Sunday, February 22, 2009

Devolution

Impact of Decentralization on Agricultural Extension System: a case study of Sindh province of Pakistan




Aslam Memon, A. M. Khushk, & M.U. Mallah




Abstract




A study was conducted to asses the impact of decentralization in agricultural extension system in Sindh province of Pakistan. Two districts i.e. Badin and Hyderabad were selected to overview the existing agricultural extension services, financial resources and outcomes of extension worker after decentralization. Study findings show that majority (82%) extension workers had improved their activities; whereas, (72%) farmers claimed that there is no improvement in extension activities after decentralization. It was also investigated that Field Assistants do not receive Traveling Allowances/Daily Allowances (TA/DA) facilities but there is such facility for Agriculture Officers. Executive District Officer Agriculture (EDO) and District Officers (DOs) of respective districts reported that budget has been decreased up to 25 to 30 percent after decentralization. The research-extension-education linkages, which were already weak and insufficient, were further exacerbated. Coordination among all the line departments is sought through placing line departments under the supervision of one person EDO Agriculture at every district. Such coordination would improve the efficiency and effectiveness of the extension effort by avoiding duplication, wastage of time, energy and other resources. The existing system that prevent growers from receiving the correct and timely information, which led to decline in food crop production. There is need to bridge the gap between available knowledge about technologies and actual practice and information delivery service which is the missing link between the research-extension system. The main constraints in agricultural extension services are; inadequate qualified extension staff, lack of coordination, weak linkage among research and extension, farmers and their organizations, limited budget and lack of farmers participation in extension activities.




Key Words: Impact, Decentralization, Agriculture Extension, Pakistan




Introduction




Decentralization of government and administration has been adopted in many developed countries and this trend continues in developing countries. The rationale for the move is that decentralized administration shifts decision-making authority to lower administrative and political levels. These lower level units, being physically close to people, should be able to plan and implement programmes with active involvement of people. The concept is sound, but its implementation in developing countries has, so far, not been smooth for various reasons. For example, central governments have been reluctant in relinquishing their control over decision-making especially in finance; the decentralized units have been showing very weak capacity in running government affairs; and local politician have played havoc in exercising their authority, in an impartial and guided way.




The Agriculture Extension structure in Pakistan is perhaps the oldest organization within the Agriculture Department and is a continuation of the traditional system. It does not suit the present day requirements of a more progressive and integrated approach to agriculture. It is neither operationally attuned to the identification of farmers’ problems nor to a prompt response to their needs. The weaknesses, both in its structure as well as its methodology for transfer of technology to the farmers’, must be addressed on priority if the entire system of extension is to be strengthened and revitalized (Khan, 1998). The slowest progress has been in reforming the technology system, despite the fact that technical change has to play an ever larger role in future growth of agriculture, and is critical to sector competitiveness with liberalized markets. Research, extension, and education need both major institutional reforms and increased funding (Haque, 2002).




In addition, there are some specific problems related to agricultural extension and education. For example, in agricultural extension, there is a very weak mechanism for micro planning at village, Union Council, Markaz and Tehsil levels to mobilize farmers into different interest groups/organizations for enhancing productivity per hectare and marketing their produce. Similarly, Pakistan is faced with the problem of ideally conceived theoretical models, which do not fit into the local situations with special reference to farmers’ organizations, extension infrastructure and available human and financial resources.




An efficient functioning of any organization calls for necessary reforms and improvements in line with the changes in the working environment within which an organization operates. Without such reforms, the organization will either collapse or will keep working inefficiently and eventually become obsolete. Four years ago Government of Pakistan has taken bold decision to decentralize the powers at district level. In other words, district has become the focal point for agricultural activities to be planned and carried out with support of specialists in agricultural research and education.




Before devolution, each provincial department of agriculture had a Directorate-General of Agricultural Extension, administering a large extension network down to the union council level. A union council is a lowest tier of the local government system. Agricultural extension like several other bureaucratic agencies operates on a top-down approach maintaining tenuous linkages with agricultural research, education, and other farm-support system. In this system one Agriculture Officer (AO) guides, trains, and supervise about six to eight FAs. Six to eight AOs are in turn, guided and supervised by an Assistant Director (AD), who is in charge of Agriculture Extension at Sub-division level. Ads are supervised by a Deputy Director, Agriculture, who is in charge of extension work in the district. The Director of Agriculture is responsible for providing leadership at the division level. The overall head of the organization is the Director General. Agricultural extension like several other bureaucratic agencies operates on a top-down approach maintaining tenuous linkages with agricultural research, education, and other farm-support system. However, its level and intensity of operation varies from province to province (Malik, 2003).




