The unbridled rampage of poverty

Pakistans return to democracy has come at a high price. Always embattled by perceived conspiracies against democracy, the current assemblies have been woefully slow in responding to crises, many of which began under the previous regime.
Booming international prices of oil added to inflation, already fuelled by imprudent government borrowing from the central bank, the energy crisis worsened, internal security remained feeble, commodity price shocks and mega floods shattered purchasing power of consumers.
The countrys real GDP growth rate reached 3.7 percent in 2012; the lowest in South Asia. The difference compared to regional peers; Bangladesh 5.9 percent, India 6.9 percent and Sri Lanka 7.5 percent, is also astounding. The economic slowdown has hit the least well-off segments of society particularly hard and chronic poverty appears a daunting evil for the economy as a whole.
The Planning Commission of Pakistan, in its Annual Plan 2012-13, has contended that inclusive, pro-poor growth is the only solution. It has stressed that Government should target employment generation, while working to improve governance and transparency in State institutions.
The chronic nature of poverty is also linked to lagging human development indicators in the country. Pakistan mustered an HDI tally of 0.504 in 2011, compared to South Asias average HDI value of 0.548 and the worlds HDI average of 0.682.
Pakistan Social and Living Standards Measurement 2010-11 revealed that around 33 percent of households experienced worse economic situation in 2010-11 compared to about 28 percent households in 2008-09.
That Survey found only 1.64 percent of all households to be relatively better off compared to the previous year compared 2.39 percent, over the 2008-2009 period. Clearly, besides being dismally slow, the economic growth has not been inclusive.
The Annual Plan highlighted that human resource development will have to be a priority in fiscal interventions to address poverty. Citing the example of Benazir Income Support Programme, that has provided targeted financial support to vulnerable households, the PC contends, transfers should be linked to initiatives for boosting skill development and attracting private sector investments, particularly in areas that have been largely excluded from economic progress.
Reigning in rampaging poverty and unprecedented declines in purchasing power will require putting skills in the hands of all segments of the population along with incentives for the private sector to invest in untapped segments.