Essay --

The use of a necklace to adorn oneself piece of ass be traced back with the ages, despite having a sole purpose to be aesthetically pleasing and to enhance an outfit, they have been used to demonstrate our individuality and to show individuals expression of non-conformism in an attempt to pick up oneself from society (Menninghaus, W. in Robert, K. 2011). Necklaces have been used as complex visual decorations to convey various meanings cultural, social status to dictate wealth to others, it was even dominion at one stage for wealthy ladies to wear more than one necklace at any single time to signify her wealth and class (McCarthy, M). They stick out be worn to confirm love and loyalty, and in the case of lockets even store our most treasured mementos, such(prenominal) as photographs and locks of hair. For example, in the Zulu tribe, girls often communicated their feelings to boys through jewellery making they would thoughtfully and delicately make the jewellery, choosing motifs w ith great care to subtly convey their feelings. (Vanhaeren, M. 2009). By studying jewellery not only can we identify peoples personal tastes, but we can travel back through the ages, especially by studying the materials in which they are made. The early known necklaces were discovered to be made from teeth, bones and such materials that were readily available (Gere, C and Rudoe, J. 2010), today however, the variations are never ending, made from varying materials, such semi-precious stones to gold and silver to more affordable materials, such as plastic and glass beads with a vast amount of designs, from simple and sophisticated to down and over the top. Jewellery can be passed down through family generations, or given as a gift to a loved one. Necklaces have a hig... ...o bring luck and good fortune for the rest of the month. However, they have not always been viewed as lucky creatures, for example, in the nineteenth century fishermen would refuse to emit the word while out at sea. Whilst in Devon to see a white rabbit would indicate a forthcoming death in a person that was currently ill (Russell, H. (1925). Through the Celtic tribes it was noted that it was taboo to eat rabbit meat, quoting to do so was like eating ones own grandmother (Ezpeleta, A. 1996) this shows us the importance of rabbits and how highly they were regarded throughout history, whilst elsewhere it was considered that eating rabbit meat would cause beauty and vitality. The Celtics also believed that rabbits burrowed underground in order to communicate with the spirit world, and that they could carry messages from the living to the dead. (Ezpeleta, A. 1996).

Fight Club - Conformity vs Rebellion Essay -- Fight Club David Fincher

Fight unite - Conformity vs Rebellion The conflict between conformity and rebellion has always been a struggle in our society. Fight Club is a movie that depicts just that. The movie portrays the polarity between traditionalism and an anti-social revolt. It is the story of man who is subconsciously fed up with the materialism and humdrum of daily life and thereafter creates a new persona inside his mind to contrast and counteract his repetitive lifestyle.The main character is actually unnamed, but sometimes is referred to as Jack, which comes from a medical book he reads in the Tylers house perhaps. He is the normal, everyday, worker bee that carries on his overly boring life day in and day unwrap because he is the normal conformist that society tells us to be. Jack is the everyday common workingman to which the audience can sympathize with and contact to. His character portrays the struggles and longevity of the American dream. He is constantly rating his life and his lifest yle by his furniture. The designer furniture that he orders proscribed of mail catalogues defines his record and self worth. This is due to the fact that he is constantly trying to improve and complete his lifestyle by buying certain pieces of furniture to create a modern but still simple and traditional household. His house is beyond perfection but yet he still tries to further its flawlessness, which relates to his dream of the typical American. But as he constantly tries to improve himself with his furniture and work habits to define his personality, he actually fails miserably and does quite the opposite. When Jack buys his furniture he destroys every attempt that he has made to improve himself. He only falls deeper into the hole that he digs himself. Every piece of furniture that he buys, he loses another part of his identity. Jacks conformity follows him to work as he becomes a doormat. His socialization is confined to the limits of his cubicle with the only ejection being when he is on business trips. During flights he develops relationships with the passengers around him. This is not done out of a real honesty for a conversation, but out of a need to fill a void, a loneliness, a lack of self-worth. His life is full of single serving friends, car crashes, and wishes of an eventful death because the monotony of his life gives him strict boundaries to live by. His... ...rkingman, as Tyler is the man everyone wants to be. Fight Club shows a man that everyone wants to be but cant because of laws and in most cases common courtesy. The movie states that there is basically a Tyler in all of us, wanting and waiting to come out. None of us will let him out though because we dont have the courage, or maybe stupidity to do it, although Jack does. For a while in the movie Jack did complicate everything he wanted. He had no care in the world and couldnt have felt better about himself as a whole. Not until subsequently does the final message come in, without an y control there is chaos. When Tyler ran rampant and did what he pleased things began to get out of hand. For instance his final act of defiance towards society was the blowing up of credit card companies in order to erase the debt record so that everyones debt would go back to zero. This is only to create be chaos and embody Tylers world without rules. Tyler sums up the movie in his own terms, You are not your job. You are not how much you have in the bank. You are not the contents of your wallet. You are not your khakis. You are not a beautiful and unique snowflake. The things you own end up owning you.

Sir Rich Arkwright and the Water Frame Invention :: Biography Biographies Essays

Sir Rich Arkwright and the Water Frame Invention Sir Rich Arkwright was born on celestial latitude 23, 1732 at Preston in thecounty of Lancaster. His first profession was a barber in Bolron-le-moorsin 1760. Soon afterward he traveled throught the country buying valet de chambre hair. At that time he had a valuable chemical secret for dying the hair to makewigs out of. Arkwrights hair was commented to be the finest hair in thecountry. In 1761, Richard Arkwright married Margaret Biggins, and this marriagebrought him to an aquaitance with Thomas Highs. Highs was probably one ofthe most important people Arkwright was to ever meet. He was the inventorof the whirl jenny and the urine frame. Highs was behind the mechanicalproduction of both of these machines, however he could now market hisproduct due to lack of neckclothing and ill communication skills. This is whereRichard Arkwright comes in. Arkwright was extremely skilled in dealing withbusiness and other social asp ects. Arkwright sought to obtain the water frame by less than friendly means.He contacted bathroom Kay, a former employee of Highs, to turn brass for him. This was all part of a clever plot to get Kay to reveal the design ofHighs water frame. Eventually, Arkwright succeded and Kay cunstructed a reproduction of the water frame, or otherwise known as throstle. Arkwright showed off the model to several people to seek financial aid.He eventually prevailed on Mr. Smalley to fund the project. In April of 1768 he hired Kay and took him along with him to Nottinghamwhere he built a factory turned by horses. On July 3, 1769, he obtained apatent for spinning by rollers. By doing this, he solidified his holdover the water frame preventing Highs from ever gaining the immense profitsmade by the water frame. In 1771, Arkwright built another factory in Cromford. The power forthis factory was supplied by a water wheel instead of horses. During thistime many improvements were made t o sign up the process of spinning wool.Arkwright kept an eye on these improvements and eventually made a machinecombining many of them into a series. These engines, as he called them,were adequacy to take up another pattent on December 16, 1775. Improvementsspecified in the pattent were not invented by Arkwright but were actually

Zeno of Elea :: essays research papers

Zeno of EleaZeno of Elea was born in Elea, Italy, in 490 B.C. He died there in 430B.C., in an attempt to oust the citys tyrant. He was a mention pupil ofParmenides, from whom he learned most of his doctrines and political ideas. Hebelieved that what exists is one, permanent, and unchanging. Zeno arguedagainst multiplicity and motion. He did so by showing the contradictions thatresult from assuming that they were real. His lean against multiplicitystated that if the many exists, it must be both infinitely large and infinitelysmall, and it must be both limited and unlimited in number. His argumentagainst motion is characterized by two famous illustrations the flying arrow,and the runner in the race. It is the illustration with the runner that isassociated the first part of the assignment. In this illustration, Zeno arguedthat a runner mess never reach the end of a race course. He stated that therunner first completes half of the race course, and then half of the remainingdistance, and result continue to do so for infinity. In this way, the runner cannever reach the end of the course, as it would be infinitely long, much as thesemester would be infinitely long if we completed half, and then half theremainder, ad infinitum. This interval will shrink infinitely, but never quitedisappear. This type of argument may be called the antinonomy of infinitedivisibilty, and was part of the dialectic which Zeno invented.These are only a small part of Zenos arguments, however. He is believedto have devised at least forty arguments, ogdoad of which have survived until thepresent. While these arguments seems simple, they have managed to raise anumber of profound philosophical and scientific questions about space, time, andinfinity, throughout history. These issues still interest philosophers andscientists today.The problem with both Zenos argument and yours is that neither of you dealwith adding the infinite. Your argument suggests that if one adds the infinite,the sum w ill be infinity, which is not the case.

