1. percent per annum in the fifties to

1.     INTRODUCTION

The base of
economy in any agricultural society is always on the agricultural development
because in rural areas the main source of earning livelihood is farming and
livestock. Pakistan is originally and basically is an agricultural country so
the main source of economy is agriculture. As we know that Pakistan is a
developing country but not a fully developed so the pace of development is
slower than those countries that are developed. In the rural areas of Pakistan,
the rural population is developing technologically but the pace of this
agricultural development is very slow. The fact of poor condition of farmers is
also the low profit of farming they get from agriculture.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

The overall
result of this poor condition of the population of rural areas in our country
is the bad condition of agricultural development.

The main
purpose of this topic is to see the performance of agricultural sector in the Pakistan’s
economy and the condition of poverty in rural sector of Pakistan regardless of
any specific province. In this report we also consider the dimensions of rural
areas and rural poverty in Pakistan. We also discussed and viewed the causes of
rural poverty in Pakistan that is causing constant decline of economy of rural
population.

Large number
of the population in developing countries lives in rural areas. Rural poverty
is more prevalent, deeper, a more severe than urban poverty. It is high among
households that are in agriculture, informal and small business, and casual
labour or people keeping livestock. In rural Pakistan, there is higher poverty
and worse human development situation than urban areas, and if we talk about
rural South Punjab and Balochistan, they are comparatively much poor than the other
provinces (IFAD, 2001, p. 49). The traditional agricultural of less developing
countries was needed to be transformed as the existing technology offered very
little growth opportunities due to a very little profit. Agricultural
technological transformation in Pakistan was made possible in the form of
scientific and technological based work like high and good yielding varieties
of seed, fertilizers, pesticides and water canal system by a greater spread of
agriculture mechanization like tube-wells and tractors. The result was that the
growth rate in agriculture sector jumped from 1.8 percent per annum in the
fifties to over 5 percent per annum in the 1960s. This state of affairs was
termed as the so-called green revolution’ (Malik, 1992, p. 22). According to
most reliable estimates, the percentage of rural population in poverty
increased from 41 percent in 1963-64 to 55 percent in 1969-70 (Amjad and Irfan,
1984, p. 30). The decade of the 1970s has witnessed a steady decline in the
percentage of rural poverty from the level attained in 1963-64. This implies
that keeping in view a high rate of growth of population – e.g., 3 percent per
annum – the absolute numbers in poverty have considerable increased. Given that
the rate of agricultural growth during the 1970s was not higher than that of
population growth, how can then above decline in percentage rural poverty be
explained? On this, the opinion is almost unanimous. It is believed that the
increase in overseas migration (largely to Middle Eastern countries) that took
place in the 1970s had an important impact especially, on the rural sector.
According to a survey about 63 percent of migrant workers came from the rural
areas (Gilani etal, 1981).

There was a
significant increase in poverty in the 1990s in Pakistan unfortunetly on the
base of slow and low growth, lack of social safety nets, decline in the flow of
remittances from overseas Pakistani workers, shedding of surplus labour by
state owned enterprises and deterioration in the quality of governance.

 

2.    WHAT IS RURAL POVERTY

 

The concept
of rural poverty is the low economic status of the rural population, having
poor facilities of health, education and living standard whether it counts
households or way through which anyone earns his livelihood. Rural population
is generally having fewer opportunities of employment, quality education, poor
transport system and poor health facilities. The rural population also tends to
be less healthy and less educated, as well as experiencing poorer service
delivery and limited employment opportunities.

 

3.     CONCEPTS AND ISSUES OF RURAL POVERTY

 

It is
witnessed that the large number of the population of developing countries lives
in the rural areas. Rural population also has fewer opportunities of
infrastructure and latest technological and scientific developmental facilities
to increase their agricultural profit. Poverty is more in the rural areas and
rural households are mostly affected by poverty.

The urban
part of any country is always got more attention than the rural part of the
country. So whenever anyone has to see the development of ant country, consider
the urban areas of the country so in the result rural areas always get
neglected and their issues are very rarely get attention.

The
negligence of governmental organization also counts in this phenomenon. Lack of
farming facilities also a big issue. Agriculture in Pakistan is not as much
advanced or developed as it is in china or any other developed country of the
world. An overall thinking of people about agriculture, consider agriculture as
an no advanced and backward profession to adopt and earn money through farming.
This consideration is also a big hurdle in the agricultural development.

