Distubution of Food The floods in Pakistan have severely limited the supply of food. The UN reports millions of dollars worth of livestock were lost and ten million citizens will run short of food and stay precarious for more than a year. The money given by the IMF could be transferred to Pakistani economic and political leaders who are interested in what is best for Pakistan’s people and economy. According to Wheelan “a good government makes a market economy possible.” (Wheelan 51) The money the government has been granted could be spent on seed and livestock to rebuild Pakistan’s agricultural market and feed the starving citizens. One problem with the food distribution is there are no organizations to distribute the food and materials. Organizations that could be made from IMF funding would be able to send aid straight to the communities that need it most. Wheelan states, “a market economy works because resources flow to where they are needed most.” (Wheelan 69) The organizations would be non-government based and would seek benefit by getting paid by charitable donations to distribute food. With strong incentives such as food people will be willing to work harder and longer to obtain food. Food could be distributed through the organizations to those who are willing to help with the flood and could also be distributed in ways to better Pakistan’s economy. An Example of this would be guaranteeing a Biraderi food if they are willing to rebuild lost farms and roads. With the production of roads and farms Pakistan’s agricultural market will be brought back. With strong incentives and the construction of organizations to regulate the global aid the Pakistani economy will grow and people will no longer be starving.
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Works consulted- “Wahed Up.” www.economist.com. N.p., 26 Aug. 2010. Web. 8 Sept. 2010. <http://www.economist.com/node/16889663?story_id=16889663>. Wheelan, Charles. Naked Economics. New York: Norton & Company, 2002. Print.
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Matt
Crops:
Much of Pakistan is farmland, so the recent flood has destroyed or set back the production of crops for the Pakistani farmers. With the help of IMF funds, the government can hire workers from within the country (workers that had lost their jobs or businesses from the flood) to clean up standing water, waste of both humans and animals, and also from pollution that will have been spread from the flood. The hopes of this, is that jobs would temporarily be provided for the unemployed, but also to benefit the land from waste and pollution control. In effect, “providing [necessary] support can prolong behavior that needs to be changed” (227). With the water from the flood, the hopes are also that the land has become more fertile for the farmers and their land. In addition, the government could hire workers for flood control: building damns, levees, and dykes to prevent any damage from occurring in future floods. The cost of the public good “to additional users – even thousands or millions of people – is very low or even zero” (57). With IMF funds, the government could also partly subsidize the farmers for lost crops. This would ensure that farmers don’t lose business and also have an incentive to continue working. Government compensation could include last year’s earnings for the farmers who lost their whole crop, and partial-subsidy for farmers who lost time planting their crop. In all, the jobs provided by the government would be temporary, yet with the money each individual earns, hopefully they would put it back in the economy, whether it be through purchase of food or clothes or new housing. This would help “stimulate” the economy while ensuring a market in Pakistan.
Naked Economic: Undressing the Dismal Science by Charles Wheelan (citations)
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Kelcey
After the flood that affected Pakistan so greatly in July 2010 many are facing problems of disease. The floods have displaced many and have caused disease throughout the country with little medical help being offered. Children are especially at risk of disease. According to a BBC article, “Up to 3.5 million children are at high risk from deadly water-borne diseases in Pakistan following the country's floods “ (BBC) like diarrhea and dysentery, or a problem with the intestines. Medical help, like vaccines, needs to be given out to help ensure that less people will get sick because of these flood-causing diseases.
The incentives have changed of the people because they are worried about losing homes and finding places to sleep rather than the fact that wherever they are living could cause many diseases that could greatly affect their health. The help incentives need to work towards cleaning the water. According to a BBC article, “Clean water is essential to prevent deadly water-borne diseases. Water during the flood has been contaminated badly” (BBC). Without clean water people are becoming more sick and it needs to be fixed immediately. If there is clean water, then there will be more people to help shelter and start off to a better life. To create a market-based economy, the government could have bottles of water for each person and tanks filled with purified water and after a certain amount it is up to each person to find their own water, through money given to them.
Another necessity for the people is medicine. Pakistanis on the streets are dying of diseases that are treatable with the appropriate medical supplies. Mr. Ban Ki-moon, the UN Secretary General, “urged the world to speed up aid to the country…and medicine were desperately needed” (BBC). When people are in a better health condition they can start to repair houses and other buildings to get back to their lives before the flood. To create a medicinal market-based economy, a certain amount of money could be given to each person and the government gives them basic medicines and vaccines to fight off diseases, but for major diseases and illnesses it’s up each person individually to obtain the proper medical supplies they need.
