No new university in Hyderabad

Re: No new university in Hyderabad

Brother, what I wrote is not flawed but it is your thinking and understanding of economics is flawed. What I wrote is not only practiced all over the world, but that is only way for a country to survive, develop, and prosper. Your logic that government job is to tax rich areas to spend on backward and poor areas means, making those who give taxes start thinking not only against the government but also against the country, that in the end becomes disaster for the country, its development and prosperity, effecting both rich and poor.

The vector path you mentioned is correct, but for achieving that, it is not what you wrote is correct, but it is what I wrote is correct.

First let me tell you about tax and why people pay tax: People requirements are two. One people fulfil themselves. Other is communal requirements that only government can fulfil. Government use taxes and other resources to fulfil communal requirements.

Communal requirements are infrastructure, amenities, local cleanliness, roads, pathways, policing, judiciary, health facilities, educational facilities, transport, sports and other recreational facilities, graveyards, religious facilities, effective and efficient bureaucracies, armed forces, etc … And those who pay taxes, they like all these for themselves in return for their taxes. If government collects taxes and do not fulfil communal requirements of tax-payers than tax-payers would not like to give tax to the government.

As for development around the country (underdeveloped areas), that also happens if government takes a portion of taxes and other resources for the purpose (meanwhile providing most communal facilities to tax-payers).

Regarding vector path you mentioned:

Investment ---> economic growth ---> increased tax revenue

It seems you do not how it works. Let me try to explain that (from what I know);

Investment: There are two types of investment. One is Private sector and other is public sector investment. Source for both types of investments are mostly rich, productive, and economically active population of country who invest themselves and pay taxes for government to invest. So, all countries in the world keep their rich, productive, and economically active population happy by spending their taxes and other resources in providing them with good life facilities and amenities.

If government would not do that then country would start losing this section of population, as many would stop working hard and productively, would start staying dissatisfied with their living standard and thus giving lower output, would get disgruntled with government and then avoid paying taxes (by whatever means, including bribing officials), or leave the country with their ‘wealth and talents’ if they get opportunity, etc.

That means no or lower private as well as public investment. Results would be low or negative economic growth, lower tax revenue, and economically deteriorating country. So, your vector path becomes upside down if government do not manage to keep those who are working hard, paying taxes, and generating resources deprived and unhappy.

Or, following your model, your vector path would become:

No or low Investment ---> low or negative economic growth ---> Stagnant or decreasing tax revenue ---> deteriorating country.

Re: No new university in Hyderabad

No. Read again. Government spending should depend on the POTENTIAL of the area and sector, not how poor it is. That's the whole purpose of tax system. Rich pay more, but the infrastructure developed from that taxes benefits all. Rich pay more tax, but the military (at least in theory) defends all. Rich pay more taxes, but everyone can benefit from hospitals and schools equally. What if the rich start saying that poor do not have the right to use the roads built with tax money because they do not contribute enough tax?

Essentially, development economics would suggest that (in case of Sindh), it would be actually be Karachi that would benefit the most if other parts of the province are developed, creating more business and job opportunities in those areas and people there have enough spending power to buy things from Karachi manufacturers and traders and not migrate in large numbers to the city. If every dollar spent in Karachi brings in $2, then every dollar spend in Dadu would not only bring in $5 in Dadu but also $5 in Karachi as well. Over and out.

Re: No new university in Hyderabad

it always helps if the government brings the poorer areas at par with the richer ones, i am not saying that one stops funding the developed ones. one example we can see is setting up of NFC fertilizer in an impoverished area, that industry alone created a lot of jobs. Now there it has an institute as well NFC IET. With the development of other areas in Sindh the pressure on Karachi would decrease and the overall GDP will increase. In Punjab an organization by the name of Punjab Industrial Estate is working which has been instrumental in opening up new industrial zones in under developed areas, this can be implemented in Sindh as well.

Re: No new university in Hyderabad

While they make new universities across the sindh , they should also focus on establishing the quality of education they are providing - I deal with workers graduated from interior sindh universities on daily basis and believe me they aren't capable of surviving a single day , if they aren't in the government sector employment !

