Pakistan Ahead of India and China on Happiness Index

You wouldn't know from the headlines what Gallup global poll on wellbeing found through its recent survey: More Pakistanis say they are thriving than do Indians or Chinese.

The results of the 2010 global wellbeing survey of 124 nations conducted by Gallup reveal that Pakistan ranks 40th with 32% of Pakistanis saying they are thriving. By contrast, India ranks 71st with 21% of the Indians thriving and China ranks 92nd with only 12% of the Chinese considering themselves “thriving,” the highest level of wellbeing.

Pakistanis are a resilient people. But the only tangible explanation for Pakistanis ranking ahead of their neighbors in the wellbeing Gallup survey can be found in the strength of Pakistan's rural economy. It is being spurred by the higher food and commodity prices resulting in the transfer of additional new tax-free farm income of about Rs. 300 billion in the current fiscal year alone to Pakistan's ruling party's power base of landowners in small towns and villages in Southern Punjab and Rural Sindh, from those working in the the economically stagnant urban industrial and service sectors who pay bulk of the taxes. The downside of it is a bigger hole in Pakistan's pubic finances which is being funded with increased foreign aid and loans.



Moazzam Husain, the Director General of the Punjab Board of Investment and Trade, describes the current rural resurgence as follows in a recent blog post titled "The Other Pakistan":

"GLORIOUS countryside lies between Rahim Yar Khan and Bahawalpur. Travelling across six districts in Punjab, before a blazing summer sets in, I experienced endless fields of wheat waiting to turn golden, of freshly harvested mustard, acres of ripe sugarcane and sprawling mango orchards.

Far from the drudge and gloom of metropolitan Pakistan, economic privation, traffic snarls, extreme religion and the cricket World Cup agony, this is another Pakistan. Over a quarter of a century after the green revolution ended the rural economy is back in boom, this time on the back of rising prices. The feel-good factor is all around.

Burgeoning commodity prices are churning unprecedented amounts of cash through the farm sector. I pass tractor-pulled trolleys laden with sugarcane waiting outside sugar mills. The crushing season is in full swing. Meanwhile, the flour mills are still grinding away at last year’s surplus crop. This is an agro economy at serious work.

Alongside the cash economy, the place is also brimming with ideas, and with an entrepreneurial spirit. A young man I meet at Rahim Yar Khan’s chamber of commerce has an IT degree and owns an ice cream distribution business spawning an elaborate cold chain across three districts. He tells me that sales are surging because rural society is transitioning to modern desserts which are now more affordable than traditional sweets like mithai and khoya.

Meanwhile, he’s toying with the bigger vision of an electronic marketplace for agricultural produce. Live connectivity to grain mandis and markets for fresh produce and milk will empower farmers to obtain prices online and through their cellphones. He wants to materialise this and wants tips. I give him my two cents worth: study similar models, write a concept paper, galvanise partners around it, put in seed money and get the venture to mezzanine level."


In 2008, the government pushed the procurement price of wheat up from Rs. 625 per 40 kg to Rs. 950 per 40 kg. This action immediately triggered inflationary pressures that have continued to persist as food accounts for just over 40% of Pakistan's consumer price index. According to State Bank of Pakistan (SBP) analysis, cumulative price of wheat surged by 120 per cent since 2008, far higher than the 40 per cent between 2003 and 2007. it is also many times greater than the international market price increase of 22 per cent for wheat in the same period. Similarly, sugar prices have surged 184 per cent higher since 2008, compared with 46 per cent increase during 2003-07.

Bumper crops and exports at higher prices are also contributing to the rural prosperity in Pakistan. For example, the Wall Street Journal reported increased Pakistan's wheat exports in a recent story as follows:

"Asia's immediate wheat demand is being met by ample supply from Pakistan, which is exporting existing inventories to make way for the new harvest, trading executives said Monday.

"Pakistan has filled a crucial gap in Asian wheat trade due to the absence of supply from the Black Sea region," said a Singapore-based executive with a global trading company.

If Pakistan hadn't permitted wheat exports during this period of tight overall global supply, price conscious buyers in South Asia and Southeast Asia would have had to turn to costly alternative supply from Canada, the U.S. and Europe.

