Thursday, August 23, 2007

Economic and society education in Pakistan.

Economic and society education in Pakistan.
By
Farzana Panhwar
157-C.Unit.No.2.Latifabad.
Hyderabad.Sindh.Pakistan.
farzanapanhwar@yahoo.com
farzanapanhwar8@gmail.com


Abstract:
The development of Pakistan's economy and society and education is explored, the paper also examines the Pakistan's economic performance with respect to society and education in the last 50 years, its political tribulations, and the impact of foreign policy since the independence. Despite some impressive periods, economic growth has been inconsistent, uneven and largely exclusionary. In the process, Pakistan's social, political and economic structures have been badly mauled by the intervention of the military in politics, and foregion economic and social experiments. The more recent economic liberalization campaign has essentially contributed to the hardening of fissures in society, exacerbating ethnic and sub-national conflict while intensifying the stranglehold of the tripartite ruling coalition.
Different standards of education as well as gaps or ignorance were intimately linked to socio-economic status ranging from the highest international levels of knowledge and sophistication to outdated and irrelevant curriculum that often accompanies abject poverty arising from skewed development. The colossal socio-economic changes occurring at an unprecedented rate in demographic, political, economic, cultural and technological arenas have influenced reforms in education, in general, and teacher
education, in particular, and impacted the ways in which teachers and students are perceived and have made teachers' work more demanding.

General
Economic Overview: Pakistan has made significant development progress since1947 , 60 years ago, and now if we check the social indicators. Health and education services have expanded and improved tremendously , Life expectancy at birth: total population: 63.75 years ,male: 62.73 years ,female: 64.83 years (2007 est.). Infant mortality in Pakistan is highest among SAARC countries, which at present stands at 70 deaths per 1,000 live births, according to a report compiled by the Society for the Protection of the Rights of the Child (SPARC). The overall adult literacy rate in Pakistan is currently estimated at 54 percent. The total number of illiterate people in the country has more than doubled in absolute numbers over the past half-century, according to a UNESCO report. In 1951, there were nearly 22 millin who couldn't read in Pakistan, while the 1998 census results showed that the illiterate population has risen to 48 million. With a per capita GDP of about $690 (current U.S. $), the World Bank considers Pakistan a low-income country. No more than 48.7% of adults are literate, and life expectancy is about 63 years. The population, currently about 165 million, is growing at 2.09% annually.

World Bank assistance.
The World Bank approved on Tuesday 24-5-2007 a $350 million credit to support the Pakistan’s medium-term reform programme, which aims to promote sustained, rapid economic growth as its main vehicle for poverty reduction.

According to a bank announcement, the Second Poverty Reduction Support Credit (PRSC II), which supports the government’s Poverty Reduction Strategy Paper, will finance reforms designed to maintain macroeconomic stability, improve management and effectiveness of public expenditures, and assist power sector reforms. It will also support the privatization programme, improve the regulatory framework for competition, and enhance female labour force participation and labour market flexibility.

The bank said over the last six years, Pakistan has emerged as one of the fastest growing economies in Asia, with rising per capita income, and improving social indicators. Growth has averaged seven percent between 2003-2004 and 2005-2006, and the poverty head count ratio has fallen significantly in recent years.

Economic reforms.

The country has also made impressive strides in deregulating its economy to increase competition and reduce cost of doing business, and implementing structural reforms, particularly in the power sector. “Economic reforms are now contributing to increased investor interest from Pakistanis and foreign investors alike,” according to Yusupha Crookes, Country Director for Pakistan. “The ongoing reform programme supported by this project will contribute to sustaining rapid growth. We hope this, along with policy reforms and public investments to increase poor people’s participation in the economy, will accelerate the country’s progress towards reaching the Millennium Development Goals.
The Federal Government has estimated a massive expansion of $38.15 billion in the Gross Domestic Product (GDP) of Pakistan in five years as the national economy has been showing strong signs of a minimum of seven per cent per annum growth.

In 2003-04 the GDP of Pakistan had been calculated at $94.80 billion and it would expand to $132.95 billion by the financial year 2008-09, provided the economic growth remained pegged to at least seven per cent growth.

Details gathered by The Nation revealed that in 2004-05 for the first time the GDP of Pakistan would crossed $101 billion mark and settle at $101.43 billion, from $94.80 billion in 2003-04, as a minimum of seven percent overall economic growth had been projected by the federal government and the multilateral donor agencies.

The federal government and the donor agencies are of the view that the economy of Pakistan could sustain the current trend of robust growth in the economy for next few years, leading to expansion in the GDP, employment opportunities, poverty alleviation, increase in per capita income.