Re: No new university in Hyderabad

I think you should read my post again and try to understand, as you are making comments without reading or understanding my post. No doubt that everyone in country benefits from taxes given by taxpayers and I never wrote that only tax-payers should benefit from taxes and those unfortunate who could not pay taxes should not benefit. But then, rhetoric what you are doing, without understanding economics and living away from facts does not help country or people living in the country, rather it harms everyone.

What I wrote is that, when people pay taxes they expect substantial part of those taxes to be used around them. But that does not mean, a part of that tax is not used to uplift areas incapable of contributing tax. Anyhow, if government deprives an area that gives tax (or create revenue) to provide areas that gives little or no tax than fallout is much horrible for the country.

It is just like, if a person who earns Rs 10 lac a month then one can expect that the person would spend a lac or two lac on relatives, friends, and poor around him, but one cannot expect that the person brings his living standard to poverty, contributing most to poor in society, so that every poor could get uplift and start living at par with this rich and resourceful person.

Same is with tax. If people living in area that contributes huge amount of money as tax, then you cannot expect them to live without amenities reflecting their taxes just because government wants to spend most of their taxes not on them but to uplift areas that has little or no facilities so to bring facilities across the country at par. If that would happen, then the person would stop paying tax and then there would be nothing left for government to even spend a little on uplifting poor areas.

[quote]
Essentially, development economics would suggest that (in case of Sindh), it would be actually be Karachi that would benefit the most if other parts of the province are developed, creating more business and job opportunities in those areas and people there have enough spending power to buy things from Karachi manufacturers and traders and not migrate in large numbers to the city. If every dollar spent in Karachi brings in $2, then every dollar spend in Dadu would not only bring in $5 in Dadu but also $5 in Karachi as well. Over and out.
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Why don’t you become adviser to corrupt thug Nawaz and Shahbaz, as these thug brothers need your advice badly, because according to your essentially development economics (in case of Punjab), PMLN corrupt government should not spend anything on Lahore and let Lahore be starved of all amenities, leave Lahore with no paved or decent roads (tuti-phuti roads would make Lahirees healthy), no good transport (walking is good for health), no good colleges and hospitals (jahil and bemmar Lahore would increase tax), no recreational venues (what is the use for that), no clean water (rather make Lahore drink gutter water), etc … and spend all those money on Bhakkar, Lodhran, Rajanpur, toba-tek Singh, as every dollar that they would spend on Lahore would bring $2, and every dollar spent on ‘Toba-tek-Singh’ would bring $5.

Yar, why don’t you start writing a book on economics? I am sure that with your mind set, you can bring revolution in understanding economics.

Well, if Nawaz corrupt government would follow your advice, then people, especially rich and resourceful Lahories, would leave Lahore for some other better city (maybe Karachi or Hyderabad, just to live a better life, and for sure if that would happen then Sindh would benefit from wealth transfer from Punjab to Sindh).

How about depriving Islamabad of all amenities and facilities? Is it not better that government spends on 'Dadu' or ‘Mirpur-Batoro’ whatever they spend on Islamabad?

Re: No new university in Hyderabad

^ No need to get personal bro. I need not write a book on economics. What I wrote has already been established in economics literature. It is well-established that income and wealth in-equalities create social ills. Taxation is considered a tool for redistribution of wealth, with a goal to increase welfare and development , reduce economic inequalities and create a cohesive society. The basic idea of progressive taxation (practiced in almost ALL developed countries) today is to take relatively more from the rich and give relatively more to the poor. I suggest you read up on it.

Cities like Faisalabad, Multan, Rawalpindi, etc are not really far behind Lahore in economic development and people from all over do not migrate to Lahore like crazy. The difference in situation between even Karachi and Hyderabad is huge, forget about cities and towns in interior Sindh. And yes, I would suggest spending more on Bhakkar, Lodhran, Rajanpur, toba-tek Singh and less on Lahore, Multan, or Pindi. That would eventually benefit everyone, including people from larger cities. As of now, almost all big landlords of interior Sindh have a house in Karachi and their children get educated in Karachi. They have no interest in developing their own areas.

