Task 1: Compare development models in SAARC countries.

Development is a process that creates growth, progress, positive change or the addition of physical,
economic, environmental, social and demographic components. The purpose of development is to
improve the living standard of population.
The process of convergence and divergence has been going on in the global economy in the last three
hundred years after the scientific discoveries and technical innovations that have fundamentally changed
the nature of production, exchange and consumption. The average growth rate in developing Asia has
been 7 to 8 percent in the last 30 years, twice the global average and three times or more of that in the EU
economies. After decades of sluggishness, growth rates in South Asian countries have been higher than
those in other regions of the world; particularly very impressive in India (5.5 to 7.0 percent).These facts
are based upon the sets of data from World Economic Outlook of the IMF and World Bank Development
Indicators (WBDI).

Different forms of development models are being followed among the SAARC countries such as
integrated rural development model, economic growth model, liberal development etc.

Let’s discuss over some of the models of rural development carried out in the SAARC countries.

1.India

Vast majority of India’s poorest people are located in rural areas. The core problem of widespread
poverty, growing inequality, rapid growth of population, growing and rising and unemployment all find
their origins in the stagnation and other retrogression of economic life in rural areas. Some of the models
followed in India are:

a) Gandhian Model of Rural Development

Gandhiji’s approach to India’s rural development was holistic and people centered. The Gandhian model
of rural development is based on some values and premises as follows:

1) Real India is found not in cities but in its villages.

2) The revival of villages is possible only when the exploitation of villages is stopped. Exploitation of
villages by city dwellers was “violence” in Gandhiji’s opinion.

3) Simple living and high thinking implying voluntary reduction of materialistic wants and pursuit of
moral and spiritual principles of life.

4) Dignity of labour, everyone must earn his bread by physical labour and one who labours must
necessarily get his subsistence.

b) Marxist model of rural development

Rural development in India is dependent on Marxist theory which saw class straggle as the engine of
social change and development. In the context of rural development, the theory provides a useful caveat
that while identifying the determinants of rural development, we should critically examine various inter-
sectorial linkages (both backward and forward) and interactions and determine whether they are
beneficial to rural people or not.

2. Bangladesh

The model followed in Bangladesh is Comilla model of rural development. This model was the outcome
for innovation in rural development in low income and densely populated agrarian society. It was
expanded all over the country in 1979 AD. The major components of the comilla model are

1. Decentralization and coordinated rural administration.

2. Organizing the farm and non-farm population through a new system of rural co-operatives.

3. Agriculture mechanization and irrigation.

4. Building rural infrastructures through local level planning.

Achievements of comilla model

1. It has replaced the old colonial approach-“development through officers”.

2. It has solved some critical problems like low agricultural productivity, food deficit, rural
unemployment.

3. It has introduced innovative methods like

 Investment can be made in rural areas.

 Leadership can be developed in rural areas.
 Bottom up planning can be introduced.

3. Afghanistan

Nearly 80% of Afghanistan’s population lives in rural areas and depends heavily on livelihoods in the
agriculture sector, which in turn depends on agricultural production. Due to endless decades of civil war,
revolution and instability the people of Afghanistan had suffered from lack of rural development and
economic growth. Rural Afghanistan is blessed with renewable energy sources such as hydro, solar, wind,
etc. but due to lack of modern forms of energy generation means these resources are being wasted.

However, now the government of Afghanistan had begun different rural development programs in rural
areas such as NSP (National Solidarity Program) under the ministry of rural rehabilitation and
development which has been responsible for the building of thousands of kilometers of roads in various
communities for all 34 provinces of the country.

4. Nepal

Different kind of development programme is being carried out in the rural areas of Nepal at different time
period of time and some programmes are as:
A.Tribhuvan Village Development Programme

This was the first systematic effort carried out at rural development which was made in 1952.This was
multifaceted program which included every aspects of the village community needs such as education,
input supply for agriculture, drinking water, agricultural extension.

B. Panchayat Development Programme

This programme was introduced with introduction of the partyless political system of panchyat.
Panchayat development land tax was introduced in 1966 to enable local to generate resources for rural
development. It was initially introduced in 12 village’s panchayat of jhapa but was later suspended in
1978.

c. Small farmer development programme was launched in 1973 with support of UNDP. Its main objective
was to brought the small farmers into main stream of development.

