2014Cambridge Conference Business & EconomicsISBN : 9780974211428
Poverty Reduction Possibilities in Punjab
(Public –Private Partnership in Social sector)
by
Dr. Muhammad A. Quddus*
Dr. Mazhar-ul-Haq Baluch**
Khawar Ata***
* Director, Punjab Economic Research Institute, Lahore.
** Associate Professor, Lahore School of Economics, Lahore.
*** Research Economist, Punjab Economic Research Institute, Lahore.
______
Poverty Reduction Possibilities in Punjab
(Public –Private Partnership in Social sector)
Dr. Muhammad A. Quddus
Dr. Mazhar-ul-Haq Baluch
Khawar Ata
Abstract
PPAF is the leading agency for poverty reduction in Pakistan, which embodies the spirit of private – public partnership to address the multi-dimensional issues of poverty. It’s multidimensional experience concludes that local, indigenous and community based institutions are a pre-requisite for spending on the poor to achieve the positive development outcomes. Consequently, Microfinance Innovation and Outreach Program (MIOP) comprised of three components or multidimensional development activity has been initiated. Status of 50 percent females improved after taking loan, while 36.4 percent replied that the loan had no impact on their social status. In accordance with results of benchmark survey, total income of households in project area increased by 126 percent over their income obtained during benchmark survey whereas during the same period an increase of 95 percent was found in income of respondents ( non-project areas’ households). The remarkable increase in the income of project areas’ households was mainly due to project intervention in that area. There was although an increase in the income and expenditure of the respondents, but increase in expenditure as found in evaluation survey was higher as compared with that of benchmark survey. In the evaluation survey, the savings by project households over the non-project households were positive. Poverty score was established on the basis of weight assigned to different households’ characteristics and the maximumpoverty score assigned was 25. However,50 percent poverty score was estimated for 22percentof the respondents of the project area and 36 percent of the non-project area respondents in Kasur district. In district Sheikhupura, 50 percent poverty score was estimated for 17 percent household of project area and 29 percent of the non-project area. In overall, poverty score of respondent households was higher in the project area then that of non-project area. This indicated sign of poverty reduction in the project area.
1.Introduction
Pakistan Poverty Alleviation Fund (PPAF) being one of the largest sources of pro-poor spending in the country is the leading agency for poverty reduction in Pakistan. It was established in 2000 with the following objectives:-
- To strengthen the institutional capacity of civil society organizations, and support creation of organizations of the poor, that can work together to alleviate poverty and achieve MDGs.
- To build public – private partnerships with the purpose of increasing market access and market share for poor communities.
- To ensure that public services adhering to identified quality standards are available to poor community.
- To empower the poor especially women and increase their income.
- To provide credit to partner organizations and assist them to expand their Poverty TargetedMicro- credit Programs.
- To provide grants and loans on a cost sharing basis for development of small scale community infrastructure.
- To increase accessibility of disadvantaged communities to infrastructure, health and education.
- To strengthen the institutional capacity of partner organizations and support them in their capacity building efforts with communities.
Pakistan poverty Alleviation Funds (PPAF) is a community led demand driven institution and focuses on non- prescriptive and thrust model- neutral but value-driven partnership. The main thrust of PPAF is to support and strengthen such institutions for the poor (Poor Organizations), which are pro-poor, well governed, transparent, democratic and accountable. In the last ten years, PPAF has successfully laid the foundation for a vibrant and responsive development sector by expanding its presence across almost all the districts in the country. At the same time, PPAF worked on developing human and institutional capacities of its partner organizations, thereby enabling small emerging outfit to transform into medium and large organizations.PPAF is the leading agency for poverty reduction in Pakistan, which embodies the spirit of private – public partnership to address the multi-dimensional issues of poverty. It’s multidimensional experience concludes that local, indigenous and community based institutions are a pre-requisite for spending on the poor to achieve the positive development outcomes.
Consequently, Microfinance Innovation and Outreach Program (MIOP) comprised of three components or multidimensional development activity. Thus, PPAF has cumulatively financed over Rs. million 4.7 micro credit loans, completed 25000 health, education, water and infrastructural projects, conducted over 11500 training events and developed a grass root network for 297000 community organizations. PPAF’s coverage has simultaneously increased to include129 districts through 99 partner organizations across all provinces and regions.
PPAF was also at the forefront in responding to the devastating floods that ravaged the country in2010-11 and is undertaking a comprehensive recovery, rehabilitation and reconstruction effort in the affected areas.
2.Objectives of the Study
The main objectives of the study were to analyze changes in demographic characteristics, housing conditions, ownership of assets, composition of household incomes and expenditure, under weight and under height children and change in role of males and females in decision making regarding different household activities.
