Download to read offline
Uploaded byDr. Arifa Saeed
economic growth, development and poverty reduction.pptx
economic growth, development and poverty reduction.pptx
More Related Content
Similar to economic growth, development and poverty reduction.pptx
More from Dr. Arifa Saeed
economic growth, development and poverty reduction.pptx
- 1. ECONOMIC DEVELOPMENT ANDPOVERTY REDUCTION - ANALYZING STRATEGIES AND IMPACTS Dr. Arifa Saeed
- 7.
- 10. STRATEGIES FOR POVERTYREDUCTION Microfinance & SME Support Social Safety Nets & Welfare Programs Progressive Taxation & Wealth Redistribution Public Health & Nutrition Programs Gender Equality & Empowerment
- 11. CASE STUDIES: ECONOMICDEVELOPMENT AND POVERTY REDUCTION 1. China’s Economic Growth & Poverty Alleviation 2. Bangladesh & Microfinance (Grameen Bank)
- 12. 1. CHINA’S ECONOMICGROWTH & POVERTY ALLEVIATION Overview: In the past 40 years, China has lifted over 800 million people out of poverty. The poverty rate dropped from 88% (1981) to 0.2% (2021) (World Bank). Economic reforms in 1978, foreign direct investment (FDI), and rural development programs were key drivers. GDP Growth: 1978 GDP per capita: $156 2022 GDP per capita: $12,556 Policy Impact Household Responsibility System (1979) Improved agricultural productivity. Special Economic Zones (1980s) Attracted foreign investments, boosting employment. Urbanization & Infrastructure Growth Increased industrial output and job creation. Targeted Poverty Alleviation (2013-2020) Direct financial support, relocation, and job training programs. Key Policies & Strategies
- 13. 2. BANGLADESH &MICROFINANCE (GRAMEEN BANK) Overview: In the 1970s, Bangladesh faced extreme poverty, with over 80% of the population below the poverty line. Grameen Bank (Founded 1983 by Muhammad Yunus) introduced microfinance, providing small loans to the poor, especially women. Success Factors: No collateral required for loans. Women-led economic empowerment. Increased self-employment and entrepreneurship. Indicator 1980s 2023 Poverty Rate ~80% ~18.7% Female Employment Rate ~15% ~35% Microfinance Beneficiaries < 100K 9 million (Grameen Bank) Impact of Microfinance
- 16. ROLE OF INTERNATIONALORGANIZATIONS IN POVERTY REDUCTION 1. World Bank & IMF – Development Funding & Policy Advice 2. United Nations SDGs – Goal 1: No Poverty 3. NGOs & Non-Profits – Community-Based Poverty Interventions
- 17. 1. WORLD BANK& IMF – DEVELOPMENT FUNDING & POLICY ADVICE World Bank: Provides long-term development loans and poverty reduction strategies. IDA (International Development Association) provides concessional loans to developing nations. IMF: Supports financial stability, especially in economic crises. Debt relief programs in Africa (HIPC Initiative). Region World Bank Funding ($Billion) IMF Support ($Billion) Sub- Saharan Africa 40.6 20.2 South Asia 32.1 10.5 Latin America 24.3 15.8 World Bank & IMF Funding (2023)
- 18. 2. UNITED NATIONSSDGS – GOAL 1: NO POVERTY Target: Eradicate extreme poverty (people living under $2.15/day) by 2030. Progress: 2015: 10.1% global poverty rate 2022: 8.4% global poverty rate Challenge: COVID-19 pushed 70 million back into extreme poverty.
- 19. 3. NGOS &NON-PROFITS – COMMUNITY-BASED POVERTY INTERVENTIONS Oxfam: Works on food security and gender- based economic programs. BRAC (Bangladesh): One of the largest anti- poverty organizations, reaching over 100 million people. KASHF foundation – women empowerment Akuwat foundation, education, uplifting , poverty reduction
- 20. CHALLENGES IN IMPLEMENTINGECONOMIC DEVELOPMENT AND POVERTY REDUCTION POLICIES IN PAKISTAN akistan faces significant challenges in implementing policies aimed at economic development and poverty reduction. These challenges include income inequality, political instability, corruption, climate change, and global economic shocks. As; 1. Income Inequality & Wealth Concentration 2. Political Instability & Corruption 3. Climate Change & Environmental Degradation 4. Global Economic Crises & Trade Barriers
- 21. 1. INCOME INEQUALITY& WEALTH CONCENTRATION OVERVIEW Income Distribution in Pakistan Pakistan’s Gini Coefficient (2023): 31.2 (World Bank) – indicates a moderate level of income inequality. Top 10% of the population owns over 60% of total wealth, while the bottom 40% struggles with basic needs. Wage Gap: Rural workers earn 40% less than urban workers. Elite Capture: A small elite controls land, industry, and financial institutions, limiting social mobility. Wealth Group Percentage of National Income Top 10% 60% Middle 40% 30% Bottom 50% 10%
- 22. 2. POLITICAL INSTABILITY& CORRUPTION OVERVIEW EFFECTS OF CORRUPTION ON ECONOMIC DEVELOPMENT Pakistan ranks 140 out of 180 countries in the Corruption Perceptions Index 2023 (Transparency International). Political instability leads to frequent policy reversals and lack of long-term planning. Example: The IMF bailout programs often come with strict conditions, but corruption and weak implementation prevent long-term economic stability. Corrupt Practice Impact Misuse of public funds Reduces investment in education, health, and infrastructure. Bribery in business Increases cost of doing business, discouraging foreign investment. Nepotism in policymaking Limits merit-based appointments, affecting policy effectiveness.
