Abdul Raouf Roll No 17

TopicIntroduction of Development

Planning & Aid

Aid?“Aid usually refers to financial assistance given by richer countries to poorer countries”.

“To provide with what is useful or necessary in achieving an end”

Source:(Dictionary of Merriam Webster)

Development & Sustainable Development

DevelopmentThe capacity of a state to increase its human resource with the aim of achieving higher outcome of production for the satisfaction of the basic needs of majority of its citizens and empowering them.Sustainable development

“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs´”. (WCED 1987, p. 43).

Objectives of DevelopmentThree main objectives of Aid:

1. Raising peoples’ living levels

2. Creating conditions conducive

to the growth of peoples’

3. Increasing peoples’ freedom

Types of Aid Through Video

Basic Types of AidThere are two main types of aidDevelopment Aid or Foreign Aid

Financial aid given by governments and other agencies to support the economic, environmental, social, and political development of developing countries.

Humanitarian Aid or NGO’s Aidwhich is sent normally to a specific problem

and can be donated from a country to a country directly or through a major organization such as the UN.

Main Types of AidTwo Main Types of Aid are:

Bilateral Aid Which is assistance given by a government directly

to the government of another country. This is usually the largest share of a country's aid. It is often directed according to strategic political considerations as well as humanitarian ones.Multilateral Aid

Where multiple countries donate to a central organization and the organization determines who gets the money and for what.

Short-Term & Long-Term AidOfficial & Unofficial Aid

Short-Term AidThis is for immediate relief in emergencies such as

famines, earthquakes, floods and droughts in Material form.Long-Term Aid 

This is for economic and social development.

Official Aid when it is managed by either a government or

government agencies. Unofficial Aid

Which is administered by a non-government organization such as a charity.

Aid should help the country to improve the Living standards of poorest people

Overcome the low savings ratios

Help reduce foreign exchange outflows and reduce the dependency on private

investment.

The development of poorer countries includes

Improving the lives of the poor people

Increase the number of people who can contribute to the

growth of the economy.

Improving the quality of education

Improve the unemployment rate of the country

However, Aid cannot be the only means of incentive in promoting the development

of the country’s economy. Therefore, aid will only help an economy to develop to a

certain extent.

Ayesha Salem 19Sub Topic:

Effectiveness Of Development Aid Aid Donor's Countries

What is Aid Effectiveness?

• Aid effectiveness is the effectiveness of development aid in achieving economic or human development.

History Of Development Aid

• The international aid system was born out of the ruins of the Second World War, when the United States used their aid funds to help rebuild Europe. The system came of age during the Cold War era from the 1960s to the 1980s. During this time, foreign aid was often used to support client states in the developing world

Aid Effectiveness After War

• After the end of the Cold War, the declared focus of official aid began to move further towards the alleviation of poverty and the promotion of development. The countries that were in the most need and poverty became more of a priority. It is against this background that the international aid effectiveness movement began taking shape in the late 1990s.

Aid Effectiveness

• Research on aid effectiveness focuses on the policies and practices of bilateral and multilateral donors. The Center’s researchers analyze existing programs, monitor donor innovations, and design innovative approaches to deliver more effective aid. Research also provides insight into how policies ranging from trade to migration to investment undermine or complement foreign aid policies.

Effectiveness

• Aid effectiveness is the impact that aid has in reducing poverty and inequality, increasing growth, building capacity, and accelerating achievement of the Millennium Development Goals set by the international community. Indicators here cover aid received as well as progress in reducing poverty and improving education, health, and other measures of human welfare.

Aid

• Aid may be bilateral: given from one country directly to another; or it may be multilateral: given by the donor country to an international organization such as the World Bank or the United Nations Agencies (UNDP, UNICEF, UNAIDS, etc.) which then distributes it among the developing countries. The proportion is currently about 70% bilateral 30% multilateral.

Top 10 aid donor countries (2013)• European Union• United States• United Kingdom • Germany Japan • France • Sweden • Norway • Netherlands • Canada • Australia

Failure Development Aids

Muhammad ShafiqRoll No.6

Attention of Developing Countries

In the last half century, developed countries have paid increasing attention to the problems of developing countries. These countries pays attention on • Poverty• Poor Health • Widespread Diseases• Low Life Expectancy Etc.

Source : Tomi Ovaska (2003)THE FAILURE OF DEVELOPMENT AID, Cato Journal, Vol. 23, No. 2

Benefits of Donor's• Part of any aid constantly flows back

to donors through highly ratio.• Aid has also increased the potential

for donors to buy preferential future treatment for the business firms of their own nationality.

• Politically, aid can be seen as serving to buy increased international and regional clout through new political allies.

• Development aid is also seen as a way to advance some core values of the donors.

