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Pakistan looks to Chinese model to eradicate poverty

Bilal Sabri 中国投资参考 2019-08-09




In his numerous public speeches, Prime Minister Imran Khan has expressed the desire to learn from China how to fight the monsters of poverty, rampant corruption, and the downfall of the agriculture sector. Experts and political analysts believe that poverty can’t be eliminated without launching appropriately targeted programs, just like China did. To better devise policies while using the limited resources efficiently, they say, the Chinese model to eradicate poverty is crucial to understand.

learn from China how to fight the monsters of poverty

Pakistan is keen to eliminate the multidimensional poverty by creating job opportunities, giving unemployment insurance, taking care of the disadvantaged or disabled and providing people with basic health and education facilities, among other things.

All this because the Prime Minister of Pakistan Imran Khan has envisioned that Pakistan should be a welfare state where the state should play a key role in the protection and promotion of the social and economic wellbeing of its citizens.

In his one of his addresses to the nation, the premier while elaborating the notion of the welfare state had said that state should pay and take care of the disadvantaged or disabled, orphans, widows and those who can’t work because of a disease, old age or any infirmity. With an aim to take a radical departure from the conventional trajectory, PM Khan has time and again said that the state should take the responsibility of those who are unable to earn a livelihood.

PM Khan keeps mentioning the Riyasat-e-Madina (State of Madina) — the period of Prophet Muhammad and first four Muslim caliphs — but in his numerous public speeches, he has expressed the desire to learn from China how to fight the monsters of poverty, rampant corruption, and the downfall of the agriculture sector.

“Pakistan would like to learn from Chinese experience in poverty alleviation, fighting corruption and agriculture development through sharing expertise, technology and best practices in the sector,” he was quoted as saying by Pakistani media.

In a subsequent meeting with members of a visiting delegation of the Communist Party of China (CPC), the Minister of International Development of China Song Tao had not only assured PM Khan of China’s support at regional and international level but made it certain that China would help Pakistan in poverty alleviation, fighting corruption and agricultural reforms.

While terming the China Pakistan Economic Corridor (CPEC) as a flagship project of Belt and Road Initiative (BRI), Mr Tao had said that CPEC and BRI would make significant contributions towards building a “Naya” (new) Pakistan — the term that PM Khan has been using since his election campaign.

In his recent keynote speech at the opening ceremony of the second Belt and Road Forum in Beijing, PM Khan suggested collaboration on creating a poverty alleviation fund, among other things as he believes the way China has lifted around 800 million people out of poverty while another thirty million would be lifted by 2020, Pakistan should also do the same. Perhaps, that is why Khan has called for greater attention towards tackling poverty while Pakistan and China enter the next phase of CPEC.

In a new report, the World Bank has stated that China’s massive Belt and Road infrastructure can speed up economic development and reduce poverty for dozens of developing countries. The report has revealed that Belt and Road, which will connect China to Europe via central and Southern Asia through ports, railways, roads and bridges, has the capability to lift roughly 32 million people out of poverty conditions.

When I say Pakistan and China are entering the next phase of CPEC, it is pertinent to mention that as many as 700,000 new job opportunities for local people are estimated to be created by 2030 under CPEC. According to the Chinese Embassy documents, CPEC has so far provided direct job opportunities to 75,000 people across the country. In addition, the Ministry of Planning, Development and Reforms of Pakistan has estimated that CPEC can create even 1.2 million jobs if the presently agreed projects are completed.

Reportedly, poverty alleviation is a significant issue as 24.3 percent of population still lives under perilous conditions in Pakistan. Keeping in view the World Bank report and news job opportunities that are linked with CPEC, I believe, Pakistan should ensure that the CPEC is completed within stipulated time because it would ultimately take a lot of burden away from government’s shoulder.

“Ehsaas”

Pulling people out of poverty is mandatory for the economic and social wellbeing of any country. In order to eradicate poverty, the new government has started various projects. The boldest and the most important is a policy framework for its poverty alleviation program, “Ehsaas” (care or to feel for others).

On March 27, PM Khan had announced to launch Ehsaas Programme with its four focus areas and 155 policy actions to reduce inequality, invest in people and uplift lagging districts. Based on lessons from China’s poverty alleviation program, Ehsaas Program is an institutional framework and the largest social welfare initiative in the history of Pakistan.

Dr Sania Nishtar, the head of Poverty Alleviation Coordination Council, has developed the program after consultation with all stakeholders in the private and public sectors. While borrowing lessons from China, the program aims to transform the lives of disadvantaged sections of society within the next four years – by laying the foundations of the welfare state.

In an interview, Dr Nishtar while explaining the reason why the program was created said that the federal government agencies that were previously mandated to deliver social security were Benazir Income Support Program (BISP), Baitul Mal, Pakistan Poverty Alleviation Fund and many other smaller entities were working independently as they were attached to different ministries.

She said that Ehsaas program will not only bring them all together under one division but would also create a door for ‘one window operation’.

