Rural Poverty and Land Degradation: A Review of the Current State of Knowledge

By highlighting the lack of rigorous evidence and calling for a greater understanding of the interaction of the two processes, a recent study [Nelson et al. (1997)] has called into question the strong perception that poverty is both a consequence as well as a cause of resource degradation. This perception which is widely held is strongly evident in the writings of the multilateral development agencies such as the World Bank (1990) and IFAD (1992) and exists despite extensive reviews which indicate that the short- and long-term implications of land degradation are not very clear [see Scherr and Yadav (1995)]. Similarly, while knowledge about poverty is expanding rapidly, thanks in large parts to the massive international focus and resources brought to bear on its understanding in the past ten years or so; the existing state of knowledge is still far from providing a comprehensive understanding of all the complex dimensions of its processes. The understanding of the interactions of poverty and land degradation is even less clear and limited. This paper reviews the existing knowledge about the relationship between poverty and land degradation and draws implications for research.

Rural Poverty and Credit Use: Evidence from Pakistan

The 1990s have seen poverty reduction become the overarching objective of all economic development. In countries where poverty is largely a rural phenomenon it is obvious that considerations of poverty focus on improving rural welfare. The welfare impact of credit use in the process of agricultural development is generally not explicitly documented in the literature.1 The emphasis is generally on “the requisites for development of rural financial policies that facilitate rural growth” [Desai and Mellor (1993)]. Welfare gains arise from this growth through net gains in income from the relaxation of the capital constraint leading to higher input use and resultant higher output, in addition to increasing the risk bearing capacity of households thus leading to the adoption of new technology and diversification of crop mix and income sources. Additionally welfare gains can also arise from credit use directly through improved and more efficient consumption smoothing. Pakistan is predominantly rural and poor. Attempts over several decades, by successive governments, at developing the institutional credit market in Pakistan have failed miserably. The rural credit market continues to be fragmented and beset by distortions. Credit policy aimed at improving access of the small landowners and the poor ended up being diverted to the powerful large landowners. This misuse is widely documented in Malik (1989, 1990 and 1999). Badly designed policies coupled with a weak institutional structure and rampant corruption called into question the very basis for using credit markets as a means for poverty alleviation. This paper, therefore, attempts to evaluate the underlying relationship between rural poverty and credit use.

Solving Organisational Problems with Intranet Technology

Information serves as an essential intermediate input in decision-making for any business process. It is an essential requirement not only for effective and efficient management but also for medium and long term planning. In this era of technological advancement the rapid growth of information flow has contributed significantly in the expansion of business, commercial, industrial, financial, educational and research organisations. Electronic communication provides the ability to overcome many organisational problems. In recent years, an easy and inexpensive access to information through the Internet and e-mail has created an atmosphere of strong competition among organisations. In this competitive environment, the organisations need an efficient, productive and competent internal set-up based on a well-informed workforce. In the absence of effective co-ordination, the expansion of an organisation may result in inter-group conflicts, unhealthy bureaucratic activities, and various complexities in decision-making [Telleen (1996)]. This applies even more to organisations in developing countries such as Pakistan that are in need of efficient ways to improve governance and enhance institutional reforms.

Rural Poverty and Credit Use: Evidence from Pakistan

The 1990s have seen poverty reduction become the overarching objective of all economic development. In countries where poverty is largely a rural phenomenon it is obvious that considerations of poverty focus on improving rural welfare. The welfare impact of credit use in the process of agricultural development is generally not explicitly documented in the literature.1 The emphasis is generally on “the requisites for development of rural financial policies that facilitate rural growth” [Desai and Mellor (1993)]. Welfare gains arise from this growth through net gains in income from the relaxation of the capital constraint leading to higher input use and resultant higher output, in addition to increasing the risk bearing capacity of households thus leading to the adoption of new technology and diversification of crop mix and income sources. Additionally welfare gains can also arise from credit use directly through improved and more efficient consumption smoothing. Pakistan is predominantly rural and poor. Attempts over several decades, by successive governments, at developing the institutional credit market in Pakistan have failed miserably. The rural credit market continues to be fragmented and beset by distortions. Credit policy aimed at improving access of the small landowners and the poor ended up being diverted to the powerful large landowners. This misuse is widely documented in Malik (1989, 1990 and 1999). Badly designed policies coupled with a weak institutional structure and rampant corruption called into question the very basis for using credit markets as a means for poverty alleviation

Rural Poverty and Land Degradation: A Review of the Current State of Knowledge

By highlighting the lack of rigorous evidence and calling for a greater understanding of the interaction of the two processes, a recent study [Nelson et al. (1997)] has called into question the strong perception that poverty is both a consequence as well as a cause of resource degradation.1 This perception which is widely held is strongly evident in the writings of the multilateral development agencies such as the World Bank (1990) and IFAD (1992) and exists despite extensive reviews which indicate that the short- and long-term implications of land degradation are not very clear [see Scherr and Yadav (1995)]. Similarly, while knowledge about poverty is expanding rapidly, thanks in large parts to the massive international focus and resources brought to bear on its understanding in the past ten........................