The Day Ethan Frome Lost Control of His Life :: Ethan Frome Essays

The Day Ethan Frome Lost Control of His Life I believe Ethan Frome lost ascendence of his life when his develop died. After his mothers funeral, Ethan did not ask to be left alone on the farm, so he asked Zeena to stay with him. At first, Ethan enjoys her company. However, Zeena soon becomes a nuisance to Ethan, and prevents him from becoming an engineer in a large city. After being married a year, Zeena becomes sick herself, and the only time she talks to Ethan is to complain or show her discontent. After Mattie comes to the farm, Ethan does not lovemaking Zeena at all. He thinks the only pleasure she has left is to inflict pain on him. Since Zeena is a burden on Ethan, he naturally wants to improve his life. The drive he does not have control of his life is because he is married to Zeena, and he is not brave enough to go away with Mattie. The reason he is married to Zeena is because his mother died. Since Zeena is why Ethan does not have control of his life, and Ethan married her because his mother died, the point in time when Ethan lost control of his life is when his mother died. I believe Ethan could have changed the direction of his life if he had gone away from the farm to marry Mattie. The reason he did not have control of his life was because he was married to Zeena. If he would have married Mattie and left Zeena, he would not have been in the sled accident, and consequently, he would have lived a much happier life with Mattie. The second way Ethan could have changed the direction of his life is if he

The Day Ethan Frome Lost Control of His Life :: Ethan Frome Essays

The Day Ethan Frome Lost Control of His Life I believe Ethan Frome lost control of his intent when his mother died. After his mothers funeral, Ethan did non want to be left alone on the farm, so he asked Zeena to stay with him. At first, Ethan enjoys her company. However, Zeena soon becomes a nuisance to Ethan, and prevents him from becoming an engineer in a large city. After being married a year, Zeena becomes sick herself, and the only time she talks to Ethan is to complain or show her discontent. After Mattie comes to the farm, Ethan does not love Zeena at all. He thinks the only pleasure she has left is to inflict pain on him. Since Zeena is a burden on Ethan, he naturally wants to remediate his life. The contend he does not dupe control of his life is because he is married to Zeena, and he is not brave enough to go away with Mattie. The reason he is married to Zeena is because his mother died. Since Zeena is why Ethan does not rush control of his life, and Et han married her because his mother died, the point in time when Ethan lost control of his life is when his mother died. I believe Ethan could have changed the direction of his life if he had gone away from the farm to marry Mattie. The reason he did not have control of his life was because he was married to Zeena. If he would have married Mattie and left Zeena, he would not have been in the sled accident, and consequently, he would have lived a much happier life with Mattie. The second way Ethan could have changed the direction of his life is if he

Landscape in “The Love Song of J. Alfred Prufrock” by T. S. Eliot

Landscape in The Love Song of J. Alfred Prufrock by T. S. Eliot Although the full meaning within T. S. Eliots dense poetry The Love Song of J. Alfred Prufrock proves unenviable to grasp, the deep meaning packed into every word makes the pursuit to understanding this rime a never-ending adventure. Scenery in The Love Song of J. Alfred Prufrock re give ways an intensely mental account which should never, in any instance, by taken liter tout ensembley.The loss of time, the confusion of past, present and approaching tenses, the static movement, and the eternal metaphor of the question produces this psychological scenery which in turn amplifies the intensity of the poem. Time in Love Song of J. Alfred Prufrock plays a very important part in creating the landscape of the briny characters narration. The overwhelming sense of being caught in time begins within the number 1 three lines after the epigraph Let us go then, you and I,/When the change surface is spread out against the sky/ Like a patient etherized upon a table.Just like a patient anesthetized by ether, the narrator appears trapped in a distance of vulnerability at the mercy of others without the foundation of time. Also, the association of the sky with an object as non-moving as a stone evokes a space in which the sky or the atmosphere has no movement the loss of physical time. Time, in the case of the poem, appears endless (And indeed there will be time. pg. 4) as consequence to the narrators psychological state of stuckness and the sense of time be dumbfounds warped in confusion and solitude.J. Alfred Prufrocks isolation too represents a loss of time within the poem. The repetition of And indeed there will be timeThere will be time, there will be timeAnd indeed there will be time alludes, once again, to a landscape without time. Also phrases such as In the room the women come and go/ talk of the town of Michelangelo use repetition for the purposes of emphasizing Prufrocks monotonous existence a nd solitude without an attempt of improvement. . In addition, J.Hillis Miller explains Like the women talking of Michelangelo, he exists in an eternal present, a frozen time in which everything that might possibly expire to him is as if it had already happened For I devote known them all already, known them all (CP, 4). In this time of endless repetition Prufrock bearnot disturb the universe even if he should presume to try to do so. Everything that might happen is foreknown, and in a world where only one read/write head exists the foreknown has in effect already happened and no action is possible.Prufrocks observation but miss of contribution emphasizes his state of solitude, and his consistent lack of contribution throughout the remainder of the poem demonstrates the impaired movement in the poem Similarly, the confusion of tense also demonstrates a landscape without the existence of time. Confusion of tenses in The Love Song of J. Alfred Prufrock substantiates the feeling of immaterial space such as whenThe yellow fog that rubs its gage upon the window-panes 1 The yellow smoke that rubs its muzzle on the window-panes Licked its tongue into the corners of the evening Lingered upon the pools that stand in drains, 4 Let fall upon its back the lampblack that falls from chimneys, Slipped by the terrace, made a sudden leap, And seeing that it was a soft October night Curled once about the house, and fell asleep. 4) 8 The first two lines describe the fog in present tense, but the third in past tense. In the fourth line, Prufrock begins with past tense (Lingered upon the pools) and continues in present tense (that stand in the drains). The fifth line makes the same change in tenses and the remainder of the stanza continues in past tense. Space, explains J. Hillis Miller, must be exterior to the egotism if movement through it is to be more than the following of a tedious argument in the mind.In the same way only an objective time can be other than the self, so that the flow of time can mean change for that self, therefore time has only a subjective existence for J. Alfred Prufrock. Subsequently, past, present, and future exist in the immediate moment. Static movement in The Love Song of J. Alfred Prufrock plays an important role in emphasizing the state of the poems landscape. Essentially, J. Alfred Prufrock admits to knowing the lack of movement when In a minute there is time/ For decisions and revisions which a minute will reverse.The narrators message that no matter what he does, there will never by change emphasizes a desperation to move which the characters subconscious inhibits by habit and indecision. Monotony due to proclivity when For I have known them all already, known them all/Have known the evenings, mornings, afternoons, / I have measurable my life with coffee spoons demonstrates invariability in the narrators mind because all he points out having done exists in the mind known the everyday routine, and mea sured every moment of his life in his mind.In addition to the narrators self-assessed lack of movement, Prufrocks narration places him in a less-than- human position when he says, I should have been a pair of ragged claws/ Scuttling across the floors of silent seas. That Prufrock compares his monotonous existence as being equal to that of a crab in the privacy and stillness of the ocean floor directly demonstrates his deadlocked existence.The continuance of the nonreciprocal question also demonstrates mental deadlock because although the overwhelming question crops up septuple times throughout the poem, the narrator does not or cannot explain the question, nor does an answer arise. The lack of progress demonstrates an eternal present in The Love Song of J. Alfred Prufrock. In addition to the endless time in The Love Song of J.Alfred Prufrock the metaphor of the question symbolizes the barrier between Prufrocks mind and the outside world. The actual unanswered question throughout the story may demonstrate a lack of movement, but it extends much farther than a question. All that is mis parley and incommunicable acts as an extension to the consequence of the question. Throughout the poem, Prufrocks struggle to communicate with both the characters in his mind and the reader demonstrates his self-acknowledged impotence.The inability to communicate when Prufrock says, In the room the women come and go/ Talking of Michelangelo(4) demonstrates the barrier between Prufrock and society because Prufrock never approaches the characters of which he speaks, he only watches from an unknown distance in an unknown location. Although Prufrock does not approach these figures of society, the moments there is communication demonstrates social flaw. J.Hillis Miller explains that Prufrocks vision is incommunicable, and whatever he says to the chick will be answered by, That is not what I meant at all. /That is not it, at all. The lady is also imprisoned in her own sphere, and t he two spheres can never, like soap bubbles, become one. Each is impenetrable to the other. The last five stanzas of the poem show a change in scenery which seems to switch to the seaside and then into the chambers of the sea which restores his original wish to have been a savage of the sea.This scene also demonstrates the consequences of attempted communication between the outside world and the narrator when We have lingered in the chambers of the sea/ By sea-girls wreathed with seaweed red and browned/ Till human voices wake us, and we drown. This passage, especially the end line, displays the effect of outside vitiation on Prufrocks mental state. The result of drowning as consequence to the human voices isolates the bubble that is the narrators existence from the outside world which, once penetrated, can no longer function. The Love Song of J. Alfred Prufrock captures the landscape inside the mind of the narrator through many subtle and abstract ways. The intense meaning of the poem captured through the mind of the character uses the loss of time, the confusion of past, present and future tenses, the static movement, and the eternal metaphor of the question in order to produce an intensely psychological landscape. The obvious amount of thought and effort embedded in the language of the Love Song of J. Alfred Prufrock demonstrates the great meaning seen within Eliots poetry.

Educational In Cambodia Essay

Education is very important means to train and build up humans resources for development of each country and it is also important for development of child as person. However, educational system in Cambodia has suffered too much during Khmer Rouge governing from 1975 to 1979. After that period, the government has tried to improve it by cooperated and collaborated with external aid and non-governmental organization (NGOs). According to the Cambodian constitution, it states that the state shall provide free primary and alternate education to all citizens in public school. Citizens shall receive education for at least seven eld. Nowadays, though the pupils have no pay the fee, they appease have to spend money on other things such as stationery, textbooks, contribution fee etc. Moreover, some provinces students are asked to spent money to instructor for fee this is the problem that prevent pupil from poor families from attending school.About a half a million Cambodian children from 6 to 11 years old have no access to school, then 50percent of those who entered grade one dropped out of school and had to repeat the class. Those problems are caused by video games, karaoke and the presence of brothel for the students in city, and for female pupils, they could not attend school because of many problems. First, parents are poor, so they cannot provide children to learn and sometime they need their children, especially the girls, to earn money to support the family. Second, the schools are located too far away from their house. Only boy can go to school at some distance from hearth because they have given accommodation in pagodas near the school. The last one is some parents do not understand about the important of education, so they do not allow their children to attend school.Moreover, the ministry of education has not provided adequate education for minority children. Many children cannot access to school, and there is no provision for schooling in minority langu ages except for classes provided by private ethic associations. Even though some organizations co-operated with government to provide school for those, this effort is not yet enough. Then, the forest of education in Cambodia is very poor, especially in remote area such as Kompongthom, Kompongcham, Ratanakiri province and so on.

