Enabling Rural Environment for Enhancing the Quality of Life (Non-Farm Perspective)

2. Enabling Rural Environment for Enhancing the Quality of Life (Non-Farm Perspective) William Christensen July 7, 2019

3. Presentation Overview: • Definition of non-farm activities • Why it is important - Concepts of Quality of Living - Current status of rural poor in CIRDAP countries and how it could be improved - Number of Deprived People in the Asia-Pacific Region • Present challenges for quality life of rural poor from non-farm perspective • Recommendations for CIRDAP countries • Present situation of the world in terms of SDGs • Concluding remarks by speaker

4. What is non-farming activities? All the non- agricultural activities are considered as non-farming activities; i.e. fishing, small business, selling good in the market, etc. Some are household level, some are establishment employing others like restaurants, constructions 100 day work cash for work or food for work. Examples of some non-farming activities: • Education • Fishing • Collecting fruits and vegetables • Producing of dairy Products • Handicrafts, small cottage industries • Rural industries • Small business, e.g. small shops, pottery business, fish sale, etc. • Training

5. Importance of non-farming activities in rural development: - Poorest own no or very minimum agricultural land - The alternative livelihoods in industry can service occupations without sufficient capital are low productivity and income earning - Many more lucrative non-farm activities require literacy, not available to the poorest - More productive and income earning activities are controlled by the wealthier - The social activities (education, health, housing water and sanitation) available to the poor are of the poorest quality. - The alternative livelihood options for the poor unless they can access sufficient capital and contacts, are low productivity and low income earning.

6. Current status of rural poor and how it could be improved: The GNI per capita (using the World Bank Atlas method) of the CMCs varies significantly across the countries with a low of below $1,000 in two member countries (Afghanistan and Nepal) in 2014.The per capita GNI in six countries (Bangladesh, India, Lao PDR, Myanmar, Pakistan, and Vietnam) is between $1,000 and $2,000 while it is between $3,000and $5,000 in four countries (Fiji, Indonesia, Philippines, and Sri Lanka). The per capita GNI exceeds $5,000 in Iran and Thailand while it exceeds $10,000 in the case of Malaysia

8. Social Progress Index Results The 2018 Social Progress Index ranks 146 countries that have sufficient available data to assess all 12 components Note: Norwary got the highest point 90.26 and Central Africa Republic got the lowest point 26.01

9. Quality of life (QOL): Quality of life includes one’s current level of health, family status, freedom of movement, exposure to inequality or discrimination, living circumstances, exposure to environmental pollutants, socio-economic status, available support systems such as education and health care, and feelings of self-worth and dignity. QOL is an overarching term for the quality of the various domains in life. It is a standard level that consists of the expectations of an individual or society for a good life. These expectations are guided by the values, goals and socio-cultural context in which an individual lives. It is a subjective, multidimensional concept that defines a standard level for emotional, physical, material and social well-being.

10. According to ecological economist Robert Costanza: "While Quality of Life (QOL) has long been an explicit or implicit policy goal, adequate definition and measurement have been elusive.” WHO defines “Quality of Life as an individual's perception of their position in life in the context of the culture and value systems in which they live and in relation to their goals, expectations, standards and concerns.”

11. Quantitative measurement of QOL: There are many ways to measure QOL; here are some important ones: 1. Human Development Index (the most common and acceptable) ii. World Happiness Report iii. Physical Quality of Life Index (PQLI) is a measure developed by sociologist Morris David Morris in the 1970s, based on basic literacy, infant mortality, and life expectancy. iv. The Happy Planet Index, introduced in 2006, in addition to standard determinants of well-being, it uses each country's ecological footprint as an indicator. v. Gallup researchers trying to find the world's happiest countries found Denmark to be at the top of the list vi. Gross national happiness and other subjective measures of happiness are being used by the governments of Bhutan and the United Kingdom vii. The Social Progress Index measures the extent to which countries provide for the social and environmental needs of their citizens

12. Human Development Index of CIRDAP Member Countries in 2018 Note: Out of 189 countries Norway got the highest ranking with 0.953 and Niger got the lowest with 0.354.

13. Backlog in MDGs: Number of Deprived People in the Asia-Pacific Region Source: UNESCAP/UNDP/ADB, Making It Happen: Technology, Finance and Statistics for Sustainable Development in Asia and the Pacific-Asia-Pacific Regional MDGs Report 2014/15.

14. Present challenges for quality life of rural poor in CIRDAP countries from non-farm perspective Poverty in CIRDAP countries is still widespread and the poor people are mostly concentrated in locations which are away from roads, markets, schools, health facilities and other social institutions. The economic, social, political and other forms of exclusion are pervasive for women and girls at both national community levels and within households. Unexpected events like natural and manmade disasters, global economic crises, and health shocks have pervasive effects on the lives of the poor with little avenues to move upwards.

15. - Economic growth in these countries are not creating adequate and remunerative employment opportunities primarily due to the nature of growth under which most workers move from low productive agriculture to the vulnerable informal sector employment including working on their own in self-employment and/or as unpaid family workers. - The poor are often forced to engage in low productivity activities due to their poor health, education and skills because these are less risky relative to high productivity alternatives.