Source structure and utilisation of rural credit and allied problems in Pakistan

In this study an attempt has been made to look at the effectiveness of credit in the process of agricultural development, given the existing source structure and utilisation patterns of rural credit in Pakistan. The study focuses on the borrowing behaviour of the small farm and tenant farm categories, relative to the other farm categories in Pakistan. In the light of the economic, socio-cultural, historical and religious background of the area, the study identifies a set of factors that could affect the productive utilisation of credit. The study, using data from a large benchmark survey - the Rural Credit Survey of Pakistan, 1972-73 - looks specifically at: 1) the problem of differential 'access’ to sources of credit 2) the role of institutional credit 3) the extent, nature and scope of non institutional credit 4) the utilisation patterns of credit, especially the relative importance of credit utilisation for purposes of current on farm expenditure and for consumption expenditure and expenditure on s.ocial ceremonies. The analysis was severely constrained by limitations of data, arising out of the survey questionnaire design, the range of data available from the survey for analysis and the form in which it was available. In the light of these data constraints the study finds that 'access' to institutional credit is dominated by the large farm and owner farm categories and that institutional credit plays a small almost insignificant role in the borrowing of the small farm and tenant farm categories. As a corollary to the dominance of non institutional credit, the study finds the existence of large scale (over 86 per cent of total) borrowing at zero rate of interest (nominal and explicit). The study also finds that credit utilisation for purposes of current on farm expenditure is relatively low in all farm categories, whereas credit utilisation for purposes of family consumption and for social ceremonies is relatively much higher, especially in the case of the small farm and tenant farm categories. The findings of this study seem to support the assertion that non institutional credit is largely "non productive" and in-the existing set up, credit on the whole is not playing its desired role in agricultural development. The study highlights the constraints that exist to the effective utilisation of credit, the removal of which can hopefully lead to a catalytic role of credit in the overall agricultural development of Pakistan

Solving Organisational Problems with Intranet Technology

Information serves as an essential intermediate input in decision-making for any business process. It is an essential requirement not only for effective and efficient management but also for medium and long term planning. In this era of technological advancement the rapid growth of information flow has contributed significantly in the expansion of business, commercial, industrial, financial, educational and research organisations. Electronic communication provides the ability to overcome many organisational problems. In recent years, an easy and inexpensive access to information through the Internet and e-mail has created an atmosphere of strong competition among organisations. In this competitive environment, the organisations need an efficient, productive and competent internal set-up based on a well-informed workforce. In the absence of effective co-ordination, the expansion of an organisation may result in inter-group conflicts, unhealthy bureaucratic activities, and various complexities in decision-making [Telleen (1996)]. This applies even more to organisations in developing countries such as Pakistan that are in need of efficient ways to improve governance and enhance institutional reforms

Food Consumption Patterns and Implications for Poverty Reduction in Pakistan

The global food crisis of mid-2000s resulted in a several-fold increase in the prices of essential food items. Resultantly, the incidence of food insecurity, hunger, and poverty has increased in many developing countries [Ivanic and Martin (2008); Harttgen and Klasen (2012); De Hoyos and Medvedev (2009); World Bank (2010); Regmi and Seale (2010); Andreyeva, et al. (2010). Pakistan is also hit hard by this crisis. Prices of several food items increased by more than a 100 percent since 2006-07. Consequently, nearly half of the population is currently unable to meet its minimum (subsistence) caloric requirements for healthy and productive living [Malik, et al. (2014)]. A large proportion of household expenditure is spent on food (on average about 48 percent in 2010) and thus very little is left for the other expenditures necessary for human welfare, such as, health and education. Moreover, dietary diversity is extremely limited. Nearly 70 percent of food expenditure is on cereals, dairy, sweeteners, and fats. Wheat is the major source of calories, providing about half of the total daily calories [Malik, et al. (2014)]. However, the price of wheat increased by 125 percent between 2005-6 and 2010-11. Existing analyses indicate that these price shocks entail significant additional expenditures to maintain their pre-crisis consumption levels [Haq, et al. (2008); Friedman, Hong, and Xiaohui (2011)]. There is thus overwhelming evidence that rising food prices and the decline in real wages have serious implications for poverty, food security, and nutrition through food consumption patterns in the countr

Inclusive Agricultural Growth in Pakistan— Understanding Some Basic Constraints

Inclusive agricultural growth is important for overall economic growth and particularly critical for rural socio-economic stability and poverty reduction in Pakistan. The majority of Pakistan‘s population and 44 percent of the overall labour force are dependent upon agriculture which only accounts for a little over 20 percent of national GDP. The paper highlights some basic constraints that have not been explicitly addressed in the policy research and implementation and have impeded inclusive agriculture growth. A descriptive analysis based on data from the Agriculture Census of Pakistan and the Pakistan Household Income and Economic Survey—both of which were conducted in 2010-11—is used to show how high levels of poverty and its disparity across regions, combined with the declining size of operated holdings and associated fragmentation especially in the smallest size categories which now form over 60 percent of the agricultural holdings in Pakistan, are fundamental constraints. Poverty is both the result as well as the consequence of fragmented markets, weak institutions including governance; and, inadequate policy research and implementation. A better research based policy understanding of some basic constraints, and the variations across regions in such factors such as the declining size and fragmentation of operated farms, rural poverty; and, the levels of market development and institutions is essential along with effective implementation. One size fits all policies have not and will not work. JEL Classification: O40, Q15, I32, P46 Keywords: Inclusive Growth, Land Holding, Land Tenure, Income Distribution, Povert