Pros and Cons Essay

Globalization can be defined as the increasing flow of products, plurality, money, and ideas across the globe. National economies are being swept into the global delivery. 1 can thus think of globalization as rushing through four channels scantyr trade goods Freer mobility of labor Freer investment and Freer communication, thanks to telecommunications and the Internet. Pros and Cons 1. Capitalism Free enterprise is now the dominant economic system in the world. China is very much capitalist and her late Communist Party leader Deng Xiaoping coined the slogan, To appropriate rich is glorious. Only Cuba and North Korea are holding on to the central planning system of running the economy. Capitalism brings along impeccant trade and the free flow of money across the earth. Countries belonging to the World Trade Organization are trying to bring down tariff barriers. Today, immense portfolio investments zip in and out of countries at the click of a mouse (Baylis & Smith, 2001). Wi th free trade comes economic integration. It is possible to download an album of songs in the United States of America, turn it into CDs in Europe, print the cover and lyric sheet in France, and sell it in Asia.The greatest story of economic integration is the European Union, with its common currency, the euro (Brecher & Costello, 2004). 2. Information economy Another driving force is the knowledge economy. Land, labor and capital are bowing in importance to brain creativity. In the United Kingdom, over a three-year span, manual jobs dropped by 750,000, while professional jobs shot up by 1. 5 million (Brecher & Costello, 2004). 3. Mass Media The invention of the printing press helped scattered people become a national community. In the same way, the evening news is nurturing worlds community.The suffering in India and Indonesia are brought home through CNN. 4. Telecoms on that point is a global boom in telecommunications. A fourth of all Europeans, have mobile phones. The people in Finland gave the greatest access to cell phones at 417 for every 1,000 people (Brecher & Costello, 2004).Reference 1. Baylis, John, and Smith, Steve, eds. The Globalization of World Politics. 2nd ed. , 2001. Oxford Oxford University Press. 2. Brecher, Jeremy, and Costello, Tim. Global Village or Global Pillage Economic Reconstruction from the Bottom Up. Boston, MA South End Press, 2004. Radical critique of recent patterns of economic globalization.

Introduction for OJT Essay

1. To pursue venerable career in a professional organization change achieving companys objectives of development, customer pleasure and service.2. Together with assets for instance sincerity, truthfulness and struggle for excellence, add value and strength to the company, to empower the student or the team where he is a fraction of.3. In quest of a position in a top business where the OJT is able to transmit the knowledge gained done bachelors degree. Determinedly deem in the principle of implementing duties with loyalty and courage.4. To grow capably by giving skills to the association and vice versa. 5. To work in a demanding environment where skills and efforts is explored and familiarized the varied OJT fields, and understand potentials and add to the growth of the organization with inspiring performance.6. To utilize knowledge and skills for the implementation of organizational goals.PHILOSOPHY It is the polity of the State to establish, develop, push and perfect a sound an d executable tax-exempt social tribute system suitable to the needs of the people throughout the Philippines which shall promote social justice and provide meaningful protection to members and their families against the hazards of disability, sickness, maternity, old age, death and other contingencies resulting in loss of income or financial burden. Toward this end, the State shall endeavor to comport social security protection to workers and their beneficiaries. (Section 2, RA 8282)VISSIONThe SSS aims to develop and promote a viable, universal and equitable social security protection scheme through world-class service. Viable. Social security protection shall be provided through generations. Universal. Social security protection shall be provided to all residents of the Philippines, citizens and non-citizens alike, regardless of creed, gender, age, geographic location and economical status, especially the disadvantaged, so that no one will become a burden to society. Equitable. Fair and uniform coverage shall be made available to all. Benefits shall be meaningful and able to sustain a decent standard of living. World-class service. Social security service that is prompt, accurate and courteous shall be provided to ensure original member satisfaction.MISSIONTo provide meaningful protection to the members and their families against contingencies resulting in the loss of income and financial burden and to contribute to the socio-economic development of the country through a viable social insurance programme.VALUESThe SSS aims to institutionalize a corporate culture that instills the core values of Trust, Empowerment and Teamwork.On January 26, 1948, Pres. Manuel A. Roxas proposed a bill quest to establish a social security system for wage earners and low-salaried employees. This was recommended to Congress in his State of the Nation Address. After the death of President Roxas, Pres. Elpidio Quirino created the Social certification Study Commission on Jul y 7, 1948. The creation of the Commission was his first official act upon his assumption to office. Based on the report of the Study Commission, a conscription of the Social Security Act was submitted to Congress. In 1954, Rep. Floro Crisologo, Senators Cipriano Primicias and Manuel Briones introduced bills based on the report of the Social Security Study Commission in the House of Representatives and in the Senate.These bills were unite and enacted into Republic Act (RA) 1161, better known as the Social Security Act of 1954. However, business and labor groups objected to the Social Security Act resulting in a deferment of its implementation. In 1957, amendatory bills were presented in Congress. These bills were the bases of RA 1792, which amended the original Social Security Act. On September 1, 1957, the Social Security Act of 1954 or the Social Security Law (SS Law) was finally implemented, marking a significant milestone in the social security program. Thus, with the implement ation of the SS law, the government also choose the social insurance approach to social security, covering the employed segment of the labor force in the private sphere of influence. In 1993, household helpers earning at least P1,000 were included in the compulsory coverage of employees.In 1980, some groups of self-employed persons were also required to contribute to the social security fund from which benefits are compensable upon the occurrence of a contingency provided by law. Self-employed farmers and fisher folks were included in the program in 1992, while workers in the informal sector earning at least P 1,000 a month such as ambulant vendors and watch-your-car boys, were covered in 1995. The Social Security System (SSS) administers social security protection to workers in the private sector. On the other hand, the Government dish out Insurance System (GSIS) takes care of workers in the public sector.The SSS administers two programs viz. 1. The Social Security Program and 2. The Employees Compensation Program (EC) Social Security provides replacement income for workers in times of death, disability, sickness, maternity and old age. On May 1, 1997, Pres. Fidel V. Ramos gestural RA 8282, further strengthening the SSS. Also known as the Social Security Act of 1997, it amended RA 1161, providing for better benefit packages, expansion of coverage, tractability of investments, stiffer penalties for violators of the law, condonation of penalties of delinquent employers and the establishment of a voluntary provident fund for members.The EC program, started in 1975, provides double compensation effective June 1984 to the worker when the illness, death, or accident occurs during work-related activities. EC benefits are granted only to members with employers. SSS used to administer the Medicare program for hospitalization and other medical needs of the private sector workers and the Government Service Insurance System (GSIS), for the public sector workers.How ever, with the passage of Republic Act 7875 or the National Health Insurance Act of 1995, the SSS and GSIS transferred the administration of the Medicare program to the Philippine Health Insurance Corporation (PhilHealth) for an integrated and comprehensive approach to health development effective July 1999. SSS retirement, death, and total disability pensioners prior to the potency of RA 7875 on March 4, 1995 are entitled to hospitalization benefits under Phil-Health. Pensioners upon the effectivity of RA 7875 on March 4, 1995 and thereafter are no longitudinal covered except when they meet the qualification requirements set by PhilHealth.

Contemporary Managment – Vodafone

Linking the HRS objectives with the business strategy demonstrates the fast paced nature of the industry and the relationship between human capital and strategy. Issues in Commission and Bonuses ( Rewards Benefits) Paul Cheroots HRS Director of Avoidance commented that Avoidance saw flexible working hours, part time and home working as an imperative expression of labor requirements for lag. He acknowledged that they would also subdued be looking for commitment and productivity likewise. Policies that were promoting flexible working and reasonable work life balances employ to be nice to have, now they are a must.Its become a core demand from candidates. Carination (2005) According to CHIP such working patterns are still in high demand today. Training is performed a TA residential Recommendations for the HARM issues that Avoidance face Using something other than redundancy to save capital clear impact on motivation and morale. Suggest other ways. Accommodating for changes in Ext ernal Environment with in the workforce such as the privation for flexible working. Get stats from IONS Avoidance have 8 Losing the staff to better paid industries such as banking and estate agency.Good sales people or very much required in Re Specialist agencies for each sector of business Recruiting in a Recession http//www. Personality. Com/articles/2009/01116/4901 Wrecking-in-a- recession. HTML Module phone retailer boatmen NAS 1 K employees Dates at Its nonstarters in Newbury, Berkshire, a egress of regional contact centers, and about 350 retail stores. It recruits about 3,000 staff into new positions each year 2,000 from foreign candidates, and 1,000 intern all in ally. The disciplines covered include customer services, retail, technology, marketing, finance and HRS.The economic climate means that looking for value for money is more crucial than ever in all areas of business, but resounding operations manager Anna Tompkins says that establishing best-value, cutting-edge quality enlisting processes has always been essential in this competitive market. We are always looking at ways to be more effective in how we recruit, she says. We have to be focused and deliver what is needed to support the business strategy. This may mean delivering things in a different way to before.Avoidance partners with three firms for recruitment process outsourcing, each of which manages a different aspect of its recruitment process. Alexander Mann Solutions manages specialist and head righteousness roles Adduce handles retail adviser roles and Reed manages recruiting customer service advisers. All have been working with Avoidance for the past four years. This has improved the effectiveness of Avoidances recruitment systems, says Tompkins, and the company has an ongoing improvement programmer designed to encourage partners to deliver the best possible experience for the candidate during the process.Working with resounding partners helps us take old-hat of what opportunit ies there are to do things more efficiently, she says. For instance, each partner provides regular activity information and suggests improvements to the process and experience. Last year, we found we were running a number of assessment centers for roles where we felt this was not the most appropriate approach. By developing and implementing interview skills training for line managers, we were able to give them more confidence to insert in the right type of assessment at the right time.It also helped streamline our approach and improve the candidate experience. The company is also using arousal from external recruitment specialists to help improve the experience of candidates applying for Jobs, and to hone the recruitment skills of line managers. We are careful not to expect line managers to accommodate similarly many changes at once and we plan our calendar of improvements around what the business is doing overall, says Tompkins. She believes that while the perspective of extern al specialists is useful, any findings should be fed back to staff if they are to have an impact.For example, nine managers were involved at every stage in a recent initiative to improve their interview skills, and their views and expectations were built into the process. At Avoidance we are committed to helping you perform at your best and realism your full potential. Join us and youll benefit from regular development reviews to empathize your goals, strengths and development areas. You will work with your manager to create your own Personal Development Plan. You will have access to a range of learning experiences including on-the Job experience, Job rotation, coaching, mentoring as well as online and face to face learning programmed.

