Title of the book,
Poverty Alleviation in Pakistan, Present Scenario and Future Strategies
By, Dr. Mohibul Haq
This book is a collection of sixteen papers presented at a seminar on poverty alleviation organised by the Institute of Policy Studies, Islamabad in December 1995. The objectives of this seminar was to highlight the issues of poverty; to critically evaluate the public policies and strategies connected to it; and to present the solutions to poverty eradication with special reference to the Islamic approach.
Poverty is a global phenomenon, confined not only to the developing countries. It can be found in highly developed countries of the world also. Due to rapidly increasing population, the problems of food shortage in most developing countries are compounded by inadequate provision of basic services, such as health and sanitation facilities, shelter, and safe drinking-water; also lack of education and increasing unemployment. A substantial proportion of population in these countries lives below the poverty-line. With basic survival at risk, the children of poor families are forced to start work at an early age.
Despite the high rate of economic growth, the incidence of poverty in Pakistan is substantial. About one-fourth of its population, i.e., nearly 30 million people, live below the poverty-line. Moreover, the socio-economic and demographic indicators exhibit a dismal picture. The trend in the Gini coefficient indicates that the pattern of income distribution has worsened over time. The high rate of inflation, low collection of government revenues, and miserably small allocation of government funds for the uplift of human resources, coupled with rising unemployment and underemployment, are the major factors contributing to the prevailing high incidence of poverty.
... family. Third world countries are countries are suffrering greatly from poverty. Problem is their increasing birth rate is to high to be supported due ... poverty ... Poverty has been present in our world since the begging of time. In some cases Poverty can not be helped. People are born into ...
Second part of the book
The second part of this book highlights the existing situation of poverty in Pakistan and examines the relationship between economic growth and poverty through a critical evaluation of public strategies and policies directed at poverty alleviation. The role of financial institutions in facilitating income-generating activities for the poor, especially in the rural areas, is also examined. This part concludes that the high rate of economic growth and more equitable distribution of the fruits of growth are necessary and sufficient conditions for the alleviation of poverty. Despite extensive efforts in Pakistan, the development plans and the economic policies of the government have not been successful at alleviating poverty.
1* Factors Affecting Poverty in Pakistan
In this chapter Dr. Mohammad Yaqub gave emphasis towards the importance of maximum Government intervention policies for poverty alleviation, and he used govt interventionist policies as a tool and further provides techniques, guide lines for making policies. Writer criticizes some economic theories which gave more importance to increasing GDP, lesser state intervention, and increased inequalities all these efforts further have trickledown effects and thus reduce poverty. But evidences show that lesser govt intervention and corrupt leadership gave benefits to dominant rich and influential groups and people. There is need of proper policy mechanism such as, proper agriculture reforms i.e. changing land tenure system, equal sharing of crops, emphasis towards small and medium industries, reduction of inflationary gap by reduced public sector borrowing, and reconstruction and reevaluation of tax structure to promote horizontal and vertical equity. Policies of government must be revolve around social services (primary and secondary education, health facilities) proper planning is required in this regard and ensure their accessibility to poor and marginalized people and areas. So in concluding remarks we can say that poverty is not natural phenomena it is man made so can be overcome by proper planning, state intervention fare, sound and free of political leaders curruption policy mechanism. Writer is not very much in the favour of economic liberalization, he gave overemphasis towards government intervention, and further not provides any policy mechanism to improve our export and import market.
... unemployment. Under the Howard government however, fiscal policy has taken on a less active economic role. Fiscal policy is no longer actively used ... tax cuts and overall spending increases which are likely to provide some stimulus for the Australian economy in the face ... investment decisions. This is in line with the Twin Deficits theory which states that the government should attempt to avoid fiscal ...
2* Poverty Alleviation: The Existing Situation
In this paper Writer describes National or consumption poverty and International dimensions of poverty in developing countries, and measures poverty in economic terms. Traditional studies for measuring poverty only calorie based approach was used, but writer used Scientific approach, called ELES, (data collected from two basic elements such as growth in GDP, and employment) it deals with overall poverty not only food, because this approach helpful in understanding the present scenario of poverty, and introduced new dimensions and analysis to the study, it has certain advantages provides, comparative out line of all those years under which household and income surveys have been conducted, this approach not only limited to food stuffs but taking in to account all basic needs of people, and finally provides extended linear expenditure system to understand poverty line of different groups.
