“Employment Generation and Poverty Alleviation in Developing Countries” Chall...IOSR Journals
Implications of economic policies initiated and pursued by the Government for the creation of
gainful employment opportunities. After independence, when India initiated the programme of economic
development through planning mechanism, neither of the two prevalent economic theories i.e. the Keynesian
theory of effective demand and the neo-classical theory of flexible wage rates was not found suitable to the
Indian conditions.
Poverty reduction has been an important goal of development policy since the inception of planning in
India. Various antipoverty, employment generation and basic services programmes have been in operation for
decades in India. The ongoing reforms attach great importance to removal of poverty, and addressing
specifically the wide variations across States and the rural-urban divide. Anti-poverty strategy has three broad
components: promotion of economic growth; promotion of human development; and targeted programmes of
poverty alleviation to address multi-dimensional nature of poverty. The various programmes targeted at the
poor have been streamlined and strengthened in recent years, including through the NREGS.
The influence of macro economic environment on the industry speeds ahead economy generates more
jobs and higher levels of wages and income through increasing productivity. To achieve these objectives, series
of outward oriented policy changes i.e. industrial reforms, fiscal reforms, monetary reforms, trade policy reform
etc. were introduced. An economic reform has been evolving historically and being propelled forward with
incredible speed by the technological revolution.
Principles and Concepts Development
What is the real meaning of development?
Why do some countries develop and others remain poor?
What are the sources of development and how do we measure development?
Does historical record of development help us understand it better?
What are the most influential theories of development and are they compatible?
Is development process of developing nations independent or interdependent with that of developed nations?
Definition of Economic Development: 1950s
In economic terms, development is the capacity of a nation to generate and sustain an annual increase in its GNP of 5% or more.
Traditional economic measures:
GDP: is the market value of all final goods and services produced within a country in a given period of time
Y=C+I+G+NX
GNP: is the market value of all final goods and services produced by permanent residents of a country in a given period of time
GNP= GDP+ net factor income from abroad
“Employment Generation and Poverty Alleviation in Developing Countries” Chall...IOSR Journals
Implications of economic policies initiated and pursued by the Government for the creation of
gainful employment opportunities. After independence, when India initiated the programme of economic
development through planning mechanism, neither of the two prevalent economic theories i.e. the Keynesian
theory of effective demand and the neo-classical theory of flexible wage rates was not found suitable to the
Indian conditions.
Poverty reduction has been an important goal of development policy since the inception of planning in
India. Various antipoverty, employment generation and basic services programmes have been in operation for
decades in India. The ongoing reforms attach great importance to removal of poverty, and addressing
specifically the wide variations across States and the rural-urban divide. Anti-poverty strategy has three broad
components: promotion of economic growth; promotion of human development; and targeted programmes of
poverty alleviation to address multi-dimensional nature of poverty. The various programmes targeted at the
poor have been streamlined and strengthened in recent years, including through the NREGS.
The influence of macro economic environment on the industry speeds ahead economy generates more
jobs and higher levels of wages and income through increasing productivity. To achieve these objectives, series
of outward oriented policy changes i.e. industrial reforms, fiscal reforms, monetary reforms, trade policy reform
etc. were introduced. An economic reform has been evolving historically and being propelled forward with
incredible speed by the technological revolution.
Principles and Concepts Development
What is the real meaning of development?
Why do some countries develop and others remain poor?
What are the sources of development and how do we measure development?
Does historical record of development help us understand it better?
What are the most influential theories of development and are they compatible?
Is development process of developing nations independent or interdependent with that of developed nations?
Definition of Economic Development: 1950s
In economic terms, development is the capacity of a nation to generate and sustain an annual increase in its GNP of 5% or more.
Traditional economic measures:
GDP: is the market value of all final goods and services produced within a country in a given period of time
Y=C+I+G+NX
GNP: is the market value of all final goods and services produced by permanent residents of a country in a given period of time
GNP= GDP+ net factor income from abroad
010 hotelling optimum exhaustion of a non renewable resourcePrabha Panth
In 1931, Hotelling showed how the rules that apply to the optimum extraction of a non renewable resource differ from that of a produced product, in perfect competition. Here the mine owner has to weigh the present price with the expected future price, if he wishes to conserve the resource.
There are two highly successful community based organizations (CBOs) in Barbados, the Pinelands Creative Workshop and the Israel Lovell Foundation. Both of these entities are linked to impoverished neighborhoods and over the past 20 years have been successful in social empowerment and transformation through the strategic and creative use of the arts. Additionally, both these CBOs have strong affiliation with the political representatives and leaders of their constituencies. This combination of CBOs, the arts and political support has led to a model that is now being duplicated throughout the rest of Barbados and the Caribbean. Of particular interest is the fact that both these groups are now engaging entrepreneurial development as part of their new mandate and social agenda.
This paper will examine the evolution of these CBOs and their models for achieving social transformation. Much of the research will be primary drawing directly from the source of their leadership and members as well as the author’s experience in managing their arts projects through Barbados’ Cultural Action Fund. It is hoped that this attempt to examine this model will serve to inspire further research.
capital formation,sources of capital formation,voluntary savings, involuntary savings, government borrowings,uses of idle ,resources,external resources.
010 hotelling optimum exhaustion of a non renewable resourcePrabha Panth
In 1931, Hotelling showed how the rules that apply to the optimum extraction of a non renewable resource differ from that of a produced product, in perfect competition. Here the mine owner has to weigh the present price with the expected future price, if he wishes to conserve the resource.
There are two highly successful community based organizations (CBOs) in Barbados, the Pinelands Creative Workshop and the Israel Lovell Foundation. Both of these entities are linked to impoverished neighborhoods and over the past 20 years have been successful in social empowerment and transformation through the strategic and creative use of the arts. Additionally, both these CBOs have strong affiliation with the political representatives and leaders of their constituencies. This combination of CBOs, the arts and political support has led to a model that is now being duplicated throughout the rest of Barbados and the Caribbean. Of particular interest is the fact that both these groups are now engaging entrepreneurial development as part of their new mandate and social agenda.
This paper will examine the evolution of these CBOs and their models for achieving social transformation. Much of the research will be primary drawing directly from the source of their leadership and members as well as the author’s experience in managing their arts projects through Barbados’ Cultural Action Fund. It is hoped that this attempt to examine this model will serve to inspire further research.
capital formation,sources of capital formation,voluntary savings, involuntary savings, government borrowings,uses of idle ,resources,external resources.
Human capital: Education and health in economic development egpShivani Baghel
A brief study on the economic development of health and education in India in the present scenario.
It talks about joint investment in both the sectors considering their rate of return, while dealing with questions like why increasing income is not sufficient? It also briefs about child labor and gender gap.
