South Punjab — changing rural political economy
A distinct change in South Punjab is the vast road network, increasing connectivity & fostering economic activity
The writer is an author, a public policy analyst and former interior secretary. He teaches at LUMS
Being a city dweller, my first real-time interface with rural life was with southern Punjab, an experience spread over many years. A fascinating region representing an amalgam of diverse ethnic and linguistic overlaps. The political landscape of the region has been an outgrowth of the landed power base that is characterised by its predictable patterns, unlike the complexities one sees in urban areas. Recently, I availed an opportunity to visit southern Punjab after many years and revived my old associations as a former career civil servant. What strikes a visitor distinctly is the vast road network that has created greater connectivity and a manifold increase in the traffic volume even in the farthest of areas. Road networks criss-crossing through farmlands is a most common sight all along the periphery, with the quality of roads improving over time. The roadsides present a busy picture. One sees a plethora of mechanic shops, telephone kiosks, eateries and tandoors.
Jalalpur Peerwala, a one-time sleepy town on the southern tip of the Multan region, represents an interesting prototype. Surrounded by the river Chenab, it is not far from the historic town of Uch Sharif in Bahawalpur division. Some 30 years ago, there was no land connectivity between the towns, but with the construction of a bridge over the river and a bypass passing along the town, the entire area has developed linkages in all directions, including with Sindh. Money being repatriated from the Gulf region by expatriates finds its manifestation in the markets, roadside hotels, restaurants and in the burgeoning trading activity. Migrant labour and small-time traders in the Gulf have been able to bring in investable surpluses both for trading and improving agricultural practices. Mobile phones have virtually blurred the rural-urban divide and are working as great social levellers. Consumer behaviour is undergoing rapid change with more disposable income in the hands of the farming community and agribusiness traders. The past few years have been favourable for the rural economy as there has been a rapid increase in support prices, especially of wheat. Availability of state land in large chunks is being rightly capitalised upon by elected representatives, who have been vying with one another to secure public-sector development funds for different projects. Apart from developing road networks, health, education and vocational facilities, both for men and women, have been an obvious priority. That does not mean that all is well in the social sector where some very basic facilities are facing the crunch.
There has been a parallel development on the administrative front. Small-time towns, previously known to lack municipal life, have been upgraded to subdivision level, ensuring the presence of senior echelons of the administration that have the power to make decisions in their respective domains. With increased empowerment being provided to these tiers, there is more business and economic activity. Sessions courts have also been established at the subdivision level, which are headed by additional sessions judges. These courts are exercising certain powers, which were previously the preserve of the high courts.
Another distinct change that the south of Punjab is witnessing is in the non-profit sector, which is making a steady ingress, notwithstanding the presence of strong local power-holders. This is an area of special interest to donors who are working in the region through formal organisations in the social sector. Life for vulnerable groups is by no means easy, but there is growing awareness of rights and the will to move forward. I met quite a few social mobilisers, both male and female, in Fazalpur and Mithankot, who were working against the odds in concert with the local media and legal aid groups, and making their presence felt.
In political terms, the same old families and clans hold sway as was the case in the 1970s, but there is a difference. The mantle of power has passed on to the younger generation, which is relatively more educated and has a broad-minded approach to issues. In some of these areas, the local leadership is co-opting the non-profit sector closely to leverage maximum benefits of social and economic development.
Coming to the agriculture sector, southern Punjab, historically speaking, is a cotton-growing area earning valuable foreign exchange for the country. There has been a steady change in cropping patterns in recent years, with more areas coming under sugarcane cultivation. This is particularly the case in Rahim Yar Khan, Muzaffargarh, Bahawalpur and Rajanpur districts. This has happened because of an increasing number of sugar mills coming up in the area, as well as existing mills expanding their capacity manifold. This development is transforming the political economy in many ways. Being a water-guzzling crop, mass cultivation of sugarcane was never encouraged in this region in the past. Later on, procedures for setting up sugar mills were made relatively easy with the availability of loans on flexible terms. Leading political lights jumped into the fray. As a result, this is one crop or industry where stalwarts of all mainstream political parties have an abiding interest all over the country.
Till the 1980s, there was stringent zoning in Punjab based on economic rationale, with the south being reserved for cotton cultivation. A policy shift changed the game plan. Inducements for sugarcane cultivation, along with sustained efforts to provide forward linkages for the benefit of growers, have altered the picture. A different kind of productive relationship is now being witnessed. Growers have gone into a captive mode of cultivation, with increased dependency on sugar mills, which have better bargaining power. Growers often suffer through delayed payments made to them by the mills. In certain areas, the mill-grower relationship has evolved into that of a patron-client one.