Technically, decentralization is the shifting of powers from upper to lower tiers of government and it is more crucial in the process to weigh up and decide what is important and how the various issues are to be treated (Deller, 1998). Decentralization within extension services, and devolution within public administration of powers over the allocation of public funds to support local agricultural (and other) development, are important moves towards the evolution of client-driven processes (Garforth, 1997).






Reforms in the agricultural extension system are generally country specific. However three main ingredients are important for well-structured decentralized governments. First, clarity in assigning the responsibilities with hard budget constraints on nominal central government participation in local functions. Second, revenues must match with the functional responsibilities. Third, a system of accountability balancing central regulations against the local political participation. In short, system based on rules works better than system based on negotiations (Dillinger, 1995). In Pakistan, strengthening the functions of and empowering with more authority to the elected people representatives, the current government announced its devolution plan on August 14, 2001. According to the plan, functions of all service delivery line departments including agricultural extension were transferred from provinces to the newly elected district governments. The introduction of devolution plan is one of the efforts that government has made to introduce drastic changes and to provide bloodline to the existing setup. The plan helps in reducing the bureaucratic impediments and providing people better access to the resources in all the public service departments (Malik, 2003). It underscores the crucial importance of institutional reform, particularly in the domain of public systems, for sustained technical progress and output growth in agriculture. An outline of agrarian organization reveals the disadvantages of small units and the lack of evidence of significant scale economies in agriculture. Whilst there is no need for detailed government control where a commodity or service can be defined unambiguously and all have access (e.g. machinery or fertilizer), it is argued that privatization is not the solution in the case of public goods e.g. the scope for privatization is strictly limited in irrigation research, extension and other infrastructure facilities. Although such services will continue to be mainly the responsibility of the public sector, unless the public sector's efficiency in mobilizing resources and managing these facilities is vastly improved, trade and price policy reform will not make a significant difference to the pace of agricultural growth. It calls for decentralization not only from the center to the states, but also from the state to the local (district) level (Vaidyanathan, 1996).




In the new setup each district of Pakistan is managing its agricultural extension activities where the functions of all sister organizations such as water management, fisheries, livestock, soil conservation, forestry, etc; are put under one manager called as Executive District Officer of Agriculture (EDOA). The designation of Deputy Director Agriculture (DDA) has also been changed as District Officer Agriculture (DOA) who now works under the Executive District Officer Agriculture (EDOA). The EDOA reports to the District Coordination Officer (DCO) who is answerable to the elected District Nazim (administrator) whereas the line departments provide the technical backstopping and monitor the cross-district agricultural development projects. The provincial agriculture extension set-up in the form of Directorate General of Agriculture Extension continues to work and coordinate with the District Extension Services and provides technical support. DG Agriculture Extension retains the subjects of Agricultural Training and Information, Adaptive Research, In-Service Training, Plant Protection and Quality Control, Agricultural Planning and Statistics, and Coordination.




It is revealed that often extension services have been structured and operated on the assumption that farmers’ are largely passive, illiterate and therefore ignorant, and unable to innovate or to integrate new cropping and livestock practices into their established agricultural systems. Key issues that must be addressed are presented: farmers’ priorities in terms of advice and assistance to help them improve productivity on a sustainable basis; the best forms for providing advice and assistance; identifying those responsible for the maintenance of extension services; and how extension services should be funded (Anonymous, 1997). The progressive farmers’ at village level play a very important role in transferring new technologies to the neighboring farmers’ through demonstration and training (Rajbanshi, 1995). There was a general demand for improved information services. Farms of all sizes and types complained particularly of lack of rapid information on supply, demand and market prices of agricultural products (Svatosova et al, 1996).




The most important problems and constraints involved in organizing and managing extension services are: uncertain extension policies on which to build specific extension strategies, weak linkages between technology sources and users, lack of training and incentives for those involved in extension activities, limited financial and material resources, little focus given to women in extension programmes and poor managerial ability in transferring, adapting, managing, monitoring and evaluating imported technologies to improve the structure and effectiveness of extension services in the region. The most important of these is the need for a clear vision in extension policies allowing the formation of development strategies, institutionalization of linkages between the extension service and concerned bodies, farmer participation in planning and the strengthening of extension programmes which target women (Ahmed, 1994).