ECO-UNESCO's Seminar Series: Exploring Good Practice in Education for Sustainable Development
Presentation by Elaine Nevin, ECO-UNESCO's National Director, on Education for Sustainable Development.
About this presentation:
In October 2009, ECO-UNESCO held the seminar Exploring Good Practice in Education for Sustainable Development (ESD). The seminar allowed participants to engage with organisations and initiatives which are leading in the field of Education for Sustainable Development in Ireland and internationally.
The keynote speaker Andy Griggs (Environmental Education Forum) gave a presentation on Good Practice in Education for Sustainable Development. ECO-UNESCO's National Director, Elaine Nevin, opened the day with a presentation on Education for Sustainable Development.
Impact of Human Capital Development on Economic Growth in Nigeriainventionjournals
The study examines the impact of human capital development on economic growth in Nigeria. The study sought to find out how human capital development (education and health) contributes to economic growth (GDP, unemployment and employment rate) in Nigeria. Investment in Education and health are always not considered in Nigeria which limits the economic growth in Nigeria thereby not contributing to gross domestic product in Nigeria. Poor consideration of human capital development result to high level unemployment, low GDP and low employment rate in Nigeria. The main objective is to examine the impact of human capital development on economic growth in Nigeria. Time series data were collected from secondary source from 1999-2015. The Ordinary Least Square was adopted and finding reveals that human capital development and economic growth in Nigeria is insignificant. The study also found that human capital development contributes to unemployment rate in Nigeria but does not contributes to GDP and employment rate in Nigeria. It is therefore recommended that Nigeria government should re-strategies its human capital development policies and develop a programme to solve human development needs in terms of education and health since there is insignificant relationship between human capital development and economic growth.
This study aims to analyze the effect of foreign direct investment (FDI) on new job creation, and pays attention to factors interrelated to employment by using the case of Afghanistan. Using time series data form 2003 to 2017, this paper explore the driving forces and reduction potentials of employment in Afghanistan with consideration for dynamic changes within the traditional OLS and standardize OLS model. The results show that exchange rate plays a dominant role in increasing employment in Afghanistan. And exports and inflation rate plays a dominant role in decreasing employment in Afghanistan. All variables are co-integrated and the analysis of the impulse response function and variance decomposition turns out to be synchronous. Furthermore, in the short run export and inflation rate are more critical in reduction potentials of employment in Afghanistan. Policies should be advised to control inflation rate and illegal export and improve the investment projects to attract more FDI into the economy for quick adjustment purpose in case of the shock to the system.
Effect of Human Resource Accounting on Firms Value A Study of Selected Firms ...ijtsrd
This study evaluated the effect of Human Resource Accounting on Firm’s value A study of selected firm’s quoted on the Nigerian stock exchange. The study adopted ex post facto research design. The population of the study was 116 firms categorized as non financial services sector. Purposive sampling technique was used and 76 firms were considered which had secondary data information that covered a period of 10years from 2010 2020. The regression analysis hypothesis testing was done with the aid of linear structural relations LISREL 8.80 student edition. Data were sourced from annual reports and accounts and Nigerian stock exchange fact book 2020. Finding using market value measures for firm performance showed that Staff Training and Development cost has no significant positive effect on PEPS and Tobin’s Q of the quoted non–financial service firms. Increment in number of staff has no significant positive effect on PEPS and Tobin’s Q of quoted non–financial service firms . The study concluded that Human Resource Accounting affects corporate performance of non financial service firms quoted on the Nigerian Stock Exchange. It is therefore recommended among others, that staff training and development has to be a regular program both on the job and off the job tailored towards filling the identified skills and attitude gaps in the company. Godwin, Adaobi Ozioma | Udeh, Francis N. P. "Effect of Human Resource Accounting on Firms Value: A Study of Selected Firms Quoted on the Nigerian Stock Exchange" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-1 , December 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47762.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/47762/effect-of-human-resource-accounting-on-firms-value-a-study-of-selected-firms-quoted-on-the-nigerian-stock-exchange/godwin-adaobi-ozioma
The literature is in respect of the fact that foreign direct investment has been a key aspect of the development strategy of most developing countries. The main objective of the study is to examine the extent FDI influence employment creation in the non-mining sector of Ghana for the period 2000 – 2016 using time series (annual) data conducted with the aid of OLS (Multiple Linear Regression) model, Autoregressive Distributed Lag (ARDL-ECM) Bounds Testing Approach and Granger-Causality test in the estimation of level relationship / cointegration and causality (respectively) between the study variables (for robustness checks). The result of this study shows that FDI has a statistically significant and a positive impact on employment growth via jobs creation in Ghana. Again, evidence shows that the study variables are cointegrated and have a long run relationship. Further robust test from Granger-causality shows no causal relationship from FDI to employment growth or from employment growth to FDI (at significance level of 5%). In addition, the study identifies factors such as wage structure, investment freedom and subsectors as important indicators influencing employment in the country. Finally, the study recommends policies to help create enabling political and socio-economic environment for FDI thereby creating more sustainable jobs and tackling the current high rates of unemployment in Ghana.
International Journal of Humanities and Social Science Invention (IJHSSI)inventionjournals
International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Human Capital Development as a Recipe for Sustainable Growth in Nigeriapaperpublications3
Abstract: The crucial role of education in the overall development of a nation cannot be overemphasized. It is not only seen as a key to poverty reduction and vehicle for promoting equity, fairness and social justice but also helps to supply the essential human capital which is a paramount condition for sustained economic growth. Thus, enhancing effective investment on education and health has been a tenet of growth and development strategies for most countries. The basic objective of this paper investigated the relationship between human capital (through education and effective health care services) and economic growth in Nigeria, using annual time series data from 1981 to 2013. The paper employs OLS methodology with BLUE assumptions, wald test, breusch Godfrey and pairwise granger test was also used to argument the OLS methodology. The result shows that considering the magnitude 1% increase in RGDP (proxy Economic growth) is brought about by 46% increase in (EXPHLTH) expenditure on health, 107% increase in (GFCF) gross fixed capital formation, 92% increase in (TEXPEDU) total expenditure on education, 0.00091% increase in (TLBF) Total labour force. The estimated value of R2 (goodness of fit) of 0.98 or 98% and it show that the independent variables explain about 80% of the variation in the dependent variable. The findings have a strong implication on educational and health policy in Nigeria. The study seems to suggest that a concerted effort should be made by policymakers to enhance educational and health investment in order to accelerate growth which would engender economic growth.
