The Role of Governments as Relationship Mediation Between Social Capital and ...
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1. Relationship between Social and
Economic Development in Pakistan: A
District Wise Analysis
Waseemsaleem
SESSION 2010-2014
DEPARTMENT OF ECONOMICS
SCHOOL OF SOCIAL SCIENCES
BEACONHOUSE NATIONAL UNIVERSITY,
LAHORE.
2. RESEARCH THESIS
Relationship between Social and
economic development in Pakistan: A
District Wise Analysis
Submitted to the Department of Economics, School of Social Sciences
Beaconhouse National University, Lahore
in partial fulfillment of the requirements
for the award of the degree of
BS
in
Economics
Supervised By: Dr. Hafiz Ahmed Pasha
Department of Economics
School of Social Sciences
Beacon house National University,
Lahore.
3. Abstract
Social and economic development is the main purpose of the any economy. Pakistan is a
developing country where social and economic development is needed. Many studies had done
this work but in this study, we took the data on the basis of districts. We took the top districts of
Pakistan. Data is collected on the basis of HIES data. Data is quality assured. Descriptive
analysis and correlation analysis technique has been used in this study. Economic ranks, literacy
ranks, adult literacy rate and enrolment rate are the main independent variables and indicators
chosen for the analysis of social and economic development.
6. Introduction
What does socio-economic development mean? In order to understand this concept, let us begin
by defining development. Generally, development is defined as a state in which things are
improving. But it can also be defined in various contexts likesocial, political, biological, science
and technology, language and literature. In the socio-economic context, development stands for
advancement in standard of living through improved education, incomes, developmental skills
and employment. It is the process of economic and social transformation based on cultural and
environmental factors.
Economic development in a perfect world alludes to the maintained, thorough activities of
groups and policymakers that enhance the expectation for everyday comforts and economic
strength of a particular region. The meaning of economic development given by Professor
Michael Todaro is an increment in living conditions, change of the nationals respect toward
oneself needs, free and a nonpartisan culture. He suggested that the most exact system for
measuring economic development is the HDI (Human Development Index).HDI is a realistic
tool used to measure the state's economic development in social and economic extents. HDI
moreover considers the perusing capability rates & future which subsequently has an entire
impact on benefit and could incite economic development. Then again, economic development
can similarly be measured by considering the GDI (Sexual introduction Related Record).
Economic development can likewise be talked about as the quantitative and qualitative changes
in a current economy. economic development includes development of human capital, expanding
the education proportion, change in framework, development in wellbeing and security and
others regions that focuses on the upgrade of the far reaching welfare of the subjects. The terms
economic development and economic growth are utilized conversely yet there is a huge contrast
between the two. Economic development can be seen as a sub classification of economic
development. Economic development is an administration approach to build the economic, social
welfare and guaranteeing a stable the earth. Then again, economic development is the general
development in the nation's preparations and administrations.
Social development implies improvement of living standard of every last individual so that
government could accomplish the greatest capability of general society in administrations. The
achievement of society is interfaced to the success of each and every subject. Social development
7. means placing assets into people. It requires the withdrawal of the deterrents with the goal that
all subjects can head out to their fantasies with certainty and predominance. It is about declining
to recognize that people who live in destitution will reliably be poor. It is about helping people so
they can progress on their approach to autonomy. Learning must start right on time in life. By
placing assets into in front of calendar learning exercises, we can promise a more conspicuous
level of accomplishment amongst our inhabitants. Confirming that kid's get a fair starts in their
direction goes far to growing their thriving further not far off. A sensible, astonishing child mind
schema is furthermore needed for society to succeed. Right when people understand that their
adolescents are consistently overall assigned with, they may be more profitable in their
occupations. Exactly when administrations have extraordinary delegates their business is more
inclined to succeed. Right when associations succeed, the economic condition of a gathering
additionally adult. A guess today in incredible child examination activities can give many
individuals whole deal fiscal benefits for society.
In addition, a safe sensible spot to live is especially fundamental in helping people achieve
autonomy. It is the middle of family life; where families can live safely, help their children,
manufacture bunch associations and take care of developing social orders. Without a routine spot
to live, it is tricky to limit as a gainful piece of society. Diverse investments in people that help
the economic blast of the general public join youth undertakings and administrations, post-
discretionary teachings, work creation, progression of sound, dynamic living and protected and
secure gatherings. To decrease impoverishment we need to take a social advancement approach
and place assets into our family. By placing assets into people we can decrease destitution. We
need to go past taking a sight at government to find methodologies to make our most critical
holdings, our kinfolk. We need to confer commitment to gathering affiliations, associations,
universities and locale in the obligation of improving the success of all New Pakistani and
balancing and diminishing poverty.
The Economic development record is blended one for Pakistan for the duration of its life i.e.
presently more than a half century. Far from poor introductory enrichments and inauspicious
figure of disintegrating on economic front after its autonomy the development rate is reasonable
enough to counter the figures. The development rate till the date midpoints to five percent more
or less, all through the history in spite of different kinds of vacillations the nation has seen on
8. economic, political, geological fronts and so on. In 2004-05, it crushed each country in the
district with the exception of China with an inexact development rate of 8.6 %. (Zaidi, 2006)
Pakistan is as of now confronting economic and social issues. Economic success serves as a
spine for the general advancement of a country. One thing is normal in all created countries that
they are monetarily sound. Individuals get more think full and valuable when their consideration
redirects from day by day winning issues and stress of business for their supportability. They
concentrate on instruction, improvise human services and create innovations that make life much
simpler. Poor economic condition is the main driver of such a variety of issues that exist in a
general public.