Pakistan

According to the growth and development Pakistan falls among the developing countries in third cadre.
The first initiative of development in rural level was carried out with the V- AID (Village agricultural
industrial development programme). After the introduction of system of basic democracies in 1959 Ad. It
was aimed at decentralization of governmental administration under which many schemes were initiated
such as

1. Rural Development Programs

2. Agriculture Development Bank Of Pakistan

3. Agriculture Development Corporation

4. Comilla Experiment

Along with it , Pakistan follows macro econometric model which has served as important tools of analysis
for macroeconomic forecasting and policy assessment. Among the different models, macro econometric
models are useful because they depict the structure as well as temporal behavior of the macro economy.
Macro econometric models also provide a useful means of tracking the implications of a variety of
shocks, both exogenous and policy driven within and between economies and regions. Given the global
macroeconomic environment, Pakistan has been following liberalization policies since early eighties.
These policies include liberalization of trade and payments system, shift to the managed float exchange
rate regime in 1982 and then to the free float in 2000, more autonomy to the State Bank of Pakistan,
greater role of the market forces in the determination of interest rate, permission to the residents to hold
bank deposits in foreign currency and host of other reforms in the financial sector.

Srilanka

Srilanka is an early achiever in the millennium development goals (MDG). The government is using
Mahinda Chintana policy, a 10 year plan in rural areas of the country. Its mission is to develop regionally
dispersed urban growth centers and small and medium sized township and to integrate them with well
serviced rural hinterland, as well as domestic and international market through provincial and rural acess
road.

The Kurunegala Rural Development Project 

It aims to assist in raising productivity, employment, incomes and living standards and to develop a
replicable model for rural development for other districts in Sri Lanka. The project will provide for
rehabilitation of existing irrigation schemes accompanied by improved water management practices to
fully exploit the irrigation potential, and for programs for replanting/underplanting, intercropping and
fertilizing of smallholder coconut plantations. The project will also strengthen agricultural extension
services, improve the supply of input services such as fertilizer distribution and seeds supplies, and lay
the foundation for a viable agriculture credit system. These directly productive investments will be
complemented by investments in transportation, health, education, water supply and rural electrification.

Another program is Samurdhi Programme which generate a vast volume of investible funds. This
program appear to reach large no of poor which were excluded by other program. It is successfully
insulated from capture and is supposed to be more stable.

Bhutan

The cornerstone of Bhutan's development approach is the concept of Gross National Happiness

(GNH). Bhutan's fourth King, Jigme Singye Wangchuck, first introduced this idea to the world in the
early 1970s when he proclaimed that “Gross National Happiness is more important than Gross National
Product”. Hydropower is the backbone of the Bhutan’s economy. It has become the greatest exporter of
the hydropower to India which had contributed around 45% of country’s national revenue.  Besides,
economic growth, preservation of environment, and preservation of culture and tradition are considered in
achieving sustainable development that promotes happiness of the present and future generation, so they
mainly focus on GNH.

Maldives

In early 1980s Maldives was one of the world 20 poorest country in the world but within 2012 the country
has impressive improvement in health and education with life expectancy of 74 yrs and 98.8 % literacy
rate. The rural development and economy of Maldives is mainly depended on its tourism industry.  Its
main natural resources consist of fisheries and a marine environment conducive to international tourism.
In considering the costs and benefits of international tourism, attention is given to such factors as the
extent to which the tourist industry employs local inhabitants (as distinct from foreigners) and provides
alternative employment opportunities for them.

Conclusion

So, in brief we are able to know that different country are following different development models in
different period. And many more strategies and project are being carried out which is ultimately helping
the country to boost up. And poor countries like Maldives and Bhutan are being able to do show such
impressive improvement on short time using appropriate development model. So each country should
follow the far sighted development models and mainly focus on the resources available in the country for
their growth.
REFRENCES

https://www.slideshare.net/RajeevKumar299/16saarc-countries-rural-development-129689384

https://ecomod.net/system/files/saarc_rev_Ecomoc016_texworks.pdf

https://www.adb.org/sites/default/files/publication/31110/development-capital-markets-saarc-member-
countries.pdf
Task 2: Compare the development models in Europe
Europe is second smallest continent of the world which is composed of the westward-projecting
peninsulas of Eurasia (the great landmass that it shares with Asia) and occupying nearly one-fifteenth of
the world’s total land area. It is bordered on the north by the Arctic Ocean, on the west by the Atlantic
Ocean, and on the south (west to east) by the Mediterranean Sea, the Black Sea, the Kuma-Manych
Depression, and the Caspian Sea.

