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Friday, August 21, 2009

Demerits of Money

Friday, August 21, 2009 - 0 Comments

Money do doubt has played a very significant role in the economic development of a country. It is infact blessing to mankind but this blessing has also a darker side. “Money is a good servant, but, bad master” means that money is good so long it remains under control but then it is not efficiently managed; it is then a source of peril and confusion. Money has proved dangerous in several ways. The major evils of money are as under.
Some economists are of the view that money is responsible for economic instability that is to be found in capitalist economics.
When there was no money, saving was not divorced from investment. Those who saved also invested. But in monetised economy, saving is done by certain people and investment by some other people. Hence it does not follow that saving and investment should be equal. When saving is a community exceeds investment than national income, output and employment decrease and the economy is engulfed in depression. On the contrary, when investment exceeds saving (i.e. investment financed not by genuine savings but through deficit financing) then national income, output and employment increase and there is spell of prosperity. But if the process of money creation and investment continuous beyond the point of full employment inflationary situation will be created. Hence disparity between savings and investment resulting from the creation of money is said to be the main cause of economic fluctuations.
The main changer of money lies in its liability of being over-issued in the case of inconvertible paper money. The over issue of money may result in hyper-inflation. Excessive rise in prices hits hard the consuming public and the fixed incomists. It engenders speculation and inhibits productive enterprises. If also upsets detor-creditor relationship. If adversely affects distribution of income and wealth in the community so that the gulf between rich and poor widens.
Money has proved to be very convenient tool far amassing wealth and of the xploitation of the poor by the rich. It has created a yawning gulf between the ‘haves’ and ‘have nots’. The misery and degradation of poor is, thus, to no small measure due to the existence of money.
Money has weakened the moral fibre of ma. The evils to be found in the affluent society are only too obvious. The wealthy monopolise all the social evils like corruption, the wine and the woman. In their case money has proved to be soul killing weapon. In the words eminent German economist Von Mises “money is regarded as the cause of theft and murder, of deception and betrayed. Money is blamed when the prostitute sells her body and when the bribed judge perverts the law. It is money against which the moralists declaims when he wishes to oppose excessive materialism. Significantly enough avarice is called the love of money and all evils is attributed to it”. Money in itself may not be had, but its possession no doubt fascilitates corruption and crime.
Thus “money which is a source of so many blessings to mankind becomes unless we control it, a source of peril and confusion.

Importance of Money in Our Modern Society

Money is considered as the King of the free market economy. Every work starts and ends with money. Money occupies in important place in all economic activities. All businessmen, traders and individuals depends upon money for meeting their expenses. In the words of Marshall “Money is the pivot round which the whole economic system clusters”. The truth is that money is one of the greatest inventions of mankind. In money economic every branch of economic activity is different from what it was in barter economy. There is no doubt that money facilitates and motivates all economic activity relating to consumption, production, exchange and distribution. Money enables a consumer to maximise his satisfaction. Money measures the intensity of desire and utility of commodity to a consumer. Money fascilitates production by stimulating saving and investment. It gives molnlity to capital and helps in capital formations. It enables the harnessing of various factors or production so that the entrepreneur is able to maximise his profit. Introduction of money facilitates exchange and helps in the development of trade and commerce, both national and international. Money functions as a common denominator for the distribution of social product. It is in terms of money that wages, rent interest and profits are determined. Money helps the price mechanism to operate and serve as an instrument for the allocation of resources among competing uses. Money is extremely valuable social instrument which has largely contributed to the growth of national wealth and social welfare. It has ensured the smooth functioning of the modern economic system. It has accelerated the process of industrialisation. In money economy there is continuous flow of money payments. This circular flow is essential for promoting economic welfare of society.
Whatever the type of economic system exists money is found to be of great service. In a capital economy, money plays an important role because capitalism basically depends on price mechanism which operates through the medium of money. As Professor Robertson observes “the existence of monetary economy helps society to discover what people wand and how much the want…. and to decide what shall be produced and in what quantities and to make the best use of its limited productive power. And it helps each member of society to ensure that the means of enjoyment to which he has access, yield him the greatest amount of actual enjoyment which is with in his reach”. Even in a socialist economy, price tags are essential for its smooth efficient and economical working. It is said while money is a master in a capitalist economy, it is a servant in a socialist economy. Money also plays a significant role in a mixed economy. It plays a circular role in determining employment, output and income in the private sector. In the public sector is helpful in the allocation of resources and for changing the pattern of income distribution. It is powerful instrument for capital formation and economic development in a developing economy.

Inconveniences of Barter System

Barter means direct exchange of goods for good. Barter system was prevalent at an early stage of man’s economic life when the wants were limited in number. Man could easily satisfy all his wants he produced himself. But as time passed his needs began to increase. He lost the self sufficiency. He began to produce some goods in greater quantity than he could consume himself. The purpose was to exchange some of his products which he had in excess with those who had surplus products with themselves. For instance if a fisherman wanted to have skins, he could get them by giving fish to the hunter. Similarly if a weaver wanted a pair of shoes, he could receive that by giving surplus cloth to cobbler. This divert exchange of surplus commodity with another person without the use of money is termed as Barter in Economics.
The following difficulties and inconveniences were experienced in the Barter System.
1. Double Coincidence of Wants: The direct exchange of one commodity for another required direct satisfaction of both the parties in the bargain. The exchange can only be effective if a person is able to spare what the other person wants and at the same time needs what the other can spare. For instance a person has surplus wheat with him and wished to exchange with cloth. He will have to find a person who not only possesses sufficient cloth but also desires wheat. This double coincidence as in obvious is very difficult to attain in this civilized world especially where the range of human wants is very wide. The transactions of cost double coincidence of wants are very high.
2. Lack of Common Measure: Another difficulty which arises under the Barter system is absence of common measure which can help in the estimation of relative values of the two commodities. For instance a man has horse with him and other a cow and tooth are willing to trade. A man who has a horse assigns the value of one horse as two cows. The other who has a cow assigns the value of one cow as one horse and both stick to their respective valuations. In the absence of common measure of value the exchange between the two parties cannot take place unless both of them assign the same value to different commodities which they possess.
3. Lack of Sub-divisions: One serious draw back of Barter system is that even when double coincidence of wants exists between the two parties, the exchange may not take place even then. This is the particularly cause in those commodities which cannot be sub-divided. For instance a person has a cow with him and wishes to get 40 kilograms of wheat. It is clear that the value of the cow is much more than the value of 40 kilograms of wheat. What part of the cow should be given in exchange of 40 kilograms of wheat? Just imagine if the cow is cut into pieces, wheat value can it command?
4. Lack of Store of Value: Another serious inconvenience which arises under Barter that the goods particularly perishable ones cannot be stored for a longer period. They lose their value as time passes on.
5. Specialization not possible: Under Barter economy each person is jack of all trades and master of one. A high degree of specialization cannot be achieved under it.
6. Payment in Future: Under the Barter system, it is very inconvenient to lend goods to other people. With the lapse of time, the value of commodities may fall. So it becomes difficult to make payments in future.
7. Difficulties of Transfer of Wealth: There is great difficulty in transferring of wealth from one place to another under Barter system. For instance if a person has to take one hundred heads of cattle from Kashmore to Karachi show much difficulty he would feel? The risk and inconvenience of transportation is major difficulty of Barter system.
8. Difficulties in Tax collection: Another difficulty which arises under Barter system is that the tax cannot be collected, in the form of goods. If commodities are collected from the tax payers, they will not only lose value as time passes on but are difficult to store also.
The use of money has converted a Barter economy into monetary economy. The money has overcome difficulties and inconveniences of the barter system in the following ways.
1. Use of Money: Money is now used as (i) medium of exchange, now goods and services are purchased and sold with the help of money. (ii) Money now serves as common measure of value, the problem of comparing the prices of goods and services in the market is now simplified. (iii) With the help of money the exchange of present goods on credit has been made easier. The problem of deferred payments has been satisfactory solved with the help of money. (iv) Money as liquid store of value has facilitated its possessor to purchase any other asset at any time. (v) Though money value can be easily and quickly transferred from one place to another.
2. Liquidity of Wealth: Money imparts liquidity to various forms of wealth such as land, machinery, stocks store etc. These forms of wealth can be easily converted into money.
3. Establishment of financial institutions: The introduction of money has made it possible to establish financial institutions like central bank, commercial banks etc, which deal in currency and near money assets such as bills of exchange, bonds, shares etc.
4. Market mechanism: In monetary economy market mechanism operates. The demand and supply are brought into balance by movement of prices. The decision of what wow and for who to produce are determined in accordance with the market conditions or dictates of price mechanism.
5. Circular flow of money: In a monetary economy there is circular flow of money. Money flows from firm (as a payment for factor services) to the households. It flows from households to firms as the price of goods and services.
6. Process of development: In a Barter economy the process of economic development is slow. With the use of money division of labour has taken place, technology has developed, researches are being carried out, trade has expanded etc. In monetary economy, there is thus an all round economic progress.