Result is that all our critical commercial ventures that once served as an essential donor to the
national GDP have been shut down. Sugar, bond and shoe industry is on its ruin while material
industry is breathing its last. Outside speculators are not prepared to setup their organizations in
Pakistan. They have their own particular set of issues which incorporate frightful and extensive
strategy of getting licenses and work allows in Pakistan, force emergencies, terrorism and
declining fares. Multinational Companies are hesitant to open their work places and
establishments in Pakistan. (Zaidi, 2006)
Stock Exchanges additionally portray a genuine picture of economic meltdown. Instable political
framework, tyranny in its more regrettable structure and non-compelling majority rule
government seriously influence the rates of stocks recorded on the three stock trades of Pakistan.
Amid in the not so distant future, ordinarily Karachi Stock Exchange has plunged to its most
minimal point ever. Nearby and in addition remote speculators are reluctant of putting vast totals
of cash in stock trade in dread of acquiring startling misfortune. All through 2008, stock trade
showed denied execution. Circumstance was precarious to the point that administration needed
to stop the business amid last quarter of 2008; state recuperation of stocks is likewise disturbing.
Prior when stock exchange used to plunge, it would recoup in few days or weeks however now
impart costs take significant time to create benefits.
Pakistan has been defying a huge amount of social issues following its beginning in 1947.
Initially there were the issues of unlucky deficiency of stores, rebuilding of untouchables, poor
schema and extensive destitution of masses. Quaid-e-Azam endeavored his best to deal with
9. these issues and get the state mechanical assembly living up to expectations yet due to his sudden
passing, he couldn't execute these issues completely. Subsequent governments didn't give
cautious thought towards aftereffect of distinctive social issues and in this way they created with
the movement of time and became social debacles.
At present the severest issue that Pakistan is going up against is its precarious legitimateness
condition. Terrorism has transformed into a headache for alliance and an awful dream for open.
Government has been powerless in pulverizing terrorism despite protesting up security in
metropolitan urban groups. Open searches for answer to the question that what is their lack for
which they are constantly rebuked by the terrorists? People have been able to be numerical
figures, blasted in numbers here and there. There is terrorism all over, even bazars, mosques,
educational establishments, business districts, lodgings nothing is secured any more.
Lack of awareness is yet an alternate issue of Pakistan. The perusing capability rate attends to
56% and unexpectedly it moreover joins those people who can read and make their name in
Urdu. As the decades progressed, regardless of decreasing, obliviousness rate in Pakistan has
showed an upward example. Activation level of substitutes at vital level has exhibited a
lessening example. The way that 50 percent of children don't complete their fundamental
direction asserts this. Uneducated adults help insignificantly to the national exchequer. Despite
utilizing millions on it, government has fail to fulfill composing capability rates commensurate to
distinctive countries in South Asia. Private portion is doing good occupation for the headway of
informative society in Pakistan, yet its essential end of the line is money making. Schools and
colleges are opened as a business prospect and in this way expansive shares of them need
quality.
Obliteration or Violation is an alternate enormous social issue. According to latest report of
Transparency International, Pakistan has been situated at 42nd number among the most
deteriorate nations of the world. From authoritative staff to higher work spots and functionaries,
all are incorporated in degradation of one kind or the other. Mortification in government work
places is so much significant built that a run of the mill thought wins that the schema doesn't let
authentic people to work delicately. There is an unlucky deficiency of obligation due to which
fortunate people and those in power are sure that they can't be considered accountable for their
10. deeds. So they keep looting the national fortunes and find methodologies to approval their dark
cash. Various improper people don't fundamentally attempt to do that.
Unemployment is moreover seen as a huge social issue. Huge offer of Pakistan's masses includes
youth and a broad number of young people who have the ability and are prepared to work are
unemployed. Quickly rate of unemployment as indicated by power possessions is 7.4% however
as shown by some private measures the rate of unemployment is 12%.
Problem Statement
In this study, the data set is been taken in the form of districts rather than provinces. This study is
checking the social and economic development in the different districts of Pakistan.
12. Literature Review
The statement "Development" is a method in which something passes by degrees to diverse
stages solely more dynamic and created stage. The development is the demonstration of seeking
after economic development and social progression in ways that can be upheld for the long haul
by keeping up assets and ensuring nature's turf. The development is ideal and dependable
advancement in all segments, for example, economic, political, social, money related, instructive
and mechanical. It is specifically identified with expansion in the GDP and better expectation for
everyday life. The development of a nation is measured with factual lists, for example, for every
capita wage (for every individual) (GDP), future, the rate of education, and so on. The UN has
created the HDI (Human Development Index), a compound marker of the above detail, to gage
the level of human development for nations where information is accessible.
Social development is about upgrading the thriving of every individual in the general population
enclosure so they can fulfill their greatest limit. The accomplishment of society is interfaced to
the thriving of each and every inhabitant. Social development means placing assets into people.
It requires the evacuation of obstructions so that all occupants can accomplish their fantasies
with certainty and regard. It is important to assist the people with the goal that they can drive
ahead towards their approach to freedom.
