State, Education, and the Market

The tail of the tail-end of the 2nd millennium has taught the humankind two valuable lessons: democracy and the market, although imperfect, have succeeded where other systems have failed. What is clear is that the most successful systems are aligned to humankind’s predispositions rather than being inimical to them. Insofar as it aligns itself with the predisposition to greed, consistently regulated capitalism terms out to be the most efficient economic system hitherto observed in human society. Likewise, democracy works by aligning many people’s desire for power with a governance system which on balance is helpful to the general population, unlike various forms of totalitarianism. But recent movements for both capitalism and democracy in many developing countries largely do not subscribe to humankind’s predispositions, rather they appear to be a part of the headlong global trend towards these paradigms. The reason being that the most important ingredient, common to both recipes, is lacking in many developing countries: that is the popular pressure and mobilisation which is sufficiently informed of its duties and rights. This ingredient is most important as it forces out the authoritarian rule whether, totalitarian or ‘democratic’, and makes democratic governance drive the market to the maximum benefit of society. The central thesis of this work is that this most important ingredient is the result of an effective and efficient system of public institutions for free and compulsory universal primary schooling which, if the resource constraint could be overcome, ought to be supplemented by free and compulsory secondary schooling. The argument is structured in five parts.

Instinctive Behaviour, Producer Surplus, and Corporate Social Responsibility

This paper addresses a phenomenon that cuts across many disciplines of the formal tradition of learning. Out of numerous multifaceted academic disciplines involved in the argument, psychology, economics and business management stand out, as reflected in the title of the study. The research on the topic is carried out by adopting an inductive approach involving intangible aspects of psychology and tangible parameters of sociology centred around the disciplines of economics and business. The author maintains that the phenomenon of Corporate Social Responsibility (CSR) represents a challenge of finding the resolution to the paradox of selfish and altruistic human motives. It is argued that quality of that resolution will be determined by the quality of positive laws of socio logy and the quality of intrapersonal regulation to help appreciate social responsibility in the presence of opportunities for maximising self-interest. The review of the literature on CSR underpins factors of international political economy responsible for promotion of the phenomenon in North and South during the last century and in the new millennium respectively. The findings lead to the conclusion that rhetoric of CSR in countries like Pakistan merits the analysis of both its motives and fall out within a North-South divide.Social Responsibility, Instinctive Behaviour, Positive Law, Ethical Behaviour, Stockholders, Technical Barriers to Trade

External Determinants of Growth and Growth Projections: SAARC and Pakistan

In the global trading arena, the regional integration perhaps represents the most important legacy of the 20th century. This paper focuses on the scope and promise of economic cooperation between the SAARC region countries. Descriptive statistics is used to provide the evidence for the argument that very high share of trade in the GDP of the region’s economies exposes them to external shocks in a potentially harmful manner, and these countries ought to be paying greater attention to increasing the size of their economies. In order to determine the importance of the external sector in the economies of the region, a simultaneous equations model is formulated and estimated, utilising the pooled data for the period from 1972–2001, by applying the 2SLS technique. The coefficients of two of the three external sector variables included in the model, namely, export earnings and trade balance, turn out to be significant, providing the evidence on the importance of the external sector in the economic growth of the SAARC region countries. Keeping in view that Pakistan needs to adopt sustainable growth strategies, the authors maintain that extended economic cooperation within the SAARC region is the most viable alternative for the country. The argument is substantiated with the help of inferential statistics, providing the evidence that exports to SAARC countries are positively related with the economic growth of Pakistan. The simulation output also shows that increasing and diverting the country’s exports to the SAARC region have positive impact in terms of growth projections. By estimating and simulating another model, it is inferred that in the short run, diverting exports to both the SAARC and ASEAN region countries appears to be a viable strategy to help Pakistan move towards greater integration within the SAARC region, and that the SAARC forums must make meaningful progress in terms of delivering concrete results.Trade, Economic Growth, Pakistan