Money and its Functions

Money has been defined in various ways. Walz Ken says “Money is what money does”. In other words, any thin that performs the function of money is money. In the widest sense, the term ‘money’ includes all media of exchange-gold, silver, copper, cheques, commercial bills of exchange etc. but this definition is too wide; cheques, bills etc have been called representative money as they are only convenient representatives of the standard of value. Some writers narrow down the definition to include only the commodity such as gold that may serve the purpose of money. This excludes bank notes or government currency notes from the category of money. These instruments cannot, logically speaking, be excluded because they possess all the attributes of money.
The most commonly agreed view on the definition of money is that “anything which is widely accepted in payment for goods, or in discharge of other kinds of obligations is money”. In Growther’s words “The only essential requirement is general acceptability. Money … need not itself be valuable. It must indeed be relatively scare, since it would hardly do if money could be plucked off every tree. Pout provided precautions are taken to keep it relatively scare and it may be added comparatively in variable in amount of money can consist of things as worthless as a scare of paper or the scratch of Clerk’s pen in the books of a bank”.
The functions of money can be conveniently divided into three parts. (A) Primary (B) Secondary (C) Contingent functions. These functions are discussed as under.
(1) Money as a Medium of Exchange: In all market transactions, money is used to pay for goods and services. The sale or purchase of goods is done through money. Money other words acts as medium of exchange and helps in overcoming the difficulty of double coincidence of wants of the barter economy.
The use of money as a medium of exchange has helped in promoting efficiency in the economy. It has reduced much of the time spent in exchange goods and services. It has also promoted efficiency of allowing people to specialize in any area in which they have comparative advantage and receive no money payments for labour. The use of money as medium of exchange has permitted more specialization by lowering transactions cost and encouraging division of labour.
(2) Money as a unit of account: Another important function of money is that it provides a unit of account. The monetary unit of account is used to measure the value of goods and services in the economy. Just as we measure weights in terms of grams or kilograms, and distance in kilometres, similarly we measure and compare the value of goods and services in terms of money. Money is the yardstick that allows the individuals to measure the relative value of goods and services. The use of money as unit of amount has greatly reduces transaction costs i.e. the time, effort and expenses that go into purchase or sale of goods.
(3) Money as a standard of deferred Payments: Another function of money is that it is used as mean of setting debts maturing in the future. In modern economy, most of the business is done on credit. Goods are brought and sold on the promise to pay money on a certain date in future. Debts are stated and paid in terms of units of account.
(4) Money as a store of value: Money also functions as a store of value. It is reservoir of purchasing power overtime. The money which we have to day can be set aside to purchase things later on. This function of money is useful because most of us do not to spend our income immediately upon receiving it. We prefer to wait until we have the time or desire to spend it. Money held in the form of cash is considered highly liquid asset.
Money as potential to influence the economy. It influences the price level, interest rates, utilization of resources etc. The secondary functions of money in brief are as under:
1. Aid to specialization, production and trade: The cese of money has helped in removing the difficulties of barter. The market mechanism, production of commodities, specialization, expansion and diversion of trade etc have all been facilitated by the use of money.
2. Influence on income and consumption: The use of money has direct bearing on the levels of income and consumption in the country. All production takes place for the market and the factor payment (rent, wages, interest and profits) are made in money. The higher the production the higher are the remunerations to the factors and vice versa.
3. Money as an instrument of making loans: People have money and deposit it in banks. The banks and advance these saving to businessmen and industrialists. Money is thus an instrument by which saving are transferred into investment.
4. Money as a tool of monetary management: Money is an important tool of monetary management. If the money is effectively used, it helps in increasing output and employment. Money is also an important factor in determining the distribution of income and health among members of the society.
5. Instrument of economic policy: Money is an important instrument of economic policy of the government. In order to achieve growth, reduce unemployment and maintain regular expansion of economic activity, money is the most powerful factor.
Contingent functions are derived from primary and secondary functions. According to Kinley, the contingent functions of money are as follows:
(i) Distribution of National Income: Money facilitates the distribution of national income among various factors of production. It also helps in bringing justice in distribution.
(ii) Basis of Credit system: Banks create credit on the basis of their cash serves. Any change in the volume of money is brought about mainly by an increase or decrease in money supply.
(iii) Measure of Marginal Productivity: The marginal productivity of each factor of production is measured with the help of money. Money also helps in equalization of marginal utility in expenditures.
(iv) Liquidity of Property: Money gives liquid form to wealth. A property can be converted into liquid form with the use of money.

Functions and Powers of Security Council

The Security Council is often described as the enforcement wing of the united Nations. It is primarily responsible for the maintenance of international peace and security. For this purpose, its services can be requisitioned any time. This naturally implies that the Security Council has to work continuously so that it can take quick action in the event of threat to international peace or Security.
Composition: The Security Council is a much smaller body than the General Assembly. Initially it comprised of eleven members. Five permanent members (United States, United Kingdom, U.S.S.R, France and Nationalist China) and six non permanent members elected by the General Assembly for a term of two years. The Strength of the non permanent members was raised to ten in 1965. Thus at present the Security Council comprises of 15 members five permanent and ten non permanent. The five permanent members are China, France, Russia, USA and United Kingdom. The non permanent members of Security Council are not eligible for immediate re-election. While electing the non-permanent members of the Security Council, the General Assembly takes into account the contributions of the members towards the maintenance of international peace and security. It also ensures that different geographical regions get equitable representation in the Security Council.
Each member of the Security has one vote. Decisions on procedural matters are taken by affirmative vote of at least nine members, while decisions on substantive matters are taken by the votes of nine members, which must also contain the concurring votes of all the permanent members. The presidency of the Security Council is held by each members of the Security in alphabetical order for a period of one month.
Functions and Powers of Security Council:
The UN Charter has entrusted the responsibility of maintenance of international peace and Security to the Security Council. For this purpose all the members of the United Nations are committed to carry out the decisions of the Security Council. It is note worthy that while all other organs of the United Nations can merely make recommendations to the government, of the member states. The Security Council alone has been vested with the power to take decisions which the member states are obliged to carry out. The main functions of the Security Council can be conveniently studied under the following heads.
Deliberative Functions: In the first instance the Security Council has the power to discuss and investigate and dispute or situation and make recommendation to the member states to settle their disputes by peaceful means. Disputes or situations likely to endanger international peace and Security may be brought to the attention of the Security Council by any member of UN, by the General Assembly, or by the Secretary-General. Even non member states can bring the dispute before the Council. Provided they accept in advance the obligations of peaceful settlement contained in the UN Charter. It may be noted that a state which is a member of the United Nations, but not of the Security Council, can also take part in the proceedings of the Security Council when it is considering a matter which affects the interest of that country. Even a state which is not a member of the UN can be invited to take part in the discussions of the Council if it is a party to the dispute being considered by the Security Council. However such states can not take part in voting.
The Security Council can also take up general questions regarding maintenance of international peace and Security. It is responsible farming plans for the establishment of a system for the control of armaments. The United Nations Atomic Energy commission way set up by virtue of a resolution of the General Assembly, but it is responsible to and operates under the supervision of the Security Council.
Enforcement Functions: The Security Council has also been vested with important enforcement powers. When the Security Council finds that a peaceful settlement among he disputant countries is not possible, it can decide upon measures which it considers necessary for the maintenance of order and restoration of international peace and Security. On account of this power, the Security Council is often described as the enforcement arm’ of the United Nations. While taking up adequate measures, Security Council first tries to resolve the dispute without involving the used of armed forces. For this purpose it can adopt measures like complete or partial interruption of economic relations, severing of rail, sea, air, postal, radio and other communication links, and snapping of diplomatic relations. When these measures fail to produce the desired effect, the Security Council can taken such action by air, sea or land forces, as may be necessary for the maintenance or restoration of international peace and Security. Such actions may include the blockades, demonstrations and other operations by air, sea or Land forces of members of the United Nations.
It may be noted that though the Security Council can urge the member nations to apply sanctions against an aggressor, there is no guarantee that the state will answer the call. In this regard Article 43 of the UN Charter enjoins upon all members of the United Nations to make available to the Security Council, on its call and in accordance with the special agreement or agreements, armed forces, assistance and facilities, including rights of passage necessary for the purpose of maintaining peace and Security. How ever, such agreement could not be concluded due to differences among the super powers, and thus these provisions have remained inoperative.