Economic development is the kept up, intentional exercises of methodology makers and
gatherings that push the desire for ordinary solaces and economic wellbeing of a specific extent.
Economic development can also be insinuated as the quantitative and qualitative changes in the
economy. Such exercises can incorporate different reaches including development of human
capital, essential base, regional forcefulness, environmental supportability, social consolidation,
wellbeing, security, perusing capability, and diverse exercises. Economic development contrasts
from economic development. While economic development is a procedure intervention endeavor
with purposes of economic and social success of people, economic development is a wonder of
business part profit and move in GDP. Hence, as economist AmartyaSen points out: "economic
development is one piece of the methodology of economic development".
Ghauset al. (1996)focused on the social development positioning of areas of Pakistan. The paper
has used eleven markers relating to the preparation, wellbeing and water supply portions to rank
13. area of Pakistan the extent that the level of social headway. It is like manner examines to clear up
nearby mixture in the change of social base over cross sectional zones. The paper displays the
criticalness of preparing pointers in choosing the general level of social progression, especially in
regards to female training and enrolment rates. Similarly, the situating demonstrates an adjacent
association between levels of social and economic change spatially with Pakistan. Other
principal determinants of regional mixed bags in the level of social headway fuse the level of
urbanization, the administrative change of the district (territory of normal headquarters), and the
topographical/money related vitality (demonstrated by the region of the sea port). All things
considered, Punjab appears to have the biggest measure of social progression imitated by NWFP,
Sindh and Balochistan. Regardless, the results show huge mixed bag among districts inside a
territory in the level of social headway. Smallest made ranges inside every district are perceived
as centers for remarkable headway assignments inside SAP.
Ranis et al. (2000)talked about the effects of economic development and human development.
The associations between economic development (EG) and human development (HD) structure
two chains. Cross-country relapses demonstrate a noteworthy relationship in both bearings, with
open consumptions on wellbeing and training, eminently female, particularly essential in the
anchor from EG to HD; and the speculation rate and pay appropriation huge in the HD to EG
chain. This offers ascent to ethical or awful cycles, with great or terrible execution on HD and
EG reinforcing one another. Prove about whether have solid sequencing ramifications: nations at
first supporting economic development slip into the awful class, while those with great HD and
poor EG now and again move into the upright classification. Where decision is important human
development ought to be given sequencing need.
PalolVanin (2002) has discovered the relationship between economic development and social
development and created an evolutionary model of development in which operators pick how to
allot their time in the middle of private and social exercises. Partaking to the recent ones obliges
time and swearing off some private utilization; their utility depends both on own and on total
interest, and additionally on the open doors accessible in the nature's turf. Operators may
safeguard themselves from a poor social environment by moving to private exercises, less
presented to outer effects. In the event that this technique spreads over, private exercises will be
cultivated, however at the cost of social exercises. Since both effects aggregate about whether,
14. the result may be a joint event of economic development and social neediness. A conceivable
option result is that of a lot of time used in social exercises, which achieves a rich nature (i.e.
development in the social open doors accessible to the people), yet may go about as an
obstruction to private development. At the point when both these results are conceivable, the
present schema demonstrates that the recent is Pareto-better than the previous one (a conceivable
bring about exceptional social orders). The dissection has presented a specific number of creative
gimmicks, which require a deeper examination in future. The present model may be expanded
first of all by considering the likelihood of an adjusted development in the middle of private and
social exercises. Two effects may be applicable starting here of perspective. On one side, social
capital expands benefit in the private division, also settled in the cited writing, and this renders
significantly more genuine the issues made by under-interest in social exercises (social neediness
traps), while, in the meantime, it permits an adjusted development when social support is
sufficiently high. On the other side, market exercises may themselves help make new relations,
along these lines rendering less genuine the issue of social destitution and, thus, permitting an
adjusted development even with a low social cooperation. Since the two effects are
counterbalancing.
Olsson et al.(2003)examined the criticalness of economic development. This article models the
move from a hunter–gatherer economy to agrarian creation, a critical occasion in history which
made conceivable the endogenous innovative advancement that at last prompted the Industrial
Revolution. Further it shows the proof which demonstrates that the geographic and introductory
biogeographic conditions pushed definitive impact on the area and timing of moves to idle
farming, to complex social association and, in the long run, to current mechanical creation. Proof
from a vast cross-segment of nations demonstrates that the impacts of geology and biogeography
on contemporary levels of economic development are astoundingly solid, and the come about
that appears differently in relation to a few late studies where the impact runs singularly through
organization
Gustav Ranis (2004)investigated the dissection of human development and economic
development. Late writing has separated Human Development, depicted as a conclusive
destination of the progression process, with economic development, delineated as an imperfect
substitute for more general welfare, or as techniques to updated human change. This open
15. consideration has developed the definitions and goals of change yet need to describe the basic
interrelations between Human Advancement (HD) and financial development implies Economic
Growth (EG). To the extent that more unmistakable open door and capabilities upgrade monetary
execution, human progression will have a crucial effect on development. Furthermore, to the
extent that stretched pay rates will fabricate the extent of choices and limits savored the
experience of by families and governments, monetary development will redesign human change.
This paper examines these associations and the two-way linkages are additionally included.