I would always be a proponent of developing smaller cities to reduce the burden of migration on bigger cities and the cost of doing business in smaller towns.

About universities, most of the major US universities are located in smaller towns or suburbs, away from big cities. Please check the populations of the towns where top US universities are located and how many of them are in 10 biggest cities of USA. I would say that only one-third of top 20 US universities are in BIG cities. I wonder if they got it all wrong.

Re: No new university in Hyderabad

:k: I think big cities have reached their saturate point and its time to develop small towns to counter this saturation.

Re: No new university in Hyderabad

Bhai-jaan, I am really sorry if you thought that I got personal. Actually, I do not know if I misunderstood you or you really have novel idea that I never came across, hence I was appreciating your idea that I believe would be nice to put on papers, hence book.

Here is what I understood from what you wrote, especially in reply to what I wrote.

We were discussing about opening University in Hyderabad. I wrote that since Hyderabad is big city and give much more taxes than most other cities in Sindh (other than Karachi), they should have university (using public fund) first before government thinks of starting university elsewhere (at present, Hyderabad has no University).

Thus, I linked population and tax payment to right of having university over other areas that have lower population and lower tax payment. I did not say that all taxes should be spent on people who pay taxes, but what I said was that tax-payers have first preference over what they paid, though it does not mean government should not start universities in deprived areas … something government can do once requirements of tax-payers are covered … at least reasonable requirements if not all requirements.

You disagreed and wrote that government should not take into account tax contribution, rather use tax to make facilities for people who are deprived to get them at par, and thus it would be better if government spends tax-payer money to open Universities in deprived areas of Sindh. Your idea was new to me, that I found illogical though that may have some logic to you what I could not understand, so I asked you to write book on this new idea, as maybe people would understand you better.

Now, please do not claim that what you wrote happens in western democracies. I live in United Kingdom, where I had most of my education and also worked many years. I know what is practiced in UK (what I believe must be same throughout developed world), and that is what I wrote, plus I gave logical reason for that too. To me, what you wrote was not only illogical but disastrous policy if government follows. Actually, I believe Pakistan government has followed such policies over time, and it has harmed the country (that I mentioned in my post too).

Actually, most of the time, all governments follow the principle I mentioned, to an extent. UK has local government and for the purpose government has given taxation power to local government that local government spends on local area. Local government taxes are quite high, especially taxes they collect from businesses in the area (I know businesses who are paying £15000 To £25000 a year to local government as tax). On top of that, each household on average pays around £2000 a year to local government as council tax. National government also helps local governments in this respect. Local government can also generate money using various other means (traffic fines, car-parking permits, car-park charges, rent from shops and houses they own, etc).

Thus, you can see that when people pay taxes in UK, a large portion of that get used within the area they live. Actually, such taxes could be much more than income tax for most household (if not all). As for local government, they also spend more within area under their control, from where they expect to collect more taxes, by making that area more liveable than other areas.

Result: If you visit areas where rich and resourceful people live, you will find much more facilities then if you visit areas where poor and deprived live. Even within London, Chelsea, Westminster, Harrow, Richmond etc are much better place to live with better facilities then Hackney, Walthamstow, Forest gate, Brixton, Stratham, etc. Actually, many people with children move from deprived areas to affluent areas within London (if they can afford) just because schooling at affluent areas are much better with better facilities than schooling in run down deprived areas.

Anyhow, British national government collects income tax and National Insurance from people. But then British national government pays many benefits from that tax and national insurance to anyone who qualifies across the country (no area specific). Some benefits are universal that all get (rich and poor), regardless of their financial status. If income of a person is low then National government also helps in paying local government tax (council tax) for that person, as local government tax is not linked with income and all have to pay (or government pay to local government on their behalf). National government also pays for health and education (in most cases). British government also uses the revenue they collect on national expenditures, and thus, even though British government collects taxes from rich and helps poor, still, that is very limited in nature. Effectively, most of the money tax-payers pay gets spent in area they live.