Impact of Human Capital Development on Economic Growth in Nigeriapaperpublications3
Abstract: The crucial role of education in the overall development of a nation cannot be overemphasized. It is not only seen as a key to poverty reduction and vehicle for promoting equity, fairness and social justice but also helps to supply the essential human capital which is a paramount condition for sustained economic growth. Thus, enhancing effective investment on education and health has been a tenet of growth and development strategies for most countries. The basic objective of this paper investigated the relationship between human capital (through education and effective health care services) and economic growth in Nigeria, using annual time series data from 1980 to 2012. The paper employs OLS methodology. The result shows that considering the magnitude, 1% increase in GDP is brought about by 22% increase in human capital. This postulates that an increase in allocation to education and health will lead to increase in GDP. The estimated value of R2 (goodness of fit) of 0.80 or 80% and it show that the independent variables explain about 80% of the variation in the dependent variable. The findings have a strong implication on educational and health policy in Nigeria. The study seems to suggest that a concerted effort should be made by policymakers to enhance educational and health investment in order to accelerate growth which would engender economic growth.
Creating a conducive environment for sustainable economic development, improve living standards for all citizens, and secure a brighter future for the nation.
An Empirical Study of Human Capital Management on Organizational EffectivenessYogeshIJTSRD
In terms of philosophy and strategy, the concepts of human capital and strategic human resource management are extremely distinct in todays organizations. Human Capital is an important aspect of maximizing an organizations assets because it provides a long term competitive advantage and increases staff productivity. These individuals should have enough experience, data, creativity, and power to increase client satisfaction and create a competitive edge for the organization. As a result of a magnified economic process and market saturation as a result of the recent recession in various economies around the world, human capital is attracting increased attention. Human capital development is given greater priority in both developed and developing countries in order to speed up the economic process by allocating the necessary time and resources. The findings of the study endorse a strategy of investing in and dominating human resources in order to achieve a competitive edge at the organizational and national levels. To achieve a competitive advantage over rivals, companies have systematically put a high priority on human resources by introducing mandatory interventions such as fostering a data sharing culture, recruiting highly qualified workers, and developing new creative ideas. Dr. G. Balamurugan | A. Dhanvarsha "An Empirical Study of Human Capital Management on Organizational Effectiveness" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-3 , April 2021, URL: https://www.ijtsrd.com/papers/ijtsrd39947.pdf Paper URL: https://www.ijtsrd.com/management/management-development/39947/an-empirical-study-of-human-capital-management-on-organizational-effectiveness/dr-g-balamurugan
This study evaluates the role of capital accumulation on labour productivity growth in Nigeria. Endogenous growth and efficiency wage theories are employed in explaining the determinants of labour productivity. The ordinary least squares method of estimation employed to evaluate the effect of capital accumulation on labour productivity and employment generation in Nigeria over the time frame of 1970-2014. The findings of this study include: education expenditure and capital formation’s impact on labour productivity growth is time dependent; health expenditure positively impacts labour productivity growth; compensation to employee negatively impacts productivity growth in Nigeria.
Human Capital Efficiency and Performance of Listed Manufacturing Firms in Nig...ijtsrd
This study examines the relationship between Human capital Efficiency and performance of listed manufacturing firms in Nigeria. The study analyzed human capital efficiency dimension of human capital efficiency and relational capital efficiency, while performance was analyzed with return on capital employed and earnings per share. Ex post facto research design was adopted for the study. The population of this study was listed manufacturing firms in Nigeria Stock Exchange from 2015 2019. Pearson Product Moment Correlation Coefficient and multivariate regression were statistical tools used and the secondary data were analyzed with the aid of SPSS version 25, we concluded that Human capital efficiency and Relational capital efficiency significantly relates with return on capital employed and earning per shares of listed manufacturing firms in Nigeria in the period of this study and recommend that Nigerian manufacturing firms must develop strategies to invest adequately in different human capital components. Dr. Odogu, Laime Isaac | Obalakumo, Anderson Pereowei "Human Capital Efficiency and Performance of Listed Manufacturing Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-4, August 2023, URL: https://www.ijtsrd.com/papers/ijtsrd59696.pdf Paper Url:https://www.ijtsrd.com/humanities-and-the-arts/education/59696/human-capital-efficiency-and-performance-of-listed-manufacturing-firms-in-nigeria/dr-odogu-laime-isaac
Similar to Human Resource Development, Government Spending and Productivity (20)
This report sheds light on the significance of digital trade integration for Pakistan and selected
Central Asian countries including Afghanistan, Kazakhstan, Tajikistan, and Uzbekistan. Digital trade
integration involves regulatory structures/policy designs, digital technologies, and business
processes along the entire global/regional digital value chain. Digital trade
integration requires free cross-border movement of not only digital products, services, and
technologies but also other manufactured goods, data, capital, talent, and ideas along with the
availability of integrated physical and virtual infrastructure. Hence, digital trade integration requires
the removal of digital trade barriers as well as extensive technology, and legal and policy
coordination between member states.
Countries around the world have actively engaged in establishing new and progressive bilateral and
regional trade agreements to boost trade and economic growth. The significance of digital trade has
increased considerably after the COVID-19 pandemic. Improvement in digital connectivity, ease in
regulations, and skilled workers are key factors to facilitate trade integration and promote the
growth of the e-commerce sector. The report examines the regional trade agreements of Pakistan
and selected Central Asian countries and their relevance for digital trade integration. It also
scrutinizes the challenges faced by the public institutions of Pakistan in the implementation of digital
trade policy. Besides this, the report also observes the challenges faced by SMEs dealing with digital
trade-related products.
The findings show that Pakistan and selected Central Asian countries are at different levels of digital
adoption, including mobile connectivity index and download speed of mobile and broadband.
Kazakhstan and Pakistan have a higher export and import volume compared with other countries.
However, neither country has any major trading partner from the countries selected in this study,
which demonstrates the lack of regional cooperation and the need for regional trade agreements to
boost bilateral and regional trade.
The report discusses the e-commerce laws of Pakistan and selected Central Asian countries, whereas
domestic policies and measures to increase digital trade are also reviewed. The countries are at a
different level in terms of implementing digital trade facilitation measures. Lack of effective
enforcement of intellectual property rights, non-tariff measures, foreign investment restrictions in
digital space, data and information costs, cyber security, and tax policy and administration are all key
policy issues that influence digital trade integration.
The study offers a way forward in which action points are provided for governments, the nongovernmental
sector (notably, business associations and networks), academia and think tanks, and
development partners. #DigitalTradeIntegration
#RegionalTradeAgreements
#EconomicGrowth
#DigitalConnectivity
#EcommerceLaws
The policy brief by the Sustainable Development Policy Institute (SDPI) outlines the urgent need to address the high consumption of Industrially Produced Trans Fatty Acids (iTFA) in Pakistan, which poses significant health risks, particularly in contributing to cardiovascular diseases. Despite being the second-highest per capita consumer of iTFA in the WHO-Eastern Mediterranean Region, Pakistan lacks comprehensive regulations and enforcement mechanisms to mitigate iTFA consumption effectively. The brief recommends a multi-faceted approach involving uniform standards, transparent enforcement, public awareness campaigns, capacity building for regulatory authorities, and collaboration with the food industry to promote healthier alternatives. It highlights the importance of political commitment, intersectoral collaboration, and public-private dialogue to successfully eliminate iTFA from the food supply chain and improve public health outcomes in Pakistan.