"Millions of Pakistan chidren at risk of flood diseases." BBC 16 Aug. 2010: n.pag. Web. 8 Sept. 2010. <http://bbc.co.uk>.
Michael
Long term mild infrastructure construction and maintenance is a critical piece of the solution to the recent flooding in Pakistan. Infrastructure improvements will not only increase the ability to distribute aid in the long-term by making transportation logistics easier, but will also promote government spending, which will boost Aggregate Demand and thus ultimately increase GDP and reach the 4.5% yearly growth goal. Spending must remain mild, for money used to construct these improvements will likely be from external sources, and “chronic deficit spending can also signal other future problems: higher taxes (to pay back the debt), inflation (to erode the value of the debt), or even default (just giving up on the debt)” (Wheelan 216). Thus, with balanced and controlled spending, the infrastructure improvements will reduce expenses elsewhere by making travel and distribution less costly, while promoting growth without overspending.
Continued immigration from surrounding nations, particularly Afghanistan as a result of the War on Terror, is a persistent problem in Pakistan. The effects of this have been drastically amplified by the overcrowding in urban centers as a result of the monsoon flooding. One possible solution that would help alleviate the effects of the flooding as well as abate the immigration flow would be to hire those displaced and unemployed by the flooding to form a “border patrol” organization. The UN Human Rights Council notes that “There are currently some 1.7 million registered Afghans in Pakistan” and that in March of 2009 the “Pakistani government… signed an agreement to extend the stay of Afghan refugees in Pakistan until the end of 2012” (Rummery 1). Given that this agreement was made before the floods, Pakistan now faces a greater responsibility for the refugees it presently houses, and would not take well to further immigrants. Furthermore, due to the sensitive nature of Pakistani culture in many aspects, many immigrants have a hard time adapting and may offend Pakistanis. A viable solution may be to ebb the flow of these immigrants in the long term by employing the displaced for a border patrol, and setting up a process of an immigration test relevant to basic Pakistani knowledge, in addition to screening immigrant applicants for skills that would have great utility in the flood relief effort, accepting them if they prove valuable enough human capital (“what makes individuals productive… skills are what matter, for individuals and for the economy as whole” (Wheelan 212)) and knowledgeable enough.
Another issue prevalent as a result of the flooding is the potential for numbers to rise in Pakistan-based terrorist groups like the Taliban as people turn to extreme measures out of desperation. Given the already high levels of corruption in government and penetration of culture as a result of Taliban forces, any elevation of numbers in such a group would be devastating both culturally and economically to Pakistan’s fragile state. Barack Obama has enacted a plan beginning in 2009 wherein Pakistan will be provided “financial assistance of 1.5 billion dollars each year for the next five years” in order to fight terrorism actively in the country (“Obama Unveils” 1). Even diverting a small portion of this financial assistance from the direct combat of terrorism to a campaign reducing Taliban’s influence in society and in government may be a great asset to Pakistan in wake of the floods; a system of financial incentives might be established to ensure loyalty to Pakistani government and culture, discouraging Taliban’s regime. Wheelan writes that “corruption is not merely an inconvenience… it is a cancer that misallocates resources, stifles innovation, and discourages foreign investment” (Wheelan 208). If a campaign existed that attempted to subdue corruption by the Taliban in both society and government, investors might be more willing, and resource allocation considerably more effective, making the diverted money an excellent trade-off with a relatively low opportunity cost, for Pakistani forces are presently holding well militarily.
Photo credit James Lyons, Mirror News
Map credit PakResponse.info, a site dedicated to mapping various effects of Pakistani flooding.
