QUESTION NO 1

ANSWER:

Poverty:

Poverty is the relative term, a condition that one can only be defined by comparing the circumstances of
one group of people or an entire economy with another one

Poverty is of two types i.e.

• Relative poverty

• Absolute poverty

RELATIVE POVERTY

Relative poverty is defined as the condition in which households receive a less than half income as
compared to the average median incomes

EXAMPLE

A person of a family with two children currently needs to earn 10,000 in order to stay out of relative
poverty.

Relative poverty can be understood by this phenomenon that a person can scrape by on the basics but
he/she cannot afford the normal opportunities in order to live in ordinary pattern.

ABSOLUTE POVERTY

Absolute poverty can be defined as when family income is under a specific level, which makes it
unimaginable for the individual or family to even income for the basic needs of life including food,
house, safe drinking water, training, education, medical care etc.

EXAMPLE

• In this relative condition of poverty, regardless of whether the nation is growing economically it
has no impact on individuals living beneath the poverty line.

• Absolute poverty analyzes families dependent on a set income level and this level differs from
nation to nation depend upon its general economic conditions.
• The idea of relative poverty determines the poverty line as a point in the appropriation of
income or consumption and, consequently, the poverty line can be refreshed naturally over the long run
for changes in expectations for everyday comforts.

• The decision of the point as relative poverty line relies upon the view of the investigator.

A very solid perspective on social definition of the importance of poverty and characterize relative
hardship as having use (or income) not exactly normal use (or income) standard winning in the general
public. The public normal per capita every month use was at Rs 1163 of every 2001-02.

• Taking this perspective on relative poverty propose that 76.4 percent were poor in the nation in
2001-02 about 63.5 percent of them were situated in metropolitan regions and 81.2 percent were in
provincial regions.

• Be that as it may, this is a high impression of characterizing relative hardship. Relative poverty in
non-industrial nations is generally characterized as having per capita utilization or income under three-
fourth, two-third and half of public normal income or utilization use standard winning in the general
public.

• The overall poverty limit is characterized as a fixed extent of normal per capita consumption of
all families after grown-up comparable change. To characterize the relative neediness, three edges
reflecting low, medium and high view of relative hardship in the general public is picked.

• These three cut-off focuses might be characterized as 50%, 66.6 percent and 75 percent of
public normal per capita consumptions. In Pakistan, 50%, 66.6 percent and 75 percent of public per
capita month to month consumption ends up being at Rs 581, Rs 775 and Rs 872 in 2001-02,
individually.

• Utilizing these cut-off focuses recommends that 15.5 percent, 40.7 percent and 52.3 percent of
all people were poor in the nation in

• 2001-02.This recommends that commonness of relative poverty is exceptionally touchy to the

decision of the cut-off point and is significant in deciding the degree of relative poverty.

• While investigating the degree of relative poverty at provincial and region level, the approach
embraced here is predictable with the one continued in the investigation of supreme poverty.

• Taking a moderate perspective on relative poverty, the medium cut-off purpose of two-third or
66.6 percent of public normal per capita utilization consumption has been decided to introduce relative
poverty gauges for 2001-02.

IMPORTANT FACTOR IN ECONOMIC DEVELOPMENT

Notwithstanding, the outcomes dependent on 75 percent of public normal per capita utilization use are
likewise revealed in. Since income of an individual is the most significant pointer that decides the
current social and monetary status of a person.
SOLUTIONS TO POVERTY

Small steps and policies can be made to remove poverty some solutions are as follows:

 Creating Jobs
 Allocation of proper time and resources
 Providing healthcare
 Empowering Women
 Micro financing

QUESTION NO 2

ANSWER

Neo-Colonialism

Neo-Colonialism was firstly described by the Ghanaian president is Nkrumah in early 1960s. He says that
the essence of neo-colanialism is that the state which is subject to it is in terms of theory, independent
and the different type of trapping s of the international sovereignty. The economic system and its
internal policy are directed from the outside in its real term.

Colonialism

The second stage is called colonialism in which potentially allowed greater profits due to the introducing
of the more efficient systems than the merchant capitalism.

Similarities:

After the struggling power of the European countries to control over the land, people and the raw
material by the technological innovations in the system of transport and the communication like
steamship and the telegraph. On the other hand other, after the Second World War the European
powers are weakened day by day in the stage of neo-colonialism.

In neocolonialism, the economic grip on the raw material and the power of labor is nominally
independent by the growth of multi- national corporations. On the other hand, the colonies are the
cheapest source of the raw material for manufacturing the different goods.
In neocolonialism there is an increasing concentration of capital and integration of production in a world
scale. On the other hand in colonialism inaugurated the real pattern of large scale labor migration and
displacement is occurred in the world.

Differences

Controlling on political system:

Neo-colonialism is a new form of colonialism in which the domination of socio- economic from the
outside does not rely on the direct control on the political system. On the other hand, in the stage of
colonialism the introduction of the more efficient systems of farming and the mining and it’s also greater
control on the political system to overseas the territories for the development of industrial capitalism.

Time period:

The period of the neo-colonialism of the early 1960s and the main period of colonialism is 1850 and the
1900.

Concept of colonies:

Many of the colonies had won their independence in the period of mid 1960s on the other hand the
concept of colonies had been ended in the 1970s.

Concept of capitalist penetration:

The concept of capitalist penetration of the colony on the base of one main company to which the
authorities granted the rights of the monopoly that produced the legal powers over the use of land,
taxation in the country. On the other hand, in neo- colonialism the facilitating of the penetration was
stronger than the stage of colonialism.

Critical Analysis of neo- colonialism in Pakistan

Pakistan was enforced into pursuance of a neo-colonial capitalist model in which authoritarianism and
economic growth were blended together, this trend is continuing today even Pakistan could not build a
strong constitutional base and has been threatened by challenges from the military and is still striving to
find a stable and effective form of government

At the first century of their independence, Pakistan and India were rated among the most deprived
region of the World,

Still the status of pakiatan and india not much improved in the year 2007. Though, over the last decade
these two countries have witnessed growth but it has also witnessed a rise in inequality.
The profile of human deprivation in Pakistan and India demonstrates a somber picture.

It reveals that 28 per cent of total population in India and 33 per cent of total population in Pakistan is
living below the poverty line. Public expenditure on education in the years 2000-2002 was only 4% of
GDP in India and 1.8 % in Pakistan.

Public expenditure on health in the year 2002 was only 1.3 % of GDP in India and 1.1 % in Pakistan. In
contrast, the defense expenditure as % of central government expenditure was 14.2 % in the year 2003
in India and 23.9 % in Pakistan.

The broad definition then includes those societal conditions that promote personal growth, economic
growth, equality in the distribution of wealth, and political liberty. This perspective argues for
introducing equity and efficiency in economic development by creating a link between growth and
human development through investment in education and health, skill development, job creation and
women’s empowerment and reducing military expenditure. By taking these measure we can hope for
the better solutions to the problems in which Pakistan can grow from underdeveloped country to
develop country