Developing Pakistan's villages
ARTICLE (March 30 2010): Pakistan has been and will always remain an agrarian economy, whether we like it or not. And why not? Why can't we as a nation be proud of the fact that we produce such commodities as rice, wheat and sugar which are consumed by the global community? Pakistani basmati is a very well-known brand all over the world. The sad part is that the urban rural divide is so wide, the inter-link between so-called professionals and the villager is non-existent.
I have travelled to the rural part of both Punjab and Sindh as my father has both land and links to some of the most beautiful parts in this country. There is so much beauty, peace and calm in the villages, that words cannot describe the feeling when I venture there once in a blue moon. Yes, the life styles of the person living in the urban city as against the fellow countryman, residing in the rural areas is so different, that where the professional may have benefited from globalisation, the villager remains more so isolated.
Over 75% of Pakistan's population live in the rural areas, yet they remain cut off from the benefits of the country's economic growth witnessed over the past few years. Our rural areas remain without basic amenities such as clean drinking water, basic utilities such as electricity, gas, telephone connections, and schools for their children. Yet, many of the farmers and their families continue to live their lives without complaining and oblivious of what is happening in the global world.
Adopt the China model Pakistan as a country needs to do more to connect the rural markets with the urban ones, which will provide the much-needed link and enhance farm and agricultural development. How this can happen, we may want to see what is happening around us in other countries. We can look at other regional countries that have moved on a fast track to bridge the gap between rural and urban populations.
China for example, implemented agricultural reforms in the 1980s by allowing private sector entrepreneurs investments through massive tax relieves etc. It is now reaping the benefits today. Sadly, no other country has really focused in this area, although I understand India is now following the China model and implementing reforms.
In Pakistan, one can look at how the farmer sells his product to the market which is done in a very haphazard way and also under the influence of connections or political pressures.
Regularize the middleman: The poor farmer rises very early in the morning and transfers his goods either through hired trucks, tractors, donkey carts or whatever other means and makes his way through treacherous un-built roads to the market which can take him hours to get to. Once the poor farmer reaches the so-called 'Mundi', middlemen also known as 'Arti', who have their clout, buy the stock from them.
The farmer has no idea what the going market rates are and simply takes the money and off he goes back to his journey home. The middlemen obviously have their connections in the right places and are aware what the going rates for various commodities so milks the farmer to the limit and earns a windfall in the process. However, the bought goods remain exposed in the scorching sun and at times rot or are eaten by stray dogs.
There needs to be a proper market for such purposes where goods once received from the farmer are stored carefully for further onward journey to other cities. The role of the Arti needs to be revisited and the poor farmer must be compensated adequately.
Rural development is critical for any nation's economy. Pakistan has now too long needlessly tried copying India by focusing more on its urban rather than its rural development. I am not suggesting we do not care about the urban population, but it is imperative we concentrate on our own resources and strengths.
Quite recently, we have heard that the Saudis are quite interested in investing in the agricultural sector. Moreover, many multinational companies already looking to invest in cattle farming to boost dairy outputs such as Nestle, Unilever, Engro Foods etc.
Pakistan must take a page from China and look to fix its villages. It must build roads for the farmers to transport their output easily to the market. It must empower the farmer with basic knowledge such as how to increase their acreage growth, provide them with cheap fertiliser, make available them easy and cheap loans so they can manage their crops and families and offer basic education to their children.
Companies such as Engro, Nestle, Unilever etc are already proactively helping in many areas and must be commended. They must be encouraged to do more besides others are incentivised to invest more into the rural sector. Pakistan must look to empower its farmer. Banks should be encouraged to open branches in remote villages and provide soft loans. Foreign direct investment must also be encouraged into this sector. Entrepreneurial activity must be encouraged, which will eventually create modern farming and agricultural activity in the country. The future lies in the development of our villages.
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