- 23. 3. CLIMATE CHANGE& ENVIRONMENTAL DEGRADATION EXPLAINATION CLIMATE CHANGE IMPACT ON POVERTY IN PAKISTAN Pakistan is among the top 10 most vulnerable countries to climate change (Global Climate Risk Index 2023). 2022 Floods: Affected 33 million people, caused $30 billion in damages, and increased food insecurity. Rising temperatures are reducing crop yields, worsening rural poverty. Agricultural Losses: Over 60% of Pakistan’s population depends on agriculture, but climate change is leading to crop failures. Water Scarcity: Pakistan is facing an annual water deficit of 35 billion cubic meters. Climate Event Economic Cost ($ Billion) People Affected (Million) 2022 Floods 30 33 2015 Heatwave 0.5 1.2 Droughts 2.5 5
- 24. 4. GLOBAL ECONOMICCRISES & TRADE BARRIERS OVERVIEW ECONOMIC SHOCKS IMPACTING PAKISTAN Pakistan’s external debt (2023): $126.3 billion (State Bank of Pakistan). Pakistani Rupee depreciation: Over 40% decline against USD (2022- 2023), increasing import costs and inflation. Inflation: Food and fuel prices have surged, pushing more people below the poverty line. Trade Deficit: Imports exceed exports, leading to a current account deficit of $3.9 billion (FY2023). Crisis GDP Loss ($ Billion) Inflation Rate (%) COVID-19 (2020) 19.2 10.7 Ukraine War (2022) 4.8 25.4 IMF Loan Conditions Increased debt servicing Reduced social spending
- 25.
- 32. STRATEGIES FOR ECONOMICDEVELOPMENT Investment in Education & Skills Training Industrialization & Job Creation Infrastructure Development (transport, energy, IT) Technological Advancements & Innovation Financial Inclusion & Access to Credit
- 45. RESOURCE CURSE TheResource Curse, also known as the Paradox of Plenty, refers to the phenomenon where countries rich in natural resources, such as oil, gas, or minerals, experience slower economic growth, weak democratic institutions, and increased corruption compared to resource-poor countries. Below are four key explanations of the Resource Curse: 1. Dutch Disease 2. Political Corruption and Rent-Seeking 3. Volatility of Resource Prices 4. Weak Institutional Development (Resource Trap)
- 46. 1. DUTCH DISEASE EXPLANATION A resource boom increases foreign currency inflows, causing the local currency to appreciate. This makes other sectors (like manufacturing and agriculture) less competitive in international markets. Leads to economic imbalances, making the country overly dependent on resource exports. ✅ Example: Nigeria’s oil exports led to currency appreciation, making its agricultural and manufacturing sectors less competitive.
- 47. 2. POLITICAL CORRUPTIONAND RENT-SEEKING EXPLANATION Large revenues from natural resources often lead to corruption and mismanagement. Governments may rely on resource wealth instead of taxation, reducing public accountability. Elites and politicians may engage in rent-seeking (exploiting resources for personal gain rather than national development). ✅ Example: Venezuela’s oil wealth led to mismanagement and corruption, causing economic collapse despite vast reserves.
- 48. 3. VOLATILITY OFRESOURCE PRICES EXPLANATION Resource prices fluctuate in global markets, making economies vulnerable to boom-and-bust cycles. During price drops, resource- dependent countries face budget deficits, economic downturns, and social instability. Lack of economic diversification worsens the impact. ✅ Example: Russia’s economy suffered during oil price crashes in 2008 and 2014, leading to recessions
- 49. 4. WEAK INSTITUTIONALDEVELOPMENT (RESOURCE TRAP) EXPLANATION Resource-rich countries often fail to develop strong institutions, as governments rely on easy resource revenue instead of investing in education, infrastructure, and human capital. Can lead to authoritarianism, as rulers consolidate power using resource wealth to suppress opposition. ✅ Example: Saudi Arabia’s oil wealth allows the monarchy to maintain power without democratic reforms.