Assignment No#03

Topic;-
Developing countries need trade not aid

Submitted by;-
Muhammad Umair khan

Registration No;-
14PWIND0311

Section;-
A

Submitted to;-
Sir Fawad Haidar
 Developing Countries need Trade, not Aid

Introduction:-
Developing countries are the ones where economy is in the growing stage. In these countries people are
in need of products and services and the demand is increasing day by day. And in the era of
globalization, purchasing power of people has increased so any new product or service launched will be
in high demand in developing nations. Moreover in a nation like Pakistan where there is a huge
population with different cultures the demand s also vary a lot. So any big firm whether its automobile
sector or electronic sector will certainly have consumers lined up for there products to get sold. Hence
trade is certainly necessary not only for enhancing development of these countries but also for
increasing the living standards of people. Not only that the firms will also get an extremely good market
to invest which will also enhance there trade and increase profit levels.

Explanation:-
Developing countries always need trade compare to aid to become a developed country. Only trade can
enhance the economic growth of the country and it also develops a better understanding between the
nation. Aid is a short term desire while trade is the long term desire.

If anyone gives us aid, it means the talent which is in us is not given sufficient way to show and our
talent remains inside us and later dies with our death. When we trade, we put all our talents in that and
it also helps in growing new talents as well.

Developing countries definitely need trade not aid.

What happens with such nations is that they do have the resources but lacks necessary expertise in
using the same.

Trade would definitely provide them technology to use the resources & entrepreneurial supply would
chaelise the same in favor.

Whereas aid would due to lack of technology & experience just leads to adverse balance of payment & a
nation wealth draining.

Developing countries play a major & vital role in the trade market, it is beneficial to the country in all the
means like in economy & in the development of the country. Every time a country cannot go for a aid, it
should start developing on its own, so TRADE is the only means & the way through which the country
can be successful in its FUTURE. Today we are in business world. So when we are improving that country
like developing surly we are maintained the trade mark. Business is the biggest tool of improving
country. And also improve our economy. And one thing friends. Our Pakistan running in the corruption.
Youth only to reduced that. Then only improve the country. Developing countries definitely needs trade
from the neighboring and other developed countries. This helps in increasing the economic conditions
and it develops a good bondage between them. One cannot always aid a person so it is better to help
him by providing an opportunity to grow.

Trade is opportunity for growth Liberates economy. It Earns on Assets, and will make developers self
sufficient and pave way to explore their potential. Aid is an instant remedy. Not cure. Trade is better
than aid because trade improves the efficiency of a country since there are some products which may be
being found in the developed countries but not in the developing ones therefore I will go for trade and
not aid. Definitely trade is better than aid as the aids given in form of funds are not utilized properly for
development and large sum of money goes inside the pocket of ministers. But with the trade any
developing country can be benifited in two ways one it will get money for growth and development and
secondly it will abridge the gap between a developing country and developed country.

`Any Economy has to pass through the stages namely, Aggrarian,Manufacturing and Trade. The faster an
economy grow from aggrarian to Manufacturing,the more it becomes independent. Globalisation has
even sprankled high competition environment in developing countries. Hence to struggle and compete
with global standards, our companies/enterprises have to increase the standard/quality of their material
and export as much as possible to EU,USA or other countries where the lucrative gains are possible. This
is how we save economy. Aid is certainly not an option because its more like Do or Die. Though dying is
not an option here really, in case of disasters a country(developed or developing) needs aid from all over
the world to sustain. So Trade instead aid.

IF today we catch a fish from the nearby pond and give it to a needy person,we would feed him for one
time(AID) but if we tell him how to catch this fish(TRADE) then we are feeding him for the whole life.I
mean friends we need trade not aid at all.If today we hanker after developed countries for aid somehow
in the coming future we would be dominated by them but if we make them our trade partner it will be a
good sign for a developing country like Pakistan .

China is shining like anything not because it was aided by any country but because it aids even the
developed countries by its trade. Friends history is made by the brave person who used to live without
any hope of any type of aid, they chosen a self dependent life and in the present scenario a developing
country should be self dependent and it can be possible only by developing a good trade.

In my opinion in the era of globalization we need trade we don't need aid just because through the
trade we are in position to exchange our goods and services with other country and during this we are
also in position to know about the culture of other country and slowly slowly we are going to adopt the
good things from the other country and now I would like to talk about the aid if any country is in the
practice of getting aid the we can say that it is beneficial for the short-term and if any country is going to
go long with the aid then I am sure that first that is going to be lazy & then sick, then weak, then
diminish. That's why only trade is good practice aid should not be entertained by any country for a long
period.
I think in country like Pakistan in today's world trade is on increase day by day. Situation of getting aid
comes when there is something economic downturn in country and there is need of aid from other
country in that case their is need of hour to get aid and this situation occured in2009 stock market
downturn and flauds in Pakistan but as years gone by many changes has taken place in Pakistan and
now its on development stage and economy is on increase day by day and other countries are dyingto
have trade relations in Pakistan so think it is for the betterment of the PAKISTAN ECONOMY That they
are looked upon as potential market for outer world.

