Task 1: Compare development models in SAARC countries.

Development is a process that creates growth, progress, positive change or the addition of
physical, economic, environmental, social and demographic components. The purpose of
development is to improve the living standard of population.
The process of convergence and divergence has been going on in the global economy in the last
three hundred years after the scientific discoveries and technical innovations that have
fundamentally changed the nature of production, exchange and consumption. The average
growth rate in developing Asia has been 7 to 8 percent in the last 30 years, twice the global
average and three times or more of that in the EU economies. After decades of sluggishness,
growth rates in South Asian countries have been higher than those in other regions of the
world; particularly very impressive in India (5.5 to 7.0 percents).These facts are based upon the
sets of data from World Economic Outlook of the IMF and World Bank Development Indicators
(WBDI).

Different forms of development models are being followed among the SAARC countries such as
integrated rural development model, economic growth model, liberal development etc.

Lets discuss over some of the models of rural development carried out in the SAARC countries.

1.India

Vast majority of India’s poorest people are located in rural areas. The core problem of
widespread poverty, growing inequality, rapid growth of population, growing and rising and
unemployment all find their origins in the stagnation and other retrogression of economic life in
rural areas. Some of the models followed in India are:

a) Gandhian Model of Rural Development

Gandhiji’s approach to India’s rural development was holistic and people centered. The
Gandhian model of rural development is based on some values and premises as follows:

1) Real India is found not in cities but in its villages.

2) The revival of villages is possible only when the exploitation of villages is stopped.
Exploitation of villages by city dwellers was “violence” in Gandhiji’s opinion.

3) Simple living and high thinking implying voluntary reduction of materialistic wants and
pursuit of moral and spiritual principles of life.

4) Dignity of labour, everyone must earn his bread by physical labour and one who labours
must necessarily get his subsistence.
b) Marxist model of rural development

Rural development in india is dependent on marxicst theory which saw class straggle as the
engine of social change and development. In the context of rural development, the theory
provides a useful caveat that while identifying the determinants of rural development, we
should critically examine various inter-sectoral linkages (both backward and forward) and
interactions and determine whether they are beneficial to rural people or not.

2. Bangladesh

The model followed in Bangladesh is Comilla model of rural development. This model was the
outcome for innovation in rural development in low income and densly populated agrarian
society. It was expanded all over the country in 1979 AD. The major components of the comilla
model are

1.Decentralization and coordinated rural administration.

2.Organizing the farm and non farm population through a new system of rural co-operatives.

3.Agriculture mechanization and irrigation.

4.Building rural infrastructures through local level planning.

Achievements of comilla model

1.It has replaced the old colonial approach-“development through officers”.

2.It has solved some critical problems like low agricultural productivity, food deficit, rural
unemployment.

3.It has introduced innovative methods like

 Investment can be made in rural areas.

 Leadership can be developed in rural areas.
 Bottom up planning can be introduced.

3.Afghanistan

Nearly 80% of Afghanistan’s population lives in rural areas and depends heavily on livelihoods
in the agriculture sector, which in turn depends on agricultural production. Due to endless
decades of civil war ,revolution and instability the people of Afghanistan had suffered from lack
of rural development and economic growth. Rural Afghanistan is blessed with renewable
energy sources such as hydro, solar, wind, etc but due to lack of modern forms of energy
generation means these resources are being wasted.

However, now the government of Afghanistan had begun different rural development
programs in rural areas such as NSP( National Solidarity Program) under the ministry of rural
rehabilitation and development which has been responsible for the building of thousands of
kilometers of roads in various communities for all 34 provinces of the country.

4.Nepal

Different kind of development programme are being carried out in the rural areas of Nepal at
different time period of time and some programme are as:

a.Tribhuvan Village Development Programme

This was the first systematic effort carried out at rural development which was made in
1952.This was multifaceted program which included every aspects of the village community
needs such as education, input supply for agriculture,drinking water, agricultural extension.

b. Panchayat Development Programme

This programme was introduced with introduction of the partyless political system of panchyat.
Panchayat development land tax was introduced in 1966 to enable local to generate resources
for rural development. It was initially introduced in 12 villages panchayat of jhapa but was later
suspended in 1978.

c. Small farmer development programme was launched in 1973 with support of UNDP. Its main
objective was to brought the small farmers into main stream of development.

