Originally Posted by abbas khan 119

I have been a critic of fpsc since it announced CSS 2016 result. I was given the marks of irrelevant essay I.e 20 that according to my own perception was injustice with me. I am of the belief that my essay was not checked at all. Please analyse my essay and decide yourself if CSS exam has become a joke


Does foreign aid help to achieve economic stability?
1. Introduction
The role of foreign aid to stabilise, or destabilise, an economy is largely dependent upon the intentions of the donor and character of the recipient state.
Donor intentions: whether strings are attached or not
Recipent character: whether recipient is corrupt or not and how is the governance structure,
Foreign aid has always produced mixed result.
2. Foreign aid a mixed scenario: marshall plan vs aid to Pakistan
Compared marshall plan with aid to Pakistan
3. Evils associated with foreign aid. (examiner inferred by studying this heading that I am not talking about stability or instability rather about something else.)
3.1 insistence by donor to liberalise market
When tariff non-tariff barriers removed, local market of poor states flooded with foreign products. Local products cant compete these products, their consumption lowers down. GDP growth decreases unemployment increases.
3.2 insistence by donor to subside subsidy on agricultural products
When subsidy eliminated, the price of agriculture products jacks up, and they can't compete in international markets. Trade deficit, budget deficit increases. Resultantly lower GDP rate, inflation, unemployment.
3.3 Structural adjustment policies of IMF, WB and loss of human capital.
IMF, WB demand that expenditure on health education must be reduced. This erodes the efficiency of labour.
3.4 free market economy and environmental degradation by MNCs in poor states
When free market, mncs shift their manufacturering units to poor states in order to evade the environmental laws of parent states. There they degrade environment which has serious consequences on economy.
This is a very latest issue and being discussed in sustainable development related conferences
3.5 prone to corruption( corrupt elites in the recipient state)
States are poor because of corrupt elites. Rulers there misuse and abuse foreign aid that result in mounting debt servicing. Debt lead to inflation and unemployment.
4. Proposed reforms in Imf, wb ( proposed by south, g-77 states)
Due to the aforementioned problems poor states in UN have propsed to reforms both the leading lenders and abolish weightage system
5. Benefits of foreign aid
If donor is sincere and recipent is effective; ifcost benefit analysis method is employed, f.aid can be utilised to solve balance of payment crisis. it can be utilised in developmental Projects. Infrastructure development that lead to more revenue more employment.
6. Alternatives to foreign aid.
6.1 broadening tax net.
6.2 adopting austerity measures
6.3 natural resources exploration
6.4 corruption elimination
7. Conclusion