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Pak economy vs indian economy

Discussion in 'Pakistan Economy' started by RAPTOR, Apr 5, 2006.

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  1. RAPTOR

    RAPTOR FULL MEMBER

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    Comparing Pakistan and india is like comparing apples and oranges. india is in the same league as Congo. "World Bank"


    World Bank's $1bn slap for India
    By Siddharth Srivastava

    NEW DELHI - In a stinging rebuke to India's ingrained corruption and inability to really deliver on its social and health missions, the World Bank (WB) has decided to withhold more than $1 billion aimed at health programs in the county due to allegations of fraud and misappropriation of funds.

    India likes to project itself as a modern, rising economic powerhouse. But the World Bank's action places India on the same level with a motley group of rogue countries such as Bangladesh, Chad, the Congo, Kenya and Argentina that have suffered the same ignominy.

    "The World Bank strongly believes that corruption and leakages are a major development issue, for they undermine the intended
    outcomes for which public money is spent," said the agency. "The government of India shares this concern."

    Funding has been frozen for the second national tuberculosis control project and the Karnataka health systems project, both elements of the Bank-backed reproductive and child health program. While the WB has launched a probe into various allegations of corruption in the procurement of pharmaceuticals, the Finance Ministry has urged states and federal departments to ensure complete "transparency and integrity" in awarding contracts.

    The Indian Express quoted Finance Minister P Chidambaram as having told World Bank chief Paul Wolfowitz: "We are on the same wavelength ... complete transparency and integrity in project implementation is imperative." Recently, the Finance Ministry evolved a Governance and Accountability Action Plan designed to strengthen governance, in keeping with the bank's wishes.

    The allegations put a question mark on efforts by the government to ameliorate the negative effects of economic growth in the country through massive rural infrastructure, health and education spending. To this end, India has also been trying to rope in the bank to garner funds and expertise.

    In August, the WB announced it would lend India $9 billion over three years for development projects in rural areas. Wolfowitz said the funds would be used to sustain the growth needed to lift 250 million people out of poverty. Over 260 million of India's 1.1 billion people live in abject poverty, despite economic growth of 6% per annum or more since free market reforms were initiated in 1991.

    While New Delhi has other sources of funds (especially the growing kitty from a services tax) to meet the challenge of lifting up the poorest, the unhappiness expressed by the WB is symptomatic of New Delhi's extremely bad record in getting the money to those who need it.

    The government of Prime Minister Manmohan Singh launched a massive project of rural employment guarantees in August. It plans to spend more than $40 billion per year to be implemented at the behest of public servants across the country.

    In detail, the government will provide a guaranteed wage of close to $1.5 per day to all rural households in 200 districts for a period of 100 days. Some 90% of the expenditures will be borne by the federal government, the remainder by the states. New Delhi also announced an urban renewal scheme in December that provides for disbursing funds to upgrade the infrastructure of 63 selected cities. Over $12 billion has been earmarked for the project and will be disbursed over seven years.

    Unfortunately, the implementation of such programs is invariably tardy and creates a huge constituency of corrupt petty bureaucrats. There have been various attempts to put a figure on the dimensions of Indian corruption. By some accounts, the government loses $50 billion due to tax evasion; $10 billion due to delay in projects due to bureaucratic red tape; and $7 billion to various forms of outright corruption each a year.

    Former prime minister Rajiv Gandhi famously said that for every rupee spent by the government for development less than a tenth of the amount actually reaches the supposed beneficiary. Sadly, this is probably not an exaggerated figure.

    Studies by the Berlin-based Transparency International (TI) and other indices such as the Corruption Perception Index have consistently ranked India as one of the world's most corrupt countries. In last year's TI report, India secured a lowly spot at number 88 (out of 159 countries surveyed) of the most corrupt places on the planet, along side Gabon, Mali, Moldova, Tanzania and Iran.

    The World Bank has labeled the Delhi Development Authority that oversees urban housing and commercial property in the national capital as the most corrupt organization in India. A Planning Commission study has revealed that less than 50% of food grains meant for people living below the poverty line actually reached them. Such pilferage amounted to almost a billion dollars.

    One cruel consequence of social and economic inequity has been a vicious Naxalite and Maoist rebellion throughout the Indian heartland. While the world tends to focus on terrorism in Indian Kashmir, and to a lesser degree, strife in the northeastern states and other parts of India, a bloodier battle is being waged in the hinterlands of Andhra Pradesh, Madhya Pradesh, Bihar, Jharkhand, Chhatisgarh, Orissa. In many places the Maoists and Naxalites rule with the gun. Although there are several causes for the Naxalite violence, one of the main reasons has been the absence of land reform and the persistence of extreme poverty.

