Why is Pakistan counted as underdeveloped?

Why is Pakistan counted as underdeveloped? Right now, Rs. 52,941 is the debt which is on the shoulders of each and every Pakistan, where total external and internal debt Pakistan today accountable is Rupees Nine trillion. Where as in the mid-nineties, the same figure was Rupees 30,000 which was to be borne by each Pakistani citizen. The government of PM Nawaz Shareef came up with an initiative of Qarz Utaro Scheme which somehow gave a relieving cushion to the debt servicing piles. Right now there is a total financial dichotomy in the country. In these worsening situations, it is again said that national treasury is facing an additional burden of Rupees 14 billion due to 12 percent increase in military pensions in 2007-2008  [3]  . On the other side of the coin, futuristic look is giving much cynical and gloomy representation as the total external debt is likely to soar by more than 43 per cent over the next five years, to about $73 billion in 2015-16 from about $50.76 billion early this year  [4]  . Though the incapability and powerlessness of numerous countries to use the provided external supply in terms of aid or debt, it is further attributed to many other characteristic factors, the insufficient and scarce absorptive competence is termed as the rule of thumb applicable in many UDCs as a limitation on the well-organized and proficient utilization of external resources. The normal debt indicators which are commonly practiced in Pakistan are: Debt : GNP ratio Debt : Debt Service Liability Debt : Foreign Exchange Earnings CHAPTER II LITERATURE REVIEW (Ashfaq, 2005) in his research (Aid Effectiveness, Debt Capacity and Debt Management in the Economy of Pakistan) discusses that discrete views are prevailing concerning the usefulness of external assistance to the UDCs. As many of the researchers and economist say that aid and debt is much useful in lessening the monetary tailback and blockage to enlargement of many developing countries like Pakistan, no matter the essence of taking assistance is satisfied or not (for example Cassen 1994, G. Papanek 1972, etc). The challengers declare that foreign assistance either in terms of aid or debt always caused disastrous affects on the maturity of the recipient country. A number of gives a moderate point of views on the same debate. The association linking external debt and economic escalation has been observed broadly in recent years. These studies have mostly focused on the destructive influence of a countrys debt overhang which means the addition of a stockpile of liability so hefty as to terrorize the countrys ability to pay back its precedent loan. The theme of the research is to see how and to what degree the foreign assistance has and debt affected the economy. It is to analyze the external assistance and resources in terms of its dynamic and fruitful role in the economy and as a bridge of expansion and growth or vice versa. The main idea is to check and estimate the effectiveness of foreign air and external debt in the country and the researcher seek to determine whether further resources linked with external assistance have in point of fact brought some kind of revolution in the economy or the situation is completely opposite of what it should be. The research will also investigate the position of debt lumber on Pakistan, giving extreme importance given on Pakistans competence in debt servicing and its retirement; in the light of major problems in debt management practices creating worst economic shape of the country. ( Hayat et al, 2010) discuss in their research (External debt and Economic Growth: Empirical evidence from Pakistan) of the known fact to everyone that Pakistan does not enjoy a good repute for aid and external debt. It has almost unmatchable witnesses of significant economic assistance from about each part of the globe. He further argues that Since Pakistans emergence of world map; it is facing crucial problems in balance of payments deficit. To finance this balance of payments deficit and loses, Pakistan is heavily relying on external debt. World Bank classified Pakistan as severely indebted country of South Asia in 2001.Even though, Pakistan shows a mushroom growth in its economy in the presence of serious economic and highest degree of political in-stability. Although it also showed variability with the passage of time but the situation at this point in time is worse where the growth rate of GDP is just 2% which was 7% in 2007. The outstanding stock of external debt swelled by a huge sum of Rupees 1095.1 billion in FY09, registering a growth of 36.1 percent against 28.9 percent in FY08. As far as debt is related, International Monetary Fund (IMF) debt further damager the condition. The rise in debt stock of IMF by US$ 3.8 billion was the major factor for rise in total debt stock during FY09. As discussed earlier, facing severe balance of payments problems the government had approached the IMF for a US$7.6 billion Stand-By Arrangement (SBA) loan which was approved by the IMF board in November 2008. The IMF has also acceded to government of Pakistans additional request for US$3.2 billion, which has increased the total assistance to $11.3 billion. The bad and declining economic conditions also creates problems in Pakistan foreign exchange re serves. It was $ 14 Billion in June 2007 showing a drastic decline of 75.71% by the mid of 2010 to just $ 3.4 Billion. Prior to the events of September 11, 2001, Pakistans economy was caught in a vicious debt trap. U.S. bilateral aid to Pakistan started in 1951. Pakistan, in total, received a massive amount of $2 billion dollars between 1953 and 1961. On the other side, by the early 1960s, aid reached $400 million per year. At the peak level, we get to know that in the first phase of the same decade, only United Stated provided fifty percent of the total aid Pakistan was receiving; which covered one third of the development budget and financed more than half of the import bill. It was the time by 1982, US was givibg $ 5.1 Billion to Pakistan as aid on annual