Invisible Hand Essay

The in palpable bowl over indicates situations that individuals pursuing their own self-interest leads to the social interest. It is all rough free- food marketplace principles in operation and how they create desired results. The camouflaged hand reduces to a laissez-faire philosophy that sees government intervention into the markets as a real problem. The market mechanism of supply and demand communicates the wants of consumers to business and through business to resource suppliers. Competition forces business and resource suppliers to make appropriate responses.According to the invisible hand theory, each of us, acting in our own self-interests, generates a demand for goods and services that compels others to deliver those goods and services in the most efficient manner so that they may be able to receive compensation from others and make a profit in doing so. In this process, the invisible hand could be benevolent in the market because resources argon allocated in the most e fficient manner, in contrast to a process that relies on a centrally planned system.The invisible hand puts much resources into producing goods for which there is a shortage, as evidenced by high profit margins, at the expense of goods for which there is a surplus, as evidenced by petty(a) or negative profit margins. And the invisible hand keeps doing these adjustments continuously without anyone planning or ordering that society should produce more of what if needs and less of what it doesnt need. In other words, the invisible hand represents all the social good incidentally caused by individuals pursuing their own self-interest.And it is true, the social benefits of the invisible hand are clearly seen in many cases. Firms are price takers in the market. So many firms that no one firm can influence price. It is also self-colored product, rationality of all market actors and free entry and exit. A businessman who wants to become a millionaire must first come up with a product tha t is beneficial, pleasing and desired by thousand of customers. By pursuing his own greed, the millionaire also benefits society.The basic problem with the invisible hand of the market is that it is a metaphor, not a concept or principles only simpletons refer to it as such. In practice, it is still too invisible, so governments are tempted to make it more visible through political interventions. It is clear wherefore Smith says that moral norms are necessary for such a system to work in order for commuting to proceed, contracts must be enforceable, people must have good access to information about the products nd service available, and the rule of law must hold.Therefore, an invisible hand process is one in which the outcome to be explained is produced in a decentralized way, with no explicit agreements between the acting agents. The second innate component is that the process is not intentional. The agents aims are not coordinated nor identical with the acgual outcome, which is a byproduct of those aims. The process should work even without the agents having any knowledge of it. This why the process is called invisible.

How to Successfully Expand your Business into the Africa

Import and merchandise figures atomic number 18 also substantively elevateder for emergent marts and developing economies comp ared to advanced economies. Looking at these projections as an business or poseor should have you seriously considering expanding your business or portfolio into these neighbourhoods and tap into these revenue. Introduction Today piece is becoming less(prenominal) and less defined by its boundaries, the words Global Village and used to consultation this evolution. Business is at the fore front of breaking these boarders.Technological advances in communication especially via the World spacious Web have broken down the barriers enabling a business in America to merchandise rodents in a consumer in China, England, Brazil, Kenya. Anywhere the internet is present can now be include in a businesss target market. Not only can businesses sell goods and services anywhere in the world, the can also have operation there and be able to communicate and collabo rate with colleagues and former(a) firearmners more efficiently and affordable than even forrader. Given these facts then why do businesses choice to do trade with virtuoso country over another and not both or as some(prenominal) an(prenominal) as possible?We the simple answer to this question is that there numerous other barriers to read with overseas countries that will make it hard or even impossible for contradictory business to expand into those regions. African countries have been one of those that umteen businesses in developed countries have refrained from doing business with. And in their defense its not without merit. Despite African being blessed with an abundance of natural resources, it has been plagues with wars, and political instability leading to noble levels of poverty, lack of education and poor infrastructure.However over the last both decades, many of these countries have made strides in utter there economies, and have registered high frugal appendag e during this period. However even with these changes, not many foreign business have taken note of these region as potentially significant part of the market. Even with slow economic harvesting rates among developed countries. Africa is poised to be the next fully grown market, especially as things slowly wind down in Asia notably China. The purpose of this project is to prove a successful strategy for American Businesses to expand into the African Market Is this a useful market?The African economy has seen a significant economic ripening of the past two cascades. The economic suppuration rate is two to three times that of developed countries and still significantly high than that of other emerging economies like Asia and Latin America. The middle class has shown a sharp rise over the last decade, summit the amount of people with discretionary income thus driving the economy. This exploitation spike is driven by the growth of the middle class. The middle class growth has happened as Africa makes strides in education, infrastructure, and political stability in many countries.Compared to Just about 10 years ago, a huge economic growth can be noticed. From a similar research project conducted written in 2004 titled The experience of due south African Firms Doing Business in Africa we can see Just how the economy and other factors have changed. In June 2003, the multinational Monetary Fund ( huff) observed that macroeconomic policies in Africa had improved considerably in raw(a) years, although puffiness remained a source of worry in a upshot of countries such as Zombie, Angola, Somalia and Nigeria.In its April World Outlook, the MIFF maintained that the central challenge for Africa remained the establishment of those conditions necessary to achieve the Millennium Development Goals, most notably a sustained reduction in poverty. However, to achieve these conclusions, an overall growth rate of 7% per annum is required. far from reaching that goal, Africans economic growth slowed to 3. 1% in 2002, compared with 4. 3% the previous year. (Games 2004) Fast forward to 2013 that goal of 7% growth is being attained by several African countries.If you look at the in style(p) MIFF data for economic growth in table 1. MIFF 2013 The average growth for many of the African countries, is at 6. 9% in 2013 and raising up to 7. 9 in 2014. The map advertize shows where parts are recording these phenomenal growth rates. A 7% average annual growth rate is too significant to Just be ignored. This growth creates an increased demand for goods and services that normally cannot be visualize by current businesses and government. Deutsche fix give tongue to the number of households with discretionary income would reach cxxx million by 2020 from 85 million now. Cape Argus South Africa 14 Novo. 2013) What industries are most profitable? A developing counties or emerging economies the African market has opportunities for business in every industry. This region is playing catch up with developed countries thus means the opportunities for foreign businesses who have already one it can bring with them experience and expertise to contribute to this growth will turning a profit. sell is one of sub-Sahara Africans hottest sectors, fuelled by expanding populations and fast growe economies.In east Africa, the economies of several nations are growing around 7 portion a year. Real income growth in Africa is averaging 2. 3 percent a year and consumer spend accounts for 60 percent of economic output, the World Bank said in April. Deutsche Bank said the number of households with discretionary income would reach 130 million by 2020 from 85 million now. Thats really good intelligence for shops. periodical crudes Colombo, Sir Lankan 14) Africans tourism growth was faster than the average for emerging economies. More than half of Africans tourists arrived by air.International tourist arrivals in Africa had grown almost fivefold since 19 90 at a rate of 6. 3 percent a year. International tourist arrivals rose from 15 million a year in 1990 to 50 million in 2011. The growth rate in sub-Sahara African tourism arrivals was nearly 8 percent a year between 1990 and 2011. It is estimated that tourism injects more than $30 billion (Rabin) into the continent a year. Airbus said there had been some positive improvements across the egging despite continued impediments to growth. (Cape Times South Africa 1 Novo. 013) What are the barriers? These are Low levels of development and insufficient investment in people as resources Political and fiscal risk. A weak private sector, coupled with a strong government presence in the economy luxuriously dependency on donors and other financial mechanisms for aid and the funding of projects High business costs owing to the lack of basic services, facilities, infrastructure, development, competition and resources Insufficient air and road links Poor leadership and lousy governance Corrupt ion at all levels of governmentHigh costs of finance due to high risk and weak economies Currency fluctuations. (Games 2004) This list of barriers to doing business in Africa are from a decade ago, at present not all of them have been corrected but significant steps have been taken to fix reduce or eliminate them. In Africa, foreign investors beware business is often a family affair. Just ask Wall-Mart , the worlds largest retailer. Daily News Colombo, Sir Lankan 14) Political climate Tunis The eighth annual African Economic Conference concluded today, calling on development and business leaders to turn Africa into a hub of business and development excellence. The conference, Jointly organized each year by the African Development Bank (BFD), the United Nations Economic Commission for Africa (ACE) and the United Nations Development Programmer (UNDO), brought together 500 decision-makers and development practitioners. Daily the Peak Banker 2013) Infrastructure SCALING up infrastructur e investments and adopting modern methods of management have been identified as significant benchmark in releasing potentials in the business sector to contribute immensely to economic growth of the einsteinium African Community (EACH) partner states. (Tanzania Daily News 2013) We rent investment n infrastructure, our roads and ports, (African news service 2013) Countries to parry Why sub-Sahara Africa and not north?Growth will mute in north Africa dues to slow down among oil exporters (miff pop) Sub-Sahara Africa is expected to continue growing at a strong pace during 2013-14, with both resource-rich and lower-income economies benefiting from robust domestic demand (Figure 2. 15). The external environment is the main source of risks to growth, particularly for middle- income and mineral-exporting economies. Given the still-uncertain global environment, countries whose policy buffers are thin and here growth is strong should stress to rebuild fiscal positions without underminin g productive investment. miff pop) The generally strong per- performance is based to a significant extent on ongoing investment in infrastructure and productive capacity, continuing robust consumption, and the energizing of new capacity in extractive sectors. (MFC pop) . In sub-Sahara Africa as a whole, inflation is projected to fall pull ahead to 7 percent in 2013 (miff pop) The frequency of growth takeoffs in low-income countries (Lies) has risen markedly during the past two decades, and these takeoffs have lasted longer than those that took place before the sass.Economic structure has not mattered much in sparking takeoffs-?takeoffs have been achieved by Lies rich in resources and by those oriented toward manufacturing. A striking similarity between recent takeoffs and those before the sass is that they have been associated with higher investment and national saving rates and with stronger export growth, which sets them apart from Lies that were inefficient to take off and conf irms the key role of capital accumulation and trade integration in development.However, recent takeoffs stand out from earlier takeoffs in two important aspects. First, todays yeoman Lies have achieved strong growth without building macroeconomic imbalances-?as reflected in declining inflation, more com- appetite exchange rates, and appreciably lower mankind and external debt accumulation. For resource-rich Lies, this has been due to a much great reliance on foreign direct invest- meet (FED). For other Lies, strong growth was achieved despite lower investment levels than in the previous genera- Zion.Second, recent takeoffs are associated with a faster pace of implementing productivity-enhancing structural reforms and strengthening institutions. For example, these Lies have a lower regulatory burden, stop infrastructure, higher education levels, and greater political stability. Looking for- ward, there remain many challenges to maintaining strong growth performance in todays dynam ic Lies, including the concentration of their growth in only a few sectors and the need to diversify their economies, and ensuring that growth leads to broad- based improvements in living standards.Still, if these countries succeed in preserving their improved policy foundation and maintaining their momentum in structural reform, they seem more likely to stay on course and avoid the reversals in economic fortunes that afflicted many dynamic Lies in the past. miff 97) In particular, the follow- ins have accommodate more important a more competitive exchange rate, deeper export links with other Modes, higher human capital levels, initial levels of income per capita, and overall economic size.Indeed, as global trade and competition increase, greater external competitiveness, export diversification, and productive- itty improvements may raise Lies chances of takeoff relatively more than when the global economy is less integrated. The baseline results suggest that the chances of take- off more than tripled during the sass compared with the period before 1990 (Figure 4. 11). The predicted (miff Pl 10) How can barriers to entry be overcome?He said that in order to kick-start a major investment drive on the continent, these banks should partner with institutions such as the Bank Guest Francine De Development, the Africa Finance Corporation and Cairo-based Brinkman. Pressed on whether he had considered the Industrial Development Corporation and the Development Bank of Southern African, he said these too should be considered for partnering and leveraging with bigger commercial banks. (Cape Times South Africa 1 Novo. 2013) Business on the continent is a relationship, not Just a transaction.If you miss the relationship you will have endless trouble with the transaction. Building relationships in Africa is an important part of doing business, particularly for South Africans who have to work at countering the perception that they are the new colonizers, the bully boys wh o have taken over markets, pushing out local businesses. (Games 2004) Are other countries already doing business in this region successfully? About 80 business people have been apt(p) advice about increasing exports to Africa. The event, held yesterday in Quern, was hosted by Government agency I-J Trade and Investment (KIT).Susann Hutting, of the East Midlands office, said most of the delegates had already traded with Africa and were looking at for ways to increase their sales to the continent. Lots of people were looking for different information about exporting more, she said. (Leister Mercury Novo. ) Which developed countries are doing business here? Asks, who was natural in South Africa, said everyone is keen on Africa, including investment banks in the EX. and North America. They had billions of dollars available to invest on the continent but did not know the regulatory terrain and the pitfalls of coal investment markets.He had been in discussions with many of the internati onal banks. They are all asking Are you Airbus formulating a strategy for Africa? (Cape Times South Africa 1 Novo. 2013) Marriott International, the New York Stock Exchange-listed international hospitality group, is planning to acquire the brands and management business of protean Hotels in South Africa and sub-Sahara Africa. The US group confirmed yesterday that it had signed a letter of intent with Cape Town-based Protean Hospitality Holdings to acquire Protean Hotels brands and its management business.Protean Hotels operates or franchises 116 hotels across three brands with 10 184 rooms in South Africa and six other sub-Sahara African countries. (cape times 2013) How are other business from other foreign countries doing? Natural growth of African-based aviation would see the number of aircraft needed to serve the markets for flights to, from and within the continent upgrade from 618 at the start of 2012 to a projected 1 453 by 2031. It was projected that 122 aircraft of the exi sting 618 would have to be replaced, while 823 would have to be brought on stream. This meant nearly 1 000 new aircraft would be needed in the next 20 years.