Five million low-cost housing units for poor, employment opportunities, social security, health and education, and working conditions are some of the other projects that are aimed at paving the way to curb the menace of poverty.

Experts and political analysts believe that all these projects can’t eliminate poverty without launching appropriately targeted programs, just like China did. To better devise policies while using the limited resources efficiently, they say, the Chinese model to eradicate poverty is crucial to understand.

A little research shows that China customized its poverty alleviation programs separately for the rural and urban poor. Poor individuals with no sustainable source of income, no capability to work and without any guardian were taken into account under the program. Later, the program was spread to facilitate the poor with health and education downsides. In addition, various jobs were allocated by rural or urban administrations to the poor so that they could earn their livings by themselves and spend it to fulfill the basic needs.

In the same way, it seems Pakistan has learned lessons from the success story of China to end multidimensional poverty as the Ehsaas program is based on a similar framework. Ehsaas program has four pillars; the first is centered around governance and state capture, the second pillar is the social protection, the third pillar is livelihoods, and the fourth pillar is the development of human capital.

With an aim to provide food, clothing, housing, education and medical relief, Ehsaas is for those who require social protection. To put it into practice, the Pakistani government allocated R 80 billion for Ehsaas Program in the federal budget 2019-20, which will be raised to Rs120 billion in the financial year 2021-22.

To uplift people from poverty who had been living below the poverty line since the beginning of the 20th century, the Chinese government had opted for the multi-targeted program instead of going for cash transfer schemes. Chinese government kept control over the domestic economy and granted protection to the domestic industry which was prone to competition.

Though Pakistan is already following the footsteps of China, I believe, innovative methods must be adopted to get rid of poverty as China did. Although BISP and other programs have helped in curbing poverty, the Pakistani government needs to come up with more concentrated and targeted policies to eradicate poverty. Multidimensional poverty is a big challenge and government while incorporating changes as per the domestic environment should not delay the planned institutional framework — Ehsaas program.

Personally, I believe, the federal and provincial government should work simultaneously and collaborate with each other to get significant results as it would help to curb multidimensional poverty in Pakistan.



Editor |  Yang Haixia

Design | Sun Ziyue

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《中国投资》杂志创办自1985年,由国家发改委主管,国家发改委投资研究所、中国国际工程咨询有限公司主办,是我国投资领域唯一的中央级刊物,业界最早专注于投资领域趋势报道的核心期刊。创刊三十多年以来,杂志以全球视角看中国投资,涵盖宏观经济、行业分析和企业投资案例,同时以全球市场为坐标,聚焦特定国家、地区和重大国际趋势,目前已经成为世界各国政府官员、各类投资机构、专家学者、企业家以及记者媒体的专业对话平台。《中国投资》杂志每期覆盖包括上市公司在内的200多家央企国企和10000多家中国民营企业、1000多家中央与地方政府决策部门和机构、1000多家行业协会和商会、300多家主要金融机构等,是了解宏观经济环境、行业趋势前景和企业投资案例的重要参考。自2016年始,在中联部等相关机构的共同支持下,《中国投资》非洲版面世,为非洲各国与中国持久的大规模合作,提供一个专业而强大的对话平台。2017年,《中国投资》丝路版诞生,为一带一路框架下各国各方与中国的合作互鉴,提供前瞻包容的思想引领,分享各行各业的创新创举,在探索人类命运共同体的道路上共创未来。China Investment, founded in 1985, is a monthly under the supervision of National Development and Reform Commission (NDRC) China’s macro-economic management agency, It’s jointly operated by Investment Research Institute under NDRC, China International Engineering Consulting Corporation. Enjoying an exclusive position under the central government, China Investment is the core journal which started the earliest among similar magazines to focus on the investment trend. Over the past 30-plus years, China Investment has been in line with theglobal market as its fundamental coordinate with a strategic focus on specific countries and regional markets and those major international propensities. China Investment is a key dialogue platform for officials from different countries, investment agencies, experts and scholars, business people and journalists.China Investment has been a key source of references for the better understanding of macro-economic environment, sectoral and industrial outlook, and cases of investments, thanks to the fact that each of its new issue touches upon activities of more than 200 Chinese SOEs, listed or non-public, 10,000 private enterprises, 1000 decision-making bodies at the central and local governments, 1000 trade associations and chambers, and 300 strong major financial institutions.Starting from May 2016 and under the auspices of the Ministry of Foreign Affairs and International Department of the Central Committee of Communist Party of China, China Investment African Edition came into being, providing a professional and powerful platform of dialogue for the ever-growing and sustainable cooperation between China and the African countries throughout the continent.Inspired by Belt and Road Initiative, China Investment Belts & Roads Edition was born in May 2017, which provides forward thinking for the cooperation and mutual learning between China and related countries. It also aims to share the innovative ideas in various trades and industries and explore a shared future in building a common community formankind.官方网站:点击“阅读原文”


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