Why Aid Fails?

Because These Two Studies explains the failure of Aid 1. Aid has increased aggregate savings and

investments, though by less than the aid flow itself, and has led to increased economic growth in cases where the lack of capital base was the most Important factor in holding back growth.

Dalgaard, Hansen, and Tarp (2000) summarize the findings from the last 30 years and a total of 131 cross-country studies.2. Aid given to countries with good institutions and

policies has a far higher likelihood to affect growth positively than aid given to countries

of poor institutions and policies.Burnside and Dollar (2000) examined theeffectiveness of aid in a sample of 56 developing countries.

Why Aid Fails?

BecauseEffect of aid in the recipient countries. These studies have pointed out • Lack Of Institutional Infrastructure• Different Bad Social Habits And • Low Level Of Development As The Main hurdle To

Efficient Aid Delivery.• the financial aid given by the UNO agencies does not

reach directly to the individual or families who are struggling for their existence.

Vasile, Gabriel and Dan Costin. Theoretical and Applied Economics Volume XVIII (2011)

CorruptionWhile development aid is an

important source of investment for

poor and often insecure societies,

aid's complexity and the ever

expanding budgets leave it

vulnerable to corruption.

Muhammad Nadeem Roll no 10

Sub Topic :Impacts of Foreign

Aid

Lack of AidReal Picture about Aid

The overall impact shows that the aid given by Developed countries is very limited. In fact the US, the largest contributor in nominal terms, was spending, back in 2009, just 0.2% of its GDP with official development assistance (foreign aid). The health care system in America, costing 17% of the national GDP, represents, alone, almost 100 times the amount of money spent on development assistance.  (World Bank and OECD).

Working Against there Aim• Foreign aid has been accused of not promoting economic

growth and development in developing countries.  It does not

promote what it should, such as investment and less poverty.

(Peter Boone, 1996).

• In Peru, IMF increased Aid for hunger from 41% to 68 % in

1980-1983 but this thing increased Malnutrition in Peru.

(Andrew Webster)

Two Sided Picture Negative Impacts

According to (UNDP), development is much more than "the rise or

fall of national incomes".

The results of aid are mixed.

In some cases, it has neither reduced poverty nor contributed to

overall development.

It has actually increasing corruption as well as income inequality.

Consequently, poor people in under developed countries did not

benefit from the inflow of foreign aid.

Other Side of Picture• Foreign aid on positive side, has helped in boosting

the GDP growth, laid foundations of industrial and agricultural sectors, policy advice and modern technology, assisted in overcoming the budget deficits and has also funded the projects for the social sector development projects.

• But on the negative side, aid seemed to have substituted for domestic savings, increase debt burden

Positive ImpactsSome countries have improved both their GDP and human development index.

For example, Bangladesh received $1766.6 thousand in bilateral social

aid from the OECD (Organization for Economic Cooperation and

Development) countries in the years 1998 and 1999. Statistics on the illiteracy

rate and GDP show that the social aid Bangladesh received was effective. Its

adult illiteracy rate decreased from 61.1 % to 58.9% from 1998 to 2002

(World Bank).

Satish Lohani (2004) Effect of Foreign Aid on Development: Does More Money Bring More Development? Illinois Wesleyan University

Case study Oxfam cow loan scheme

• Oxfam work with local organization.• provide help to farmers in trouble.• Animals loaned are returned to the scheme.• Programme helps families to obtain food, money and basic needs.

Aid is Based on GovernmentSome even argue that it is not promoting democracy

because evidence was found that corrupt

governments tend to receive more aid than less

corrupt governments (Alberto Alesina & Weder,

1999).

Ali Hassan Roll No 33

Sub Topic:Rural Development Program

What is rural area

• Where are the people are engaged in primary industry in the sense that they produce things directly for the first time in cooperation with nature

• Rural areas are separately settled places away from the influence of large cities and towns

• Rural areas can have an agricultural character, through many rural areas are characterized by an economy based on cottage industry, mining, oil and gas exploration, or tourism

Rural Community• A group of people with a common

characteristic or interest living together in a village.

• A Rural community can be classified as rural based on the criteria of lower population density, less social differentiation, less social and spatial mobility, slow rate of social change, etc

• Agriculture is the major occupation of rural people

Life of Rural people

• Life style in rural areas are different than those in urban areas, mainly because limited services are available

• Government services like law enforcement, schools, fire departments, and libraries may be distant, limited the scope, or unavailable.

• Utilities like water, sewer, street lighting and garbage collection may not be present.

• Public Transport is sometimes absent or very limited, people use their own vehicles, walk or ride an animal.

Rural Development

• Rural development is a strategy designed to improve the economic and social life of rural poor

it is a process, which aims at improving the well being and self realization of people living outside the urbanized areas through collective process

• Rural development is all about bringing change among rural community from the traditional way of living to progressive way of living. It is also expressed as a movement for progress.