The absence of Pakistan would have also increased demand pressure in Australia, where ports are already facing congestion and there are logistical delays in moving wheat from upcountry warehouses.

Pakistan approved wheat exports in December and shipments began the following month.

In less than four months it has shipped out an estimated 1.16 million metric tons of wheat.

The International Grains Council has projected Pakistan's wheat exports in the year ending June 30 at 1.6 million tons, the highest in at least four years."


The steps such as the increased exports, the transfer of additional Rs. 300 billion to Pakistan's agriculture sector during the current fiscal year 2010-2011 by higher prices of agriculture produce, and direct flood compensation to 1.6 million affected families at the rate of one hundred thousands rupees each are boosting economic confidence in the countryside. This infusion of money is also generating rural demand for consumer items including consumer durables such as fans, TVs, motorcycles, cars, refrigerators, etc.

The big feudal landowners have been the biggest beneficiaries of the PPP's gift of high crop prices. However, the policy has helped small farmers as well, as shown by a recent survey reported by The Nation newspaper. The survey of 300 farmers in Sind's Sukkur district was conducted by Sukkur Institute of Business Administration for the State Bank of Pakistan (SBP). It has highlighted the following about district's rural economy:

1. In Sukkur district, majority of the farmers are subsistence farmers. 31 percent of them own less than 5 acres of land, and another 34 percent own up to 12.5 acres of land.

2. They spend an average of Rs. 1,611 a month on their children's education, with some of them spending up to Rs. 12,000 a month.

3. Wheat, rice, cotton and sugarcane are the major crops being cultivated by 93 per cent, 58 percent, 37 percent and 12 percent of the respondent farmers in that order.

4. 24 percent of them are also growing fruits including dates, mangoes and bananas.

5. 22 percent of the respondent own livestock.

6. About half (49 percent) use privately purchased seeds for wheat cultivation, 33 perecent use their own retained seed and 18 perecent use the seed purchased from Public Sector Seed Corporations.

7. On average, a farmer uses 96.73 Kg chemical fertilizer per acre with the maximum and minimum of 350 Kg and 40 Kg respectively. The average per acre cost of wheat production is Rs. 10,670.

8. All 300 farmers are using tractors for cultivation and preparing land for crops, and some are using tractors for fetching their crop produce to market.

It appears from the economic data and anecdotal evidence that bulk of the 32% of the Pakistani poll respondents who say they are thriving have income from the rural sectors of Pakistan's economy.

As expected, the people in the developed world report higher state of wellbeing than those in the developing nations. With Danes ranked the most satisfied people with 72 percent of respondents considering themselves “thriving,” people in Sweden and Canada follow close behind, each at 69 percent in Gallup’s 2010 Global Wellbeing Survey. The US came in somewhat near the bottom among developed western nations, with 59 percent of Americans thriving.

A median of just 21 percent were found to be “thriving” in the Gallup survey polling 1,000 adults, age 15 and older, in both face-to-face and telephone interviews in each country throughout 2010.

African nations show up near the bottom of the list, with only 12 percent of the respondents considering themselves to be thriving in Egypt, followed by 6 percent in Kenya and Chad with 1 percent ranking it dead last at 124.

Related Links:

Haq's Musings

Pakistan's Rural Economy

Resilient Pakistan Defies Doomsayers

Agriculture, Textiles Employ Most Indians and Pakistanis

New Index Finds Indians Poorer Than Africans, Pakistanis

Pakistan's Exports and Remittances Rise to New Highs

Sugar Crisis in Pakistan

Agricultural Growth in India, Pakistan and Bangladesh

Pakistan's Rural Economic Survey

Pakistan's KSE Outperforms BRIC Exchanges in 2010

High Cost of Failure to Aid Flood Victims

Karachi Tops Mumbai in Stock Performance

India and Pakistan Contrasted in 2010

Pakistan's Decade 1999-2009

Darkness Before Dawn? Future of Pakistan

Musharraf's Economic Legacy

World Bank Report on Rural Poverty in Pakistan

Copper, Gold Deposits Worth $500 Billion at Reko Diq, Pakistan

China's Trade and Investment in South Asia

India's Twin Deficits

Pakistan's Economy 2008-2010

Comments

Riaz Haq said…
Here's an OXFAM report about land for landless peasant women in Pakistan:

Oxfam Media Officer, Caroline Gluck, is currently travelling in Sindh district in Pakistan. She sends us this blog from there:

Mother of five, Sodhi Solangi, can’t stop smiling as she shows me her new eight acre plot of land. Cotton crops are growing and, a little further away, building work is almost finished on a large new house overlooking the fields where her family will soon settle.

