Lahore School of Economics Convocation 2014
January 25, 2014
Lahore School of Economics’ Eleventh Annual Convocation was held at the main campus on Jan 25, 2014. Dr. Shahid Amjad Chaudhry, the Chairman and Rector Lahore School conferred degrees and awards to graduating students.
In his welcome address, Dr. Shahid Amjad Chaudhry highlighted the role of Lahore School of Economics during the last two decades (since its founding in 1997). The Lahore School today has four Faculties and Departments – The Faculties of Economics and Business Administration and the Departments of Social Sciences and Environmental Sciences and Policy. It has also three Centres – the Centre for Mathematics and Statistics, the Centre for Media Studies Art and Design, the Centre for Research in Economics and Business – and the Graduate Institute of Development Studies. The Faculties, Departments and Institute offer PhD, MPhil, Masters (including MBA) and Bachelors Programmes.
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posted by S A J Shirazi @ 1/25/2014 06:19:00 PM,
Lahore School Convocation
January 11, 2014
Lahore School of Economics’ eleventh Annual Convocation will be held at the main campus on Jan 25, 2014. Dr. Shahid Amjad Chaudhry, the Chairman and Rector Lahore School will confer degrees and awards upon graduating students.
Students are advised to register for the convocation with respective program offices.
Labels: Convocation
posted by S A J Shirazi @ 1/11/2014 11:00:00 AM,
South Asian Economic Students Meet 2013
Pakistan hosted South Asian Economic Students Meet 2013. It was jointly organized by Lahore School of Economics and Lahore University of Management Sciences.
Dr Shahid Amjad Chaudhry, the Rector Lahore School welcomed international delegates to Lahore School of Economics on December 26, 2013. Earlier, students from South Asian countries took part in a Panel discussion on the topic of Political Economy of Urbanization which was moderated by Dr. Naved Hamid. The Budding Economist event was judged by South Asian country representatives and Dr. Azam Amjad Chaudhry Dean Department of Economics, Lahore School of Economics served as judge from Pakistan. A Quiz competition was also held.
Read more »Labels: International Economy, Students
posted by S A J Shirazi @ 1/11/2014 08:30:00 AM,
Provincial Economic Development: Performance, Challenges, and the Way Forward
Khalid Ikram*
1. Introduction
Analyses of economic development in Pakistan have traditionally followed a “top-down” approach. They examine the behavior of macroeconomic indicators for the country as a whole, referring only in a general, even cursory, manner to the trajectories of each province, and even more summarily to the policy issues, constraints, and opportunities that confront the different provinces. The implicit attitude—that it is the federation as a whole rather than the federating units that matter—is so firmly embedded in the official mindset that, even after 65 years of Pakistan’s existence, the authorities do not produce official statistics of province-level gross domestic product (GDP), investment, savings, exports, imports, labor productivity, and other key economic indicators.
2. The Importance of a Province-Level Approach
Why is a province-level approach important? The issue is not merely of academic interest. It is necessary to strengthen studies at the province level, because policies to address questions of employment, poverty, and perceived deprivation, and to improve the delivery of key services are more effective if the perspective is as close to the ground as possible.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/11/2014 08:00:00 AM,
Institutions, Economic Growth, and Participatory Development
Akmal Hussain*
1.
Introduction
This chapter provides a new perspective, located in institutional
economics, on the nature of the structural constraints to achieving sustained
economic growth in Pakistan and overcoming poverty. It argues that the
fundamental factor underlying the failure so far to embark on the process of
sustained economic growth is the economy’s rent-based institutional structure
and associated patron–client-based governance model.
The
institutional structure generates rents for a small coalition of elites by
restricting competition and excluding the majority of people from the process
of saving, investment, and high-wage employment. The consequent narrow base of
economic growth is unequal; it is also incapable of being sustained because of
lack of incentives for competitive efficiency and innovation on one hand and a
low savings rate and export growth on the other. This chapter argues that
sustainable economic growth can be achieved through an institutional change
whereby the process of saving, investment, productivity increase, and income
generation can be broad-based to include the poor and the middle classes.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/11/2014 12:00:00 AM,
Beyond the Poverty Line: A Multidimensional Analysis of Poverty in Pakistan
January 10, 2014
1.