Izushi and Huggins (2004) investigated the empirical analysis of human capital development
and economic growth in European regions. Recent examination of the information based
economy attracts progressively thoughtfulness regarding the part that the creation and
administration of learning plays in economic improvement. Improvement of human capital, the
key system for learning creation and administration, turns into a focal issue for strategy
producers and experts at the local, and additionally national, level. The current load of human
and physical capital in those locales with an abnormal state of urban foundation does not prompt
a high rate of economic development. Our exact dissection exhibits that the rate of economic
development is dictated by the amassing of human and physical capital, not by level of their
current stocks. We discovered no noteworthy impacts of scale that would support those areas
with a bigger supply of human capital. The essential arrangement ramifications of our study is
that, keeping in mind the end goal to encourage economic development, instruction and
preparing need to supply human capital at a speedier pace than just renewing it as it vanishes
from the work market. Given the noteworthy effect of high-request human capital, (for example,
business R&D staff for our situation study) and in addition the inexorably quick pace of
innovative change that makes human capital old, a purposeful exertion needs to be made to
encourage its constant advancement.
Ranis and Stewart (2005)examined an element interface in the middle of economy and human
development. This paper experimentally confirms the significance of different connections in
each of two chains about whether which implies from economic development (EG) to human
development (HD), including EG itself, pay conveyance, the social consumption degree and
female instruction; from HD to EG, including HD itself, alongside the venture proportion. Our
most vital conclusion concerns sequencing about whether. EG, which is imperative information
16. into HD change, is itself not feasible without such change, either former or concurrent.
Consequently, customary strategy counsel, which contends that HD upgrades must hold up until
EG development makes it moderate.
Mehrotra and Peltonen (2005)split away at economic development and fiscal approach. This
paper analyzes the connection between financial development and monetary strategy. This study
presented a marker for Socio-Economic Development Index (SEDI) and explores its association
with distinctive financial variables, utilizing information for the attachment nations, in particular
Greece, Portugal, Spain and Ireland for 1980-1999. We find that a change in the net loaning
position of the administration, and additionally a fall in the level of open obligation, would be
advantageous for financial development in the medium term. Moreover, financial union is
discovered to be more pertinent for pushing financial development in the attachment nations than
in the other EU-15 Member States. Our results give backing to motivators to check using, for
example, the monetary criteria of the Maastricht Treaty or the Stability and Growth Pact.
Nunn (2008) used information from the 1860 U.S. Census to examine whether the data support
the inequality channel proposed by Engerman and Sokoloff. The study, based on OLS estimates,
found a strong positive relationship between slavery and inequality in the size of land holdings,
when looking across either states or counties. This finding is consistent with the notion that
slavery resulted in economic inequality. However, Nunn failed to find any evidence of an
empirical relationship between initial economic inequality and current income levels. Although
the counties and states with higher levels of land inequality in 1860 also have higher levels of
income inequality today, these states and counties do not have lower levels of income today. In
other words, there is no evidence of a relationship between historic inequality and current
economic underdevelopment as hypothesized by Engerman and Sokoloff. Instead, the data are
most consistent with slavery having had two unrelated consequences: It increased economic
inequality, which persists today, and it resulted in lower levels of economic development.
Nunn (2009) has investigated the importance of history for economic development. This article
provides a survey of a growing body of empiricalevidence that points toward the important long-
term effects thathistoric events can have on economic development. The most recentstudies,
using microlevel data and more sophisticated identificationtechniques, have moved beyond
testing whether historymatters and attempt to identify exactly why history matters. Themost
17. commonly examined channels include institutions, culture,knowledge and technology, and
movements between multiple equilibria. The article concludes with a discussion of the questions
thatremain and the direction of current research in the literature.
Maharajh (2010) had investigated the relationship between economic growth and human
development. Economic development is by and large accepted to enhance the personal
satisfaction of the all inclusive community. In Africa, in any case, development has not equalled
advancement. This paper looks to address the relationship in the middle of development and
improvement from the point of view of frameworks of advancement. The paper is organized into
twelve segments comprehensive of a presentation and conclusion. Instantly after the
presentation, the paper turns to depicting Demographics and Economic Growth. The third
segment is committed to the Institutions and Policies that underpin Science, Technology and
Innovation. In the fourth area we illuminate the part of Science, Technology and Innovation in
Development. In the fifth segment we give some data concerning the enhancement of African
economies. This permits us to then turn our thoughtfulness regarding Macro-Economic
Conditions and Policy. Emulating this area, we move regard for a talk on Economic Sectors and
Priorities before introducing the advancement the mainland has accomplished in looking for the
accomplishment of the Millennium Development Goals. In the ninth area we introduce a few
parts of Global Competitiveness, before addressing the concerns of Industrialisation and
Entrepreneurship. The eleventh segment addresses the difficulties of Regional coordination. The
last area closes by a reaffirmation of the dynamic motion of Joseph Schumpeter‟s innovative
obliteration molding structural change. It is contended that the incitement of innovative
advancement, change of human capacities and the advancement of schema conditions are key for
Africa‟s improvement. Whilst Systems of Innovation give a middle of the road level of
hierarchical order to shape strategy and focus methodology; it is fundamentally working together
with authentic, participative influence that a socially iron empowered evolutionary change offer
the landmass the chance to escape the horrible cycles of underdevelopment.
