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The situation in eighties changed drastically in the wake of Afghan war. International aid
of billions of dollars embedded in varying sets of conditions and acronyms was poured in
to achieve ambitious political objectives. A new policy framework entitled as ‘Structural
Adjustment Program’ was imported and introduced. Any critique on its relevance and
effectiveness was set aside with sanctimonious attitude. A decade later, research proved
that SAP was a failure. Human Development Report 2003, by Mahbub ul Haq Human
Development Centre noted that, ‘poverty started rising after the structural adjustment
program began in 1987-88. There are various reasons for this, most of which relate to the
direct and indirect effects of macroeconomic strategy itself’
In new millennium, the same flawed strategy and its failures were further reinforced.
There was tremendous shift of investment from agriculture to non-agriculture sector. In
this so called ‘transformation towards growth’ the relocation of labor out of agriculture
was typically lagging, leaving large number of poor people in rural areas and widening
income gap. Also, it could not succeeded in developing town and village level enterprises
and creating non-farm employment opportunities for more than 34 percent of rural
households that depend on wage labor as sole source of livelihood. The result of such a
deplorable situation is not difficult to imagine. The World Bank Development Report
2008 notes, ‘Pakistan (with 2.4 percent agriculture growth rate) has been less successful
in reducing poverty, mainly because of highly unequal ownership of and access to
productive assets such as land and irrigation water’.
The report also highlights the most impressive success story of rural agriculture growth in
China, which has been responsible for decline in rural poverty from 53 percent in 1981 to
8 percent in 2001. The major underlying factor was ‘The Household Responsibility
System’ an agrarian reform implemented in 1981.This incentive system, designed to
increase yields and improve the condition of local farmers, reallocated communal land to
peasant households, creating hundreds of millions of smallholders with relative autonomy
over land use decisions and crop collection. This was followed by establishment of
‘Town and Village Enterprises’, which were industries owned by township and villages.
Justin Yifu Lin, the renowned economist, writes in ‘Reform in China: A Peasant’s
Institutional Choice’ that ‘the household responsibility system was worked out among
formers initially without knowledge and approval of the central government. It was not
imposed by the central authority and evolved spontaneously. Seeing the remarkable
effects the central authorities conceded to adopt it.’ Perhaps, for this reason late Chinese
leader Deng Xiaopang once termed it ‘a great invention of Chinese Farmers’.
The farmers in our country are also capable of making such great inventions if allowed to
have a little more access to social justice. A genuine agrarian reform is necessary which
gives landless and farming people ownership and control of the land they work and
returns territories to indigenous peoples. The right to land must be free of discrimination
on the basis of gender, religion, race, social class or ideology; the land belongs to those
who work it.
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