Fiscal Decentralization and Economic Growth in Pakistan

pecuniary DECENTRALIZATION AND ECONOMIC GROWTH IN PAKITAN A Thesis Submitted to the Faculty of Institute of Management Sciences, Peshawar In Partial Fulfilment of the Requirements for the Degree of MBA ( pay) (2009-2011) Institute of Management Sciences, Peshawar Chapter 1 Introduction agree to James Edwin Kee, pecuniary decentalisation is the devolvement of certain administrative and monetary powers and functions to the hired gun-national g all overnments.It worrywise room the shifty of responsibility to the dependent governments with concomitant accountability. The extent of pecuniary devolution stooge be mensural in endpoints of the powers of low-level governments to raise taxation or to incur expenditures. pecuniary devolution in the public sector has acquire capacious attention during the subsist two decades for many reasons. The implications of monetary self-reliance on the execution of instrument of sub level government and sparingal exploitation h as been canvas widely both for the developing and the veri give in world.In revolution countries, with the disinteg dimensionn of primevalized form, fiscal federal official officialism emerged and in many developing countries, like India, Brazil and Argentina, fiscal decentralization was debated regarding its heart and souls on economic stabilization. Some studies opinion as, how constantly, suggested that the consanguinity among the two has non been conclusive. financial devolution is reckoned as a key policy tool that ensures economic capacity and good disposal done pecuniary autonomy of the federating units.It drags to the integproportionn of provinces and enhances their participatory role in the economic development of a country. It relieves the central government from compensable attention to the details of monetary matters, in that locationby enabling it to nethertake the tasks at national level in a more eventive and efficient manner. Also, if the centra l government for some reasons becomes inefficient, then devolution can be a possible solution. It accele drifts suppuration and empowers the low-level governments by dint of financial autonomy and administrative empowerment.The devolution t on the wholeys the federating units more responsible as it brings the government closer to the sight. decentralisation policy has a positive effect on economic harvest- sequence as it helps implement social policies in a smash manner. In decentralized set ups, the lower tiers of governments know more ab egress the necessities and developmental needs of the people, which leads to economic faculty in improvement sales talk, at that placeby accelerating the egression rate at national and regional levels. This is to a fault callight-emitting diode the Oats Decentralization Theorem.It says that if the people in one municipality ar not provided with adequate public services, they may opt for shifting to opposite municipalities having mo re facilities. Financial autonomy reduces the wasteful utilization of resources by the central government. According to fowl and Smart (2002), for effective service delivery it is spellant that the recipient of coin has all the way mandate, sufficient resources and powers to energize decisions. Through decentralization, responsibilities as well as resources are devolved to the lower level governments (Rondinelli,1981).In this way , the federating units are empowered which enable them to use the resources to good effect , raise living standard of the people and distri notwithstandinge the piss load (Gordin, 2004). In Pakistans case, the significance of monetary devolution cannot be overemphasized. Pakistan is a federation having a centralized taxation system. The study chunk of tax tax revenue is get togethered by the central government, which is then distri provideded among the provinces to subvert financial disparities. hold 160 of the constitution empowers the presi dent that he shall constitute National Finance Commission later every five years for the dispersal of funds, taxes and opposite monetary assets among the federating units. The decision of the commission is called National Finance Commission Award. The commission is comp deck upd of the finance ministers of the federation and the provinces and such other persons as may be constitute by the president in consultation with the governors of the respective provinces. So far, seven NFC Awards subscribe to been announced, the latest be the 7th NFC Award of 2010.Except for the 1974 Award, there has been a growing tendency in the exile of revenue from the subject matter to the provinces. The 4th NFC Award was a meaning(a) move forward towards fiscal decentralization as it heighten the share of the provinces by 18% and accepted their right over hydel profit, developmental imbue and excise avocation on crude oil. The 7th NFC Award accepted the demands of Baluchistan, KPK, Sindh by d evising a legislation, wherein poverty, inverse universe of discourse density and under development pay also been given due weightage.Moreover, the idyl share has been compound from the previous 47. 5% to 56%. The provinces were also given the powers to turn around sales Tax on their declare. by-line this decision, the Sindh Province has already underinterpreted this task and claims to prolong collected 50% more Sales Tax in the first five months of the financial year compared to the corresponding consummation last year Dawn, Dec 10, 2011. The eighth Financial Award is scheduled to be held on 16th Dec, 2011.Apart from the resource dissemination Through NFC Award, Article 161 of the Constitution provides for exaltation of Royalty on natural resources to the respective provinces in the shape of surcharge on gas and crude oil. This will lead to greater transfer of funds from the effect to the provinces. With the 18th inbuilt amendment, the concurrent list has been abolis hed, and with it entry No. 49 in the 4th Schedule to the Federal legislative list has also been amended. As a result, the GST Services in Federal Excise mode have been assigned to the provinces.Despite the presence of this constitutional mechanism for resource distri only ifion, the smooth allocation of funds was interrupted due to deadlocks among the provinces over the distri stillion formula, and, resultantly, the NFC Award failed to narrow down the vertical and horizontal resource gaps. At the territorial dominion level, The National Reconstruction Bureau launched a decentralization programmed through Government Plan 2000, wherein it was acknowledged that without pecuniary Decentralization no authority is devolved, which gain emphasizes the importance of transfer of funds to the lower tiers of government.The above paragraphs introduce only one side of the picture. There are many studies which suggest that there is no contract relationship among fiscal devolution and economi c fruit and efficiency at the level of sub-national governments. As a matter of particular, there is also a strong case against the Fiscal federalism. It may lead to social inequalities as for instance, incomes and taxes may not be equitably distributed among the various regions of a country. Also, fixed be are associated with running administrations of low-level governments.So, in low-income countries it may not be justified to spend firm amount of the available funds on these expenses (Homme,1995). The relationship of Fiscal devolution and economic growth has been analyze extensively in recent years. So, large volume of literature is available on the topic. Different relationships were examine to establish any clear relationship amid Fiscal devolution and economic growth, but at odds(predicate) results were obtained both for the developed and the developing economies.Some studies have shown positive relationship, others negative and equable others no relationship at all be tween economic growth and fiscal autonomy. For Pakistan, too, studies have yet to find any clear relationship between financial decentralization and economic growth. Important contributions on this subject have been make by Zang and Zou(1998) ,Xie , Zou and Davoodi (1999) , Lin and Liu (2000) , Thieben (2001) , Martinez-Vazquez , McNab(2001) , Felenstine & Iwata (2005) and Kardar (2006) etc.This study identifies strengths and weaknesses of the existing Resource Distribution System (RDS) through historical review. It is chiefly believed that that square-toed information about the existing RDS will lead to better policy formulation, which will ultimately perplex the country on the road to prosperity. In this connection, it is also worthwhile to analyze the implications of the current resource distribution policies on the economic growth of the country. Thus, this study helps underwrite the extent of financial autonomy of the provinces and measures its long term benefits.Rest of th e study is arranged as follows Chapter 2 pertains to Literature review i. e. study conducted antecedently by other researchers on this topic In chapter 3 theoretical background and econometric methodology for our estimation is be debateed chapter 4 discusses sources of our info and construction of proteans chapter 5 covers results and interpretation thereof results and chapter 6 is about the mop up of research. Chapter 2 Literature Review 2. 1 IntroductionIn this chapter, we discuss the empirical studies related to our study i. e. sour done previously by other researchers on this topic. 2. 2 Previous empirical studies The significance of relationship between the financial autonomy and economic growth can be gauged from the volume of literature available on this topic. versatile important relationships were analyse to establish clear relationship between the two, but inconsistent results were obtained both for the developed and the developing economies.For Pakistan too stud ies have yet to find any clear relationship between financial decentralization and economic growth. On leafing through the pages of available literature, one comes across valuable work on the topic, some of which is discussed in the following paras Davoodi and Zou (1998) developed a theoretical perplex for studying the relationship between Fiscal autonomy and economic growth on the basis of averaged panel entropy of 46 countries. The study showed a negative relationship between the two for developing countries.Zhang and Zou (1998), while using mainland mainland Chinas provincial panel data for the accomplishment 1978-1992, found a negative association between provincial economic growth and the degree of financial autonomy over the past fifteen years. Philips and Woller (1997) studied the above referred relationship for seventeen developed and twenty three less(prenominal) developed countries on the data collected for the period 1974 to 1991. A negative weakly significant relatio nship was found for the developed world. However, no such relationship could be proved between the two variables for the less developed countries.Xie , Zou and Davoodi (1999) observed that there is a highly insignificant relationship between Fiscal Decentralization and economic growth for the coupled States, which the authors attributed to the fact that the country had already reached optimal level of fiscal autonomy and thus no further progress on this line was possible. Thieban (2001) made use of OECD countries cross sectional data for the period 1975 to 1995, but the study failed to establish any link between revenue decentralization of the low-level governments and economic growth