Pakistan

According to the growth and development Pakistan falls among the developing countries in
third cadre. The first initiative of development in rural level was carried out with the V-
AID( Village agricultural industrial development programme). After the introduction of system
of basic democracies in 1959 Ad. It was aimed at decentralization of governmental
administration under which many schemes were initiated such as

1.Rural Development Programs

2.Agriculture Development Bank Of Pakistan

3.Agriculture Development Corporation

4. Comilla Experiment
Along with it , Pakistan follows macroeconometric model which has served as important tools
of analysis for macroeconomic forecasting and policy assessment. Among the different models,
macroeconometric models are useful because they depict the structure as well as temporal
behaviour of the macroeconomy. Macroeconometric models also provide a useful means of
tracking the implications of a variety of shocks, both exogenous and policy driven within and
between economies and regions. Given the global macroeconomic environment, Pakistan has
been following liberalization policies since early eighties. These policies include liberalisation of
trade and payments system, shift to the managed float exchange rate regime in 1982 and then
to the free float in 2000, more autonomy to the State Bank of Pakistan, greater role of the
market forces in the determination of interest rate, permission to the residents to hold bank
deposits in foreign currency and host of other reforms in the financial sector.

Srilanka

Srilanka is an early achiever in the millennium development goals (MDG). The government is
using Mahinda Chintana policy , a 10 year plan in rural areas of the country. Its mission is to
develop regionally dispersed urban growth centers and small and medium sized township and
to integrate them with well serviced rural hinterland,as well as domestic and international
market through provincial and rural acess road.

The Kurunegala Rural Development Project 

It aims to assist in raising productivity, employment, incomes and living standards and to
develop a replicable model for rural development for other districts in Sri Lanka. The project
will provide for rehabilitation of existing irrigation schemes accompanied by improved water
management practices to fully exploit the irrigation potential, and for programs for
replanting/underplanting, intercropping and fertilizing of smallholder coconut plantations. The
project will also strengthen agricultural extension services, improve the supply of input services
such as fertilizer distribution and seeds supplies, and lay the foundation for a viable agriculture
credit system. These directly productive investments will be complemented by investments in
transportation, health, education, water supply and rural electrification.

The another program is Samurdhi Programme which generate a vast volume of investible
funds. This program appear to reach large no of poor which were excluded by other program.It
is successfully insulated from capture and is supposed to be more stable.

Bhutan

The cornerstone of Bhutan's development approach is the concept of Gross National Happiness

(GNH). Bhutan's fourth King, Jigme Singye Wangchuck, first introduced this idea to the world in
the early 1970s when he proclaimed that “Gross National Happiness is more important than
Gross National Product” . Hydropower is the backbone of the Bhutan’s economy. It has became
the greatest exporter of the hydropower to india which had contributed around 45% of
country’s national revenue.  Besides, economic growth, preservation of environment, and
preservation of culture and tradition are considered in achieving sustainable development that
promotes happiness of the present and future generation , so they mainly focus on GNH .

Maldives

In early 1980s maldives was one of the world 20 poorest country in the world but within 2012
the country has impressive improvement in health and education with life expectancy of 74 yrs
and 98.8 % literacy rate. The rural development and economy of Maldives is mainly depended
on its tourism industry.  Its main natural resources consist of fisheries and a marine
environment conducive to international tourism. In considering the costs and benifits of
international tourism, attention is given to such factors as the extent to which the tourist
industry employs local inhabitants (as distinct from foreigners) and provides alternative
employment opportunities for them.

Conclusion

So, in brief we are able to know that different country are following different development
models in different period. And many more stratagies and project are being carried out which is
ultimately helping the country to boost up. And poor countries like Maldives and Bhutan are
being able to do show such impressive improvement on short time using appropriate
development model. So each country should follow the far shighted development models and
mainly focus on the resources available in the country for their growth.