Principal Organs of the United Nations

The character provided for the establishment of six organs of the UN. The General Assembly, the Security Council, the International Council of Justice and the Secretariat.
The official languages of the General Assembly, all its main committees and sub-committees, the Security Council and Trusteeship Council are Chinese, English, French, Russian and Spanish. These languages together with Arabic are the working languages of the Security Council and its seven main committees. The official languages of international court of justice are English and French.
General Assembly:
The General Assembly is the apex body of the United Nations. It has been described as the town meeting of the world because all the members of the United Nations are ipso facts members of the General Assembly. Each member has a single vote even through each state can send five representatives to the Assembly. These representatives are the nominees of their respective governments. The charter does not impose any restriction on the member states with regard to the appointment of the delegates to the General Assembly except that Article 8 enjoins upon the states not to make any discrimination on the basis of sex. These representatives have to act in accordance with the instruction of their respective governments and are directly responsible to their governments. Thus the General Assembly is more of a diplomatic coference than a legislative body.
The General Assembly at its first session elects a president for a term of twelve months. As a matter of convention, the president is taken from a minor country. It may be noted that though the president is elected by the General Assembly, in reality the choice of the candidate for the post of president is made through private consultations before the session of the Assembly and a candidate who is acceptable to the majority of the members is elected as president. It is note worthy that during the initial years close contests took place the office of President Ship.
Vice Presidents and Chairmen of Standing Committee:
In additional to the president the General Assembly at its first session also elects seventeen vice Presidents and seven chairmen for the seven standing committees. All these officials, along with the president constitute the General Committee, which acts as the steering committee fore each session. This committee acts as advisory body t the president. How ever, its recommendations are not binding on the president. It mainly advises the president with regard to agenda and priorities of debates, allocation of items to the seven committees, co ordination of work of the standing committees, fixing date for adjournment of Assembly and assistance to the president in the discharge of his responsibilities.
While nominating the seven vice presidents of General Assembly effority is made to provide representation to all the areas. Usually seven members are taken from Asian and African states; one from Eastern European States, three from Latin American states; two from Western European and other states and five seats are given to five permanent members of the Security Council. Like wise the Chairman ship of the seven committees is also allocated on the basis of these areas.
Sessions of Assembly:
The regular session of the General Assembly is held once a year. The session commences on the third Tuesday in September and continues until mid-December. In addition special session of the Assembly can be called at the request of the Security Council a majority of member states or one member states with the concurrence of the majority, Emergency special session of the Assembly can be called within 24 hours of a request by the Security Council on vote of any nine of its members, or by a majority of the member states.
Decision on all important questions are taken by two third majority of the members present and voting. Some of the important matters, which fall in this category include recommendations on peace and security. Election of members of the security council: the Economic and Social Council and the Trusteeship Council, admission suspension and expulsion of member states: trusteeship questions and budgetary matters. The other matters can be decided by simple majority.
The General Assembly conducts its business on the basis of the agenda which is prepared by the secretary. General in the month of duty. The secretary General has not much dis-creation with regard to the determination of the agenda because there are certain items which must find their place on the agenda. Thus the agenda of the Assembly invariably includes Annual Report of the Secretary General, reports of other organs of the United Nations, items proposed by members of the United Nations. Further, this agenda is reviewed by the General Committee of the Assembly to avoid overlapping and repetition.
Functions and Powers:
The General Assembly performs varied ad extensive functions which cane be conveniently studied under the following heads.
1. Deliberative Functions: The General Assembly can discuss any question or matter within the scope of the UN charter and relating to any organ of the United Nations. It can also invite the attention of the Security Council to the situation which are likely to endanger international peace and security and recommendation measures for the peaceful adjustment of situation which is likely to disturb the friendly relations amongst nations.
The General Assembly can also initiate studies and make recommendations for (a) promoting international co-operation in political arena and encourage progress of international Law and its codification. (b) Promoting international co-operation in the economic, Social, Cultural educational and health fields and assising in realisation of human rights and fundamental freedom for all without discrimination as to race, Sex Language or religion. The deliberative functions of the Assembly according to Prof: Vandenbosch and Hogan implies two things. First it entails the power to ascertain the facts and information necessary for the discussion. Secondly, its deliberations may go beyond mere discussion and may result in certain recommendations. In other words the General Assembly can make recommendations and also conduct studies for promoting international co-operation.
The recommendations of the General Assembly do not possesses any legal sanction and are merely an expression of opinion or advice of the Assembly, which is not binding on the member states. Further thought the General Assembly enjoys extensive powers with regard to discussion on world problem, it can not intervene in the matters falling within the domestic jurisdiction of the states. But in view of the growing inter dependence of internal and foreign affairs, it is not always easy to say what really falls under the domestic jurisdiction. For example in 1948 India lodged a compliant with General Assembly regarding maltreatment of Indian minority in South Africa but the South African Government challenged the right of the Assembly to consider the issue on the plea that the matter essentially relates to ‘domestic jurisdiction’. Despite this the General Assembly proceeded to adopt a resolution in December 1946 and insisted that the treatment of the Indian minority should be in accordance with international obligations, including the provisions of the charter. It is a different matter that the South African government refused to implement the resolution on the ground that the matter did not fall within the competence of the General Assembly.

Organization, Objectives and Principles of United Nations

The foundations of the United Nations were laid on the League of Nations. League failure to avert the war and promote the cause of peace reiterated the conviction of the people, all over the world to work out for enduring peace. The name “United Nations” was devised by president Franklin D. Roosevelt and was first used in the declaration by ‘United Nations’ of January 1942 during the war when representatives of 16 nations their governments to continue fighting together against the Axis powers. The advent of UN owes its roots to the Moscow Declaration of November, 1943 whereas Foreign Minister of China, Russia, UK and the United States took up a decision to establish an international organisation. The efforts were continued and negotiations were being conducted. The representatives of the countries mentioned above again met at Washington in September-October 1944 and are also known as Dumbarton Oaks talks. On October 7, 1944 the proposed frame work of the UNO was tentatively published. These proposals were further discussed at the yatta conference in February 1945, where Heads of United Kingdom, America and Russia-Churchill, Roosevelt and Stalin took part. Finally, the draft was signed on June 26, 1945. The UN Character comes into being on October 24, 1945 when it was ratified by a requisite number of states.
Objectives of United Nations:
The objectives of the United Nations are enshrined in the preamble to charter. There are four major objectives:
(i) To save the succeeding generations from the scourge of war.
(ii) To reaffim faith in fundamental human rights, in the work and dignity of human person and equal rights of men, women and nations large and small.
(iii) To establish conditions under which justice and respect for the obligations arising from treaties and other sources of international law can be maintained.
(iv) To promote social progress and better standard of life in large freedom.
These objectives envisaged a better and peaceful life to the people of the world through practising to learnce and living together in peace and harmony with one another. This spirit has facilitated the emergence of the concept of peaceful coexistence among the states despite political, economic and ideological difference prevailing between them. The preamble envisages the principal of collective security to maintain international peace and security.
The preamble emphasises the use of international machinery to promote economic and social advancement of the people through the world. This is the development of less developed countries.
The Purpose and Principles of the United Nations:
The purpose of the United Nations is set forth in Article 1 of the charter. These include the following:
(1) Maintenance of international peace and security.
(2) Development of friendly relations among nations.
(3) International cooperation in solving problems of economic social cultural and humanitarian nature promotion and encouragement of respect for human rights and fundamental freedoms.
(4) To act as a centre for harmonising the actions of nations to achieve the above ends.
It will be observed from the above list of purposes of United Nations, that maintenance of international peace and security has been given first place, because in its absence the other purpose of maintenance of international peace and security, the UN can take effective collective measures for the prevention and removal of threats to the peace, and for the suppression of acts of aggression or other breaches of the peace and to bring about any peaceful means, and in conformity with the principles of justice and international law, adjustments or settlement of international disputes of situations which might lead to a breach of the peace.
The UN also seeks to develop friendly relations among nations based on respect for the principal of equal rights and self determination of the peoples, and can take other appropriate measures to strengthen Universal peace. Both the above purposes of the United Nations are essentially political in character because they have a direct bearing on the struggle for power among the nations.
The third purpose of the United Nations is to ensure international cooperation for solving international problems of economic social, cultural or humanitarian nature.

Economic Co-operation Organization

After the expansion of its membership, E.C.O has today completed 13 year of life. Since 28th November 1992 every ECO Day is commemorated on this day seven new members jointed this organisation raising the total membership from three to ten. The member states who joined ECO in 1992 are Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. The economic cooperation organisation (ECO) is an inter governmental organisation established in 1985 as a trilateral Regional Economic, cooperation organisation with the membership of Iran, Pakistan and Turkey. It is the success or organisation of the Regional cooperation for Development (RCD) that remained active since its inception from 1964 up to 1979.
ECO, with more then seven million Sq Km and nearly 350 million people covers a huge land mass with vast minerals and human resources which provides unique opportunities for the overall regional is very vast having great potential for exchange of good and services among the member states as well as extending cooperation in many areas.
The main objective and activities of ECO are envisaged in the Treaty of Izmir as the main charter of organisation and the economic strategy which has been approved in 1996. This strategy shall pursue and implement ECO objectives as stipulated in the Treaty of Izmir. Sustainable economic development of the member states progressive removed of trade barrier and promotion of intra regional trade as well as greater role of ECO region in the promotion of the world trade and its gradual integration with the world infrastructure thinking the members states with each other and with the outside world are among the major objectives of ECO.
It is pertinent to mention that since its establishment, the ECO has been contributing to the expansion of cooperation among the member countries. So far 8 summits, 15 Meetings of Council of Ministers (COM), 5 Ministerial meetings of Transport and communications. Ministerial Meetings on Environment a Ministerial Meeting on finance one on energy have been held which are good examples of high political will of the ECO member states towards the promotion of regional cooperation and mutual understanding of the need to challenge regional issues.
These summits and Ministerial Meetings have achieved fruitful result in serving the mutual interest of ECO member countries. Measure such as welcoming to finalisation of ECO Trade Agreement decision of establish a free Trade Area in the region by 2015 and implementation of a plan of action or cooperation in the field of Environment are just a few instrumental agreements to promote regional cooperation. Besides others three major important Ministerial meetings were held in Past two years in areas such as Environment, Agriculture and commerce / Foreign Trade.
The development of greater economic state in the region naturally results in greater sensitivity to the concerns of each other. This paves the way for more ambitious but entirely achievability goals and focuses on the top priority areas such as trade energy transport and communication in the region as far as to trade is concerned in spite of noticable positive tendencies in total trade volume of the ECO member states i.e. US$ 318 billion in 2004 the intra-regional trade ratio is still lower than the real potential and can not be behind the threshold of 6 percent. In order to improve these figures, ECO is making sincere endeavours to ECO is trading regime which can effectively address mutual concerns.
In this context adoption of ECO Trade Agreement (ECOTA) would lead us to gradual but definite removal of the non-tariff barriers brightening prospects of promotion of intra-regional members state to complete the ratification process.
In order to expedite this process through a sense of Experts. Group meetings the member states have the formulations of the annexes of ECOTO on Rules of origin. State Aid, intellectual property Rights and Anti-dumping Measures. There is no doubt that this achievement would eventually lead to early realisation of ECOTA. ECO is working to finalise the mechanism for the Fast Track Approach for the early implementation of ECOTA.
Of course trade treaty per se will not improve the current state of regional trade. Therefore, ECO has also focused hard on various trade promotions and facilitation measures including supply side constraints some of which already under way or at various stages of progress. Liberalisation of trade policies, pursuing ECO the project reactivation of ECO – CcI. E – Trade use of information and communication Technology trade and investment information networking, harmonisation of customs laws and regulations and simplification of visa procedures particularly for the business persons are essential co-efficiencies of such measures.

