Economics Commentary Essay Example for Free

economics Commentary EssayBRUSSELS The European Commission on Thursday announced 5.5 one million million million euros (7.5 million dollars) of emergency humanitarian facilitate for hundreds of thousands of civilians in conflict-ridden northwest Pakistan.More than 834,000 civilians have now fled a armament assault on Taliban fighters holed up in Pakistans rugged northwest, where artillery pounded rebel bastions Thursday.As a pass on of the intensified fighting in Swat and other parts of the country, Pakistan is facing not only a security threat but in any case a humanitarian threat, said European valet de chambreitarian precaution Commissioner Louis Michel. Pakistani authorities argon doing their utmost but their relief capacities are now overstretched, he said, announcing the wall plug of 5.5 million euros while adding that to a greater extent could be provided if necessary.The EUs executive arm stressed that its aid was provided on a neutral basis to provide staple hum anitarian needs such as shelter, food, clothes, and medical support.In slightly places, it lead likewise provide clean drinking water and sanitation.All the funds depart be channeled to projects by non-governmental relief organizations, specialized UN agencies and the rosy-cheeked Cross/Red Crescent movement.The European magnetic north plans to hold its first ever summit with Pakistan in June to suspensor strengthen the civilian government there.Among subjects mooted for the summit, provisionally planned for June 17, are the fight against terrorism including in neighboring Afghanistan as well as cooperation in the field of the rule of law and trade issues, according 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.Powered by IndiatimesAbout Us Advertise with Us hurt of Use Privacy Policy Feedback SitemapCopyright (c) 2009 Bennett Coleman Co. Ltd. All rights reserved. For reprint rights Times Syndication ServiceThis site is scoop viewed with Internet Explorer 6.0 or higher Firefox 2.0 or higher at a minimum block out resolution 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 development, 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 formalized aid or also known as official development assistance (ODA) it is a mess up of bilateral and multilateral aid. Multilateral aid is when organizations allocate funds provided by the countries and bilateral aid is when the aid is given directly to the country in need in the form of for example money support, machinery, tools, food, and medicine. In instal 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 multitude there, which is proper sanitation and basic necessities of life, but also help 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 technological factors, and also institutional factors. In this case, the human factors and the institutional factors are kept in mind for Pakistans developm ent. Human factors are the quality and/or quantity of human resources. The consequences of providing the civilians with let on sanitation and food, shelter, medicine etc would be that they would have a better standard of living lesser measuring stick of people would fall ill and that would mean more amount of labor, which is an economic benefit.This would add to the potential sidetrack due to the step-up in productivity as more people would be there to contract for the thrift of Pakistan. In Graph 1 it shows the potential output of Pakistan at train B and point A represents the current output of the economy. In Graph 2, the potential output of Pakistan increased to point C due 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 infrast ructure, which is the internal pinched 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 astir(p) the civilian government. The civilian government, once recovered, can help in up(a) 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. punter health would result in longer life span, more productivity and an increase in literacy esteem 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 impact 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. There 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.