Sustainable Economy


Contents:


     1-     Definition and Scope
          1.1-     Sub-sectors
     2-     Analysis
          2.1-     History
          2.2-     Present Conditions, issues: assets, deficiencies
     3-     Proposals
          3.1-     Objectives/Goals
          3.2-     Policies
          3.3-     Strategies
          3.4-     Plans





1-     Definition & Scope



ISDP (LDA’s Integrated Strategic Development Plan for Lahore Region) defines the Background and Rationale for the Study as follows:

BACKGROUND
1. Urbanization presents one of the key challenges and, at the same time,
opportunities in the new millennium” “Those cities that fail to plan ahead and
execute the plans will not be competitive in the globalized world. Urban economies are contributing significantly more to national exchequer and at the same time have become key employment markets. Cities indeed are important engines of economic growth and provide significant economies of scale in the provision of jobs, housing
and services. …
3. The Government of the Punjab intends to develop urban areas of the Province as sustainable, livable and well managed engines of economic growth. Lahore and its
surrounding towns have expanded greatly accommodating almost half population of
the Province, and hence requires a comprehensive, strategic, regional, and long-
term plan. …

RATIONALE FOR THE STUDY
6. … The previous master plans and studies kept narrow focus on land use planning and lacked strategic vision and focus on economic development, environmental
conditions, financial and implementation arrangements. …
STUDY AREA
8. The study area includes area under the jurisdiction of City District Government,
Lahore, as well as surrounding areas of Lahore Division, which have or are likely to
urbanize in next twenty years, to be later demarcated as the “Lahore Region”
GOAL & OBJECTIVES OF THE STUDY
9. The overall goal of the ISDP-35 is to facilitate economic and regional development in the Lahore Region … (our italics)

We do not share the corporate business vision of rapid urbanization as an investment opportunity, and cities as employment markets, whose expanding size provides economies of scale for profiteers who are valorized for their contribution to the national exchequer


The City & its Region



     Cities process primary raw materials, manufacturer secondary products and provide tertiary services.
     Economically they are integrated with the region that produces the primary products, and the region to which they provide goods and services.
     In a symbiotic relationship, the value of what each takes from the other is more or less equivalent to what it gives.
     In a parasitic relationship the city extracts resources in excess of their rates of renewal and re-generation, and produces toxic and non-recyclable waste.
Development is not a goal
Change is the only constant in nature. Everything originates at some point in time and space,
evolves and develops to some degree of attainment of its normative state, and then regresses, or degenerates until the entity as such ceases to exist. Thus traditionally, all of existence is seen as a cyclic process in which “development and evolution” are phases in the process of becoming, and “progress” is measured by the degree of attainment of a normative state of being or a desired goal. Yet in modernist and progressive discourses ‘progress, and evolution’ is regarded as a one way, endless linear process, in which there is no normative state of being or desired goal other than the process itself. In these discourses development is equated with economic growth, and the development of the modes of production, and urbanization is regarded as a necessary condition of economic growth. Man himself - human behavior, life-styles, values, beliefs - is expected to “evolve” and adapt to the new conditions brought about by development. But we need to remind ourselves that this modern development paradigm is not a law of nature but a man-made construct that has its roots in the European Renaissance. From Galileo’s empiricism and Descartes’ bifurcation, through the political theories of Hobbes and the economic theories of Bentham, Mill, Adam Smith and Marshall, this model has emerged over the last five or six centuries as the dominant development paradigm, and has attained global currency in our time.
Among the successes of the modernity project have been some truly remarkable achievements in the fields of science and technology, and the equally remarkable accumulation of wealth. The city has come to symbolize the successes of this model, and “urbanization” has passed into the mythology of development economics as “the natural goal of human development”.[1]

Unqualified Economic Growth and Urbanization is not a Sustainable Strategy
In an agrarian economy the workforce is mainly employed in primary production, and there is a small surplus that can support secondary production and tertiary services including commodity manufacture, arts, and armed formations etc. There is some waste, some income disparities and some crime. There is also some reserve to cover risks from disasters.