Lack of
appreciation of farmers is also a cause that degrades farmers to work more hard
and be consistent.

There are
also some large areas of the whole country which are able to be farmed and for
agricultural production but not in use of farming.

Illiteracy
in rural areas of Pakistan is also a cause of poverty in rural Pakistan. Having
no knowledge about any rights given by the state and having no other
educational or technical skill except traditional way of farming is also a
cause.

 Rural areas are often less populated and the
density of population is low. So the infrastructure of the rural areas is not
so functional and large as it is seen in the urban areas. Infrastructure also
includes the health facilities, educational institutions, roads and transport
system, households, new technological advancements etc, they all lack in rural
areas. Lack of industrialization causes in lack of job opportunities and fewer
chances of employment except farming and livestock. The poor transport system
doesn’t let the farmers to reach to the markets to sell their crops in a time
saving period. Most of the daily life use products are natural and there is
very less amount of products that are factory made are used. Goods and services
are not as much advanced as in urban areas. The natural environment is very pure
and clean in rural areas. Education system is very in a bad condition in rural
areas and very few schools and colleges are there which do not give higher
education. Lack of technical institutions that gives skillful training.
Traditional values and norms are strictly followed by everyone. Law and order
situation is not very good in rural areas so the disputes are solved by
punchait or elders or influential people of the society. There is a lot of
resistance against new norms, values, technology and advancement in the rural
societies. Often the feudal system is there in the rural areas and this also
cause poverty in rural areas.

 

4.    LITERATURE REVIEW

 

A number of
studies have shown that the increase in human capital reduces the likelihood of
being chronic poor or transient poor. Such evidence from literature has been
seen in the milieu of the education of the head of the household (Wlodzimierz,
1999; Arif et al., 2011) as well as the education of the children to overcome
the persistent poverty (Davis, 2011). However, only formal education does not matter;
the innate disadvantages and lack of skills are also significantly associated
with chronic poverty (Grootaert et al. 1997). Regarding health, the inadequate
dietary intake triggers off a chain reaction, leading to the loss of body
weight and mutilation of physical growth, especially among children (Hossain and
Bayes, 2010). The households that have a permanent disable person are
relatively more likely to face persistent poverty (Krishna, 2011).

The rural
poor are widely dispersed, possess a variety of income sources and may be
ethnically diverse. Constructing an overview of rural poverty allows target
groups to be identified as a preliminary step to formulating coherent poverty
reduction policies. The most important source of diversity among the rural
poor, and between the poor and non-poor, is found in their sources of income
and patterns of expenditure. The rural poor commonly possess multiple sources
of income from agriculture, rural non-farm employment and transfer (private and
public). By focusing on the main income source of poor rural households, it is
possible to construct a simple typology of rural poverty groups. This typology
is illustrative. Many factors affect rural poverty.political stability, the quality
of governance, and macroeconomic and sectoral policies (Alderman et al, 2001).
The ILO Report (2003, p. 27) on ‘working out of poverty’ rightly remarks on
rural poverty as, A better understanding of the social and economic dynamics of
rural communities is critical to the reduction and eradication of poverty. The
world’s poorest countries are those most dependent on agriculture.
Three-quarters of the people in extreme poverty line in rural areas, usually
those remote from the main centers of economic activity or with the least
productive land. The starting point for such an analysis is an understanding of
the seasonal nature of farming and the high risk of crop failures, which cause
large fluctuations in the generally low incomes of rural populations,
particularly in areas with unreliable rainfall and poor soils.

 Agriculture is the core industry in most rural
areas, employing between half and two-thirds of the work force in the world’s
poorest countries and generating between a quarter and a third of national output
in many developing counties.

 

5.    SOME FEATURES OF RURAL AREAS

 

1. Rural areas are often less populated and the density of
population is low. So the infrastructure of the rural areas is not so
functional and large as it is seen in the urban areas.

2. Infrastructure
also includes the health facilities, educational institutions, roads and
transport system, households, new technological advancements etc, they all lack
in rural areas.

3. Lack of
industrialization causes in lack of job opportunities and fewer chances of
employment except farming and livestock.

4. The poor
transport system doesn’t let the farmers to reach to the markets to sell their
crops in a time saving period.

5. Most of
the daily life use products are natural and there is very less amount of
products that are factory made are used. Goods and services are not as much
advanced as in urban areas.