Just a few years ago, 42 year old Sodhi, who lives in Ramzan Village, Umerkot district, in Sindh, Pakistan, was landless. She and her husband used to work on others’ lands, earning a share of the crops as payment. Daily life was a struggle.

“We often had problems”, Sodhi recalled. “Sometimes we had money, sometimes not. It was very hard for us. We’d spend all our days working on someone else’s farm and our children would be at home.

“We wore torn clothes. But now things are very different. When you like something, you can go out and buy it. Before, we would have to ask the landlord to give us money if we wanted anything, but now we have money in our hands and we can buy things whenever we want.”

“Now we have our own land and are working on our own land. It feels so good when we work there. When we used to work for others, we would have to drag ourselves there.”

Her family’s luck changed when Sodhi was awarded eight acres of land, under a programme run by Sindh’s provincial government, which in 2008 began redistributing swathes of state-held land to landless women peasants. The landmark scheme was an attempt to lift more people out of poverty in the province, where more than two-thirds of the population work the land, but where bonded labour is still widely practiced and most land is still held by wealthy and political influential elites.

Sohdi and her family grew wheat and cotton on their new land. And they managed to earn enough profit to buy another eight acres.

“We were so happy when we go our land. Now, things are so different”, said Sodhi. “Whenever we want to eat anything, we can just buy it. Before, we used to eat dal and potatoes. Now we can buy all sorts of things – mangos, even chicken.”

“Everyday, we have a lot of food. It’s like a festival of food for us every time!” she said, laughing.

Meat is an unaffordable luxury for most poor farming families – and one telling sign of just how much Sodhi’s life has turned around.

Her neighbours and relatives jokingly call her “lady landowner” and many told me they planned to apply for land during the next phase of the redistribution scheme.

But Sodhi is one of the lucky ones. Her land, though parched and lacking proper irrigation, is still cultivable; and, unlike many women, Sodhi didn’t face legal claims disputing her right to the land from wealthy landowners or others living nearby.
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“The landlord sent officials to threaten the women here saying : ‘We will destroy your homes and take your tractors. ‘ He also threatened to send the police to our home”, said Shareefa Gulfazar, who is in her fifties, and was awarded 4.5 acres of land.

Her daughter, Dadli Kehar, who was awarded 3 acres of land, fears they are being tricked out of what is rightfully theirs. With the help of Oxfam’s partner Participatory Development Initiatives (PDI), both women plan to fight through the courts for what they believe is their right to the land.
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Despite the threats and the likelihood of a lengthy legal battle, Shareefa and Dadli intend to fight for their land. They know that having their own land can empower them as well as help to feed their families and ensure they have a better future.


http://www.oxfamblogs.org/southasia/?p=1088
Riaz Haq said…
Here's an excerpt of ET story on Pakistan's commercial dairy business:

Economies of scale were the key to JK Dairies’ strategy, and not just in the number of animals. The company imported some of the finest milk breeds from Australia in order to improve output per animal. And it was smart in terms of the kind of cows it imported too.

Many dairy farmers have made the mistake of simply looking up which cows yield the most amount of milk per lactation and import them into their farms in Pakistan, not realising that most of those breeds are not suited to the Pakistani climate.

JK Dairies imported the Australian Friesian-Sahiwal, a breed that was created by the Australian state of Queensland in the 1960s by crossing the Sahiwal cow (named after the city in Punjab where it is from) and the Friesian breed to produce a new cross-breed that combines the sturdiness of the Sahiwal with the lactation prowess of the Friesian.