Fred Gault (2011) found the social impacts of the development of science, technology and
innovation indicators. This paper examines the social impacts of the development of science,
technology and innovation indicators. The approach deals separately with the development
process and with the use of the indicators that result. Underlying the discussion is an assumption
18. that indicators are a technology, a product, which governs behaviour, is modified by users
(outside of the producer community), and develops in response to user needs. Science and
technology indicators are considered separately from innovation indicators, and the importance
of language based on codified and tacit knowledge is emphasized. The knowledge is codified in
manuals, and the tacit knowledge is held in overlapping communities of practice that develop the
manuals, gather the data, produce the indicators and use them. Finally, there is a discussion of
how this process changes and renews itself.
Ali et al. (2012) found human capital formation and economic growth in Pakistan. This study
inspects the part of human capital creation in economic development in Pakistan by utilizing the
data for the time period of 1972-73 to 2010-11. The results inferred that instruction enlistment
(substitute for human capital), wellbeing and physical capital are critical to support the economic
development in Pakistan. Human capital, altered capital and utilized work power influence the
GDP and bring about unidirectional and non-unidirectional causality. In the wake of evaluating
the model, we presumed that instruction enlistment file, terrible altered capital development and
Gini coefficient have positive and huge effect on horrible residential item, while head check
degree, baby death rate, CPI swelling and venture development rate have negative and critical
effect on horrible household item in Pakistan.
Popa (2012) investigated the impact of social factors on economic growth: Empirical evidence
for Romania and European Union countries. This study breaks down the relationship between the
social variables and the economic development. An outline of social and economic environment
is displayed for Romania. Thusly, the paper breaks down the worldwide development of social
and economic environment about whether and builds an immediate connection between human
improvement and economic welfare. An econometric model and a bunching model are tried for
European Union nations. The aftereffects of the paper uncover the social variables that are
absolutely corresponded with the economic development (i.e. the normal years of educating and
the future) and, separately, the components that are contrarily connected with the economic
development (i.e. the populace at danger of neediness and the unemployment rate).
Spolaore and Wacziarg (2013)recognized the roots of economic development. The empirical
literature on economic growth and development has moved from the study of proximate
determinants to the analysis of ever deeper, more fundamental factors, rooted in long-term
19. history. A growing body of new empirical work focuses on the measurement and estimation of
the effects of historical variables on contemporary income by explicitly taking into account the
ancestral composition of current populations. The evidence suggests that economic development
is affected by traits that have been transmitted across generations over the very long run. This
article surveys this new literature and provides a framework to discuss different channels through
which intergenerational transmitted characteristics may impact economic development,
biologically (via genetic or epigenetic transmission) and culturally (via behavioral or symbolic
transmission). An important issue is whether historically transmitted traits have affected
development through their direct impact on productivity, or have operated indirectly as barriers
to the diffusion of productivityenhancinginnovations across populations
Samimiet al. examined the natural maintainable quality and economic development from some
creating nations. The explanation behind this paper is to gadget and assesses the relationship
between biological practical quality rundown and economic development in making countries.
Most studies consolidated Environmental Kuznets Curve (EKC) hypothesis as a methodology to
deal with the impact of hailing regular quality on economic development, to affirm a turned
around U twist. This paper Environmental Sustainability records (ESI) the record changes
between zero to hundred in such a way, to the point that a higher rundown intimates a
predominant Environmental Sustainability. This record which is opposite of the regular rot list
has been used and thusly expects a U-molded Kuznets Curve to support Kuznets hypothesis. Of
course, our revelations as to the assessed board backslideanalysation in the midst of 2001-2005
revoke the regular Kuznets Curve. In other word, we found a revised U twist regarding the
relationship between regular reasonable quality and economic development.
Gokhan Umut investigated the impact of human capital on economic growth througha panel
data analysis. There are so many economists who gave many theories,various economic growth
models due to their importance for the countries. The most famous model is Rostovian take-off
model, in other words Rostow’s Stages of Growth. In addition to these, neoclassical growth
theory was based on Solow’s growth theory which explains growth by technological
determinants as exogenous factors. In the 1980s, new growth models which were named
endogenous growth theory were developed by Robert Lucas and Paul Romer. According to this
model, human capital includes variables such as education and health which are also some
20. parts of economic growth. This paper demonstrates the relationship between human capital and
monetary development by utilizing board information investigation.Economic growth is
endogenous variable, whereasprimary school enrollment, secondary school enrollment, tertiary
school enrollment, public expenditure on education and health expenditure are exogenous
variables. The relation between human capital and economic growth between 1999 and 2008 will
be analyzed in 14 countries; seven developed countries and seven developing countries.
22. Data and Methodology
1. Data Description
This research is associated with the relationship between social development and economic
development of Pakistan. To examine this relationship econometric tools have been used. The
sample of the study is primary. Primary data is collected to check the relationship between social
and economic development by using the district wise analysis. Data is collected from all the
provinces of Pakistan and distributed in different districts.
2. Specification of the Model
Four main factors are ranked in this study; Economic ranks, literacy ranks, enrolment rate
primary level and adult literacy rate. 15 districts have been taken from each of the province.
Descriptive analysis technique has been used in this study to analyze the relationship of all
variables with social and economic development of the district and then province. Quality data is
collected to get the best estimation results. When we regress district wise data, it becomes more
difficult to analyze the overall province data, because there comes the role of autocorrelation in
the data due to the double counting. So to get rid of this problem, we did not examine the overall
significance of data.
