Economic History Lecture NEW
Economic History Lecture NEW
HISTORY
• https://www.youtube.com/watch?v=P-I4Bay5
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• https://www.youtube.com/watch?v=gxqgm-ru
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Economics Systems : Types
Economic Systems can be divided into:
•Capitalism
•Socialism
Capitalism
•In capitalist economies, there is a high
ownership of wealth producing property, like
factories, land, etc.
•People can take any measures to extract
maximum profit, including price fixing, price
mafia, shortage, etc. Govt regulation of business
causes negative effects including strange
regulations, political pressure, etc.
•Pure Capitalism
proposes ‘free market’
system without any
government rules. Adam
Smith said: “A free
economy governs itself by
invisible hand, it is the
consumers who regulate
the economy and market
by defining their
In this capitalist world,
demand.” we all grow up to die.
Capitalism
•Capitalism is defined as “A type of
economy based on private ownership of
most resources and goods and the
freedom to use them to get the most
profit”.
•Features
•Private Ownership of goods, resources,
property, etc.
•Freedom to obtain maximum profit
System of open markets (anyone can enter)
•Competitive market system
•Govt established rules of business and trade*
•Govt institutions include military, and some
education, and infrastructure development
facilities
Capitalism : Examine USA
•Is USA Capitalist?
•Yes:
•Private ownership of
business
•Free and open market
•Freedom to obtain
maximum profit
•No:
•Safety
•Labour rights
Activity 02
Quiz 01 : Click and View the video.
What is capitalism and why it is
important in a country ?
• https://www.youtube.com/watch?v=B3u4EFT
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Socialism
•Socialism is defined as “An economy that is
based on government ownership, rather than
individual ownership, worker controlled
government and equal distribution of goods and
services”
•Features
• https://www.youtube.com/watch?v=Fdfru9N
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Factors affecting Production of Goods
Midterm Examination
(December 2020)
•What things are included in the ‘Economy’?
•An economy may include several sectors (also
called industries), that evolved in successive
phases. The ancient economy was mainly based
on farming and gathering (barter system).
•The industrial revolution introduced mining, construction
and manufacturing industries as part of economy.
•In the age of technology, we have today Information
Technology, Financial Services, Manufacturing Companies,
Social Organizations, Farming, Public and Private Sector
Businesses.
•Technology companies: Google,
Smart Etc. and many others………..
•All these elements:
- Create jobs/livelihood
- Provide Services
- Increase or Generate revenue
- Open doors for trade & business
Activity 07: Identify each Pictures below
Global economy
Unemployment
The USA department of labor
regularly reports data on the
unemployment rate the
percentage of these not
working but officially defined
as looking for work, currently
almost 8.8million people are
officially unemployed.
Source: US department
(2006)
UNDEREMPLOYMENT
Underemployment
refers to an
employment situation
that is sufficient in
some important way
for the workers,
relative to a
standard..
Activity 08: Interpret the data below.
Conglomerates:
• A conglomerates is a
combination of two or more
corporations engaged in
entirely different business
that feel under one
corporative system.
Activity 09
Presentation per Group: Identify Businesses that is classified as Conglomerates.
https://www.youtube.com/watch?v=dizDATxc9IE
Multinationals:
• Companies or
corporations
that manages
production
and deliver
services in
more than
one country..
Activity 09
Presentation per Group: Identify Businesses that is classified as Multinationals.
https://www.youtube.com/watch?v=FCojpFwWuG0
As of 2006 there were
63,000 multinationals
with over 700,000
branches scattered
across the globe
Current Economics Institutions
Current Economic Institutions
•Post Industrial Societies (Information
Age)
•- Computer changed way of storing,
receiving and analysing information
• Use of computers and robots for manual
work
• Networking has created a ‘global village’
•Shift from physical skills to computer
skills
•Work from home concept
• Internet allows communication,
banking, entertainment, etc.
• Shift to renewable sources of energy
• More access to information through
social media
Global Economy
•“The international network of
individuals, businesses,
governments, and multilateral
organizations which collectively
make production and
consumption decisions”
•GDP tells us about our
country's economy by telling us
the total money value of all
final goods and services in our
country.
•Globalization:
“A global movement to increase
the flow of goods, services,
people, real capital, and money
across national borders in order
to create a more integrated and
interdependent world economy.”
Activity 10 : Recitation
Interpret the Data Below.
2011 Economies
Ranking Country Approximate GDP-
Purchasing
Power Parity
1 United States of America $14,624,180,000,000
2 China $10,084,370,000,000
3 Japan $4,308,630,000,000
4 India $4,001,100,000,000
5 Germany $2,932,040,000,000
6 Russia $2,218,760,000,000
7 Brazil $2,181,680,000,000
Activity 18 : Recitation
Explain and Identify reasons why county collapse?
Economy As Social
Institution In
Pakistan
•The economy of Pakistan is 27th largest in the
world (in absolute dollar terms).
•Pakistan has a semi-industrialized economy
including textiles, chemicals, food processing,
agriculture and other industries.
•Growth poles of Pakistan's economy are
situated along the Indus River and Karachi and
Punjab's urban centers.
•GDP growth, spurred by gains in the
industrial and service sectors,
remained in the 6-8% range in 2004-06
due to economic reforms in the year
2000 by the Musharraf government.
•In 2005, the World Bank named
Pakistan the top reformer in its region
and in the top 10 reformers globally.
•Foreign exchange reserves are
bolstered by steady worker
remittances, but a growing current
account deficit - driven by a widening
trade gap as import growth outstrips
export expansion - could reduce
growth.
History of Pakistani Economy
•Indus Valley Civilisation from 2800 BC to 1800 BC carried
trade through the Indus River, and its inhabitants were some
of the most resourceful traders.
Fourth it enables a person to realize his full potential and utilize his maximum
creative ability for innovation.
Fifth helps people to come out of the vicious circle of poverty as low income
causes ill health or malnutrition which lowers the worker productivity and low
productivity means low income and so this vicious process continues.
Poverty
• Although Pakistan has maintained a
much higher growth rate compared to
the region`s average annual growth rate,
it has been unable to eliminate poverty.
• The reasons include improper economic
policies as well as
• Neglect of rural areas, as well as areas
such as Balochistan on political
pretenses
• Improper system of Zakat and Kherat in
the country,
• Inability to reduce and eliminate
begging. Begging becomes an easy
profession for people.
• The basic pre-requisite is to
introduce structural changes in the
economy which requires vision,
sincere effort, political will, and
good governance; some key
characteristics unfortunately not
present in our ruling elite be it the
political elite or civil military top
brass. The poverty in Pakistan
during Bhutto` s regime decreased
because of doing land reforms to
some extent
PAKISTAN’S ECONOMIC FUTURE
Pakistan is still a low income country and it would require
at least next 14 years of 7 percent average annual GDP
growth to double its per-capita income to around $ 2000.