In his comprehensive analysis, Vaqar Ahmed highlights the challenges and impediments faced by Pakistan's trade and industrial policies, particularly concerning macroeconomic stability, energy shortages, rising costs, and regulatory constraints. The recent decline in the value of the Pakistani Rupee has further intensified issues for the manufacturing sector. The adverse macroeconomic conditions, including high inflation and a policy rate exceeding 20 percent, have hampered the sector's ability to secure working capital. Large firms' reluctance to operate in special economic zones due to supply-side gaps, coupled with global economic uncertainties, has delayed the next phase of the China Pakistan Economic Corridor (CPEC). Ends with some policy recommendations.
Highlights the country's large and young labor force, with a 1.94% population growth rate and 65.5 million individuals actively seeking work according to the 2017-18 Labor Force Survey. However, the unemployment rate currently stands at 5.8%, with the highest rate (11.56%) among youth aged 20-24. In response, the government launched the Prime Minister's Kamyab Jawan Programme, allocating Rs 100 billion to support entrepreneurship and create employment opportunities for youth. This program encompasses six key initiatives, including the Youth Entrepreneurship Scheme, Hunermand Pakistan Programme, Green Youth Movement, Startup Pakistan, National Internship, and Jawan Markaz. By focusing on skills development, entrepreneurship, and youth empowerment, the government aims to address unemployment challenges and foster a more vibrant economy.
The Khyber Pakhtunkhwa Urban Policy aims to transform KP's urban centers into engines of social, economic, and cultural growth by promoting vibrant communities, sustainable practices, and economic opportunities. It focuses on inclusive development, infrastructure improvement, efficient governance, environmental protection, and cultural preservation, aiming to make cities globally competitive and provide a high quality of life for all citizens. This policy, reviewed every five years, provides a roadmap for urban development in KP, seeking to create a brighter future for its residents.
This study aims to explain the macroeconomic and welfare impacts of changes in indirect taxes brought about in response to COVID-19. We study whether the tax relief provided for in the federal budget for fiscal year 2020-21 was effective in providing relief to private enterprises and the trade sector. We also study whether production subsidies granted during the first wave of COVID-19 were effectively able to support firms in the agricultural sector. This assessment allows us to draw lessons that may be useful for designing tax benefit policies amid future waves of the pandemic or during other emergency times.
The Government of Pakistan has offered export facilitation schemes
to exporters with the objectives to lower trade costs and expand
output. Currently, nearly one dozen export facilitation schemes are
active. They also include those which are run by the Federal Board
of Revenue (FBR). The question of ‘effectiveness’ of such schemes
in boosting Pakistan’s exports has remained a consistent theme of
interest among policymakers, international development partners
and private sector. This policy brief builds on a firm-level survey,
conducted by the Sustainable Development Policy Institute (SDPI),
and is an attempt to understand the effectiveness, overall gains,
and shortcomings of four major export facilitation schemes offered
by the FBR, including Duty and Tax Remission for Exports (DTRE),
Manufacturing Bond (MB), Export Oriented Unit (EOU) and Export
Facilitation Scheme (EFS). The study aims to provide insights on how
best to improve design of Export Facilitation Scheme 2021, which will
absorb all other schemes by the end of 2023.
The Ministry of Commerce in Pakistan unveiled the National Tariff Policy 2019-24 (NTP 2019-
24) in November 2019. The core aims of the policy were to: i) remove tariff-related
anomalies in the short-term to lower businesses’ cost of inputs and increase their
turnover, ii) increase employment generation in the medium-term, and iii) gain
competitiveness and exports in the long-term.
After its announcement, there remains a need to analyze the effectiveness and
impact of the policy. SDPI team conducted primary research to assess the impact
of tariff policy on Small and Medium Enterprises (SMEs) with the help of a firm-level
survey.
This specific survey aims to bridge the evidence gap by providing an in-depth
analysis on the NTP-2019-24 impact in terms of its three prime objectives. Besides,
the study also attempts to understand the business community’s challenges and
expectations vis-à-vis tariff-related matters.
Digital trade is increasing rapidly throughout the world whereas digital platforms and Coronavirus have further enhanced the importance of the digital economy and digital trade. Countries are focusing on promoting digital trade and integration through various measures including free trade agreements and bilateral negotiations. This study examined digital trade as defined by WTO E-commerce work and USITC. The study included the items that come under the definition of digital trade and examined the digital trade volume of Pakistan from 2010-2020 through three-step methodology. This includes the identification of digital trade items based on Harmonized System at a six-digit level, examining trade volume for digital goods, and identification of top ten export and import items along with top ten markets for digital trade. Favorable government policies and measures have helped Pakistan in promoting digital trade flows. However, there is a need to develop information and communication technology infrastructure in Pakistan to flourish trading activities. Furthermore, Pakistan has to reduce the fiscal and trade barriers such as rules and regulations for foreign investment in digital space, data and information costs, and ensure online security and data protection to promote digital trade integration.
by Asif Javed & Vaqar Ahmed
This study presents a pathway for fostering regional digital trade integration through
South-South and Triangular cooperation. Our main study goals include answering the
following questions:
» What are the challenges faced in the digital trade sector of Afghanistan, Pakistan
and Sri Lanka? How can these be overcome through various cooperative models?
» How can inclusive regional and free trade agreements help to overcome barriers
and enable digital trade integration?
» What can Small and Medium Enterprises (SMEs) dealing with digital trade-related
products learn from literature on South-South and Triangular cooperation?
Suggested citation:
Ahmed, V. and Javed, M. Digital Trade Integration: South-South and Triangular
Cooperation in South Asia (unpublished). South-South Idea Paper Series, United Nations
Office for South-South Cooperation (UNOSSC),Washington D.C.New York, 2022.
Pakistan is facing numerous socioeconomic impacts of the Covid-19 pandemic, including on food security. Food insecurity, which is a long-standing issue, has become more visible since the pandemic. Covid-19 Responses for Equity (CORE) partner the Sustainable Development Policy Institute (SDPI) – a leading policy research thinktank – has been supporting the Government of Pakistan to maintain essential economic activity and protect workers and small producers during the pandemic. One notable contribution has been the development of a Food Security Portal, which is being used by the government to better manage food security in the country. It is the first track and trace system from farm to fork for essential food items.