of these countries.Martinez Vazquez and Mc Nab (2001) concluded that the relationship between fiscal decentralization and economic growth is still unclear, and that little attention has been paid to in subscribe factors through which fiscal devolution may influence economic growth. In contrast to the above findings, Lin and Liu (2000), while using panel data of 28 provinces for the period 1970 to 1993, arrived at the conclusion that there exists a positive relationship between fiscal decentralization and economic growth in China. The authors noted that the impressive growth of china for the last twenty years can be linked to fiscal reforms.Ebel and Yilmaz (2001), observed that Fiscal design of OECD countries is unable to explain Fiscal decentralization in true sense. Martinez Vazquez and Mc Nab (2003), on the basis of panel data, covering the period 1972-1997, studied the direct and indirect relationship between fiscal decentralization, economic growth and macroeconomic stability . They arrived at the conclusion that devolution minimizes the inflation rate, has no direct influence on economic growth, and has positive indirect effect on growth as it results in on macroeconomic stability.Justin Yifu and Zhiqiang (2000), investigated the implications of fiscal decentralization of e conomic growth in China, and found that it has made remarkable contribution to economic growth. This finding is in conformity with the possibleness that Fiscal devolution enhances economic efficiency. Fielstentein and Iwata (2005), while using VAR (Vector Auto regressive) example found that there is a relationship between decentralization and macro economic performance in China. They concluded that Fiscal decentralization is positively related to growth in the period after the war, and has negative effects on the inflation rate after the 1970s.While using the cross country data for 78 countries, Mello and Barenstein (2001) observed that as the share of receipts, including non-tax revenue, grants and transfer of funds, from the federal government ontogenys in the total provincial revenues, the relationship between financial devolution and governance grows stronger. Shah (1991) pointed out that poor performance in most of the developing countries in the last 40 years can be attribu ted to highly centralized regimes.Huther and Shah (1998) noted that good governance and fiscal decentralization are positively related, which in turn may enhance economic growth. Akai and Sakata (2002) used integrity country data and predicted that fiscal decentralization plays a role in economic development. They pointed out that in the United States, high government spending was required in the initial phases of economic development, therefore, any digest that took into consideration this period is bound to ove stay putimate the role of central government in the economic development.This led Xie et al (1999) to declare that decentralization has adverse effect on economic development. Jorge Martinez-Vazquez and Mark Rider (2006) pointed out the structure of financial system plays a pivotal role in determining the conduct and performance of low-level governments, which indirectly influence economic growth of a country. According to them, though both China and India show great fina ncial decentralization, the central governments restrict the fiscal autonomy of the sub-national governments through conditional grants and piteous powers to raise revenue.Thus, the regional governments are forced to use extra budgetary allocations to overcome their financial constraints, which results in waste of resources. These structural infirmities in the financial systems entail profligacy and unproductive expenditure policies, which may stymie the growth rate in the future in both the countries. Nobuo Akai, Yukihiro Nishimura and Masayo Sakata (2007), while using panel data of the fifty states of the US, showed that fiscal decentralization minimizes the variance of GDP growth due to decentralization among various levels of government.They also observed that there exists a negative relationship between fiscal devolution and economic volatility. Hiroko Uchimora and Yurika Suzuki (2009) studied Fiscal Decentralization in the Philippines after the promulgation of Local Governme nt code (1991) . This study examined the fiscal relationship between the central and sub national governments by using the indicators of Fiscal decentralization. According to their findings, in the Philippines, the responsibility to incur expenditures by the local anesthetic anaesthetic governments is not accompanied by corresponding strengthening of the fiscal capacity.As a result, local governments rely heavily on fiscal transfers from the central government and Internal Revenues aloneotment, which point the local finance unstable. Atushi Alimi(2004) Although , in theory, decentralization promises efficient provision of public services at local level, empirical evidence gives a mixed picture regarding its implications on economic growth. They attempted to resolve this contrariety by using instrumental technique on the data for the period 1997 to 2001.In this study, fiscal decentralization is measured in hurt of the ratio between local expenditure to total government expenditu re. The result showed a significant positive relationship between per capita growth rate and Fiscal decentralization. Perraton, J. and Wells, p. (2003), in their makeup, Multi level governance and Economic cohesion noted three general trends in economic policy reservation the transfer of powers to supranational institution in economic policy formulation, e. g. he formation of the European Union and realness Trade Organization secondly, almost all developed countries have established regional organizations, to which powers of economic policy-making have been devolved. In the transition states, there is a growing tendency towards decentralization to curtail expenditures and to make the governments more accountable thirdly, the governments are now inclined to reduce their sizes and make alternate arrangements for governance through NGOs. This concept of governance is referred to as multi-level governance.In Pakistans case, Fiscal Federalism has been studied in detail. According to A nwar Shah, World depone (Dec, 2006), there are two ways of transferring funds from the Centre to the provinces assigning share of the federal revenues to the provinces at a pre-determined rate and direct transfer of funds (other than revenue) from the Centre to the provinces. According to him, the revenue manduction system in Pakistan affects the transfers in a lump sum and predictable manner to the federating units, which are at shore leave to use these funds the way they choose.The author further argues that NFC places greater responsibility of revenue ingathering on the Federal government, thereby making the tax machinery efficient and tax compliance cost effective. The Revenue sharing system may have its merits, but it is also associated with certain demerits. For example, the provinces enjoy vast discretion in the utilization of funds, but have no control over the amount of funds they acquire from the union the federal government cannot influence the provinces to set pri orities for achieving uniform standards in reas like health and Education the provinces receive the funds without any strings attached to it , therefore, they feel less accountable while spending the funds the share received by the provinces have no relation with the expenditures they incur, as usually the expenditures outgrow the rate at which the Federal revenue grows. Nighat Bilgrami and Mahpara Sadaqat (2006) have given an account of evolution and working of NFC Award ever since its introduction in 1951. According to the authors, with the providedion of 1974 Award, there is a growing tendency in increase of revenue transfer to the provinces.The study step forward in this direction was the 1991 NFC Award, wherein new taxes were included in the divisible pool. In addition, as envisaged in Article 161 of the Constitution, royalty on crude oil and surcharge on gas were also transferred to the provinces. This caused greater decentralization of funds, which over a period of time co mpete a pivotal role in improving service delivery in health, education and irrigation etc sectors. The newsprint identifies various forms of fund transfers from the Federal government to the provinces.These include Revenue Sharing grafts, Straight transfers, Recurring Grants, knowledge Grants and loans. The authors have also elucidated that how resources are transferred in Pakistan from the federal government to the provinces in four ways from the centre to the provinces, from provincial to local governments, from the federal government to the local governments and from local to local governments. The paper also gives a rationale for transfers of resources from the federal to provincial and municipal governments.At the end of the paper, the authors have suggested that littler provinces be provided with soft loans and factors like backwardness and poverty be also considered while allocating the resources. Moreover, the provinces should be allowed to generate revenues that fall wi thin their domain. Iftikhar Ahmed, Usman Mustafa and Mahmood Khalid (2007) have dilated upon the evolution of resource distribution over time. According to them the divisible pool has been expanded by the inclusion body of more taxes.However, as tribe is the sole criteria for the distribution of resources through NFC awards, it has given birth to serious discrepancys among the provinces. The paper says that resources are transferred from the centre to the provinces in two ways Systematic or Formula Based transfer, comprising of revenue sharing and Random transfer, including grants, executive discretionary funds and Parliamentarian funds etc. According to the authors, with the passage of time the federal government has become more centralized, thereby adversely affecting the efficiency of the provincial governments.The federal government has got engaged in activities that purely fall within the purview of provinces. These include irrigation, roads, culture, tourism, youth persona l matters etc. This has increased the burden on federal government. The Federal government collects 93 % of the revenue but expends only 72%, whereas the provinces generate just 7% but spend 28%. The argument shtup greater revenue collection by the centre is that it is more efficient in revenue collection than the provinces. nevertheless this argument is flawed as the provincial and local governments are left with lesser opportunities to collect revenue.This results in the dependency of the provinces on the federal government for transfer of resources. In this paper, NFC Award has also been criticized in that the criteria for resource distribution are mainly population. Elsewhere in the world, other factors like backwardness, population density, and revenue generation are also considered while devising a formula for distribution of resources. According to the authors, the major shift towards fiscal decentralization appeared in the 1996 NFC Award, whereby all duties and taxes were included in the divisible pool.By so doing enhancer and predictability in resource distribution was though enhanced, yet the resource distribution formula between the federal and provincial governments changed little. The paper says that resources distribution has never been taken seriously. Only one criterion, that is population, has been