After the world war II the countries of Europe has signed many treaties and for creating peace and
making war unthinkable the European union has came into existence. On 1 November 1993, under the
third Delors Commission, the Maastricht Treaty became effective, creating the European Union with
its pillar system, including foreign and home affairs alongside the European Community. This in turn led
to the creation of the single European currency, the euro . European Union (EU) is a political and
economic union of 27 member states of Europe. Its members have a combined area of
4,233,255.3 km2 (1,634,469.0 sq mi) and an estimated total population of about 447 million.

Since 2000, the European Union assumed profound transformation stage in the economic system, by
ensuring economic and social cohesion. The aim is both compatible with EU overall development and
harmonization of new members in full and global level. Today the world is facing three models of
economy and society, being in the same time also social and economic development models: the
European model, American model and Asian model. The European model includes three elements:
economic growth, political freedom and social cohesion. After the second world war European countries
has undergone many social development which mainly focus on health care system, education,
unemployment insurance, labor protection and regulation, etc. The types of European social model are
listed below:

 The Nordic model, in Denmark, Finland, Norway, Sweden and the Netherlands

 The Continental model, in Austria, Belgium, Czech Republic, France, Germany, Hungary,
Luxembourg, Poland, Slovenia
 The Anglo-Saxon model, in Ireland and the United Kingdom
 The Mediterranean model, in Greece, Italy, Portugal and Spain

Nordic Model
It is the social model followed in countries mention above (Denmark, Finland, Norway, Sweden,
Netherland) . It is characterized by a high degree of redistribution and is the most efficient system of
social protection, promoting social inclusion, provides social services to all categories of citizens and
open dialogue and social cooperation between social partners and the government. This type of economy
stands among the most competitive European economy. It is not able to sacrifice social cohesion to
improve economic performance of countries that have adopted this model. While there are differences
among the Nordic countries, but they all share a broad commitment to social cohesion, a universal nature
of welfare provision in order to safeguard individualism by providing protection for vulnerable
individuals and groups in society and maximizing public participation in social decision-making. It is
characterized by flexibility and openness to innovation in the provision of welfare. The Nordic welfare
systems are mainly funded through taxation.
Despite the common values, the Nordic countries take different approaches to the practical administration
of the welfare state. Denmark features a high degree of private sector provision of public services and
welfare, alongside an assimilation immigration policy. Iceland's welfare model is based on a "welfare-to-
work" model while part of Finland's welfare state includes the voluntary sector playing a significant role
in providing care for the elderly. Norway relies most extensively on public provision of welfare.
The opponents of this model criticize high tax rate, high degree of governmental intervention, and low
GDP that ultimately hinder the economic growth. It redistributes the assets and limits the money for
personal spending making people rely more on government. The major challenges of this model are
ageing population and immigrants.

Continental model

The Continental model has some similarities with the Nordic model. Nevertheless, it has a higher share of
its expenditures devoted to pensions. The model is based on the principle of "security" and a system of
subsidies which are not conditioned to employability. This model is existed in countries like Austria,
Belgium, Czech Republic, France, Germany, Hungary, Luxembourg, Poland, Slovenia.
In this model, employment of labor is the basis of social transfers and benefits granted are much smaller,
being dependent on the income obtained previously. The labor market is regulated by the state so that it
has reduced workers flexibility. Taxation is high as compared to that of countries that have adopted
Nordic model, and this leads to a lower capacity to create jobs in the private sector. Unemployment
benefits are quite high in relation to wages, which is urging citizens to stay home instead of looking for a
job and, of course, this involves high unemployment rates. Countries in continental model have a lower
income inequality than
Anglo-Saxon countries sub-model due to higher spending on social protection made in the past. Another
important aspect of the Continental model is the disability pensions. The "social" part of the model deals
with providing equal economic opportunity and not for the redistribution of wealth. Indeed, Rhine
capitalism is often referred to as successful combination of the American model of Capitalism with
European Democratic Socialism.