Pakistan is a developing country, as we are developing day by day, so in this condition we need more
trade opportunity from neighbour countries, not aid, some where taking aid from another countries can
make our country lazy in there development. So, we need to welcome more & more trade in the place
of aid... Developing countries are need trade only,not aid... using trade they can show their
improvement in all things. Because of aid they cant get better position in the world.neighbouring
countries can give opportunity to other countries to develop their economy by trading. because
opportunity also one of the stepping stone of success..Its suits for developing humans as well as
developing countries.

Developing countries always need trade compare to aid to become a developed country. Only trade can
enhance the economic growth of the country and it also develops a better understanding between the
nation. Aid is a short term desire while trade is the long term desire. If anyone gives us aid, it means the
talent which is in us is not given sufficent way to show and our talent remains inside us and later dies
with our death. When we trade, we put all our talents in that and it also helps in growing new talents as
well. Developing Countries definitely need trade not aid because that if other countries gave us aid but
also with this aid there are many conditions to put in their economy like high prices, buy imported
goods, foreign currency return to their country. So finally aid is short term but the trade is long term. So
finally trade is better than the aid.

Developing countries definately need trade than aid because aid is a short term fullfillment of neeeds
and demands of a country which it cannot rely on.

Aid can be supplied for a certain period after which the country has to find effective means to enhance
its growth. And this opportunity can be provided only by the means of trade which helps enhancing the
productivity and in turn the growth of the nation.

Developing countries definitely needs trade from the neighbouring and other developed countries. This
helps in increasing the economic conditions and it develops a good bondage between them. One cannot
always aid a person so it is better to help him by providing an opportunity to grow. It is better to provide
aid for trade. One cannot always aid a person so it is better to help him by providing an opportunity to
grow. It is better to provide aid for trade.
References:-

1. THIS is apropos of M. Fazal Ilahi’s letter ‘Trade not aid’ (Sept 23 DAWN NEWSPAPER).
Ideally, trade not aid must be the significant component of our economic policy. This suggestion
is often raised by our politicians. Even in international trade and investment-related forums,
developing countries, including Pakistan, sometimes urge upon developed and rich countries to
evolve a world economic order which ensures to provide more facilities to developing countries
to promote trade rather than providing them aid/loan.Admittedly, foreign aid is not an unmixed
blessing. It does have its pitfalls. However, in the event of a wide resource gap amidst growing
socio-economic requirements, foreign aid/loan, whether unilateral or multilateral, becomes
inevitable or inescapable for a developing country like Pakistan and its efficacy and usefulness is
determined by its judicious and productive use through effective and efficient management

2. Likewise, subsidies to European farmers have played a role in the decline of the
Brazilian and Jamaican dairy industries and the South African sugar industry. Wealthy
countries grant subsidies of $265 billion per year to their domestic farming industries,
3.3 times more than the aid given to developing countries by OECD member states
(Organization for Economic Cooperation and Development, 2005; Office of the U.S.
Trade Representative, 2006).  In fact, every cow in Europe gets more money in EU
subsidies per day (an average of $2.20) than 20 percent of the world’s population
earns in daily income (Kaplan & Calzonetti, 2005).  Eliminating those subsidies, many
analysts say, would make development aid much less necessary and allow poor
countries to develop their own economies while competing in the global economy.

3. Middle Eastern countries face average clothing tariffs of 15 percent on the $4.2 billion
worth of goods they export to the United States each year (Reuters, 2009; Office of
the United States Trade Representative, 2009).  Meanwhile, France encounters tariffs
of only two percent on manufactured goods, which account for $34 billion in annual
exports to the United States (Reuters, 2009; Central Intelligence Agency).  According
to Progressive Public Policy Institute, although Middle Eastern countries export less
merchandise to the United States than France, they pay just as much in taxes.  This is
because the United States charges higher taxes on clothes than on manufactured
goods, creating a disadvantage for developing countries, where apparel is often a
primary export industry (Reuters, 2009).

4. Emerging economies like India and South

Africa are steadily catching up with developed countries,
thanks to increased trade. The GDP per capita increase
of
G20 developing countries stands at 115% for the decade
2000-2010. (European commission)

5.
 Business-enabling reforms were implemented in 36 Sub-
Saharan African economies in 2010/2011. Of these,
Mauritius ranks 23rd out of 183 countries in the World (European commission)
Bank’s Ease of Doing Business Report, ahead of several EU
member states

Conclusion:-.

This leads to several conclusions. The proposed

typology, a tool for identifying the needs of countries
and regions, points first to the disparities of such needs
across countries and regions, particularly within the regions
of pakistan. Next, the typology reveals that
needs are greatest in Pakistan , and in the
category of trade-related infrastructure. Lastly, expanding
intra-regional trade is an important issue that will require
rethinking of donors’ traditional tools, which are too geared
towards the national level.
It is necessary to obtain more detailed knowledge of the
actual demand for , and this can be done by building the
analytical capacity of beneficiary countries and regions.
Better knowledge of the trade characteristics of specific
industries and markets will enable countries and/or regions
to position themselves more effectively on local, regional
and world markets. It will also help to improve targeting of
beneficiaries and to rehabilitate the link between trade and poverty reduction .