Fourth SAARC Summit (1988)

The fourth SAARC summit was held at Islamabad from 29-31 December 1988. The leaders arrived at several positive decisions including elimination of menace of drugs and terrorism. They expressed concern at the high incidence of drug production, trafficking and abuse and decided to declare 1989 as the SAARC year against drug abuses in order to focus attention on drug related problems facing the region. They stressed the need of measures at national level to fully implicate the regional convention on suppression of terrorism. They called for a perspective regional plan with specific targets of meeting basic needs to be met by the end of the century in core sectors such as food clothing shelter, education primary health core, population, planning and environmental protection. This summit welcomed the establishment of South Asian food Security Reserve in August 1988 and described it as a major break-through in the common endeavour of governments of members countries to assist each other in food emergency situation. The reiterated their determination to accord priority to the needs of children in national development plans and decided to declare 1990 as saarc year of Girl Child. Finally the leaders agreed to have a saarc passport (initially available only to MPs and Supreme Court Judges of the member countries) to facilitate travel among the seven countries. Gradually the journalists and other categories of person would also be eligible to receive in passport.
Islamabad summit was a great landmark in a number of ways. In the first instance it provided a new impetus to saarc by initiating a number of action-oriented plans with for reaching consequences for the quality of life of the people of South Asian. Secondly, it encouraged the member states their foreign policies in order to inject positive bilateralism. The signing of three important agreements between India and Pakistan during the Islamabad meeting is a clear proof of it.

Non-Aligned Movement

This is an important international body. Its foundations were laid in a conference in April 1955 in the Indonesian city of Bandung. Pakistan is an active member of the movement. The main purpose of this conference was to provide a platform to those countries which liked to keep equal distance from each super power. The participating countries endorsed five principles called ‘Panchshela’ for matual relationship. These principles are:
1. Respect for each other’s govereignty and integrity.
2. Re-frainment from all forms of aggression.
3. Non-interference in the internal affairs of others.
4. Equality and mutual co-operation.
5. Peaceful co-existence.
The first Conference of twenty-five non-aligned countries was held in Belgrade, the Yugoslavian capital in 1961, where the establishment of the Non-Aligned Movement was formally announced on the principles of ‘Panchshela’ and resolutions of Bandung Conference. The Belgrade Conference supported the independence movements of oppressed nations, closing the foreign military bases and limiting the use of armaments. In addition to this, it also emphasised that the economic gap between the rich and poor nations of the Third World be reduced.
The first summit of Non-Aligned Movement was held in Belgrade, the second at Cairo (Egypt) in 1964, the third at Lusaka (Zambia) in 1970, the fourth at Algiers (Algeria) in 1974, the fifth at Colombo (Srilanka) in 1976, the sixth at Havana (Cuba) in 1979, the Seventh at New Delhi (India) in 1983, the eighth at Harare (Zimbabwe) in 1986, the ninth again at Belgrade (Yugoslavia) in 1989. The NAM continues to meet every third year since than.
Although Pakistan played an important role in the establishment of Non-Aligned Movement yet it did not join the movement initially. The main reason was that it was facing hostilities from its two neighbours, the Afghanistan and India and to meet this challenge it had joined South East Asia Treaty Organization (SEATO) a defence treaty with the USA and Baghdad Pact, later to become Central Treat Organization (CENTO). It secured military assistance and co-operation from western countries.
In 1960, due to the changing pattern of international relations, the Government of Pakistan felt that dependence on western countries should be reduced as far as possible and the relations with others should be strengthened. The 1965 war between Pakistan and India gave a further vent to this feeling when USA and other treaty members refused to help Pakistan but stopped the supply of armaments. Pakistan reviewed its foreign policy vis-à-vis the western countries and gradually adopted an independent foreign policy. This change in Pakistan’s foreign policy received a further strength after of the 1971 war with India. During the 1971 war, the western countries refused, repeating the 1965 stand to help Pakistan. Consequently Pakistan first left SEATO and the CENTO.
It has remained a cardinal principle of the foreign policy of Pakistan to keep itself away from the big Power rivalry and maintain friendly relations with all countries on mutual basis.
Even when Pakistan was not a member of the Non-Aligned Movement it had adhered to the ideals and principles which this movement stood for with a firm belief that the basic principles of NAM should be propagated and practised.
In 1976 Pakistan attended the fifth NAM summit at Colombo as an observer. Three years later in 1979 on the occasion of the sixth meeting of the movement at Havana (Cuba) Pakistan acquired the full membership of NAM. Since then Pakistan has taken an active part in the activities of NAM and has strongly supported the member states in the solution of their political, economic and other problems.
At the ninth summit in 1989, Pakistan dwelt on the internal strife in Afghanistan and came out with is thorough solution. Most of the participants of the Summit endorsed the views and stand of Pakistan. The communiqué issued on the conclusion of the Conference stressed the need for the political solution of the Afghan problem coupled with the withdrawal of Russian forces followed by the return of the Afghan refugees to their homes.

Importance of Agriculture

The agriculture sector is not only important at national level but also at international level. About fifty years back, the agriculture sector was neglected both in the developed and underdeveloped countries of the world. It was regarded as residual reservoir particularly of labour for employment in industries. In 1960’s the importance of agriculture was realized and adequate attention was given to this sector. The importance of balanced growth of agriculture and industrial sectors was stressed by the development economists. In 1970’s and since the beginning of 1980’s, agriculture in the process of development, has gained increased significance.
Importance of Agriculture in Economic Development:
Pakistan is basically a farming community. About 70% of its population is living in rural areas and nearly 50% of them engaged in farming, livestock and agro-based industries. However, Agriculture sector plays a vital role in the economic development of a country. It is confirmed and supported by the following facts.
1. Determination of GDP growth rate: The GDP growth rate in Pakistan is mainly dependent upon the growth rate in agriculture sector. For example, the GDP growth rate increased from 4.5% in 1993-94 to 5.2% in 1995-96 mainly due to increase in the production of cotton, rice and wheat in the year 1995-96. It came down to 3.1% in 1996-7 due to fail in the production of cotton, wheat and sugarcane.
2. Agricultural Development essential to curtail inflation: If the rate of growth in agriculture sector is low, it brings shortage of food, vegetable, and other essential raw materials in the country. The prices of the essential goods go up. The slow rate or fall in the production of agriculture sector generates inflationary pressure and creates bottlenecks in the economic development of the country.
3. Major component of GDP: Agriculture sector is the single largest component of GDP in Pakistan. Its contribution is 25% to Pakistan’s GDP. The progress of agriculture sector provides a sound base for economic development and is considered one of the preconditions for take off or self sustained growth.
4. Providing labour force to industry: In most of the developing countries (including Pakistan) agriculture is the main source of providing manpower of various sectors of economy. In Pakistan, 50% of labour force is employed in agriculture sector. With the improved growth in the agriculture sector due to mechanization, the surplus labour force can be easily absorbed in the small and large scale industries. The provision of new employment both in the agriculture industrial and other sectors can increase the income of the workers and help them to get out of low income equilibrium.
5. Foreign exchange earner: The agriculture sector is the main source of foreign exchange earnings in Pakistan. The export of cotton, cotton based products, rice etc fetch about 65% of our total export earnings. This helps in the import of capital machinery, equipment, technical know how etc which are essential inputs for development. The availability for foreign exchange not only helps in the industrialization programme but also improves the balance of payments.
6. Meets food requirements: Pakistan’s population is growing at an alarming rate of 2.77% annually. The agriculture sector is successfully meeting the food requirements of over 13 crore persons in Pakistan. Had there been no green revolution in agriculture sector during sixties and seventies, we would have spent the major portion of foreign exchange earned on the food import. The economic development would have also been retarded due to low capital formation.
7. Support of industries: The improved growth in the agriculture sector provides raw material to manufacturing industries. The production of cotton, jute, sugarcane, fruits etc enable the cotton, jute, sugarcane fruit processing and other agro based industries to get material from within the country and expand production. The industries not only meet the domestic requirements of cloth, sugar, jute bags etc but also earn foreign exchange by exporting them.
8. Expanded industrial market: The expanding and progressive sector brings prosperity to the agriculturists. The increase in the income of formers is spent on the purchase of industrial output such as clothes, motorcycles, cars, fans etc. The improvement in the agriculture sector thus provides on outlet for the products of the expanding industries.
9. Marketable surplus: When the agriculture sector is expanded on scientific lines, it yields handsome marketable surplus. The surplus which may be cotton, jute, wheat, sugar, silk, fish, timber etc can help to pay the import of industrial raw materials, capital equipments and technology. This helps in bringing about rapid economic development.

