ECONOMY OF PAKISTAN

CHAPTER -3
THE GREEN REVOLUTION AND LAND REFORM
 NAME ROLL NO
Taniya Sehito 2k18/BBAE/154

Sakeena Rao 2k18/BBAE/128

Shah Jahan 2K18/BBAE/135

Iqrar Hussain baladi 2K18/BBAE/75

Abdul Qadeer baloch 2k18/BBAE/06

Sayed Ali Murtaza Shah 2k18/BBAE/176

Shafeeque Mazari 2k18/BBAE/134

Dildar Ali Mari 2k18/BBAE/44

Abdul Jabbar 2K18/BBAE/04

Raheel Lakho 2k18/BBAE/120

OBJECTIVE:
To study two important events; Green Revolution and Land Reforms
which resulted in the transformation of the agricultural sector

GREEN REVOLUTION:
Refers to the phenomenon of the spectacular rise in agricultural
production (particularly the production of wheat and rice in the late
60’s and early 70’s) as a result of the introduction of HYV’s
 Agricultural Growth Rates; 1949-69
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Green Revolution
 DISMAL PERFORMANCE OF AGRICULTURE IN
THE FORMATIVE YEARS; 1949-58

 Average annual growth rate was 1.43%, less than half of

the population growth rate.

 MARKED CHANGE IN PERFORMANCE DURING

60S.
Green Revolution
 DECADE OF 60S: SPECTACULAR GROWTH IN
AGRICULTURE TOOK PLACE IN TWO PHASES:

 FY60-FY64: Average annual grow rate: 3.7%

 Main cause: Increase in irrigation facilities, mainly tube-wells
 B/w FY61 and FY65; 25000 new tube-wells were installed.
 Farm area serviced by tube-wells doubled
Green Revolution
 FY1965 to FY 70: Average annual growth rate was 6.3%
 Main cause: irrigation was supplemented with:
 HYV seeds for wheat and rice
 Chemical fertilizers
 Pesticides
 Green revolution was at its peak between FY67-FY68.

 Overall: Most important ingredient of the Green Revolution’s

technology package was availability of water, as and when required.
Green Revolution
HYV SEEDS FOR WHEAT:
 International Wheat and Maize Improvement Center established in
Mexico in 1943
 Developed the dwarf high yielding variety of wheat, which tripled
Mexican wheat production between 1944 and 1967
 Wheat acreage under HYV’s, in UDC’s, increased from 10,000 hectares
in 1965 to over 17 million in 1973.
 Provided impetus for adoption of HYV’s in food deficit countries
(e.g. India, Pakistan, Turkey etc.)
 Mexi-Pak wheat seed experimented and reproduced across large
areas.
Green Revolution
 HYV SEEDS FOR RICE:
 International Rice Research Institute (IRRI) founded in Philippines in
1962.
 Lester Brown discovered the high yielding miracle dwarf variety of
rice, known as IRRI-6
 Rice acreage under the HYV, in UDC’s, increased from 49,000
hectares in 1965 to 16 million in 1973
Green Revolution in Pakistan
 GREEN REVOLUTION A RESOUNDING SUCCESS AS FAR AS
PRODUCTION, GROWTH AND OUTPUT ARE CONCERNED;
 WHEAT PRODUCTION INCREASED BY 91% B/W 1960-70
 RICE PRODUCTION INCREASED BY 141% OVER THE SAME
PERIOD.
 PRODUCTION OF OTHER CROPS- NOT RELATED TO HYV SEEDS
ALSO INCREASED BECAUSE OF NON-SEED FACTORS IN THE
TECHNOLOGY PACKAGE.
 Green Revolution in Pakistan
 THE FIRST PLAN: ACCORDED LOW PRIORITY TO AGRICULTURE
 2ND PLAN: AGRICULTURAL DEVELOPMENT ACCORDED A HIGHER
PRIORITY
 1960 – 65: ALL IMPORTANT FOOD AND CASH CROPS (WHEAT, RICE,
COTTON, SUGARCANE) RECORDED MEANINGFUL PRODUCTIVITY GAINS

 1965 – 70 SHOWS PHENOMENAL GROWTH RATES:

 food grains: 18% p.a.
 Cotton: 6%
 Sugarcane: 8%
The Green Revolution in Pakistan
 THE IDEA OF CAPITALIST FARMING GAINS POPULARITY: FARMERS
BECOME RECEPTIVE TO PRICE CHANGES AND TO THE IMPROVED
SEED-FERTILIZER-WATER TECHNOLOGY PACKAGE