Punjab has many districts, but this study had taken only the top ranked districts. Sindh and KPK
also have many districts but only top ranked districts had taken for the analysis. Balochistan has
few districts, so all districts have been taken for the better analysis.
Rank Correlation matrix technique is also been used in this study. Province wise correlation is
calculated to check the relationship and interdependence among the variables.Two random
variables are positively correlated if high values of one are likely to be associated with high
values of the other. They are negatively correlated if high values of one are likely to be
associated with low values of the other. Correlation coefficient should be somewhere 0 to 1. If
the value is 1, then it means there exist perfect correlation among the variables and if the value is
0, it means there exists no correlation among variables. So variables should be interdependent
and correlated to some extent.
Rank correlation Formula given as follow
Results and discussion of the variables is given in the next step.
26. Results and discussion
This part incorporates the results and examination of the study. The dialog of the results is
focused around the rankings.
Advancement is a procedure in which something passes by degrees to the distinctive stages
especially a more phenomenal or adult stage. The progression is the showing of looking for after
monetary development and social movement in ways that could be underpinned for the long term
by controlling possessions and strengthening nature. The change is perfect and solid movement
in all fragments for instance it is possible that its monetary or social furthermore grows the GDP
development rate and have better desires for commonplace comforts.
The advancement of a country is measured with authentic records, for instance, pay for each
capita (for each person) (GDP), future, the rate of instruction, etc. The UN has made the HDI
(Human Development Index), a compound pointer of the above realities, to gage the level of
human development for countries where data is open. While there is a robust relationship
between having a high HDI score and a prosperous economy, the UN (United Nations) raises
that the HDI speaks to more than compensation or profit. Not under any condition like GDP for
every capita or for every capita wage, has the HDI considered how wage is changed "into
guideline and wellbeing open entryways and therefore into bigger measures of human change.
Social change infers that all the general public can improve as far as political, social and
monetary structures. It additionally incorporates serene conditions, better living models and
incredible wellbeing of country. Where people have all the rights and honorability and everyone
is proportional as indicated by law. Social headway is the welfare of society so people can live
legitimately and have better choices to picked calling and employment.
Districts of Punjab
0
5
10
15
20
25
30
35
40
Districts of Punjab
Economic Ranks Literacy Ranks Enrolment Rate Adult Literacy Rate
27. Economic Ranking
This study has taken the top districts of Punjab. Ranking is showing that how much a district
needs social safety nets. More the ranking, less a district is getting social safety nets, less
developed.
Narowal is on the top of the list of the district in economic ranking. Rank of Narowal is 61
among the top 15 districts of Punjab. Then, the 2nd highest ranked district Lodhran, which has the
rank 59. This economic ranking is showing that the social and economic development of the
district. It is also showing that how district is getting the attention of Govt. and social safety nets
are being fulfilled by the Govt. These ranking are also showing that more a districts is developed,
less the ranking is. Layyah, Pak-pattan, Bahawalnagar, Toba teksingh, MandiBahaud din,
Bhakkar, Jhelam, Sargoda, RajanPur, Jhang, Hafizabad, Vehari, Okara and Chakwal. These are
the top districts which were taken for the analysis.
Literacy Ranks
Now this study is ranking the districts with their literacy rate. This tells that what the actual
literacy rate in the district is. Narowal was the top one in economic ranks but in literacy ranks its
rate is 20. This means that it is the least literate district. In the literacy ranking, Khanewal is on
the top of the list. The sample is very large, but here we are discussing only top 15 districts.
Khanewal, RajanPur, Lodhran, MuzafarGarh, RY Khan, Okara, Bhalwalpur, Pak pattan, Vehari,
Bhawalnagar, Jhang and Kasur are the main districts of the Punjab. These districts are written
ranking wise. Khanewal on the top and then all others and enrolment rate at primary level is
increasing with the passage of time.
Literacy rate above 15 years, is also being ranked and shown in this study. Literacy rate is very
much low in these districts. There are only few schools and colleges in these districts.
Districts of Sindh
0
2
4
6
8
10
12
14
16
Districts of Sindh
economic ranks literacey ranks enrolment rate primary level adult literecey
28. 0
5
10
15
20
Districts of KPK
economic ranks literacey ranks enrolment rate primary level adult literecey
Economic Ranking
Shikarpur’s economic rank is 15, which means this district has little economic and social
development. Karachi is least ranked district because it has good social safety nets. The names of
remaining districts are Larkana, Jaccobabad, Khairpur, NausheroFeroze, Badin, Mirpur, Nawab
shah, Sukkur, Sanghar, Thar-Par kar, Ghotki and Hyderabad. These districts are those which are
economically ranked and shown their social and economic development.
Literacy Ranks
Thatha has the highest literacy rate among the sample districts. This literacy rate is due to the
high adult literacy rate not because of primary enrolment rate.
Districts of KPK
Mansehra is on the top of the districts. Its rank is 17, which mean that is has little social and
safety nets. Tank, Bunir, Mala Kand, LakkiMarwat, Abbotabad, Swat, DI khan, Bannu,
Charsada, Mardan, Kohat, Peshawar, Batagram, Swabi and Haipur are the remaining districts
which were taken in the sample set. Social and economic development is very important for an
economy. These districts are also ranked as literacy ranks.