REFRENCES

https://www.slideshare.net/RajeevKumar299/16saarc-countries-rural-development-129689384

https://ecomod.net/system/files/saarc_rev_Ecomoc016_texworks.pdf

https://www.adb.org/sites/default/files/publication/31110/development-capital-markets-
saarc-member-countries.pdf
Task 2: Compare the development models in Europe
Europe is second smallest continent of the world which is composed of the westward-projecting
peninsulas of Eurasia (the great landmass that it shares with Asia) and occupying nearly one-
fifteenth of the world’s total land area. It is bordered on the north by the Arctic Ocean, on the
west by the Atlantic Ocean, and on the south (west to east) by the Mediterranean Sea, the Black
Sea, the Kuma-Manych Depression, and the Caspian Sea.

After the world war II the countries of Europe has signed many treaties and for creating peace
and making war unthinkable the eruopean union has came into existence. On 1 November 1993,
under the third Delors Commission, the Maastricht Treaty became effective, creating
the European Union with its pillar system, including foreign and home affairs alongside
the European Community. This in turn led to the creation of the single European currency, the
euro . European Union (EU) is a political and economic union of 27 member states of Europe. Its
members have a combined area of 4,233,255.3 km2 (1,634,469.0 sq mi) and an estimated total
population of about 447 million.

Since 2000, the European Union assumed profound transformation stage in the economic system,
by ensuring economic and social cohesion. The aim is both compatible with EU overall
development and harmonization of new members in full and global level. Today the world is
facing three models of economy and society, being in the same time also social and economic
development models: the European model, American model and Asian model. The European
model includes three elements: economic growth, political freedom and social cohesion. After
the second world war European countries has undergone many social development which mainly
focus on health care system, education, unemployment insurance, labor protection and
regulation, etc. The types of European social model are listed below:

 The Nordic model, in Denmark, Finland, Norway, Sweden and the Netherlands

 The Continental model, in Austria, Belgium, Czech Republic, France, Germany,
Hungary, Luxembourg, Poland, Slovenia
 The Anglo-Saxon model, in Ireland and the United Kingdom
 The Mediterranean model, in Greece, Italy, Portugal and Spain

Nordic Model
It is the social model followed in countries mention above (Denmark, Finland, Norway, Sweden,
Netherland) . It is characterized by a high degree of redistribution and is the most efficient
system of social protection, promoting social inclusion, provides social services to all categories
of citizens and open dialogue and social cooperation between social partners and the
government. This type of economy stands among the most competitive European economy. It is
not able to sacrifice social cohesion to improve economic performance of countries that have
adopted this model. While there are differences among the Nordic countries, but they all share a
broad commitment to social cohesion, a universal nature of welfare provision in order to
safeguard individualism by providing protection for vulnerable individuals and groups in society
and maximising public participation in social decision-making. It is characterised by flexibility
and openness to innovation in the provision of welfare. The Nordic welfare systems are mainly
funded through taxation.
Despite the common values, the Nordic countries take different approaches to the practical
administration of the welfare state. Denmark features a high degree of private sector provision of
public services and welfare, alongside an assimilation immigration policy. Iceland's welfare
model is based on a "welfare-to-work" model while part of Finland's welfare state includes
the voluntary sector playing a significant role in providing care for the elderly. Norway relies
most extensively on public provision of welfare.
The opponents of this model criticize high tax rate, high degree of governmental intervention,
and low GDP that ultimately hinder the economic growth. It redistributes the assets and limits
the money for personal spending making people rely more on government. The major challenges
of this model are ageing population and immigrants.

Continental model

The Continental model has some similarities with the Nordic model. Nevertheless, it has a higher
share of its expenditures devoted to pensions. The model is based on the principle of "security"
and a system of subsidies which are not conditioned to employability. This model is existed in
countries like Austria, Belgium, Czech Republic, France, Germany, Hungary, Luxembourg,
Poland, Slovenia.
In this model, employment of labor is the basis of social transfers and benefits granted are much
smaller, being dependent on the income obtained previously. The labor market is regulated by
the state so that it has reduced workers flexibility. Taxation is high as compared to that of
countries that have adopted Nordic model, and this leads to a lower capacity to create jobs in the
private sector. Unemployment benefits are quite high in relation to wages, which is urging
citizens to stay home instead of looking for a job and, of course, this involves high
unemployment rates. Countries in continental model have a lower income inequality than
Anglo-Saxon countries sub-model due to higher spending on social protection made in the past.
Another important aspect of the Continental model is the disability pensions. The "social" part of
the model deals with providing equal economic opportunity and not for the redistribution of
wealth. Indeed, Rhine capitalism is often referred to as successful combination of the American
model of Capitalism with European Democratic Socialism.