Matt
Estimates put the total cost of flood damage at $7.1 billion, nearly a fifth of the Pakistan’s budget and global donations have only managed to reach $815 million dollars. (Pakistan flood sets back infrastructure by years). Although it is clear that Pakistan is in need of help, one of the best long term solutions is not the IMF, but rather a banishing of trading tariffs of Pakistani goods. One article writes “Textiles and Apparel accounted for 60 percent of Pakistan’s total exports and 40 percent of its manufacturing jobs…Reviving this industry is critical to Pakistan’s hopes for future stability and prosperity.” (A trade deal to help rebuild). By reducing or eliminating tariffs for Pakistan’s good will cost foreign consumers nothing but “benefits would flow directly into the Pakistani civilian economy where it is desperately needed. (A trade deal to help rebuild). However, Due to the enormity of the crisis, some IMF money would still be required. Because of the prominence of corruption and a general lack of trust in the Pakistani government, potential IMF donations should be as private as possible. As described by Wheelan “corruption is not merely an inconvenience, as it is sometimes treated; it is a cancer that misallocates resources, stifles innovation, and discourages foreign investment” (Wheelan 208). IMF funding needs to go where it is most needed and that is not in the pockets of government bureaucrats but rather the hands of the people. Despite the loss of human life, the flood crisis in Pakistan is offering Pakistan a chance to rebuild and make the nation as a whole stronger in the future. One way to do this is for the money donated from the IMF be used as an investment in human capital for Pakistan. IMF can provide funding for education for public health. Wheelan states “some of the most pernicious public health problems facing the developing world have relatively simple fixes” (Wheelan 212). Higher health rates can improve productivity in Pakistan. The IMF can provide scholarships for higher level education as well, in which willing and qualified Pakistani citizens can borrow money and better contribute to the economy. Many of the displaced citizens were farmers. Programs which farmers have a chance to be educated, get off farm life, and provide the valuable resource of human capital to another sector in the Pakistani economy such as rebuilding the infrastructure would be beneficial.
John
Distubution of Food
The floods in Pakistan have severely limited the supply of food. The UN reports millions of dollars worth of livestock were lost and ten million citizens will run short of food and stay precarious for more than a year. The money given by the IMF could be transferred to Pakistani economic and political leaders who are interested in what is best for Pakistan’s people and economy. According to Wheelan “a good government makes a market economy possible.” (Wheelan 51) The money the government has been granted could be spent on seed and livestock to rebuild Pakistan’s agricultural market and feed the starving citizens.
One problem with the food distribution is there are no organizations to distribute the food and materials. Organizations that could be made from IMF funding would be able to send aid straight to the communities that need it most. Wheelan states, “a market economy works because resources flow to where they are needed most.” (Wheelan 69) The organizations would be non-government based and would seek benefit by getting paid by charitable donations to distribute food. With strong incentives such as food people will be willing to work harder and longer to obtain food. Food could be distributed through the organizations to those who are willing to help with the flood and could also be distributed in ways to better Pakistan’s economy. An Example of this would be guaranteeing a Biraderi food if they are willing to rebuild lost farms and roads. With the production of roads and farms Pakistan’s agricultural market will be brought back. With strong incentives and the construction of organizations to regulate the global aid the Pakistani economy will grow and people will no longer be starving.
upload file from desktop, add source in caption.
Works consulted-
“Wahed Up.” www.economist.com. N.p., 26 Aug. 2010. Web. 8 Sept. 2010. <http://www.economist.com/node/16889663?story_id=16889663>.
Wheelan, Charles. Naked Economics. New York: Norton & Company, 2002. Print.
Matt
Crops:
Much of Pakistan is farmland, so the recent flood has destroyed or set back the production of crops for the Pakistani farmers. With the help of IMF funds, the government can hire workers from within the country (workers that had lost their jobs or businesses from the flood) to clean up standing water, waste of both humans and animals, and also from pollution that will have been spread from the flood. The hopes of this, is that jobs would temporarily be provided for the unemployed, but also to benefit the land from waste and pollution control. In effect, “providing [necessary] support can prolong behavior that needs to be changed” (227). With the water from the flood, the hopes are also that the land has become more fertile for the farmers and their land. In addition, the government could hire workers for flood control: building damns, levees, and dykes to prevent any damage from occurring in future floods. The cost of the public good “to additional users – even thousands or millions of people – is very low or even zero” (57).
With IMF funds, the government could also partly subsidize the farmers for lost crops. This would ensure that farmers don’t lose business and also have an incentive to continue working. Government compensation could include last year’s earnings for the farmers who lost their whole crop, and partial-subsidy for farmers who lost time planting their crop. In all, the jobs provided by the government would be temporary, yet with the money each individual earns, hopefully they would put it back in the economy, whether it be through purchase of food or clothes or new housing. This would help “stimulate” the economy while ensuring a market in Pakistan.