The average Sahiwal cow (still common in many parts of the Punjab), produces about 2,270 litres of milk per lactation. The Friesian Sahiwal breed produces over 3,000 litres per lactation, about 32% higher. Since then, the company has been cross-breeding the Friesian and Jersey breeds of cows that are also part of its stock with local breeds to produce better milk-giving animals that are suited to the local environment.

“We can compete with the world only by experimenting with the latest available technologies, and that’s what we are doing,” Tareen said.

JK Dairies employs a lot of foreign staff, particularly from East Asia, since Tareen feels that local universities do not have enough graduates who are familiar with global best practices in agriculture and livestock. In addition, the company does not use fodder, a common local practise and instead uses multi-cut seeds, which not only can be produced year-round but also help the cows enhance their milk production.

The company then markets its milk through various techniques, including retail outlets in Lahore as well as a home delivery service. But the bulk of JK Dairies’ sales go to Nestle Pakistan, the largest food company in the country and the owner of Milkpak, the leading brand of packaged milk.
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...Tareen appears highly bullish on the livestock sector, which constitutes about 11% of Pakistan’s GDP and employs about 17% of the workforce, including most of the poorest people in the country. “The livestock sector of Pakistan can singlehandedly became a game changer for our economy.”

Others agree. “If Pakistan were to improve its overall milk yields by just 15%, it would displace New Zealand as the largest exporter of milk in the world,” said Ian Donald, the outgoing CEO of Nestle Pakistan.


tribune.com.pk/story/384253/milk-production-in-pakistans-milk-production-jk-dairies-is-a-front-runner/
Riaz Haq said…
Here's a BR report on PM Raja talking about PPP's pro-farmer policies:

Prime Minister Raja Pervez Ashraf Tuesday said prudent and farmers-friendly policies of the PPP led government has helped injection of Rs500 billion in the rural economy ultimately benefiting the farming community in the country.

"Due to our pro-farming policies and due payments of agriculture produce of the farmers specially in wheat production, Pakistan once an wheat importing country has now become an exporting country and we are self sufficient in wheat production", the Prime Minister said while addressing APP regularization certificate distribution ceremony to distribute letters among the contract and daily wages employees of Associated Press of Pakistan (APP), here at the Prime Minister Secretariat today.


http://www.brecorder.com/top-news/1-front-top-news/66940-pro-farmers-policies-of-government-helped-inject-rs500-billion-in-rural-economy-pm-.html
Riaz Haq said…
Here's an ET report on HWT technology to increase shelf life and exports of fruits and veggies in Pakistan:

The establishment of Karachi’s hot water treatment (HWT) plant – a facility for post-harvest treatment and processing of fruits and vegetables – is a very good example of how the country’s agriculture sector can benefit by investing in technological advancements. It is because of this technology that Pakistan has been able to venture into some of the world’s largest markets for its mango over the past couple of months.

In order to expand mango exports, Durrani Associates, one of Pakistan’s largest mango exporters, in partnership with the government, set up the Rs220 million HWT plant, which is officially known as Pakistan Horti Fresh Processing (Pvt) Limited. This investment, according to Durrani Associates’ Director Babar Khan Durrani, can be recovered within five years.

Durrani told The Express Tribune that they were already exporting mangoes to Tesco in the United Kingdom and Carrefour in the rest of Europe – two of the world’s largest retail chains – but HWT facility has opened new markets for the exporters. The exporters can use the facility and ship their products via sea now, which will enable them to sell at competitive prices.

HWT increases shelf life of mangoes to 35 days, thus they can now be shipped by sea to remote destinations, a major development, which reduces freight charges to a great extent.

Take the example of China, Durrani said, where air freight alone costs more than $1.25 per kg of mangoes. The processed mangoes can be shipped by sea, he said, bringing the cost down to $0.20 per kg. As a result, the Pakistani exporter was able to impress Walmart China, which, in a week’s time, will strike a contract for supply of another 100 tons of mangoes.
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Talking about how this technology has helped expand mango exports, Durrani said fruits and vegetables processed by HWT facility meet requirements of the United States Department of Agriculture (USDA), World Health Organisation (WHO) and International Quarantine Standards, thus making them globally acceptable.

In the past, Pakistan’s mangoes were denied access to several key markets including the US and China because of nine diseases. HWT kills anthicolas, a major disease that results in black spots on mango skin.