 RURAL ACTIVITY INCREASED, RESULTING IN AN UNPRECEDENTED

SURGE OF PROSPERITY
Factors behind the Revolution
PRIME VEHICLES OF CHANGE:
 THE MASSIVE SWITCH OVER TO HYV’S

 CONSUMPTION OF FERTILIZERS: THREE FOLD INCREASE FROM 111.8

THOUSAND TONNES TO 381.9 THOUSAND TONNES (1967 – 72)

 AREA COVERED BY PLANT PROTECTION: 1.7 MILLION SPRAY ACRES TO 4.14

MILLION (1967 – 72)

 TUBEWELLS: 58% INCREASE IN THE AREA IRRIGATED OVER THE SAME TIME
SPAN

 TRACTORS: 13,764 IN 1968 TO 27,329 IN 1975.

Factors behind the Revolution
 AGRICULTURAL PRICE POLICY:
 Heavy subsidies given on tractors, tube wells, pesticides and fertilizers:
low input policy
 High output price policy for food and cash crops to correct the balance
in favor of the agricultural sector: support prices raised substantially

 INCREASED CREDIT AVAILABILITY:

 Five fold increase in credit disbursement by ADBP
 Commercial banks also start lending more
Impact of the Green Revolution
1. INCREASE IN PRODUCTIVITY AND AVOIDANCE OF ECONOMIC STAGNATION

2. AN ALTERNATIVE TO LAND REFORMS

3. DIRECT AND INDIRECT EMPLOYMENT BENEFITS

4. IMPACT ON INCOME DISTRIBUTION

5. IMPACT ON REGIONAL DISPARITIES

6. EMPLOYMENT DISPLACING IMPACT

7. EFFECT ON PEOPLE’S DIET AND NUTRITION

8. EFFECT ON NATURE.
Increase in productivity
1. Increase in productivity and avoidance of economic stagnation
2. An alternative to Land Reforms
3. Direct and Indirect Employment Benefits
4. Impact on Income distribution
5. Impact on Regional Disparities
6. Employment displacing impact
7. Effect on people’s diet and nutrition
8. Effect on nature.
An alternative to Land Reforms
 APART FROM THE REVOLUTION, LAND REFORMS WAS THE ONLY
OTHER WAY TO INCREASE PRODUCTION AND REDUCE RURAL
POVERTY

 WESTERN INTERESTS: INCREASED PROFITS OF MULTI-NATIONAL’S

WHO WERE DOING BUSINESS IN AGRICULTURAL INPUTS
Direct and Indirect Employment Benefits
 CREATED MORE JOBS FOR AGRICULTURAL LABORERS

 Real wages of permanent and casual agricultural labor increased by 2.6% and 2.8% p.a.
respectively from 1966 – 73.

 REDUCED UNDEREMPLOYMENT BY PROVIDING MORE EMPLOYMENT TO

VILLAGE ARTISANS SUCH AS CARPENTERS, BLACKSMITHS, POTTERS ETC.

 INDIRECT BENEFITS EXTENDED TO NON-RURAL GROUPS: INCREASED

DEMAND OF CONSUMPTION AND INVESTMENT GOODS BY FARMERS, WHICH
ARE PRODUCED IN THE URBAN INDUSTRIAL SECTOR.
Impact on Income distribution
 NEGATIVE INFLUENCE ON INCOME DISTRIBUTION
 The success of HYV’s depended on optimal and simultaneous use of fertilizers,
water and pesticides
 Small farmers did not have resources to purchase these inputs.
 Large farmers had easier access to credit, canal water supplies and other
extension services
 1968: only about 4% of the total tube wells were installed by small farmers (13
acres of land), while 70% were owned by farmers possessing more than 25 acres.
Impact on Regional Disparities
 THE AREAS SELECTED FOR EXPERIMENTATION WERE THE MOST FERTILE,
MOST OPTIMALLY IRRIGATED AND MOST PROSPEROUS.