Economic Planning and Development

Pakistan is a developing country. The standard of living of the people of Pakistan as compared to the developed countries in very low. The facilities for housing, education and health are inadequate. The literacy rate is very low. Low savings and low investments are the main hurdles in the way of progress. The population growth rate, in comparison to the available resources, is very high. Like many other Third World Countries, Pakistan is one of the developing countries.
The natural and human resources of Pakistan are vase. There are numerous social, economic and international hurdles which hamper the efforts of exploring and exploiting these resources. For example, due to paltry income the capacity to save is negligible which renders the level of investment backwardly at a low level. Which the help of adequate and effective economic planning, many financial obstacles could be removed. Taking advantage from the experiences of developed nations, Pakistan too is striving hard to get rid of the economic and financial stringencies through economic planning and development in science and technology. Human and material resources could be used in a better way through economic planning. Thus, targets fixed for economic and social welfare could be achieved.
The purpose of economic (development) planning is that the people of a country should be provided with ample opportunities to lead a happy, prosperous and contented life. it is possible, only when there is considerable growth in the national product and the national income is raised to such an extent that it overtakes the population growth rate. At present, the population of Pakistan grows at an annual rate of 2.6 percent which means that each year provision for food, clothes, education, health and other facilities, has to be made for three million more people. The purpose of all the development schemes in Pakistan is to increase the national income to such an extent that even if the present rate of population growth persists even the total development action remains undisturbed. It should be remembered that if the population growth rate is more than the rate of national income growth then the per capita income would fall considerably which will result in the slow pace of economic development. The economy of Pakistan can hardly afford to bear it. Therefore, all our efforts are directed towards achieving progress in science and technology for accelerating the pace of economic and financial development. The Eighth Development Plan (1993 – 2008) reflects these objectives.
Economy of a state is just like a living body. There are many aspects of it such as agriculture, industry, trade and commerce, sources of transportation and communications, constructions, electricity and gas, housing, sanitation, health etc. etc. Economy works just like an integrated whole. Through development schemes different segments are directed towards progress at a particular rate and in a well-connected way, towards a determined destiny for ensuring growth in economy at a particular pace.
Political Instability: The political instability, lack of proper planning, heavy taxes etc are also responsible for the lagging behind of manufacturing sector. Since partition, the political system of Pakistan has remained unstable. Frequent changes in the government have been taking place until now. There were only two long period governments, but these governments were run by military men, while in this age of democracy all over the world, people do not like Martial Law because investors remain hesitant in making investment in the industrial sector.
Government Measures for Industrial Development:
Since independence, our government has realized the importance of the industrial sector. That is why, from time to time, many steps were taken by different ruling parties for the development of industrial sector which are as follows:
1. Establishment of Financial Institutions:
Many financial institutions were established for provision of finance to industrial sector. These are given as follows:
(I) Pakistan Industrial Development Corporation (PIDC): Pakistan Industrial Development Corporation was established in 1950. It assumed operation in 1952. The purpose of PIDC was to invest in those industries in which private investors were hesitating to invest. It was set up with an authorized capital of Rs. 10.00 million divided into 100,000 shares of Rs. 100 each. PIDC, from 1952 to 1974, expanded the industrial base and developed heavy industries and completed 60 projects e.g. fertilizer, shipbuilding, jute mills, cement factories, chemical plants and coal mines etc.
(II) Industrial Development Bank of Pakistan (IDBP): IDBP was established on August 1, 1961. The bank provides medium and long term loans to the industrial sector. The main objectives of establishing this bank was to grant credit to the projects which use indigenous raw material and are technically feasible and export oriented. Now it offers a full range of commercial banking services.
(III) Pakistan Industrial Credit and Investment Corporation (PICIC): Pakistan Industrial Credit and Investment Corporation was established in 1957. It has a paid up capital of Rs. 19.63 million. PICIC advances loans to firms for a period of 7 to 15 years. The loan is given in Pakistan and foreign currency to large industries for the purchase of fixed assets. The loan is paid in instalments as the project advances.
A new scheme of Merchant Banking has been started by the facility of opening of cash, letter of credit, provision of working capital, export financing equity, long term financing in local and foreign currency in the form of a package deal provided by the same bank.
(IV) Investment Corporation of Pakistan (ICP): The investment Corporation of Pakistan was established in 1966. The authorized capital of ICP was Rs. 200 million which was mainly subscribed by State Life Insurance and the Federal Government. The main objectives for the establishment of ICP are as follows:
1. To develop a sound capital market in the country.
2. To broader the base of equity investment.
(V) National Development Finance Corporation (NDFC): NDFC was set up in 1973. Its main objective was to provide finance to industries in the public sector. NDFC not only helps in the establishment of industries in the public sector, but it also assists in balancing, modernization and expansion of these industrial units. Under certain conditions, the Corporation also finances industries in the private sector. NDFC provides finance and project assistance to boost up industrial expansion and also to raise the productivity level in the public sector as well as private sector.
(VI) National Investment Trust (NIT): The National Investment Trust was established in 1962. The trust was set up to mobilize saving of the people and provide finance for the expanding needs of the corporate sector. The paid up capital of the Trust is Rs. 1.2 million and its main office is in Karachi. NIT has made investment in cotton textile, woollen textile, sugar, power engineering, transport and communication. It has switched over to interest free banking since 1979. It has played an effective role in the development of capital market in Pakistan. It provides underwriting cover to equity buying and selling in the stock market.
(VII) Bankers Equity Limited (BEL): BEL started its operation in January, 1980. Its paid up capital is Rs. 334 million which provides a strong capital base for investment. BEL is a public limited company which meets the working and fixed needs of the industry. It offers the entire range of services excluding direct equity investment, underwriting of public issues of shares, financing in both local and foreign currencies etc.
2. Establishment of Industrial Estates:
To encourage industrialization estates are designed in different cities throughout Pakistan. These industrial estates are provided with water, gas, power, roads and communication facilities. Residential facilities to workers are also provided. By establishment of these industrial estates, many problems of industries are solved. These estates are located in Karachi, Hyderabad, Larkana, Sukkur, Lahore, Gujranwala, Sialkot, Gujrat, Peshawar and Quetta.
3. Industrial Research and Training:
Lack of trained and skilled labour is a major obstacle in the way of industrial development. To meet the requirements of research and training Science and Industrial Research Department has been established since 1949. Institute of Personnel Training was attached to Pakistan Industrial Development Corporation and World Labour Organization. Under the research council, research laboratories are operating in Karachi, Lahore and Peshawar.

Important Industries of Pakistan

Industries, on the basis of the respective production, can be classified into three kinds:
a. Capital goods industries
b. Consumers goods industries
c. Agro-based industries
The details of these Pakistani industries are given as under:
The industries which produce further capital are called ‘capital goods industries’ therefore, machine, tools, parts, raw material producing industries are included in the capital goods industries. The capital goods industries in Pakistan are given below:
1. Iron and Steel Industry: No country, without the development of Iron and Steel Industry, can develop economically. All the developed countries are developed due to the developed iron and steel base. Pakistan does not produce steel according to her needs therefore; the gap between demand and supply is bridged up through import of steel. Pakistan Steel is the steel producing project which could, no doubt, be regarded as the pioneer of Heavy Industry in Pakistan.
2. Engineering Industry: Engineering Industry is of strategic importance for the industrial development. Modern Korea, Taiwan, Singapore and Malaysia are economically prosperous because of development of engineering industry. This industry, due to reasons, could not develop in Pakistan therefore; the engineering goods are imported to cater the local needs. Heavy Mechanical Complex (HMC) is a big name in the Engineering industry in Pakistan. This complex has been manufacturing complete cement plants and sugar plants. Moreover, it is also producing Boilers, cranes, road making machinery and different items for Pakistan Railways.
3. Automobile Industry: Automobile industry create constructive effects on tractors, threshers and other agricultural tools, defence vehicles, automobile and other industries which include metal wires, fiber glass, paints, rubber, plastic and glass industry. The first automobile plant was established in Pakistan Automobile Corporation (PARCO) was established in 1972. Presently, Pak. Suzuki Motor Company, Hino Pak, Alghazi Tractors, Gandhara Nissan were producing automobiles with recent addition of Toyota and Honda Motors.
4. Electronic Goods Industries: Electronic goods include many items like electric fans, bulbs, Heaters, transformers, batteries etc. Siemens Engineering Company has been playing an important role in producing electronic goods. Electronic goods industries in Pakistan are engage in producing cold storage plants, air conditioners, radio, refrigerators, television, audio cassette etc.
5. Chemical Fertilizer Industry: Pakistan is an agrarian country therefore; fertilizer industry is of strategic importance here. The first chemical fertilizer plant was set up at Daud Khel and the second was established at Faisalabad. As a result of Nationalization programme in Pakistan, the private fertilizer plants were transferred to National Fertilizers. There are 10 chemical fertilizer factories in Pakistan which are producing Nitrogenous and Sulphate fertilizers.
6. Petro-Chemical Industry: All the goods that are made of petrol and natural gas are concerned with the Petro-chemical industry. These goods include artificial fiber, plastic detergent and rubber.
Consumer goods are the goods which are used to extract utility or the satisfaction directly like cement, sugar, leather etc. Following are the consumer goods industries in Pakistan.
1. Pharmaceutical Industry: At the time of inception of Pakistan in 1947, there was pharmaceutical industry in Pakistan and all the medicines used to be imported. P.I Dogar Company and Frontier Chemical Works were making some minor medicine at the time at Lahore and Peshawar. Today there are 235 licensed pharmaceutical units out of which 32 are multipurpose.
2. Leather Goods Industry: Pakistan, as an agrarian country, is rich in cattle wealth like oxen, cow, buffalo, goats, camel, sheep etc. Moreover, Pakistan is also a Muslims country where meet is main in food items. This is the reason that the raw materials (hides and skin) for leather goods industry is abundantly available here. The future of leather goods industry in Pakistan is very bright. The centers of leather goods industry in Pakistan are at Karachi, Hyderabad, Multan, and Lahore. The leather goods include shoes, leather begs, leather garments etc.
3. Cement Industry: There were two cement manufacturing factories in Pakistan in 1947; Daimian Cement and Associated Company of Bombay. In the light of importance of cement for the construction work in the country one cement plant was established in Hyderabad with the name Zeal Pak and white cement plant at Daud Khel named Maple Leaf. Presently, there are 22 cement plants in Pakistan out of which 8 in Sindh, 9 in Punjab, 3 in NWFP, one in Islamabad and one plant in Baluchistan. The cement plant under completion is National Cement Plant, Cement Plant of Petro, Army Welfare Cement Project and Associated Cement Wah.
Agro-based industries which, for their raw material, depend on agriculture like textile, ghee, sugar edible oil, tobacco, fruit/vegetable processing industries. Agro-based industries of Pakistan are given as under:
1. Cotton Textile Industry: Cotton textile industry is the most important industry in Pakistan because it contributes 60 percent of total exports of the country and it is 18 percent of total heavy industrial output. Cotton is the raw material for cotton textile industry which is the cash crop of agricultural sector. Textile industry developed fast during fifties and sixties but after the Nationalization process of 1972 in Pakistan it has been converted into ‘sick’ industry. Presently, there are 503 textile factories in Pakistan.
2. Sugar Industry: After textile, sugar industry occupies the second important place in Pakistan. Sugar cane and Sugar beat are the raw materials for sugar industry which are the agricultural crops. There are 74 sugar mills in Pakistan out of which 38 are in Punjab, 30 in Sindh and 6 are in NWFP. Sucrose proportion in sugar cane of Sindh are embodied more than that of sugar cane of Punjab, therefore, concentration for installing the new factories is being given in Sindh.
3. Edible Oil/Ghee Industry: Edible/Ghee industry is the biggest one which uses imported edible oil. Edible oil is achieved seeds of soya bean, sunflower and cotton and cotton and Canola as well s palm. All these are the production of agricultural sector. Pakistan imports soya bean and palm oil in bulk. There are 9 ghee producing plants with Ghee Corporation of Pakistan.
4. Tobacco Industry: Tobacco is the cash crop of agricultural sector. ‘Virgina’; the best tobacco is cultivated in Peshawar. The other kinds of tobacco are cultivated in Rawalpindi, Multan, Lahore, Bahawalpur and Khairpur Divisions. Tobacco is also cultivated in Baluchistan. Mostly, ‘Filter’ tobacco is produced in Pakistan which is used in Cigarette Industry. Apart from Filter, other kinds of tobacco are Virgina, Flue cured, Verly and While Ash. There are 123 cigarette factories in Pakistan. Eighty four percent of total market demand of cigarette is met by 3 big cigarette companies including Pakistan Tobacco Company, Lexon Tobacco and Premier Tobacco Company.

