Process of Industrialization I

Salman Ahmed Shaikh

Salient Points
Exchanges Rates, Trade Policy & ISI
Decade of Development
Green Revolution
High Industrial Growth
Focus on Agriculture as well
Exchange Rate
Overvalued; as against India & UK
Economic Rationale (Discuss). Relation with
ISI (Discuss).
Korean War Boom. Effects.
State Patronage.
Decent Start Despite Political Turmoil.
Trade Policy
Overvalued Currency
Direct Import Controls
Cascaded Tariff Structure
Decade of Development
High Growth Rate. (6.7%+)
Aid was Rampant.
Green Revolution
Tractorization
Tube Wells.
High quality seeds.
ADBP

Industrialization
ISI continued.
Multiple Exchange Rates through EBS.
Export Bonus Vouchers Scheme.
Role of PIDC. State Patronage.
Economics: Social Utility of Greed, Functional
Inequality, Lewis Two Sector Models, Trickle
Down Effect
Bhutto: Bad Luck Years
Positives
Focus on Human Capital Export
Focus on Large Scale Sector (PSM established).
Export Refinance Scheme Launched.
Favorable Labor Policy.
Tried Land Reforms.
Devaluation Boosted Exports
Bhutto: Bad Luck Years
Negatives
Nationalization hurt private sector confidence.
Growth declined.
Bad Luck Factor: Oil Crisis, Stagflation in US, Floods, Pest
Attacks.
Is damage from separation of Bangladesh, a bad luck
factor?
Illiberal trade and investment policy.
Sowed the seeds of inefficiency public sector whose white
elephants still soak up major chunk of taxes.
Very High Inflation