Group Members

Noman Karim

Hassan Sabah

Sajjad Ali

HUMAN CAPITAL Impact on Livelihoods of Hunza

In this Paper we will focus upon the significance of human capital upon the livelihoods of Hunza.

2013

12-May-13

2

Contents

ABSTRACT ______________________________________________ 4 BACKGROUND ___________________________________________ 5

INTRODUCTION __________________________________________ 8 PROBLEM STATEMENT _____________ Error! Bookmark not defined.

LITERATURE REVIEW _____________________________________ 9 ANALYTICAL FRAMEWORK __________ Error! Bookmark not defined.

SLF: Scoones __________________________________________ 32 CONTEXTS, CONDITIONS AND TRENDSError! Bookmark not

defined. Context _________________________________________ 33

History __________________________________________ 34 Politics __________________________________________ 34

Trends __________________________________________ 35

Seasonality ______________________________________ 36 LIVELIHOOD ASSETS/RESOURCES _____________________ 39

Approaching livelihoods with a threefold focus 40 Human Capital _____________________________________

Natural Capital __________________________________ 40

Physical capital ___________________________________ 40 Financial Capital ___________________________________ 40

Social Capital _____________________________________ 40

Political Capital____________________________________ 41

LIVELIHOOD STRATEGIES ____________________________ 49

Agriculture Intensification and Extensification _______________ 49 Livelihood diversification ______________________________ 50

Migration _________________________________________ 51 CONCLUSION __________________________________________ 53

REFERENCES __________________________________________ 55

3

H UM AN C AP I T AL : I M P AC T O F HUM AN C AP I T AL O N L I V E L I HO O D S O F HUNZA -

People of Hunza Valley have faced enormous problems in pursuing their

livelihoods. From a macro-Livelihood point of view Human capital is one of

the major factors in asset building and helps to diversify the Livelihoods. In

many Developing countries, human capital improved Livelihood and it

contributed to overall development of people at large.

However, to grasp the multidimensional constituencies and impact of

Human capital on Livelihood outcomes, a deeper and more integrated

vision is required.

A community-based ontology is rooted in the broad tradition of alternative

development and can be fruitfully integrate the Human capital of Hunza

region. This study focuses on some important initiatives taken to build

human capital adopted by the people of the area which resulted in

development of the area.

In Hunza valley, Human capital is one of the significant and important

elements of Livelihood diversification. Hunza is highly diverse in terms of

physical, socioeconomic and political environments. It is a Mountainous

area and environment is highly fragile and their inhabitants are exposed to

both environmental and non-environmental stressors, which are interlinked

and have serious implications for mountain livelihoods. The combination of

multiple agricultural and non-agricultural income sources is a characteristic

of mountain people’s livelihood systems. Migration is not a recent

phenomenon, but has been a traditional source of non-farm income to

varying degrees. This review finds that migration behaviour is influenced by

ABSTRACT

4

a combination of environmental (floods, flash floods, landslides, droughts

and land degradation) and non-environmental (economic, demographic,

social and political) drivers. As the decision to migrate or not is ultimately

an individual one, it is methodologically challenging to single out any single

driver as significant – a fact well reflected in the available literature. The

inter-relationship between the dynamics of the factors triggering migration

and migration dynamics has been rarely explored. In particular, studies

concentrating on migration in the mountainous regions of the developing

world are few.

Hence, the main aim of this paper is to investigate the problems faced by

people of Hunza in building human capital and diversifying livelihoods.

Moreover, this paper discuses the set of assets, organizations and

institutions available to the village, so that they can achieve certain

livelihood strategies...

Hunza is a mountainous valley in the Gilgit–Baltistan region of Pakistan.

The Hunza is situated north/west of the Hunza River, at an elevation of around 2,500 metres. The territory of Hunza is about 7,900 square

kilometer. Hunza is a fairy tale land and a lot of myth and reality has been associated to it. In ancient times the people of the Hunza were subsistence

farmers. Cattle breeding and farming were popular professions in Hunza. Sheep, goats, yak and horses are domestic animals. The people of Hunza

use sheep wool and goat hair to spin a rough cloth.