So, it all shows that in UK (and I believe same is all over western democracy), most taxes government collects (local and national) are spent at place where that tax got collected.

[quote]
Cities like Faisalabad, Multan, Rawalpindi, etc are not really far behind Lahore in economic development and people from all over do not migrate to Lahore like crazy. The difference in situation between even Karachi and Hyderabad is huge, forget about cities and towns in interior Sindh. And yes, I would suggest spending more on Bhakkar, Lodhran, Rajanpur, toba-tek Singh and less on Lahore, Multan, or Pindi. That would eventually benefit everyone, including people from larger cities. As of now, almost all big landlords of interior Sindh have a house in Karachi and their children get educated in Karachi. They have no interest in developing their own areas.
[/quote]

I would not like to comment, as when someone says that Multan is as good or not really far behind Lahore in development than my brain stop working. Probably, that is the reason people in Pakistan would always going to stay exploited, politicians would do what they like with taxes (and also with the people who they treat as slaves), and those who have opportunity leave the country, not because they do not like the country, but they do not like injustice, lies, plundering, exploitations, and especially bigotry of people in position.

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I would always be a proponent of developing smaller cities to reduce the burden of migration on bigger cities and the cost of doing business in smaller towns.
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This is one thing I would agree with you. Only difference is about how government could achieve that, as to me, government cannot do that by robing one to feed others, rather government has to do that by good governance, eradicating corruption, and creating opportunities all over country fairly.

[quote]
About universities, most of the major US universities are located in smaller towns or suburbs, away from big cities. Please check the populations of the towns where top US universities are located and how many of them are in 10 biggest cities of USA. I would say that only one-third of top 20 US universities are in BIG cities. I wonder if they got it all wrong.
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Again, you have some misunderstanding here. Without going into detail, I would give you an example of how richness of a city that generates high taxes for the country gets many provisions, facilities and infrastructure. My example would be London, that generates most revenue for UK and city I know.

I can tell you that of all UK cities, London has most provisions, facilities and infrastructure. It is not just because London is capital of UK, but reason is simple, that is, London generates most taxes for British government and thus gets provisions, infrastructure and facilities for their contributions in taxes. I may not be able to put all what I can, but would give you some examples.

Before mentioning what London gets for their contribution in taxes to UK, I would like to tell you that city of London (one square mile) is considered as the richest part in the world. If a child is born in city of London, city of London gives that child a welcome gift (that I do not think happens anywhere in the world). In mid 1990s I was working in the city (at Kings College) and once read in ‘local paper’ that city of London at the time was giving £500 gift to baby born as resident of London city (one square mile with post code ‘EC or WC’). I believe that ‘city of London’ must be giving such gift even today and amount must have gone up. Anyhow:

Let see few things that London has (or got for their riches), something no other UK cities can rival.

London has more than 45 Universities and higher educational colleges, most are world class in facilities and ranking. These higher learning institutes are separate from number of highly equipped and well facilitated graduate and under-graduate colleges teaching various subjects, that one can find in all areas around London. Further, there are affiliated colleges too.

UK has 4 Universities amongst top 6 world Universities (2012 ranking). Two of them, UCL (4[SUP]th[/SUP]) and Imperial, (6[SUP]th[/SUP]) are in London. Other two are Cambridge (2nd) and Oxford (5[SUP]th[/SUP]).

London has around 15 medical related Universities and Colleges. 5 of them teach Medicine at degree and post-graduation level (though, the number could be more that I do not know). All of these Universities are world class institutions. They are:

UCL
Imperial
Kings
Barts
St Georges.

Many top British Schools are in London, especially in Harrow and Richmond. Some top boarding schools are in and around London.

River 'Thames' flows through London. So there are beautifully built and well maintained, at least 33 bridges over Thames, all separate in looks and designs, to facilitate people living in London and wanting to cross the river. Actually, they are like few hundred yards apart and all are beautiful.