There is a need to thoroughly review and assess the impact of decentralization of agricultural extension services. Is it successful? Did it really achieve the purpose of making extension services more accessible to farmers? Did the local governments respond favorably as the lead in planning and implementing agricultural programs? What are the benefits that the farmers gain from the decentralization? These and other questions need to be answered in order to evaluate achievements of the purpose of decentralization. This study has been conducted to look at the impact of decentralization on agricultural extension, and identify possible areas of improvement for an effective and efficient devolved agricultural extension.




METHODOLOGY




The aim of this study was to conduct detailed investigation to assess the impact of decentralization in the agricultural extension system in Sindh. For this propose two districts i.e Badin and Hyderabad were randomly selected. The target population for this study consisted of district Nazim, District Coordination Officer, Extension Agents and progressive growers. The sample was selected from a list of farmers provided by the Department of Agriculture Extension using sampling techniques. The Agriculture Officers, Deputy District Officers and District Officers and Executive District Officer Agriculture were also interviewed from district Hyderabad and Badin. A questionnaire was developed through review of literature and guidance from the subject specialist in the area. The first part of the questionnaire included questions regarding selected demographic and socio-economic characteristics. The second part of the questionnaire consisted of impact of decentralization in the agriculture extension system.




Results and Discussion




Facilities




Impact assessment, simply defined, is the process of identifying the future consequences of a current or proposed action. Impact assessment is about making the best possible decision using the best available information in a systematic and proper manner. It is essential to a sound and sustainable business operation. It is also an essential part of good governance and a key to sustainable development. Efforts have been made during survey to assess the impact of decentralization on the department of Agriculture Extension, its facilities, financial resources and activities of extension workers after decentralization. As it is well known that, timely and availability of transport facility with extension worker may enhance working efficiency. It was found that majority (86 percent) of the agricultural extension staff reported that there is no change in transport facility, but in some places this facility has been decreased after decentralization. Also the housing facility for extension staff has been examined and it was found that this facility was not improved after decentralization but to some extent this facility has been decreased after decentralization. In addition to that medical facility of extension staff has been examined and found that Extension staff members did not have this facility before decentralization and same trend remain continue after decentralization.




The TA/DA facility of extension staff has been reviewed and it was found that this facility for extension staff did not improved after decentralization. The key informants reported that Field Assistants does not acquire any TA/DA but very little amount received by Agriculture Officers. Overall 48 percent respondents reported that this facility has been decreased.




Finance




From the extension staff it was asked that how decentralization affect the financial matters of agricultural extension system. All of the Agriculture Officers and Deputy District Officers reported that they are not involved in financial transaction and only EDO and District Officers deal financial matters. Deputy District Officers reported that they have not received any type of money for operational expenditure for the office. EDO and District Officers reported that budget has been decreased up to 25 percent to 30 percent in budget of Agriculture Extension after decentralization. They reported that before decentralization they received quarterly budget and after decentralization they are receiving budget on monthly basis which create problems in utilizing in different heads and also makes difficult to manage demonstration plots. In response to an opinion question, all DDOs are interested be involved in financial matters. They like to have authority to utilize budget at taluka level.




Activities




Wall Chalking


Wall chalking is one of the important activities of extension for transfer of new knowledge to farmers. It was investigated during discussion with farmers and extension agents about the improvements in wall chalking activities after decentralization. The extension agents 16%, 2%, 18%, 40% and 24% reported that no change, very little improvement, little improvement, much improvement and too much improvement respectively. Whereas, in case of farmers 46%, 16%, 16% and 22% pointed out that no change, very little improvement, little improvement and much improvement respectively (table 1).




Printed Material


Distribution of printed material among farmers is an important activity of extension department for transfer of new scientific information among farmers. The extension agents 16%, 8%, 22%, 40% and 14% reported that no change, very little improvement, little improvement, much improvement and too much improvement respectively in distribution of printed material after decentralization. Whereas, in case of farmers 62%, 14%, 12% and 12% reported that there is no change, very little improvement, little improvement and much improvement respectively in distribution of printing material (table 1).




Demonstration Plots


Demonstration plots are more effective source to motivate farmers to adopt new technologies on their farms so it was important to see how much improvement comes in this activity after decentralization. The extension agents 16%, 12%, 20%, 38% and 14% reported that no change, very little increase, little increase, much increase and too much increase respectively in demonstration plots. Whereas, in case of farmers 62%, 14%, 22% and 2% reported that no change, very little increase, little increase and much increase in demonstration plots respectively (table 1).




