The Pakistan Development Review
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    The Relationship between the WES Interventions and the Incidence of Diarrhoea

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    Access to clean drinking water and sanitation facilities have a direct positive impact on health through prevention of water-borne diseases, especially diarrhoeal morbidity of children. Lack of WES (Water and Environmental Sanitation) services and poor hygiene practices in Pakistan contribute significantly to the prevalence of diarrhoea, a major cause of infant death and children less than five years of age. The estimates show that about 30 percent of total deaths among children are attributed to diarrhoeal disease [Gallup (2001); UNICEF (2000)], and 4.1 years in life expectancy can be added if water borne diseases are eliminated [Ali and Haq (2003)]. Hence, reduction of diarrhoeal morbidity stands out as an important policy goal, which can ultimately lead to reduction in infant/child mortality. In this paper, we shall examine the relationship of WES interventions with that of the incidence of diarrhoea among children under age 10

    An Evaluation of Karachi Export Processing Zone: A Preliminary Investigation

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    The literature on EPZs shows that these are a second-best solution compared with generalised countrywide reforms, but that, where countrywide reforms are difficult to implement, they can be a useful weapon in the development arsenal [World Bank (2001)]. EPZs have been instrumental not only in increasing exports but also attracting export-oriented foreign direct investment (FDI). China is a classic example to be mentioned here where the levels of FDI have gone up massively over the last ten years. Added up with exports increase are also the benefits of employment generation, development of backward and forward linkages and strengthening the industrial base. The phenomenon of export-processing zones (EPZs) is a part of broader context of structural changes in global economic development. During the last few decades, there has been a tremendous increase in exports of manufactured goods especially from developing countries. EPZs have emerged as an important channel of export generation, especially of manufactured goods, from most of the developing countries e.g. East Asia, Mexico, Morocco etc. Their significance cannot be undermined because of the location-specific advantages and infrastructure facilities possessed by them

    An Analysis of Budget Deficits, Debt Accumulation, and Debt Instability

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    In Pakistan all the macro indicators have been adversely affected by the persistently high deficits and the strategy adopted to finance them in the last two decades. The excessive domestic borrowing at high rates to finance deficits without any attempts at domestic resource mobilisation and controlling of the deficits over extended periods absorbed all available domestic and external resources. The resulting debttrap led to increased external borrowings at high rates with short-term maturity. This, coupled with massive exchange rate depreciation throughout the last two decades, resulted in rapid debt accumulation. The recent fiscal space created in the wake of events of 9/11, resulting in high reserves, follows considerable debt relief and availability of massive funds on very soft terms. However, the decline in budget deficit continues to occur at the expense of development expenditure, along with some increase in tax revenues. This trend in expenditure needs to be reversed if serious progress in debt reduction is the aim

    Sophie Laws, with Caroline Harper and Rachel Marcus. Research for Development: A Practical Guide. New Delhi: Vistaar Publications. 2003. xiii+475 pages. Paperback. Indian Rupees 450.00.

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    To implement any successful policy, research about the subject-matter is essential. Lack of knowledge would result in failure and, from an economic point of view, it would lead to a waste of scarce resources. The book under review is essentially a manual which highlights the use of research for development. The book is divided into two parts. Part One informs the reader about concepts and some theory, and Part Two deals with the issue of undertaking research for development. Both parts have 11 chapters each. Chapter 1 asks the basic question: Is research important in development work? The answer is that it is. Research has many dimensions: from the basic asking of questions to the more sophisticated broad-based analysis of policy issues. The chapter, in short, stresses the usefulness of research which development workers ignore at their own peril

    Is There Seasonality in Pakistan’s Merchandise Exports and Imports? The Univariate Modelling Approach

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    This paper investigates the existence of seasonal patterns in the quarterly merchandise export and import data of Pakistan from 1982:1 to 2002:1. Unit root tests are applied to determine whether the seasonal component in each variable exhibits stochastic non-stationarity. Deterministic and stochastic effects are isolated and quantified. Few alternate DGP specifications are identified, fitted and tested for their outof- sample forecasting performance. A tentative finding is that deterministic effects are relatively more important than stochastic ones. However, integrated models, i.e., ARIMA, mixed ARIMA, and ARIMA-GARCH, outperform deterministic models with respect to forecasting

    The Supply and Demand for Exports of Pakistan: The Polynomial Distributed Lag Model (PDL) Approach

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    In the global economy, the performance of any country will greatly depend on the performance of its exports. The trade performance determines the prospects of change. It helps countries win friends, and break the traditional mould of isolation and indifference. The performance of exports of countries depends on various price and non-price factors. In international trade transactions it is important to recognise that these transactions require some amount of time that occurs between the decision to buy and actual delivery of the product from foreign country. In the Econometric modelling lag occupies a central role. It is recognised that due to psychological, technical and institutional reasons, a dependent variable may respond to explanatory variables with lapse of time, in particular when dealing with time-series trade models

    Jane Smith. Empowering People. New Delhi: Kogan Page India (Pvt.) Limited. 2002. 119 pages. Indian Rs 140.00.