 SINCE NEW TECHNOLOGIES WERE CONCENTRATED IN AFFLUENT AREAS,

REGIONAL DISPARITIES WERE AGGRAVATED

 PAKISTAN: BALUCHISTAN AND NWFP FAILED TO REAP THE BENEFITS OF

MODERN INPUTS

 BURKI: ‘IT WAS THE FARMERS WHO OWNED B/W 50 AND 100 ACRES OF LAND,
ALMOST ALL OF THEM IN THE PUNJAB, WHO PRODUCED ‘PAKISTAN’S’
GREEN REVOLUTION
Employment Displacing Effect
 GREATER MECHANIZATION OF THE AGRICULTURAL PROCESS =>
EMPLOYMENT DISPLACING

 PARTLY NEUTRALIZED THE EMPLOYMENT GENERATING EFFECT

 WB-ADBP REPORT: THE INTRODUCTION OF A NEW TRACTOR ON

AVERAGE DISPLACED 10 MANUAL WORKERS => 60,000 JOB LOST
DURING 1968 – 72.
Tubewells

 MOST IMPORTANT INGREDIENT IN THE TECHNOLOGY PACKAGE WAS WATER

SINCE THE HYV SEEDS AND FERTILIZER PACKAGE WERE CRITICALLY
DEPENDANT ON IT

 TUBEWELLS INCREASED FROM FEW HUNDRED IN 1960 TO 75,000 IN 1968 AND

156,000 IN 1975.
Tubewells
 ISSUES:
 HIGH CONCENTRATION IN RICH DISTRICTS WITH 91% IN 1968 IN
PUNJAB
 Caused interregional disparities to grow

 GIVEN SIZE AND COST, MAINLY INSTALLED BY LANDOWNERS

WITH OVER 25 ACRS OF LAND

 DEPENDED ON ABILITY TO BORROW MONEY

Tractorization
 ENCOURAGED BY:
 THE PROVISION OF CHEAP CREDIT (THOUGH ADBP)
 OVERVALUED EXCHANGE RATE MADE TRACTORS CHEAP
 INCREASED PRODUCTIVITY

 AS A RESULT TRACTORS INCREASED FROM 2,000 IN 1959 TO 18,909 IN 1968

 58% IN LAHORE, MULTAN AND BHAWALPUR DISTRICTS
 CLOSE LINK BETWEEN TUBEWELL AND TRACTOR OWNERSHIP – 75%
1973 – 77: Green Rev runs out of Steam
CAUSES:

 Deterioration in the quality of seed due to non-rotation of the seed over different
regions

 Defective pattern of adoption: farmers were handicapped due to financial and

management constraints

 Water requirement of the new technology not fully met

 Water-logging and salinity in the Punjab

Background
 LAND REFORMS:
 Important mechanism for changing ownership and wealth patterns.
 Implies a redistribution of land away from large landholders to those who are
often landless.
 Two sets of land reforms have occurred in Pakistan.
Land Reforms
 A LONG HISTORY OF LAND REFORM ATTEMPTS.
 REASON FOR FAILURE:
 Landlords was the most significant class in the Muslim League
 50% of councilmen in Punjab were large landlords
 60% of councilmen in Sind were large landlords.
Land Reforms - 1959
 PUT CEILINGS ON LANDHOLDINGS

 SMALL AMOUNT OF LAND HANDED OVER; MOREOVER MOST WAS

UNCULTIVATED LAND

 IMPORTANT FEATURE: RESUMED LAND TO BE SOLD TO LANDLESS

TENANTS

 LOOPHOLES: INTRA-FAMILY AND INTRA-HOUSEHOLDS TRANSFERS

ALLOWED.

 EFFECTS:

 Burki: precursor to the dynamic middle-class farmer

 Alavi: maintained hold of the landlord

Land Reforms - 1972
 CEILINGS FURTHER LOWERED

 SMALL AMOUNT OF LAND HANDED OVER; MOREOVER MOST

WAS UNCULTIVATED LAND

 IMPORTANT FEATURE: LAND RESUMED WOULD NOT RECEIVE

ANY COMPENSATION AND LAND TO BE GIVEN FREE TO
LANDLESS TENANTS

 ONLY 1% OF LANDLESS BENEFITED FROM THE REFORMS

Land Reforms
 HIGHLY SKEWED LAND OWNERSHIP IS THE SINGLE MOST RETARDING FACTOR
IN AGRICULTURE

 LAND OWNERSHIP STRUCTURE HAS NOT CHANGED DESPITE LAND REFORMS

OF ’59 AND ’72

 LAND REFORMS LARGELY NEUTRALIZED DUE TO TRANSFER OF LAND IN

FAVOR OF RELATIVES, B/C CEILINGS WERE FIXED PER PERSON RATHER THAN
PER FAMILY

 LAND SURRENDERED WAS LARGELY FALLOW AND BARREN

 ADDITIONAL LAND REFORMS DO NOT SEEM POLITICALLY POSSIBLE AT THE

MOMENT