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A more detailed review of literature will be presented in the Interim Report.
Questionnaire design highlighted later specifies the nature of the relationships that will be explored
Integrating Rural Urban Linkages for Regional Development in the Province of Sind: A Cluster Based Approach by Dr. Noman Saeed, Applied Economics Research Centre, University of Karachi
Integrating Rural Urban Linkagesfor Regional Development in the Province of Sind: A Cluster Based Approach by Noman SaeedApplied Economics Research Centre, University of Karachi
Outline of the presentation• Objectives of the study• Redefinition of scope of work• Conclusions from a Review of the literature and lessons learnt• Methodology• Sample Selection• Design of Quantitative survey• List of Expert interviews for the Qualitative analysis• Questions for the Qualitative interviews
RationaleIt has been recognized that rural urban linkages can play animportant role in the economic development of countries andregions.Many countries are now following different developmentpolicies. The dichotomous rural vs urban approach has beenreplaced by an integrated development approach which isbased on development of secondary cities small cities andtowns and rural areas.The focus of such policies has been to reinforce the backwardand forward linkages between agricultural production,industry and services to strengthen local and regionaleconomies.
Objectives of the Study• Undertake a review of the literature and identify best practice and policies for development of regions in other countries and explore their relevance to Pakistan and Sindh;• Identify the reasons for growth of the cluster in terms of its economic structure and of competitiveness;• Identify the types of rural urban linkages that exist in the cluster and suggest ways these can be integrated;• Assess how the public sector can contribute to the overall growth of the clusters and Identify areas of public policy interventions for growth and development of the cluster;
Redefined scope of workThe study was to be originally undertaken in 3different clusters of the province but after therevision of the budget the Northern cluster isselected for analysis.
Scope of Work Growth Centres Sukkur Larkana Small Cities Pano Aqil Kamber Rural Areas Chungha Village Khairpur Juso Village Hussain Kalwar Bahir Sharif
Scope of Work• Develop a secondary database for the cluster• Survey of 110 units for Quantitative data collection• Conduct 64 Qualitative interviews
Economic Activities in Cluster-main crops grown S. No. Larkana Sukkur 1. Rice Rice 2. Wheat Wheat 3. Sugarcane Rape Seed and Mustard 4. Line Seed Barley 5. Safflower Masoor 6. Barley Safflower 7. Rape and Mustard Cotton 8. Masoor 9. Mattar 10. Onion
Economic Activities in Cluster-industryS. Industry S. IndustryNo. No.1. Cotton Textiles 7. Hand Pumps2. Tobacco 8. Lock Making3. Cigarettes 9. Rice Husking4. Paint & Varnish .10 Biscuit Factories5. Pharmaceuticals 11. Confectionery6. Agricultural Implements 12. Oil Mills
Literature- definition of rural- urban linkages“Rural-Urban linkages” refers to the flow of(public and private) capital, people (migration,commuting) and goods (trade) between ruraland urban areas- added to these economicflows are ideas, innovation and information.
Review of Literature Literature covers demographic, economic, and political aspects of rural- urban linkages• Many studies analyze the migration of people from the rural areas to the urban areas (and back) and the flow of goods, ideas and money that occurs in the opposite direction as result of the migration.• A second category of studies deals with economic links between rural and urban areas, the extent to which economic development in the one area benefits or obstructs economic development in the other area, and the policy measures necessary to develop a mutually beneficial relationship.• A third category of studies deals with the political aspect of rural-urban linkages and the imbalance of power between the two areas.
Some conclusions from the Literature• Rural areas that are poorly connected to urban areas lack the capacity to compete in the regional, national, and international markets and are less developed. They lack proper information and signals to produce, invest, raise productivity, diversify production, and engage in new activities.
Conclusions from literature• Small towns also suffer from weak financial base for physical, economic and social development. Without specific industrial linkages to agriculture, they tend to have limited production and manufacturing activities, which constrain employment and income generation options.