30. Correlation Matrix
Punjab’s Districts’ Correlation
Correlation is registered into what is known as the correlation coefficient, which extends
between -1 and +1. Immaculate positive correlation (a correlation co-effective of +1) infers that
as one security moves, either up or down, the other security will move in lockstep, in the same
bearing. On the other hand, flawless negative correlation implies that if one security moves in
either heading the security that is consummately contrarily related will move in the inverse
bearing. On the off chance that the correlation is 0, the developments of the securities are said to
have no correlation; they are totally arbitrary.
In the above table, all variables are correlated with Economic ranking. Economic ranking is 21 %
correlated with the literacy rate, economic ranks is 4 % correlated with enrolment rate, Adult
literacy rate is 24 % related with the economic ranks. Less the correlation, less will be the
interdependence. All variables are significant and have impacts on each other.
Sindh’s Districts’ Correlation
Correlations
ECO LIT EN ALR HTT WAT
CHIL
D
PWTT
I
Spearman
's rho
EC
O
Correlatio
n
Coefficie
nt
1.000 .321 .532 .321 .054 .432 .261 .093
Sig. (2-
tailed)
. .243 .041 .243 .850 .108 .348 .742
N 15 15 15 15 15 15 15 15
Correlations
ECO LIT EN ALR HTT WAT
CHIL
D
PWTT
I
Spearman
's rho
EC
O
Correlatio
n
Coefficie
nt
1.000 .218 -.041 .248 .423 .180 -.149 -.026
Sig. (2-
tailed)
. .209 .814 .151 .011 .302 .394 .881
N 35 35 35 35 35 35 35 35
31. In the above table, Economic ranking of districts Sindh is related with the all other variables like
literacy rank, enrolment rate, adult literacy rate, immunized children and Toxoid injection.
Economic ranking the 32 % correlated with the literacy rate. It shows that how much economic
ranking effect the literacy rate. All variables are positively related with the economic rank. If we
increase 1 unit of literacy rate, economic ranking will increase by 32%. Enrolment rate is
positively related with economic ranks by 53 %. Adult literacy rate is 32 % correlated with
economic ranks. Toxoid injection is 9 % correlated with economic ranks.
KPK’s districts’ Correlation
Correlations
ECO LIT EN ALR HTT WAT
CHIL
D
PWTT
I
Spearman
's rho
EC
O
Correlatio
n
Coefficie
nt
1.000 .137 .137 .218 .407 .203 -.145 .228
Sig. (2-
tailed)
. .599 .599 .400 .105 .434 .580 .379
N 17 17 17 17 17 17 17 17
In the above table, Economic ranking of districts KPK is related with the all other variables like
literacy rank, enrolment rate, adult literacy rate, immunized children and Toxoid injection.
Economic ranking the 13 % correlated with the literacy rate. It shows that how much economic
ranking effect the literacy rate. All variables are positively related with the economic rank. If we
increase 1 unit of literacy rate, economic ranking will increase by 13%. Enrolment rate is
positively related with economic ranks by 13 %. Adult literacy rate is 21 % correlated with
economic ranks. Toxoid injection is 22 % correlated with economic ranks.
All the variables are positively related with economic ranking except immunized children age.
33. Graphically Representation
The Following graphs are showing the relationship of all ranked variables that are used in this
study. Economic ranks, Literacy ranks, Enrolment Rate, and Adult Literacy Rate are independent
variables and the districts are dependent variables. In some districts, economic ranks are greater
than any other variable, which means that there exists economic inequality in these districts.
Literacy rate tells the how much people are educated in this district. Enrolment rate also tells
about the awareness of people that enroll their children in the schools. If the enrolment rate is
high which means that more people are educated and high will be the literacy rate. If adult
literacy rate is high, then the district is also good in ranking.
Analysis of top 15 districts of Punjab had done in the above graph. In the context of economic
ranks, Narowal district is on the top of the list. While in the context of literacy ranks, RajanPur is
on the top of the list. Enrolment rate is also considered as a good indicator to measure the social
and economic rank of the district. Lodhran is on the top of the list in the context of enrolment
rate. Adult literacy rate is a remedial measure for the social and economic development.
RajanPur is the best district among all other districts, which has the top adult literacy rate.
0
5
10
15
20
25
30
35
40
Districts of Punjab
Economic Ranks Literacy Ranks Enrolment Rate Adult Literacy Rate
34. 0
2
4
6
8
10
12
14
16
18
Districts of KPK
economic ranks literacey ranks enrolment rate primary level adult literecey
Analysis of top 15 districts of Sindh had done in the above graph. In the context of economic
ranks, Shikarpur district is on the top of the list. While in the context of literacy ranks,
Jaccobabad is on the top of the list. Enrolment rate is also considered as a good indicator to
measure the social and economic rank of the district. Jaccobabad is on the top of the list in the
context of enrolment rate. Adult literacy rate is a remedial measure for the social and economic
development. Thar Parkar is the best district among all other districts, which has the top adult
literacy rate. Karachi is the least district with according to the analysis of districts. Sukkur is
also not good in accordance with the analysis.
0
2
4
6
8
10
12
14
16
Districts of Sindh
economic ranks literacey ranks enrolment rate primary level adult literecey
35. 0
5
10
15
20
25
30
35
40
LASBELLA PISHIN, QUETTA
Districts of Balochistan
Economic Ranks Literacy Ranks Enrolment Rate Adult literacy Rate
Abbotabad is on the least in the context of all independent variables. Analysis of top 15 districts
of KPK had done in the above graph. In the context of economic ranks, Mansehra district is on
the top of the list. While in the context of literacy ranks, Bunir is on the top of the list. Enrolment
rate is also considered as a good indicator to measure the social and economic rank of the
district. Batagram is on the top of the list in the context of enrolment rate. Adult literacy rate is a
remedial measure for the social and economic development. Bunir is the best district among all
other districts, which has the top adult literacy rate.
