3. TRADE NOT AID IS PATH TO PROSPERITY FOR DEVELOPING WORLD.

Trade not Aid. The trade-not-aid strategy is based on the idea that if developing countries were
able to trade more freely with wealthy countries, they would have more reliable incomes and
they would be much less dependent on external aid to carry out development projects.
International trade would raise incomes and living standards as poor countries were able to
export their way to economic development by selling their products to rich countries eager to
buy their goods Trade not aid is the economic idea that the best way to promote economic
development. It is through promoting free trade instead of providing direct foreign aid.
Explanation. Unfortunately, most wealthy countries have higher tariffs on goods that developing
countries export, such as clothes. These countries end up paying higher tariffs compared to
developed countries, which exports lower-tariff goods Developed countries also subsidize their
own industries - keeping out competition from poorer countries.
3.1. Logic of Trade not Aid.
1. Foreign aid to developing economies creates a negative culture of dependency. Also
recipients of aid, feel lower self-esteem
2. Aid is often subject to specific interests and fails to make real improvements in living
standards.
3 Increasing trade is the best way for developing economies to improve their real economic
welfare and enable a sustainable increase in economic welfare.
4. Supporters of trade not aid point to countries in south east Asia (east of the Indian
subcontinent and south of China) who have been able to dramatically increase economic
welfare through increasing trade.
3.2. How to Implement Trade not Aid.
1. Supporters of trade not aid would firstly seek to remove any tariff barriers or obstacles to free
trade
2. Supporters of free trade usually support free market reforms to reduce the role of government
interference and allow market forces to encourage innovation, efficiency and increased
economic output Policies to support free trade may involve.
i. Reducing power of trades unions
ii. Privatization of inefficient state owned industries
iii. Cracking down on corruption
iv. Lower corporation and income taxes to increase the incentive to invest in export industries.
3.3. Trade not Aid and Political views:
1. WASHINGTON: Prime Minister Nawaz Sharif has said he told US Secretary of State John
Kerry that Pakistan seeks US trade not aid. (22 October, 2013.) Speaking to members of
Pakistani community here on Monday, the premier said: "We all are responsible for the
problems facing Pakistan, we want Pakistan to stand on its own feet, and we want relations on
the basis of equality."
2. We want trade not aid: Mian Shahbaz Sharif (Tuesday, 19 Mar 2013). British High
Commissioner Adam Thomson called on Chief Minister Punjab Mian Shahbaz Sharif on
Tuesday and discussed key issues relating bilateral interests and enhancing cooperation in
various sectors. Shahbaz told the UK high commissioner that his government strongly believed
in self reliance and preferred trade than aid. He stressed the need of boosting bilateral
cooperation between Pakistan and UK in various sectors including economy, trade, energy and
others.

3. Pakistan needs trade not aid: Shah Mehmood Queshi (21 September 2010). NEW YORK.
Foreign Minister Shah Mehmood Qureshi has said Pakistan wants economic growth in
exchange of trade so he urged generous nations to let Pakistan have access to their markets for
his country's economic development, Geo News reported "We need trade more than aid", Shah
Mehmood Qureshi told attendees of a forum. Addressing a Socialist International Forum (SIF) in
New York, he said the government was trying to address economic challenges being surfaced
by worst ever floods in the history of country. Qureshi also held one-on-one meeting with Turk
foreign minister to discuss issues pertaining to cooperation in sectors including agriculture and
skilled education.
3.4. Criticisms of Trade not Aid.
1. Market failure can lead to an under provision of important infrastructure such as education
and infrastructure. Aid, can help overcome these areas of market failure and help the economy
to grow at a faster rate.
2. Developing countries may not be in a position to benefit from free trade. For example, their
comparative advantage may lie in primary products which are subject to fluctuating commodity
prices. The infant industry argument suggests that developing countries may benefit from
temporary tariff barriers as the new industry develops.
3 Aid can help overcome capital shortages and crippling debt payments
3.5. Trade, Not Aid - It Didn't Work!
According to J. Brian Atwood, stepped down in July as administrator for the US Agency
for International Development:
1. We rationalized that the developing world wanted "trade not aid." Yet as time went on, we
saw virtually no increase of trade with the poorest nations. These nations simply could not afford
to buy anything.
2. We are sending very mixed messages to our developing world partners. We say we want
them to embrace democratic market economies and to enjoy the benefits of globalization - but,
at the same time, we withhold the assistance they need to help themselves prepare for this new
world of opportunity.
3. The sad and even dangerous reality is that globalization and the democratic market-economy
movement has not closed the gap between rich and poor. Too often, the changes we see in
developing nations occur within the ruling classes of these societies. That is a dangerous
approach, because when only a small percentage of a population enjoys the benefits of
democracy, disillusionment sets in, and unmet needs can lose a society.
4. Economic growths can reduce poverty in the developing world, but not without investments in
health care, education, job creation, and food security Economic growth can reduce poverty, but
not if corruption is reducing tax revenues by as much as 50 percent, and not if governments
worry more about military expenditures than social services.
5. We are fast approaching a world in which 10 percent of the people control 90 percent of the
wealth. We hear artificiality about a more equitable world where America's vision of a
democratic, market-based globe can be realized, but it isn't matched by resource allocations
6. Our own political system and media seem to miss this credibility gap, but the developing
world doesn't. The dangers created by the poverty gap are not only war and terrorism, but losing
the battle against climate change and disease
7. Foreign aid isn't just an investment we make to uphold our values; it's an investment we
should make to protect our people and to leave a better world to our children and grandchildren.
3.6. Trade Normalization with India.