Causes of Political Crisis

The history of Pakistan in the first half century of the existence is rent with political crises an attendant insecurity. The following are the main causes of such a sorry state of affairs:
1. Political parties in Pakistan seldom paid any attention towards the internal organization of their parties. They instead hankered after power, involving themselves in political intrigues and manipulations.
2. There is a general tendency of shifting political loyalties. The coming into power and the exit there from was generally punctuated by a shift in political loyalties.
3. A tug-of-war for the top slot in power ensued among the party ranks, resulting in the formation of factional groups under the splinter leaders. The Muslim League has faced this all the more as compared to other parties.
4. Under the growing influence of landed aristocracy, the wishes of the common man were generally trampled yielding no place to the poor in the political transactions of the parties.
5. Pakistan was ruled by the military dictators for almost 26 years which precluded the democratic traditions from taking their roots in the society.
6. Due to the void created during the first fifty years, tensions, strife and violence of religious and communal nature, gained intensive ground. Governments failed to mobilize public opinion favouring of tolerance and abdication of bigotry. In many cases they themselves succumbed to the pressure of extremist elements of prolong their stay in power.
7. The supremacy of law and equality before law could not be implemented in letter and spirit.
8. There was no systemic provision for accountability; consequently those who violated the law and acted unlawfully could hardly be brought to book.
9. No attempts were made to instil the spirit of democracy in the society. Elections alone do not describe democracy and need to be translated into real benefits to all and sundry.

The Elections of 2002

The Supreme Court of Pakistan gave a time limit of three years to General Parvez Musharraf to hold general election in Pakistan and take steps to put democracy back on the rails. Accordingly, he was also authorized by the Supreme Court of Pakistan to make very essential amendments to the constitution of Pakistan in order to facilitate the transfer of power to the elected representatives of the people.
As a first step, General Parvez Musharraf was elected as the President of Pakistan for a term of five years (2002-2007) through a national referendum in which he secured an exceptionally high public support. Later, general elections were held on October 10, 2002 whereby members of national and provincial assemblies were elected. In November 2002, full powers of the office of the Chief Executive of Pakistan were transferred to Mir Zafarullah Jamali who was elected as the Prime Minister of Pakistan by the majority of the 342 members of the National Assembly, paving the way to the full restoration of democracy in Pakistan. Soon after that the provincial assemblies met and elected Chief Ministers. The provincial assemblies also elected members of the upper house of parliament, namely, the Senate, on July 26, 2004. Mir Zafarullah Jamali resigned from the office of the Prime Minister of Pakistan. By a majority vote the National Assembly elected Chaudhry Shujaat Hussain as a new leader of the house who was sworn in on July 29, 2004 as the Prime Minister of Pakistan.
On August 25, 2004 Chaudhry Shujaat Hussain resigned from the office of the Prime Minister of Pakistan. By a majority vote the National Assembly elected Mr. Shaukat Aziz as the new leader of the house. He was sworn in as the Prime Minister of Pakistan on August 28, 2004.

The Elections of 1997

On November 5, 1996 President Farooq Ahmed Khan Leghari dismissed the Benazir Bhutto government on the charges of lawlessness, corruption and maladministration. He also dissolved the National and Provincial assemblies.
On February 3, 1997, elections were held for the National and Provincial assemblies simultaneously. Pakistan Muslim League won these elections with a wide margin. Muhammad Nawaz Sharif became the Prime Minister of Pakistan for the second time.
People had high hopes in the Nawaz government that it would curb lawlessness, control malpractices in public organizations and institutions and eliminate the curse of corruption from every walk of life. They had also expected that the economy of the country will be revitalized and strengthened, reducing the burden of foreign loans and improving the living conditions of common man. But this government miserably failed in the achievement of these objectives. His government slowly and gradually started concentrating all powers in the hands of the Prime Minister, resulting in the evening of October 12, 1999; the Pakistan army led by General Parvez Musharraf removed the government of Mr. Mohammad Nawaz Sharif, suspended the Senate, National Assembly and Provincial Assemblies and kept the 1973 Constitution in abeyance. The President of Pakistan issued a proclamation of emergency forthwith and promulgated Provincial Constitutional Order (P.C.O) No.1 of 1999 on October 14, 1999. The military government was duly accepted and welcomed by the people of Pakistan.
The President of Pakistan Mr. Mohammad Rafique Tarer has resigned form his office and through amendment in P.C.O-1, General Parvez Musharraf has taken an oath, as a President of Pakistan on 20th June 2001. Simultaneously, the suspended Provincial and Federal Assemblies, including Senate were also dismissed.

The Elections of 1993

General elections were held under the supervision of care-taker government in 1993. In addition to Centre, Pakistan Democratic Front (PDF) which included People’s Party and a small faction of Muslim League (Junejo Group) formed governments in the Punjab and Sindh. Benazir Bhutto became the Prime Minister of Pakistan for the second time and Farooq Ahmed Leghari was elected as President. After sometime, no confidence motion succeeded against the Nawaz Muslim League and Wali Khan Group coalition government in the N. W. F. P where PDF formed its own government.

The Elections of 1990

The political differences between the government of Punjab and the Federal government reached such a pass that President Ghulam Ishaq Khan had to dissolve National and all provincial assemblies and installed care-taker Chief Minister of the Punjab and the leader of opposition in the National Assembly. Mr. Ghulam Mustafa Jatoi was appointed as care-taker Prime Minister. In the 1990 elections I. J. I achieved a majority and formed governments at the Centre and in all provinces.
After long political crises of thirty months and in view of the sharp differences on the constitutional powers of the President, the President Ghulam Ishaq Khan and the Prime Minister Nawaz Sharif had to resign from their posts. Mr. Moin Qureshi a Pakistani resident of U. S. A was appointed as the Care-taker Prime Minister and Mr. Wasim Sajjad, the Chairman of Senate took the oath as the Acting President.

The Elections of 1988

After the death of Zia-ul-Haq, Supreme Court declared the non-party elections illegal and unconstitutional. As such general elections on party basis were held in 1988, after an interlude of eleven years.
People’s Party took part in these elections under the leadership of Bhutto’s daughter Benazir Bhutto. During the Zia-ul-Haq rule, Benazir was compelled to leave the country and she returned to the country when Muhammad Khan Junejo was the Prime Minister of Pakistan. She came to Pakistan on April 10, 1986 and was accorded a tumultuous welcome at Lahore. People’s Party formed government at the Centre and in the provinces of Sindh and N. W. F. P whereas I. J. I (Islami Jamoori Itehad) which included Muslim League (Nawaz group), Jamat Islami and nine other smaller parties was successful in forming its government in the Punjab.

Kargil Conflict 1999

Unfortunately, in May 1999 India launched air strike against Pakistani-backed forces that had infiltrated into the mountains in Indian-administered Kashmir, north of Kargil. Pakistan responded by occupying positions on the Indian side of the Line of Control in the remote, mountains area of Kashmir near Kargil, threatening the ability of India to supply its forces on Siachen Glacier. By early summer, serious fighting glared in the Kargil sector. The infiltrators withdrew following a meeting between Prime Minister Sharif.