Balochistan is the less developed province of Pakistan. Only two districts were ranked. Lasbella
and Pishin. Enrolment rate is high in Quetta and and literacy ranks is high in Lesbella.
37. Conclusions and Recommendation
Pakistan's economic and social fabric is constantly openly rotting because of the crisis level
difficulties identified with training, wellbeing, agribusiness, nature's domain, and so forth. These
difficulties are seriously confining Pakistan's capacity to leave the chasm of neediness, craving,
obliviousness, backwardness, radicalism and peace weakening. Science and engineering can play
a urgent and successful part in dispensing with or decreasing the previously stated issues. The
fundamental innovations which can be helpful for the recognized financial difficulties, are
biotechnology, hydrology, mining-designing, electrical and electronic building, structural
building, restorative and concoction procedure building, option vitality advances,
nanotechnology and Icts. Result-situated connected innovative work is important for this reason.
Adjustment and osmosis of the aftereffects of officially demonstrated connected engineering, as
opposed to just fundamental exploration could end up being more gainful for Pakistan, under the
current circumstances.
Institutional limit building and human asset development for recognized ability development in
focused on fields of investment ought to be given need. Informative changes, for example,
wiping out class-framework in schools, advancing curricula with science educating at essential
and auxiliary school level, leaning toward English as the dialect of instructing, ought to be
received so that fit labor ought to be created to comprehend and apply science and innovation to
settle financial issues being confronted by Pakistan. Arranging, arrangements and methods for
applying science and engineering to illuminate distinguished financial issues of Pakistan ought to
be painstakingly made and all the pertinent stakeholders ought to be included in this procedure.
Solid accentuation ought to be laid on execution and assessment. Access of the normal man to
the proposed innovations for comprehending financial issues ought to be made simpler.
Debasement was recognized as the real impeding component for Pakistan's advancement.
Computerized stages like e-influence and e-administration out in the open and private-part ought
to be broadly connected.
The Administration of Pakistan ought to attempt genuine exertions to push college industry
linkages. Use of scholarly potential for modern development in the current time of globalization
and world aggressiveness is to the greatest advantage of Pakistan. Answers for the issues of
economic and social development are given beneath:
38. Access to Foreign Direct Investment (FDI)
Foreign Direct Investment refers to capital ventures into plants, apparatus and supplies by a
remote organization or a single person. FDI is paramount for the development of Caribbean
economies as they are tested by their high obligation to GDP proportions and expanded
worldwide rivalry for fare profit. Drawing in remote immediate venture is a path for Caribbean
nations to get capital for development and development. Work for nationals, expanded access to
worldwide markets, Presentation of cutting edge advances and procedures, and Change in human
asset aptitudes are a few profits of the FDI.
Development of human resource
Interest in human capital is basic for Caribbean economies to contend internationally. Enhancing
the estimation of human capital through training and preparing will build the beneficial limit of
Caribbean countries.
Development of manufacturing sector
The assembling area makes worth included items which expands send out income for Caribbean
economies. Creating the assembling segment in this way will effect on the potential economic
development of a nation. Innovative headway and Innovative work are the systems for creating
assembling part.
Policy Recommendations
An imperative need for constrained open stores for economic development ought to be to
empower nearby useful and preparing foundations to be more receptive to the planning needs of
little and medium estimated organizations in the range.
An alternate need should to be open backing for semi private data and preparing administrations
for little and medium estimated firms and start-up firms, helping them decide how to fare and
modernize, and assisting with administration issues. Firms ought to be charged a few expenses
for these administrations, with a specific end goal to extend restricted open subsidizes and give a
motivating force to great administration execution. Where conceivable, these administrations
should to look to work with gatherings of firms to help them participate to tackle some of their
39. issues. The nature of these administrations ought to be consistently assessed through studies of
business customers of these projects.
Open backing of business capital needs is best given by urging private economic foundations to
give sort of higher danger financing to little and medium estimated organizations. Government
can be a broker, yet the cap does not fit well.
Higher unemployment ranges might truly be intrigued by giving expense and other economic
subsidies for an assortment of economic development ventures. Such subsidies ought to be
centered around fare base firms, import-contending firms, or their suppliers, and on higher
compensation firms. Subsidies ought to be given forthright hook back procurements if certain
employment creation objectives are not met.
To the degree conceivable, nearby governments ought to stay away from ruinous rivalry for
business land ventures with other adjacent wards. In the event that attainable, economic
development deliberations ought to be composed over the whole neighborhood work market.
The center of neighborhood economic development exertions ought to be on balancing out the
nearby expense base and enhancing general work market opportunities for neighborhood
occupants.
Tied aid is likewise the best answer for take care of the issues of economic and social
development. This is help with conditions connected. Case in point, there may be a necessity to
purchase products from the contributor nation or the help may be given on the condition that
there are economic or political changes.
Human capital can take up a critical part in development. On the other hand, confirmation
proposes that interest in essential training in creating nations yields a higher return than different
types of instruction.
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