Advanced Search
MyIDEAS: Login to save this article or follow this journal

Employment Multipliers from Agricultural Growth and Poverty Reduction

Contents:

Author Info

  • John W. Mellor

    (Abt Associates, Inc., Washington, D. C.)

Registered author(s):

    Abstract

    Poverty is still a major problem in Pakistan. Worse, the excellent progress made in poverty reduction in the 1970s and 1980s has been reversed in the 1990s. That is the bad news. The good news is that Pakistan is unusually well placed to return to rapid reduction in poverty. We have long known that agricultural growth is closely related to poverty reduction. Recent studies by Peter Timmer and by Martin Ravallion and their colleagues provide massive statistical evidence of this relationship. Rural growth and agricultural growth have a major effect on poverty reduction; urban growth and manufacturing growth do not. At first glance that is strange because farmers are not the poorest rural people, and the direct benefits from agricultural growth are distributed roughly proportionately to size of landholding. The poor in rural areas are heavily concentrated in the rural non-farm sector. They produce non-tradable goods and services. That is, local demand is essential to their growth. It is rising agricultural incomes that provide that growth in local demand. Thus, agriculture’s massive impact on poverty is indirect, working through expenditures on the rural non-farm sector. The bulk of those expenditures are for consumption goods. Pakistan has unusually productive resources that are highly responsive to the favourable forces of globalisation and technological change. In the 1970s and 1980s the agriculture of Pakistan grew at better than four percent per year, sufficient to reduce poverty levels rapidly. To return to those growth rates requires several public actions. Institutional reform in the irrigation system needs to reverse the losses that have occurred from poor management. There must be increased expenditure on the agricultural research and extension systems and that expenditure must be subject to a few priorities and increased efficiency. The rural road and education systems need to be massively expanded. Much more emphasis needs to be placed on expansion of the high value horticultural sector for which Pakistan has a strong comparative advantage in international markets. Those actions can be expected to bring a return to high growth rates in the four to six percent range and a resumption of rapid decline in poverty and its virtual elimination in a ten to twenty year period.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.pide.org.pk/pdf/PDR/2001/Volume4/371-400.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

    Volume (Year): 40 (2001)
    Issue (Month): 4 ()
    Pages: 371-400

    as in new window
    Handle: RePEc:pid:journl:v:40:y:2001:i:4:p:371-400

    Contact details of provider:
    Postal: P.O.Box 1091, Islamabad-44000
    Phone: (92)(51)9248051
    Fax: (92)(51)9248065
    Email:
    Web page: http://www.pide.org.pk
    More information through EDIRC

    Related research

    Keywords:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Lipton, Michael & Ravallion, Martin, 1993. "Poverty and policy," Policy Research Working Paper Series 1130, The World Bank.
    2. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
    3. Haggblade, Steven & Hazell, Peter & Brown, James, 1989. "Farm-nonfarm linkages in rural sub-Saharan Africa," World Development, Elsevier, vol. 17(8), pages 1173-1201, August.
    4. Delgado, Christopher L. & Hopkins, Jane & Kelly , Valerie & Hazell, P. B. R. & McKenna, Anna A. & Gruhn, Peter & Hojjati, Behjat & Sil, Jayashree & Courbois, Claude, 1998. "Agricultural growth linkages in Sub-Saharan Africa:," Research reports 107, International Food Policy Research Institute (IFPRI).
    5. Datt, Gaurav & Ravallion, Martin, 1998. "Farm productivity and rural poverty in India," FCND discussion papers 42, International Food Policy Research Institute (IFPRI).
    6. Liedholm, Carl & Mead, Donald C., 1987. "Small Scale Industries in Developing Countries: Empirical Evidence and Policy Implications," Food Security International Development Papers 54062, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Squire, Lyn, 1993. "Fighting Poverty," American Economic Review, American Economic Association, vol. 83(2), pages 377-82, May.
    8. Hazell, P. B. R. & Roell, Ailsa, 1983. "Rural growth linkages: household expenditure patterns in Malaysia and Nigeria," Research reports 41, International Food Policy Research Institute (IFPRI).
    9. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
    10. Hossain, Mahabub, 1988. "Credit for alleviation of rural poverty: the Grameen Bank in Bangladesh," Research reports 65, International Food Policy Research Institute (IFPRI).
    11. Ravallion, Martin, 1995. "Growth and poverty: Evidence for developing countries in the 1980s," Economics Letters, Elsevier, vol. 48(3-4), pages 411-417, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Abdul Saboor & Zakir Hussain, 2005. "The Dynamics of Rural Poverty in Pakistan: A Time Series Analysis," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 10(1), pages 1-14, Jan-Jun.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:40:y:2001:i:4:p:371-400. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.