Question

Answer the following questions regarding the case study 2 about the comparative economic development between Pakistan and Bangladesh (end of chapter 2):

a. Why did Bangladesh score the same NHDI than Pakistan for 2011 even though at the time it was a poorer country than Pakistan according to income per capita and percent of poverty? Explain.

b. Is it true that “Pakistan is a clear example of economic growth without development” . Justify your answer.

Answer 1

a)

The NHDI include the informations about the level of per capita income, average years of schooling, and the poverty level in the economy.

The level of education in Bangladesh is relatively high. Therefore it fared well in term of education when compared to the Pakistan.

For the income inequalities are larger in the Pakistan relative to the Bangladesh. Further, Bangladesh political system is characterized by the democratic setup. Its economic and political policies are also influenced by the the fanatic ideas but not as much as in the Pakistan.

b)

The economy growth in the Pakistan is sustaining and it is clicking comfortable level of growth. But side by side, the growth is not being shared by all sections of society. Income inequalities and wealth inequalities are witnessing significant rise. The development is accompanied by fall in income inequalities, fall in the poverty and fall in the unemployment rate. But income inequalities and poverty are still high in the Pakistan. Therefore we can conclude that Pakistan economy is growing but development is not taking place. Development will take place only if there will be a fall in the income inequalities and the poverty level.