    The Maoists feed on the cadres of tribals and dalits (considered to be of the lower castes) who have been dispossessed of their lands. They also exploit the alienation that many people feel about indifferent state governments. Although the police and landlords remain the two biggest targets of the Maoists, the communist rebels recently captured a train with more 250 passengers in a remote part of Jharkhand.

    In February, Maoists attacked a truck convoy in Chhattisgarh, killing 24 people and injuring 32. In one of the biggest attacks staged in November, over 1,000 rebels meticulously planned and then executed the release of 350 of their comrades lodged in the Jehanabad jail in Bihar.

    A study by the Home Ministry says murders of police personnel by guerrillas jumped 53% to 153 in the past year, while 516 civilians were killed, an 11% increase on the previous year. In the early 1990s, the number of districts affected by Maoist violence stood at just 15 in four states. It has now risen to 170 districts out of a total of 602 in the country.

    The government has tried to shine more light on aid transactions by enacting the Right to Information Act that enables greater public scrutiny of projects and programs. However, as is apparent by the bank's rap, a lot more needs to be done.

    Siddharth Srivastava is a New Delhi-based journalist.

    http://www.atimes.com/atimes/South_Asia/HD06Df04.html
     
  2. Bull

    Bull ELITE MEMBER

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    I went thru the entire article and i didnt see even a single line drawing paralel btw indian and pakistani economies.What do u gain by just trying to represent facts stated?

    Post the link as it is and i wont rebuff a single claim thats stated in the article.india though growing steadfastly has got lots of catching upto to do when it comes rural health and education.Corruption is also widespread on the ground levels.
     
  3. RAPTOR

    RAPTOR FULL MEMBER

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    Pakistan to become regional trade hub



    LAHORE, March 13: President Gen Pervez Musharraf says Pakistan will become a trade, investment and energy corridor for the entire region. Speaking at the foundation stone laying ceremony of the Lahore Expo Centre on Monday, the president said the country was rising and its economy improving fast. Pakistan would continue to rise to new heights and would develop as a trade, investment and energy corridor, he said.

    Speaking about the seven-point rapid export growth strategy given by the federal government in the trade policy for 2005-06, he said he would do his best to seek Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) with countries like the US, China and others.

    He, however, urged the businessmen and exporters to add value to their products. He said apart from the textile sector businessmen should focus their attention on adding value to the dairy and agriculture products. He said Pakistan was the fifth largest producer of milk in the world. There was a lot of scope for adding value to the dairy products. “Bring about a white revolution (through value-addition in the dairy products),” he urged the private sector. Similarly, he added, there was a dire need of value-addition in the food and food processing industry.

    Gen Musharraf also recalled the efforts made by his government since taking over power in October 1999 to turn the economy around. He said his government had capped defence budget despite increased threats and 10-month long military build-up (with India in 2002), reduced expenditure on establishment and plugged haemorrhage of public funds to bring down fiscal deficit to less than four per cent from over eight per cent, as well as increased exports, enhanced foreign remittances and got bilateral debt rescheduled from the Paris Club to improve the external balance payments. Foreign direct investment (FDI) also grew to $1.5bn last fiscal year from $400m in 1999, and was expected to rise to $3 billion at the end of the current financial year.

    He sought to dispel the impression that the economy had started to turn around after the fateful events of September 11, 2001. “The results of our prudent economic policies had begun yielding results long before that,” he claimed. He said the external balance of payments surplus, which stood at $2 billion last year, was trimmed by increased imports this year. But he was hopeful that the imports would ultimately boost the country’s exports, which were already expected to cross the all-time high of $17 billion this fiscal from a mere $7.8 billion in 1999. He said this was made possible by the government through diversification of export markets and exportable products.

    He said the Lahore Expo Centre would act as a catalyst for boosting exports. He was glad to note that the project was being implemented through public-private partnership programme.

    Earlier, Commerce Minister Humayun Akhtar Khan said Pakistan’s exports this year would comfortably exceed the target of $17 billion. He said his ministry was now focussing on domestic commerce, adding that studies had been undertaken on the issue. Some major initiatives on domestic commerce would be announced in the next trade policy, he said.
     