There are many other unique things in London that one could not find anywhere in the world, like Kew garden, 100s of Museums (including Natural history museums, Science Museum, Victoria and Albert Museum, Royal Museum, British Museum, London Museum, London Transport Museum, etc), London zoo, London aquarium, Madame Tussauds, Royal Opera house, London Eye, Trafalgar Square, London castle, tower of London, etc.

5 international airports serve London.
Heathrow
Gatwick
Stansted
City
Luton

London is the only city in UK that has extensive underground transport facilities, covering most of London. London busses are very extensive and cover whole city quite effectively. London has number of big shopping centres and sports complexes (government owned). There are hundreds of well stocked Libraries in London, most within miles from each other. One can find 100s of creational facilities, green areas, parks, clubs, restaurants, hotels, etc across London at various places. And so on.

There are number of hospitals in London and almost all major UK specialised hospitals are in London.

London has 366 heavily used railway stations (not underground but rail stations). 13 of them are major railway stations. They are:

Blackfriars
Cannon Street
Charing Cross
Euston
Fenchurch
King’s Cross
Liverpool Street
London Bridge
Marylebone
Paddington
St Pancras
Victoria
Waterloo

And you know what? … Other than London being capital of UK, one major reason for London to have so much is because London contributes most to UK economy in taxes. So, why you think UK government, considered to be mother of all democracies, is doing nothing to make other British cities comparable with London in terms of provisions, facilities, and infrastructure?

Re: No new university in Hyderabad

^ No point arguing with someone who doesn't understand the basic principles like 'ratio', 'proportion' and 'relatively'. I am not suggesting that smaller cities should have SAME facilities as larger cities. Simply saying that RELATIVELY more should be spent on smaller cities compared to larger cities (per capita or per sq. mile or on whatever basis).

Saying that London has more facilities because it pays taxes is absolutely ABSURD. London houses more than 12% of UK's population and is perhaps the largest city in Europe. It has 'more' facilities because it is BIG and those facilities are required to cater for such large population and businesses.

I can refer you to tons and tons and tons of literature in economics which would tell you that taxation is used a tool for REDISTRIBUTION OF WEALTH (a simple search on Google scholar should reveal that to you anyways and you yourself have given example of how ALL people in UK receive similar health and education facilities regardless of what area they live in and how much tax is generated in that area). Kindly find me any literature suggesting that government should spend more in an areas where it receives more taxation.

Re: No new university in Hyderabad

Equitable distribution of resources is important, other wise we have Balochistan's. The disparity in Sindh is quite large, its virtually Karachi. If other areas are also developed the flow of population towards Karachi would be stemmed (hence easing some of its problems) and bring other areas at par.

Even in Punjab we see areas like Layyah, Bhakkar, Rahimyar Khan, DG Khan which need to be brought economically closer to Lahore otherwise we are moving towards a civil war in the future.

If we see how the world operates, they tax the rich man (more) like Kakaballi mentioned in his post and distribute that among the poorer people to improve their living as well. With the passage of time the disparity is increasing and so are feelings of disillusionment and helplessness. May Allah forbid if the lava was to erupt it would have very dangerous consequences.

Spending on impoverished areas does not mean to ignore the Urban areas, no thats not the case, spend on them but the poor areas as well. At the moment the money is not being spent properly even in urban areas.

Re: No new university in Hyderabad

Develop small cities, but not at the expense of big cities. Besides, the argument here is not about big or small cities. IT IS A LIE. As Mazharul Haq vehemently said, actually it is about a Sindhi nationalist denying the rights of Urdu speaking population. If Hyderabad is a big city and Jamshoro is a small town then it is more appropriate to make university in Hyderabad than in Jamshoro. But in reality BOTH Sindh University and Mehran University are outside Hyderabad.

