Agricultural Links to Nonagricultural Growth: Urbanization,Employment, Poverty (The Distinguishedl Lecture)

I am presenting some thoughts and numbers on what I think: isone of the most important policy issues in Pakistan, namely, mobilizingadditional resources by direct taxes/rom the agriculture sector. Sincethe issue, topical though it may be, is hotly contested, let me quicklyadd two points. First, I support all reasonable efforts at mobilizingresources from other major sectors or industries in the country. Second,I support equally the use of price and non-price incentives to producersto increase productivity, particularly in the agriculture sector. It isabsolutely essential to maintain a favourable macroeconomic environmentfor agricultural producers if we want additional resources forinvestment in physical and social infrastructure to help improve theliving standards of those whose incomes and jobs depend on agriculture.In making these points, I am saying· that I am opposed to policies thatpenalize agricultural productivity, including perverse policies onoutput and input prices, exchange rates, regulation and control ofinternal and international trade, farm credit, and investment inphysical infrastructure, research and extension services.