Background

5

In the high-mountain periphery of Hunza, formal education has increasingly gained importance for the people’s livelihood systems and is seen as an

indispensable key for regional development. The local livelihood systems in both these mountain areas underwent a fundamental reorientation, from

combined mountain agriculture and animal husbandry on a subsistence

basis, to increased market-orientation, cash-crop production, and growing importance of off-farm income and employment. Formal education, and

increasingly higher levels of education, is central keys for getting access to much-demanded posts in regular employment in the government, NGO,

and private sectors. In most parts of these two sparsely populated regions, the acquisition of higher education is only possible through migration in

order to enrol in educational institutions in central places of knowledge For centuries, the Hunza Valley in the Karakoram Range was one of the

most isolated territories of the world. Hunza valley was ruled by Kings (Thum) for centuries. The people of Hunza were dependent on agriculture

for their livelihood and whatever they cultivated a large portion of the yield was taken by the King or Ruler of Hunza as Tax (Maliya). There were no

other sources of livelihood other than agriculture.. Hunza state survived

until 1974, when it was finally dissolved by Zulfikar Ali Bhutto. Even the people were not allowed to build both Human capital and physical capital.

In 1978, however, Chinese and Pakistani workers completed construction of the Karakoram Highway, which cut directly through the Hunza Valley,

linking up the region to commercial trade routes between Pakistan and the

6

People`s Republic of China. Very few people used various livelihood

diversification strategies. E.g. armed forces, civil services and NGO sector etc. Only two to three generations ago, very low literacy rates and were

‘lagging behind’ compared to the developments in the rest of the country. In only a few decades the situation has completely changed, and both the

regions mentioned above today constitute shining examples of successful and rapid educational expansion and increasing shares of higher education

degree holders. This fundamental and rapid change was partly made possible by the improvement and expansion of the formal education system

in the mountain region, which increased the locally available education opportunities. But equally important, the rural high mountain households

have actively strived to get access to higher education by following strategies of educational mobility and migration. In a context of

fundamental livelihood changes, where subsistence-oriented combined

mountain agriculture systems no longer suffice to sustain a living and off -farm income generation along with formal employment gained high

importance, formal education has become a necessity for sustaining rural livelihoods. Higher education, an essential precondition for access to the

much demanded jobs in the government and private sectors, is in many remote valleys unavailable, since colleges and universities are located in

central places within the mountain regions or in lowland cities. High mountain households currently invest huge shares of their budget to enable

at least some of their children to study in the urban centers. Educational migration has become a central component of the rural households’

livelihood strategies. The KKH was one of the main pillars of the overall development in the

Hunza valley, as many public and private organizations started many micro

and macro rural development innovations. The Government initiated several projects in Hunza to establish a sound economic and social

infrastructure for improving social services, increasing the social contacts within the valley and boosting economic growth on a sustainable basis.

There is also a big contribution of many public private partnership projects in reducing the poverty and in the development of Hunza Valley. These

organizations provide grants to rural communities for undertaking initiatives for poor people. These initiatives consist of formal and informal training

course to enhance a set of multi disciplinary skills within village communities to use them in a variety of productive fields and activities.

These skills also played an important role in increasing the productivity of

7

existing available resources. Various internationally recognized community-

based development organizations that have been working in Hunza Valley in the field of integrated rural development to help improve the quality of life

of the local people. They are dealing with extreme poverty through linking small farm products with potential domestic and export markets are

interesting and identify lot of unexplored areas. Agriculture in the area has been of subsistence level till early eighties when various organizations

started interventions to increase the productivity and decrease the production losses and succeeded in creating marketable surpluses in few

years. Since then a number of fruits and vegetables have been developed as cash crops and the socio-economic surveys done by different NGO’s. It

has shown a growing dependence of poor rural families on agriculture incomes to pay for the education and health. The holistic and inclusive

development efforts by many public and private organization in Hunza

Valley contributes a lot to the social development, institutional development, institutional sustainability, capacity building and poverty

reduction Although up to know the exact role and meaning of higher education and

their importance for sustaining rural livelihoods are still unclear and have remained under-researched. Therefore, this study aims to explore the

importance and role of Education in the context of Human capital and various strategies of rural high mountain households in Hunza.