Printing of Agricultural Technologies


Printing of agricultural technologies in the shape of books booklets, magazines, newspapers and brochures etc are most important lies in the fact that the information may be kept and preserved as documentation for a long time and modern technology transferred from researchers to the farmers who are the end users. The impact on printing of Agricultural technologies was investigated from extension agents and results indicate that 20%, 8%, 28%, 36% and 8% reported that no change, very little increase, little increase, much increase and too much increase in printing of agricultural technologies respectively (table 1).




Seminars


Seminars are also very important activity in transferring technology among stakeholders. The improvement in frequency of seminars organized by agriculture extension was investigated from extension staff and farmers. The extension agents 26%, 14%, 12%, 42% and 6% perceived that no change, very little improvement, little improvement, much improve and too much improvement respectively in organizing of seminars after decentralization. Whereas, majority (62 percent) of farmers reported no change in organizing seminars by agricultural extension followed by 16%, 20% and 2% respondents reported very little improvement, little improvement and much improvement respectively (table 1).




Radio Programmes


Radio is an immensely powerful technology for the delivery of education and quick information with enormous global potential reach. Radio can motivate people by building on aural/oral traditions and stimulate the imagination better than video or television. These receivers are widely available, comparatively cheap and portable, making them convenient for listeners. Keeping in view the importance of radio as source of information, the use of radio for extension messages after decentralization was investigated from extension agents and farmers. The extension agents 18%, 24%, 36%, and 22% perceived that no change, very little improvement, little improvement and much improvement respectively in extension messages on radio after decentralization. Whereas, majority (62 percent) of farmers reported no change in extension messages on radio after decentralization followed by 26%, and 12% respondents reported very little improvement, and little improvement respectively (table 1).




Advice to Farmers


The timely advice to farmers provided by agriculture extension was investigated from extension staff and farmers. The extension agents 26%, 16%, 32%, and 26% reported that no change, very little improvement, little improvement, much improvement and too much improvement respectively in timely advice after decentralization. Whereas, majority (78 percent) of farmers reported no change in timely advice provided by agriculture extension after decentralization followed by 8%, and 14% respondents reported very little improvement, and little improvement respectively (table 1).




Farm Visits


Farm visit is the duty of extension agents, through this activity extension agents receive feedback from farmers and give them advices on the spot. The farm visits of extension staff were investigated from extension staff and farmers. The extension agents 36%, 10%, 32%, 20% and 2% reported that no change, very little increase, little increase, much increase and too much increase respectively in frequency of farm visits of extension staffs after decentralization. Whereas, 82 percent farmers reported no change in farm visits of extension staff after decentralization of agriculture extension remaining 16%, and 2% respondents reported very little improvement, and little improvement in farm visits of extension staff (table 1).




Farmers Training


Farmers’ training is an important activity of extension department to train farmers to use new technology. The increase in farmers trainings organized by agriculture extension after decentralization was investigated from extension staff and farmers. The extension agents 48%, 24%, 16%, and 12% reported that no change, very little increase, little increase, and much increase respectively in farmers training organized after decentralization. Whereas, 88 percent of farmers reported no change in farmers training after decentralization of agriculture extension followed by 8%, 2% and 2% respondents reported very little improvement, little improvement and much improvement in farmers training programs after decentralization (table 1).




TV Programmes


TV is a most powerful media of information exchange in these days. Keeping in view the importance of TV as a major source of dissemination of information among farmers, the use of TV for extension messages after decentralization was investigate from extension agents and farmers. Majority 56% of extension agents reported that there is no change in extension messages on TV followed by 22%, 12%, and 10% perceived that very little improvement, little improvement and much improvement respectively in frequency of extension messages on TV after decentralization. Whereas, 86 percent of farmers reported no change in extension messages on TV after decentralization and remaining 14% farmers reported very little improvement (table 1).




Exhibitions


The exhibitions arrangement after decentralization was investigated from extension staff and farmers. Majority 60% of extension agents reported that no change in agricultural exhibitions organized followed by 18%, 12%, and 10% perceived that very little improvement, little improvement and much improvement respectively in agricultural exhibitions organized by agricultural extension after decentralization. Whereas, all of the farmers reported that there is no change in agricultural exhibitions organized after decentralization of agriculture extension (table 1).






Market Information


Improvement in flow of market information to farmers was investigated from extension staff and farmers. Majority 80% of extension agents reported that there is no change in flow of market information followed by 10%, 8%, and 2% perceived that very little improvement, little improvement and much improvement respectively. Whereas, all sampled farmers reported there is no change in market information after decentralization of agriculture extension. In addition to that role of market agent after decentralization was examined from extension agents and farmers. All sampled extension agents and farmers reported no change in the role of market agent after decentralization (table 1).