A meeting was held between the Commerce Ministers of the two countries in New Delhi
in January 2014, on sidelines of the 5th SAARC Business Leaders Conclave. A broad
understanding was reached in this meeting, as reflected in the Joint
Statement issued thereafter. The salient features of this understanding were as follows:
i. Normalization of trade relations & providing Non-Discriminatory Market Access (NDMA) on
reciprocal basis, before the end of February 2014
ii. Increase in working hours at Wagah with the objective of round the clock operations as soon
as possible
iii. Allow transportation of cargo in containers by road through Wagah/Attari

4. INFORMATION TECHNOLOGY.
The term information technology or IT refers to an entire industry which comprises the
usage of computers and software to manage information. Information technology is related to
computing technology such as networking, hardware, the internet or the peoples that work with
these technologies. Many companies now have IT departments for managing the computers,
networks and other technical areas of their businesses. IT jobs include computer programming,
network administration, computer engineering, Web development, technical support, and many
other related occupations. Since we live in the "information age," information technology has
become a part of our everyday lives.
4.1. Importance of information technology.
Information technology is related to studying, designing and developing information
related to computers. This field is growing at a very fast pace over the last few years and
according to successful and well-known people in the IT sector, this growth is expected to
remain stable. Due to the robust growth, millions of jobs have been created in this field.
However, it is very essential for us to understand what the importance of information technology
is.
1. Role in Business Field. Information technology is useful in ensuring the smooth functioning
of all the departments in a company such as the human resource department, finance
department, manufacturing department and in security related purposes. The companies in the
automobile manufacturing sector are able to get rid of any sort of errors or mistakes in the
proper functioning of the tools used for designing and manufacturing purposes.
2. Role in Education Field. Importance of information technology in educational sector is wellknown. It helps the students as well as the teachers in studying the course material easily
because of fast access. Studying the subjects with the help of online libraries and dictionaries
has made grasping and increasing the knowledge easy for the students. The inclusion of
information technology in the syllabus in schools, colleges and universities has helped them in
grasping the subject well and getting their basics cleared. Since, many educational centers have
the online grading system; it has been a boon for the parents of the children to keep a tab on
their performances. Parents can also get the details of the educational record of their child in
schools.
3. Effectiveness in Banking System. Now banks have facilities like online banking, ATMS and
mobile banking service which enable perform banking needs at any given time of the day. With
a simple user interface, users can use their computers or mobile phones to move money across
accounts and they can also get financial details like bank statements and account balance
without going to a physical bank. This process saves time to both the customer and the bank.
Banks can operate more than 20 branches in a specific area, but the use of information