URI
https://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/17619
Citation
Suleri, A.Q.; Ahmed, V.; Ahmad, S.M.; Shah, Q.; Zahid, J. and Gatellier, K. (2022) Strengthening Food Security in Pakistan During the Covid-19 Pandemic, Covid-19 Responses for Equity (CORE) Stories of Change, Brighton: Institute of Development Studies, DOI: 10.19088/CORE.2022.008
Political and socio-economic discussions in Pakistan’s popular discourse are often inward-looking and generally focus on the country itself, or on its relationships to its immediate neighbors (Afghanistan, India, and China). We suggest here that Pakistan is part of a global system, as well. It is influenced not just by its direct neighbors, but also by: international events (war in Ukraine is just one example); by global economic factors (e.g. oil prices, changing terms of trade, or the danger of a global recession); and by various other global governance arrangements (e.g. Financial Action Taskforce and its demands from Pakistan). At the same time, Pakistan is not insulated from the global systemic changes. The global pandemic has overwhelmed the policymakers with possibilities of future epidemics also not being ruled out. In the past migration of people, both incoming and outgoing, has impacted the social fabric.
Likewise, the country is suffering from global warming and the resulting patterns of weather and precipitation. Pakistan is also a player at the international arena and is expected to play a responsible and proactive role at various global governance forums. The speech of the former Prime Minister of Pakistan at the UN General Assembly on September 27, 2019 has indicated regarding this responsibility and highlighted Pakistan’s role in the Cold War, or the engagement of Pakistani soldiers abroad, either in the United Nations peace keeping framework, or bilaterally. While many Pakistanis are aware of some of Pakistan’s international roles and dependencies, and of Pakistan’s image abroad, there is limited discussion about the country’s global role – what it should be? Who are the internal and external actors that shape Pakistan’s role, engagement, influence, and perception abroad? What role does the state and citizens play in deciding Pakistan’s global role? These are some of the questions that our chapter authors aimed to touch upon in this book. A conscious effort has been made to reach out to Pakistanis living and working abroad. Chapters have been invited from such resource persons who are not only Pakistanis but also study Pakistan from abroad and often through various lens external to Pakistan.
Web: https://pakistan.fes.de/e/global-pakistan-pakistan%CA%BFs-role-in-the-international-system
The Covid-19 pandemic and related
restrictions have had profound
socioeconomic impacts worldwide.
Governments have been faced with
responding urgently to mitigate such
effects, especially for the most
vulnerable. Covid-19 Responses for
Equity (CORE) partner Partnership for
Economic Policy (PEP) – a Southernled
organisation which believes that
evidence produced from an in-country
perspective, by empowered and
engaged local researchers and
policymakers, results in better policy
choices – has been working closely
with policymakers in Pakistan to
assess the Covid-19 impacts and the
effectiveness of current and potential
policies. As a result, PEP has helped
introduce tax reforms for the hardest
hit, agricultural subsidies for farmers,
and the reduction of trade tariffs for
struggling businesses.
Marginalization of Researchers in the Global
South in Global, Regional, and National
Economic-Development Consulting
Authors Ramos E. Mabugu | Vaqar Ahmed | Margaret R Chitiga-Mabugu
| Kehinde O. Omotoso
Date February 2022
Working Paper 2022-05
PEP Working Paper Series
ISSN 2709-7331
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the what'sapp contact of my personal vendor.
+12349014282
#pi network #pi coins #legit #passive income
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This presentation poster infographic delves into the multifaceted impacts of globalization through the lens of Nike, a prominent global brand. It explores how globalization has reshaped Nike's supply chain, marketing strategies, and cultural influence worldwide, examining both the benefits and challenges associated with its global expansion.
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As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
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Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
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Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
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Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the what'sapp number of my personal pi merchant who i trade pi with.
Message: +12349014282 VIA Whatsapp.
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A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the what'sapp contact of my personal pi merchant to trade with
+12349014282
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Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just what'sapp this number below. I sold about 3000 pi coins to him and he paid me immediately.
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2. SAARC Journal of Human Resource Development 2013
32
Human Resource Development, Government Spending
and Productivity of Human Capital in Pakistan
Muhammad Abdul Wahab, Dr.Vaqar Ahmed,AsifJaved2
Abstract
The growth experience in South Asia, exhibits how skilled
human capital paved the way for foreign direct investment and
technology transfer in the region. Developing countries, in the
same region, however, felt constraints on growth primarily
associated with institutional factors that kept productivity of
labour and capital at lower levels. Despite investment in
vocational and skills development, health and education, the
multinational enterprises and local investors are reluctant to
engage in longer term investment contracts, in Pakistan.
This study analyses the relationship between endowment of
human capital, government spending on Human Resource
Development (HRD) and productivity of labour in Pakistan. The
recent data from official sources exhibit that a)Pakistan is
performing relatively poorly in HRD indicators in comparison to
South Asian neighbours; b) The Government spending on HRD
as percentage of Gross Domestic Product (GDP) is relatively
lower vis-a-vis South Asian average; and c) Productivity of
labour in Pakistan continues to decline over time. The only
productivity increase is observed in some services sectors over
the past decade. The skills development programs must cater to
the demands of employers in value added agriculture, industry
and services sectors. The vocational institutions also need to
carefully look at their syllabi in the light of overseas
developments, where Pakistani Diaspora has potential for
employment. Greater coordination is required between Federal
and Provincial Governments for eliminating fragmentation of
HRD programs across the country. The governance of public
sector education and skills development institutions may be
improved through allowing private management, as seen in the
Punjab province.
2
M. Abdul Wahab(email: wahab907@gmail.com), Economic
Consultant and Dr. Vaqar Ahmed (email: vaqar@sdpi.org), Deputy
Executive Director, Sustainable Development Policy Institute;AsifJaved
(email: asifjaved04@gmail.com), Research Analyst, Global Research
Insight for Development, Pakistan.
3. HRD Government Spending and Productivity
33
5.1
5.6
3.8
5.86.0
2.4
3.3
2.02.2
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Germany
USA
Japan
Brazil
SouthAfrica
Pakistan
India
Srilanka
Bangladesh
%ofGDP
Education Spending as % of GDP
11.1
17.9
9.3 8.9 8.1
2.5 3.9 3.4 3.7
0.0
5.0
10.0
15.0
20.0
Germany
USA
Japan
Brazil
SouthAfrica
Pakistan
India
Srilanka
Bangladesh
Health Spending as % of GDP
Introduction
HRD plays a crucial role in enhancing firm level productivity
and ultimately, a country's national income. HRD policies
mainly include education, skill development, and health facilities
available to working age population and prudent labour market
laws and regulations (OECD 2012). Each component of HRD
policies is important for developing enabling environment for
domestic and foreign enterprises to lure additional investments as
well as attract technological advancements for increased
competitiveness. The political economic milieu, initial
endowments of factors of production, and institutional stability
across government and non-government institutions play an
important role in enhancing the quality of human capital.