Diplomatic Push 1996-97

In the last several years, the Indo-Pakistani relationship has veered sharply between rapprochement and conflict. After taking office in February 1997, Prime Minister Nawaz Sharif moved to resume official dialog with India. A number of meetings at the foreign secretary and prime ministerial level took place, with positive atmospheres but little concrete progress. In a speech at the UN, Pakistani Prime Minister Nawaz Sharif offered to open talks on a non-aggression pact with India, proposing that both nations strike a deal to restrain their nuclear and missile capabilities.
Nuclear Rivalry 1998: The arms race between the rivals escalated dramatically in the 1990s. In May 1998, India conducted underground nuclear tests in the western desert state of Rajasthan near the border with Pakistan. In response, Pakistan conducted six tests in Balochistan. In the same year, Pakistan tested its longest range missile, the 1,500 km (932 mile) Ghauri Missile, named after a 12th Century Muslim warrior who conquered part of India. Both sides were heavily criticized by the international community for the tests as fears of a nuclear confrontation grew.
The United States ordered sanctions against both countries, freezing more than $20bn of aid, loans and trade. Japan ordered a block on about $1bn of aid loans. Several European countries followed suit, and the G-8 governments imposed a ban on non-humanitarian loans to India and Pakistan. The UN Security Council condemned India and Pakistan for carrying out nuclear tests and urged the two nations to stop all nuclear weapons programmes.
Indian Prime Minister Atal Vajpayee Visit to Pakistan 1999: The relationship improved markedly when Indian Prime Minister Vajpayee travelled to Lahore for a summit with Sharif in February 1999. There was considerable hope that the meeting could lead to a breakthrough. They signed the Lahore accord pledging again to “intensify their efforts to resolve all issues, including the issue of Jammu and Kashmir”.

Kashmir Insurgency 1990

Bilateral tensions increased in early 1990, when Kashmiri militants begin a campaign of violence against Indian Government authority in Jammu and Kashmir. Subsequent high-level bilateral meetings relieved the tensions between India and Pakistan, but relations worsened again after the destruction of the Ayodhya Mosque by Hindu extremists in December 1992 and terrorist bombings in Bombay in March 1993. Talks between the Foreign Secretaries of both countries in January 1994 resulted in deadlock.

Indian Troops and Siachen Glacier 1984

India’s nuclear test in 1974 generated great uncertainty in Pakistan and is generally acknowledged to have been the impetus for Pakistan’s nuclear weapons development program. In 1983, the Pakistani and Indian governments accused each other of aiding separatists in their respective countries, i.e. Sikhs in India’s Punjab state and Sindhis in Pakistan’s Sindh province. In April 1984, tensions erupted after troops were deployed to the Siachen Glacier, a high-altitude desolate area close to the China border left un-demarcated by the cease-fire agreement (Karachi Agreement) signed by Pakistan and India in 1949.
Tensions diminished after Rajiv Gandhi became Prime Minister in November 1984 and after a group of Sikh hijackers was brought to trial by Pakistan in March 1985. In December 1985, President Zia and Prime Minister Gandhi pledged not to attack each other’s nuclear facilities. In early 1986, the Indian and Pakistani governments began high-level talks to resolve the Siachen Glacier border dispute and to improve trade.

The 1965 War

In April 1965, a clash between border patrols erupted into fighting in the Rann of Kutch, a sparsely inhabited region along the south-western Indo-Pakistani border. When the Indians withdrew, Pakistan claimed victory. Later, full-scale hostilities erupted in September 1965, when India alleged that insurgents trained and supplied by Pakistan were operating in India-controlled Kashmir. Hostilities ceased three weeks later, following mediation efforts by the UN and interested countries. In January 1966, Indian and Pakistani representatives met in Tashkent, U. S. S. R, and agreed to attempt a peaceful settlement of Kashmir and their other differences.
The 1971 war: Indo-Pakistani relations deteriorated again when civil war erupted in Pakistan, pitting the West Pakistan army against East Pakistanis demanding autonomy and independence. In December India invaded East Pakistan in support of the East Pakistani people. The Pakistani army surrendered at Dhaka and its army of more than 90,000 became Indian prisoners of war. East Pakistan became the independent country of Bangladesh on 6th December 1971.
Following the 1971 Indo-Pakistan conflict, President Zulfiqar Ali Bhutto and Indian Prime Minister Indira Gandhi met in the mountain town of Shimla, India, in July 1972. They agreed to a line of control in Kashmir resulting from the December 17, 1971 cease-fire, and endorsed the principle of settlement of bilateral disputes through peaceful means. In 1974, Pakistan and India agreed to resume postal and telecommunications linkages, and to enact measures to facilitate travel. Trade and diplomatic relations were restored in 1976 after a hiatus of five years.

Pakistan’s Relations with India

Since partition of the sub-continent in 1947, relations between Pakistan and India have been characterized y rivalry and suspicion. The animosity has its roots in religion and history, and is epitomized by the long-running conflict over the state of Jammu and Kashmir. This has recently escalated into a dangerous nuclear arms race.
Historical Background: The Indian subcontinent was partitioned into Hindu-dominated India and the newly created Muslim state of Pakistan after India’s independence from Great Britain in 1947. Severe rioting and population movement ensued and an estimated half a million people were killed in communal violence. About a million people were left homeless. Since partition, the territory of Jammu and Kashmir has remained in dispute, with Pakistan and India both holding sectors. Over 57 years later, Pakistanis still believe that Jammu and Kashmir should have become part of Pakistan because the majority of the state’s population, concentrated in the valley of Kashmir, is Muslim. India, says the state of Jammu and Kashmir belongs to India because by the October 1947 instrument of accession, the Maharaja finally agreed to join India.
First Indo-Pakistani war 47 – 49: At the time of partition, the princely state of Kashmir, through ruled by a Hindu Maharajah, had an overwhelmingly Muslim population. When the Maharajah hesitated in acceding to either Pakistan or India in 1947, some of his Muslim subjects, aided by tribesmen from Pakistan, revolted in favour of joining Pakistan.
The first Indo-Pakistani war started after armed tribesmen from Pakistan’s North – West Frontier Province invaded Kashmir in October 1947. Besieged both by a revolt in his state and by the invasion, the Maharaja requested armed assistance from the government of India. In return he acceded to India, handing over powers of defence, communication and foreign affairs. Both India and Pakistan agreed that the accession would be confirmed by a referendum once hostilities had ceased. In May 1948, the regular army was called upon to protect Pakistan’s borders. Fighting continued throughout the year between Pakistani irregular troops and the Indian army. The war ended on 1st January 1949 when a ceasefire was arranged by the United Nations, which recommended that both Indian and Pakistan should adhere to their commitment to hold a referendum in the state. A ceasefire line was established where the two sides topped fighting and a UN peacekeeping force established. The referendum, however, has never been held.
The 1965 war: In April 1965, a clash between border patrols erupted into fighting in the Rann of Kutch, a sparsely inhabited region along the south-western Indo-Pakistani border. When the Indians withdrew, Pakistan claimed victory. Later, full-scale hostilities erupted in September 1965, when India alleged that insurgents trained and supplied by Pakistan were operating in India-controlled Kashmir. Hostilities ceased three weeks later, following mediation efforts by the UN and interested countries. In January 1966, Indian and Pakistani representatives met in Tashkent, U. S. S. R, and agreed to attempt a peaceful settlement of Kashmir and their other differences.

Martial Law of General Zia-ul-Haq 1977

Elections were held on March 7, 1977. The Pakistan People’s Party won these elections, but was accused by their opponents, Pakistan National Alliance, of rigging the elections. On March 14, 1977, the Alliance started a series of nationwide protests. Talks between the Alliance and Bhutto government were held in June 1977 and an agreement was reached, but it could not be implemented. Fresh elections were announced for October 15, 1977. But on July 5, 1977, the Chief of Army Staff, General Muhammad Zia-ul-Haq, imposed Martial Law and the elections were postponed. General Zia-ul-Haq announced holding of elections within 90 days.
A conference of political leaders was held in February 1978, but a year later, in 1979, General Zia-ul-Haq declared political parties to be defunct and certain political leaders were disqualified. Under General Zia’s Martial Law, there was steady economic growth favouring the private sector, and efforts were made to Islamize the political, legal and economic structures. Pakistan gained the status of Most Favoured Nation from the United States following the Soviet invasion of Afghanistan in December 1979. Vast amounts of military equipment and aid were donated to Pakistan to help the four million Afghan refugees who crossed into Balochistan and North West Frontier Province.
On February 6, 1981, Movement for Restoration of Democracy was established to return democracy to Pakistan. A provisional Constitution was enforced on March 23, 1981, as the Constitution of 1973 had been suspended with the imposition of Martial Law. Finally, after the nomination of Muhammad Khan Junejo as Prime Minister of Pakistan on March 20, 1985, Junejo fulfilled his promise of lifting the Martial Law and the restoration of the fundamental rights, but at the price of enforcement of the Eighth Amendment and the validation of the Revival of the Constitutional Order.

Martial Law of General Yahya Khan 1969

Following disastrous riots in late 1968 and early 1969, Ayub Khan resigned and handed the government over to Gen. Agha Muhammad Yahya Khan on March 25, 1969 who then declared martial law. Pakistan was now under the grip of another Martial Law.
Unlike other military rulers who ruled Pakistan, Yahya Khan was not interested in prolonging his rule. Being deeply aware of the explosive political situation in the country, General Yahya Khan set in motion moves to transfer power to the elected representatives of the people and announced that the general elections would be held on October 5, 1970.
On March 30, 1970 through an Ordinance, he presented an interim constitution: The Legal Framework Order. The Legal Framework Order was actually a formula according to which the forthcoming elections were to be organised. It goes to the credit of Yahya Khan that the first General Elections in the history of Pakistan were held during his regime. His other important step was to dismiss the concept of West Pakistan as one unit in July, 1970.

