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Poverty
Poverty
POVERTY IN PAKISTAN
Group Members
Nabila Amin (07108155) Hiba Riaz (07108159) Anum Mir (07108157)
Presented to:
ABOUT POVERTY IN PAKISTAN Pakistan is a poor country. Its economy is facing fluctuations now a day. At the time of independence Pakistan has very low resources and capital, so the processes of progress were very slow. Unfortunately the politicians of Pakistan were all not well aware of modern global system and the progress processes and the needs of country.
Poverty in Pakistan
ABOUT POVERTY IN PAKISTAN Due to bad policies today Pakistan is facing a lot of problems. The continuous failure of policies leads the people of country to miserable conditions. The major problem in the country is poverty which is becoming the cause of crime and social disorder.
CAUSES OF POVERTY
It is difficult to point out all causes of poverty in Pakistan but the major causes of are given below: 1. Government Policies: Government is not well aware of present conditions of country. The policies of government are base on the suggestions of officials which do not have awareness about the problems of a common man. They implementation the policies without studying its after effects.
2. Corruption: Another cause of poverty is corruption. There is not morality and every one is trying to earn more and more by using fair and unfair means. Only one relationship that is exists in society is money. One has to pay a heavy cost to get his right. Law and order conditions are out of control and institutions are failed to provide justice to a common man. In this whole scenario some corrupt people has been occupying the resources and common man is living in miserable conditions.
CAUSES OF POVERTY
CAUSES OF POVERTY
3.Division of Agricultural Land:
Pakistan is an agricultural country. Most of people are farmers by profession. One has land which is fulfilling the needs of his family but he has to divide the land into his children when they got young. After division the land is not sufficient to support a family. Now the families of his children are suffering and spending their lives below poverty line.
CAUSES OF POVERTY 4. Materialism: In our society social bonding are gradually becomes thinner and thinner. A race of material object has been started even no one tried to understand the problems of others. Every one is gradually changing from human to a bioman. At last every one has lose his trust on others which effect our social and economic system and it is another cause of poverty.
CAUSES OF POVERTY
5.Lack of Education:
The literacy rate of Pakistan is very low. Most of people do not have any concept about the modern earning sources. Most people are unable to adopt technology for their business needs, thats why business do not meet international standards and results as decrease in revenue which lead the society to poor financial conditions.
CAUSES OF POVERTY
CAUSES OF POVERTY
6. Large Scale Import:
The import of Pakistan is greater than export. Big revenue is consumed in importing good every year. If we decrease import and establish own supply chains from our country natural resources the people will have better opportunities to earn.
CAUSES OF POVERTY
7. Law and Order:
There are lot of problems regarding law and order. Terrorist attacks create uncertainty in stock markets and people earning from stock are getting loss due to which the whole country faces uncertain increase in commodity prices.
CAUSES OF POVERTY
Foreign investor comes to local markets. They invest millions of dollars in stock markets and stock market gets rise in index. Then the investor withdraws his money with profit and market suddenly collapses. The after math always be faced by poor people.
CAUSES OF POVERTY
9. Privatization:
Government is unable to manage the departments and country has low reserve assets. So the meet the requirements some companies run by government are sold to foreign investors. The commodities or services provided by the companies are becoming costly.
CAUSES OF POVERTY
10. Moral Culture: The main reason for poverty is the social dishonesty and irresponsible behaviour of people. Every one is trying to get rich by using unfair means. A shop keeper is ready to get whole money from the pocket of customer. This irresponsible behaviour continuously increases and produces loss for county.
CAUSES OF POVERTY
IMPACT OF GLOBALIZATION ON POVERTY IN PAKISTAN What are the factors responsible for this outcome? 1. First and foremost, economic growth rate has declined from the historical level of 6 per cent to 4 percent and with population growth rate of almost 2.5 per cent and more, the increase in per capita incomes has been insignificant.
2. The poor performance on economic growth is accompanied by rising income inequality and high open unemployment rates. Overall unemployment is estimated at well over 10 per cent and underemployment even higher. The Gini coefficient has risen.