3.Methodology
A representative sampling is essential to derive the reliable results from the primary data collected from the concerned population. The first and the foremostcomponent of the population to be considered for representative sample size is the variability, measured considering relevant indicator of the elementary units of the population, for which thelist of the elementary units becomes primary requirement. However in the absence of the list of the population, the guessed variability, which has been theoretically accepted can be used to have representative sample size. Consequently the representative sample size was determined by applying the formula considering the guessed variability for maximum sample size i.e., 50 %.The formula is as under:-
n=
Where
n=Sample size
N= Total beneficiaries
Z= Normal variate at 90 percent precision level
d =Acceptable error
V = Guessed variability among sampling units (50%)
for the maximum sample size.
3.1:Sample Size for Community Support Concern (CSC) in Kasur
Using the above given formula, the sample size has drawn for the bench mark survey considering the acceptable error=9.3%
n = = = 99.9 say =100
Thus, the sample size of the study was 100 respondents.
In bench mark survey the institute, however collected households level data from 112 beneficiaries and 123 non-beneficiaries. In case of evaluation study, the data was collected from 101 beneficiaries and 104 non-beneficiaries.
3.2Sample Size for Centre for Women Cooperative Development (CWCD) in Sheikhupura
In case of this component the sample size for the benchmark survey was determined by applying the already described formula which was as under:-
n=
Where
N= sample size of the beneficiaries
Total beneficiaries= 181
N= Normal variate at 95 percent precision level
d = acceptable error i-e 3.32 percent
V = Guessed variability among sampling units (50 percent) for the maximum sampling size.
N= = = 149.87
say 150.
The sample size for the study for this (CWCD) component was 150. The data was collected from 150 beneficiaries and 175 non-beneficiaries. For evaluation survey 150 beneficiaries and 152 non-beneficiaries were contacted to collect relevant information.
4.Results of the Study
The results of the study were discussed collectively for all the components i-e women empowerment, housing profile and income, expenditure and poverty status to cover all the described objectives of the introduced activities.
4.1Women Empowerment
The PPAF loans were distributed not only to improve socio-economic situation of the households under umbrella of introduced development activities but also resulted in giving more weight and respect to their opinion to the voice of women in deciding matters relating to the daily life.
4.2Household Demographic Features
Household demographic features include ratio of male and female in the considered sample population and estimated size of the households eating from the same kitchen. The data given in Table 1 reflectedthat the demographic features of the household families in the project and non-project area in both the benchmark and evaluation survey were almost identical. It was noted that percentage of female population increased in the project and non-project area during evaluation survey as compared with that of benchmark survey. But in the Sheikhupura district, it decreased in the evaluation survey in the non-project area of Kasur district.
The above Table shows that in benchmark survey, the average family size in the project area was 6.4 and it was 5.1 in the non-project area, but it decreased to 5.9 persons in evaluation survey and increased to 5.5 in the non-project area in evaluation survey. Contrast to that the household size increased in the Sheikhupura district in the project area in evaluation survey and remained the samein the non-project area.
The findings of the evaluation survey were evident that in the project area, percentage of male decreased from 55 (benchmark survey) to 53.4 whereas, the percentage of female members increased from 45.0 to 46.3. The family size however, reduced to 5.9 as compared with 6.4 persons in the benchmark survey. Decrease in the percentage of male members is not a healthy sign as in the near future, it will result into reduction of earning numbers of the family and it might cause decrease in per capita income.
In project area, male and female ratio tilted in favour of female population and average family size also increased from 5.6 persons in benchmark survey to 6.5 persons in evaluation survey. Contrary to this, in non-project area, average household size remained constant whereas, male and female ratio was almost the same in both the benchmark and evaluation surveys. Increase in the percentage of female population and family size are indicative of the fact that awareness regarding family practices was not created under the programme.
4.3Age-wise Distribution of Population
The age- wise distribution of the population of the sample area of the district Kasur and Sheikhupura has been presented in the Table2.The age- wise distribution of the population of the sample area of the district KasurSheikhupurahas been presented in the Table 2.In the districtSheikhupura, one third (33.0 percent) of male population fell in age bracket of less than 15 years. Whereas the male population of this area in the age bracket (15 ≥ 60 years) was reported to be 64.7 percent of the population whereas the female group of this age was 53.7 percent in the project area. In the non-project area the reported difference was in the female category of the same age. At the time of evaluation, male and female population decreased in the age bracket of < 15 years both in the project and non-project area. However, in the age bracket (15≥ 60 years) and (>60) years there reported increase not only in male but also in female population in the project as well as in the non-project area.
The similar situations with respect to changes in the age brackets were occurred in the district Sheikhupuraproject and non-project area.
4.4Decision Making in Household
The role of male and female in decision making regarding children, social events and family size has been of profound importance and was assessed. The results have been presented in Table 3.
The results of benchmark as well as evaluation results highlighted that most of the important decisions relating to marriage of children, family size, social events and children education were jointly taken by male and female. The males were dominant in taking decision regarding employment, whereas discussion pertaining to daily food was the privilege of female.
The percentage of females taking decision about daily food was computed during benchmark survey and it was found as 67.3 and 36.9 in project and non-project area respectively. As per evaluation survey, the decision in this regard was being taken by 40.4 and 67.7 percent females in project and non-project area respectively.