This reading suggests that, government need to develop anti poverty policies like Zakah, Baitulmal, and self employment schemes. Develop self Action Programs and Social Action Programs, under this government provide social services such as health, primary education, and also this paper discussed poverty in International context, by using HDI index.
But this methodology have certain limitations too, such as it did not reflect object poverty, and further picked the poverty line at higher level as compared to world bank ratio, and another issue related to this methodology used by Dr. Shoukat is that the basket for poverty line drawn by this methodology, is based on the consumption pattern of nation as whole including, both rich and poor so it required more research. Issue of comparability of poverty lines between two countries its ratio and levels, these areas also need further study while keeping in mind several factors related to growth such as, urbanization, over population, infrastructure, remittances, etc.
... ) 1. Fiscal Policy Fiscal policy can decrease unemployment by helping to increase aggregate demand and the rate of economic growth. The government will need to ... pursue expansionary fiscal policy ...
Concluding remarks of this reading is that poverty of Pakistan have such features, high vulnerability, regional and gender economic disparities, and poor social indicators profile as compared to international standards, but there is need by the writer to provide proper frame work and steps to overcome poverty.
3* Growth, Employment and Poverty Alleviation
Dr. Ashfaque A. Khan in this reading gave emphasis to government intervention policies for reduction of poverty, and these policies should target the employment generating schemes and provision of social services, this view is different from trickledown effects of traditional theories, approach used by author is Basic Need Approach, and he used cross section study technique for the relationship of growth and poverty reduction, while taking in to account 13 developing countries by ESCAP, and found that there is positive relationship between previous two, but still countries prevailing circumstances can effect this relationship.
Author suggests macroeconomic policies, labour intensive markets, for developing policies of developing country like Pakistan. Purpose of this study is to summarise rural and urban poverty, and analysed economic, growth and unemployment in historical perspectives of 8th five year plan, related to current state of poverty by using HIES data from 1984-1991.
This paper describes that Pakistan have unlimited supply of untrained and uneducated labour force and the ratio is 3% annually thus lesser labour demand due to lesser consumption increase more poverty, and it is all because neglected agriculture sector, privatization lower the absorption of manufacturing sector, and net return flow of overseas migration, bad economic policies not related to employment and development needs, unprotected domestic manufacturing, IMF conditionality’s, and further Dr. Ashfaque said that lacking of law and order situation is primary reason of poverty and unemployment in urban Sindh.
... Terrorism and many others. * Solve the issues of poverty, underemployment, and Unemployment * Strengthen territorial & security integrity of ... Welle, become relevant tools of foreign politics. PAKISTAN FOREIGN POLICY: Pakistan is the second largest Muslim country in ... principles of the policy. They formulate the policy, plans and programs regarding the priorities of foreign policy, and fully ...
The future prospects of growth, employment, and poverty have been examined under three alternative scenarios, first is base line scenario this suggests that unemployment worst during 1995-96 fiscal year. Second scenario is macroeconomic targets of government and resulting in reduction of unemployment, in moderate scenario is generated in rising real GDP during plan period. Thus it means that increasing in GDP 6.0 and increased investments 22-24% involve in reducing poverty and unemployment but with proper law and order situation.
In concluding remarks it is been suggested that along with all previous developments there is need of proper labour market information system, and social mobilization is require because alone increasing in GDP does not affect poverty reduction unless there are some other factors are not involved.
4* Public Strategies and Policies for Poverty Alleviation: An Evaluation
It is an evaluation study by Dr. A.R.Kemal, he gave four mechanisms for policy development such as, Economic programs and policies to generate jobs, and Taxation policy of government, Provision of social services by government to all segments of society and finally transferring of income resources to marginalized people and places, according to him all these areas will be helpful in reducing poverty which was increased because of poor planning of history. Author further criticizes previous theories of growth and defines three different concepts of (1960, 1970, 1980) trickledown, redistribution, and allocation of resources along with SAP programs, these programs and concepts have inherently some loop holes, were ill defined and involve in increasing poverty and making whole situation more worse.
According to him that level of poverty can be determined when income rises, with the help of functional income distribution, while keeping in mind three factors such as distribution of assets, functional income and tax structure. Further he pointed out that due to lower level of technologies in agriculture sectors, land ownership and labour intensive market reduce the consumption level which further reduces production, and it leads towards lesser jobs and lower wages. Further this reading suggests that due to macro economics policies of government especially towards small scale enterprise investment and taxation policy will be helpful to reduce the intensity of poverty and unemployment problems.