6. The
natural environment is very pure and clean in rural areas.

7. Education
system is very in a bad condition in rural areas and very few schools and
colleges are there which do not give higher education.

8. Lack of
technical institutions that gives skillful training.

9. Traditional
values and norms are strictly followed by everyone.

10. Law and
order situation is not very good in rural areas so the disputes are solved by
punchait or elders or influential people of the society.

11. There is
a lot of resistance against new norms, values, technology and advancement in
the rural societies.

12. Often
the feudal system is there in the rural areas and this also cause poverty in
rural areas.

 

6.    SPATIAL DIMENSIONS OF RURAL POVERTY

 

There are
significant differences between rural and urban areas, both are heterogeneous
and in most countries. Rural areas close to the major cities and other long
settled agricultural regions may be well connected to national and
international markets and have adequate supporting infrastructure and a range
of enterprises producing inputs and processing outputs of the agriculture
sector. In such regions the incidence of poverty may be relatively low.

 

Most  of the rural population who earn a living in
agriculture are small-scale farmers. They are often unable to produce money to
sustain their lives in a good way. Most of the rural population is in livestock
keeping, in which their whole dependency is on the water, fields and food for
their animals. While any program will be likely to focus on increasing the
level and value of production, determining what this might entail will require
strong participation of the potential beneficiaries. This is particularly
important with groups such as livestock herders who are often not well catered
for in agricultural development program because they may not always reside in
the same or may be of a different ethnic/linguistic groups then the majority.
Livestock serve multiple functions (income, food, traction, organic fertilizer,
savings and assets) and the relative values and potential outputs of these to
the poor are not always apparent, and emphasis must be placed on the needs of
the herders.

 

7.    AGRICULTURE AND RURAL ECONOMY OF
PAKISTAN

 

Pakistan is an
agricultural country. At the same time failure of agriculture to provide
opportunities for full employment and to give the rural population a standard
livelihood to survive and progress economically. The changing due to
agricultural technological advancement increased the yield but at the same time
it created problems to adopt and use of technology in the developing world.
However, the agrarian structure and the system of land tax have changed and
these changes affected the infrastructure of rural society. This transformation
in the agricultural field also a cause of political influences and land elites
who made the policies in the favor of elite land owners and benefited them
without knowing the needs of small farmers. In spite of these problems,
agricultural progress slowed down in the 1970s with the growth rate coming down
to 2 percent per annum due to mainly the lack and neglect of support services
especially agricultural extension, research and training which was needed as a
follow up to green revolution. The trend of diminishing returns, however, was
reversed by the end of 1970s as a result of favorable weather conditions,
better distribution of inputs and perhaps, price incentives offered to the
farmers, a subject which needs some explanation. Since the agricultural growth
has been modest and quite uneven. The most impressive record of agricultural
growth was in the 1960s, followed by the decades of the 1980s, with the same
reasons. In the last decade, agriculture has grown at an average rate of 3.5
percent per annum, which is lower in against the 1980s.

In 1950,
about 85 percent of Pakistanis lived in rural areas and over one half of GDP
was contributed by the agriculture sector. Notwithstanding the fact that non-agricultural
sources have become quite important contributors to the national income,
agriculture remains the key sector in terms of its backward and forward
linkages affecting the living standards of urban and particularly rural
households. The transition referred to above has seen brought about by several
factors, including

1.     Growth of output and diversification
of agriculture,

2.     Employment of labour in non-farm
activities and migration of rural labour to urban areas,

3.      Growth of population, and

4.      Changes in the pattern of land ownership,
tenurial relations and parcelization of landholdings due to the growth of
population and laws of inheritance. The issues of rural poverty and development
cannot be fully appreciated without examining several interrelated aspects of
changes in the agriculture sector. Rural areas are the major reservoir of
poverty in Pakistan and agriculture is the main activity on which most rural
people depend for their livelihood. To understand the determinants of rural
poverty, it is particularly important to examine the role of agriculture in
Pakistan’s economy and the nature of rural economy. The transformation of
Pakistan’s economy and the role of agriculture are reflected in Table 1. Though
the importance of agriculture has been declining in the overall process of
economic growth in the country, its contribution is still significant; it
engages 48.42 percent of the country’s labour force; creates about one-fourth
of the GDP. It is the largest source of foreign exchange earnings and meets the
raw material needs of the country’s major industries; namely, textiles and
sugar. A vast majority of the rural population – which is about 67 percent of
the country’s population – depends on agriculture for its income.

