Document Type

Conference Paper

Publication Date

10-22-1982

Conference Name

Mid-Atlantic Regional Conference of Association of Asian Studies

Conference Location

University of Pittsburgh, Pennsylvania

Conference Dates

October 22-24, 1982

First Page

1

Last Page

3

Keywords

Development, Economy, Pakistan

Abstract / Description

Pakistan has followed different development strategies during the past 35 years. From a purely growth-oriented to ega1itarin strategy on the two extremes, there have been several variants in between. The emphasis on development plans and programs up to 1971 - the separation of the two wings - was clearly on increasing the average level of income and very little attention was paid to the questions of income distribution and meeting basic human needs. The traumatic experience of 1971 focused the need for addressing the issues of social justice, improved regional balance and alleviating poverty. The Civilian Government which came into power experimented with a strategy based on Socialization of assets, nationalization of education, redistribution of land, etc. The experiment lasted until 1977 when the new Government came into power and reversed the policies. What have been the results of these different strategies? As each strategy takes a long period of time before results become visible the lack of continuity, abrupt changes both in the internal course of events and external conditions make it difficult to pronounce a valid judgment about the efficacy or success of one strategy as compared to the other. The present Government seems quite aware of the pitfalls involved in pursuing the extremist strategies of unfettered market-oriented or socialist type and intends to follow a course which strikes a balance between the two extremes i.e., its intentions are to accelerate economic growth while at the same time alleviating poverty and meeting basic needs of the population. Is this a feasible course of action? Will it succeed? As the historical experience of Pakistan does not shed enough light to answer this question we look at the evidence from other developing countries. The extent of poverty in any country depends upon two factors: the average level of income and the degree of inequality in its distribution. Recent work done at the World Ban~bas demonstrated that there is no conflict between these two factors i.e., rapid growth and improved income distribution. The experience in Taiwan, Yugoslavia and Korea, shows that although 30 to 40 percent of the increment in income went to the bottom 60 percent of the population rapid growth was sustained. These countries now have distributions that compare favorably with the industrialized countries " lfuat is required is a set of policies which can bring about a balanced attainment of these two objectives. There is substantial agreement that the benefits of growth accruing to the poor can be increased through policies that (a) increase linkage of the poor to the faster growing segments of the economy so as to increase the flow of indirect benefits and (b) provide much greater direct support to productive activities upon which the poor ere heavily dependent and which have a potential for efficient expansion.

Comments

A paper presented at the Mid-Atlantic Regional Conference of Association of Asian Studies at the University of Pittsburgh from October 22-24, 1982. The views expressed in this paper are personal.

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