Anglo Saxon model

Anglo Saxon model is followed in UK and Ireland. The Anglo-Saxon model features a lower level of
expenditures than the previous ones. Its main particularity is its social assistance of last resort. Subsidies
are directed to a higher extent to the working-age population and to a lower extent to pensions. Access to
subsidies is conditioned to employability (for instance, they are conditioned on having worked
previously). Anglo-Saxon model reflects a liberal approach to welfare system, where social assistance is
limited and state responsibility is transferred to the care of the individual in that it has a private system.
Anglo Saxon model follows the same principle i.e. individual responsibility, and labor apply where the
decision to seek a job belongs to the individual. State allocates small amounts
of labor market regulation policies. In Ireland, government intervention has improved the country's
economy so that it has become the second largest economy in Europe in terms of economic development.
Employment of labor is relatively high in Anglo-Saxon countries due to a reduced income tax and due to
low unemployment ratio in relation to salary. The Anglo-Saxon countries have the lowest unemployment
rates due to small amounts of unemployment benefits paid by the state. Efficiency feature is successfully
achieved by this sub-model but when it
comes to fairness, this sub-model shows notable differences in the distribution of income in society. In
some aspects this model is in direct conflict with the religious and cultural factors, but profitability
became the overarching principle of this model and overrode any other considerations. In one analysis, it
could be seen that this is not true if taken as a standalone principle, but the argument was that the
marketplace decided which was important and in the marketplace, profits became the key guiding
principle.
Mediterranean model

The Mediterranean model is followed in southern European countries such as in Greece, Italy, Portugal
and Spain who developed their welfare state later than the previous ones (during the 1970s and 1980s). It
is the model with the lowest share of expenditures and is strongly based on pensions and a low level of
social assistance. There exists in these countries a higher segmentation of rights and status of persons
receiving subsidies which has as one of its consequences a strongly conditioned access to social
provisions. According to this model, the state has a minimal role in terms of social protection, with social
benefits only to certain categories of people. The labor market is controlled by the state is highly
fragmented and rigid. Wage negotiations are centralized. In this model, state functions are taken to some
extent by the family. An important role in social and productive throughout is played by the family. Long-
term unemployment is particularly high among young people, while social spending is low budget. The
labor market is rigid because the state is regulating this market. Differences in income are explained in
terms of a smaller state and a redistributive economic system unable to significantly increase the
employment rate of workers. In some countries such as Italy, Portugal and Spain income differences can
be explained by the existence of large regional differences.
MEM (Mediterranean Economic Model) government’s economic policies aim to maintain adequate level
of growth at the same time as decent working conditions and welfare opportunities. It can be explained as
a civil approach to economics which unites the Mediterranean countries and endorses an idea of the
market as “anthropic and altruistic” (in the sense of a market that concerns man) in which the state,
having recognized its central role in economic growth, leaves space for civil society (the third sector).

Europe 2020, a new model of economic development

Along with these models existing, a new vision on the development of Europe economy has come into
existence based on closer coordination of economic policies in order to generate
growth, employment levels, high social cohesion, which would contribute to economic and financial
recovery of European union. Europe 2020 Strategy aims for increasing young labor employment, older
workers and low skilled people. The financial crisis has had a major impact on the ability of European
enterprises and governments to finance investment and innovation projects. To achieve its objectives for
Europe 2020, the EU will need: a regulatory environment
that promotes efficiency and safety of financial markets, innovative instruments to finance the necessary
investments – including through public-private partnerships.
Conclusion

Overally, these models existing in the European union are capitalistic. These models have been found to
based on the two criteria i.e. Efficiency and equity. Based on these criteria the Nordic model is found to
be best in terms of performance. The continental model should improve its efficiency whereas the Anglo-
Saxon model should improve its equity. Whereas Mediterranean model has under perform in both criteria.
Europe consists of world’s most powerful nations and formation of European Union has ultimately build
good relationship among countries.

REFRENCES

file:///C:/Users/Acer/Downloads/economierurale-406%20(2).pdf

http://store.ectap.ro/articole/853.pdf

https://en.wikipedia.org/wiki/European_social_model