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Sources:
http://newsimg.bbc.co.uk/media/images/42441000/jpg/_42441888_zoverview-afp.jpg (photo)
Naked Economic: Undressing the Dismal Science by Charles Wheelan (citations)
Table. Highlight "Add Data or Map", click File icon,
upload file from desktop, add source in caption.
Kelcey
After the flood that affected Pakistan so greatly in July 2010 many are facing problems of disease. The floods have displaced many and have caused disease throughout the country with little medical help being offered. Children are especially at risk of disease. According to a BBC article, “Up to 3.5 million children are at high risk from deadly water-borne diseases in Pakistan following the country's floods “ (BBC) like diarrhea and dysentery, or a problem with the intestines. Medical help, like vaccines, needs to be given out to help ensure that less people will get sick because of these flood-causing diseases.
The incentives have changed of the people because they are worried about losing homes and finding places to sleep rather than the fact that wherever they are living could cause many diseases that could greatly affect their health. The help incentives need to work towards cleaning the water. According to a BBC article, “Clean water is essential to prevent deadly water-borne diseases. Water during the flood has been contaminated badly” (BBC). Without clean water people are becoming more sick and it needs to be fixed immediately. If there is clean water, then there will be more people to help shelter and start off to a better life. To create a market-based economy, the government could have bottles of water for each person and tanks filled with purified water and after a certain amount it is up to each person to find their own water, through money given to them.
Another necessity for the people is medicine. Pakistanis on the streets are dying of diseases that are treatable with the appropriate medical supplies. Mr. Ban Ki-moon, the UN Secretary General, “urged the world to speed up aid to the country…and medicine were desperately needed” (BBC). When people are in a better health condition they can start to repair houses and other buildings to get back to their lives before the flood. To create a medicinal market-based economy, a certain amount of money could be given to each person and the government gives them basic medicines and vaccines to fight off diseases, but for major diseases and illnesses it’s up each person individually to obtain the proper medical supplies they need.
BBC News
ABC News
Work Cited
Mehri, Behrouz. Suffering . N.d. Austrailian Broadcasting Corporation News . N.p., 17 Aug. 2010. Web. 8 Sept. 2010. <http://abc.net.au>.
"Millions of Pakistan chidren at risk of flood diseases." BBC 16 Aug. 2010: n.pag. Web. 8 Sept. 2010. <http://bbc.co.uk>.
Michael
Long term mild infrastructure construction and maintenance is a critical piece of the solution to the recent flooding in Pakistan. Infrastructure improvements will not only increase the ability to distribute aid in the long-term by making transportation logistics easier, but will also promote government spending, which will boost Aggregate Demand and thus ultimately increase GDP and reach the 4.5% yearly growth goal. Spending must remain mild, for money used to construct these improvements will likely be from external sources, and “chronic deficit spending can also signal other future problems: higher taxes (to pay back the debt), inflation (to erode the value of the debt), or even default (just giving up on the debt)” (Wheelan 216). Thus, with balanced and controlled spending, the infrastructure improvements will reduce expenses elsewhere by making travel and distribution less costly, while promoting growth without overspending.
Continued immigration from surrounding nations, particularly Afghanistan as a result of the War on Terror, is a persistent problem in Pakistan. The effects of this have been drastically amplified by the overcrowding in urban centers as a result of the monsoon flooding. One possible solution that would help alleviate the effects of the flooding as well as abate the immigration flow would be to hire those displaced and unemployed by the flooding to form a “border patrol” organization. The UN Human Rights Council notes that “There are currently some 1.7 million registered Afghans in Pakistan” and that in March of 2009 the “Pakistani government… signed an agreement to extend the stay of Afghan refugees in Pakistan until the end of 2012” (Rummery 1). Given that this agreement was made before the floods, Pakistan now faces a greater responsibility for the refugees it presently houses, and would not take well to further immigrants. Furthermore, due to the sensitive nature of Pakistani culture in many aspects, many immigrants have a hard time adapting and may offend Pakistanis. A viable solution may be to ebb the flow of these immigrants in the long term by employing the displaced for a border patrol, and setting up a process of an immigration test relevant to basic Pakistani knowledge, in addition to screening immigrant applicants for skills that would have great utility in the flood relief effort, accepting them if they prove valuable enough human capital (“what makes individuals productive… skills are what matter, for individuals and for the economy as whole” (Wheelan 212)) and knowledgeable enough.