basis. (Ibrahim, 2009) in his research (U.S. aid to Pakistan-U.S. Tax payers have funded Pakistani corruption) discussed the situation getting further worse when sanctions were imposed by the G-8 countries on bilateral and multilateral lending as a consequence of Pakistans nuclear tests in May 1998 and subsequently because of the military coup in October 1999. Pakistan was able to reschedule US $ 3.96 billion of its bi-lateral liabilities through the Paris Club in 2000. The reschedule was, however, on short-term basis and dependent on the IMF agreement, which was being finalized at the time with all its stringent conditionality. The post September 11, 2001, events once again brought Pakistan into the limelight of global geo-strategic interests. The most significant benefit which Pakistan attained vis-à  -vis its external debt problem was the restructuring agreement with the Paris Club in December 2001. Under the agreement, the debt repayment period was extended to a span of 38 years with a grace period of 15 years. This means that Pakistans debt servicing liabilities will decline by US $ 2.7 billion between 2002 and 2004 and according to the State Bank; the net present value of external debt is expected to decline somewhere between 27 and 43 per cent between 2002 and 2017. All these problems faced by Pakistan are quite alarming and shows a need of taking massive and severe steps to take the position in a controllable mode, as further delay will make Pakistan drift herself into many other financial as well as social issues. (Ahmed, 2010) argued that Pakistan must refuse to pay foreign debt payment and spend the same amount on relief and rehabilitation of people affected from recent flood and terrorism. He said that 20 Million populations have got effected from the angry flood which are a crucial part of $ 54 Billion foreign debt yet to be paid back with interest. People in Pakistan are already facing unemployment, hunger and worst hardships and the episode of the flood creating massive problems for such a huge number of populations is again devastating. Therefore, Pakistan is greatly unable to service its debt liability. Pakistan spends $ 3 Billion every year on its debt servicing where Pakistans debt-to-GDP ratio has skipped the massive height of 61% this fiscal year. Government is sometimes talking of cutting development budget and reduces subsidies on the call of IMF. The situation according to him is getting more badly where Government is talking about levying flood tax on the poor people of Pakista n. Despite of taking such steps, Pakistans government should take serious steps in the eradication of such problems by cutting military and capital budgets. (Haider Mullick, 2004) discusses the fact that though Pakistan has been a front-line ally to The United States for the war on terrorism to curb the threats on the US soil; but received a sum of $2.4 billion in foreign aid  [5]  . He further argues that after the terrorist attacks on the WTC on September 11, 2001 many of the rich and developed nations pondered over the fact that foreign aid to UDCs has now turned to a new phenomenon with a blend of new priority and importance unlike previous times. All is due to the reason of such UDCs falling into the hands of radical extremists and fanatics which finance the poor and misuse their status of poverty. It is just due to the Pakistans involvement to help the US and NATO forces to defeat the Taliban regime in Afghanistan and the US are allocating massive aid in an injecting manner similar to 80s. But the end result could become much fierce. There can be a financial dead-lock in the country if the US and NATO move out of the Afghan lan d in next 10 years. Our system in Pakistan will be so dependent on the aid and grants that when it will be removed; there is a growing fear of over all system-collapse. He stresses on the immediate need of autarky and self dependence like India and China. (Martin, 2009) writes in his research about Pakistan Capital Crisis that Pakistans government has reached to an agreement with the International Monetary Fund (IMF) for a sum of $ 7.6 B in the form of loans followed by massive hefts of impositions on the economy of Pakistan. Despite of the huge sum, Pakistans financial dichotomy still persists and the state has requested additionally for a sum of $ 4.5 billion. He states that Pakistan badly affected capital situation is affecting the nations over all economic efficiency and performance leading towards socio-political havoc. He further extends his argument to the debt burden Pakistan is getting in such monetary and socio-economics problems that it will become very difficult for a common Pakistani to win bread for his family. He discusses about different research groups which have recently issued reports on the prevailing circumstances in the country that further recommends on the actions that the United States can do to help an improv ed economic system. He indicates the role of Congress that may consider many of the recommendations and take severe actions to increase in USs non-military assistance and establishment of reconstruction opportunity zones in the country. It is barely on the mercy of time which will show the effectiveness of what such recommendations will bring; prosperity or disaster. The US is interested in a firm and established democratic Pakistan which can act as a front-line ally to the US interests in Afghanistan and South Asia. The US wants to assist Pakistan on the basis of regional and global terrorism which is the major threat to the US after September 11, 2001. Now, the US think-tanks are pondering over the fact that a financial stalemate in the country will might weaken multilateral endeavors to soothe South Asia and restrain the growing emergence of Islamic extremism; so there is an immediate need of capital assistance in a rapid and quick way. (Momani, 2004) discusses the Triad focusing on Pakistan, The IMF and The U.S. War on Terrosism. She argues the basic question that did The U.S intrude to approve the final payout of Pakistans IMF as a