Details say that the Gross Domestic Product (GDP) would further expand to $108.53 billion in fiscal year 2005-06, $116.127 billion in 2006-07, $124.255 billion in 2007-08 and it would further inflate to $132.955 billion in financial year 2008-09.
Macroeconomic achievements.
These macroeconomic achievements have allowed the country to keep on track towards fiscal consolidation while enabling the government to increase spending on health and education. The government has also launched far-reaching structural reforms to privatize public sector enterprises, strengthen public and corporate governance, liberalize external trade, and reform the banking sector. However, despite these favorable developments, formidable challenges remain. Pakistan still lags behind countries with comparable per capita income in most social indicators.
In 2000, the government made significant macroeconomic reforms: Privatizing Pakistan's state-subsidized utilities, reforming the banking sector, instituting a world-class anti-money laundering law, cracking down on piracy of intellectual property, and moving to quickly resolving investor disputes. After September 11, 2001, and Pakistan's proclaimed commitment to fighting terror, many international sanctions, particularly those imposed by the United States, were lifted. Pakistan's economic prospects began to increase significantly due to unprecedented inflows of foreign assistance at the end of 2001. This trend is expected to continue through 2009. Foreign exchange reserves and exports grew to record levels after a sharp decline. The International Monetary Fund lauded Pakistan for its commitment in meeting lender requirements for a $1.3 billion IMF Poverty Reduction and Growth Facility loan, which it completed in 2004, forgoing the final permitted trenched. The Government of Pakistan has been successful in issuing sovereign bonds, and has issued $600 million in Islamic bonds, putting Pakistan back on the investment map. Pakistan's search for additional foreign direct investment has been hampered by concerns about the security situation, domestic and regional political uncertainties, and questions about judicial transparency.
Pakistan remains an important ally in the Global War on Terrorism. The U.S. Government's Emergency Economic Assistance (EEA) Agreements provide balance of payments, budget, and policy reform support to the Government of Pakistan (GoP) during this time of economic hardship and political strain associated with Pakistan's participation in the war on terrorism. To date, this assistance has been largely successful, helping Pakistan to pursue an aggressive program of economic stabilization and structural reform. It was particularly crucial in 2005 when the devastating earthquake killed 73,000 and displaced nearly 3 million Pakistanis, delivering a major shock to the economy. The EEA helped Pakistan maintain macroeconomic stability during this period of stress, and allowed the GoP to continue second generation policy reforms, including increases in spending for education, health and clean water.
International Finance Corporation officials told that they see Pakistan as having best indicators for doing business in the South Asian region. They are also studying the reforms that have helped Pakistan facilitate doing business in the country.
On the state of the economy, the country is on course to recording a robust 7 percent growth this year while foreign exchange reserves will touch an unparalleled US dollars 15 billion mark. Strong foreign and portfolio investments are pouring in and will cross US dollars six billion for the first time. Exports have shown a 6.5 percent growth, a little below the target. The core inflation is down to 5.5 percent.
U.S. assistance has played a key role in moving Pakistan's economy from the brink of collapse to setting record high levels of foreign reserves and exports, dramatically lowering levels of solid debt. Also, despite the earthquake in 2005, GDP growth remained strong at 6.6% in fiscal year 2005/2006. In 2002, the United States led Paris Club efforts to reschedule Pakistan's debt on generous terms, and in April 2003 the United States reduced Pakistan's bilateral official debt by $1 billion. In 2004, approximately $500 million more in bilateral debt was granted. Consumer price inflation eased slightly to an average of 8% in 2005/2006 from 9.3% in 2004/2005.
Development and challenges.

Pakistan is committed to far-reaching governance and economic reforms and has made substantial economic progress over the last 5–6 years. Its macroeconomic fundamentals and financial condition have improved, allowing it to boost spending on programs that can reduce poverty. And among the major reforms, the Government has been devolving responsibility for basic services to local governments at the district and subdistrict levels, improving efficiency and accountability. Under its Poverty Reduction Strategy Paper, in place since December 2003, Pakistan aims to accelerate economic growth, improve governance, and invest in human capital.

Low levels of spending in the social services and high population growth have contributed to persistent poverty and unequal income distribution. The trends of resources being devoted to socioeconomic development and infrastructure projects have been improving since 2002, although expenditures remain below global averages. Pakistan's extreme poverty and underdevelopment are key concerns, especially in rural areas. The government has reined in the fiscal mismanagement that produced massive foreign debt, and officials have committed to using international assistance--including a major part of the $3 billion five-year U.S. assistance package--to address Pakistan's long-term needs in the health and education sectors.
Pakistan has received about $16.57 billion in loans since joining the Asian Development Bank (ADB) in 1966. ADB had disbursed about $11.3 billion as of the end of 2006. Assistance approved in 2006 included almost $1.54 billion in loans and $7.6 million for technical assistance grants.

Under ADB’s country strategy and program (CSP) approved in May 2002 assistance supports good governance, sustainable pro-poor growth, and inclusive social development. Subregional cooperation, sustainable environmental management, and gender and development are crosscutting themes.