 

TABLE 1

  Role of Agriculture in Pakistan’s Economy

Year

Percentage
share of agriculture in GDP

Percentage
of rural labor force

Percentage
of rural population

1950

53

68

85

1960

45

59

78

1970

38

57

74

1980

29

52

71

1990

23

47

69

1995

22

45

65

2000

25

48

67.5

2002

24

48.42

67

Source: Khan
(1999) and Pakistan Economic Survey (various issues).

 

The highly
aggregate growth rates of agricultural output do not reveal important aspects
of growth and distribution. For one, not all sub-sectors in agriculture have
experienced sustained growth, which is amply demonstrated by serious commodity
imbalances within one crop year and over time. Second, not all growth in
output, even in those activities in which it has been experienced in any
significant way, has come from increased efficiency or at lower cost. Third,
the growth experience has been highly uneven between various regions even
within one province, particularly between regions with or without irrigation.
Of course, provinces with limited irrigation facilities and infrastructure have
been seriously handicapped. Finally, farm groups have also been affected
unequally, depending upon their access to land and other related income-earning
opportunities within agriculture or outside. All of these generalizations
cannot be demonstrated with precision mainly because of insufficient data, but
they are supported by a substantial body of evidence from studies based on the
scattered primary (farm-level) and secondary (aggregate) data (Khan, 1999, pp.
100-101). Farm credit can be a major source of acquiring new technology for an
efficient and profitable agriculture. Farmers in Pakistan have been greatly
constrained by the inadequacy of the credit market. Most of the credit acquired
by small farmers comes from non-institutional sources, including friends,
relatives; money lends traders, commission agents and landlords.

 

The total
area of Pakistan is about 80 million hectares (197 million areas) of which 27
percent is cultivated area, 11 percent is cultivable waste and 4.5 percent is
under forests (total 42.5%). The remaining 57.5 percent of the area consists of
deserts, mountains and is unsuitable for agricultural and forestry. The
land-ownership in Pakistan is highly concentrated. A large percentage of the
rural population, over 20 percent, is land-less which forms a class of
agricultural laborers. They sell their household labor in order to earn
livelihood.5 There have been three major attempts at land reforms in Pakistan
in 1959, 1972 and 1977. The land reforms of 1959 succeeded in acquiring a
surplus land of 2.53 million acres, representing about 4 percent of the
cultivated land. One evaluation found that as much as 0.93 million areas of the
acquired land consisted of uncultivated land, hills and riverbeds (Qayyum,
1980).

 

 

 

8.    SOLUTIONS TO ELIMINATE RURAL POVERTY

 

Constructing
good roads web to make transport and communication easy and time saving.

Make
industries and other employment opportunities for people of rural areas so they
don’t migrate towards urban areas for employment.

Arranging seminars
about farming techniques that could increase their profit in farming.

Promote
agriculture and farming which are the main sources of income in rural areas.

Government
should introduce schemes of financial assistance and loans for farmers of low
scale so that they could increase their productivity.

Industries
should be established in the rural areas so that the job opportunities created
and people not engaged in the agriculture get some source of earning money.

Health
facilities should be given to the people so that they do not spent a lot of
money in medication.

Avoid
corruption which is the most cause of poverty mainly in rural areas.

Promote
peace and unity in order to avoid political instability. This will attract
investors to invest in rural areas.

Market
access is important for farmers so that they could reach the markets easily to
sell their crops.

Researches
should be done in order to cope with the climate change and overcoming the
other agricultural problems.

Budget
should be increased for the development of agriculture.

Education
system should be regulate efficiently and number of educational institutions
should be increased.

Seminars
about the importance of education should be conduct.

Social
protection programs should be introduced for disable and old age people.

Encourage
and empowering women and female farmers in farming.

Equal access
of land, water, technologies and financial opportunities should be given to
everyone regardless men or women.

Promoting
the use of advanced farming techniques and their benefits and this could be
done by extension workers.

Land reforms
should be done after some years to meet the need of rural population.

 Build the resilience of rural communities to
cope with and recover from natural disasters.

 Strengthen the human capacities of rural
people. In that context:

 Create and develop educational programs for
rural communities aimed at disease prevention.

Improving
the access of rural people to new technologies and farming techniques.

Influence of
feudal system should be eliminated so that each one get equal opportunity to
progress.

 Invest in essential infrastructure and
services for rural communities.