Martial Law of General Ayub Khan 1958

On October 7, 1958, President Iskander Mirza abrogated the Constitution and declared Martial Law in the country. This was the first of many military regimes to mar Pakistan’s history. With this step, the Constitution of 1956 was abrogated, ministers were dismissed, Central and Provincial Assemblies were dissolved and all political activities were banned. General Muhammad Ayub Khan, the then Commander-in-Chief of the armed forces, became the Chief Martial Law Administrator. The parliamentary system in Pakistan came to end. Within three weeks of assuming charge on October 27, 1958, Iskander Mirza was ousted by General Ayub Khan, who then declared himself President. This was actually welcomed in Pakistan, since the nation had experienced a very unstable political climate since independence.
General Ayub Khan gave himself the rank of Field Marshal. Corruption had become so widespread within the national and civic systems of administration that Ayub Khan was welcomed as a national hero by the people. Soon after coming to power, the new military government promised that they would carry out reforms in the entire government structure and would cleanse the administration of the rampant corruption. A thorough screening process of all government servants was conducted and service records were closely scrutinized. Public servants were tried for misconduct by tribunals consisting of retired judges of the Supreme Court or High Court. If charges were proven, disciplinary action such as dismissal or compulsory retirement of the public servant could take place. A public servant could also be disqualified from holding any public office for 15 years.
About 3,000 officials were dismissed and many other were reduced in rank as a result of these measures. The rest of the government servants were provided with an incentive to working hard. Similarly, a law called the Elective Bodies Disqualification Order, popularly known as E. B. D. O, was promulgated for the disqualification of politicians. Under this law, a person could be disqualified from being a member of any elective body till December 31, 1966. Under this harsh law, several politicians like Suhrawardy and Qayyum Khan were disqualified. The E. B. D. O, particularly its application, was severely criticized in the legal and political circles throughout Pakistan.
After taking over, Ayub Khan focused on the long-standing question of land reforms in West Pakistan. Ayub Khan also introduced a comprehensive scheme of local government, popularly known as Basic Democracies. This scheme was enforced through the Basic Democracies Order on October 27, 1959. Basic Democracies was a pyramidal plan enabling the people to directly elect to Local Council men they knew, who could in turn elect the upper tier of the administration. Altogether there were 80,000 Basic Democrats elected. To lend legitimacy to his rule, Ayub Khan used the Basic Democrats as an electoral college, holding a referendum to seek a mandate to continue in office as President and to have the authority to frame the future Constitution of Pakistan.
The referendum held on February 14, 1960, and was elected not only as President of Pakistan for five years, but also got the mandate to give Pakistan a Constitution of his choice. Ayub Khan set up a Constitution Commission which was not only given the responsibility to make recommendations on the future Constitution, but was also to examine the causes of failure of parliamentary government in Pakistan. The report of the Constitution Commission was presented to Ayub Khan on May 6, 1961. Ayub Khan was not satisfied by the findings. The 1962 Constitution was very different from the recommendation of the Constitution Commission, as Ayub Khan favoured a presidential form of government. The 1962 Constitution was promulgated on March 1. This ended the three-and-a-half-year Martial Law regime of Ayub Khan. A civilian constitutional government under Ayub Khan replaced his previous military regime.
The turning point in Khan’s rule was the Indo-Pakistani war of 1965. Despite the performance of the Pakistani Armed Forces, the settlement that was reached by Khan at Tashkent (January, 1966) was seen as a loss for Pakistan. The settlement led Zulfiqar Ali Bhutto to resign his post and take up opposition to Khan. The war also adversely affected Pakistan’s economy. Despite economic growth, continuing economic and social inequalities, the disadvantaged position of East Pakistan, and limitation of civil liberties provoked increasing discontent with his regime. Eventually, Khan began to increase censorship and his control over the nation. These actions only served to further agitate the Pakistani population, which fell into disarray and required the presence of the army in the cities. Bhutto used this to his political advantage, while the Awami League also made great political gains in East Pakistan. As Khan’s popularity plummeted, he decided to give up rule. In March 1969 he turned over control of Pakistan to General Yahya Khan.

Nutrition and its Importance

The process by which organism obtains food and energy is called nutrition.

Materials which supplies elements and energy as well as required for the synthesis of new protoplasm, are known as the Nutrients.

Food is necessary for life. It is a source of raw material to build new cells and tissues as they grow. Food is a kind of fuel of living organisms like automobiles require petrol. In living organisms food drives essential living process and brings about chemical changes. It provides essential material to make proteins and enzymes.

Cause of Poverty

Poverty is a social problem of Pakistan because majority of the population dwells on the subsistence level, and some even below that. These people are deprived of modern facilities of education, health, communication and education. These people are mostly illiterate and they associate with the same stratum of the society.
Poverty is considered a social problem because these people lag behind the powerful and affluent members of the society. They do not understand the ways of progress and are caught in a “Vicious Circle” of poverty hampering their opportunity to get a head in life, and this lack of opportunity further deteriorating their present level of poverty. Due to their pathetic condition, they get frustrated and may resort to a variety of criminal behaviours disturbing the stability and balance of the peaceful social existence.
Causes and Solution:
1. Illiteracy, because in the competitive economic world of today an illiterate, or for that matter, a moderately literate person can not land a “well-paying” job.
2. Inheriting poverty is another factor for being poor.
3. Wasting time in idle activities and not keeping a check on ones income and outflows also lead to poverty.
4. Wastage of inherent resources in criminal, delinquent and other idle activities is also a cause of poverty in our society.
5. Migration:
Migration refers to the shifting of people from one area (usually rural areas) to another area (mostly cities) within the same country. International migration refers to the mass exodus of people primarily settled in one country to another country in the face of any natural (storms, famines earth quakes) or forced (war, economic depression) event.
About 3 million people migrated from Afghanistan to Pakistan during 1980-90 owing to Russia-Afghan war. These people remained in Pakistan for over 10 years, and they still live here in the wake of socioeconomic devastation that the on going civil war has caused in Afghanistan, Pakistan, has there fore, had to bear the burden of food, shelter, health and other necessities of life. This is an example of international as well as international migration. Refugees from Afghanistan first settled down in the northern areas of Pakistan when they crossed over. However with the passage of time and in search of better economic opportunity within Pakistan, they have migrated to the urban areas of Pakistan. Thus, further straining the already inadequate resources of these cities. It is estimated that 70 to 80 thousand people migrate to Karachi annually from other parts of Pakistan. It is further estimated that 4% population annually is from rural to urban areas of Pakistan.
Similarly, Muslims of the Indian occupied Kashmir are leaving there households at the hands of Indian artro cities, and are migrating into Azad Kashmir to seek shelter and protection. Millions of Bihais are still lying helpless in the camps of Bangladesh. They claim themselves to be Pakistanis and claim their migration to Pakistan. Bangladesh government does not take their responsibility as its citizens. Their socioeconomic condition is very poor. They want permanent settlement of their citizenship in either country. They are facing an acute problem of international migration lying in camps.
Internal (from rural to urban) and international (from neighbouring countries) migration of population have created a number of problems for Pakistan.
6. Mores:
Whereas the folk ways are norms of behaviour our mores regulate our social behaviour. In fact the distinction between folk ways and mores is mores is more of degree rather than that of nature. MacIver has said that Hence we should not think of the mores as something different the folk ways. They are the folk ways, in their capacity as instruments of contral. They express the group standard, the group sense of what is fitting, right and conducive to well being”. Green has defined mores as “common ways of acting which are more definitely regarded as right and proper than the folk ways and which bring greater certainly and surety of punishment if violated are the mores” supnmer has said that “I mean by mores the popular usage and traditions when they include a judgment that there are conducive to social welfare and when they exert coercion on the individual to confirm to them although they are not coordinated by any authority according to Gillin and Gillin “Moreover are those customs and group routine which are thought by the members of society to be necessary to the groups continued existence”.
7. Folkways:
Folkways have become a common expression to designate customs. The folkways then are the recognised or accepted ways of behaving in society. The include conventions, form of etiquette and the myrid modes of behaviour men have evolved and continued to evolve with which to go about the business of social living. They are like products of natural forces which men unconsciously set in operation or they are like the instinctive ways of animal, which are developed out of experience, which reach a final form of maximum adaptation to an interest, which are handed down by tradition and admit of no exception or variation, yet change to meet new conditions, still with the same limited methods, and without rational reflection or purpose. But Gillin and Gillin have defined “Folkways by saying that Folkways are behaviour patterns of every day life which generally arise unconsciously in a group”. Another sociologist defines the folkways in different way that Folkways are simple habits of action common to the members of group. They are the way of folk that are some what standardised and have some degree of traditional sanctions for their persistence.
8. Cultural Change:
The cultural is the aspect of society, which includes norms while the learning of these norms in groups is social, the inventions of television and Radio-set are cultural changes the change brought in attitudes and behaviour of the people by these inventions are social changes all innovations including fact finding in research are cultural changes. The changes brought in society by the application of these innovations are social change, cultural change becomes social change. First there is cultural change which becomes social change in social life.
9. Social Change:
A social Change is difference of material objects and the attitudes of using things along the time and space. Social change involves such idea an interaction, movement, growth and function. Again he holds, that social change means that large number of person engaging some time before. We found our Pakistani society expanding its production of manufacturing industries by increase of almost six fold during the period 1950-61. Social change is meant only such alteration as occur in social organization that is the structure and function of society. It means leaving a thing or an attitude and adopting by a society is called social change.

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