Outgrowth Of Consumer Financing: Positive or Negative!

Many of the people do criticize the commercialization of banking services, i.e. especially the consumer financing holding that they’ve led the people to spend more and more on useless things, but if we see from increasing consumption leading to increased production and GDP point of view, the economies have really grown. Though the macro economy has got most of this growth, but the ease and comfort at users’ end, i.e. from credit card debt relief to car financing and house financing it’s served the people on micro level.

It’s no doubt an endless debate, but the growing economies of the world have outshown the concept of supply according to the consumers’ demand. In this contest, Pakistani economy has also seen the outgrown macro economy in the past few years, and this growth has served the people to a specific extent as well. Yes, there lies a negative aspect, as nothing in the world is 100% complete so is the case with this growth and development. This negative aspect is the uncontrolled poverty and inflation.

Well, these are the challenges for the forthcoming rulership on one hand and for the economy experts on other. Let’s see how can we improve or at least can do just a cut above.

Who Is Responsible For The Development?

Development of a nation does depend on the efforts of its people but the part of efforts by leaders weighs more. Was just exploring the history of Norway and found that the country is not that old, but the development shows quite good signs. If you ever happen to visit Oslo or any other part of the country or just read about it from authentic sources like CIA world fact book and the Economist etc, you’ll feel the difference. It just started developing after Second World War.

Later when I tried relating such development with ours, I really couldn’t understand what exactly we’re lacking. We have resources, both natural and human, and financial resources have also not been a matter as we’d got enough amounts from World Bank and IMF. So what exactly was the reason that we’ve not developed like European or some other countries? Certainly it was leadership! Is it something else?

Don’t know why, but I’m of the opinion that ‘Goo Leaders Make a Good Nation’, and we lacked such, so just don’t want to give another chance to same old faces.

Economy Of Credit Cards And The Consumer Equilibrium

Researching on the economies has been one of my favorite hobbies for some time back, and something that I learn most from. I remember the days spent in university studying finance, though seemed a bit dry those days, but with the passage of time it became a domain of my extreme interest. What actually made me to get inside the field is still undiscovered, but the sped up banking systems focusing more on consumer products has really made me to explore the avenues, and the products I’ve researched on till yet are ATM/debit/credit card, car financing, house financing etc.

Though researched but couldn’t experience the later two while have had some good experience with the former facilities. I in fact used debit card most of the time, but as it can’t replace credit card, and I needed one so applied for such but the procedure here in Pakistan is a bit time consuming as compared to the banks working in developed countries like UK etc. Not only the quick turn round but some additional features of credit card, like one is offered by Co-operative Bank are really makes the credit card economy worth considering for both the consumers and the banking sector.

While having a look at the features of credit card offered by The Cooperative Bank, I found that a consumer will be in equilibrium if the rate doesn’t change for about five years, if he’s given 46 days interest free credit if the balance is fully paid by due date along with some travel rewards. Another feature I liked most at the website was about the donations for good cause, i.e. 1.25p on the transaction amount of 100 pounds. That’s what the bank is on the go with making thousands of customers satisfied and of course resulting as a national equilibrium. And not to mention this is one major factor that helps the developed countries to further boost their economies by the economic growth both at micro and macro levels.

I’d a good experience writing a research paper on micro finance for Institute of Bankers Pakistan, which I’d share some three months after it’s published in their magazine, but till then I can recommend a credit card economy just like one I’d discussed above.

Disclaimer: Details are accurate at date of publishing.

Sponsored by: Co-operative Bank

Economy Of Online Education

I’m an Internet user for about three quarters of a decade, and have seen the Internet world undergoing a structural change. The time I started being on net was nothing more than browsing some tough concepts for an assignment and of course chatting with some friends. Later as I kept on exploring the day-to-day development I just became a part of it, or probably it became a part of my life. Now considering a life without Internet seems incomplete.

Coming to the point, as I’m a trained and experienced educator, I’ve come across a mega development in the education sector with the growth of outreach of Internet. Right now I’m not going to discuss the technological aspect, but being much in Economics I’d love to outline the economic benefits, with special reference to the developing countries, whereby the cost of education has lead the major part of population of away from education. Reducing the cost of hard copy and printing, online education best suits the economies with limited budget for education, since the cost of technology with the widespread of it is decreasing.

While browsing, I’ve come across some facts according to which Online Education has deep roots in the developed countries while the developing countries either do not support or the ratio is very low. Wondering on it, just realized the impact of the economic growth if these (developing) countries just spend a little amount on leveling the grounds for distant learning programs.

Well, this is only a suggestion; hope to see some practices in this regard. One thing that I can do at my level is to point out, and that’s what I’m working on.

Technology Per Kilogram

Some days back I encountered a technical problem and needed to replace my computer’s RAM; being new in the city I didn’t know much about the Computer stores, so just asked one of my students if he knows any good hardware store. What he told me in reply was though not new but very interesting! He told me about a market where I could get about 5 RAMs just for Rs.50 (less than 1USD), but with no guarantee.

Later on verifying form other sources I found that the market does exist. Not only this single market, but also same sort of markets exist in almost all big cities of Pakistan where the computer hardware, electronic and miscellaneous mechanical products are sold per kilogram. At this one of the interviews of Head of IT Ministry, Dr. Atta Ur Rehman (published in Dawn Education some one year back) glimpsed in my mind, and I realize why Mr. Atta said that he’s going to produce 1500 PhDs in one year. Just imagine, you’re getting technology per kilograms, i.e. laptop, Rs.2000/kg, Hard Disk Rs.60/kg. Now, who the hell can stop you being the leader of IT industry!

