Distribution impact of agricultural growth, low income farmers and the "system" : a case study of Sahiwal district, West Pakistan

THE SYSTEM DESCRIBED IS A FRAMEWORK FOR CONCEPTUALIZING THE LOW-INCOME FARMER PROBLEM. FIRST DISCUSSED IS THE DISTINCTION BETWEEN THE ABSOLUTE AND RELATIVE MEANINGS OF "LOW INCOME." NEXT, A SYSTEM FOR EXAMINING THE LOW-INCOME FARMER PROBLEM IS DISCUSSED IN TERMS OF THREE KEY QUESTIONS: THE BOUNDARY OF THE SYSTEM, ITS KEY VARIABLES, AND ENDOGENOUS VARIABLES. NEXT DISCUSSED ARE THE CASUAL RELATIONSHIPS IN THE SYSTEM, INCLUDING THE MOTIVATIONS OF THE FARMER. THE STUDY OF SAHIWAL DISTRICT USES AS ITS BASE POINT THE CONDITIONS IN THE DISTRICT AS OF 1960. PRIOR TO THIS DATE THE AGRICULTURAL SECTOR HAD BEEN VIRTUALLY STAGNANT. FIRST DISCUSSED ARE AVERAGE COST CURVES FOR DIFFERENT TYPES OF TECHNOLOGY; NEXT, SIZE DISTRIBUTION OF HOLDINGS BY TENURE STATUS, FOLLOWED BY THE DISTRIBUTION OF INSTITUTIONAL SERVICES, AND THE DISTRIBUTION OF INCOME/POWER. NEXT DISCUSSED IS THE PERFORMANCE OF THE SYSTEM IN SAHIWAL DISTRICT, 1960-1970, IN TERMS OF AGRICULTURAL GROWTH, CHANGES IN INCOME DISTRIBUTION, AND THE POSITION OF LOW-INCOME FARMERS IN THE SYSTEM. THE AUTHOR CONCLUDES THAT THE DECADE OF RAPID GROWTH HAS MADE VIRTUALLY ALL SMALL FARMERS WORSE OFF RELATIVELY AND A GOOD MANY OF THEM WORSE OFF ABSOLUTELY. THE LARGER FARMERS CONTROL EXISTING INSTITUTIONS THROUGH A COMBINATION OF CORRUPT PRACTICES AND POLITICAL POWER. GOVERNMENT TAX AND PRICE-SUPPORT POLICIES SUPPORT THIS TREND. LAND REDISTRIBUTION IS THE SUREST AND QUICKEST SOLUTION TO THIS PROBLEM.