1. Why could Pakistan not develop despite a higher growth rate?

social payoff to foreign aid is low in a polarized society

lower the productive potential of the economy

irrigated land and human capital did not grow at the same rate as
other factors of production.

Pakistan appears stuck at the early stage of development where land

is abundant relative to physical capital and ownership of the land is
highly concentrated

PROBLEM: one with high fertility, low women's education, physical

capital scarcity and low output per capita,

2. What are some social and economic indicators that can tell the
economic progress of a nation?
quality of its institutions.

Gender disparity

Pakistan has more abuses of human rights than other

countries of its income level according to the Humana Institute
Primary enrollment

3. What do political-economic models tell about inequalities in social

and economic outcomes?

Pakistan’s social backwardness is all the more startling because

not only is it low relative
to income, but it is low after years of excessive public spending
that led to a very high public debt to GDP ratio
 Pakistan's high public debt (figure 2) and social backwardness may
have contributed to poor creditworthiness ratings by international
credit risk agencies, even compared to other countries of similar
income levels

4. What is the role of the Planning Commission and how should it

transform?

Ministry of Planning, Development and Reforms should also be

abolished, and the Planning Commission should work directly under the
prime minister.

Establish Ministry of Private Sector Facilitation’. “This ministry should

be established by merging the Ministry of Commerce and Textile,
Ministry of Industries and Production, Board of Investment, some
attached departments of the Ministry of Information Technology and
almost half of the Planning Commission.”

Each city of over one million population should have its own Economic
Development Office functioning as the ‘Planning and Development
Board’ at the city level.

5. What are the key decision-making forums in Pakistan? (This is not in

the document. You are supposed to do some research on it)