This chapter analyses investment in agriculture in developing countries. Sections discuss: investment for on-farm agricultural stock; investment by the public sector; and investment in agro-industry for agricultural development and growth.

As back as the Industrial Revolution, anthropogenic activities namely, power generation from fossil fuels and deforestation activities have been continuously increasing the atmospheric concentration of GHGs beyond their natural limits resulting in an enhanced greenhouse effect, vis-à-vis, an increase in global temperature. The rise in temperature could be coupled with changes in rainfall pattern, rise in sea level, and frequency and severity of extreme events namely, cyclones and droughts etc. The sum of all these changes is referred to as climate change. Climate change affects economic development in many ways, especially the agrarian economies have always depended on vagaries of nature and climate. Change in temperature, precipitation averages and extreme climate events can alter yield, income, health, sociology and physical safety. Climate change is a global phenomenon and no country is immune to it. The disappearing of the Himalayan glaciers at a fast pace would increase the probability of extreme water flows, rendering it uncontrolled will bring heavy floods, loss of life, livestock, crops and infrastructural facilities in Pakistan, India, Nepal and Bangladesh. Climate change will affect all sectors of the economy not alone agricultural sector the most as well as health, forests, energy, coastal area, biodiversity and ecology all over the globe. In this connection, it will be pertinent to give the most recent events which have taken place across Asia.

This study investigates the impact of domestic and foreign currency-valued exchange rate volatility on the export and import demand functions with reference to Pakistan’s trading partners. We use GARCH-based exchange rate volatilities and the least-squares dummy variable technique with fixed-effects estimation to measure the volatility impact on both demand functions. The study evaluates a series of exchange rates from 1970:01 to 2009:12 to compare the long-run impact of volatility with that of the short run. The results show that, when Pakistan employed the US dollar as the vehicle currency with its trading partners, volatility discouraged both imports and exports. In contrast, both the import and export demand functions remained unaffected by volatility distortions when Pakistan traded with its developing partners using bilateral exchange rates valued in domestic currency terms. In policy terms, this implies that Pakistan should opt for direct domestic currency when trading with middle- and low-income countries.

This article presents a descriptive analysis of terrorism in Pakistan over the past three decades. Using statistical tools, the authors disentangle terrorist violence to expose underlying trends. Continuities and discontinuities in the various types of terrorism are identified and correlated with domestic and international events. The gravity of terrorist violence is found to change from one region of the country to another in response to geopolitical events. The Khyber Pakhtunkhwa share of terrorist incidents during the last three decades fell from 45% to 5% and then rebounded to 58%. Sindh's share of terrorist incidents followed an opposite pattern over the three decades, increasing from 23% to 68% and then decreasing again to just 9%. Terrorist incidents were most frequent in the 1990s but most lethal in the 2000s. Overall, terrorist violence has followed an increasing trend. The composition of terrorist attacks (sectarian, ethnic, and non-sectarian religious) has changed over the past three decades, with sectarian terrorism emerging as the more lethal, causing almost six casualties per attack. Terrorist methods have also changed over time, with bombings becoming less prominent in the 1990s but much more common in the 2000s. The geographical distribution of terrorist incidents has likewise changed over time -national and provincial capitals were targeted 64% of the time in the 1980s and just 25% of the time today. Overall, the authors conclude that the methods and pattern of terrorist incidents change logically in response to changes in the geopolitical environment.

This study offers fresh empirical insights into the causes of terrorism inPakistan. The authors present a novel strategy for hypothesis building in conflict studies, and explore the importance of the explanatory variables within the time frame of the analysis. The hypothesized relationships are tested using pooled cross-section time series data from five regions of Pakistan (the federally controlled area and four provinces from 1980 to 2010) using fixed effect negative binomial regression. The results indicate that public education expenditures, law & order expenditures, ethnic diversity, urban population, the presence of domestic military operations, and U.S. military aid to Pakistan all result in increased terrorist activity in Pakistan. This study recommends that ethnic diversity and multilingualism be respected in education in Pakistan, that the educational curriculum be cleansed of systemic incendiary language and bigotry, that law enforcement agencies be freed of political control, and that strategic partnership with the United States be reassessed considering the core long-term interests of Pakistan.