prize to support the United States war on terrorism? It is a rule of thumb that The IMF has been always politicized to attain foreign policy objectives which are important to the U.S. It is a matter of fact that Pakistans loans approval was immediately given after 9/11 attacks by the IMF but was scheduled for the approval by the executive board of IMF. The overall situation gets clumsy as there are strong and positive linkages of the United States influence inside the decision makings of The IMF to strongly correlate objectives getting success in the end- Exactly what The United States have been doing to all Under developed countries (UDCs) across the globe. Although there are weak evidences present of the USs influence in the case of Pakistan but the writer argues that The United State s clearly wanted to take a credit for the approved payment by the IMF to the country, getting General Musharraf as a front line ally to attack Afghanistan. (Hameed et al , 2008) discuss how external debt and aid is deteriorating the fiscal and monetary policies of Pakistan. In their research that even in short run or long run; the relationship between debt shamble and economic growth is always negative in the Pakistans history until now. It is clear to every one that debt and debt servicing responsibilities always bring negative productivity as far as labor and capital is concerned. Now, the relationship is causal to the fiscal deficit in the country. When there is a problem in the labor and productivity, there is always a negative impact on the taxation base. On the other hand there are severe problems prevailing as people always look to avoid or evade taxes. The researchers also focused on the need of cutting the above mentioned expenditures drastically so that there should be an adequate cushion given to the injured fiscal structure of the country. They also stressed on the reality that debt service relation tends to affect negativel y GDP and thereby the rate of economic growth in the long-run, which, in turn, reduces the ability of the country to service its debt. Now tax being the foremost and crucial part of the fiscal structure as revenue plays a very important element as far as the capital, development and military expenditures are in question. The researchers claim that external debt is not good for a country in general and Pakistan particularly after a certain limit as piles of interest has to be returned back which further deteriorate the fiscal structure of the country. (Hashmi, 2009) worked on the reflections of Pakistans economy due to the war on terror. On the other hand she also focused on the mutual relationship between the fiscal discrepancies and Pakistans involvement in the War on terror as an ally of the United States. As matter of fact, Pakistan was a heaven for most of the world most renowned investors which always saw Pakistan as place where huge piles of profits are present. There were and still ate many latent demands which people want in their life. Consequently, many of the Multinational companies and other world class organizations were interested in setting up business in Pakistan and importing the raw material in the field of textiles and other services into their own countries. With the invasion of NATO and US troops in Afghanistan, the situation was worse than ever before in the history of Pakistan. All of a sudden all the investors from Pakistan flew away taking all their capital and investment out of the country. Stock markets crashed as due to the war in Afghanistan, all the foreign investors were afraid of loosing their huge chunks of virtues; the virtues which in the end makes Pakistan generates heavy amounts of taxes being used as revenue for the state. There is a worse fiscal and monetary gridlock in the country after facing much socio-economic and political instability. (Burki, 2008) applies the political economic analysis of decision making processes in the donor country to the special case of US aid to Pakistan. Pakistan is not an extremely poor country but nevertheless, it is among the 5 major recipients of foreign aid. Over the last decades, Pakistans aid receipts show considerable shifts for which no obvious development related reasons can be provided. This calls for explanations related to reasons other than developmental efficiency which require a closer look at decision making processes on the donor side. Looking at the United States as the single most important bilateral donor, we draw upon earlier analyses of the effect of lobbying on congressional decision making. Numerous studies, like Coughlin (1985), Tosini and Tower (1987), Harper and Aldrich (1991), Marks (1993) and Baldwin and Magee (1998) empirically tested the hypothesis of domestic lobbies affecting congressional voting behavior with respect to US trade policy. A more recent stud y by Gawanda et al. (2004) also includes the effect of lobbies working for foreign principals, e.g., for foreign governments and foreign business groups. As a result, the external assistance Pakistan has been given was all on the basis of political interests of the donor countries and show minimal or negligible improvement in the economic and fiscal structure of the country. Over the years, the sums of aids and external debts have been getting a sky-high increase but the monetary situation is worse since 1947. He argues that there is a negative relation of aid and foreign debt with the economic uplift of a country, especially in Pakistan where the situation is quite different due to its involvement in war on terror, prevailing corruption, and no productivity due to energy crisis, Minimum subsidies and The IMFs impositions on the poor Pakistani. Results from ineffective use of the money show that unidirectional causality runs from the foreign exchange constraint to the budget deficit and then from the budget deficit to the external debt stock. Bi-directional causality was observed between foreign exchange requirements and the external debt stock. Chapter III 3.0 Theoretical Framework CHAPTER IV METHODOLOGY AND CHOICE OF ANALYTICAL TECHNIQUE 4.1 Research type In order to conduct my research study the most suitable data I have gathered is secondary in nature collected from reliable and consistent data sources and no primary data has been collected, hence my study will be referred to as secondary research. 