Introduction
The issue of
poverty is both simple and complex: at one level, the implicit or explicit
objective of most economic policymakers in developing countries is to reduce
the levels of poverty in a country; at another level, the tools that should be
used are constantly open to debate. The debate in almost all developing
countries concerns the correct policy mix between those that target economic
growth, which have the potential to reduce poverty as overall income levels
rise, and those policies that target poverty directly, such as social safety
nets or income transfers.
There is
little question that long-term growth reduces poverty, but in a country such as
Pakistan, where growth is sporadic at best, the question that arises is what
can be done to reduce poverty for those who will not benefit from growth for
years or even decades. If we add to this the fact that development has been
devolved to the provinces in Pakistan after the 18th Constitutional Amendment,
the future of poverty alleviation initiatives is quite simple: Either we
explicitly acknowledge that the state is only concerned with economic growth
and wait for growth to reduce poverty—while pursuing intermittent and
idiosyncratic poverty interventions that assist the poor but do little to move
them out of poverty—or we clearly focus the limited resources of the state on
explicitly targeted poverty interventions.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/10/2014 12:00:00 AM,
The Role of the Firm
January 09, 2014
Eric Manes*
1.
Introduction
This chapter on
the Pakistani firm describes the microeconomic factors underpinning economic
growth and wealth creation, focusing on enterprise-level analysis.
Notwithstanding the key role of the firm highlighted in the chapter, data at
the firm level is difficult to obtain and even more problematic to analyze.
While the statistical issues associated with enterprise-level analysis in
Pakistan are beyond the scope of this chapter, it is important to note up front
the various limitations of the firm-level data available and the caveats
stemming from firm-level analysis.
The Census of
Establishments for 2005–07 (Pakistan Bureau of Statistics, 2007), gives a
relatively clear picture of the family of Pakistani firms: many small, locally
focused firms exhibiting varying degrees of formality and market participation,
coexisting with relatively few, large formal firms (often multi-product
conglomerates that account for the bulk of production, exports, and higher-wage
employment). Only 5 percent of a total of almost 3 million establishments
surveyed employed more than five persons at that time. In manufacturing, the
figure is similar at 91 percent of the half-million firms surveyed, with only
1,100 of these establishments reporting employment of over 50 workers.[1]
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/09/2014 12:00:00 AM,
A Growth Vent Anchored in History and Geography
January 08, 2014
Ijaz Nabi*
1.
Introduction
In explaining economic growth, economists invariably turn to analytical
frameworks such as the Harrod-Domar growth model and its many extensions (e.g.,
Solow, 1956). The main drivers of growth in such models are capital, labor, and
more recently, knowledge (Romer, 1990). These models are useful in that they
allow us to separate out growth arising from an increase in capital and labor,
from productivity-led growth associated with the quality of overall economic
management. This separation is useful because it brings into focus the
efficient use of available resources rather than an insatiable quest for
ever-more investment.
Another approach is to look at episodes of rapid and sustained economic
growth and identify the “big ideas” (vents for growth) that have made them
happen. These ideas stimulate, borrowing from Keynes, the “animal spirits” and
result in both higher investment as well as higher productivity growth. The
discussion presented in this chapter takes this approach, arguing that Pakistan
has enjoyed several episodes of rapid economic growth since 1947 that are
associated with changes in technology, institutions, and legal systems that
support the rolling out of a big idea (growth vent). Those growth vents have
run their course. Pakistan now has to seek a growth vent that results in
geographically balanced growth and can thus be sustained politically for a
prolonged period.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/08/2014 12:00:00 AM,
The Opportunities and Pitfalls of Pakistan’s Trade with China and Other Neighbors
January 07, 2014
Naved Hamid* and Sarah Hayat**
1.