The united nations defines rural development as:

• Rural development is a process of change, by which the efforts of the people themselves are united those of government authorities to improve their economic, social, and cultural conditions of communities in to the life of the nation and to enable them

Objectives of rural development

1. To develop farm, home, public service and village community.

2. To bring improvement in producing of crops and animals living condition.

3. To improve health and education condition etc improvement of the rural people.

4. To improve villagers with their own efforts.5. To improve village communication.

SABA SARDAR 60SUB TOPIC:What is development board? Functions of planning commission and Five year plans of Pakistan

What is plan?

• A plan is a detailed proposal for doing or achieving something.

Development BoardA development board was established early in 1948 in economic affairs division to deal with questions of rapid economic development in the country.

Planning Board

• The government of Pakistan set up a planning board in 18 July 1953 to prepare a more comprehensive national plan of development.

• With Mr. Zahid Hussain, ex-Governor of State Bank of Pakistan as its first chairman and two group members.

Major Functions of Planning board

• Preparation of national plans for the economic and social plans of development of the country

• Formulation of annual development program within the framework of National Medium Term.

• Recommendations of adjustments in the national plans.

Cont….

• Evaluation of ongoing and completed projects.• Evaluation of general socio-economic situation

and co-ordination of policies.• Monitoring and implementation of plans and

the major development projects and programs.

First & Second Five Year Plan

First five year Plan (1955-1960)2011

• A system of universal primary education is compulsory.

• Free and compulsory primary education fro girls

• Plan proposed to add 4000 new schools.

Second five year plan (1960-1965)

• It provided the opening of 15200 new primary schools.

• Improvising the curriculum content

• Provision of teaching aids.• Teacher training also

received considerable attention.

Third & Fourth Five Year Plan

Third five year plan (1970-1975)

• Education will be made free and universal up to tenth class

• Literacy centers will be established all over the country in the schools.

• 61,000 additional class-rooms

Fourth FIVE YEAR PLAN (1978-1983)

• Reduce the drop out rate• Improvement in the quality

of teaching• Renovation and expansion

of 17,166 schools• In addition, 12,641 new

schools opened.

Fifth & Five 5 Year Plan

Fifth five year plan (1983-1988)

• Provision of school buildings both for existing and shelter less schools

• Construction of sheds/buildings in urban areas to supplement the space available in mosques for opening new schools.

Sixth five year plan (1988-1993)

• Improving the physical as well as human resource infrastructure by providing buildings.

• The seventh plan will provide simple and locally manufacture furniture in all new primary schools.

Seventh five year plan

• Universal access to primary education for all boys and girls.

• Removing gender and rural urban imbalances• Qualitative improvements of physical

infrastructure.• Teacher-training programs.

Muhammad Aqeel

Roll No 29

Sub TopicConclusionOn Development

Planning

Conclusion Real Picture

• The belief that foreign aid help to promote sustainable economic growth and improve the welfare in developing countries is debatable issue.

• Many billions of dollars have failed to close a trust gap between Pakistan and the international community – particularly its largest donors.

• In the words of a senior USAID official: “USAID and the Pakistani government have developed good individual programs, but collectively this does not speak to a real strategy”

Situation of Pakistan• In case of Pakistan, a brief look on foreign aid and economic

growth propose that ineffectiveness of aid is due to o Bad macroeconomic policies of the country and foreign aid may affects

economic growth positively only if the macroeconomic policies are right.• The huge inflows of external resources have failed to contribute in

economic development process of country and in the improvement of living standard of the ordinary people.

Macroeconomic policy is usually implemented through two sets of tools: fiscal and monetary policy. Both forms of policy are used to stabilize the economy

How to make Aid Effective?

Aid has a positive impact on growth in developing

countries with good fiscal, monetary, and trade

policies. Aid appears not to affect policies

systematically either for good or for ill. Any tendency

for aid to reward good policies has been overwhelmed

by donors pursuit of their own strategic interests.

What should be done ?Literature suggests that sound economic management

policy in terms of low inflation, trade openness and low budget

deficit is crucial for aid effectiveness. There is need to

implement appropriate policy measure, in order to achieve the

positive impact of foreign aid on economic growth

through minimizing budgetary deficits, lower the inflation rate and

to achieve trade openness.

What should be done ?Aid inflow is a highly unstable and unpredictable source of

external financing and it is always depend on donor’s

strategic interest. Policy makers take into account the stable

and sustainable sources of external financing like exports,

FDI (foreign direct investment) and portfolio

investment for stimulating growth of economy.

Portfolio Investment is an investment made by an investor who is not involved in the management of a company.