Agricultural Links to Nonagricultural Growth: Urbanization, Employment, Poverty (The Distinguishedl Lecture)

Abstract

I am presenting some thoughts and numbers on what I think: is one of the most important policy issues in Pakistan, namely, mobilizing additional resources by direct taxes/rom the agriculture sector. Since the issue, topical though it may be, is hotly contested, let me quickly add two points. First, I support all reasonable efforts at mobilizing resources from other major sectors or industries in the country. Second, I support equally the use of price and non-price incentives to producers to increase productivity, particularly in the agriculture sector. It is absolutely essential to maintain a favourable macroeconomic environment for agricultural producers if we want additional resources for investment in physical and social infrastructure to help improve the living standards of those whose incomes and jobs depend on agriculture. In making these points, I am saying· that I am opposed to policies that penalize agricultural productivity, including perverse policies on output and input prices, exchange rates, regulation and control of internal and international trade, farm credit, and investment in physical infrastructure, research and extension services.