Conclusion


Based on the initial investigation it can be concluded that extension agents known as agricultural educator's primary concern is to teach vocational and technical agriculture in all levels and undertake planning and evaluation in agricultural/rural development. They were responsible for the dissemination of appropriate technology in agriculture. While working condition in the existing system of extension personnel have been deteriorated, as it was expected that their role are increasing. They are no longer to be simply transmitters of technical knowledge.




The devolved agricultural extension services are anticipated to result an improved monitoring and evaluation setup in the country as the accountability of extension services is given to the elected local and district government representatives. The problems and issues of agriculture are now being addressed at the local level. Unlike past when everything was centralized with the provincial government, the task of planning and launching any specific campaign in case of outbreak of any disease rests with the district government. Moreover, an attempt has also been made to replace the existing supply oriented delivery system with the demand oriented system ensuring active participation of local people in the process of planning, monitoring and evaluation and bringing it down to the grassroots level.




There is a need of an effective coordination among all the line departments is sought through placing them under the supervision of one person EDOA at every district. Such coordination would improve the efficiency and effectiveness of the extension effort by avoiding duplication, wastage of time, energy and other resources.




On the other hand, it is widely perceived that the elected representatives of the district government are more inclined towards civil works, electricity and other development projects rather than promoting agricultural activities. Thus, their lack of interest and commitment towards agriculture affects the overall performance of agricultural extension system. As a result, the decentralization has further marginalized the extension services - - lack of recognition, importance, budget, and training facilities. It has also weakened the morale and motivation of the agriculture officers and staff. While under the decentralization, the agriculture extension service is placed under the district government and the other sister organizations such as agricultural research, adaptive research, agricultural engineering, agricultural education, etc; are under the control of provincial government. Therefore, the research-extension-education linkages, which were already weak and insufficient, were further exacerbated. The district extension service operates in isolation and without any regular backstopping from agricultural research. Likewise, its disassociation from the Directorate General of Extension has diminished the technical support it used to receive from the provincial system. Abrupt merger of livestock, dairy, fisheries, poultry, forestry, food, cooperatives, water management, and similar other departments with agricultural extension have created ample confusion. By virtue of seniority in service, at several places the officers from outside agricultural extension service became the EDOA. Apart from the professional performance, the extension service under the new arrangements is grappling with the creation of new rules, regulations, service structure and administrative and financial discipline. It seems that it will take a long time to achieve the desired objectives of the decentralization of agriculture extension service.




Results indicated that majority of the extension agents had reported improvement in all extension activities after decentralization but in other side a vast majority of farmers reported these is no change in all extension activities after decentralization. Majority 82 percent of the extension agents perceived improvement in overall performance of the agricultural extension. Whereas, majority 72 percent of the farmers reported there is no change in the overall performance of the agriculture extension after decentralization.




References




Anonymous 1997. Extension services: master or servant? Journal-article. Focus on countries within Africa. Spore, No. 68, 1-3; 3 ref.




Ahmed, A.H 1994. Experience with agricultural extension in the ESCWA region. Agriculture-and-Development-in-Western-Asia., No. 16, 24,31-40.United Nations Economic and Social Commission for Western Asia; Amman; Jordan




Deller, S.C. 1998. Local Government Structure, Devolution, and Privatization; Review of Agricultural Economics; 20:1, 135-154.




Dillinger, B. 1995. Decentralization, Politics and Public Services; in: A. Estache (ed.), Decentralizing Infrastructure: Advantages and Limitations: Washington, D.C: The World bank Discussion Paper.




Garforth,C. 1997. Supporting sustainable agriculture through extension in Asia. ODI-Natural-Resource-Perspectives. 21(4): Agricultural Extension and Rural Development Department, University of Reading, PO Box 258, Reading, RG6 6AL, UK. Overseas Development Institute; London; UK




Haque, U. I. 2002. Uplift of Landless Poor thru Agricultural Reforms: WB. The Dawn Group of Newspapers 29 April. http://Dawn.com






Khan, A. M. 1998. Restructuring of the Agriculture Department in NWFP. Unpublished Report presented by The Committee for Restructuring of the Agriculture Department in NWFP to the Chief Minister NWFP, Peshawar. December, 30.




Malik. W. 2003. Operationalizing Agricultural Extension Reforms in South Asia. A case study. Paper presented at Regional Workshop held in New Delhi, India. Organised by Ministry of Agriculture, Government of India. In Collaboration with The World Bank.