Introduction
There is increasing recognition in Pakistan that regional trade could
be an important driver of growth for the country. However, much of this debate
has focused on India–Pakistan trade.[i] While,
undoubtedly, trade with India could give a tremendous boost to Pakistan’s
economy, there are other neighbors with whom trade could be equally important.
We propose to look at this neglected aspect of regional trade and show that
promoting trade with the rest of Pakistan’s neighbors could have a significant
positive impact on the country’s growth over the next decade or more. Trade
with India and trade with the other neighbors are two sides of the same
coin—promoting trade with both would have tremendous synergies. The overall
impact on Pakistan’s economy could well be to raise the trend growth rate for
the next decade or so by 2 to 3 percentage points above the historical trend
growth rate of 5.5 percent per annum.
Section 2
provides a review of the trends in growth in trade, particularly exports in the
last decade. In the next three sections, we discuss trends in exports at the
aggregate and commodity level, as well as the pitfalls, opportunities, and
appropriate policies to promote exports with respect to Pakistan’s three
largest trading partners of its neighboring countries, i.e., China, the United
Arab Emirates (UAE), and Afghanistan. Section 6 briefly reviews the potential
for trade with Central Asia, overland through Afghanistan. Section 7 concludes
the chapter.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/07/2014 03:19:00 PM,
The Prospects for Indo-Pakistan Trade
Hafiz A. Pasha* and Muhammad Imran**
1.
Introduction
Trade between India and Pakistan has been fundamentally influenced by
factors that are not purely economic. At the time of Partition in 1947, both
economies were heavily interdependent, with the share of the Indian market in
Pakistan’s exports at close to one fourth, and over half of Pakistan’s imports
coming from India. Thereafter, bilateral trade has had a chequered history.
Trade virtually ceased after the wars of 1965 and 1971.
Some positive steps have been made since 1995, when India announced its decision
to grant most favored nation (MFN) status to Pakistan, and the latter established
a positive list with respect to imports from India. The signing of the South
Asian Free Trade Agreement (SAFTA) in 2004 was a major step forward in the
eventual establishment of a customs union in the region. Recently, Pakistan
announced its potentially landmark decision to grant MFN status to India by the
end of 2012. In the interim period, a restricted positive list has transitioned
to a negative list, which opens up a large percentage of tariff lines for
imports from India. Further, the two countries have agreed to simplify customs
procedures and facilitate the process of goods certification. India has also
announced that it welcomes investment by resident Pakistanis and companies.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/07/2014 10:21:00 AM,
An Analysis of the Remittances Market in Pakistan
January 06, 2014
1.
Introduction
Remittances to
developing countries sent through official channels were estimated at USD 406
billion in 2012 (World Bank, 2012). This represents a growth of 6.5 percent
over 2011, and is projected to rise by 8 percent in 2013 and 10 percent in
2014. Current remittance flows are over three times the amount of official
development assistance (World Bank, 2012). In Pakistan, remittances through
official channels have grown from just around USD 1.5 billion in 1997/98 to
slightly over USD 13 billion in 2011/12 (State Bank of Pakistan, n.d.; see also
Table 12.1). In the first six months (July–December 2012), they were slightly
over USD 7 billion—an increase of 12 percent over the corresponding period in
the previous year (July–December 2011).
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/06/2014 10:19:00 AM,
Benefiting from Foreign Direct Investment
January 02, 2014
Khalil Hamdani*
1.
Introduction
It is commonly
held that foreign direct investment (FDI) has played an insignificant role in
Pakistan’s economic development.[1] Certainly, the aggregate data supports this view: FDI
inflows have accounted for less than 1 percent of gross domestic product (GDP)
in most of Pakistan’s 60-plus years, and less than 4 percent in the peak year
of 2007 when the country ranked among the 10 largest recipients of FDI in Asia.[2] At the same time, FDI has been more important in
Pakistan than in India: annual inflows have been larger in most years from 1947
to 1993, and even now, while our larger neighbor receives four times more inflows,
the share of FDI in capital formation is three times as large in Pakistan. Such
comparison, while superficial, suggests the relevance of FDI.
