility, familial/interpersonal empowerment, access to formal financial institutions and saving mechanisms, political empowerment, and psychological empowerment. Age and work status of women, access to financial institutions for personal and family financial matters, access to better medical facilities, participation in social gatherings, knowledge of written contents of nikah-nama, knowledge about women protection bill, vote caste significantly positively, while unpaid domestic care work, fear of violence, area of residence, and joint family structure significantly negatively influence women empowerment in Central Punjab. The findings of the study and policy suggestions are exceptionally useful in increasing women empowerment in Central Punjab.
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Women's empowerment is indispensable for attaining inclusive and sustainable development. The facts reveal a pitiful situation in terms of female empowerment in Pakistan. This research not only analyses the socioeconomic , legal, demographic, and political determinants for empowering marginalized women in Central Punjab but also builds a cumulative women's empowerment index using the appropriate statistical methodology. The data is collected through well-a structured questionnaire by multi-stage stratified cluster sampling technique from 257 respondents. Polychoric principle component analysis creates a complete cumulative women empowerment index with six dimensions. These dimensions are household decision-making, social mobility, familial/interpersonal empowerment, access to formal financial institutions and saving mechanisms, political empowerment, and psychological empowerment. Age and work status of women, access to financial institutions for personal and family financial matters, access to better medical facilities, participation in social gatherings, knowledge of written contents of nikah-nama, knowledge about women protection bill, vote caste significantly positively, while unpaid domestic care work, fear of violence, area of residence, and joint family structure significantly negatively influence women empowerment in Central Punjab. The findings of the study and policy suggestions are exceptionally useful in increasing women empowerment in Central Punjab.
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The purpose of this study is to investigate the inequality development across the districts in Kalimantan and examine whether Kuznets hypothesis is prevail in Kalimantan. Williamson Index dan Entropy Theil Index are employed in order to analysis the inequality of 55 districts in Kalimantan during 2000-2012. The result of study shows that: (1) Kuznets hypothesis is prevail in Kalimantan; (2) regional inequality in Kalimantan shows an increasing trend for the period of observation. East Kalimantan province gives the largest contribution towards the inequality in Kalimantan.
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Abstract The spatial disparities in human development level have been a vital concern in Pakistan's history. In this perspective, the literature on regional development has recently underlined how crucial it is to analyze human development phenomena through the lens of spatial models, for instance, density, locality and distance. The study investigates the impact of fiscal decentralization on the human development level at the district level in province of Punjab, Pakistan. The analysis is based on an augmented development Index, which consists of 3 sub-indices of education, health, and household welfare level; with each index further consists of 5 indicators. The Principal Component Analysis (PCA) aggregates these indicators to get sub-indices and a final development index. The results of the study showed that significant positive impacts of fiscal decentralization on the human development index at the district level are conditional on the distance of districts from the capital city— the valuable impacts of fiscal decentralization increase as the “distance from the city” decreases. Since the geography of development matters, it is recommended to reduce across districts inequalities by developing the social and economic institutions and infrastructure in the underdeveloped districts of the country. Keywords: Fiscal decentralization, HDI, geography, spatial disparity JEL Classification Codes: E2
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This report describes the status of reproductive health among women in Pakistan, assesses the adequacy of existing health services, and provides recommendations for directing assistance toward the improvement of women's reproductive health. It is based on an extensive review of documents and journal articles and insights from colleagues who have worked in Pakistan's health sector, in addition to lessons drawn from studies of women's health in other countries. Data are drawn primarily from the Pakistan Demographic and Health Survey (Pakistan, National Institute of Population Studies, Federal Bureau of Statistics, and IRD Macro, Inc. 1992; after here cited as PDHS), conducted in 1990-91; Pakistan Contraceptive Surveys (Pakistan, Ministry of Population Welfare and Population Council 1995a; cited as PCPS), 1984-85 and 1994-95; Pakistan Integrated Household Survey (Pakistan, Federal Bureau of Statistics 1996; cited as PIHS), 1995-96; and the National Health Survey of Pakistan (Pakistan Medical Research Council 1996; cited as NHSP), 1990-94; and the Pakistan Fertility and Family Planning Survey (Pakistan, National Institute of Population Studies and London School of Hygiene and Tropical Medicine; cited as PFFPS), conducted in 1996-97.
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This paper analyses the dynamics of inequality, democratization and economic development in a political economy model of growth where education is both the engine of growth and a determinant of political participation. In a context with imperfect capital markets, we investigate the incentives for an educated oligarchy to subsidize the poor's education and to initiate a democratic transition. We characterize the equilibrium patterns of political institutions, income distribution and growth as a function of the initial income and inequalities. In particular, we identify circumstances under which the Elite promotes the endogenous emergence of a middle class for purely political economy reasons. A simple linear infinite horizon framework is then presented. In this setting, we discuss the importance of historical dependence for long-run social stratification and redistribution.
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The authors trace the origins of the key features of U.S. higher education today--the coexistence of small liberal arts colleges and large research universities; the substantial share of enrollment in the public sector; and varying levels of support provided by the states. These features began to materialize soon after 1890 when the 'knowledge industry' was subjected to 'technological shocks' that increased the value of research to industry and government and led to the proliferation of academic disciplines. The consequence was an increase in the scale and scope of institutions of higher education and a relative expansion of public-sector institutions.