Another issue prevalent as a result of the flooding is the potential for numbers to rise in Pakistan-based terrorist groups like the Taliban as people turn to extreme measures out of desperation. Given the already high levels of corruption in government and penetration of culture as a result of Taliban forces, any elevation of numbers in such a group would be devastating both culturally and economically to Pakistan’s fragile state. Barack Obama has enacted a plan beginning in 2009 wherein Pakistan will be provided “financial assistance of 1.5 billion dollars each year for the next five years” in order to fight terrorism actively in the country (“Obama Unveils” 1). Even diverting a small portion of this financial assistance from the direct combat of terrorism to a campaign reducing Taliban’s influence in society and in government may be a great asset to Pakistan in wake of the floods; a system of financial incentives might be established to ensure loyalty to Pakistani government and culture, discouraging Taliban’s regime. Wheelan writes that “corruption is not merely an inconvenience… it is a cancer that misallocates resources, stifles innovation, and discourages foreign investment” (Wheelan 208). If a campaign existed that attempted to subdue corruption by the Taliban in both society and government, investors might be more willing, and resource allocation considerably more effective, making the diverted money an excellent trade-off with a relatively low opportunity cost, for Pakistani forces are presently holding well militarily.
Map credit PakResponse.info, a site dedicated to mapping various effects of Pakistani flooding.
Works Cited:
"Obama unveils new US policy for Pakistan, Afghanistan." The News International
(Pakistan) . N.p., 27 Mar. 2009. Web. 8 Sept. 2010.
< http://www.thenews.com.pk/blog/blog_details.asp?id=107 >.
"Pakistan Floods - 2010." OneResponse Pakistan . N.p., 13 Aug. 2010. Web. 8 Sept.
2010. < http://www.pakresponse.info/index.php?id=3 >.
Rummery, Adriane. "UNHCR and Pakistan sign new agreement on stay of Afghan
refugees." UNHCR.org . UNHCR, 13 Mar. 2009. Web. 8 Sept. 2010.
< http://www.unhcr.org/news/NEWS/49ba5db92.html >.
Wheelan, Charles. Naked Economics . N.p.: W.W. Norton, 2003. Print.
Matt
Matt
Estimates put the total cost of flood damage at $7.1 billion, nearly a fifth of the Pakistan’s budget and global donations have only managed to reach $815 million dollars. (Pakistan flood sets back infrastructure by years). Although it is clear that Pakistan is in need of help, one of the best long term solutions is not the IMF, but rather a banishing of trading tariffs of Pakistani goods. One article writes “Textiles and Apparel accounted for 60 percent of Pakistan’s total exports and 40 percent of its manufacturing jobs…Reviving this industry is critical to Pakistan’s hopes for future stability and prosperity.” (A trade deal to help rebuild). By reducing or eliminating tariffs for Pakistan’s good will cost foreign consumers nothing but “benefits would flow directly into the Pakistani civilian economy where it is desperately needed. (A trade deal to help rebuild). However, Due to the enormity of the crisis, some IMF money would still be required.
Because of the prominence of corruption and a general lack of trust in the Pakistani government, potential IMF donations should be as private as possible. As described by Wheelan “corruption is not merely an inconvenience, as it is sometimes treated; it is a cancer that misallocates resources, stifles innovation, and discourages foreign investment” (Wheelan 208). IMF funding needs to go where it is most needed and that is not in the pockets of government bureaucrats but rather the hands of the people.
Despite the loss of human life, the flood crisis in Pakistan is offering Pakistan a chance to rebuild and make the nation as a whole stronger in the future. One way to do this is for the money donated from the IMF be used as an investment in human capital for Pakistan. IMF can provide funding for education for public health. Wheelan states “some of the most pernicious public health problems facing the developing world have relatively simple fixes” (Wheelan 212). Higher health rates can improve productivity in Pakistan. The IMF can provide scholarships for higher level education as well, in which willing and qualified Pakistani citizens can borrow money and better contribute to the economy. Many of the displaced citizens were farmers. Programs which farmers have a chance to be educated, get off farm life, and provide the valuable resource of human capital to another sector in the Pakistani economy such as rebuilding the infrastructure would be beneficial.