4.2 Data type Reference Period Data type is purely secondary in nature as no primary data has been acquired. Reference period for my research is from 1995-2009 Research Hypothesis 4.3.1 Basic Research Hypothesis First Hypothesis Ho: External aid and debt has a negative correlation with the GDP growth in Pakistan from 1995-2009 HA: External aid and debt has a positive correlation with the GDP growth in Pakistan from 1995-2009 Second Hypothesis Ho: Economic growth will not be continual by rising external debt and foreign aid to Pakistan HA: Economic growth will be continual by rising external debt and foreign aid to Pakistan 4.3.2 Statistical Hypothesis Grants as a percentage of GDP H0: To test the hypothesis that Grants as a percentage of GDP has no negative on External debt as a percentage of GGP H0:ÃŽÂ ²1=0 H1: To test the hypothesis that Grants as a percentage of GDP has negative impact on External debt as a percentage of GGP H1:ÃŽÂ ²1à ¢Ã¢â‚¬ °Ã‚  0 Foreign Direct Investment H0: To test the hypothesis that FDI as a percentage of GDP has insignificant no negative on External debt as a percentage of GDP H0:ÃŽÂ ²2=0 H1: To test the hypothesis that FDI as a percentage of GDP has negative impact on External debt as a percentage of GDP H1:ÃŽÂ ²2à ¢Ã¢â‚¬ °Ã‚  0 Debt Servicing H0: To test the hypothesis that Debt servicing as a percentage of GDP has no positive impact on External debt as a percentage of GDP H0:ÃŽÂ ²3=0 H1: To test the hypothesis Debt Servicing as a percentage of GDP has positive impact on External debt as a percentage of GDP H1:ÃŽÂ ²3à ¢Ã¢â‚¬ °Ã‚  0 Trade Deficit H0: To test the hypothesis that Trade Deficit as a percentage of GDP has no negative impact on External debt as a percentage of GDP H0:ÃŽÂ ²4=0 H1: To test the hypothesis that Trade Deficit as a percentage of GDP has negative impact on External debt as a percentage of GDP H1:ÃŽÂ ²4à ¢Ã¢â‚¬ °Ã‚  0 Fiscal Deficit H0: To test the hypothesis that Fiscal Deficit as a percentage of GDP has no negative impact on External debt as a percentage of GDP H0:ÃŽÂ ²5=0 H1: To test the hypothesis that Fiscal Deficit as a percentage of GDP P has negative impact on External debt as a percentage of GDP H1:ÃŽÂ ²5à ¢Ã¢â‚¬ °Ã‚  0 Saving Investment Gap H0: To test the hypothesis that Saving- Investment Gap as a percentage of GDP has no negative impact on External debt as a percentage of GDP H0:ÃŽÂ ²6=0 H1: To test the hypothesis that Saving- Investment Gap as a percentage of GDP P has negative impact on External debt as a percentage of GDP H1:ÃŽÂ ²6à ¢Ã¢â‚¬ °Ã‚  0 3.4.1 Variable reference list Dependent Variable External Debt as a percentage of GDP (Malik, 2010) Independent Variables Fiscal Deficit as a percentage of GDP* (Ashfaq, et al 1999) Foreign Direct Investment as a percentage of GDP* (Azam et al, 2009) Balance of Payment as a Percentage of GDP* (Loser, 1977) and (Malik et al, 2010) Exchange rate fluctuation (Mahmood et al , 2009) Capital Flight (Chipalkati , Rishi; 2009) Foreign Aid as a percentage of GDP* (Miles B. Cahill, Paul N. Isely) Saving-Investment Gap percentage of GDP (Malik, 2010) Debt Servicing percentage of GDP* (Clement, et al, 2009) Trade Deficit as a percentage of GDP* (Mohammad, 2010) Grants excluding technical assistance percentage of GDP* (Befekadu Degefe ) * as a percentage of GDP is used to gauge the variables in accordance to economic growth of Pakistan Information gathering and sampling procedures Data Sources The data sources for my research study are as follows: WDI Data reliability and internal consistency WDI is a renowned database developed by World Bank. The data from WDI is completely reliable to be used in the research. 3.4.4 Data analysis tools and techniques Multiple regression: To measure the increasing effect of independent variables on the dependent variable and to obtain a single regression line for all variables, which will be further used in hypothesis testing Granger Causality: The researcher would like to identify whether variation in a variable will enclose an impact on changes other variables Scatter Plots: Such plots will also be used for graphical representation of data. 4.1 Statistical Analysis Grants and External Debt Dependent Variable: External Debt as a Percentage of GDP Independent Variable: Grants excluding technical assistance as a percentage of GDP In this relation, the result is significant at 15% level. Keeping all other variables constant, one Dollar change in External debt as a percentage of GDP creates negative 3.83 Dollars in Grants excluding technical assistance (as a percentage of GDP). This is because in many underdeveloped parts of the world, Grants excluding technical assistance is used to finance much governmental expenditure. Also, such grants are also used in debt servicing. As a special case, Pakistan has been using such grants in the same manner. This is because Pakistan has been a key ally to The United States of America for War against Terrorism. The country has been paying much in the form of deficits in each governmental tool. Hence, the lesser Grants given to Pakistan, more piling of external debt will be apparent. T-stat for ÃŽÂ ²1 comes out to be 1.156; where T-Critical is 1.108 at 15% significant level. In this way, the research tends to reject H0, where Hypothesis is: H0: To test the hypothesis that Grants as a percentage of GDP has no negative impact on External debt as a percentage of GGP H0:ÃŽÂ ²1=0 H1: To test the hypothesis that Grants as a percentage of GDP has negative impact on External debt as a percentage of GGP H1:ÃŽÂ ²1à ¢Ã¢â‚¬ °Ã‚  0 Grants and External Debt Dependent Variable: External Debt as a Percentage of GDP Independent Variable: Grants excluding technical assistance as a percentage of GDP In this relation, the result is significant at 15% level. Keeping all other variables