Introduction: A review of development policies 1947–70  pp. 1-12

Introduction: A review of development policies 1947–70

By Rashid Amjad

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The first twenty years of Pakistan's existence saw an underdeveloped predominantly agricultural economy, trying to achieve rapid industrialisation through active support to the private sector. Although by the end of the sixties Pakistan's political edifice had collapsed leading amongst other things to the dismemberment of the country, its experience, especially during the sixties, is one from which other developing countries can learn in analysing and evaluating the performance of the private sector as the means of achieving industrial growth.

For the knowledge of the level and pattern of private investment and of the factors which influence it is essential to an understanding of how economic development is proceeding in any country and to the formulation of economic policy. Yet investment is not easy to measure and its determinants in a market economy – or the market sector of a mixed economy – are complex. Indeed, the level and pattern of investment in a country is a set of responses to virtually the sum total of economic events in that country. It is true that these events can be said to generate signals through the medium of profitability, actual and expected, but especially in manufacturing industry in a developing country, where competition is imperfect and market conditions are greatly influenced by government policies, the assessment of future profitability involves assessment of market prospects, of rivals actions and of government policies – as well as an assessment of how far one can influence these policies.

In an applied study one can hope only to assess the proximate causes of investment behaviour.

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