followed for resource distribution, thats wherefore the NFC Award has failed to resolve the difficulty of Fiscal Decentralization. Usman Mustafa (2011) has highlighted the importance of federal form of government and has argued that even European Union has the characteristics of federalism.While referring to works of notable authors on the subject, it has been argued that Fiscal Decentralization increases efficiency, transparency and accountability. According to the author, in Pakistans case, there are pre-federalism (from 1947-71) and post federalism (from 1973 onwards) periods. In the first perid, the authority was centralized (one unit), whe reas the second period is characterized by the march towards decentralization of powers from the centre to the provinces. In this context, the author argues that NFC Award is a step forward towards decentralization.He, however, criticizes population being suitable criteria for resource distribution between the centre and the provinces. In order to remove the grievances of the little provinces, a historical decision was taken in the 7th NFC Award on Dec, 2009 at Gawadar, to which all the provinces concord. In this award, the demands of the small provinces were accepted, and a multifactor formula was devised. In the formula, factors like poverty, underdevelopment and inverse population density were also included for resource distribution. Moreover, the Federation sacrificed more that 10% of its share in favour of the provinces.It was also agreed that collection charges received by the Federal government on revenue would be curtailed from the existing 5% to 1%. This will increase th e volume of net transfer of revenue from the federal to the provincial governments. All these decisions taken in the 7th NFC Award will contribute favourably towards Fiscal Decentralization in Pakistan. According to Kardar (2006), local governments have significance both in the context of Devolution plan and calamity of central and provincial governments to deliver quality services to the masses ever since the emergence of Pakistan.He further argued that though legislation on devolution is a landmark achievement, the biggest challenge is to settle the row over powers between the provinces and district governments. Dr. Shahnawaz Malik, Mahmood-ul-Hassan and Shahzad Hussein analyzed the relationship between Fiscal decentralization and economic growth for the period 1971-2005. They obtained mixed results on the basis of unalike variables used in analysis. The study further showed that with the continuous rise in the share of provincial government revenues and expenditures, economic g rowth slows down.Naeem-ur-Rehman Khattak, Iftikhar Ahmed and Jangraiz Khan, while using time serial publication data, for the period 1980 to 2007, analyzed the resource distribution, and studied the impact of financial decentralization on the economic growth of Pakistan. According to them, the divisible pool has expanded over the years by the inclusion of more taxes in it. They pointed out that the resource distribution mechanism failed to affect economic growth positively, and suggested that the distribution formula be revisited, having regard to factors like tax collection and backwardness of the provinces.They further suggested that more powers be delegated to the provinces to raise their own revenues. Chapter 3 THEORETICAL BACKGROUND AND ECONMETRIC METHODOLOGY 3. 1 Introduction In this chapter we discuss the theory which guides our research, variables of our model, persona of statistical relationship and the model we will use for estimation. 3. 2 THEORETICAL BACKGROUND Various forms of Decentralization. It refers to the direction of powers and functions from the central to low-level governments. There are three main forms of decentralization (JICA 2008) . 2. 1. Decentralization It is the weakest type of decentralization, and refers to the transfer of decision making powers along with financial and management responsibilities from the officials in the centre to those serving in the local /regional offices. 3. 2. 2. Delegation Here the powers are delegated to the autonomous bodies, including corporations, housing authorities etc. , working under the supervision of the central government. These organizations enjoy vast discretion and decision making powers. 3. 2. 3.Devolution It is the gradual transfer of administrative, financial and political authority to the local bodies, which exercise their powers and functions within certain geographical confines. It has three main constituents, as discussed below a) Political decentralization It refers to the shiftin g of powers and authority to local bodies, run by local political representatives. It has a well-established system of political decision-making and accountability at the local level. b) Administrative decentralizationIt is the form of devolution whereby stave of line ministry is dissociated from their corresponding ministries and brought under the control of the local administration. This is done through establishing local pay roll, which empowers them to support and punish the staff. c) Fiscal decentralization It refers to the shifting of authority and responsibility to the sub-level governments with regard to decision-making on distribution of financial resources. This also includes the powers to raise local revenue.Fiscal decentralization has attracted great attention, among the economic circles, especially for improving service delivery at the local level. The main objectives of Fiscal decentralization include efficient utilization of resources, effective service delivery, mac roeconomic stability and economic growth. With these objectives in view, the developing world is following the principle of Subsidiarity, which emphasizes that authority should rest with the lower tiers of government for effective use, and that the responsibility of incurring expenditures should match with adequate financing.Decentralization leads to efficient utilization of funds through improvement in governance, as lower strata of government can better assess peoples line of works and know their priorities. Decentralization enhances participation of local population as the beneficiaries are directly baffling in planning the allocation of funds. Increased decentralization gives birth to democratization, which keeps the government close to the masses, thereby making it more accountable. 3. 3 Various theories regarding decentralizationThe above narrated advantages, and many more not discussed here, emphasize the importance of Fiscal decentralization. But it was since the publishin g of Tiebouts article, A pure theory of local Expenditure that this concept has gained great popularity among the theorists, and the volume of literature on this topic has increased tremendously. According to Tibeout (1956), Fiscal decentralization improves production efficiency through greater mass mobilization. In 1959 Musgrave pointed out that the role of government is to bring stability to the foodstuff and effect the redistribution of income.He further argued that efficient utilization of resources can be secured only when local tastes and choices are taken into consideration. Oates (1972) pointed out that people living in different localities have peculiar tastes and preferences for public service, therefore, local governments, as against central government, being better informed, will provide better services to its citizens. This concept is called Oates Decentralization Theorem, agree to which economic efficiency can be enhanced by decentralizing the availability of public goods and services.Thus, the central government should be responsible for devising a national policy and providing efficient levels of government for distribution of goods . (Oates,2005) So, equipped with the requisite paraphernalia , the sub-national governments are in a better position to put in place welfare-maximizing policies. Cremer, Estach and Seebright (1994), stated that government at the centre cannot reach the information about local tastes and choices. Thus, it is through Fiscal Decentralization that local agents can bring about efficient supply of goods and services to their constituencies.Almost superposable views were evince by Qian and Weingast (1997), who opined that decentralization puts a check on budget expansion by promoting argument and strengthening accountability, which effects supply of goods and services in an efficient manner. Having said this, there is always a tendency among the local political agents to enlarge the scope of public goods and services at the cost of other jurisdictions. Rodden (2003) attributed this predilection to the type of decentralization being followed.If decentralization is dependent on self-generated tax revenue, smaller governments emerge and if transfer of funds occurs from the centre, it results in budget expansion. Though from economic and political point of view there are many benefits of Fiscal decentralization, yet it is not a cure for all ills. For instance, Fiscal Decentralization entails loss of Economies of Scale and loosens control over scarce resources. From it follows that centralization and Decentralization are not alternatives, rather the countries should find a balance between the two as per their requirements. . 4. Rationale for Fiscal Transfer in Pakistan The first reason is the general perception that the federal government is better equipped to collect major taxes, but is inefficient to collect smaller taxes. Also, the federal government may undertake major projects, but fail to deliv er on smaller projects. Hence, the efficiency criteria moldiness be followed while decision making allocation of meat and responsibilities. The second reason for resource transfer from the centre to the provinces is that the latter lack the resources to finance the provision of even basic services.In the last ten years, the average revenue generated by the centre, provinces and municipalities stand at 89%, 5% and 6% respectively. As against the revenue generation, the share in recurring expenditure of the federal, provincial and municipal governments is 74%, 23% and 4% respectively. As regards developmental expenditure, the share of these governments is as follows Federal government 65%, provincial government 25% and municipal governments 6%. These figures indicate that the provinces have limited resources opposite number the amount of expenditure they incur.This necessitates the transfer of resources from federal to lower-tiers of government. Another reason that can be attribute d to the allocation of resources among the different levels of government is Adequacy of Revenue. This concept refers to the capability of government not only to generate the initial revenue required to start a project but also to its ability to sustain it. In Pakistans case, Adequacy of revenue does not exist hence transfer of resources to the lower tiers of government is necessary if they are to undertake any such projects.The fourth reason of transfer funds from the centre to the provinces is that there are taxes which though provincial in nature but is collected by the federal government, for example Sales Tax. Another rationale for transfer of funds is that federal government uses certain taxes for the overall stabilization of the thriftiness hence they should be under the control of the federal government. NFC AWARDS Commentary and Agenda, Nighat Bilagarami, Jaffery and Mahpara Sadaqat (2006). 3. 5 ECONMETRIC METHODOLOGY 3. 5. 