constant, one Dollar change in External debt as a percentage of GDP creates negative 3.83 Dollars in Grants excluding technical assistance (as a percentage of GDP). This is because in many underdeveloped parts of the world, Grants excluding technical assistance is used to finance much governmental expenditure. Also, such grants are also used in debt servicing. As a special case, Pakistan has been using such grants in the same manner. This is because Pakistan has been a key ally to The United States of America for War against Terrorism. The country has been paying much in the form of deficits in each governmental tool. Hence, the lesser Grants given to Pakistan, more piling of external debt will be apparent. As the regression equation is: ÃŽÂ ± = 35.0 3.83 ÃŽÂ ²1 2.89 ÃŽÂ ²2 1.87 ÃŽÂ ²3 + 0.581 ÃŽÂ ²4 + 3.10 ÃŽÂ ²5 0.133 ÃŽÂ ²6 T-stat for ÃŽÂ ²1 comes out to be 1.156; where T-Critical is 1.108 at 15% significant level. In this way, the research tends to reject H0, where Hypothesis is: H0: To test the hypothesis that Grants as a percentage of GDP has positive impact on External debt as a percentage of GGP H0:ÃŽÂ ²1=0 H1: To test the hypothesis that Grants as a percentage of GDP has negative impact on External debt as a percentage of GGP H1:ÃŽÂ ²1à ¢Ã¢â‚¬ °Ã‚  0 Grants and External Debt Dependent Variable: External Debt as a Percentage of GDP Independent Variable: FDI as a percentage of GDP H0: To test the hypothesis that FDI as a percentage of GDP has positive correlation with External debt as a percentage of GDP H0:ÃŽÂ ²2=0 H1: To test the hypothesis that FDI as a percentage of GDP has negative correlation with External debt as a percentage of GDP H1:ÃŽÂ ²2à ¢Ã¢â‚¬ °Ã‚  0 As the regression equation is: ÃŽÂ ± = 35.0 3.83 ÃŽÂ ²1 2.89 ÃŽÂ ²2 1.87 ÃŽÂ ²3 + 0.581 ÃŽÂ ²4 + 3.10 ÃŽÂ ²5 0.133 ÃŽÂ ²6 It states that negative change of $ 2.89 in FDI (as a percentage of GDP) adds $ 1 External Debt (as a percentage of GDP. Hence, lesser the FDI, more is the external debt. On the other hand t-stat for ÃŽÂ ²2 is 1.824; where T-Critical is 1.108 at 15% significant level. Since t-stat is greater than t-critical, the researcher tends to reject the null hypothesis which states that FDI (as a percentage of GDP) as a negative correlation with external debt (as a percentage of GDP) Debt Servicing and External Debt Dependent Variable: External Debt as a Percentage of GDP Independent Variable: Debt Servicing as a percentage of GDP H0: To test the hypothesis that Debt servicing as a percentage of GDP has positive correlation with External debt as a percentage of GDP H0:ÃŽÂ ²3=0 H1: To test the hypothesis Debt Servicing as a percentage of GDP has negative correlation with External debt as a percentage of GDP H1:ÃŽÂ ²3à ¢Ã¢â‚¬ °Ã‚  0 As the regression equation suggests: ÃŽÂ ± = 35.0 3.83 ÃŽÂ ²1 2.89 ÃŽÂ ²2 1.87 ÃŽÂ ²3 + 0.581 ÃŽÂ ²4 + 3.10 ÃŽÂ ²5 0.133 ÃŽÂ ²6 A negative change of $ 1.87 in Debt Servicing as a percentage of GDP adds $ 1 External Debt (as a percentage of GDP). Hence, lesser the debt retirement is, the more is the external debt piling is seen in Pakistan (1995-2009) On the other hand t-stat for ÃŽÂ ²3 is 1.442; where T-Critical is 1.108 at 15% significant level. Since t-stat is greater than t-critical, the researcher tends to reject the null hypothesis which states that Debt Servicing (as a percentage of GDP) as a negative correlation with external debt (as a percentage of GDP). Trade Deficit and External Debt Dependent Variable: External Debt as a Percentage of GDP Independent Variable: Trade Deficit as a percentage of GDP H0: To test the hypothesis that Trade Deficit as a percentage of GDP has a positive correlation with External debt as a percentage of GDP H0:ÃŽÂ ²4=0 H1: To test the hypothesis that Trade Deficit as a percentage of GDP has a negative correlation with External debt as a percentage of GDP H1:ÃŽÂ ²4à ¢Ã¢â‚¬ °Ã‚  0 The regression equation suggests that: ÃŽÂ ± = 35.0 3.83 ÃŽÂ ²1 2.89 ÃŽÂ ²2 1.87 ÃŽÂ ²3 + 0.581 ÃŽÂ ²4 + 3.10 ÃŽÂ ²5 0.133 ÃŽÂ ²6 $ 0.581 change in Trade Deficit (Trade deficit increases i.e. Imports>exports) as a percentage of GDP creates a positive change of $ 0.581 External debt as a percentage of GDP. Hence, greater the trade deficit is, the more is external debt evident in Pakistan (1995-2009) On the other hand t-stat for ÃŽÂ ²4 is 1.311; where T-Critical is 1.108 at 15% significant level. Since t-stat is greater than t-critical, the researcher tends to reject the null hypothesis which states that Trade Deficit (as a percentage of GDP) as a negative correlation with external debt (as a percentage of GDP). Grants and External Debt Dependent Variable: External Debt as a Percentage of GDP Independent Variable: Fiscal Deficit as a percentage of GDP H0: To test the hypothesis that Fiscal Deficit as a percentage of GDP has no negative impact on External debt as a percentage of GDP H0:ÃŽÂ ²5=0 H1: To test the hypothesis that Fiscal Deficit as a percentage of GDP P has negative impact on External debt as a percentage of GDP H1:ÃŽÂ ²5à ¢Ã¢â‚¬ °Ã‚  0 The regression equation suggests that: ÃŽÂ ± = 35.0 3.83 ÃŽÂ ²1 2.89 ÃŽÂ ²2 1.87 ÃŽÂ ²3 + 0.581 ÃŽÂ ²4 + 3.10 ÃŽÂ ²5 0.133 ÃŽÂ ²6 $3.10 change in Fiscal Deficit (i.e. Government Revenues > Government Expenses)as a percentage of GDP creates a positive change of $ 1.00 in Pakistans external debt. Hence, greater the fiscal deficit is, the more is external debt is in Pakistan during 1995-2009. On the other hand t-stat for ÃŽÂ ²4 is 1.834; where T-Critical is 1.108 at 15% significant level. Since t-stat is greater than t-critical, the researcher tends to reject the null hypothesis which states that Fiscal Deficit (as a percentage of GDP) as a negative correlation with external debt (as a percentage of GDP). Saving Investment Gap and External Debt Dependent Variable: External Debt as a Percentage of GDP Independent Variable: Saving Investment gap as a percentage of GDP H0: To test the hypothesis that Saving- Investment Gap as a percentage of GDP has positive correlation on External debt as a percentage of GDP H0:ÃŽÂ ²6=0 H1: To test the hypothesis that Saving- Investment Gap as a percentage of GDP P has negative correlation