Rajbanshi,K.G. 1995 . Aquaculture extension services review: Nepal. FAO-Fisheries-Circular. 1995, No. 896, ix + 37 pp. CHA/2/835, Nursery Lane, Banslari,




Svatosova,L., Prasilova,M. 1996 Analysis of the state and needs of the Czech agricultural extension service. Zemedelska-Ekonomika. 42(10),PP 465-471. Ceska zemedelska Univerzita, 165 21 Prague 6-Suchdol, Czech Republic.




Vaidyanathan, A. 1996. Agricultural development: imperatives of institutional reform. Economic-and-Political-Weekly. 1996, 31: 35-36-37, 2451-2458; 18.





Table 1. Impact of Decentralization on Extension Activities















































































































































































Activities


Extension Agents


Farmers


No Change


Very Little Improvement


Little Improvement


Much Improvement


Too Much Improvement


No Change


Very Little Improvement


Little Improvement


Much Improvement


Too Much Improvement


Wall Chalking


16


02


18


40


24


46


16


16


22


-


Distribution of Printing Material


16


08


22


40


14


62


14


12


12


-


D. Plots


16


12


20


38


14


62


14


22


02


-


Printing of Agri. Technologies


20


08


28


36


08


-


-


-


-


-


Seminars


26


14


12


42


06


62


16


20


02


-


Radio Programmes


18


24


36


22


-


62


26


12


-


-


Timely Advice


26


16


32


26


-


78


08


14


-


-


Farm Visits


36


10


32


20


02


82


16


02


-


-


Farmers Training


48


24


16


12


-


88


08


02


02


-


TV Programmes


56


22


12


10


-


86


14


-


-


-


Exhibition


60


18


12


10


-


100


-


-


-


-


Flow of Market Information


80


10


08


02


-


100


-


-


-


-










ANNEXURE – I




ORGANIZATION CHART BEFORE DECENTRALIZATION OF
AGRICULTURE EXTENSION DEPARTMENT







ORGANIZATION CHART AFTER DECENTRALIZATION OF
AGRICULTURE EXTENSION DEPARTMENT







1




Poverty Article

The Role of Agriculture in poverty alleviation:


A case study of rural area in sindh




Dr. Ali Muhammad Khushk & Aslam Memon




Introduction




Pakistan’s economy is still predominantly agrarian in nature. Almost a quarter of GDP is contributed by the agriculture sector, and agriculture remains a direct source of livelihood for over 60% of country’s population living in rural areas. A record agriculture growth rate of 7.5% was registered during 2005-06, which is expected to significantly contribute to decrease in rural poverty. Based on existing on-going structural adjustments in Pakistan, agriculture is playing a key role in stability and growth of country’s economy. Main policy focus in agriculture has been ensuring food security for a growing population, expanding foreign exchange flow through agricultural exports and reduction of poverty through agriculture growth. To achieve these objectives, main policy initiatives adopted by government include increasing productivity and profitability of major crops, providing rural infrastructure and access to agricultural inputs, ensuring water availability and efficiency, and liberalizing commodity markets and trade regimes. Improving support services, especially for small farmers, enhancing efficiency and delivery capability of agriculture institutions, and providing an enabling environment for public-private partnership are other policy concerns of ministry of food, agriculture and livestock (MINFAL) Pakistan.




Poverty is a condition in which a person or community is deprived of, or lacks the essentials for a minimum standard of well-being and life. Since poverty is understood in many senses, these essentials may be material resources such as food, safe drinking water, and shelter, or they may be social resources such as access to information, education, health care, social status, political power, or the opportunity to develop meningful connections with other people in society. Poverty may also be defined in relative terms. Therefore income disparities or wealth disparities are seen as an indicator of poverty and the condition of poverty is linked to questions of scarcity and distribution of resources and power. It may be defined by a government or organization for legal purposes, see Poverty threshold. Poverty is also a type of religious vow, a state that may be taken on voluntarily in keeping with practices of piety. The problem of over-population has been even more serious in context of the developing countries like Pakistan.




Pakistan being an underdeveloped country is confronted with many problems. One of these problems is poverty. Poverty has many dimensions; the poor has not only low incomes, but also lack of access to basic needs such as education, health, clean drinking water and proper sanitation. The latter undermines their capabilities, limits their opportunities to secure employment, results in their social exclusion and exposes them to exogenous shocks. Therefore, poverty is a state of multiple needs such as food, clothing, education, medical relief, job opportunity and security and political and social freedom, all of which are essential for meaningful existence.




Absolute poverty indicates the position of an individual or household in relation to the minimum cost of food and a set of basic needs consistent with the spending pattern of the poor. All those who are unable to satisfy these needs are considered as poor. It is further divided into poverty based on caloric intake and basic needs.




