sations and informal sector interest groups whose mainfunction was to present their claims and guard their gains. All this has led to the weakening of feudal institu-tions and the emergence of a capitalist economy. It hasalso led to greater openness and transparency in publicaffairs in spite of the repressive nature of the state. Thisperiod also saw the break up of large feudal holdings andthe gradual replacement of crop-sharing by cash trans-actions between peasants and landlords.
1987 – 2002
: Structural adjustment and globalisationand the failure of Pakistan to respond to them positivelyhas resulted in inflation, recession and increasing unem-ployment. It has also resulted in the emergence of a FirstWorld economy with a Third World wage structure. Thishas increased poverty and aspirations as well. It has ledto privatisation and or the removal of subsidies in educa-tion, health and urban services (increasing the rich-poor divide) and an increase in the migration of educatedpeople from Pakistan to the First World.The trends in Pakistan’s economy are summed up in
table A-1.2
.Urban Slums Reports: The case of Karachi, Pakistan
Economic Trends
1947 – 1958
: Pakistan tried to model itself on thepost-World War II social welfare state. However, due toinappropriate political and administrative institutions,absence of civil society organisations, finances and adeeply entrenched feudal system, the state was notable to deliver. The demand-supply gap in housing,health, education and employment continued toincrease as a result.
1958 – 1968
: During this decade, Pakistan was ruledby the military. Industrialisation was promoted aggres-sively along with Green Revolution technologies. As aresult, a cash economy replaced barter in the ruralareas. Middlemen emerged to service the needs of small producers in the agricultural sector and this weak-ened the feudal system. In the urban areas, an informalsector developed to service the demand-supply gap inhousing and physical and social infrastructure.
1968 – 1977
: Nationalisation of industry and healthand education was carried out by the elected govern-ment which replaced military rule. The state investedheavily in industry. The rights of squatters on govern-ment land were recognised and a process of regularisa-tion of informal settlements was introduced.
1977 – 1987
: Another period of military dictatorship,ad-hoc policy making, Islamisation and repression. Thisgave birth to a number of civil society organisations for human rights, women’s movements, community organi-
Table A-1.1. Pakistan: Population Size,Rural-Urban Ratio and Growth Rate, 1901 - 1998 Year Population
(in ‘000s)
Proportion%Annual Growth Rate%
TotalRuralUrbanRuralUrbanTotalRuralUrban1901
16,577 14,958 1,619 90.2 9.8
---
1911
18,805 17,116 1,689 91.0 9.0 1.27 1.36 0.42
1921
20,243 18,184 2,058 89.8 10.2 0.74 0.61 2.00
1931
22,644 19,871 2,769 87.8 12.2 1.13 0.89 3.01
1941
28,244 24,229 4,015 85.8 14.2 2.24 2.00 3.79
1951
33,740 27,721 6,019 82.2 17.8 1.79 1.36 4.13
1961
42,880 33,240 9,640 77.5 22.5 2.43 1.80 4.84
1972
65,309 48,715 16,594 74.6 25.4 3.67 3.33 4.76
1981
84,253 61,270 23,583 71.7 28.3 3.10 2.58 4.38
1998
13,580 88,121 42,458 67.5 32.5 2.61 2.24 3.46
Source:
Census Reports
, Government of Pakistan
I. Contribution to gross domesticproduct by sector (%)1949/501996/97
Agriculture
53.2 24.2
Manufacturing
7.8 26.4
Others
(mostly services and trade)
39.0 49.4
II. Labour force by sector (%)1950/511994/95
Agriculture
65.3 46.8
Manufacturing
9.5 18.52
Others
(mostly services and trade)
25.2 34.69
III. Composition of exports (%)1951/521995/96
Primary commodities
99.2 16.0
Semi-manufactures
-
22.0
Manufactures
-
62.0
Table A-1.2. Pakistan’s Economy: Basic Indicators
Source: Zaidi S.A(1999a)
2
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