in Pakistan

Yousuf Zahid yousuf.zahid@live.com 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

Wikipedia

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.

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