The incidence of poverty in Pakistan has increased from 30.6 percent in 1998-99 to 32.1 % in 2000-01; severely impacted the rural economy of Pakistan. The rise in the incidence of poverty in 2000-01 as against 1998-99 may have reflected the effects of droughts.




Poverty alleviation has always been the priority objective of developing countries and the estimation of poverty status is considered as one of the important factors for future planning. Pakistan did not have an official poverty line until recently. Although a large number of estimates were available, their analyses were difficult. Therefore, various researchers have used their own methods to arrive at different poverty lines to measure the incidence of poverty. Some may use specific calorific requirements to draw their poverty lines at income levels sufficient to meet the food and non-food requirements. Some may use a basic needs approach which will include income as well as access to various services. Even in caloric requirement, some researchers may use 2550 calories per adult equivalent. While, others use 2350 calories and still others may use 2250 calories per adult equivalent. Some may use market prices to convert the expenditure into caloric intake while others may use prices. To draw a poverty line, some use consumption as the basis; while others use income of the households as the basis. Some researchers may use the same poverty line for rural and urban areas while others use different poverty lines for the two. Furthermore, even if the caloric requirements of all the researchers are the same, the poverty line will differ depending upon the methods applied to estimate these lines.




Poverty profile of respondents




Study results revealed that on an overall basis, 57% of the households were under the poverty line using criterion of Rs. 800 per person per month. Highest proportion of poor was recorded for tenants (70%) followed by non-agriculturist (59%), peasant proprietor (50%), and landlords (36%). These estimates appealed the policymakers for viable agriculture reform and economic package for agriculturists. Due to disparity between prices trends of inputs and agriculture produce, farming communities are continuously pushed under the poverty line since it was reported that input prices were increasing at higher rate than that of agriculture produce.




Poverty gap




Average income of per person per month of households falling under poverty line was recorded to be Rs. 487 while poverty gap was Rs. 313. This indicated that an economic boost of Rs. 313 was required to achieve the poverty line of Rs. 800 per person per month. Highest gap (Rs. 331) in income was recorded for the peasant proprietors and lowest gap (Rs. 203) for landlord. Poverty gap for non-agriculture households was Rs. 329 and for tenants was Rs. 319 table 1.




Table 1 Poverty Gap in Income









































Tenancy status


Average income of poor


Poverty gap


Std. Error of Mean


Non Agriculturist


471


329


52


Agriculturist


Landlord


597


203


59


Peasant


469


331


46


Tenant


481


319


40


Total


487


313


24




Table 2 indicate of lowest Sen Index of 0.12 for landlords and the highest (0.46) for tenants, while the overall index of the study area was about 0.36. Peasants’ index was recorded to be 0.35 which is pretty close to the overall index. Data collected from respondents belonging to non agriculture professions indicated index of 0.41. Increased input costs, stagnant output revenues, shortage of irrigation water, and poor quality of inputs have deteriorated economic conditions of tenants. Shanty villages, ragged clothes, children out of school, and gloomy look were the distinct features of poor tenants and the same were protesting to the policymakers, public and private institutions as well as multinational donor agencies that despite their big claims, the poor were going to be more poor. They were looking for agricultural and land reforms so that they could come out of poverty curse.




Table 2 Sen index estimation of the study area







































































N


Poor (P)


P/N


(A)


B – A


(B-A)/A



Non Agriculturist


22


13


0.59


471


329


0.70


0.41


Agriculturist


Landlord


14


5


0.36


597


203


0.34


0.12


Peasant


24


12


0.50


469


331


0.71


0.35


Tenant


30


21


0.70


481


319


0.66


0.46


Overall


90


51


0.57


487


313


0.64


0.36




Where as P = number of people below the poverty line


N = total number of people in society


B = poverty line income


A = average income of those people below the poverty line




About 57% of the total households were under poverty line. Although various studies contradicted each other in calculating proportion of poor under poverty line in Pakistan. On national level, about one-third of the population was pronounced to be under poverty line. However, the present study estimated much higher proportion than reported. The poverty estimate of the present study can be supported by Syed (2005) that one out of every two persons (50%) is under poverty line. The poverty estimate of this study exactly coincide with Arif and Ahmed (2001) who reported that in wheat cotton zone of Sindh, the poverty incidence was about 57%. Based on World Bank (2002) report that in rural Pakistan nearly 57% of the households were prone to falling into poverty as they were clustered around the poverty line


 


Relatively more proportion (59%) of the non-agriculture households were under the poverty line. Similar findings were reported by Qureshi and Arif (1999) that higher incidence of poverty was among the non-farm households in all provinces of Pakistan. Kemal (2003) reconfirmed the same findings as well.