Anglo saxon model

Anglo saxon model is followed in UK and Ireland. The Anglo-Saxon model features a lower
level of expenditures than the previous ones. Its main particularity is its social assistance of last
resort. Subsidies are directed to a higher extent to the working-age population and to a lower
extent to pensions. Access to subsidies is conditioned to employability (for instance, they are
conditioned on having worked previously). Anglo-Saxon model reflects a liberal approach to
welfare system, where social assistance is limited and state responsibility is transferred to the
care of the individual in that it has a private system.
Anglo saxon model follows the same principle i.e individual responsibility, and labor apply
where the decision to seek a job belongs to the individual. State allocates small amounts
of labor market regulation policies. In Ireland, government intervention has improved the
country's economy so that it has become the second largest economy in Europe in terms of
economic development. Employment of labor is relatively high in Anglo-Saxon countries due to
a reduced income tax and due to low unemployment ratio in relation to salary. The Anglo-Saxon
countries have the lowest unemployment rates due to small amounts of unemployment benefits
paid by the state. Efficiency feature is successfully achieved by this sub-model but when it
comes to fairness, this sub-model shows notable differences in the distribution of income in
society. In some aspects this model is in direct conflict with the religious and cultural factors, but
profitability became the overarching principle of this model and overrode any other
considerations. In one analysis, it could be seen that this is not true if taken as a standalone
principle, but the argument was that the marketplace decided which was important and in the
marketplace, profits became the key guiding principle.
Mediterranean model

The Mediterranean model is followed in southern European countries such as in Greece, Italy,

Portugal and Spain who developed their welfare state later than the previous ones (during the
1970s and 1980s). It is the model with the lowest share of expenditures and is strongly based on
pensions and a low level of social assistance. There exists in these countries a higher
segmentation of rights and status of persons receiving subsidies which has as one of its
consequences a strongly conditioned access to social provisions. According to this model, the
state has a minimal role in terms of social protection, with social benefits only to certain
categories of people. The labor market is controlled by the state is highly fragmented and rigid.
Wage negotiations are centralized. In this model, state functions are taken to some extent by the
family. An important role in social and productive throughout is played by the family. Long-term
unemployment is particularly high among young people, while social spending is low budget.
The labor market is rigid because the state is regulating this market. Differences in income are
explained in terms of a smaller state and a redistributive economic system unable to significantly
increase the employment rate of workers. In some countries such as Italy, Portugal and Spain
income differences can be explained by the existence of large regional differences.
MEM(Mediterranean Economic Model) government’s economic policies aim to maintain
adequate level of growth at the same time as decent working conditions and welfare
opportunities. It can be explained as a civil approach to economics which unites the
Mediterranean countries and endorses an idea of the market as “anthropic and altruistic” (in the
sense of a market that concerns man) in which the state, having recognized its central role in
economic growth, leaves space for civil society (the third sector).
Europe 2020, a new model of economic development

Along with these models existing, a new vision on the development of Europe economy has
came into existence based on closer coordination of economic policies in order to generate
growth, employment levels, high social cohesion, which would contribute to economic and financial recovery of
European union. Europe 2020 Strategy aims for increasing young labor employment, older workers and low skilled
people. The financial crisis has had a major impact on the ability of European enterprises and governments to
finance investment and innovation projects. To achieve its objectives for Europe 2020, the EU will need: a
regulatory environment
that promotes efficiency and safety of financial markets, innovative instruments to finance the necessary
investments – including through public-private partnerships.

Conclusion

Overally, these models existing in the European union are capitalistic. These models have been
found to based on the two criteria i.e. Efficiency and equity. Based on these criteria the Nordic
model is found to be best in terrns of performance. The continental model should improve its
efficiency whereas the anglosaxon model should improve its equity.where as meditteranean
model has under perform in both criteria. Europe consist of worlds most powerful nations and
formation of European union has ultimately build good relationship among countries .

REFRENCES

file:///C:/Users/Acer/Downloads/economierurale-406%20(2).pdf

http://store.ectap.ro/articole/853.pdf

https://en.wikipedia.org/wiki/European_social_model