The nature of pre-industrial urbanization and its relationship with the natural environment is symbiotic and sustainable.
In an industrial economy about half the workforce is employed in primary production, a large proportion is employed in secondary production and tertiary services, while there is a small proportion of unemployed. With the use of non-renewable fossil fuels, mechanized manufacture produces huge surpluses that require global access to resources and markets, and modern cities, resulting in the depletion of resources, increase in non-recyclable and toxic waste and increase in income disparities and crime.

The nature of modern urbanization and its relationship with the natural environment is parasitical and unsustainable.

In a post-industrial economy industrial modes of production are extended to farming and fishing, resulting in still greater surpluses, still greater accumulation of wealth and excessive consumption of goods and services. The secondary and tertiary sectors become the major employers. But sustained economic growth requires continued expansion of production and consumption, thus the creation of ever new demands, far in excess of needs, and the growth of a hyper-consumerist marketing services sector. There is also accelerated depletion of non renewable resources, a marked increase in waste generation, environmental pollution, income disparities, unemployment and crime. All life on the planet is threatened by ecological disaster caused by human economic activity.

The nature of post-industrial urbanization is doubly parasitic and unsustainable



[1] K.K. Mumtaz, “Life in Small Towns”, THAAP Conference, November, 2012

     1.1-     Sub-sectors

  • Resources
  • (primary)Production
  • (secondary) manufacture
  • (tertiary) Services, commerce & trade
  • Work force
  • Linkages


2-     Analysis


     2.1-     History 

Hindu Shahiya (10th century): military fort;

Sultanate (10th – 16th cent.): Military fort, provincial capital, cultural centre;
Mughal (16th – 18th cent): Military fort, imperial capital, manufacturing and regional trade centre;
Sikh (1850): Military cantonment, imperial capital, manufacturing, regional trade and education,
British (1850 – 1947): Military cantonment, provincial capital, global communications and trade, Railway hub; culture;
Pakistan (post 1947): Military cantonment, provincial capital, global communication, trade and culture.

 

 

 

     2.2-     Present conditions, issues: assets, deficiencies


Land

Punjab
            Total Area: 205344 sq.km.
            Cultivable Area: 139476 sq. km.
Lahore Division
Total Area: 14687 sq.km
Cultivable Area: 9455 sq. km
Lahore District:
Total Area:1772 sq.km
Cultivable Area: 319  sq. km
Urban Area: 400 sq. km
Urbanization: over 1,000 hectares every year
  

Population

Punjab:  91.4 million
Lahore Division: 14 million
Lahore District: 8.5 million, 82 % urban.
Population growth rate of 2.5% since 1998 Census is much faster than the national and     provincial rate of 1.9%
   Age Profile in Lahore District is very much young (below 14 = 39.2%; 15 - 49 = 50%)

Source: JAICA study for Lahore Urban Transport Master Plan, March 2012, Vol.1 

 



Poverty/disparity

      GDP[1]
      Poverty threshold per capita/day = $2
      Pakistan: per capita/day = $ 2.62
      Punjab: per capita/day = $ 3.56
      Lahore: per capita/day = $ 13.7
      Incomes Lahore::
      Low (22% of households): per capita/day = less than $ 0.57
Muridke (primary/agriculture sector) = $ 0.126
      Middle (54% of households) per capita/day = $ 0.57 - $ 1.7
      High (24% of households) per capita/day = more than $ 1.7
Cantonment (tertiary/services sector) = $ 2.46

 

Declining economic growth


      GDP: average growth rate declined from 6% in the 1980s to 3% in the last five years


Predominantly No- Productive Occupations


      Employment by zone of residence
Primary: 4.4%
Secondary: 14.6%
Tertiary: 81%

 

High Under-Employment

      Employment Participation rate: 27%
      Unemployment: Exceeds those employed by 27%
Female residents unemployment: 99%
[Source: JAICA study for Lahore Urban Transport Master Plan, March 2012, Vol.1]





Comparative analysis


A comparative analysis of Gross Domestic Product (GDP in terms of US $ per capita per day), shows that globally the present level of production and consumption ($ 27) is 1.5 times more than the sustainable capacity of the planet ($ 18), while Pakistan’s GDP ($ 7.67) is well within the sustainable zone and above the poverty level of $2 per capita per day. Within Pakistan, the provinces of Punjab and Sindh are poor but above the poverty level, while Baluchistan, FATA and KP are below the poverty line. The cities, including Karachi and Lahore, stand out with GDP levels closer to the sustainable maximum.