 


On an overall basis, Sen Index was about 0.36 while highest index (0.46) was recorded for tenants and lowest (0.12) for landlords, which revealed that with little economic boost, quite a good proportion of landlords can come out of poverty menace. Gini coefficient was calculated to be 0.43 which revealed moderate inequality in distribution of income in the study area.




Conclusions




Estimates of the survey revealed that average household size was of 10.5 members (male adults 2.92; female adult 2.81; male minor 2.48; and female minor 2.31). More than three-forth (76%) of the population was directly related with agriculture while only 24% of the households were engaged with non-agricultural professions. Among agriculture related categories, majority (56%) of the households were tenants. Total farm size was 11.7 acres. Largest farm size (17.25 acre) was recorded for landlords followed by peasant proprietors (12.39 acres) and tenants (8.45 acres). Wheat (91%) and cotton (81%) were major crops of rabi and kharif seasons respectively while they were less profitable crops in comparison of sugarcane and banana cultivated by only 4 and 13% respectively. Small profit margins of Rs. 6000 and 8200 were recorded for wheat and cotton, respectively while higher profit margins of Rs. 28,000 and 42,500 were reported for sugarcane and banana respectively. The higher proportions of total input costs to total revenue were recorded for wheat (50%) and cotton (46%) respectively in comparison of higher profitable crops namely sugarcane (30%) and banana (39%).




Major problems of the farming community were shortage of irrigation water, high prices of inputs, low prices of agriculture produce, and shortage of quality supply of inputs particularly seed and pesticides. Average income of a household was estimated at Rs.9573. Lion’s share (57%) was contributed by agriculture (49.7% crops and 7.7% milk). On an overall basis, income per person was Rs.1019 while income per person of non-agriculture households was relatively low (Rs.708). Likewise, about 57% of the total households were under poverty line while relatively more proportion (59%) of the non-agriculture households were under the poverty line taking criterion of Rs.800 per person per month. From this, it was inferred that agriculture played pivotal role in enhancing income of rural households. Average income per person of households under poverty line was Rs.487 and poverty gap was Rs.313. Among agriculture households, lowest income of Rs.481 with poverty gap of Rs.319 was recorded for tenants. On an overall basis, Sen index was about 0.36 while highest index (0.46) was recorded for tenants and lowest (0.12) for landlords, which revealed that with little economic boost, quite a good proportion of landlords can come out of poverty menace. Gini coefficient was calculated to be 0.43, which revealed moderate inequality in distribution of income in the study area.




Recommendations




On the basis of conclusions drawn from primary data analysis and qualitative inferences, the following policy suggestions and recommendation for poverty alleviation were developed:






  • International trade can expand markets, facilitate competition and disseminate knowledge, creating opportunities for growth, poverty reduction and human development.






  • Trade can also raise productivity and increase exposure to new technologies, which often spurs growth.






  • Nevertheless, cross-national comparisons reveal no systematic relationship between countries’ average levels of tariffs and non-tariff barriers and their subsequent economic growth.






  • Opening and excess of Agriculture Markets






  • Raising Unskilled Labor Wages






  • Boosting Productivity






  • Inducing Investment






  • An early harvest: free market access for poor nations






  • Efforts may be taken to reduce the household size. Family planning measure may be expedited to control rapid increasing population which is depleting natural resources i.e. water and land per capita at the faster rate.






  • Literacy ratio may be increased. Viable educational programs may be developed and effectively implemented to enhance enrolment ratio in schools. Special efforts may be taken for female education. Vocational education may be imparted for females so that they could be able to generate income. Training programs particularly focusing on profitable crops and raising livestock and poultry may be arranged for capacity building of farmers to enhance their incomes.






  • Water may be supplied during crop growing seasons. Efforts may be taken for equitable and judicious use of irrigation water. In this regard, a viable social mobilization program may be initiated. Training program on the different methods of efficient use of irrigation water may be imparted.






  • Quality inputs i.e. seed, pesticide and fertilizers may be supplied during cropping season. Price of inputs may be increased at par with that of agriculture produce. In this regard, price commission may develop a viable model on agricultural input and output prices.




Marketing infrastructure may be improved to enhance the profit margins in comparison of intermediaries. Cold storages may be developed to stabilize the prices of agricultural products especially for fruits and vegetables. Efforts may be taken for the export of agricultural products.