The impact HRD policies provide coherence between programs
at national and sub-national levels. Equally important is to
synchronize the public sector investments in HRD. In the initial
phases of development, these scarce budgetary resources should
be targeted to sectors or regions with high impact in the shortest
possible time.
Figure 1: Education and Health Spending
(asPercentage of GDP)
Source: World Development Indicators, 2013
The above figure shows education and health spending as
percentage of GDP of developed, middle income and developing
economies. In education spending developed economies like
4. SAARC Journal of Human Resource Development 2013
34
Germany, USA and Japan spend around 5.1, 5.6 and 3.8 percent
of GDP respectively whereas, middle income group economies
like Brazil and South Africa spending on education as percentage
of GDP is around 5.6 and 6.0 percent. The developing South
Asian economies like Pakistan, India, Sri Lanka and Bangladesh
spend less than 3.5 percent of their GDP.
In health spending as percentage of GDP Germany, USA and
Japan spent around 11.1, 17.9 and 9.3 percent of GDP, whereas,
Brazil and South Africa spent 8.9 and 8.1 percent of GDP
respectively. In case of Pakistan, India, Sri Lanka and
Bangladesh spending stands at less than 4 percent. One could
observe that the recipe to sustain economic growth at higher
trajectories is by looking into the level of investment in human
capital by the developed economies in comparison with the
developing economies like South Asia.
Table 1: GDP per Capita and Investment in HRD
Country
Countries
by Income
Groups
GDP Per
Capita
current $
Education
Spending (%
of GDP) (A)
Health
Spending
(% of GDP)
(B)
Spending on
HRD (% of
GDP)
C = A + B
Germany High
Income
Developed
Economies
41,863 5.1 11.1 16.1
USA 51,749 5.6 17.9 32.2
Japan 46,720 3.8 9.3 13.1
Brazil Middle
Income
Developin
g
Economies
11,340 5.8 8.9 14.7
South
Africa
7,508 6.0 8.1 14.1
Pakistan
Low
Income
Developin
g
Economies
1,257 2.4 2.5 4.9
India 1,489 3.3 3.9 7.2
Sri Lanka 2,923 2.0 3.4 5.4
Banglade
sh
752 2.2 3.7 6.0
Source: World Development Indicators, 2013
High income economies have a double digit spending in HRD as
percentage of GDP (see Table 1). Even in case of middle income
economies like Brazil and South Africa their spending on HRD
as percentage of GDP is 14.7 and 14.1 percent respectively. The
South Asian economies as shown in the Table 1 are far lower
than these levels.
5. HRD Government Spending and Productivity
35
The next section provides a literature review on HRD, economic
growth and productivity. Section 3 provides a comparison of
HRD indicators in Pakistan and across South Asia. This is
followed by an analysis of sectoral labour productivity in
Pakistan overtime. Section 5 concludes with policy
recommendations.
HRD, Economic Growth and Productivity
Empirical literature has highlighted various dimensions of HRD
which influence work force productivity and its spill over effects
on economic growth. HRD plays an important role in attracting
and encouraging foreign and local investment and technology
transfer. Silva (1997) argued that appropriate human capital goes
hand in hand with economic, trade and investment policies. Both
are interlinked and their effect cannot be separated. It is further
added that returns on human capital are not spontaneous therefore
planning has to be done at the right time to generate effective
results.
Ichniowski et al. (1997) and Wood (1999) emphasized that high
performance work place accompany with good Human Resource
Management (HRM) policies increase the productivity by
motivating workers (see also Bartel,1994). Good HRM policies
contribute towards loyalty and commitments of workers to do
their tasks and willingness to do better job. Arthur (1994) studies
the impact of HR policies on steel industries and found that
productivity level of the mills who have adopted good HR
policies is higher than the industries with no HR policies. Batt
(2002) and Zwick (2002) attributed that high performance work
place has significant effect on firm productivity.
Andries de Grip, IngeSieben (2003) study the impact of HRD in
small pharmaceutical firms and argue that small firms do not
benefited from advance HRM policies, moreover in small firms
personal relation between employer and employees are given
more importance than workers’ productivity levels. Horwitz
(1996) pointed out that adaptation of HRD and Management
approaches at the same time developed efficient labour and
organizational change. Whereas, proper information is significant
for development, monitoring, appraising the efficiency of HRD
and diversity of management.
6. SAARC Journal of Human Resource Development 2013
36
Cheong (2012) study the impact of HRD on economic growth of
Macao and attribute knowledge as vital factor for productivity,
economic growth and employment. Education expenditure
increased considerably which resulted in enhancing educational
skills of workforce. It is also analyzed that workers with lower
educational level are more likely to remain unemployed.
Ranis (2004) argued that Human Development (HD)is an
essential requirement for sustainable growth but it depends on a
specific HD level. In this regard, government policy and public
funding are important elements that put forward a nation beyond
threshold HD level. Targeted government investment comprise of
investment in education, health and improvement in governance.
Afza and Nazir (2007) examined the function of HRD as an
instrument to enhance economic competitiveness in South Asian
region with respect to Pakistan. Their findings show that global
markets have raised economic competitiveness which is a key for
foreign direct investment. Furthermore, knowledge and expertise
of labour force are crucial for nations and should be the policy
target for development and competitiveness. They suggest that
Pakistan can develop its human capital by providing education, in
line with the market demand locally and abroad.
Wahab et al. (2013) study the impact of HRD on remittances for
South Asian economies and their finding shows that south Asian
economies including India, Bangladesh and Pakistan were top
recipient of workers' remittances in 2010. Based on econometric
analysis, it is suggested that an increased stock and quality of
human resources raises remittance inflows, implying the need for
policies to improve education and training.
Sharif et al. (2013) validate that HRD is important factor in
development of Bangladesh. By using econometric analysis their
findings show positive link between HRD and economic growth.
Furthermore, Investment in education shows significant
contribution while research and development expenditures also
play a constructive role.
HRD Patterns in Pakistan and South Asia
Pakistan is home to more than 184 million people and it is
estimated that 17.2 percent people were living below poverty line
in 2007 (World Bank 2009). One could observe significant
7. HRD Government Spending and Productivity
37
decline in poverty from 34 percent in 2002 to 17.2 percent in
2007 but in 2008, due to global financial crisis exports of
Pakistan to EU market significantly declined, aid flows also
reduced and balance of payments was exposed to commodity
market volatilities which resulted in declining foreign reserves,
reduced production and higher unemployment. Pakistan being a
frontline state in the war against terror, faced the problem of
deterioration in law and order, prohibited investors to enter into
longer term investment contracts.
