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Rethinking Development Strategy –The Importance of the Rural Non Farm Economy in Growth and Poverty Reduction in Pakistan

Author

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  • Sohail Jehangir Malik

    (Chairman, Innovative Development Strategies (Pvt) Ltd.)

Abstract

The structural transformation of Pakistan’s economy has not been accompanied by a concomitant decline in the proportion of labor employed in agriculture. While this transformation has resulted in a non-farm sector that is large and growing it has not lead to the rapid absorption of the pool of relatively low productivity labor away from the agriculture sector, as predicted by conventional development theory embodied in the models of the 1960s. Despite the obvious importance of the role of a vibrant rural non-farm economy (RNFE), and in particular, a vibrant non-farm services sector to address the challenges of poverty, food security, agricultural growth and rural development, thissector has received inadequate attention in the debate inPakistan. Based on a review of literature and data from two large surveys – the Rural Investment Climate Survey of Pakistan 2005 and the Surveys of Domestic Commerce 2007 – this paper attempts to analyze the factors underlying the low level of development of the rural non farm economy and the potential role it can play in Pakistan’s economic development.

Suggested Citation

  • Sohail Jehangir Malik, 2008. "Rethinking Development Strategy –The Importance of the Rural Non Farm Economy in Growth and Poverty Reduction in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 13(Special E), pages 189-204, September.
    • Handle: RePEc:lje:journl:v:13:y:2008:i:sp:p:189-204
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    Citations

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    Cited by:

    1. Rakhshanda, Kousar & Awudu, Abdulai, 2013. "Impacts of rural non-farm employment on household welfare in Pakistan," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149890, Italian Association of Agricultural and Applied Economics (AIEAA).
    2. Mellor, John W. & Malik, Sohail J., 2017. "The Impact of Growth in Small Commercial Farm Productivity on Rural Poverty Reduction," World Development, Elsevier, vol. 91(C), pages 1-10.

    More about this item

    Keywords

    Pakistan; Poverty; Rural; Development;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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