The results of evaluation survey indicated that the percentage of women deciding about social events independently declined in both the project and non-project area as compared with the findings of benchmark survey.
4.5Women Having Control over Household Resources
The household resources refer to cash, income, assets and budget. Consequently, the accessibility of women to these resources was assessed during the benchmark and evaluation surveys, the results are detailed in Table4.
It transpired from survey results that the women were dominating in taking decision regarding access and control over cash, income, and budget in both the districts, Kasur and Sheikhupura, while 78.3 percent women had access and control over cash, 52.2 percent had access to income, while 26.1 and 41.2 percentreported to somewhat independency related to assets.
4.6Female Having Access to Employment
In rural environmental circumstances under familiar aspirations, the women, even the literate, are not supposed to work to earn money in this era of vast awareness considering the literacy status of the areas. Since this aspect specifically relating to females has been included in all the development project funded by donor agencies to provide awareness among females to be broad minded and not confine to themselves within the boundary wall of the house. Here it was onlyto probe access of female in employment opportunities to examining the mind of females as well as the reaction of males in this context.Consequently, Female’s access to assets and employment was assessed during survey and the results are presented in Table 5.
Theaffirmativeresponse by 87.0 percent and 100 percent women regarding access to market was reported in Kasur and Sheikhupura district respectively. Whereas 87.0 percent women from Kasur District and 94.1 percent opined that they could decide themselves to visit and participate in social events / places (Table 5).
4.7Awareness of Women Regarding Local Rights
Local rights include Nikah Nama, Law of Inheritance and other Rights (concerning social and economic obligations) were assessed during the surveys. The views of females regarding their awareness about basic rights, Nikah Nama and inheritance laws obtained have been presented in Table6.
The Table reflected that that 73.9 percent women from Kasur district and 52.9 percent women from Sheikhupura district were aware of their basic rights , 60.9 percent and 52.9 percent were aware of different clauses of Nikah Nama in district Kasur and district Sheikhupura respectively. However,52.2 percent women from Kasur district and 47.1 percent women from Sheikhupura district had awareness about the law of inheritance.
4.8Impact of Loan in Change of Social Status of Women
Loan provision for women was a component of the project aiming at changes in social status of women residing in the project jurisdiction. Consequently, the female respondents were interviewed to obtain views regarding the impact of benefits accrued of loan provisionand the response has been presented in the Table 7.
During the survey, it was discovered that the status of 50 percent females had improved after taking loan, while 13.6 percent women reported no improvement in status dealings,while 36.4 percent reported no impact on their social status in Kasur district. However, in Sheikhupura,88.2 percent females informed that their status was improved due to obtaining loan from PPAF, while equal 5.9 percent females informed that their status remained unchanged and had no impact on their living respectively in this area.
4.9Importance of Female Opinion Increased or Decreased After Taking Loan
Money specifically in rural areas played a role in determining significance of her existing in the household.During the survey, females were asked about the importance of their opinion regarding different issues after obtaining loan from PPAF (Table8).
The loans were provided by PPAF to increase the status and the opinion of women to increase significant or the status of them in decision making at households. Thus, the Table reflected that the significance of women in decision regarding children’s education and their marriage had increased by 26.7 percent and 21.7 percent respectively in Kasur district,whereas, regarding children’s marriage, and children education, an equal proportion i.e., 62.5 percent women informed that the importance of their opinion had increased in district Sheikhupura. The majority of females i.e. 78.3, 73.3, 82.6, 85.7 and 92.3 percent replied that the loan had no impact on their opinion regarding children’s marriage, children’s education, family’s discord, business decisions, purchasing / selling of household items and purchasing / selling of property respectively in district Kasur.
4.10Impact of Loan in Change of Social Status of Women
The provision of micro finance services effectively can help build physical and human capital, relieving opportunity constraints that hinder economic growth from being distributed equitably. PPAF had cumulatively disbursed Rs. 25.2 billion to 45 partner organizations for microcredit on lending to women to change social status of women in the sample areas of Punjab. The impact of loan in changing social status of women was asked from the sample female respondents (Table 9).As is evident from the above table that the status of 50 percent females had improved after taking loan in Kasur district, while 88.2 percent females in Sheikhupura district, informed that their status was improved due to obtaining loan from PPAF (Table9).
4.11Housing Condition
The better living conditions and atmosphere help improving the efficiency of human beings and have effect on their health. Keeping in view of the importance of living conditions, the respondents households residing in the project and non-project areas of districts Kasur and Sheikhupura were asked during benchmark and evaluation surveys about the condition s of their houses specially, The data /information obtained in this regard was presented in Tables 8.The survey results revealed that a majority of the in the project area of Kasur, 72.3, 20.5 percent households had two or three sleeping rooms respectively. Similarly, in benchmark survey in the non-project area, it was found that 70.7, 22.0 percent households had two or three sleeping rooms respectively.