technology to centralize all the information on all these branches, makes it easy to access
information both by the bank employees and the customer.
4. Globalization. It means bringing the world closer (in terms of communication not in
geographic map). Deeper mean that we can not only share information quickly and efficiently,
but we can also bring down barriers of language and geographic boundaries and countries are
able to shares ideas and information with each other. Due to the development of the information
technology sector, the companies are being able to keep themselves aware of the changes in
the global markets.
5. Communication. Before many years internet-caf or making long distance calls or sending
mails via post center are pain in the butt beside of slow it is expensive. Now the technology
grows dramatically the communication become cheaper, quicker and much efficient. The
internet communications has also opened up to face to face communication and live update
streaming not in computer but also in mobile phones and other devices.
6. Cost effectiveness. Information technology has helped to computerize the business process
thus streamlining businesses to make them extremely cost effective money making machines.
This in turn increases productivity which ultimately gives rise to profits that means better pay
and less energetic working conditions.
7. Lots of time. All the online business is open 24 x 7 globally, means most of the business can
be open anytime and anywhere. Purchasing in different countries is convenient and easier due
to use of information technology.
8. Increase in information. Use of technology increases the information of persons. IT
provides latest information all over the world. It helps to know about the conditions of the world.
Information technology increases the information of people about the economies of the world.
Various types of media are also increasing and providing information to people.
9. Improvement in technical know-how. Economies and technologies are developing rapidly.
There is increase in inventions and discoveries. Information technology help a person to
improve its technical know how. IT increases the skill and expertise of population.
10. Weather forecasting. At present, people have to update themselves with weather
conditions. Information technology is very helpful to update with weather due to availability of
future information about weather.
11. Social links. Information technology also helps the population to develop the social links.
There are countless ways to connect with each other. Distances of thousands miles are just
away from a single click. IT increases social links between people and nations.
12. Helpful to manage emergencies. Information technology plays an important and positive
role in case of emergencies and natural calamities. A country can get help of other countries in
case of problems through informing them information technology. IT is very important to control
the emergencies.
4.2. Pakistan Government Should take steps to enhance the role of information
technology:
The steps to develop and use IT performance measures effectively are:
1. Link IT Projects to Agency Goals and Objectives. The effective measurement of an IT
investments contribution to agency accomplishments begins during the planning stage. Done
properly, IT investment planning is based upon the agency mission and strategic business
plans. IT organizations build partnerships with program offices and functional areas to define
projects that contribute to the agencys goals and objectives. The principles of this stage should
be:
i. Establish clear linkage; define specific business goals and objectives
ii. Secure senior management commitment and involvement
iii. Identify stakeholders and customers and nurture consensus

2. Develop Performance Measures. To assess the efficiency and effectiveness of projects,

select a limited number of meaningful performance measures with a mix of short- and long-term
goals. For large IT projects, the project manager or another key individual leads a team to
develop the measures. Measure the outcomes of the IT investment, not just its cost, suitability
and quality. An outcome is the resulting effect of the IT investment on an organization. Effective
performance measures reflect a strong customer focus. This stage comprises of principles
i. Focus on the customer
ii. Select a few meaningful measures to concentrate on whats important
iii. Employ a combination of output and outcome measures
iv. Output measures assess efficiency; outcome measures assess effectiveness
v. Use the Balanced Scorecard for comprehensive view
3. Establish Standard to Compare Future Performance. Standards enable agencies to
determine whether performance improves or declines as a result of an IT investment. Valid
baselines or standards are documented, recognized and accepted by customers and
stakeholders. Standard agency reports can serve as the baseline if, and only if, the reports
apply to the indicators chosen. If no baseline exists, then the performance measures establish
the baseline. The principles are:
i. Develop baselines they are essential to determine if performance improves
ii. Be sure baseline data is consistent with indicators chosen
iii. Use existing agency business reports where applicable
4. Select IT Projects with the Greatest Value. In todays tight budget environment, agencies
can only fund a limited number of IT projects. Consequently, agencies need to select projects
that provide the greatest value. Value is based on the estimated economic return of an IT
investment plus its estimated contribution to an organizations business priorities. This step
focuses on the following principles:
i. Value includes the IT projects return on investment and contribution to business priorities
ii. The major stakeholders determine the value of IT projects
iii. Select IT projects based upon value and risks
5. Integrate with Management Processes. To assure that results improve performance,
integrate them with existing management processes. If the results are not used, no one will take
the measurement process seriously. Laws require agencies to submit performance reports with
their budget submissions. Because it may take years to realize a projects results, agencies face
the challenge of identifying results in their annual budget submissions. The principles for this
step are:
i. Use results or no one will take measurement seriously
ii. Integrate results into business and technology domains
iii. Use results to improve performance not evaluate people
iv. Hold individuals and teams accountable for managing for results
6. Other uses of IT in Pakistan. Government of Pakistan has applied information technology in
various field of economy. It includes:
i. Banazir income support programme.
ii. Computerized facilities at post offices
iii. Web based system is applied in various institutions
iv. Military pension accounts are also attached with information technology system
v. Online complaints system is also activated in different institution.
vi. Information technology is widely used in the process of inflow and outflow of currencies.
vii. Utility bills are paid through facilities provided by information technology systems.