Garrison Keillors The Prodigal Son vs. Lukes The Parable of the Prodi

Garrison Keillor's The Prodigal Son vs. Luke's The Parable of the Prodigal Son The classic story of the Prodigal Son is one of the best known parables in literature. A parable is often times described as a short narrative which teaches a moral; however, the plot is more realistic, than say a fable, and the characters are humans as oppose to animals or natural forces within nature. Parables are also presented in a more suggestive tone, which leaves them more open to interpretation. The play Prodigal Son told by Garrison Keillor differs greatly in terms of style compared to Lukes The Parable of the Prodigal Son told in the Catholic scriptures. Both of these parables convey the same moral, however, both are open to very different interpretation. This option for different interpretations when referring to this story truly exemplifies what a parable is meant to be. Keillor took the classic story of the Prodigal Son, told in the writings of Luke, and was able to transform it into a comedic piece of literature, in which people of the times could better relate to. It is argued that Keillors version is disrespectful to the original parable; however, I disagree with that for many reasons. Understanding the true definition f a parable itself assists in the supporting of Keillors style and technique. The parable story the Prodigal Son told by Keillor is much more dramatic, by which he was able to establish more tone within each character. He did that by writing the parable in a script form, which was intended to be acted out for an audience. That was not the case with thte biblical story, where it was told in third person perspective. Keillors version of unveiling the moral though the characters first person dialog allowed the audienc... ...eturns home to a warm welcome. This definition holds true to the parable that is told by both Catholic scripture and Keillors comedy. Overall I found that Keillor did an excellent job incorporating more personality to the characters in his story. This allowed for more of a connection between the audience and the parable itself. He was able to change the dynamics of the story using a more conventional method of comedy and wit in order to stay true to the moral told in the traditional scripture version of The Parable of the Prodigal Son. Works Cited Kennedy, X.J., and Dana Gioia. Literature; Fiction, Poetry, and Drama. Ed. Longman. New York: 2002. Kennedy, X.J., and Dana Gioia. The Parable of the Prodigal Son. Literature; Fiction, Poetry, and Drama. Ed. Longman. New York: 2002. 232-233. 1361-1366. Prodigal. Microsoft Encarta College Dictionary. 1st ed. 2001.

Investigating a Crime Scene Essay

On TV shows like â€Å"CSI,† viewers get to watch as investigators find and collect evidence at the scene of a crime, making blood appear as if by magic and swabbing every mouth in the vicinity. Many of us believe we have a pretty good grip on the process, and rumor has it criminals are getting a jump on the good guys by using the tips they pick up from these shows. But does Hollywood get it right? Do crime scene investigators interview suspects and catch the bad guys, or is their job all about collecting physical evidence? In this paper, I’ll examine how a crime scene investigation really takes place. When working a crime scene there are many steps that must take place in order for any investigation to hold up in court. A proper investigation can take hours, but the end result can lead to a conviction of the guilty and justice for victim’s families. The first officer at the crime scene should do everything they can to keep all evidence in its original state. The crime scene must be blocked off immediately to avoid any contamination or loss of evidence. Boundaries should be established for each area of the scene that needs to be secluded. This will include any paths of entry or exits and areas where evidence has been discarded or located. All areas of the crime scene should be blocked off using tape, ropes, or traffic cones. If the crime took place indoors, a single room can be blocked off depending on the place of the crime and where it occurred. Police barricades and guards can help with securing the scene as well. This is a good way to monitor the area to make sure no unwanted people get through and cause loss of evidence. This will include officers that are not involved in the case, neighbors and the family of the victim. Securing the crime scene must be done in a timely manner and all persons entering the scene should be recorded, and times of the entry should be taken as well. Before anyone can enter the scene, the responding officer must first establish a walk way. This is done to ensure that no evidence is being touched and is out of the way before walking into the scene. This will include investigators or medical examiners that need to get to any victims that may be injured. Once the crime scene has been blocked off and secured, the investigators will process the area. At this time a strategy is put into place. This will start the examination of the area and documentation of all evidence at the scene. A walk through of the scene will take place by the lead investigator to establish how the scene was entered and exited at the time that the crime took place. Once the points of entry are established, the investigator will find the center of the scene using the path that the first officer established. A crime scene is three dimensional so that when making their way to the center of the crime scene, evidence will be located. It is the investigators responsibility to photograph and document these items as they are seen. There are many questions that will need to be answered during the investigation such as but not limited to: did this crime involve violence, or are there any hazardous conditions that they should be aware of? The scene should be looked over as if trying to put a puzzle together. Looking around at objects in the crime scene can