“The skin of our mango is rough but its taste is very good,” company’s Chairman Abdul Qadir Khan Durrani said. “HWT improves the skin while killing all diseases after treating at 50 degrees for an hour,” he added.

He claimed Pakistan has world’s largest HWT plant having capacity to treat 15 tons of mangoes per hour. The second largest plant is in Mexico that treats 4.5 tons of mangoes per hour, he said.

Besides the $2,200 per ton market of Europe, the $1,600 per ton market of China could prove to be the largest importer of Pakistan’s mangoes, Durrani said.
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By contrast, the mango exports are 8% of the production or less than 50% of the export potential, a strong indication that there is still a huge space for more investment on the technology front. “We need more than 10 such plants for meeting mango demand of North American markets,” Director Durrani said.

“Our agriculture sector lacks technology. People shy away from using technology.” It will take a while before all farmers adopt new technologies, he said.
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“About 30% to 40% of our fruits and vegetables are wasted because they are not processed,” Durrani said. “Given the HWT plant can process almost every fruit and vegetable that we produce, we can save our produce from being wasted,” he added.


http://tribune.com.pk/story/424992/fountain-of-youth-technological-progress-boosts-demand-for-mangoes/
Riaz Haq said…
Here's an interesting Op Ed by Mazur Ejaz in Friday Times:

The condition of an economy is often confused with the financial health of its government. Pakistan's economy is perceived to be in a deep hole because of its near-bankrupt fiscal conditions. Similarly, America's inability to settle on a national budget is taken to be an indicator of the collapse of the US Empire.

In some ways, the condition of the economy and the financial health of the government are separate matters. Major stock market indexes at Karachi Stock Exchange and the Wall Street are at their highest level, but both governments are facing serious financial problems. Most of the countries around the world are facing similar dichotomous situations. So how does one solve the riddle of the corporate sector making record profits while governments around the world are in serious financial jeopardy?

The phenomenon needs to be analyzed at grass-roots level. A shopkeeper from my village comes to mind. He told me that he sells PTCL internet cards grossing about Rs 9,000 every day. There are several other such shops in the village. That means that just in one village, the total sale of PTCL internet cards is up to 50,000 rupees. This consumer item was not present five years ago, which means hundreds of computers have been bought in the village recently. Furthermore, if such luxury products are making such huge profits for village shops, traders throughout the country must be making much larger profits selling essentials every day. One of the indicators of booming business in our village is that the United Bank branch in the village is doing very well, according to its manager.

There are thousands of such villages in the country, and that gives one an idea of the mammoth growth of rural markets. Such an undocumented economy is not even factored in estimating the economic growth of the country. From these supposedly marginal markets, one can extrapolate the profits of the corporate sector in towns and cities.

It may be astounding for some that Pakistan's banking sector is considered fourth in profitability in the entire world. Producers of other major industrial and agricultural products are also making huge profits. Cement, fertilizer, automobile, construction and telecommunication industries are doing extremely well. Other than the textile industry, which has been hit by power shortages, there is hardly any manufacturer or importer/exporter of any kind of goods who is not making money. The stock markets look at the profits of these industries and price them accordingly. Therefore the claims of Pakistan's economic growth are not a fairy tale. The evidence is out there in the market.

The government is also like a large corporation whose income depends mainly on tax revenue. Most of the goods and services (such as roads, defense, education and health) provided by the government are public goods which are not priced directly. The government has to price its public goods through direct taxes on income and sales, or indirectly. Following a certain brand of capitalism, countries like Pakistan and the US are not collecting enough taxes to cover the cost of public goods. They have failed mainly in collecting direct taxes on income. While Pakistan cannot implement an appropriate tax collection mechanism because of corruption, the US has leaned towards favoring high income groups and ended up in a jam. The net result is the same: the rich are getting richer, appropriating most of the new wealth generated....


http://www.thefridaytimes.com/beta3/tft/article.php?issue=20130322&page=9
Riaz Haq said…
There are six love styles: Be, Do, Encourage, Give, Talk and Touch

http://www.tfifamilyservices.org/wp-content/uploads/2011/11/January-2013-training-insert.pdf

