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spotlogo2.jpg (6318 bytes) VOL. 22, NO. 31, FEB 14 - FEB 20 2003.

BOOK REVIEW


 Pro-Poor Policies

The Report on Human Development in South Asia 2002 highlights the state of agriculture and rural development

By KESHAB POUDEL 

South Asian countries have many potentials as well as challenges. Containing one-sixth of the world's population - and over a third of its poor - South Asia has been facing an uphill battle in terms of overall development. The number of people living under the poverty line continues to increase, as does the number of illiterate. Gender discrimination is another matter of grave concern.

As agriculture is still one of the major sectors, on which over 80 percent of the population relies. A similar percentage of people live in the rural areas. As long as these two components of the country's economy remain stagnant, there is little hope of improvement of the livelihood of the poor population.

"Agriculture, the major source of livelihoods for South Asia's population as well as the backbone of the industrial and trading systems, has not been† receiving as much policy attention as this sector deserves. Under the policies for globalization, governments have been framing and implementing policies focused on macroeconomic balance and growth strategies for industrial and service sectors. The agriculture sector has been deriving some indirect benefits from these policies, but it has also been subjected to unfair international competition and inequitable domestic policies," said Farid Rahman, acting president, Mahabub ul Haq Human Development Centre, while launching the Report on Human Development in South Asia 2002.

Launching ceremony : Monitoring development
Launching ceremony : Monitoring development

According to the report, the agricultural sector remains sadly neglected at the policy level, despite its obvious centrality to the lives of the majority of South Asians. Small farmers and landless poor have suffered because of either inappropriate policies or the inequitable application of good policies. In particular, the emphasis on macroeconomic stabilization has left the agriculture sector at the mercy of fiscal targets.

The basic message of the report is that high levels of human development cannot be achieved if priorities do not focus on the occupation of the majority of the people - farm and non-farm employment - and where they live - rural areas.

"This year's report is particularly relevant for Nepal since agriculture is the backbone of the Nepalese economy and provides the main source of livelihood for over 80 percent of the population," said Dr. Henning Karcher, UNDP Resident Representative. One conclusion is, however, certain: rural poverty in South Asia will not be significantly reduced unless and until all of these issues are addressed effectively through appropriate policies and programs.

The 2002 report on Human Development in South Asia is the sixth annual report of the center. The foundation has already published the reports on the themes including gender, governance, education, and globalization in the South Asian context.

"The report points out many important aspects of the agriculture sector. As long as the sustainable growth in the agriculture sector can not achieve, it is impossible to reduce the number of population below the poverty line," said Dr. Shankar Sharma, vice-chairman of the National Planning Commission. "We have to formulate plans to increase the agriculture productivity to achieve the poverty reduction strategy."

According to the report, small farmers and the landless poor have suffered because of either inappropriate policies or the inequitable application of good policies. In particular, the emphasis on macroeconomic stabilization has left the agricultural sector at the mercy of fiscal targets.

"South Asia is the poorest region of the world accommodating 40 percent of the world's 1.2 billion income-poor. South Asia is also probably the richest region of the world in terms of diverse development environment and progress across countries of the region," said Dr. Hari Krishna Upadhyaya, executive chairman of CEPARED. "There is much for each country to learn from other's experience."

Since the South Asian countries have been making vigorous effort to change the farm pattern in the country, the report is an eye-opener on the lapses and weaknesses in the agriculture and rural development sector.

Human Development in South Asia 2002
Agriculture and Rural Development
Published by Mahabub ul Haq Human Development Center
Pages: 242
Price: Rs.395


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