Economics Commentary Essay

BRUSSELS The European Commission on thorium announced 5.5 million euros (7.5 million dollars) of emergency addition attending for hundreds of thousands of civils in conflict-ridden northwest Pakistan.More than 834,000 civilians have now fled a military charge on Taliban fighters holed up in Pakistans rugged northwest, where artillery pounded rebel bastions Thursday.As a result of the intensified fighting in swat and other parts of the country, Pakistan is facing not only a guarantor threat merely also a humanitarian threat, said European humansitarian Aid Commissioner Louis Michel.Pakistani authorities argon doing their utmost but their relief capacities are now overstretched, he said, announcing the release of 5.5 million euros magic spell adding that more could be depictd if necessary.The EUs executive arm hard-pressed that its aid was provided on a neutral background to provide bathroomonic humanitarian call for such as shelter, food, clothes, and medical support.In nigh places, it volitioning also provide clean alcohol addiction water and sanitation. every last(predicate) the funds will be channeled to projects by non- giving medicational relief organizations, specialized UN agencies and the sanguine Cross/Red Crescent movement.The European gist plans to hold its low gear ever summit with Pakistan in June to jock strengthen the civilian government there.Among subjects mooted for the summit, provisionally planned for June 17, are the fight against terrorism including in adjoining Afghanistan as well as cooperation in the field of the rule of fairness and trade issues, match to a Czech EU presidency source.The EU has sent some 500 million Euros in aid to Pakistan since 1976, according to the European Commission, and has quadrupled its funding for the 2007-2010 period, with 50 million euros (65 million dollars) earmarked so far. cater by IndiatimesAbout Us Advertise with Us Terms of practice Privacy Policy Feedback SitemapCopy right (c) 2009 Bennett Coleman & Co. Ltd. All rights reserved. For reprint rights measure Syndication ServiceThis site is best viewed with Internet Explorer 6.0 or high Firefox 2.0 or higher at a minimum screen stoppage of 1024768The European Commission announced 5.5 million euros (7.5 million dollars) of emergency humanitarian aid for hundreds of thousands of civilians in conflict-ridden northwest Pakistan.This article is about the European Union (EU), which also plays an important role in regional victimization, deciding to provide an aid for Pakistan. Many parts of Pakistan had been taken over by terrorists, Taliban, which resulted in some citizens to move to the northern part of the country. The EU is providing 5.5 million and more if necessary. It will be used for basic necessities of life, food, shelter, and clothing medical support, sanitation, and drinking water would also be provided.The type of which is provided by the EU is an authoritative aid or also known as of ficial development assistance (ODA) it is a mix of bilateral and multilateral aid. Multilateral aid is when organizations allocate funds provided by the countries and bilateral aid is when the aid is presumptuousness directly to the country in need in the form of for exemplar money support, machinery, tools, food, and medicine. In ensnare to develop, Pakistan needs money and the EU is supplying them with the official aid through the organization of the Red Cross. This aid will result in developing not just the basic needs of the pot there, which is proper sanitation and basic necessities of life, but also table service strengthen the government, the civilian government.In order for development to take place, a few factors need to be kept in mind Human factors, natural factors, physical capital and scientific factors, and also institutional factors. In this case, the human factors and the institutional factors are kept in mind for Pakistans development. Human factors are the q uality and/or quantity of human resources. The consequences of providing the civilians with interrupt sanitation and food, shelter, medicine etc would be that they would have a better tired of living lesser make sense of people would fall ill and that would soaked more amount of labor, which is an economic benefit.This would add to the capability output cod to the summation in productivity as more people would be there to produce for the parsimoniousness of Pakistan. In Graph 1 it shows the potential output of Pakistan at flower B and point A represents the menses output of the economy. In Graph 2, the potential output of Pakistan addd to point C ascribable to the aid provided. These graphs show that the result of aid could increase the current output to point B because of increase in resources due to development, and potential output to point C.The amount of labor does not jus increase by proper food and health facilities but also by education and home, which is the in ternal skeletal of the economy, for which there has to be political stability, which are the institutional factors of an economy. The EU has also included aid for improving the civilian government. The civilian government, once retrieveed, roll in the hay help in improving infrastructure and education systems by implementing new laws, policies and goals. This could also help increase the amount of security for the people in economy and also help recover land from the areas which are taken over by terrorists. Infrastructure provides the basis for an economy.It includes things such as road networks, sewage system, health, education. Enhancing the infrastructure would make the people in the economy better and more advanced labor. Education would help increase the amount of skilled labor which would, again, help develop the economy by helping increase the amount of physical capital and technological factors these are social benefits to the economy. Better health would result in pere nnial life span, more productivity and an increase in literacy rate would provide the economy with better skilled workers, increase productivity, and awareness. Poor sanitation, sewage system, can result in many deaths, which would be a negative bear on on the economy as there will be a decrease in labor.In conclusion, the official aid given to Pakistan will help the economy towards progression. I will help by improving the economys human and institutional factors. By improving the civilian government, it would also make it a safer place for the normal citizens especially from the terrorist attacks. on that point will also be an impact on the law and order in the economy of Pakistan due to the aid given. The political stability can also improve. These would result in the overall development of the economy.