Lecture 2:Perspective on Rural Development Shakeel Hayat 26 th April 2012

Lecture Outlines What is Rural development International experience with Rural Development Rural Development in Pakistan Rural Development Planning in Pakistan Rural Poverty in Pakistan

What is Rural development Rural Development generally refers to the process of improving the quality of life and economic wellbeing of people living in relatively isolated and sparsely populated areas or Rural Development in general is used to denote the actions and initiatives taken to improve the standard of living in non- Urban areas.

International Experience With Rural Development On the basis of international experiences with territorial development, we derive a set of principles for success of the approach: 1.The incidence of rural poverty has generally not declined and the number of rural poor has increased a.The incidence of extreme poverty has remained at 28% over the last 30 years b.In Mexico, the incidence of rural poverty has remained in the 45 to 50% range since 1970 c.Brazil is the only country with a significant decline in rural poverty, especially in the 1990s 2.Rural inequality is exceptionally high and increasing a.High inequality is a well known feature of Latin Americansocieties b.For rural communities in Ecuador, 86% of total inequality is explained by within-community inequality and only 14% by between community inequality

International Experience With Rural Development 3.Social development has improved, even though gaps between rural and urban social development remain large a.There has been remarkable progress with social development, particularly education and health for the poorest b.Latin America is failing to meet the Millennium Development Goals in poverty reduction c.In Colombia, illiteracy rates have been halved between 1978 and 1999 and school enrolment has increased by 37% in primary school and 52% in secondary school d.Rural standards remain inferior to urban standards and uneven across rural regions e.In Honduras, vaccination rates have increased by 90%, births in hospitals by 43%, and population with access to water and sanitation by 60%

International Experience With Rural Development 4.Urban migration has been the great escape valve in preventing a larger increase in rural poverty. Poverty has been displaced toward the urban environment. a.The number of urban poor has increased faster than the number of rural poor b.Migration is the main contributor to the displacement of poverty from rural to urban areas c.In Latin America the share of urban population growth due to internal migration and relocation was 40% in the 1960s, 41% in the 1970s, and 34% in the 1980s d.The missing task for rural development is consequently to help retain populations in rural regions, while reducing the incidence of poverty among rural populations

Rural Development in Pakistan Pakistan: Some Facts Area: 796,095 sq. km. (Second largest in South Asia) Admn Division: 4 provinces, Federally Administered TA/NA and GB Population: 149 million Literacy: 48% Per capita GNP: US$ 492 Poverty: 33% pop. below poverty line Over 50,000 villages Population: 61% of total Literacy: 37% (in women 10%) Occupation: Agriculture (24% of GDP employs 48% of total work force) Problems: Poor living standard Poor education Poor health Lack of clean drinking water Improper sanitation Poor communication

Rural Development in Pakistan The overall goal of the Rural Development Programme in Pakistan is to improve the socio-economic conditions of the people of Pakistan by Supporting: Institutional Development Infrastructure Development (Roads, Irrigation Projects and Modern technologies in agriculture sector etc.) Natural Resource Management Women’s Development Rural Financial Intermediation Enterprise Development A number of international donors have supported the programme for the last 3 decades. These donors include the governments of Canada, UK, USA, Japan, Switzerland, Netherlands, Norway, Pakistan and European Commission.

Rural Development Planning In Pakistan Pakistan's medium term development planning also called Medium Term Development Framework (MTDF) began in By 1950 a six-year plan had been drafted to guide government investment in developing the infrastructure: Pakistan had nine medium term development plans: First Five-Year Plan ( ) (to develop the resources of the country) Second Five-Year Plan ( ) (Repetition of 1 st along with Education for all) Third Five-Year Plan ( )(Planned develop; and removing imbalances) No Plan Period ( ) (Diversification and economic growth) Fifth Five-Year Plan ( ) Volume 2 (Agriculture modernization) Fifth Five-Year Plan ( ) Volume 1 (Cont... of the previous one) Sixth Five-Year Plan ( ) (Sustainable Development) Seventh Five-Year Plan ( ) (Cont.... Of the 6 th plan) Eighth Five-Year Plan ( ) (Public-private partnership) MTDF ( ) (Science and Technology for growth) Source:

Rural Poverty In Pakistan Two thirds of Pakistan’s population, and 80 per cent of the country’s poor people, live in rural parts of the country Nearly 24% of the people were living below the national poverty line however, the percentage of poor people had declined about 10 per cent since 2001 Health and education indicators remained low in comparison with other countries in South Asia Socio-economic indicators for women are the lowest in the sub-region About 17 million people are food insecure and many more are at risk i.e. about half of the country’s population lives in a condition of food insecurity Lack of access to markets and services has contributed to chronic poverty in rural areas Women have limited economic options and less access to social services Lack of education, poor access to health services, large family size, gender discrimination and vulnerability to environmental degradation and deterioration of the natural resource base are the main causes of poverty