The on-going energy crisis which aggravated after 2007-08 due
to higher oil prices not only discouraged the foreign investor but
also led to closure of substantial proportion of Small and Medium
Enterprises (SMEs) in Pakistan. The SME sector could not
absorb the higher input costs and the overall costs of production,
increased to a level, where unprecedented labour in Punjab and
Sind provinces had to be laid off.
Going forward Pakistan will need to address the short term
irritants like the lack of energy in order to reach its potential
growth rate of 5-6 percent. Beyond this, major structural reforms
are required in order to set the country on a path of higher growth
trajectory where productivity gains can be realized. Investment in
HRD remains one such reform which needs to be coordinated
from the highest tiers of the Government.
It is important that high performance workers should not merely
be seen as economic units of labour. Equally important is to
understand that empowering working age population through
prudent HRD policies, programs and projects results in a grass
roots level social change. Countries such as Vietnam, Cambodia
and Sri Lanka have realized exactly such a phenomenon.
8. SAARC Journal of Human Resource Development 2013
38
Table 2: Pakistan: Macroeconomic Indicators (%)
Indicator 2007 2008 2009 2010 2011 2012 2013(P)
GDP growth 5.5 5.0 0.4 2.6 3.7 4.4 3.6
Agriculture
growth
3.4 1.8 3.5 0.2 2.0 3.5 3.3
Industrial
sector growth
7.7 8.5 -5.2 3.4 4.7 2.7 3.5
Service
sector growth
5.6 4.9 1.3 3.2 3.9 5.3 3.7
Total
investment
(% of GDP)
18.7 19.2 17.5 15.8 14.1 14.9 14.2
Federal tax
revenue(% of
GDP)
9.2 9.5 8.8 8.9 8.5 9.4 10.1
Labour force
(millions)
50.3 51.7 53.7 56.3 57.2 - -
Source: Economic Survey of Pakistan, 2013
Table 2 shows a downward trend in GDP growth rate - a
phenomenon that has serious implications for the poorest of the
poor in the country. Growth is certainly a necessary if not
sufficient condition for poverty reduction. Agriculture sector has
seen volatility owing to recurrent annual floods since 2010.
Industrial growth peaked during 2007-08 but plunged
dramatically to a negative 5.2 percent during 2009.
Growth in non-commodities or services sectors showed bumpy
trends in 2007 around 5.6 percent and experienced a significant
decline in 2009 standing at 1.3 percent. Investment as percentage
of GDP remains one of the lowest in South Asian region. Federal
tax revenue as percentage of GDP reached at 10.1 in 2013 which
is highest in the last 5 years however, dismally low if compared
to the average of developing Asia. The concerning aspect is that
Pakistan has a youth bulge in its population pyramid. The growth
rate of labour force is over 3.5 percent. However, the depressed
GDP growth is not enough to absorb these rising number of youth
in the working age population. This calls for a serious
introspection of HRD and growth policies in Pakistan.
In 2011, it is estimated that 57.8 million people constitutes
Pakistan labour force and among which 3.4 million are
unemployed labour force (Economic Survey 2013).Table 3 shows
9. HRD Government Spending and Productivity
39
Human Development Index values of south Asian economies for
the year 2012. Pakistan HDI value stands around 0.51 which is
low in comparison with India and Sri Lanka.
Table 3: Human Development Index 2012
Country Human Development Index
Bangladesh 0.51
India 0.55
Nepal 0.46
Pakistan 0.51
Sri Lanka 0.71
South Asia 0.55
Source: Human DevelopmentReport 2013, UNDP
Table 4 shows that in Pakistan primary education completion rate
is very low as compared to other regional economies like Bhutan,
India, Maldives, Nepal and Sri Lanka. Total net enrolment in
primary education in Pakistan is very low it stands around 66.4
percent which is inadequate in comparison with other regional
economies. Adult literacy rate in Pakistan stands around 55.5
percent which is low in comparison with India, Maldives, Nepal
and Sri Lanka.
Table 4: Education in South Asia 2009 (%)
Country/Indicators
Primary
education
completion
rate
Total net
enrolment
ratio in
primary
education
Adult literacy rate
Bangladesh 60.5 89.6 55.9
Bhutan 88.5 88.4 52.8
India 94.8 95.5 62.8
Maldives 119.4 96.2 98.4
Nepal 70.0 73.6 59.1
Pakistan 61.1 66.4 55.5
Sri Lanka 97.5 95.1 90.6
South Asia 78.8 86.4 67.9
Source: Asian Development Bank Online Database,2011
10. SAARC Journal of Human Resource Development 2013
40
Figure 2: Mean Year of Schooling- South Asia 2012
Source: UNDP, 2013
Figure 2 shows average year of schooling of South Asian
countries. Overall in South Asia, average year of schooling is 4.8
years. Among the South Asian countries, in Sri Lanka mean year
of schooling is reported at 9.3, in Pakistan, it is 4.9 which is
better than Afghanistan (3.1), India (2.3) and Nepal (3.2).
Table 5: Skill Development Indicators- South Asia
Country
Higher education
and training (rank)
Quality of
education
system3
Local availability of
specialized research
& training services
Bangladesh 126 94 127
Nepal 131 116 133
India 85 39 51
Pakistan 123 87 97
Sri Lanka 62 44 46
Source: Global Competiveness Report, 2010-11, World Economic
Forum
3
Imparting quality and new education with higher education means the
increase in the enrolment from secondary level to the college or
university level.
3.1
4.8
2.3
5.8
3.2
4.9
9.3
0
2
4
6
8
10
Yearsofschooling
11. HRD Government Spending and Productivity
41
Table 5 shows skill development indicators of south Asian
countries. In higher education and training ranking, Pakistan
ranked at 123, showing its performance poor in comparison with
India and Sri Lanka, ranked at 85 and 62 respectively. In terms of
quality of education Pakistan ranked at 87, again, performing
poor in comparison with India and Sri Lanka which are ranked at
39 and 44. In local availability of specialized research and
training services, Pakistan ranked at 97 which are far behind the
regional economies like India and Sri Lanka which are ranked at
51 and 46.