ADB’s 2006–2008 CSP update, in concert with the Government’s Medium-Term Development Framework, supports economic infrastructure in the areas of water resources, power, transport and communications, and urban renewal and urban development. ADB is also supporting strategic social sector investments to help Pakistan move toward the Millennium Development Goals, in particular, through province-based programs for the social sectors, and provincial resource management programs (RMPs) that permit more spending in those areas.

The strategic focus for ADB in Pakistan is to continue to support the Government’s reforms and investments in key areas of water and utilities, transport, energy security, urban development, social sectors, development of capital markets, and public resource management. The bulk of ADB’s future assistance will be provided for the construction and rehabilitation of the economic infrastructure. In the irrigation sector, support will be provided for province-based rehabilitation of barrage systems and construction of small water storage dams.

In the transport sector, ADB will assist in improving the national and provincial highway networks and support the Government in implementing its National Trade Corridor Program to reduce inefficiencies, long waits and travel times, and associated high costs in the transport sector.
The development challenges in Pakistan are complex .Despite sound economic management, recent progress on poverty initiatives and good economic growth, Pakistan remains a low-income country with a per capita income of only US$470 in 2003. Nearly a third of the population live below the national poverty line and tens of millions more live just above it. As a result many Pakistanis are vulnerable to unexpected events such as ill health and droughts and increasing exposure to volatile international markets which can affect them personally or as a community.

Poor health, illiteracy and gender and social discrimination are widespread. Over half a million children die each year before reaching their fifth birthday and around 25,000 women die through childbirth. Only around 50% of adults are literate, and an adult female is only half as likely to be literate as an adult male.

Good progress was made towards addressing some aspects of poverty during the 1990s. Child mortality reduced significantly, and access to basic sanitation and safe water increased. There was, however, limited improvement in many other areas and overall poverty rates actually increased between 1990 and 2000, although there are signs that the upward trend may have now started to reverse.4 If progress continues at the same rate as during the 1990s Pakistan will fail
to meet many of the 2015 Millennium Development Goals, some dramatically so.5 The continued pace of population growth has been and will continue to be a significant factor, undermining economic gains and the impact of poverty reduction programmes.

The Pakistan Government prioritizes economic growth as the major route out of poverty. During the last four years, it has introduced key macro-economic reforms which have lead to economic revival. However, according to the State Bank of Pakistan and as the data above suggest, the benefits of this growth have been uneven.

If it is to achieve sustained growth and poverty reduction the Government will need to continue to implement far reaching structural and institutional reforms. Some of these reforms were announced in the Government’s 2004 Budget. If Pakistan is to meet its own development targets,
which include the Millennium Development Goals, any future reform efforts will need to pay particular attention to the needs of the poorest.

The Government has developed a comprehensive Poverty Reduction Strategy Paper (PRSP 2003 – summarized). This sets out its priorities and approach to development and poverty reduction. The Poverty Reduction Strategy Paper provides a framework for international donors to support the Government’s poverty reduction policies and programmes. DFID’s Country
Assistance Plan will support the implementation of these policies and programmes.

Pakistan has grown much more than other low-income countries, but has failed to achieve social progress commensurate with its economic growth. The educated and well off urban population lives not so differently from their counterparts in other countries of similar income range. However, the poor and rural inhabitants of Pakistan are being left behind. For example, access to sanitation in Pakistan is 23 percent lower than in other countries with similar income.
There are also significant gender gaps in both literacy and health status of the population. Gender disparities in education remain significant. While the male population completes an average of five years of schooling, the female population in Pakistan completes only two and a half years. The enrollment rate for boys is 82 percent as opposed to 61 percent for girls. Maternal mortality remains high at 450 per 100,000 live births.
Meeting the vision embraced in the Millennium Development Goals by 2015 (including the reduction of infant and child mortality by two thirds and maternal mortality by three quarters and halving the percentage of the population living in poverty) will require renewed efforts in Pakistan. The World Bank’s assistance strategy is based on measurable outcomes using the MDGs as the background for its engagement in Pakistan.
Socioeconomic and geopolitical profile