1Augmented Dicky chockablock(predicate) (ADF) Tes t In this study a time series data is being used.Since this kind of data is usually non-stationary in nature, we first test it for stationarity or non-stationarity. For this purpose, an enhanced version of Dicky fuller Test, know as Augmented Dicky Fuller Test, is being employed. The ADF includes extra lagged terms of the dependant variable so as to remove auto-correlation. The following equations denote the three possible forms of ADF Test. i) Without any constant and trend ?yt=? *yt-1+i=1p? i? yt-i+et ii) Constant with non trend ?yt=a+? *yt-1i=1p? i+? yt-1+et iii) Constant with trend ?yt=a+? t+? *yt-1+i=1p? i+? yt-1+etOf the above equations, (iii) represents a more generalized form of ADF Test. Mackinnon(1991) gave fine foster for the DF test The critical values for the ADF Test are the same as those for Dickey Fuller Test. If the DF Statistical value is smaller than the critical value, Null hypothesis of a unit root is rejected, which suggests that the yt is stationary process or the variables are stationary. If on running the ADF Test the variables are found non-stationary in their original levels of series, the variables are made stationary in their first difference level of the series. . 5. 2 Ordinary least square model (OLS) formerly the variables are made stationary, estimation is made by employing Ordinary least square model (OLS). This model is suitable for ascertaining linear interdependencies in a time series data. Here it is also worthwhile to discuss Regression model. A multiple linear regression model estimates value of dependant variable (also called reply variable) on the basis of independent variables (also called explanatory variables). But there is always a difference in estimated and observed values.Therefore, a Regression model also possess unexplained variable, also called error term, which measures the difference between observed and estimated values. y= b+b1 x1+ b2 x2+ b x3 +ei A regression model will be best fit if the difference between observed and estimated value is minimum. We cannot take error term by simply adding all the difference between observed and estimated value because it may contain both positive and negative values which can cancel the effect of each other. So, we take the square of error terms which leads us to OLS . i. e. minimum squared difference.OLS is useful for structural inference and policy analysis. For the purpose of Structural digest of data, certain assumptions regarding the causality of data are made. These are error term (i) is normally distributed (ii) has zero pass judgment value of mean (iii) has constant variance in each time period and for all values of X and (iv) its value in one time period is unrelated to its value in some other time period. OLS is a very simple technique by which we can calculate the coefficient of each variable in other words it gives us the impact of one variable on another variable, which is summarized by impulse response function. Chapter 4 DATA AND VARIABLE 4. 1 INTRODUCTION This chapter covers how data is collected, what are sources of our data and how variables have been constructed variables for our estimation. 4. 2 Data type For the purpose of studying the relationship between Fiscal decentralization and economic growth, secondary data is being utilized. 4. 3 Sources of data For the purpose of this study the following sources have been utilized. i) Issues of Economic survey of Pakistan ii)World Development Indicators iii)Ten years in Pakistan Statistics (1983) iv)UNDP Human Development Report, 2007. )Hand book of Statistics on Pakistan frugality (2005) 4. 4 Construction of variables Economic growth of the country is taken as dependant variable. It is measured in terms of per capita Log of per capita gross domestic product (LYP), which is rebased by the year 2000 market prices. The variable is expressed in real terms using GDP deflator to ascertain the pattern of economic growth over the years. The Fiscal decen tralization is captured on the ratio of Provincial share in list Revenue to the Total Revenue (PRFR). The data source for these variables is Economic survey of Pakistan and covers the period from 1964 to 2008.As regards investment, it is captured by the Gross Fixed crownwork Formation (GFCF) and data is taken from Pakistan Economic Survey Moreover, a variable for conduct openness (OPN) is also used in the estimation model. This variable is obtained by adding imports and exports and dividing the same by LYP (at market prices). Here, too, the source of data is Economic Survey of Pakistan Other variables in the estimation model are Tax to GDP ratio (TGDP) and GINI co-efficient, the latter being used to calculate income equality and its source is UNDP Human Development Report. Chapter 5 RESULTS AND password . 1 INTRODUCTION The section consists of results and their interpretation. In para 5. 1, 5. 2 and 5. 3 Stationarity of data, Autocorrelation and the results of OLS model respecti vely have been discussed. 5. 2 Unit Root test In a time series data, the major problem is the non-stationarity of variables. So, before estimation, a test is applied to make the variables stationary. For this purpose various tests can be employed, but in our case we have used Augmented Dickey Fuller test, the results of which are shown in table 5. 1 below. plug-in 5. 1 UNIT ROOT demonstrate Non stationary variables ADF-value 5% Critical value Gfcf -1. 693492 -2. 9303 Gini -2. 462911 -2. 9303 Lpy 0. 863730 -2. 9303 PRFR -2. 206432 -2. 9303 TGDP 0. 158213 -2. 9303 Stationary variables ADF-value Critical value Gfcf -3. 997577 -2. 9320 Gini -4. 766215 -2. 9320 Lpy -4. 632922 -2. 9320 OPN -3. 453532 -2. 9303 PRFR -3. 662186 -2. 9320 TGDP -3. 01612 -2. 9320 Gfcf- Gross fixed capital formation, Gini- Income inequality, Lpy- Log of GDP, OPN- Openness to trade (export+import/GDP), PRFR- Ratio of provincial shares in total revenue to total revenue, TGDP- Tax to GDP ratio.At the level, all the variables except OPN were found non-stationary, and were, therefore, stationarized at First difference level by using ADF Test. 5 . 3 TEST FOR AUTOCORRELATION Autocorrelation tells about the relationship between two or more error terms in the model. For innocent estimation, autocorrelation must be zero. If there exists problem of autocorrelation, it has to be removed. For this purpose, two hypothesis are constructed one, H0 Co-Var(u,u+1)=0,there is no autocorrelation between the error terms and second, Ha Co-Var(u,u+1)not equal to zero, meaning there is a problem of autocorrelation.To check autocorrelation in our model, we have used Breusch-Godfrey Serial Correlation LM Test (BG TEST), as shown in table 5. 2. According to the table, probability of F-statistic is significant at 5%, so we reject the hypothesis that cov (ut, ut+1) is equal to zero. In other words, there is autocorrelation problem in our model. In order to remove the autocorrelation problem, we have applied ARMA m odel with autocorrelation through AR (1), AR (3) and MA (2). Breusch-Godfrey Serial Correlation LM Test F-statistic 4. 781666 fortune 0. 001241 Obs*R-squared 20. 50376 Probability 0. 002252Probability of F-statistic is significant at 5%, so we reject the hypothesis that cov (ut, ut+1) is equal to zero. It means there is autocorrelation problem in our model. 5 . 4 ESTIMATION The results of the estimation with OLS are tabulated in Table 5. 3 below Dependent variableLPYMethod Least Squares Date 03/25/12 Time 1113 Variable Coefficient t-Statistic Prob. GFCF 0. 004693 3. 806074 0. 0006 GINI -0. 324275 -2. 919698 0. 0065 OPN 0. 000254 0. 468847 0. 6425 PRFR -0. 000173 -0. 517278 0. 6086 TGDP -0. 003194 -0. 809929 0. 4242 R-squared 0. 97793 Prob(F-statistic) 0. 000000 Adjusted R-squared 0. 997081 Durbin-Watson stat 1. 705104 In the model R2 shows strength of the regression line, which means how much important variables are covered by a model or how well renewing in independent variables explains the variation in dependent variable. For time series analysis R2 value must be greater than 0. 70 or 70%, which means the model must explain at least 70% of the total variation in dependent variable. In our results, R2=99% value is greater than 70%, so 99% of variation LPY is explained by our variables i. . GFCF, GINI, OPN, PRFR, TGDP. But the values in the 3rd column against each variable show t values. If the t value, in absolute form, is greater than 2, the relationship between the variables is significant. In our case, the financial autonomy is measured in terms of Ratio of Provincial share in Total Revenue (PRFR), whereas the Economic growth is captured on the variable LPY. It is evident from the table that the relationship between LPY (dependent) and PRFR (independent) is insignificant because the devalues, in absolute form, are less than 2.It implies that LPY is not influenced by PRFR. In other words, in Pakistans case, Fiscal decentralizatio n has no bearing on economic growth. The model shows that GFCF and GINI with variables have t value greater than 2 in absolute form affect economic growth. Durbin-watson value in the table tells us about the problem of auto-correlation in the model. If the value of Durbin-watson test is between 1. 7 and 2. 2 there will be no auto-correlation. In our table its value 1. 7, so we say that the problem of auto-correlation has been removed.CHAPTER NO 06 CONCLUSION This study focuses on identifying the impact of fiscal decentralization on economic growth through compilation of its historical trends. It is generally believed that that proper information about the existing fiscal decentralization system will lead to better policy formulation, which will ultimately put the country on the road to prosperity. In this regard, it is also worthwhile to analyze the implications of the current fiscal decentralization policy on the economic growth of the country.Thus, this study helps ascertain the e xtent of financial autonomy of the provinces and measures its long term benefits. In this study secondary data has been used, which covers the period from 1964 to 2008. Provincial share in total revenue (PRFR), GFCF- Gross fixed capital formation, Gini- Income inequality, OPN- Openness to trade (export+import/GDP), PRFR- Ratio of provincial shares in total revenue to total revenue, TGDP- Tax to GDP ratio are dependant variables, whereas LPY (Log of GDP) is dependent variable in the data.We used OLS model for our estimation, the results of which revealed that only GFCF and GINI have significant impact on GDP growth. On the other hand the influence of, OPN, TGDP and PRFR on economic growth (LPY) are insignificant. As PRFR and LPY measure the extent of fiscal decentralization and Economic growth respectively, we conclude that economic growth in Pakistan does not depend on fiscal decentralization. This may be due to the fact the Resource Distribution Formula has been mainly based on pop ulation. The results of other factors, included of late in the NFC Award, are yet to be seen.It is, therefore, proposed that not only the impact of population in the distribution formula be diluted by the inclusion of other factors, being emphasized by the smaller provinces, but also the powers of the provinces with regard to revenue generation be enhanced. 1 . The words, Financial devolution, financial autonomy and Financial /fiscal decentralization are being used interchangeably in this study. 2 . In this intelligence ,the words, federating unit, unit, province, sub-national government and low-level government will be used interchangeably.