By Adnan Syed
This three part series examines the rise of India as an economic giant, the threats that India faces in this remarkable rise, and implications for Pakistan.
Before the Twenty First Century
As the twentieth century dawned, the world had continued to consolidate the technological boom during prior two centuries. This technological progress started with the invention of the printing press in fifteenth century. This invention quickly enabled mass availability of knowledge. Man began exploring the world around him more intently, by compounding the knowledge already gained by the earlier pioneers. As the scientific renaissance kicked in, man began accumulating more wealth by producing, discovering and innovating further. With the arrival of the scientific renaissance, the human output growth rate that had remained close to zero for thousands of years before, started rising at a good multiple of its population growth rate.
The arrival of scientific renaissance coincided with incremental social awareness that began permeating the human consciousness. The United States came into being right in the midst of the great human renaissance that was exploding across the western world. The renaissance had begun moving forward in fits and starts towards institutionalizing the ideals of human liberty and freedom. The United States, with its rich natural resources and eager migrant entrepreneurs, began taking a lead in the social and scientific revolution that had begun sweeping the western civilization.
Filed under China, Democracy, Economy, Europe, India, Islamabad, Pak Tea House, Pakistan, poverty, south asia, state, USA
The Exploding Debt in Europe
By Kashan Wali, exclusive to the PTH
Wealth cannot be artificially created
Finance in a real world relies on underlying wealth of a society. Governments cannot create wealth by printing money. Print too much money and it will lose its value. A fall in the value of money leads to inflation. Inflation viciously attacks the value of savings of the population. As population loses the stored wealth, the population becomes dependent on the state. State has to pay more now for healthcare, education and in extreme situation, food and shelter for population that is going poorer by the day. Either way, unless the underlying wealth (net output of goods and services produced) does not increase, a country cannot become wealthier.
Let’s say state tries to pull another trick here; it starts borrowing heavily from the investors to boost its cash reserves. A smart market will quickly catch on to the trick as it analyzes the conditions of the local economies to see if this state has good books and stable revenues. If investors decide that the state cannot pay off its liabilities in the future, it will charge a lot more in interest rate to justify taking that excessive risk. Investors may decide not to lend at all to a government running shady practices.
I was born into a Sunni Muslim family in a northern city in the UK. The city is home to a large Muslim minority from Pakistan. I come from an educated and broad minded family with middle of the road type of values. Religion was never really a huge issue but I did the usual cultural thing of learning how to read the Quran in Arabic till I was 10 years old.
At around the age of 14, I became interested in Islam and joined the Young Muslims UK. This was my first real exposure to practical Islam. We would attend camps and have weekly meetings usually to discuss the Quran and the Hadith of Muhammad. For all intents and purposes everything was going well and my family was happy that I had decided to take it upon my own back to learn about the religion of my ancestors. I remember walking two miles to a shop from school to hire Ahmed Deedat debates and shouting “Allah-hu-Akbar” whilst watching other less worthy opponents beaten to a pulp.
Filed under Activism, Afghanistan, Al Qaeda, Citizens, culture, Democracy, Egalitarian Pakistan, Europe, human rights, India, Iran, Iraq, Islam, Islamism, Pakistan, Philosophy, Religion, Rights, violence, war, Women, youth
By Kashan Wali, exclusive to the PTH
Today is May 08, 2010. As I write these line it occurs to me that this weekend is one of the most critical weekends as the seven month long crisis that started with initial doubts about Greece’s ability to pay off the massive debt that Greece had accumulated. The world nervously watches the European debt crisis morph into a contagious financial nightmare. Investors are worried that indebted nations like Greece, Portugal, Spain and even UK have accumulated too much debt too soon.
Coming on heels of the subprime crisis in 2007 and 2008, the world economies and the financial system are still in the recuperation phase from the wounds inflicted from the subprime crisis and the subsequent Great Recession afterwards. Below, we examine the European debt crisis in more detail. We will also look at the lessons for Pakistan and other emerging countries. There are a lot more similarities between the Greek tragedy and the Pakistani fiscal conditions. For those who do not learn from others mistakes end up being others down the road.
But first let’s take a step back to the subprime crisis that had the fiscal implications for the United States and Europe. Even before the subprime crisis, let’s examine the roaring 1990s that were a direct result of the massive globalization unleashed with the arrival of the internet. This was an important decade as two most populous countries properly entered the global economic arena for the very first time. They were China and India. For the next two decades, we see an explosive growth in the world economic output, globalization of trade, fall in industrialized world inflation, falling yields and the rise of phenomenon called the “leverage”. A few decades from today, we may exclaim what a shame that such prosperity became a victim to excessive leverage and regulatory failure. Yet we have countless examples of this reckless behaviour throughout the human history.
By Irfan Hussain
Consider this demographic projection for the UK, and ponder its implications for a moment: within five years, the majority of babies will be born to unmarried parents.
However, before you put this down to yet another example of Western immorality, just remember that all these babies will have the same legal rights as those born to married couples.
This trend is part of the wider decline of marriage as an institution. According to a recent study, the figures for people getting married in Britain is at its lowest ever since these statistics began to be compiled nearly 150 years ago.
In 2008, only 21.8 per thousand adult men of marriageable age actually took the vow. At 19.6, the figure for women was even lower. And the average age for men getting married for the first time was 32, and for women it was nearly 30.
The Swiss have voted not against towers, but Muslims. Across Europe, we must stand up to the flame-fanning populists
By Tariq Ramadan guardian.co.uk, Sunday 29 November 2009
It wasn’t meant to go this way. For months we had been told that the efforts to ban the construction of minarets in Switzerland were doomed. The last surveys suggested around 34% of the Swiss population would vote for this shocking initiative. Last Friday, in a meeting organised in Lausanne, more than 800 students, professors and citizens were in no doubt that the referendum would see the motion rejected, and instead were focused on how to turn this silly initiative into a more positive future. Continue reading
When Pakistan came into existence in 1947, Russia was known as the Godless Empire of Union of Soviet Socialist Republics under brutal dictator Joseph Stalin. This inherent difference in ideologies resulted in tensions from the very start, but the refusal of the first prime minister of Pakistan to accept the cordial invitation of the Soviet leadership to visit USSR started the full scale Cold War. The rest, as they say, is history.
Pakistan decided to accept the invitation of United States of America (the head of ‘Free’ Capitalist and Godly world).Pakistan joined anti-communist military pacts and gave its logistic support for Korean War in 1950s.Despite the unwavering loyalty of Pakistani military and landlord elite, USA refused to provide military assistance and spare parts during 1965 Kashmir war with India. The Pakistani dictator of the time was madly in love with USA, titling his ghost written biography, ‘Friends not Masters’. Continue reading
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