IMPACT OF GLOBALIZATION ON POVERTY IN PAKISTAN 3. The high fiscal deficits of public sector inherited from the 1980 have not allowed much space for undertaking redistributive policies and poverty oriented.
5. In an era of growing globalisation, financial integration and technological revolution of the 1990s Pakistan has not benefited very much. While the world exports were growing at 5 per cent annually during the last five years Pakistans exports have remained stagnant. Foreign direct investment flows to Pakistan have remained modest in relation to the size of its economy and spurt in information technology has by passed the shores of Pakistan so far. On the other hand, we have expanded our external debt burden to a level that is beyond our full servicing capacity.
It is this particular area of liberalisation of trade and investment regime, financial integration and technological revolution which together constitute the key elements of globalisation that I will focus today. What are the transmission channels for globalisation to poverty reduction?
At the first level globalisation aids economic growth At the second level, rapid economic growth of the right pattern does help alleviate poverty.
IMPACT OF GLOBALIZATION ON POVERTY IN PAKISTAN This transmission at the first level takes place through four distinct channels: (a) through international trade (b) through international capital flows (c) through international labour flows and (d) technological change particularly
(a) International trade: In the medium to long term, trade will help the poor, since labour is the primary asset of the poor which is used in the exportable of developing countries. Increased trade will result in gains for relatively abundant factors (labour in most low-income countries).
Consumers get cheaper products (nearer world prices), at least in the medium-to long-term. Short-term lay offs and retrenchment of labour in inefficient industries.
(c) International labour flows: In both the long and short-run, international migration generally helps the poor. With more trade and capital flows, the need for labour to move is, however, lower. Race to bottom in the developed world.
(d) Technological Change: Assimilation and adoption of technology improves efficiency in resource use. New products and new processes broaden the choice of consumers Solutions are found for gains in productivity.
The global growth recession is projected to cause inflation to ease. The rapid rise of food and energy prices over the course of 2007 and the first half of 2008, coupled with tight capacity in many countries (following years of very fast growth fueled by ample liquidity) caused headline and core inflation to pick up throughout the world. Headline inflation increased by 5 percentage points or more in most developing countries, and more than half of developing countries had inflation rate in excess of 10 percent by the middle of 2008.
Poverty cause population explosion and illiteracy forcing for economic suicides
40% of Pakistans population lives below poverty line and any rise in inflation effects this group the most. But it is the same group that has been ignoring the fact that small families can help them cope there problems more effectively.
Poverty cause population explosion and illiteracy forcing for economic suicides
Today the rising food price is affecting almost 77 million people in Pakistan. And with this figure in place it can be stated that 17 million people are food insecure. There is a need of more than 23.3 million dollars to spend on the daily needs of the poor people.
Poverty cause population explosion and illiteracy forcing for economic suicides
Due to the poor performance of usual indicators of economic stability the country is dependent on external financial resources. 1990 is considered as a lost decade in economic history of Pakistan yet it saw a reviving phase which too did not last for long. In order to avoid such results and to tackle the menace of poverty, the matter in question is growing population and low literacy rate in Pakistan.
Poverty cause population explosion and illiteracy forcing for economic suicides
With 40% living below poverty line, growing population with a rate of 2.6 % and unemployment rate almost 12% are enough to exhaust economic resources. In order to have better per capita income and palliate poverty, the rising trends of population growth must be controlled.
Poverty cause population explosion and illiteracy forcing for economic suicides
Poverty cause population explosion and illiteracy forcing for economic suicides
Education trends based on specialized fields have to be encouraged. Economic experts say that if these adverse trends continue the economic downfall in Pakistan will accelerate its pace in near future.
The focus on human development indicators in the diagnostics highlights the need to expand access to and improve governance of service delivery. Given that vulnerability is a key concern in Pakistan, the staffs also welcome the focus on transitory poverty and its clear links to the fourth pillar of the strategy, namely targeting the poor and the vulnerable.