... the Congress led to the expansion of the economic opportunities through health programs, anti-poverty bodies, educational programs, and favorable employment policies. The ... workers, weakening the labor unions, thus lowering wages. Likewise, the choices of policy that lead to a great recession such as ... the key areas of concern owing to the fact that they have raw data on the issue of poverty than ...
In the past several social service programs such as IRDP, RWP, FIVE POINTS PROGRAM, TAMEERE WATAN, etc. Failed due to corruption and wrong planning. So need is to consider them again.
Writer further suggests future policy mechanism to reduce poverty and generate employment such as, labour intensive technology, human resource dev, job creation schemes, credit availability, improvement in skills, alleviating constraints on informal sectors, trade specific organizations, promote small scale enterprises, agriculture productivity etc.
While summing up this article we find that author almost cover up all areas which will be helpful in developing such policies by government, to reduce both problems of poverty and unemployment, it will be more perfect article if there are some policy mechanisms related to reduction of governing leaders, corrupt and rent seeking behaviour etc.
5* Credit Systems for the Rural Poor
Mr. Mohammad Yusuf, in his paper given the importance of well planned monetary policy, and its effects in improving conditions, of rural areas population. Further pointed out the 70% of Pakistan population who lived in rural areas and also a big vote bank of political leaders still far behind from basic necessities, these small farmers provide huge share of deposits in banks, but in return they did not receive credit support, even so called NGOs have no reliable and tested system for their savings and loan operations. Lack of communication is also a big problem, these all problems can be overcome by establishing proper credit institutions for especially rural areas, state bank income generating schemes for small farmers with the help of proper methodology, proper monitoring and auditing system is also very much necessary to improve the condition of rural areas.
6* Pakistan Poverty Assessment the World Bank Document
This document given the importance towards the development of Human Resource, with proper education and training especially at lower level, further educate women it will helpful in controlling population. This report says that because of multidimensional concept of poverty there is need of development, in all its dimensions if some areas lacking it will further affect other areas such as, Pakistan during 1980 made good progress in consumption poverty, but due to lack of education and health facilities problem of poverty and unemployment remain there. In Pakistan maximum importance given towards social action programs but according to this report that these programs usually failed because of lack of planning towards, public education, health and family planning, unavailability of service client, resource allocation policies, and further said that even ongoing programs of economic reforms programs not tackled the situation effectively.There is need of more sectoral reforms while given the importance to agriculture sector, in urban areas facilities towards slum areas, strengthen the social safety net, and finally improve the maximum involvement of NGOs along with lesser state intervention. Finally World Bank provide an approach to reduce poverty called CAUSAL APPROACH, and its major elements are equitable distribution of income and wealth.
... those living outside poverty areas, by race and Hispanic origin: 1990 In poverty areas, earnings are lower. People living in poverty areas earned an average ... social forces beyond their control, that leads one into poverty. Also it appears that poverty strikes inner-city minorities more than ... Truly Disadvantaged: The Inner City, the Underclass, and Public Policy. Chicago: University of Chicago Press.
Basically this document promotes the ideology of capitalist world economy and criticizing in its ending session towards communism and socialist economies, and finally made affirm criticism towards Zakah system.
All previous first five readings of different authors have basic commonality, and that is maximum state intervention, proper planning and mechanism for development of policies, and they define the targeted areas for making policies, finally with the help of these policies Pakistan government can reduce poverty and control unemployment factor. If there is corrupt govt it may deteriorate the whole situation, use all resources for their personal interests and divert economic policies for personal gain than it leads towards lesser economic activities— leads lesser productivity, ——– leads lower wages, unemployment it further—- leads lower consumption—– it leads lower investment— leads lower national and individual savings—- leads lesser national revenue— leads lower income to pay off debt—and again lesser resources to spend on social and economic activities increase untrained labour supply and unlimited resources and thus cycle goes on and on.
Poverty Alleviation in Pakistan, Present Scenario and Future Strategies
By, Dr. Mohibul Haq
Reviews of 2nd phase of book
Submitted to, Dr. Husnain Naqvy
Subject, Global Poverty (3rd assignment)
From, Saima Yasmeen