  4. RAPTOR

    RAPTOR FULL MEMBER

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    i never knew india was poorer than sub-saharan Africa and so corrupt.


    WB halts India’s funds

    NEW DELHI, April 5: The World Bank’s India country head has said health project loans have been put on hold because of corruption worries and urged the government to plug leaks in social programmes. The comments were published on Wednesday in an opinion article by Michael Carter in the Indian Express after it reported this week that more than half a billion dollars in loans to India, the agency’s largest aid recipient, are stalled because of corruption complaints.

    “If India truly wants to take the fruits of is rapid economic growth to every section of its diverse society, it needs to plug the leaks in its public expenditure,” Carter wrote in the article.

    The World Bank has been investigating complaints received a year ago that fraud occurred in the purchase of medicines for the program.

    “The investigation is still ongoing but we have shared our findings so far with the government of India,” Carter wrote.

    “To allow more time for discussion between the bank and the government of India on the most effective ways to address these issues ... we have postponed consideration of a second RCH program and two other health sector loans.”

    Together, these loans total some 660 million dollars, according to the Indian Express report.

    The World Bank country chief went on to say the incident is not unique and that corruption has gutted many ambitious and expensive public welfare programmes in India.

    “There is a very poor connect in India between the quantum of public money disbursed and the accessibility and quality of services allocated,” he wrote.

    As a result, many health and quality-of-life indices in India compare unfavourably to those in poorer countries, such as neighbouring Bangladesh or sub-Saharan African nations, Carter said.

    “Most tellingly, 47 per cent of India’s under-three infants are undernourished — double the rate of sub-Saharan Africa.”

    London-based Corruption watchdog Transparency International ranked India the 88th most corrupt country out of the 159 surveyed in a report released last year that said citizens forked out 4.6 billion dollars in bribes in 2005 to get public services like water.—AFP
     
  5. Owais

    Owais SENIOR MEMBER

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    My friend satan, u must agree on the fact that indian economy is growing faster than pakistan's economy. they have 7+% GDP last year and have foreign excahnge reserves of $126+ billions. and we just have $11.6billions.
     
  6. Neo

    Neo RETIRED

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    I second that!
    Lets not be too patriotic and stick to reality!
     
  7. Kaiser

    Kaiser FULL MEMBER

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    Last time I checked Pakistan had a growth rate of 8.4% while India haad a growth rate of 6%. know tell me who has a faster growing economy?

    Pakistan will soon be a major trade hub for the middle ease,central asia,China, and possibly India.Gwadar port within a decade of operation will probaly surpass Dubai port and will be a leading trade hud for the robust economy of central asia nations.Pakistan is also making large stride in IT and telecommunications.
     
  8. SMC

    SMC PDF VETERAN

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    This is some funny shit:lol: :lol: :lol:
     
  9. EagleEyes

    EagleEyes ADMINISTRATOR

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    Guys keep it down, and SATAN stop the crap.
     
  10. Kaiser

    Kaiser FULL MEMBER

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    I dont see anything wrong that satan is doing accept telling the truth.Pakistan in the future will surely be a reginial and world hub for oil,gas,IT and what not. While in the past decade Indian poverty remained at the same level while last year alone we ruduced poverty by 6-7% and inshallah by 2015 will remove it entirely!
     
  11. EagleEyes

    EagleEyes ADMINISTRATOR

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    My statement was directed at this statement of SATAN. You have your views, i have my own. ;)
     
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  12. Comanche

    Comanche FULL MEMBER

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    i read the article and that statement was made by the world bank, not SATAN. he is just quoting from the article.i dont see anything wrong with it.
     
  13. EagleEyes

    EagleEyes ADMINISTRATOR

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    Thats the only thing. I would like to get source from SATAN too.

    Thanks.
     
  14. Comanche

    Comanche FULL MEMBER

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    my cousin went to india last month as part of a NGO and they said it is even worse that sudan and haiti. the india we see on tv is not the same india you see in reality.instead of spending $20 billion a year on defense it should feed its 700 million dirt poor people who have no axcess to clean water or even toilets!
     
  15. Comanche

    Comanche FULL MEMBER

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    agreed 100% . india is poor and its infrastructure is below congo i read but they have very large reserves and a lot of jobs are being outsourced to india now because india has a history of doing menial jobs for other people and this way they make $$ and add to their economy and also india is also a huge market. but still its very poor and dirty and way too many ugly people.but the people living next to pakistan arent bad looking because they are closer to the border i guess.
     
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