tell a whole lot as to the time the accident occurred or if objects seem like they are missing. There are two categories a crime scene can fall under; one is a primary crime scene where the crime occurred or a secondary crime scene where evidence was taken to and is now a part of the crime scene. A command center needs to be put into place outside the crime scene. This is where the investigators receive their assignments, store the equipment that will be needed or where they gather to discuss or go over the case. Tasks are assigned to all of the investigators which will ensure that all aspects of the area are covered. Tasks include locating, processing, accessing, photographing and sketching the evidence at the scene. Searching a crime scene and how a crime investigation is carried out depends on the size and area of the scene being investigated. The different kind of crime that was committed can have a great toll on how the investigation is carried out as well. When doing a search of the crime scene, different kinds of flash or illumination are used to show fingerprints, handprints or other things that may be gathered as evidence. There are different patterns in which a crime scene is investigated or searched. Each pattern depends on the scene and what kind of evidence is suspected to be found at the scene. This could include: a line or strip search where two investigators walk in straight lines across the crime scene and search for evidence, a grid search where investigators form a grid throughout the scene making overlapping lines, a spiral search where an investigator works in a spiral motion from the outer part of the scene or vice versa, a wheel ray search which is done by a group of investigators that move from the boundary of the crime scene and work their way to the middle of the scene, or a quadrant or zone search where the crime is divided into sections and is split up between investigators and divided again to search more thoroughly through that section. When searching a crime scene at night difficulties will come up due to lighting. Boundaries of the scene are hard to see when trying to locate evidence. The search of evidence is determined by each crime scene, because every crime is different in its own way. Locating evidence includes footprints, weapons, blood spatter, trace fibers or hairs. When an investigator locates evidence everything should be recorded. Exact location in notes, photos and sketches must be done, and all evidence must be marked with an evidence marker once it is recorded. A search will end when all evidence is located. Once a decision has been made that the investigation has come to a close, the team will conduct a final survey. This survey will include an overview of the scene and all evidence is collected and bagged. Taking notes at a crime scene begins the moment an investigator gets a call. All notes must be specific. Notes should begin with all the information of the person who has called in, the time the call was placed and all of the information that is given about the crime, as well as the assigned case number that is given. When an investigator arrives at the scene, date, time and all persons present must be recorded. All notes should be in detail, and all movements that are taken should be documented. The lead investigator will do a walkthrough of the scene and at this time notes are taken with details of the condition of the scene. All notes taken should be in blue or black ink. Notes are very important to the investigation, and all notes should be taken at the scene and not left up to memory. This ensures that all information is recorded and nothing is left out. Notes should include all documentation of the victims, witnesses, evidence collected, tasks being performed, and when and how an object is packaged. There should be no task, detail or movement left out when taking notes at a crime scene. Photographing a crime scene is extremely important in a crime scene investigation, and should be of high quality and very clear. These photos will be used in court, so when taking the photos you need to keep in mind that the person or persons viewing the photos should be able to understand where the photos were taken and should be able to tell the story through them. The overall area of the scene should first be photographed such as street signs, street lights, addresses, and identifying objects. Photos should be taken in a clockwise direction to prevent any information from being left out. Different lenses should be used when photographing different parts of the scene as well as different illuminations, flashes and filters. The first photo should consist of a photography log that includes that case number, type of scene, date, location of scene, type of camera used, photographers name and title. Photos should be of the scene before it has been altered in any way. The photos should include the area that the crime took place, and areas where other acts occurred. Pictures should be taken from the outside of the scene working towards the middle of the scene. The photographer must be consistent when working through the scene as this will ensure that all evidence is photographed from all angles and nothing is left out. Photos should include: overview photographs which consist of the entire scene and surrounding area. These photos include all exits and entries, and should start from the outside of the scene and in all angles. And medium range photographs which show smaller areas of the crime scene. These photos should be taken with evidence markers. Sketching the crime scene is done after all notes and photographs are taken of the scene. A sketch will show the layout of the area or house where the crime was committed, as well as where the evidence was located. It is used to back up all notes and photographs already taken. All aspects of a crime scene will be shown in court and used to convict the guilty; therefore, it is extremely important that all steps of the investigation are followed exactly and with as much detail as possible to ensure that justice can be served.

