in Pakistan

Yousuf Zahid September 10, 2011

180 million people 22.6% under $1.25 a day 60.3% under $2 a day

Human Development Index - Purchasing Power Parity International Poverty Line by World Bank (January 2011)

1/4th of the population classified as poor (2006) Uneven wealth distribution 10% population earning 27.6% income


Creation and sharing of wealth in society?  Production  Distribution  Exchange  Consumption

What leads to inequality?  State policies  Nature of politics  Traditional social orders

Elitism & hierarchy in social relations

Or the lack of equality in…  Social status  Respect  Entitlements  Income  Influence

Three-year study of 727 households Rural income sources:

 Agricultural  Livestock  Rental  Nonfarm  Transfer income

Main source of income inequality?  Returns to labor  Crop profits And livestock decreases income inequality
World Bank

 No equal opportunity for children  Public educational system collapsed  Schooling represents SEC structure

Factors governing income distribution:  Distribution of assets  Functional income distribution  Transfers from households & government  Govt. tax and expenditure structure

Asset building measures for the poor:  Distribution of state land  Affordable plots and houses  Sale of shares of public enterprises  Human resource development  Micro financing No/few assets = skewed income distribution

Single most devastating factor for increased income and wealth inequalities in Pakistan remains the regressive tax system. Rate of tax on the poor from 1998-2008 has increased substantially (35%), while the rich are paying almost no direct tax on their colossal income and wealth.

 Economic disparities  Shortage of food  Lack of essentials services

 End non-development expenditure  Raise PSDP by leaps and bounds  Revolutionize education reforms  Major agriculture reforms  Special and technical skills to labor  Asset distribution  Re-engineer taxation system  Consistent capital investment  Ensure law and policy enforcement

All sources of information in this presentation are also in the paper by the same name. If requested, they can be provided.

Sign up to vote on this title
UsefulNot useful