May 4, 2003

THE state of South Asia’s agricultural economy and human development has failed to reduce poverty to the estimated extent, despite some consistent economic growth since 1960. The reason for this failure has been identified in the report under review. It says, “The challenge is to build a system of agriculture and rural development that is both growth-oriented and human centred. There is no apparent contradiction between increasing economic growth and improving human lives. But these two are not automatically linked, and that is why it is essential to develop policies and institutions that will connect economic growth with enrichment of human lives.”

The long-term goals of agricultural growth and rural development, along with employment and poverty reduction, cannot be achieved only through a macro-economic framework that relies on liberalization and deregulation to deliver growth. The goals of human development call for effective government interventions to address the issues of growth, poverty reduction and employment generation. Thus, there is an urgent need for a broader macro-economic policy framework that reinstates the crucial role of governments in promoting pro-poor economic growth and job- creating infrastructure development.

The report’s conclusion about land reforms is: “Despite large land inequalities in South Asia, the scope of land reform efforts has not been ambitious. The ceilings fixed in the land reform laws were relatively high and exemptions from the redistribution of land were liberal. Implementation of land reforms was entrusted to centralized government departments. Only a limited amount of land was redistributed to the small farmers. Tenancy reforms that gave security to tenants have fared somewhat better.” One has to witness the plight of peasants in Okara, Khanewal and Sahiwal (in the south of the country) to realize how we have failed in the area of distributive justice in the land sector. One is clueless how the officials of the state agencies have turned the green fields into the “killing fields”. Clashes between the state forces and tenants have claimed a number of poor farmers’ lives so far. Hundreds of tenants, including women, have been booked under various charges and arrested by local authorities.

State repression against tenants, most of them living below the poverty line, has reached unprecedented heights. The state is employing war-like tactics against its own citizenry and Okara gives a look of another Palestine! It is a tale of the government tenants facing the wrath of corrupt, arrogant, vindictive state- functionaries with a feudal-cum-colonial mindset.

Urban-based civil society organizations, especially those working for the welfare of the rural population and the “empowerment of the poorest of the poor”, media, political parties, and human rights activists know little or are indifferent to the plight of men, women and children in serfdom of a ‘feudal’ state. The matter is the question of life and death of the poor peasants. The situation has sent a wave of terror and shock in the country and abroad.

The report declares small farms to be central to the revival of agriculture and rural development. Low or no taxation on agricultural incomes encourages feudalism. A progressive land tax system provides an incentive for breaking the large farms into small farms. Agricultural land is used to evade tax by the urban elite. “Ineffective land reforms and the absence of other practices that could have increased access to land for the landless and the small farmers has been a major factor for the limited gains for the rural poor.”

The emerging multilateral trading system under WTO has far-reaching implications for food security in South Asia. To provide better access to food, it is necessary to increase the income of poor people. Better access to food depends on well-functioning markets and distribution networks, better infrastructure, adequate income and honest public servants. If agricultural markets are liberalized, the ability of countries to obtain affordable food supplies will depend on the countries’ ability to produce or purchase food.

The increasing population is an immense burden on limited resources of the region and a major impediment to human development. It must be contained. The region cannot increase yields through fertilizers, water, pesticides, or bringing more land under cultivation. The cultivable land is diminishing due to environmental degradation. It has to enhance the growth of agricultural production through improved water management.

The pace of technological progress in generating new varieties of crops has slowed down in South Asia. Future progress requires the spread of technology to a wider range of crops — both food and cash — as well as to less favourable areas. This poses a challenge to research and extension efforts. It is critically important to increase investments for this purpose, as all South Asian countries are under investing in agriculture knowledge systems, except India. It is also essential that available resources are used more efficiently. The importance of extension may be even greater in view of the need to focus on serving the small farmers, women farmers, and to increase the efficiency of input use.

Increased investments in small-scale irrigation, such as tubewells, focusing on small farmers and women, will be essential to improve their capability to increase productivity. On the other hand, large irrigation systems should be better managed and maintained, and free or highly subsidized provision of water to landlords and large farmers should be stopped. Input subsidies that were benefiting the rural elite should now be diverted to small farmers.

It is also important to provide price incentives to improve agricultural productivity. Pricing policy can be an effective instrument for guiding resource allocations in accordance with the socio-economic development agenda of the country. It can also facilitate technology adoption and increase resource productivity. Minimum guaranteed prices could help increase the production of food grains and other crops of national priority thus promoting the cause of food security and higher degree of self reliance which, left to the market forces may not be well served.

Effective implementation of price policy would not only lessen the dependence of small and marginal farmers on higher-cost non-institutional credit but also provide a conducive environment for increasing investment on farms and thus increase agricultural production.

 

Human Development in South Asia 2002: Agriculture and Rural Development

The Mahbub ul Haq Human Development Centre, Islamabad and Oxford University Press, Plot # 38, Sector 15, Korangi Industrial Area, Karachi. Tel: 111-693-673

Email: ouppak@theoffice.net  Website: www.oup.com.pk

ISBN 0-19-579893-7

242pp. Rs395

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