Economic Growth

By Usama Ehsan Butt

Introduction: Quotations
Agriculture:
• Investments in the agriculture are the best weapons against hunger and poverty, and they have made life better for billions of people.
-Bill and Melinda Gates Foundation

• Without access to modern farming techniques or machinery, farmer’s livelihood hinge precariously on a changing environment that
they are struggling to understand.
-U.S Agency for International Development

• The key lies in empowering millions of smallholder producers and landless workers who form the backbone of rural economies in
most developing countries.
-James Dargie, Former Director IAEA

• Science and technology coupled with improved human capital have been powerful drivers of positive change in the performance and
evolutions of smallholder systems.
-FAO, UN
Self Interest:
• It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard for their
own interest.
-Adam Smith

Trade:
• Free trade, one of the greatest blessings which a government can confer on a people, is in almost every country unpopular.
- Lord Thomas Macauley

• No nation was ever ruined by trade.

- Benjamin Franklin
Labor:
• We have one asset, and that's people.
- Sylvia Ostry

• When men are employed they are best contented.

- Benjamin Franklin

Inflation:
• The first panacea for a mismanaged nation is inflation, the second is war. Both bring temporary prosperity; both
bring permanent ruin. But both are the refuge of political and economic opportunists.
- Ernest Hemingway

• Nothing so weakens a government as inflation.

- J.K. Galbraith

• The best way to ruin a country is to debauch its currency.

- Vladimir Lenin

Fiscal Policy
• I have observed that we all get the same amount of ice. The rich get it in the summertime and the poor get it in the
winter.
- Bat Masterson

• As capital accumulates, the lot of the laborer must grow worse.

- Karl Marx

Monetary Policy:
• Neither a state nor a bank ever have had unrestricted power of issuing paper money without abusing that power.
- David Ricardo
Bird’s Eye View
Causes/Problems
I. Fiscal Deficit
II. Small Tax Net; Low Income Tax, Higher Indirect Tax
III. Unplanned Government Spending
IV. Low Spending on Revenue Generating Activities
V. Politicized Subsidies
VI.Monetary Policy
VII.High Inflation
VIII.Dwindling Exchange Rate
IX. High Interest Rate
X. Debt Servicing
XI.Energy Crisis
XII.High Dependence on Hydroelectricity
XIII.Slow Growth in Alternative Energy
XIV.Import of Fuel
XV.Corruption & Energy Theft
XVI. Law and Order Situation
XVII.Pakistan as a Security State
XVIII.
White Collar Crime
XIX.Money Laundering
XX.Street Crime
Causes/Problems
I. Political Instability
II. Constitutional Crisis
III. Coalition Governments
IV. Institutional involvement in politics
V. Horse Trading
XXVI.Bad Governance
XXVII.
Low Accountability
XXVIII.
Institutional Conflicts
XXIX.Political scape-goating
XXX. Low Transparency
XXXI.Balance of Payment/Trade Deficit
XXXII.
Luxury Imports
XXXIII.
Low Exports; Low Value-Added Exports
XXXIV.
Import of Fuel
XXXV.Raw Material Import for Industries
XXXVI.
Natural Disasters/Climate Change
XXXVII.
Insufficient No. of Dams
XXXVIII.
Lack of Pre-emptive Measures
XXXIX.
Infrastructure damage
XL.Loans for Post-Disaster Reconstruction
Causes/Problems
XXVI.Lagging Social Indicators
XXVII.Literacy Rate
XXVIII.Women Empowerment
XXIX. Wealth Disparity
XXX. Unemployment
XXXI.Informal Economy
XXXII.Undocumented Economy
XXXIII.Tax Evasion
XXXIV.Few incentives for documentation
XXXV. Red tape evasion
Solutions
I. Fiscal Measures
II. Wide Tax Net
III. Progressive Taxation
IV. Super Tax from High Income Individuals
V. Planned Spending
VI.Monetary Measures
VII.Stable Exchange Rate
VIII.Low Interest Rate
IX. Anti-Inflationary Policies
X. Loans for Industries
XI.Foreign Investment
XII.Reinstating EPZs and SPZs
XIII.Foreign Direct Investment
XIV.Foreign Portfolio Investment
XV.Evoking Foreign Investment in PSX
XVI. Development in Energy Sector
XVII.Alternative Energy Sources
XVIII.
Privatization of Energy Production
XIX.Improving Hydroelectric Capacity
XX.Encouraging Home Solar Electric Systems
Solutions
I. Modernization of Ports
II. Greater Inflow of Customs Revenue
III. Global Connectivity
IV. Greater Ship Hauling Capacity
V. Potential for Greater Exports
VI.Human Capital
VII.Vocational Training
VIII.Small and Medium Enterprise
IX. Skilled Labor Export
X. Services Serctor
XXXI.Privatization
XXXII.
Greater Efficiency
XXXIII.
Multinational Experience Sharing
XXXIV.
Improvement of Debt Incurring Firm
XXXV.Greater Interest of Global Investors
XXXVI.
Technology/ R&D
XXXVII.
Innovative Solutions
XXXVIII.
Improved Agricultural Practices
XXXIX.
Planned/Focused Economic Growth
XL.Greater Automation
Solutions
XXXI.Industrialization
XXXII.Greater Production
XXXIII.Globally Competitive
XXXIV.Quality Control
XXXV. Uniform Production
XXXVI. IT Sector
XXXVII.Self-sufficiency in IT
XXXVIII.
Pivotal for Future Growth
XXXIX.National Defence
XL. Employment opportunities
XLI. Education
XLII. Female Education
XLIII. Rural Education Programs
XLIV. Scholarships as Invesetment
XLV. Higher Literacy Rate
XLVI. Women Empowerment
XLVII.Wealth Disparity
XLVIII.Eradication of Corruption
XLIX. Economic Malpractices
L. Underhand Practices
LI. Kickbacks and Illegal Commissions
LII. Compromise on Quality Control
Thank You