Textiles Sector of Pakistan: The Challenge Beyond 2004

The world is presently looking forward to embrace the greatest moment of modern history of humankind, turn of the millennium. For Pakistan, however, the millennium celebrations are going to be accompanied by over half a century of missed opportunities and a serious challenge ahead. The focus of this study is Pakistan’s status as a ‘single commodity’ country and the life after 2004 in a post- Multifibre Arrangement (MFA) era. This work intends to use the hindsight to argue that MFA, a cat’s cradle of bilateral textile import quotas, was a blessing in disguise for the value added textiles sector of Pakistan. And the difficulties beyond 2004, when all the quotas have gone, should not be underestimated in a bipolar (NAFTA and the EU) and deregulated world economy . The analysis is carried out in four parts. Part I highlights the economic significance of Pakistan’s textiles industry by briefly analysing its contribution to different sectors of her economy. Part II presents the past, present and future scenario of international trade in Textiles and Clothing (T&C). The present situation of Pakistan’s textiles industry along with its foreign exchange generating performance in the past is assessed in Part III. Finally, Part IV analyses the prospects and challenges faced by the T&C sector of Pakistan

State, Education, and the Market

The tail of the tail-end of the 2nd millennium has taught the humankind two valuable lessons: democracy and the market, although imperfect, have succeeded where other systems have failed. What is clear is that the most successful systems are aligned to humankind’s predispositions rather than being inimical to them. Insofar as it aligns itself with the predisposition to greed, consistently regulated capitalism terms out to be the most efficient economic system hitherto observed in human society. Likewise, democracy works by aligning many people’s desire for power with a governance system which on balance is helpful to the general population, unlike various forms of totalitarianism. But recent movements for both capitalism and democracy in many developing countries largely do not subscribe to humankind’s predispositions, rather they appear to be a part of the headlong global trend towards these paradigms. The reason being that the most important ingredient, common to both recipes, is lacking in many developing countries: that is the popular pressure and mobilisation which is sufficiently informed of its duties and rights. This ingredient is most important as it forces out the authoritarian rule whether, totalitarian or ‘democratic’, and makes democratic governance drive the market to the maximum benefit of society. The central thesis of this work is that this most important ingredient is the result of an effective and efficient system of public institutions for free and compulsory universal primary schooling which, if the resource constraint could be overcome, ought to be supplemented by free and compulsory secondary schooling

Instinctive Behaviour, Producer Surplus, and Corporate Social Responsibility

In a broader sense, CSR became an issue mainly in the recent years. The evolution of this phenomenon is largely to be credited to the neoliberalist era that began in the last quarter of the 20th century and continues to dominate the new millennium. Not surprisingly, the conceptual and operational definitions of CSR are subject to as many controversies and disappointments as is the outcome of neoliberalist economics manifested in looming threats to social, economic and environmental sustainability. The scope of this study is, however, only limited to addressing the issue of CSR. The analysis is carried out by adopting an inductive approach while probing into both interconnected aspects and disconnected separate currents of the phenomenon. The interconnectivity of CSR relates the capitalist paradigm with the individual/collective human behaviour. The disconnection on the other hand refers to specific real world issues with local and global contexts involving simultaneous but unequal capitalist development in the North and the South. The paper is divided into three parts. Part 1 reflects on the relationship between instinctive and ethical behaviour of the entrepreneurs. The former is driven by the motivational force of self-interest exhibited in efforts to accumulate producer surplus, while the latter demands social responsibility under the influence of intrinsic and/or extrinsic regulations. Part II presents a brief review of the literature on CSR, largely relating to the corporate sector in the North. Finally, Part III of the paper analyses the literature on CSR in the developing countries and highlights its recent origins in a world where Technical Barriers to Trade (TBTs) are increasingly underscoring the North-South divide in gains from economic globalisation