16. - The challenge for these countries is to tap new and sustainable sources of growth which are the new green industries that emphasize environmentally sustainable economic growth to foster socially inclusive development. - Many of the challenges of the CMCs arise from high and rising levels of inequality in assets, opportunities, social networks, and participation. - Challenge is to adopt a mix of policies that addresses both growth and distributional concerns, strengthens empowerment, and deals with gender, ethnicity and other biases for the SDGs agenda.

17. - A wide variety of policy initiatives are needed for scaling up the delivery of formal and quasi-formal financial services, especially to the poor households. This will help improve the access of the poor families to financial services and prevent serious problems, such as falling into debt traps or losing one’s productive assets. E.g. Nazirpur village in Bangladesh. …the growth experience in CMCs suggests that economic growth in these countries has not been much inclusive resulting in loss of income share by the bottom 30 per cent of the population. On the other hand, the remaining 70 per cent of the population have increased their shares although the richest 30 per cent have gained the most.

18. Challenges of rural development and poverty alleviation: Rural poverty continues to be significantly higher and more extreme than urban. While the decline of extreme poverty in rural areas has been impressive - from 37.9 percent in 2000 to 21.1 percent in 2010 - the poverty level remains almost three times than that of urban areas. Extreme poverty continues to be a rural phenomenon and the poorest in the poorest regions are also less able to cope with shocks such as natural disasters.  Rural poverty and food security thus remain critical development challenges with the need for growth to be inclusive and pro-poor. (World Bank, 2014).

19. Present situation of the world in terms of SDGs

20. Challenges of some non-farm activities in rural areas of CIRDAP Member Countries: Cottage industry: - Lack of capital - Marketing - Cheap plastic goods replacing handmade items Transport sector driving rickshaw, bus, van, loading trucks: - Cost of bicycle rickshaws, vans, electricity driven vehicles, CNGs - No available fund for driving training and having a valid license • Costs for regular maintenance Buying produced food and selling it at higher rate to market areas: - Original capital for purchasing food items - Cost of transporting them to market areas - Excess goods at certain times leading to lower prices

21. Entertainment (band group for wedding, etc.) - Cost of band equipment and place to keep it - Publicizing availability and contracting services - Availability of all band members when needed Sewing/embroidery for women: - Training for quality production - Cost of equipment and raw materials - Marketing

22. Making sweets at home and selling them locally: - Initial cost of food components, cooking materials and containers - Person available to travel round villages to sell the prepared items • Perhaps linking with some local shops for marketing the sweets Running small hotels or grocery shops: - Original capital to get started - Training/experience to save income to replace goods sold so capital remains stable - Understanding of items desired by nearby families - Keeping shop/hotel regular times so customers know when they can avail

23. Education: - Minimum literacy ability for future employment - Poor quality of many local schools and unavailable educated family members to help - Need for children to assist with small livelihood tasks at home • Giving children to wealthier family to care for animals and earn food and some income Health: - Inability to access qualified medical help when ill - Poor women giving birth at home with no qualified medical attendant - Lack of awareness of family members for proper care/nutrition of pregnant women - Wrong treatment by some local unqualified practitioners, leading to greater medical problems. - Inability to purchase badly needed medicines - Indebtedness from medical treatment, operations, leading to loss of assets

24. Housing, Water, Sanitation: - No own land for firmly establishing housing - Inadequate housing and lack of funding to maintain it properly - Lack of sanitary latrine - No training in proper hygiene practices - Contaminated drinking water from wells near toilets, cowdung pits and graveyards - Natural disasters which affect the poorest the most - Indebtedness due to emergency food needs, health, etc. at high interest. Gender: - Lack of sexual training and awareness for adolescents, especially girls - No proper sanitary arrangements for girls who begin having monthly periods - Early marriages of young people especially girls with no training for parenthood - Lack of voice for women in homes and society - Unequal ownership of women in land and economic assets - Poor understanding by men and boys of the difficulties faced by women and girls

25. Recommendations: The CMCs need to take all possible measures for (i) mobilizing domestic resources including tax and non-tax revenues; (ii) creating strong, diversified and stable financial sector; (iii) developing domestic institutional investors; and (iv) providing incentives to the private sector to increasingly participate in development activities. The CMCs also need to work together to attract more external resources, access knowledge base and build development capacities.

26. v. Governmental action for corruption in misuse of safety-net funds and return of criminal seizure of government lands for distribution to the poor. vi. Climate change interventions to prevent increased hardship of victims. vii. National budgets should focus more fully on reaching the SDGs and so help smallholder farmers and rural needy people.

27. viii. Political and social enforcement to protect women and girls from sexual harassment and rape. ix. Ensure that poor pregnant women can deliver healthy babies and keep them healthy. x. Reduction of early marriages, especially adolescent girls xi. Control food adulteration through toxic chemicals. xii. Preservation for the long-term of safe drinking water.

28. Concluding comments: - Reports from FAO and other organizations indicate that the number of extreme poor in the world is increasing rather than decreasing. - While overall economic growth increases, inequality grows at the same pace, leaving the poorest further behind. - Unless new strategies directly targeting the extreme poor are formulated and implemented, the UN might need to start planning for a new set of sustainable development goals for 2050.

29. THANK YOU