Table 6: Health Indicators of South Asian Countries
Countries Bangladesh Bhutan India Nepal Pakistan
Sri
Lanka
Mortality
rate, infant
(per 1000 live
births)
33.1 35.7 43.8 33.6 69.3 8.3
Life
expectancy at
birth, total
(years)
69.9 67.5 66.0 67.5 66.3 73.9
Population
growth
(annual %)
1.2 1.7 1.3 1.2 1.7 1.0
Population
(million)
154.7 0.7 1236.7 27.5 179.2 20.3
Birth rate,
crude (per
1,000 people)
20.6 20.2 21.0 22.3 26.2 18.3
Death rate,
crude (per
1,000 people)
5.8 6.6 7.9 6.8 7.0 7.0
Health
expenditure,
total (% of
GDP)
3.7 4.1 3.9 5.4 2.5 3.4
Fertility rate,
total (births
per woman)
2.2 2.3 2.5 2.5 3.3 2.3
Source: World Development Indicators,World Bank, 2013
12. SAARC Journal of Human Resource Development 2013
42
Table 6 shows health indicators of South Asian countries. In
Pakistan infant mortality rate stands around 69.3 per 1000 live
births which are the highest among the South Asian countries.
Annual population growth rate of Pakistan stands around 1.7
percent which is very high. If country unable to control its
population growth then it is projected that the population may
cross 342 million by the end of 2050 and country will become
4th
largest nation by population. Pakistan crude birth rate stands
around 26.2 per thousand people which are very high in
comparison with other South Asian countries. While crude death
rate in Pakistan is reported at 7 which is better than India but
worst in comparison with Bangladesh, Bhutan and Nepal.
Fertility rate is reported at 3.3 which, is very high among the
South Asian countries. It is observed that the health expenditures
as percentage of GDP,is 2.5 percent which is very the low in
comparison with Bhutan, Bangladesh, India, Nepal and Sri
Lanka. Poor performance of health indicators may be attributed
to low expenditures in health as percentage of GDP.
Table 7:Skills Development in South Asia
Countries
Percent of
firms offering
formal
training
Proportion
of unskilled
workers
(out of all
production
workers)
(%)
Percent of
firms
identifying
labour
regulations as
a major
constraint
Percent of firms
identifying an
inadequately
educated
workforce as a
major constraint
Afghanistan
(2008)
14.6 29.9 4.5 18.0
Bangladesh
(2013)
21.9 21.3 3.4 15.7
Bhutan
(2009)
29.9 ... 16.4 12.6
India
(2006)
15.9 36.3 9.2 14.5
Nepal
(2013)
31.9 15.2 2.7 9.1
Pakistan
(2007)
4.5 19.1 6.4 8.1
Sri Lanka
(2011)
13.1 14.6 12.7 16.0
South Asia 19.3 20.0 7.7 13.2
Source:World Bank Enterprise Survey, 2013
Table 7 shows that in Pakistan 4.5 percent of the firms offered
formal trainings to their employees in the year 2007. There are
13. HRD Government Spending and Productivity
43
19.1 percent unskilled workers out of all production workers, in
India unskilled worker are reported high at 36.3 percent in the
year 2006 where as in Sri Lanka and Nepal it is reported at 14.6
and 15.2 percent in the years 2011 and 2013 respectively. In
Pakistan 6.4 percent of the firms believe that labour regulations is
a major constraint in their productivity, this percentage is high in
Bhutan which is 16.4 percent, however years of figures are
different i.e. 2006 and 2009 respectively. In Pakistan 8.1 percent
of the firms believe that lack of educated workers is major
constraint in productivity.
Labour Productivity in Pakistan
Labour productivity is an important determinant of long run
economic growth. It increases the economy-wide average wage
rate and helps to mitigate poverty. It brings greater efficiency in
the goods market and encourages foreign as well as local
investors to invest more towards skills development of their
employees. Eventually the knowledge and skills paradigm
defines the competitiveness levels across firms and countries.
Theoretically labour productivity can be enhanced by investing in
education, health, vocational trainings and through prudent labour
market laws and policies. Equally important is to have
institutional reforms, in place that help in curtailing the brain
drain in the developing economies like South Asia.
14. SAARC Journal of Human Resource Development 2013
44
22
24
26
28
30
Agriculture
0
20
40
60
80
Manufacturing
0
500
1000
1500
2000
Mining
0
5
10
15
20
25
Construction
Figure 3:Labour Productivity "per hours" Worked, by all
Sectors (constant factor cost in PKR)
Labour Productivity "per hours" Worked, in
DifferentSectors
(constant factor cost in PKR)
38
40
42
44
46
48
50
52
2000 2002 2004 2006 2007 2008 2009 2010 2011
All sectors
15. HRD Government Spending and Productivity
45
35
40
45
50
55
Wholesales and retail trade
0
1
2
3
4
Public Spending on Education (% of GDP)
Linear (Public Spending on Education (% of GDP))
Source: Pakistan Labour Force Survey, 2013
Figure 4 shows that over the last one decade there is declining
trend in education and health expenditures which results in
declining labour productivity in all the sectors of the economy.
Declining trends in labour productivity push the country toward
low economic growth equilibrium.
Figure 4: Investment in HRD (as Percentage of GDP)
0
100
200
300
2000
2002
2004
2006
2007
2008
2009
2010
2011
Electricity, gas and water
16. SAARC Journal of Human Resource Development 2013
46
Conclusion
Pakistan economic growth is dwindling over the time which may
be attributed to global financial crisis of 2008, floods of 2010,
poor law and order situation due to front line ally in war against
terrorism, declining trend in FDI, growing debt to GDP ratio and
low tax base. Study has highlighted the fundamental need of
HRD for fast growing population of the country. Over the period,
Pakistan has performed poor in human capital development in
comparison with regional economies like Bangladesh, India, Sri
Lanka and Nepal. Pakistan's poor performance in HRD indicators
are due to decline in investment in human capital over the time.
The skills development programs must cater to the demands of
employers in value added agriculture, industry and services
sectors. The vocational institutions also need to carefully look at
their syllabi in the light of developments overseas, where,
Pakistani Diaspora has potential for employment. Greater
coordination is required between Federal and Provincial
Governments for eliminating fragmentation of HRD programs
across the country. The Governance of public sector education
and skills development institutions may be improved through
allowing private management, as seen in the Punjab province.
Apart from the above, there are major governance reforms
required in HRD. After the 18th Constitutional Amendment (in
2011) education, health and vocational training have become
provincial subjects to the extent of funds management and actual
implementation on-ground. However, it is important to note that
this devolution does not excuse the Federal Government from its
policy and planning role in HRD. Since2011, the Federal
0
1
2
3
4
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Health Expenditure (% of GDP)
Linear (Health Expenditure (% of GDP))
17. HRD Government Spending and Productivity
47
Government has not been able to engage the Provincial
Governments pro-actively on HRD promotion. It is of utmost
importance that the Council of Common Interests, a
constitutional body that has responsibility of overseeing
implementation of economy-wide national level reforms, should
put forward a consensus based plan for HRD uplift in a manner
that it becomes binding on all provincial Governments. The
National Planning Commission can be designated as the
coordinator for this purpose.
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