Pakistan - Rural Factor Markets : Policy Reforms for Growth and Equity

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Washington, DC

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Accelerating rural economic growth and reducing rural poverty requires a comprehensive strategy built on sound analysis covering all major aspects o f the rural economy including agricultural output markets, input markets (seeds, fertilizer, extension), factor markets (land, water, labor and credit), the rural non- farm economy, and targeted interventions. This report focuses on one aspect o f this complex puzzle - rural factor markets. It builds on earlier work on output and input markets, and anticipates future analytical work on the rural non-farm economy and other key aspects o f the rural economy. The report identifies the main factor market inefficiencies in rural Pakistan, provides estimates of their impact in terms of efficiency and equity, and suggests policy measures to improve the functioning of these markets, increase rural incomes and help reduce rural poverty. In presenting the results, each factor is discussed in turn, drawing on descriptions of institutional constraints and statistical analysis of recent household survey data. Key new findings include quantitative estimates of the importance of linkages across factor markets and the impact of factor market inefficiencies on agricultural output and revenues. In addition, the report shows that for the 61 percent of rural poor households that do not cultivate crops (agricultural laborers and non-farm households), expanding output of major crops may not be sufficient to significantly raise their incomes, even with substantial multiplier effects on the rural non-agricultural economy.

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ACCOUNTABILITY, ACCOUNTING, ADMINISTRATIVE PROCEDURES, ADVERSE EFFECTS, AGRICULTURAL OUTPUT, AGRICULTURAL PRODUCTION, AGRICULTURE, BALANCE OF PAYMENTS, BASIN, CANALS, CAPITAL GOODS, CHANNELS, CHILD LABOR, COMMERCIAL CREDIT, CONTRACT ENFORCEMENT, CREDIT RATIONING, CROP YIELDS, CROPS, DEBT, DEVELOPMENT ECONOMICS, DEVELOPMENT STRATEGY, DISCOUNTED VALUE, DROUGHT, DROUGHTS, ECONOMETRIC ANALYSIS, ECONOMETRIC EVIDENCE, ECONOMIC GROWTH, ECONOMIC STRUCTURE, ELASTICITIES, EMPIRICAL EVIDENCE, EXCHANGE RATE, EXPENDITURES, EXPORT, EXPORTS, FARMERS, FARMING, FARMS, GDP, GDP DEFLATOR, GDP PER CAPITA, GINI COEFFICIENT, GOVERNMENT FINANCE, GOVERNMENT LABOR POLICIES, GROSS REVENUE, GROSS VALUE, HOUSING, HUMAN CAPITAL, IMPORTS, INCOME, INCOME DISTRIBUTION, INCOME INEQUALITY, INFANT MORTALITY, INFLATION, INNOVATIONS, INTEREST RATES, IRRIGATION, JURISDICTION, LABOR FORCE, LABOR INPUTS, LABOR MARKET, LABOR MARKETS, LABOR MOBILITY, LABOR PRODUCTIVITY, LABORERS, LAND OWNERSHIP, LAND PRICES, LAND PRODUCTIVITY, LAND TITLES, LAND USE, LAWS, LEGAL PROTECTION, LEGISLATION, MARKET DISTORTIONS, MATCHING GRANTS, MIGRATION, MULTIPLIER EFFECTS, OUTPUTS, PER CAPITA INCOMES, POVERTY ALLEVIATION, POVERTY LINE, PRESENT VALUE, PRIVATE CONSUMPTION, PRODUCTIVITY, PROGRAMS, PROPERTY RIGHTS, RAINFALL, REAL PRICES, REAL WAGE RATES, REAL WAGES, RECHARGE, REGULATORY FRAMEWORK, RENTS, RIVER, SAVINGS, SCIENCES, STATISTICAL ANALYSIS, SURFACE WATER, TAXATION, TELECOMMUNICATIONS, TERMS OF TRADE, TRADE TAXES, TRANSACTIONS COSTS, TRANSPARENCY, TRANSPORT, UNEMPLOYMENT, VALUE ADDED, WAGE RATES, WAGES, WATER BOARDS, WATER CHARGES, WATER MANAGEMENT, WATER MARKETS, WATER RESOURCES, WATER RIGHTS, WATER SHORTAGES, WATER SOURCES, WATER USE, WELLS, WHOLESALE PRICES

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