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    Managing organisations and managing people in our ever-changing and complex environment is a tough task, which requires integration on the part of the management and the workforce. Empowerment is a buzzword these days, and almost all organisations are focusing on using empowerment as a means of adapting to an environment of fast-changing business world. Empowerment does not only benefit the organisation but also the individuals involved. In the process, both those who are empowering and the ones who are being empowered share decision-making. Thus, empowerment is a mutual process, which is vital to the success of the organisation and all those linked to the organisation directly and indirectly. It is surely one of the most common business trends, and certainly an issue which all good managers should be aware of

    Openness, Institutions, and Policies: Determinants of Globalisation and Economic Growth in Developing Countries(Distinguished Lecture)

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    Globalisation describes the increasing integration of national economies through international trade, capital transfers, and the exchange of information or knowledge. This paper focuses exclusively on trade integration. Most economists hold that reducing trade barriers has a decisive positive effect on economic growth and poverty reduction (“openness hypothesis”). However, some economists diagnose deficient or weakly enforced non-market institutions as the major cause of slow growth. The main goal of this paper is to show that these two seemingly contrary points of view do not exclude each other. Openness is not only influenced by trade policy but also by other policies and the quality of institutions. Available data show a high negative correlation between the logarithm of tariff rates and indicators of the quality of institutions. Cross-national growth regressions demonstrate that the explanatory power of trade protection and a combined measure of openness, on the one hand, and institutional quality, on the other hand, is comparable. Therefore, it is concluded that liberal trade policies are recommendable, but must be complemented by sound macroeconomic management, micro-policy to strengthen domestic competition, and institutional improvements

    Production of Cognitive and Life Skills in Public, Private, and NGO Schools in Pakistan

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    The share of private and NGO schools in primary education has substantially increased over time, though the public sector is still a major player in this area. The present study analyses the factors determining the quality of education offered by the three types of schools and draws policy recommendations for improving primary education in Pakistan. The study compares learning achievement of Class 4 students enrolled in 50 public, private, and NGO schools located across six districts of Pakistan and in Azad Kashmir in terms of their scores in Mathematics, Urdu, and General Knowledge tests. The analysis shows that, practically, there is no gap between public and NGO schools in terms of the test scores of their students. However, a significant test score gap was found between the students enrolled in public and private schools. This gap was largely explained by family background and school-related variables, including teachers’ qualification and student/teacher ratio. However, the performance of private schools was not uniform across districts. In some districts public schools performed even better than private and NGO schools. The findings of this study highlight the need for improving the quality of education in public schools by recruiting more qualified teachers and improving overall supervision. Teacher training is the area where the public and private sectors can benefit by pooling their resources and expertise

    Net Gains from Conjunctive Use of Surface and Ground Water

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    Pakistan is fortunate enough because its soils, topography and climate are generally suitable for farming but its agriculture sector faces the problem of scarcity of the irrigation water. This paucity of irrigation supplies has forced the farmers to use the ground water to augment their surface supplies. The quality of ground water in Pakistan varies from fit for irrigation to moderately saline to sodic. Thus the tubewell owners in the marginal quality ground water areas are bound to use the tubewell water in conjunction with the surface water on their farms. Currently the farmers are using about 65.75 BCM of ground water in Pakistan [Halcrow (2002)]. The international literature is filled with the studies on conjunctive water management and its impact on crop productivity and related issues [Gangwar and Toorn (1987); Bredehoeft and Young (1983); Gorelick (1988); Lingen (1988); O’Mara (1988); Shah (1988); Brewer and Sharma (2000); Datta and Dayal (2000); Raju and Brewer (2000); Sakhtivadivel and Chawala (2002) and Chaudhary and Shah (2003)]. In Pakistan, the review of literature shows that all of the previous studies conducted in the arena of water management reported the management problems leading to the inefficiencies in irrigation application and reduction in crop productivity, [Kijne and Velde (1991); Mustafa (1991) and Siddiq (1994)]. Few of the studies took into consideration the impact of waterlogging and salinity on productivity at farm level [Meyer, et al. (1996); Prathaper, et al. (1997) and O’Connell and Khan (1999)]. None of these studies have taken into consideration the trade-offs between gross farm income, ground water and salinity at irrigation subdivision level

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