Pakistan is the most populous country in the Eastern Mediterranean Region with a population of 149.5 million spread over four provinces (Punjab, Sindh, North West Frontier Province and Baluchistan) and four federally administered areas. These are further divided into 126 districts, which have 8575 union councils and 50 568 villages. The population is expected to reach 168 million by the year 2010 with the current
growth rate of 1.9%. The average adult literacy rate is just above 50% with an urban bias and significantly lower female literacy (32%). Pakistan’s ranking is 142 in the human development index (HDI). The GDP per capita of the country was US$ 580 in 2003.The Pakistan Poverty Assessment Survey (2000–2001) estimates that 32% of the Pakistani population lives below the poverty line, of whom two-thirds are transitory
poor.8 The country has had variable periods of economic growth since independence. Periods of low growth rate (1990s) have alternated with periods of high growth (1980s) and for the last 2–3 years the country has shown an impressive growth trajectory, although the social indicators have yet to catch up.
World Bank assistance to Pakistan
The Country Assistance Strategy (CAS), endorsed by the Bank, was designed to support Pakistan’s reform program, which aimed at engendering growth, reforming governance, creating income-generating opportunities, and improving human development.
The CAS was designed to support Pakistan’s pursuit of these goals by strengthening macroeconomic stability and government effectiveness, improving the business environment for growth, and improving equity through support for pro-poor and pro-gender policies. The Bank Group’s assistance strategy focuses intently on supporting the government’s development strategy and is organized around three mutually reinforcing pillars:
1. Strengthening Macroeconomic Stability and Government Effectiveness. The Bank is supporting the government’s efforts to restore fiscal sustainability, reduce internal and external debt, and improve the competitiveness of the economy. At the heart of the Bank’s strategy is a focus on reforms to improve government effectiveness at the federal, provincial, and local levels. To this end, the Bank supports furthering transparency and accountability at different state and federal agencies, as well as institutional capacity building to create the political, economic, and institutional setting for entrepreneurship and markets to flourish.
2. Strengthening and Enabling the Investment Climate. The Bank Group’s assistance to strengthen the investment climate in Pakistan includes a combination of analytical work and financial assistance targeted at key sectors. These include support for deregulation, trade liberalization, tariff reduction, privatization, and reform of the banking sector. In addition, the Bank is supporting investment and reform of critical infrastructure, including water, transport, and energy, to reduce the cost of doing business. The World Bank is working in cooperation with the International Finance Corporation (IFC), its private sector-lending arm, to consider the development of new products to better meet the needs of the private sector, such as long-term finance options for infrastructure and expanded access to financial services to underserved small and medium enterprises.
3. Supporting Pro-poor and Pro-gender Equity Policies. This pillar of the CAS focuses on promoting education and health, supporting pro-poor rural development and community infrastructure, and supporting targeted poverty alleviation programs.
The Bank’s assistance for rural sector development emphasizes community-driven projects, such as The Poverty Alleviation Fund (PPAF). This project aims to empower rural and urban poor by providing them with access to resources and services, such as micro-credit and grants for community-driven infrastructure and capacity building. The Bank will continue to pilot new approaches to rural development, particularly through projects that develop access to safe water and sanitation (see box) and through micro-credit initiatives to reduce and mitigate risks for Pakistan’s poor.
Education programe.
In education, special emphasis is placed on improving the quality of education and giving priority to the poor and disadvantaged, particularly girls and children in rural areas. In health, Bank assistance is supporting the government’s priority of strengthening public health programs in immunization, communicable diseases, and maternal and child health. To this end, the Bank provides analytical work, technical assistance, policy dialogue, and lending as appropriate. One example of the World Bank’s engagement in the health sector is a project to prevent the spread of HIV/AIDS to vulnerable populations in the country
Emphasizing pro-gender equity policies in Pakistan, future Bank assistance highlights expanded access to quality education and health services for women and children. The Bank Group’s assistance follows the overall framework of the Education Sector Reform (ESR), which was launched by the Government of Pakistan in 2001. The ESR foresees the adoption of mechanisms, such as school vouchers, and other subsidies to increase girls’ enrollment in school. Some other gender-specific projects may include micro-credit and rural employment schemes, as well as water supply and female literacy programs.
Referring to expanding cooperation in the field of education he noted that in just four years, funding for the bilateral Fulbright program has grown from $1 million per year to over $20 million per year. More than 200 Pakistanis are currently studying for Masters and PhD’s in the United States under this program, making it the largest Fulbright program in the world in terms of U.S. government funding.
In the field of basic education, the past five years, the US government has spent over $200 million in support of the government of Pakistan’s education reform strategy by working with it to strengthen education policy and planning at the federal, provincial and district levels; improve the skills and performance of teachers and administrators; increase youth and adult literacy; expand public-private partnerships; and provide school improvement grants and involve parents and communities in public schools.

Conclusion
To conclude, Pakistan has built its poverty reduction strategy on the basis
of its own historical experience and incorporated the lessons of global experience
also. The strategy has the inputs of all stakeholders but it needs strong political
commitment, real devolution of powers to grass roots level, a vibrant private public-
community partnerships for delivery of services, change in the
bureaucratic values and norms and a focus on gender disparities. If these issues
are resolved sooner than later we can embark on a path of sustainable poverty
reduction.
a strong economy; alleviation of poverty and promotion of education could help eliminate extremism from Pakistani society. Immediately after coming to power the government prioritized education and made comprehensive strategies to strengthen the sector with help from private and public organizations

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