The five main ways people can give/receive affection are:
Quality Time – where you give each other 'undivided attention’ to talk, listen, eat together or enjoy a shared activity. With a young family you may have to grab small amounts of time together while you can, or you may prefer to schedule uninterrupted time when the kids are asleep.
Words of Affirmation – these are kind, affectionate, appreciative statements that recognize what your loved one means to you. Phrases that respect and encourage each other are also important. As is actively listening to what your partner has to say. You could do this verbally, and/or via email, text, letter, Facebook, or through sharing music, poems or phrases that reflect your feelings. Meg Barker expands on this in her blog post about different ways we can communicate.
Acts of Service – this sounds very formal but simply means doing kind things for each other. Like taking on tasks a partner may not want to do or sharing household chores. It also involves showing you care - for example through preparing meals, paying the bills, and doing the laundry. This category is often the easiest one to miss as it is already part of our daily routine. Highlighting it is as a means of showing affection – and having that recognized and appreciated by a partner can make a big difference to you both feeling cared for.
Gifts – this might be an expensive present or something you have made. The idea here is to show someone you were thinking of them, you recognise what they do for you and you’ve paid attention to their likes and chosen something appropriate for them.
Physical Touch – could be shown in the form of hugs and cuddles; sitting close on the sofa or lying together in bed. Other touch people enjoy includes hair brushing, holding hands, massage (a hand, foot or head massage can work if you’re time-poor). This may or may not be sexual. You might find that time for pleasure has disappeared and finding opportunities to kiss, touch and reconnect physically may lead to you feeling more like sexual intimacy, or just enjoy nurturing touch without it leading to sex.
It may feel strange to sit back and deliberately choose how you want to have affection shared with you and to ask this of your partner. Talking about this might reveal things you didn’t know about each other and highlight opportunities to create consistent positive connections you’ll both enjoy.

http://www.telegraph.co.uk/women/sex/9989306/The-five-types-of-affection-which-one-do-you-prefer.html
Riaz Haq said…
World Happiness 2017 ranks Pakistan well ahead of the rest of SAARC nations. Nepal's at 99, Bhutan at 97, Bangladesh at 110, Sri Lanka at 120, India at 122 and Afghanistan at 141 among 155 nations surveyed.


http://www.hindustantimes.com/india-news/norway-named-happiest-country-in-the-world-india-among-the-saddest/story-zxfv1HSduc5skZRV8saH1H.html


Norway moved from No. 4 to the top spot in the report’s rankings, which combine economic, health and polling data compiled by economists that are averaged over three years from 2014 to 2016. Norway edged past previous champ Denmark, which fell to second. Iceland, Switzerland and Finland round out the top 5.

Studying happiness may seem frivolous, but serious academics have long been calling for more testing about people’s emotional well-being, especially in the United States. In 2013, the National Academy of Sciences issued a report recommending that federal statistics and surveys, which normally deal with income, spending, health and housing, include a few extra questions on happiness because it would lead to better policy that affects people’s lives.

The entire top ten were wealthier developed nations. Yet money is not the only ingredient in the recipe for happiness, the report said.

In fact, among the wealthier countries the differences in happiness levels had a lot to do with “differences in mental health, physical health and personal relationships: the biggest single source of misery is mental illness,” the report said.

“Income differences matter more in poorer countries, but even their mental illness is a major source of misery,” it added.

Another major country, China, has made major economic strides in recent years. But its people are not happier than 25 years ago, it found.

The United States meanwhile slipped to the number 14 spot due to less social support and greater corruption; those very factors play into why Nordic countries fare better on this scale of smiles.

“What works in the Nordic countries is a sense of community and understanding in the common good,” said Meik Wiking, chief executive officer of the Happiness Research Institute in Copenhagen, who wasn’t part of the global scientific study that came out with the rankings.

The rankings are based on gross domestic product per person, healthy life expectancy with four factors from global surveys. In those surveys, people give scores from 1 to 10 on how much social support they feel they have if something goes wrong, their freedom to make their own life choices, their sense of how corrupt their society is and how generous they are.


http://worldhappiness.report/


https://s3.amazonaws.com/sdsn-whr2017/HR17_3-20-17.pdf

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