Well, I’m not well aware of the policy of Dr Saheb, since we’ve not been briefed about it anywhere in the past and there are no such chances in future as well. Mr. Atta alone cannot be blamed for the whole situation as all this works in a system. And that system comprises of economic policies and social action programs along with planning in educational concerns.

Being specific where to the computer related parts, which are, being sold per kilogram is something of utmost importance with reference to Economy, IT Sector, and of course the ultimate effect on society as a whole. Though a large number of people who are living below the poverty line are associated with this business and this is their only living, does it make any sense of planning? Is this the way we’ll create 1500 PhDs a year? Will this practice lead towards any economic and social development?

I personally don’t know the answers of the questions above but too keen to know the facts. Having some understanding of Economic and Educational Planning, I know that if the black markets for all IT products are caught and banned not only a lot of Federal Revenues will increase but the doors for the production of all this stuff will also be possible with in the country.

We’re still not able to make a computer chip of our own! And all this is because of smuggling of products and accessories through neighboring countries. Control over smuggling and the better use of grants in IT sector can lead towards the home manufacturing of hardware reducing the cost of production and hence a real decrease in prices is possible.

Coming to the effect of this alarming situation on Education sector, if prices of technology decrease, the widespread of it is possible, with which masses can be benefited from the technology. Not at a great extent but imagine if it helps a public school to have a single computer, many children can be benefited from it. It can also reduce the cost of Education if planned well, encouraging more and more people to educate their children.

My suggestions can be ignored or rejected by any Ministry mentioned above in the same way as Insha Jee’s educational reforms were. He was asked to develop his own curriculum and syllabus and he ended up with “Urdu Ki Akhri Kitab (The Last Book of Urdu)”. But poor me! I don’t want to write “Technology ki Akhri Kitab (The Last Book of Technology”.

Karachi In the Line of Fire!

Walking on Shahra-e-Faisal early in the morning, while coming back from college, or even just watching the never stopping traffic from the window of my house, it’s always been a great pleasure for me to admire the great Sahara-e-Faisal in one way or other. I don’t know what’s that so much attractive in the Shahra, that made me to fall in love with it. Not only Shahra, but Karachi in its totality is my first love.

Though my origin is not from there, but m’ a Karachiite by soul. I even don’t know the reason for my love, but I must say that the city has the capacity to adjust all sorts of people in it. Karachi is also investor’s love being the economic engine of the country, and unluckily it’s been the love of political parties as well, not to garnish its beauty but to scratch its image for their personal benefits.

I’m not in the city now, but my love is still same, I still remember the free home delivery of Student’s Biryani, I still remember Sind High Court building where I been with my father, I still remember the traffic jam at M.A Jinnah road whenever going to buy a bundle of books from Urdu Bazar, and above all the Sea View which in fact I miss. While recalling my memories, I always found a peace and a sort of comfort for my soul, but what? It just made me to cry while watching my city today on television.

My people dying! My city in the flames! What’s all that? Where do we stand? What we’re doing? Who’s getting benefited from all this, one who was the only hope of his family, one who’s children are waiting outside the ICU, one who’s instructing from the distant continent, one who’s stuck with the chair or one who’s collecting the sympathies for the justice? It really made me perplexed…! My city does need sacrifices, but not in the way it happened today. Sacrifice is what brings peace of mind and soul, does all this bring such? Is this the way we’ll find peace? No, not at all!

I know my voice cannot access each and every citizen, but if some of them can have it, that may make a difference. At this moment we need to realize who we are, what we’re doing presently and what we ought to do. Ruining the peace of the city, destroying public property, killing the innocents, and deploying the beauty of the city is not the way out of our political problems. These issues need to be addressed on rational grounds, on the basis of equality and equity, and for the cause of societal benefit.

We need the institutionalization of society, and justice to be placed at the top while formulating any strategy for us. We need coordination, integrity, mutual understanding, and collective efforts for the outgrowth of the national moral. And that’s what I hope, can bring the beauty of my city back which’s the face of Pakistan.

Lean Manufacturing and the Outgrowth of Production Concern

Being a research student, Economic issues have always gimmicked my attention. Though not very professional, but I’m at least an Economist in Equilibrium. The issue which recently caught my attention is the ‘reduced cost of production’. I just explored the Lean Manufacturing Consulting and found a new way out for the industrialists. The new innovative methods to make the best use of the key resources can not only reduce the cost of production but also reduces the wastage.

The concept of Lean Manufacturing actually works on the principles of pull processing, perfect first time quality, waste minimization, continuous improvement and flexibility. The concept actually dates back from the times of Benjamin Franklin. It also showed the outgrowth of multinationals and other developed corporations of the world. Toyota is the living example of such. Having so much successful experiences the concept of lean manufacturing strongly demands to be applied in small scale businesses as well, where by the firms face a basic problem of increased cost of production.

The effectiveness of the concept in the developed establishments, have made me to ponder why not to have such methods of productions be the part of our industrial production. This will no doubt enhance the performance of the industrial units, and the economy will ride on the strong horse of GDP.