ASSIGNMENT#01

Classic Theories of Economic Growth and Development

Case Study of diversion development

(Pakistan and India)

Introduction

Pakistan and India both achieved independence in the same year i.e. 1947, Pakistan on 14th of
august and India on 15th of august. Both these countries are located in southern Asia, bordering
the Arabian Sea. Pakistan is located between India on the east and Iran Afghanistan on the west
and china on the north and India is located between Burma and Pakistan also bordering bay of
Bengal.The population of Pakistan is ~204.9 million people (1.1 billion more people live in
India).The size of India Economy has become $2088 billion which tagged it as the 7th largest
economy in the whole world. On the other hand, the size of Pakistan's economy is about $273
billion. So, India's GDP is almost 7 times larger than Pakistan's economy.

Growth:

The Gross Domestic Product per capita in Pakistan was last recorded at 4927.90 US dollars in
2018, when adjusted by purchasing power parity (PPP). The GDP per Capita, in Pakistan, when
adjusted by Purchasing Power Parity is equivalent to 28 percent of the world's average. GDP per
capita PPP in Pakistan averaged 3786.53 USD from 1990 until 2018, reaching an all time high of
4927.90 USD in 2018 and a record low of 3055.80 USD in 1990.The Gross Domestic Product
per capita in India was last recorded at 6899.20 US dollars in 2018, when adjusted by purchasing
power parity (PPP). The GDP per Capita, in India, when adjusted by Purchasing Power Parity is
equivalent to 39 percent of the world's average. GDP per capita PPP in India averaged 3624.14
USD from 1990 until 2018, reaching an all time high of 6899.20 USD in 2018 and a record low
of 1887 USD in 1991.

Poverty:

India, the world's second fastest growing economy, has been ranked as poorer than its blighted
enemy Pakistan in a United Nations report on global poverty.a nation which has taken great pride
in its rapid economic growth and the increasing clout of its billionaire business leaders but has
failed to share the spoils with its poor. In absolute terms, 41.6 per cent of India's 1.1 billion
people earned less than 78 pence per day compared with 22.6 per cent of Pakistan's 173 million.
The report quotes its 'multi-dimensional poverty index' which includes measures of schooling,
child mortality, nutrition, access to electricity, toilets, drinking water, and hygienic living
conditions, and reveals India is poorer.
Education and Literacy:

As of 2010, there are 380 out of every 1000 Pakistanis age 15 and above who have never had any
formal schooling. Of the remaining 620 who enrolled in school, 22 dropped out before finishing
primary school, and the remaining 598 completed it. There are 401 out of every 1000 Pakistanis
who made it to secondary school. 290 completed secondary school while 111 dropped out. Only
55 made it to college out of which 39 graduated with a degree. 327 out of every 1000 Indians
above the age of 15 have never had any formal schooling. Of the remaining 673, only 20
dropped out during primary school. Once we got kids into primary school, we managed to make
sure that they completed it. In secondary school, however, the situation is markedly different.
465 out of every 1000 Indians made it to secondary school but 394 dropped out without
completing. Only 58 made it to college out of which a little more than half graduated with a
degree.

Health:

Life expectancy is 66 years in Pakistan, 68 years in IndiaInfant mortality rates in India (38 deaths
per 1,000 live births) and Pakistan (66) remain among the highest in Asia.

Human Development Index (HDI):

India’s composite Human Development Index (HDI) is 0.609 as against Pakistan’s 0.538. India
ranks 130 worldwide in HDI, while Pakistan’s ranking is worse at 147.

Population:

Pakistan has higher birth rate of 3.48 per woman against India birth rate of 2.33 per woman.
India may have successfully curbed its high fertility rate, but it still has a long way to go in
overcoming the population crisis. Both these countries are serious population crises.

Geography:

Pakistan’s geography where brought the country countless material benefits there its unwise
exploitation also invited the chaos in the region. Being the gateway to Central Asia and a suitable
route of access of World Powers into land-locked Afghanistan, the geography of Pakistan
suffered from the side effects of the ‘New Great Game’ and the ‘Global War on Terrorism’.
Throughout its history, India was intermittently disturbed by incursions from beyond its northern
mountain wall. Especially important was the coming of Islam, brought from the northwest by
Arab, Turkish, Persian, and other raiders beginning early in the 8th century CE.

Gender Equity:

According to United National Development Program latest Human Development Report (HDR)
2015.Pakistan ranks 121 on the Gender Inequality Index ahead of India ranks 130 and fares
better than only Afghanistan which is at 152. Although Pakistan had a lower Human
Development Index (HDI) than India, they still performed better on gender equality In
comparison to Pakistan that has 19.7 per cent of women in parliament India has only 12.2 per
cent.

Aid:

Pakistan receives foreign aid from several countries and international organizations. Since the
start of the War in Afghanistan, the majority of the aid comes from the United States via the
Coalition Support Fund which is reimbursement to Pakistan for counter-terrorism operations.
Foreign aid from America has been stopped since 2018. Pakistan also received $649 million in
aid for education in 2015, the highest it had received so far. The aid had increased from $586
million in 2014 to $649 million in 2015. The paper also reports that Pakistan received the most
aid out of all the countries in Southern Asia, with India just behind receiving $589 million in
2015 India receives foreign aid from various nations and international organizations. India
received $3.1 billion foreign aids in 2017.

Governance and role of military:

The army has always been important in Pakistani politics, but civilian leaders are gaining
political power of their own to reinforce their burgeoning democratic ideals. Civil-military
relations in India have focused too heavily on one side of the problem – how to ensure civilian
control over the armed forces, while neglecting the other – how to build and field an effective
military force. This imbalance in civil-military relations has caused military modernization and
reforms to suffer from a lack of political guidance, disunity of purpose and effort and material
and intellectual corruption.

Civil Society:

Pakistan civil society is a reactive civil society. It has been a created civil society rather than it
has evolved. Although lack of good governance in Pakistan has many factors behind it, weak
civil society and a largely cosmetic civil society is one of the key causes. India boasts an active
and vibrant civil society, with over three million civil society organizations (CSOs) and social
movements fostering socio-economic, political and cultural development, and playing a major
role in promoting, protecting and strengthening human rights. CSOs are working to hold the
government to account for its decisions and actions and to advocate for policies that advance
human rights and challenge exclusion. However, the quality of democracy and the ability to
engage in democratic dissent have shrunk drastically since Prime Minister Narendra Damodardas
Modi won power on 26 May 2014. In the years since, many CSOs and activists who speak truth
to power and shed light on the actions of politicians and public officials have found themselves
targeted by government authorities.
The government uses such tactics as restrictive legislation to deny CSOs their right to register,
and in some cases suspends or withdraws CSO permits to operate. Resourcing of CSOs is also
being targeted: some CSOs have been prevented from receiving funding from external sources,
and some have had their bank accounts suspended, stopping them from accessing funds to carry
out their activities.

Conclusion:

The development levels of both these countries are dramatically different because India is
developing into an open-market economy, yet traces of its past autarkic policies remain.
Economic liberalization measures, including industrial deregulation, privatization of state-owned
enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and
have served to accelerate the country's growth, which averaged fewer than 7% per year since
1997. While in Pakistan Decades of internal political disputes and low levels of foreign
investment have led to slow growth and underdevelopment.