Lessons Learnt from literature• Develop public infrastructure and services in the rural and urban areas since this will impact on the movements of goods and people.• Strengthen institutional framework and capacities of local Governments• Improve financial and information flows• Create business networks for local and regional economic development
Methodology• Ideally rural urban linkages can be analyzed using more sophisticated approaches e.g input output models or value chain analysis for goods flow that determine the direct and indirect effects of such relationships• Here a case study approach will be used with the target population in the selected cluster• A sample will be drawn from the large cities secondary cities and rural areas to determine the nature of such linkages in Sindh• Fact finding instruments used in the study will include secondary data, questionnaires, and expert interviews
Sources of Secondary DataS. Data Source Latest Information Available ShortcomingNo Issue .1. Census of Manufacturing 2005 – 06 CMI measures production and structural Information related to Industries (CMI) changes of large-scale manufacturing industries Small and Medium (LSMI). It provides data on values of inputs and Enterprises (SMEs) not outputs, census value added, contribution to covered. GDP, fixed assets, stocks, employment and (Using micro level data employment cost and industrial taxes. district level industries and employment status will be extracted)2. Labor Force Statistics (LFS) 2010 - 11 LFS provides information on Literacy, Level of Aggregate Data is Education, Employment Status by industry and available. Disaggregated occupation, Employment Status of informal data is available for Sector, Age specific Labor force Participation provincial governments Rate, Employed Migrants with employment only. Micro data is Status, Reasons for Migration, Occupational available on request and Safety and Health, Wages, Hours worked in a on Payment but took week procedural delays. (Using micro level data district level employment status by industry and by type of activity will be extracted)
Sources of Secondary Data S. Data Source Latest Information Available ShortcomingNo. Issue3. Agriculture Statistics of 2008 – 09 Provides information on Area, Production, Yield Aggregate Data is Pakistan of Important Major and Minor Crops, Land use available. Disaggregated and Area Irrigated by sources, Agriculture data is available for Inputs, Agriculture Credit, Mechanization of provincial governments Agriculture, Live stock, Fisheries, Forestry, only Trade, Prices and support procurement prices (Using micro level data of Agricultural Commodities. district level information and employment status will be extracted)4. Pakistan Statistical Year Book 2011 Provides details on Agriculture, Balance of Aggregate Data is Payments, Climate, Development & Planning, available. Disaggregated Education, Energy and Mining, Foreign data is available for Economic Assistance, Foreign Trade, Health provincial governments Insurance & Capital Markets, Labor, only Manufacturing, Money and Credit, National Accounts, Population, Prices, Public Finance, Social and Culture and Transport & Communication5. Economic Survey 2010 - Provide information on Growth & Investment, Aggregate Data is 2011 Agriculture, Manufacturing, Fiscal available. Disaggregated Development, Money & Credit, Capital Markets, data is available for Inflation, Trade and Payments, External and provincial governments Domestic Debts, Education, Health, Population, only Labor Force & Employment, Poverty, Transport & Communication, Energy and Environment
Questionnaire Design Questionnaire will cover the following modules:• Module A: General This module will consist of general information and will include unit identification, size, sector, type and date of commencement of operation.• Module B: Endowment of Natural Resources The module will gather information on the existing sources of raw material and other inputs, proximity to raw material, cost of local raw material compared to import of raw material• Module C: Endowment of Human Resources The module will include questions on the availability of skilled labor, education and training facilities, industry knowledge development, and support for Research and Development.• Module D: Infrastructure This module collects information on quality of infrastructure services, transport, telecommunication, utilities, Public development Projects
Questionnaire Design• Module E: Dynamics of Local Economy The module will gather information on potential to add value to products and services, cost of doing business, responsiveness to change and innovations business awareness of potential, public private partnerships• Module F: Responsiveness and support of Government The module will gather information on responsiveness and support of government to business needs in expanding domestic and local markets, expanding export markets, enforcement of business regulations.• Module G: Quality of life The module will gather information on quality of life of the workforce, proximity to markets and other utility services presence of networks, public development projects• Module H: Competitive Advantage This module will collect information on the competitive advantage• Module I: Presence of Backward and Forward Linkages This module include questions on the backward and forward linkages
Expert Interviews Data will also be collected by conducting in depth interviews with expets such as:• Head of Industrial Association• SMEs Associations and Trade Bodies• Representative of Chamber of Commerce• Representative of SITE• Investors• EDO Education• EDO Revenue• EDO Finance & Planning• EDO Works and Services• EDO Community Development
Questions for Qualitative Interview• What are the comparative advantages of the region and why the industry is located here• Who are the suppliers of the industry and where are they located what are the advantages of proximity to them;• Who are the consumers of the products and where are they located and how they have changed over time;• Access to diverse pool of resources of skilled labour;• Alignment of skill base production base;• Ways in which the business interact with regional firms, partners, trade associations universities and what can be the points of collaboration between them;• What important regional issues are important to be addressed for the development of the sector and cluster• How the cluster is impacted by technology international economy;• How can the government facilitate the private sector