A regional development planner in Pakistan studies why Balochistan contributes the smallest share of provincial GDP despite being the largest province by area and having gold, copper, natural gas and coal deposits. Which combination of geographic and institutional factors is most explanatory?
Q1. A regional development planner in Pakistan studies why Balochistan contributes the smallest share of provincial GDP despite being the largest province by area and having gold, copper, natural gas and coal deposits. Which combination of geographic and institutional factors is most explanatory?
Answer: Extreme distance from population centres and industrial clusters, sparse and dispersed population limiting labour supply and domestic market demand, inadequate road and rail infrastructure raising transport costs, and historical underinvestment in human capital reducing the workforce capacity to develop resources
Explanation: Balochistan's low GDP contribution stems from extreme remoteness from markets, a sparsely dispersed population limiting labour supply and domestic demand, inadequate transport infrastructure inflating costs, and chronic underinvestment in education reducing workforce capacity for resource development.