Re: No new university in Hyderabad

Pir Mazhar ul Haq and Sindhi Nationalist. Good joke :hehe:

MQM showing concern for Urdu speaking community and its education. even a bigger joke :cb:

Re: No new university in Hyderabad

SA unanimously adopts resolution to build Hyderabad varsity

http://images.geo.tv/updates_pics/2-27-2013_89982_s.jpg

KARACHI: Sindh Assembly on Wednesday unanimously adopted a resolution pertaining to construction of Hyderabad university, Geo News reported. The resolution was moved by MQM - See more at: Latest News Breaking - Geo TV

Re: No new university in Hyderabad

Oh yea saw pir mazhar hugging raaza haron today in assembly - Sab topi drama hai

Re: No new university in Hyderabad

Thank you for letting me know that I do not understand basic principles like ‘ratio’, ‘proportion’ and ‘relatively’, something obviously you understand very well. According to you, population of London is ~12 percent of UK population (what is correct figure too). That means ratio of 1:7 or 1 out of every 8 person who lives in UK lives in London.

So, can you tell me that how come it is only London (1 out of 8 people) that has underground facilities (that extensively covers London), almost all Known Museums, almost all specialised hospitals, and most clubs and creational facilities are in London? Why most international airports and railway stations are located in and around London? Why London is severed in every way better than any part of UK?

Is it because London is capital of UK? … But then, New York is not capital of USA, still, New York is best served city of USA, why?

Is it all miracles of ‘ratio’, ‘proportion’ and ‘relatively’ … or is something missing somewhere?

Anyhow, reading your mentality and looking at some posts here, now I can understand why Bangla-Dash got separated, why Baluchistan wants Independence from Pakistan and exploitation by Pakistan, why PPP can play Sindh card where we have many who wants to get out of Pakistani federation, South Punjab wants to get away from exploitation of North Punjab, and so on … just because people do not understand basics of KakaBalli’s terms ‘Ratio’, ‘Proportion’ and ‘Relatively’ and thus these phrases are not working.

I would not be surprised that if such mentality would stay, days are not far when Karachi and Hyderabad would also ask for own province to come out of exploitation (however relative that exploitation maybe). If that would happen, do not say that people of Karachi do not understand 'ratio', 'proportion' and 'relatively'.

Note: No one disagrees with the principle that part of revenue generated in financially affluent areas or (areas that is generating revenue due to natural resources) should be diverted to uplift under-developed and deprived areas, but that should be part of revenue and not major part of revenue. Government should spend major part of revenue in areas those revenues got generated.

If government would do that (rob one area to feed other), then people who pay taxes without getting the benefit of those taxes, or people who believe revenues collected from natural resources of their area are not spent on them, then these people would fight for separation, independence or whatever, and that would not only harm people of underdeveloped and deprived areas (who will even stop benefiting from any revenue contribution from affluent area), but would harm Pakistan too.

Re: No new university in Hyderabad

You might be saying this from your strong conviction that there has to be some efforts to uplift the small rural areas also and nothing wrong with that.

But I think you seem to have forgotten that the example of US does not apply at all to Pakistan.

US does not have such a large difference in cultures of people and there are no local politics of that degree which exists in Pakistan or related countries.

Some of US universities were built long time ago and the reasons for that are largely unknown why they were built in a particular city.

Lastly, here is the list of top 20 Universities in US.

Please name those 2/3rd of Universities in ‘small’ cities.

NY, NJ, Pittsburgh, Chicago, New Haven CT., Stanford, LA, Boston, Austin, Atlanta, Ann Arbor …are these small rural cities?

Top 20 Universities in United States

Remember, small cities of US are not so small either and commuting to those places is not like commuting between Pakistani large cities and rural areas.

The infrastructure and facilities are not so different between rural areas and cities of US either.

Re: No new university in Hyderabad

That is what I said. The government should spend RELATIVELY more on underdeveloped areas and that is why I mentioned 'ratio', 'proportion' and 'relatively. No one said that government should take all taxes from Karachi and spend all in Dadu. No need to get emotional.

Re: No new university in Hyderabad

Here you go. People get similar infrastructure and facilities, regardless of tax generation.

Re: No new university in Hyderabad

Good post.

Agree with bold parts as well.

Re: No new university in Hyderabad

Yes, and how long it took to get there from US independence year of 1776?

You want to achieve that in 65 years?

The point is that Govt. should not take a wholesome Tax from one area and spend a large portion to other areas.