Saturday, June 2, 2012

Poverty in Pakistan-complete perspective



Introduction
Definition:-
Poverty is described as deprived of or scarcity of the basic necessities of life. Those are food, shelter and clothing etc
Or
Poverty is described as the class of People living under the expenditure of 1 dollar per day (a total earning of 1 dollar per day).
*Such people are called poor or living under the poverty line.
Definition by world commission.

Poverty is the lack of basic human needs, such as clean water, nutrition, health care, education, clothing and shelter, because of the inability to afford them. This is also referred to as absolute poverty or destitution. Relative poverty is the condition of having fewer resources or less income than others within a society or country, or compared to worldwide averages. Poverty in Pakistan is a growing concern, as it is a developing country. Although the middle-class has grown in Pakistan to 35 million, nearly one-quarter of the population is classified poor as of October 2006. As of 2008, 17.2% of the total population lives below the poverty line, which is the lowest figure in the history of Pakistan.

What does it mean to be poor? How is poverty measured? Third World countries are often described as “developing” while the First World, industrialized nations are often “developed”. What does it mean to describe a nation as “developing”? A lack of material wealth does not necessarily mean that one is deprived. A strong economy in a developed nation doesn’t mean much when a significant percentage (even a majority) of the population is struggling to survive.

Causes of Poverty
It is hard to point out all causes of poverty in Pakistan but the foremost causes of poverty are given below:

Unemployment:
The unemployment in Pakistan is the greatest cause of poverty. The resources of Pakistan are underdeveloped and the chances for the employment are very rare than the rate of population.



Corruption:
Another cause of poverty is corruption. There is not morality and every one is trying to earn more and more by using fair and unfair means. Only one relationship that exists in society is money. Corruption often accompanies centralization of power, when leaders are not accountable to those they serve. Most directly, corruption inhibits development when leaders help themselves to money that would otherwise be used for development projects. In this whole scenario some corrupt people has been occupying the resources and common man is living in miserable conditions.

Materialism:
In our society social bonding gradually becomes thinner and thinner. A race of material object has been started even no one tried to understand the problems of others. Every one is gradually changing from human to that kind of person who only knows about his needs and has no concept about the limitations of others. People are not ready to help each other. At last every one has lost his trust on others which affect our social and economic system and it is another cause of poverty.
                                                        



Natural Disasters:
Natural disasters such as floods and earthquakes have devastated communities throughout the world. Developing countries often suffer much more extensive and acute crisis at the hands of natural disasters, because limited resources inhibit the construction of adequate housing, infrastructure, and mechanisms for responding to crisis.

Large Scale Import:
The import of Pakistan is greater than export. Big revenue is consumed in importing good every year, even raw material has to import for industry. If we decrease import and establish own supply chains from our country natural resources the people will have better opportunities to earn.


Rapidly growing population:
Rapidly growing population is another cause of poverty. Population-wise Pakistan is the 6th largest country in the world and its population growth rate is 1.8%, which is the highest in the region. Pakistan’s GDP growth rate is less than 3%.
So, there is a shortage of goods and services like food, clothing, housing facilities, education and health etc all these things are inadequate to meet the necessities of a growing population. One earning hand has to feed a large number of family members. Due to the high level of demand and less production, there is general poverty.
Lack of Education:

The literacy rate of Pakistan is very low. Most of people do not have any concept about the modern earning sources. Most people are unable to adopt technology for their business needs, that's why business does not meet international standards and results as decrease in revenue which leads the society to poor financial conditions.
                                   
Rising Inflation:
Another cause of poverty is inflation, which is a king of regressive tax on the fixed income class. Due to inflation, the salaried and fixed income group is more affected than the business class. The employees’ salaries are not increased by the government in proportion to inflation, but their expenditures are increasing, day by day, due to dearness.
Less income and the low level of saving are responsible for poverty. Increase in the prices of oil at the international level is also enhancing poverty. 



Impacts

Increase in environmental health related diseases
Lack of income results in people not being able to pay for health and medical facilities, thus increasing health problems. Income poverty and ill health are therefore closely linked in a vicious downward cycle. People living in poor housing without access to clean water, sanitation or basic health facilities are more likely to become sick. These conditions in turn place them in a worse position when they are unable to work and incur high costs for health care and medication. Poor health further results in malnutrition and an increase in levels of mortality.
 


Child Labor:
Ever since the 1960s, the share of children affected by poverty has only got bigger and bigger. Children are those who have the least choice and ability to change what happens to them.
There isn’t much they can do to help their families, nor should they have to. Until they can stand firmly on their two legs, usually by the age of 6, then they can be enrolled willy-nilly in child labor. Nearly all possible effects of poverty have an impact on children’ lives. Poor infrastructures, unemployment, lack of basic services and income reflect on their lack of education, malnutrition, violence at home and outside, child labor, diseases of all kinds, transmitted by the family or through the environment.
  

Street crime
Crime varies over time and space; it’s high in specific areas and low in others, usually with huge differences in wealth. This has always led experts to study why and what happens in those places where there is a concentration of crime.

It’s unquestionable that crime ranks high among the effects of poverty, and those impoverished neighborhoods or entire cities show the same problems with uneducated adults and kids that nurture more unemployment and crime, and then leading to chronic, long-lasting poverty.
                                      
Suicide
Suicide in Pakistan has been a long-term social issue and is a common cause of unnatural death. Incidents of suicide are often reported in the press and newspapers throughout the country as well as by several non-governmental organizations. Poverty is one of the major causes of suicides. Suicide is considered a criminal offence, with punitive laws imposed in place for attempted suicide. National suicide statistics are not compiled on a formal level nor officially reported to the World Health Organization, thus leaving any obtained data to be neglected and underreported. While suicide patterns have traditionally been low, there has been a slow and steep increase in the past few years.