A comparative analysis of incomes shows that while ¾ of the world’s population is poor, there is a huge disparity, with high incomes far in excess of the maximum sustainable level. Similarly, Pakistan’s cities, including Karachi and Lahore have huge disparities, with low incomes, just above and well below the poverty level respectively, contrasting sharply with the high incomes well in excess of the sustainable level.

Poverty and income disparity in Lahore is further accentuated by very high unemployment.

Global GDP and high-end per capita incomes everywhere, including Karachi and Lahore, are beyond the levels sustainable by the planet, while low-end per capita incomes across the board, and GDP in Baluchistan, KP and FATA, are below the levels necessary to sustain a healthy, secure and dignified life.


[1] http://en.wikipedia.org/wiki/List_of_Pakistani_provinces_by_GDP


3-     Proposals


     3.1-     Objectives/Goals

 

Objectives
o   Actualization of the highest human potential
o   Healthy, secure and dignified life for all citizens.

Goals
1.      Raise low-end incomes to levels above poverty
2.      Reduce unemployment;
3.      Reduce pollution and environmental degradation;
4.      Reduce depletion of non-renewable resources;
5.      Reduce income disparities;
6.      Increase quality and access to social and utility services infrastructure
 

     3.2-     Policies

  •            Production and consumption of goods and services (GDP/GNI) should not fall below subsistence requirements for all citizens, nor exceed environmentally sustainable capacity of the planet; 
  •            Extraction from resources should not exceed their rates of renewal and re-generation; 
  •            All that is consumed should be fully recycled; 
  •            Eliminate toxic and non-recyclable waste; 
  •            Equitable distribution of wealth 
  •            Full employment opportunities for working population;

     3.3-     Strategies

  • ·         Organic farming: production of food and raw materials for manufacturing of consumer products, with priority to domestic needs, including high value added agriculture, fish, dairy, poultry, sericulture etc. while re-introducing traditional methods of fertilizers, pest control and seed selection etc.
o   Reduces unemployment
o   Reduces pollution and environmental degradation;
o   Reduces use of non-renewable resources;
  • ·         Artisanal manufacture: production of commodities including high value added commodities such as carpets, handloom textiles, apparel, furniture, jewelry, surgical instruments, sports goods and preserved foods etc. with priority to domestic needs; based on natural raw materials and renewable energy;
o   Reduces unemployment;
o   Reduces pollution and environmental degradation;
o   Reduces use of non-renewable resources;
  • ·         Progressive taxation on income and non-essential expenditure;
o   Reduces disparity
o   Provides revenue for social and utility services
  • ·         Investment in social and utility services infrastructure.
o   Education
§  Appropriate and relevant education and training in agronomy, product design, production and management skills to improve quality of products including raw materials required for manufacturing hand crafted consumer products e.g. cotton, wool, wood and metals, and in agriculture, fishing and mining production, tapping the wealth of traditional wisdom and re-introducing traditional materials and techniques
o   Health
§  Community health, preventive, environmental
o   Sports
o   Culture
o   Utility Services
§  Water
§  Sanitation
§  Solid waste
§  Public transport
  • ·         Promote co-operatives of self-employed farmers and artisans for professional research and development, management, finance and marketing of products
o   Promotes self employment
o   Increases incomes
o   Reduces disparity
  • ·         Conservation of natural and cultural resources including
o   Water (including River Ravi restoration and lining of canals etc.), soil and air by reducing dependence on mechanization, fossil fuels, chemical fertilizers and pesticides, with better practices in agriculture, mining, forestry (including urban forestry), manufacturing and building industries;
o   tangible and intangible heritage, including wealth of traditional wisdom, knowledge, materials and techniques


     3.4-     Plans







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