External Determinants of Growth and Growth Projections: SAARC and Pakistan

The world is increasingly being divided into regions. The regional trading blocs are becoming more and more deepened and widened around the globe. The European Union (EU) has already reached a stage approximating to the trading relations usually found within a country rather than between the countries. The existence of regional economic groups, particularly in European and American continents, pose a range of theoretical, empirical and organisational questions for developing countries like Pakistan who depend on the countries of these regions for a significantly high share of their international trade. This paper focuses on the prospects of extended economic cooperation of Pakistan with the member countries of the South Asian Association for Regional Cooperation (SAARC).1 The argument is structured around three parts. Part I reviews the theoretical rationale of regional economic cooperation and the recent developments shaping the trading relations within the cooperating blocs. Part II critically evaluates the relative size and significance of the external sector of the SAARC region countries, along with presenting statistical estimates of the major external determinants of the region’s economic growth. Finally, Part III estimates the relationship of major directions of Pakistan’s exports with the economic growth of the country and presents the growth projections by increasing and diverting the exports to the SAARC and ASEAN region countries

Foreign Aid, Domestic Savings and Economic Growth (Pakistan: 1960 to 1988)

One of the core tenets of foreign aid theory, particularly as encapsulated in the two-gap model, is that the insertion of foreign resources via free grants, loans, direct investment etc., into a developing economy sets in motion a causal chain of positive influences in the following broad mannerl: aid' ~ increase in investible resources ~ increase in domestic investment ~ more rapid rate of economic growth. Spirited and specific challenges to this approach came from many critics, supported greatly by a number of broad theoreticaF and empirical analyses. For a large part of the latter, the available evidence pointed to a negative relationship between aid and domestic savings. The evidence was largely based on crosssectional data, 'showing that, there was, in addition, reason to suggest a negative relationship between aid and economic growth. 3 The aim of this study is to provide some quantitative evidence on the relationship between foreign aid, domestic savings and economic growth for Pakistan. The analysis is carried out in three parts. Part one contains the methodology and the description of the data. Part two explores the correlation between aid and several other explanatory variables with Pakistan's savings rate, while part three attempts to analyse and explain the regression findings in terms of the effect of aid on economic growth

Productivity Constraints of Cholistani Farmers

This paper examines the factors behind low crop yield in Cholistan. Both the quantitative and qualitative analysis show how the low levels of agricultural productivity in this area may be linked to material and climatic factors. The quantitative analysis is mainly focused on physical factors. The qualitative analysis, however, emphasises that relative inefficiency of agricultural activity in Cholistan reflects the influence of physical, economic, social and, most importantly, climatic factors. The quantitative findings provide valuable insight into various ‘sources of productivity’ in terms of acreage effect, capital input effect and irrigation water availability effect. The size of the positive and significant coefficients on these variables suggest the extent to which one or the other variable effect is prominent in improving the crop yield. The qualitative analysis examines multiple interrelated factors which can be blamed on for relative inefficiency of Cholistani farmers. The hot climate of the area turns out to be the most critical variable in this analysis. Many specific technological drought-mitigating measures are proposed. However, for consistent policy formulation, a thorough study and quantitative evaluation of the potential and practicality of these measures in Cholistan is suggested.

Market, Regulation and Sustainability

The argument of this study is philosophically rooted in the paradoxical Grand Design. The destiny of humankind, at all levels of existence and organization, is to optimally resolve omnipotent paradoxes in the universe of tangible as well as intangible phenomena. However, the instinctive behavior of the majority of humankind inherently favors shortsighted suboptimal resolutions. This is specifically so in situations where collective wellbeing and sustainability warrant proactive behavior of free and independent individuals and groups. The study traces back the genealogy of contemporary technology and sociology, the two broad realms of human society, and identifies the market as the central force in technological development and sociological evolution since the Industrial Revolution. Market hegemony, as one of the greatest factors, is apprehended to have overwhelmed the collective wisdom and undermined the individual and group ability to take action in the face of multi-prong threat to sustainable development, which is a great peril to civilization and society. Moreover, there is also that wizardly wheel warranting to be incessantly greased with fast depleting natural resources, many of which, including atmosphere, cannot be replenished. The study maintains that the species of the Homo Sapiens Sapiens must appreciate the difference between forward looking progressive moves and the rat race. It is recommended that unbridled market power should be saddled with pragmatic regulations, specifically aiming at curbing the magical power of electronic media in promoting, glamorizing and even sanctifying consumerism which is heedless as well as headless