Economics, Paper II

Perpetual budget deficits indicate that governments in Pakistan have been 'die-hard' Keynesian. That legacy still being there, discuss the rationale of endorsing the neo-classical counter-revolution, as witnessed by both privatization and the increasing role of the private sector in Pakistan's economy.

"The debate on 'growth and equity' trade-off that ensued in the second half of the 1960s, was largely responsible for the subsequent paradigm shift. However, the economic and social indicators in the 1970s, scarcely justified the latter". Discuss.

Do you agree that numerous structural imbalances are seriously hampering Pakistan's sustainable development, and sooner they are redressed is better, even if the process involves compromising short-run growth targets?

Differentiate between the private and the social rate of return. Do you agree that public spending on health and education for maximizing the latter? What in your opinion is the respective state of affairs in Pakistan?

Differentiate between foreign portfolio and foreign direct investment, and discuss the relative merits and demerits of the each type for a country like Pakistan.

"There are some believe that in the early 1960s, Pakistan was at the take-off stage of the Rostow's scheme of growth. However, a close study of the latter indicates that Pakistan, in many ways, has jumped into the last stage now, without-ever having transcended even the second stage of growth". Discuss.

Compare the performance of Pakistan's agricultural pricing policy with that of the Common Agricultural Policy (CAP) and the Farm Support Program of the U.S. of America.