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| Social Development in Pakistan (SDiP) 2004 |
| Karachi: Dec 20, 2004: Former Finance Minister Sartaj Aziz Monday underlined the need for a political will to eliminate poverty from the country.
He was speaking at the launching of SPDC’s annual review of “Social Development in Pakistan 2004: Combating Poverty: Is Growth sufficient,” at a local hotel.
“Unless economic growth is pro-poor you can not reduce poverty,” he said adding that a public pressure is needed to force policy makers to make pro-poor policies.
He pointed out that poverty reduction should not face political obstacles. He gave examples of developing countries like China, Vietnam, Malaysia, Uganda and Chile.
Even India is forced to take measures for poverty alleviation, he said that the new government has allocated Rs. 45 billion through 200,000 Panchiat or local organizations to build local infrastructure through local administration.
“We are also doing the same experiment here,” he said.
He said role of civil society is very critical, so a civil society movement to mobilize the development is required in Pakistan.
Sartaj Aziz endorsed the recommendations of the report and said land reforms are needed. Agriculture sector needed attention for poverty reduction, he said.
The well known economist and Managing Director of SPDC Dr. Kaisar Bengali, while presenting the findings of the report said that increase in growth rate has actually increased the poverty rate so if Pakistan wants to abolish poverty it has to reduce inequality and take serious steps and efforts for reduction in gap between haves and have nots.
The analyis shows that despite an average GDP growth rate of 4% over 1988-2002 the incidents of poverty and populating living below poverty line has increased from 23-33%. The rural poverty has risen by 2.3% annually and urban poverty has grown more rapidly by 3.6% annually. The incidence of poverty is relatively higher amongst households in agriculture sector: 33% as against about 28% in non-agriculture sector, with 55% of non-land owning sharecroppers being below the poverty line.
With the help of charts he suggested that a major investment of about Rs 75 billion more is required in social development to address the issue of increasing poverty. “This amount must not come by deficit or loan but by decrease administration and defense expenditures,” he added.
Dr. Bengali said that increase in growth has neither reduced the poverty nor affected unemployment and this trend will continue till we address the key issues and pay attention to critical areas.
In his view the SPDC report this year is prescriptive rather than diagnostic, which has identified areas, which need serious attention. “There has been little investment in infrastructure during the last 25 years and it needed to be focused,” he opined.
He said the report has suggested investment in water conservation, energy sector, rural road infrastructure and urban infrastructure for poverty eradication and reducing inequality.
“I know investors who have declined to come to Pakistan because of the lack of urban services, so we have to focus on this aspect because urban centers are actually engine of growth,” he added.
Dr. Bengali, on the basis of the findings of the report, disclosed that only 7 million people are covered by all social protection schemes and the rest 93 % remain vulnerable having no protection. “Social protection is necessary and need attention,” he added.
Highlighting inequality, Dr. Bengali was of the view that since there is more poverty in rural areas, land reforms and distribution of land is also one of the key issues, needed to be addressed.
He said that the report finding is based on analysis of 49 districts of Sindh and Punjab, which shows that out of the small land owners, with one or 2 acres, only 18 % are below the poverty line where as incase of landless 32 % are living below the poverty line.
“Assets play important role in determining poverty,” he commented. In urban areas 29% of those who own a home are living below the poverty line where as 37% of those without home are below poverty line.
“If government is serious in poverty eradication, land reforms should be considered,” he suggested.
According to the report findings poor pay more tax than the richer as poorest 10% contributes 16% of its incomes in taxes comparing to 12% of their income by richest 10 percent. “This is a country where poor is paying more to maintain rich.”
He suggested that mere 1% reduction in inequality can reduce poverty by 8% so there is urgent need to reduce inequality rather than just focusing on growth which alone can not help but increase poverty.
Discussing the increase in poverty, he disclosed that during last few years’ poverty in urban areas have increased and small cities and towns in Sindh and Balochistan are worst victims of incidence of poverty.
“In fact 70% of those living below the poverty line live in rural areas, number of urban poor has also increased,” he added, disclosing that poverty has increased in Southeren provinces of Sindha and Balochistan as compared to northern provinces- Punjab and NWFP.
Earlier, former Finance Minister Dr. Abdul Hafeez Pasha, who is presently Assistant Secretary General at United Nations said that the countries including Pakistan have to bring down poverty by half by 2015 to achieve the targets set in Millennium Development Goals (MGDS) and that require serious efforts.
Dr. Pasha, a renowned economist was of the view that growth is necessary but not sufficient for poverty eradication. “Pro-poor growth should focus on rural and agriculture development as rural development is fundamental for poverty eradication,” he suggested.
Giving the example of India, he said that though India has rapid growth in 1990s but poverty reduction was disappointing. “The common lesson is growth rate has to be directed to rural areas and on pro-poor policies,” he added.
Ms Margaret Huber, High Commissioner of Canada, in her speech as chief guest said that to achieve the objectives set by the MGDs, Pakistan needs a high rate of equitable economic growth and in this regard SPDC’s review has rightly pointed out the need for progressive fiscal regime and land reforms.
She said that agriculture sector which provides employment to majority of the population also need immediate attention. “ Development of human and social infrastructure is key to achieving sustainable long term growth. Education, health, gender equality, social protection and population control are the essential elements of social development,” she added.
She said though government reports show full implementation on Poverty Reduction Strategy Paper (PRSP), much more remains to be done. She suggested that devolution could play a crucial role in improving lives in Pakistan.
Noted playwright Noorul Huda Shah, who was selected the Personality of the Year in the SPDC report in her remarks regretted that tribal customs of honor killing of Karo Kari has created a bad name in rural areas. She said NGOs have to play their role to eliminate this custom.
Dr. Noorul Huda Shah pointed out that life in rural areas, particularly those of women is very miserable.
She presented some quotes from her famous drama serials about plight women in rural Sindh areas. |
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