Development Economics

1. Development Economics

2. Development Economics Poverty & Unemployment in LDCs Remedial Measures Manpower Planning

3. What is Poverty? Povertyrefers to the situation where the people of a country are not able to purchase the basic amenities of life for themselves. Or is this villager in rural China? Romanian gypsies – is this man living in poverty?

4. Causes of Poverty: Poverty is mainly caused by: • Unemployment • High rate of dependents on a single earner • High Rate of consumption.

5. What is Unemployment? • Unemployment refers to the situation where the people of a country do not find work to earn livelihood for themselves.

6. Causes of Unemployment: Increase in Population:- The high birth rate in LDCs leads to population explosion. When population increases this leads to unemployment and poverty. Rural-Urban Migration:- Migration from rural areas to urban areas increases the population size in urban areas. The number of available jobs are less than the available human resources thus causes unemployment in the cities. Downsizing of the Public Sector:- Due to the downsizing of the public sector most of the people are laid off. This is the main cause of urban unemployment and poverty.

7. Causes of unemployment…. continued Lack of Capital:- Most of the people do not have their capital to invest in some business and therefore remains unemployed. Lack of Credit Facility:- Due to the non-availability of credit facility in LDCs most of the peoples can not start business and they therefore remains unemployed. Seasonal Variations: There are may industries which produce the goods seasonally like Ice factory. These industries work only for few months and remain close in the remaining period of the years. So a large number of people who are engaged with these industries remain unemployed.

8. Causes of unemployment…. continued Technological Advancement: due to the installation of improved automatic machinery the absorption of persons in large-scale industries has gone down. This had led to increase in the unemployed labour force. Lack of Skill and Work Experience: Majority of people do not have any skill about any particular job. Or if they have the skill they do not have work experience so they can not get the job. Lack of Education:- Those who do not have enough education remains unemployed in the urban areas because without education they can not work in organizations.

9. Causes of unemployment…. continued Out-dated Curriculum:- the outdated curriculum creates the mismatch between educational outcomes and skill demand in the market. Lack of Mobility : Many of the people in cities remain unemployed due to immobility. Employment opportunities may be available in other parts of the city but due to their immobility they remain unemployed.

10. Causes of unemployment…. continued Lack of Information: Most of the people remain unemployed due to the non-availability of information about employment opportunities. Fall in Overseas employment opportunities:- The employment opportunities particularly in the oil producing countries are declining. This has also contributed to the rise in the unemployed labour force.

11. Remedial Measures: Control on population:-The should be an effective check on the population growth. Family planning Programmes should be introduced and population should be reduced according to the size of natural resources. This will greatly help in lessening the pressure from the supply side on the labour market. Establishment of Small Scale Industries:- the small scale industries are to be promoted by providing liberal credit facilities. This will increase employment potential. Vocational and Technical Training Centers:- Vocational and Technical training centers should be established to provide training and skill to the public. It will be very helpful in curtailing the unemployment.

12. Remedial measures…continued Encourage Construction Industry:- The construction of house, roads should be encouraged in the private sector. This will create more jobs in the country. Internship Programmes:- most of the people remains unemployed because they have no work experience. Govt. should start national internship Programmes for graduates and postgraduates students so that should get enough experience of working in an office. Employment Exchange Offices:- the offices should be established to provide the proper information about the employment in other countries to the public.

13. Remedial Measures… continued Appropriate Monetary and Fiscal Policy:- government should frame monetary and fiscal policies in such a way that maximum chances of employment may be provided to the public. Appropriate fiscal and monetary policies can go a long way in mobilizing resources for economic growth and creating employment, thus solving the acute problem of unemployment.

14. Manpower Planning? Manpower planning is the long range planning of skilled and unskilled manpower requirements of the country and the attempt to gear educational priorities and investment in accordance with these future human resource needs. Demand for Labours Supply of Labours Compare Demand for Labour and Supply of Labour Take appropriate Action

15. Need of Manpower planning • Many developing countries including Afghanistan are facing wide spread and growing problem of unemployment and under employment. it is being increasingly realized that policies should be formulated to create employment opportunities in the country both in the rural and urban areas. The assessment of manpower, both quantitative and qualitative and its effective and efficient use requires proper manpower planning.

16. Need of Manpower planning • There is a dire need to assess the demand for and supply of manpower in each sector of the country. This can only be done through proper manpower planning. • After manpower planning, the government can take steps to provide technical and vocational training schemes to improve education and skill of the workers. This will increase the marketability as labour force both inside and outside the country.

17. Need of Manpower planning • Manpower planning helps in devising the educational system which should meet the shortage of highly skilled professional manpower in the country such as scientists, doctors, engineers etc. • It is through manpower planning that government can take measures to reduce the inflow of rural unemployment and under employed persons to big cities. The government can setup industries, provide electricity, roads, hospitals etc in the rural areas to provide employment at home or near their homes.

18. Need of Manpower planning • The size and rate of growth of population directly affect the available labour force. The higher the size and rate of population growth, the larger is the number of workers and vice versa. The government can take effective measures to have the most desired size of the population. Manpower planning thus helps in checking population growth.

19. Problems of Manpower Planning in Afghanistan • Wars • No concepts of human resource planning. • Lack of skilled planners • Political instability • Economic instability • No Budget can be allocated due to budgetary deficit. • Population growth rate is high than the actions taken.