Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts

Tuesday, April 21, 2009

Aid for Trade

It has become a common philosophy that if you want to destroy a nation, put them on aid. War cannot completely destroy a country, but Aid helps to evaporate a country from the world map.

Trade is the key to success of any country. We have the shining examples of East Asian countries, especially China, where trade has helped to bring the Chinese industry at top and hence helped 400 million people escape poverty in the past 20 years.

Trade is the engine of growth. It is more than true as whole economic system of a country and of the world stand by trade. It is the international competitiveness that compels the microeconomic and macroeconomic stabilization. Only trade is the answer of global poverty.

But the philosophy proves fatal when it comes to Pakistan. The Pak government is pressing hard for acquiring aid in the name of war against terrorism. This is the only thing which they demand with passion rather condemning drones attacks. The external debt has reached almost US$ 43.23 billion this year. Instead of asking aid in monetary terms, Pakistani government should demand:

  • access to all international markets especially markets of the Allies.
  • special access to American markets
  • withdraw of anti-dumping duty imposed by US government and Allies
  • special incentives to Pakistan traders hitting US markets
  • training and technical assistance for Pakistani export oriented industries
  • etc.

I wonder why the educated officials of our government are sitting idle waiting for money to come rather than suggesting government what type aid we should demand for. The war against terrorism has been imposed on us. It has become our war now, then why shouldn’t we get some benefits out of it if they are available?

Friday, December 5, 2008

My Paper has been published. So I am allowed now to post it anywhere :)

ABSTRACT

The main objective of this study is to analyze the prevailing perception regarding the negative influence of trade deficit on economic growth. After discussing the paradox of faster economic growth and rising trade deficits, it is observed that the results are different from the existing thesis in Pakistan. The figures since 1980s show that Gross Domestic Product (GDP) and trade deficits are increasing and decreasing parallel to each other. The study elaborates the exports and imports and their impact on GDP growth. The composition of imports is also discussed highlighting the share of capital goods and consumer in total imports of Pakistan. The Study scrutinizes that Pakistan’s imports are concentrated in few countries. Linkages and continuities, as well as the relationships between GDP growth, trade deficit, exports and imports are brought together in this Article is an effort to understand these fundamental forces and their influence on the economy of Pakistan.

Author: Yours truely ;p

Bari Ammi

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