With the expansion of the beverages industry and the confectionary business, per capita consumption of sugar in the country has increased manifold. Pakistan is now the sixth-largest sugarcane-growing country in the world, but is by no means competitive at the international level in terms of the yield and content. There is an over-production of sugar in the country that has no justification except to keep conveyor belts of the mills running. The surplus often goes into the export sector, helped by the massive subsidy cover that the industry is given. This year it is estimated that over Rs6 billion has been provided in subsidies to sugar manufacturers for export. This subsidy, which is regressive in nature, is a bane for the economy. Our scarce resources are being diverted to benefit powerful lobbies. Taxpayers in Pakistan wish to see the prudent use of their money. We need to address more pressing issues of building schools and ensuring the provision of essential medicines at the primary healthcare level both in the rural and urban areas instead of looking after the interests of a privileged few.
Published in The Express Tribune, January 12th, 2016.
Jalalpur Peerwala, a one-time sleepy town on the southern tip of the Multan region, represents an interesting prototype. Surrounded by the river Chenab, it is not far from the historic town of Uch Sharif in Bahawalpur division. Some 30 years ago, there was no land connectivity between the towns, but with the construction of a bridge over the river and a bypass passing along the town, the entire area has developed linkages in all directions, including with Sindh. Money being repatriated from the Gulf region by expatriates finds its manifestation in the markets, roadside hotels, restaurants and in the burgeoning trading activity. Migrant labour and small-time traders in the Gulf have been able to bring in investable surpluses both for trading and improving agricultural practices. Mobile phones have virtually blurred the rural-urban divide and are working as great social levellers. Consumer behaviour is undergoing rapid change with more disposable income in the hands of the farming community and agribusiness traders. The past few years have been favourable for the rural economy as there has been a rapid increase in support prices, especially of wheat. Availability of state land in large chunks is being rightly capitalised upon by elected representatives, who have been vying with one another to secure public-sector development funds for different projects. Apart from developing road networks, health, education and vocational facilities, both for men and women, have been an obvious priority. That does not mean that all is well in the social sector where some very basic facilities are facing the crunch.
There has been a parallel development on the administrative front. Small-time towns, previously known to lack municipal life, have been upgraded to subdivision level, ensuring the presence of senior echelons of the administration that have the power to make decisions in their respective domains. With increased empowerment being provided to these tiers, there is more business and economic activity. Sessions courts have also been established at the subdivision level, which are headed by additional sessions judges. These courts are exercising certain powers, which were previously the preserve of the high courts.
Another distinct change that the south of Punjab is witnessing is in the non-profit sector, which is making a steady ingress, notwithstanding the presence of strong local power-holders. This is an area of special interest to donors who are working in the region through formal organisations in the social sector. Life for vulnerable groups is by no means easy, but there is growing awareness of rights and the will to move forward. I met quite a few social mobilisers, both male and female, in Fazalpur and Mithankot, who were working against the odds in concert with the local media and legal aid groups, and making their presence felt.
In political terms, the same old families and clans hold sway as was the case in the 1970s, but there is a difference. The mantle of power has passed on to the younger generation, which is relatively more educated and has a broad-minded approach to issues. In some of these areas, the local leadership is co-opting the non-profit sector closely to leverage maximum benefits of social and economic development.
Coming to the agriculture sector, southern Punjab, historically speaking, is a cotton-growing area earning valuable foreign exchange for the country. There has been a steady change in cropping patterns in recent years, with more areas coming under sugarcane cultivation. This is particularly the case in Rahim Yar Khan, Muzaffargarh, Bahawalpur and Rajanpur districts. This has happened because of an increasing number of sugar mills coming up in the area, as well as existing mills expanding their capacity manifold. This development is transforming the political economy in many ways. Being a water-guzzling crop, mass cultivation of sugarcane was never encouraged in this region in the past. Later on, procedures for setting up sugar mills were made relatively easy with the availability of loans on flexible terms. Leading political lights jumped into the fray. As a result, this is one crop or industry where stalwarts of all mainstream political parties have an abiding interest all over the country.
Till the 1980s, there was stringent zoning in Punjab based on economic rationale, with the south being reserved for cotton cultivation. A policy shift changed the game plan. Inducements for sugarcane cultivation, along with sustained efforts to provide forward linkages for the benefit of growers, have altered the picture. A different kind of productive relationship is now being witnessed. Growers have gone into a captive mode of cultivation, with increased dependency on sugar mills, which have better bargaining power. Growers often suffer through delayed payments made to them by the mills. In certain areas, the mill-grower relationship has evolved into that of a patron-client one.
With the expansion of the beverages industry and the confectionary business, per capita consumption of sugar in the country has increased manifold. Pakistan is now the sixth-largest sugarcane-growing country in the world, but is by no means competitive at the international level in terms of the yield and content. There is an over-production of sugar in the country that has no justification except to keep conveyor belts of the mills running. The surplus often goes into the export sector, helped by the massive subsidy cover that the industry is given. This year it is estimated that over Rs6 billion has been provided in subsidies to sugar manufacturers for export. This subsidy, which is regressive in nature, is a bane for the economy. Our scarce resources are being diverted to benefit powerful lobbies. Taxpayers in Pakistan wish to see the prudent use of their money. We need to address more pressing issues of building schools and ensuring the provision of essential medicines at the primary healthcare level both in the rural and urban areas instead of looking after the interests of a privileged few.
Published in The Express Tribune, January 12th, 2016.