Prostitution
Prostitution in Pakistan is a taboo culture of sex-trade that exists as an open secret but illegal. Prostitution is largely based in organizational setups like brothels or furthered by individual call girls in the Punjab and Sind provinces of Pakistan. Poverty is also a major cause of prostitution in Pakistan.
Illiteracy
When there is poverty in country, new infrastructures and plans for educating people are given a hold. This set back affects the whole country and the increases the illiteracy rate. Poor parents sent their children to work instead of sending them to schools.




Global Poverty statistics

As we can see from the table above, Pakistan has a population of 24% living below the poverty line. Whereas neighbouring countries like India, despite being four times in population, has a 25% average below the poverty line and Iran at only 18% poor population. China on the other hand has a population of only 2.8% below poverty line.
United States has 12% of its population living in poor. And Taiwan being the lowest on the basis of poor population stands at 1.16% only.



Trends of poverty with in Pakistan
                                                                            






Role of government in reducing Poverty
Initiatives taken:-
PRSP II

With the first generation poverty reduction strategy (PRSP-I) having completed its period of implementation, the next generation Poverty Reduction Strategy Paper (PRSP)-II (2008 09-2010 11) was finalised with an aim to reduce poverty by regaining macroeconomic stability. The Strategy was built upon nine pillars, which were based on a nine point economic agenda of the government with the main thrust on economic growth, reduction in poverty and human development, which help to achieve this objective. This nine point agenda includes pillars like the provision of infrastructure particularly an integrated energy development programme, better and improved delivery of services in the form of better governance, increasing productivity  and value addition in agriculture, making industry internationally competitive, providing capital and finance for development  focusing on microfinance.
Benazir Income Support Programme (BISP)
With a view to cushion the sharp rise in international oil and food prices and the adverse social impact of the global financial crisis, the Government launched the Benazir Income Support Programme (BISP) as its flagship safety net initiative in 2008. The BISP is to serve as a platform to provide cash transfers to the vulnerable identified on the basis of a poverty scorecard and are to be backed by an exit strategy. This strategy includes imparting training to one member of each vulnerable family to sustain himself. In the initial stage, the programme was to provide monthly cash transfers of rupees 1000 to poor households identified through a poverty scorecard. The recipients of the cash transfer are the females of the household BISP is expected to have a direct effect on consumption and income levels of the beneficiaries by: 1) reducing consumption based poverty, 2) improvements in health and nutrition, 3) income generation 4) human development.  During 2008-09, a total of Rs. 14 billion was disbursed to 1.76 million beneficiaries across all parts of the country in shape of the cash grant of Rs.1000 per month.

Punjab Food Support Scheme or Punjab Food Endowment Fund
(PFSS) or (PFEF)
The Punjab Food Support Scheme (PFSS) was initiated by the Government of Punjab in 2008. It was originally designed to provide food stamps for the poorest households, but has now been converted to a cash grant of Rs 1000 per household per month. In this sense it is exactly like the BISP, except for it is run by the Punjab province. The targeting relies on local government officials (district and union councils) and political appointees to propose an initial list of beneficiaries. The subsidy is aimed at households that do not have a bread-earner; widows, orphans, and the destitute; chronically sick and/or disabled persons; elderly persons who have been abandoned by their family; and the poorest of the poor segments of the society with marginal incomes. The scheme covers both rural and urban areas, with a total estimated subsidy of Rs 21.6 billion for 1.8 million families. The first two phases of the scheme have covered about 1 million beneficiaries. It also took up a program called Punjab ``Sasti Roti Scheme``, in which bread from shops were of 2Rs only.

Punjab Yellow Cab Scheme
Punjab Yellow Cab Scheme is a programme under the government of Punjab in which Yellow Taxis were provided to unemployed people on interest free loans. Yellow cabs would be given to graduates less than of 35 years of age. The method would be transparent and through the ballot system. There is quota for them on the population basis in all the areas of the Punjab province. One hopes that it goes well and provides some relief to educated and jobless youth of Punjab.
President RozGaar Scheme
The president rozgaar scheme was started by PML-Q or President Musharaf in 2007. Under which unemployed poor people were given Rickshaws on interest free loan basis. The main idea of the Scheme was that the bank gets a return on rickshaws we helped finance. But the scheme failed and the scheme was suspended in January 2009. A senior official of the bank said that the default rate on the scheme was 80 percent in Lahore and the bank suffered overall losses of Rs4 billion
.
Millennium Development Goals
Millennium Development Goals are a type of pact signed between different developing countries which make certain set of goals and sign to achieve them by the time limit provided. Millennium Development Goals of Pakistan 2010 covers the four years since 2006 in which numerous and far reaching developments have taken place which have transformed the social, political, and economic landscape of Pakistan, all having an impact on the outcomes, achievements and targets of Pakistan's Millennium Development Goals. Pakistan has faced serious challenges in the last four years towards meeting many of the MDG targets. The first goal was ``Eradicate extreme poverty and hunger``. Pakistan lies on this table at the first goal:-
Pakistan needs to work a lot it wants to achieve these goals by the end of 2015.

Conclusion
In the end we can say that we and our government should take immediate steps towards the eradication of extreme poverty. And this can be done with the collaboration of both national and international agencies along with the help of local people.
So the best conclusion is Solution


References:-
Books:-
“Poverty in Pakistan”
By Dr. Akmal Hussain
“Poverty alleviation in countries”
                             By Dr. Chris Ravenhill
“Pakistan- a country of peace”

                             By Dr. Ishrat Husain


Websites:-

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