This chapter considers
the role that FDI can play in moving the economy forward by improving its technological
base and placing production on a more dynamic growth path, as other countries
have done with great success. It begins with a brief history to remind readers
that Pakistan’s economy has always been open to foreign investment, even in the
heyday of nationalization. Next, it looks at the particular type of investment
and technological profile that has evolved: weighty, but largely insular,
statist, and low on competiveness. Finally, the chapter assesses the potential
for a more ambitious industrial trajectory: private sector-led, fueled by FDI,
and supported by policies and institutions that encourage technological
deepening.
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/02/2014 04:25:00 PM,
Economic Governance and Institutional Reforms
1.
Theoretical and
Empirical Insights
The link between
good governance and economic and social development has been well established
in the last few decades. There is a wide consensus that good governance must
lead to broad-based, inclusive economic growth and social development. It must
enable the state, civil society, and the private sector to enhance the
wellbeing of a large segment of the population. Economic policies, however
sound or benign, cannot disperse their gains widely unless the institutions
intermediating these policies are strong, efficient, and effective.
There is no precise definition of governance but a number of attempts
have been made to define it. According to the World Bank (1992), governance
refers to the manner in which public officials and institutions acquire and
exercise the authority to shape public policy and provide public goods and
services. Institutions establish formal and informal rules that determine
whether the public sector acts in its own interests or on behalf of all
citizens. Corruption is one outcome of poor governance involving the abuse of
public office for private gain. The World Bank’s (2012a) Governance and
Anticorruption Strategy of 2012 surmises that governance is about what the
state can do and how it does it—what the state can do is determined by its
capacity, legitimacy, and authority:
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/02/2014 04:21:00 PM,
Pakistan’s Indus Basin Water Strategy: Past, Present, and Future
January 01, 2014
1.
Introduction
Pakistan’s Indus
Basin Irrigation System (IBIS) is the strong heart of the country’s economy.
Its creation is a tribute to the British irrigation engineers who created the
original system (1847–1947) that Pakistan inherited in 1947, and to the
Pakistani irrigation engineers and institutions (particularly the Water and
Power Development Authority [WAPDA] and the provincial irrigation departments)
who have spent the last 60 years adding new dams and barrages, building new
link and branch canals, and modernizing and maintaining the world’s most
complex and extensive irrigation system. From the 1950s onward, the IBIS has
also been the product of the generosity and intellectual input of a host of
international experts and international institutions, particularly the World
Bank. This chapter starts with a review of what has been accomplished in order
to put the IBIS into perspective and illustrate the magnitude of the effort put
into building the present system. The chapter’s aim is to sketch the task ahead
and develop a coherent national strategy for the preservation of the IBIS for
the future.
2.
The Indus Basin:
The First Decade 1947–57
The Revelle
Report commissioned by President Kennedy following a request from President
Ayub Khan in 1961 provides a fascinating look at Pakistan in this period. It
paints a West Pakistan of 43 million people, malnourished and desperately poor
with an average income of less than 20 cents/day, and an average life span of
less than 45 years, with a 10 percent rate of literacy—“industrious, frugal,
progressive … their watchword: ‘our sons will have it better’” (US Department
of the Interior, Panel on Waterlogging and Salinity in West Pakistan, 1964, p.
35).
Read more »Labels: Pakistan, Pakistan Economy, Pakistan: Moving the Economy Forward, Publications
posted by S A J Shirazi @ 1/01/2014 04:17:00 PM,
City Campus
104 - C, Gulberg III,
Lahore, Pakistan.
Phones: 92-42-35714936, 38474385
Fax: 92-42-36560905
Main Campus
Intersection Main Boulevard Phase VI
Burki Road
Lahore, Pakistan.
Phones: 36560935, 36560939