Coca Cola Analysis - Free Essay Example

Sample details Pages: 4 Words: 1160 Downloads: 7 Date added: 2017/09/23 Category Advertising Essay Type Narrative essay Topics: Coca-Cola Essay Did you like this example? A mission is the general expression of the overall purpose of the organisation which is in line with the values and expectations of major stakeholders and concerned with the scope and boundaries of the organisation. It is sometimes referred to in terms of what business are we in? E. g. be healthy and fit. The Coca-Cola Company Mission Our Mission is: †¢To refresh the world in mind, body and spirit †¢To inspire moments of optimism through our brands and actions, and †¢To create value and make a difference everywhere we engage Is the desired future state of an organisation. It is an aspiration around which a strategist might seek to focus the attention of members of an organisation. E. g. To run the Dubai marathon. The Coca-Cola Company Vision To achieve our Mission, we have developed a set of goals, which we will work with our bottlers to deliver: Profit: Maximising return to shareowners while being mindful of our overall responsibilities. People: Being a great place to work where people are inspired to be the best they can be. Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples desires and needs. Partners: Nurturing a winning network of partners and building mutual loyalty. Planet: Being a responsible global citizen that makes a difference. Values represent an individual’s core beliefs and tend to be deep-seated and relatively enduring. They tend to be learnt at an early age and passed on through generations. They form an underlying framework which guides an individuals contraction of the world, and their response to events in it. Typical underlying value systems may include the belief that it is wrong to get into debt; a belief that family is more important than work; and that it is important to be the winner of any competitive event. The term values should be distinguished from value. Economists describe value as the ratio of the benefit arising from product relative to its cost. The distinction between values and value is that an individuals value system influences the value they place on any particular object. A person with a alue system that rates security and reliability highly may place a high value on a car that is solidly built but not particularly attractive. Another person whose value system ranks recognition by others as being more important may place a higher value on a car which is not necessarily reliable, but has street credibility’. Although value systems tend to be deeply ingrained, they have a tendency to change through an individual’s life cycle. So it follows that the value system of a teenager is likely to be different to that of a young adult parent, and different again to an elderly retired person. The Coca-Cola Company Values Our shared values that we are guided by are: †¢Leadership †¢Passion †¢Integrity †¢Accountability †¢Collaboration †¢Innovation †¢Quality Goal The term g oal means general aim in line with mission. It is quantitative in measure. E. g. losing weight and strengthen muscles. Summarized in the phrase dream with a deadline,† a goal is an observable and measurable end result having one or more objectives to be achieved within a more or less fixed timeframe. In comparison, a purpose is an intention (internal motivational state) or mission. Such goals for Coca Cola are, To Reduce child mortality in developing countries (UN Millennium Development Goal ). Coca-Cola water conservation goal In October 2008 Coca-Cola Company pledged to a 20 percent improvement in water efficiency over 2004 levels in its worldwide operations by 2012, saving some 50 billion liters of fresh water over projected use that year, reports WWF, which negotiated the agreement. Coca-Cola also announced a goal to reduce greenhouse gas emissions by 5 percent over 2004 levels for its operations in developed countries. While the target would amount to savings of 2 mill ion tons of CO2 in 2015, it ignores emissions in developing countries where emissions are growing the fastest. Coca-Cola also reiterated its commitment to WWFs water conservation initiative that aims to protect important freshwater resources including the Yangtze, Mekong, Danube, Rio Grande/Rio Bravo, Lakes Niassa and Chiuta, the Mesoamerican Reef catchments, and rivers and streams in the southeastern United States. Coca-Cola has lately led a push to green operations, including reducing emissions, pollution, and water consumption. The company stepped up its efforts following a campaign by environmentalists in India who accused bottlers of depleting ground water supplies. Coca-Cola Recycling While PET has a high value as a recyclable in the marketplace, not enough material is recovered to meet the increasing demand for recycled content. To help bridge this gap and ensure ready access to recycled material, Coca-Cola Enterprises, Inc. , the largest Coca-Cola bottler in North Amer ica, and The Coca-Cola Company formed Coca-Cola Recycling LLC (CCR) in November 2006. CCR is dedicated to recovering and recycling Coca-Cola packaging materials used within the Coca-Cola system in the U. S. – including PET, aluminum, cardboard and plastic film. CCR will be developing cost-efficient solutions for reclaiming used beverage containers and will establish centralized recycling centers throughout the U. S. Expanded Partnership with Recycle Bank Coca-Cola also continues to expand its relationship with curbside collection organizations. Today, the Company announced an expanded partnership and investment in RecycleBank. RecycleBank currently operates in southern New Jersey, Delaware and Pennsylvania and will be launching service in upstate New York, Vermont and Massachusetts in the fall of 2007. RecycleBank plans to be in 100,000 homes by the end of 2007. The additional investment will support a national rollout of the RecycleBank program by 2009. RecycleBank lev erages new technology and innovative consumer incentives to substantially increase household recycling participation and rates. Since its launch in 2003, RecycleBank has driven recycling rates in Philadelphia from 15 percent to more than 50 percent, and household participation from 30 percent to 90 percent. â€Å"RecycleBank makes recycling easier and more convenient for consumers,† said Scott Vitters, director of sustainable packaging, The Coca-Cola Company. While consumers reap the rewards of recycling through RecycleBank incentives, businesses also benefit through the increased collection of valuable, reusable materials like PET. † Recycled PET Merchandise Program Coca-Cola also has introduced a line of merchandise made out of recycled PET bottles. The products feature playful, pithy slogans such as â€Å"I’m wearing post-consumer waste,† and â€Å"My white t-shirt is green†, and is designed to inspire action by making every bottle count. Coca-Co la apparel and consumer products made with recycled PET are available online at www. cokestore. com and at the New World of Coca-Cola in Atlanta. The line will be available in retail locations across the United States later this year. Sustainable Package Design Coca-Cola has a long history of designing packages with the environment in mind. It commissioned the first study to examine whole environmental impact of a package in 1969 and introduced the first food grade plastic bottle made with recycled material in 1991. Since then, Coca-Cola has continued to improve the resource efficiency of its packages. For example: †¢Aluminum cans, glass and plastic bottles have been reduced by 33 percent, 57 percent and 32 percent respectively since their introductions. Don’t waste time! Our writers will create an original "Coca Cola Analysis" essay for you Create order