This paper reviews and extends the literature on human capital to pursue

multiple livelihoods, with particular emphasis on the social returns to education.” In other words, we study the problem of human capital

externalities—does an individual’s private decision to accumulate human capital confer external benefits or costs on others?

The objective of this research is to use data from evaluations of

interventions designed to increase human capital to understand the policies, interventions, and other factors that lead to sustainable poverty

reduction and nutritional improvements. Further, the research aims to find the factors that facilitated development of policies and interventions for

sustainable poverty reduction and nutrition improvement in Hunza.

Introduction

8

Hunza high mountainous region in the periphery have often been

considered ‘backward’ regions, lagging behind the progress of socio -economic development in the lowlands and urban centres. This is

especially the case with respect to the process of formal educational expansion, which first and predominantly is expected to spread in the

economic centres and cities in the lowlands and shuns comparatively poor, rural, sparsely populated and difficult to access high mountain peripheries.

Having these widely accepted assumptions in mind, one is surprised to find high shares of university graduates in some remote high mountain

communities, like in Hunza, Gilgit-Baltistan, Pakistan. Only two to three generations ago, these regions would have fit into the assumptions of

modernization theories, since at that time they showed very low literacy rates and were ‘lagging behind’ compared to the developments in the rest

of the country. In only a few decades the situation has completely changed,

and the Hunza mentioned above today constitute shining example of successful and rapid educational expansion and increasing shares of

higher education degree holders which is boosting livelihoods of local people.

But equally important, the rural high mountain households have actively strived to get access to higher education by following strategies of

educational mobility and migration. In a context of fundamental livelihood changes, where subsistence-oriented combined mountain agriculture

systems no longer suffice to sustain a living and off-farm income generation along with formal employment gained high importance, formal education

has become a necessity for sustaining rural livelihoods specially in this region. Higher education, an essential precondition for access to the much

demanded jobs in the government and private sectors, is in many remote

valleys unavailable, since colleges and universities are located in central places within the mountain regions or in lowland cities.

Do people of Hunza have access to their basic needs? What livelihood

strategies they followed and what are the factors that helped to build to Human Capital which helps to pursue livelihood. Do people achieve

sustainable livelihood through Human Capital? What were the hurdles in building Human Capital?

Problem Statement

9

The concept of human capital has been familiar in economics for at least the past thirty years (e.g. Schultz, 1961; Becker, 1964); some trace it back

to the work of Adam Smith in the 18th century. Human capital can be defined in many ways, but this report adopts the

following meaning: “The knowledge, skills, competences and other attributes embodied in

individuals that are relevant to economic activity”. Recent interest among macroeconomists in the possibility of human capital

externalities follows the revival of growth theory, which is built on the idea that human capital is central to growth. Following Lucas (1988),

neoclassical models of growth treat human capital as a produced input to a

standard constant returns technology, so that growth of human capital and growth of output are nearly synonymous.

To appreciate the special place of human capital in modern growth models, we begin with two key facts. First, as noted by Kaldor (1961), most

countries have experienced sustained growth over very long periods of time.

In general, people with low educational attainment, low income and who live in deprived neighborhoods are more likely to suffer from mental health

problems than the general population, although the socio-economic gradient in the prevalence of mental illness varies greatly by condition (see

Yu and Williams, 1999; lorant et al., 2003a; and muntaner et al., 2004; for reviews on the different associations between socio-economic status and

various mental health conditions). Other studies also have made similar

findings on this topic (marmot, 2005; Wilkinson et al., 2003). The literature indicates that education and mental distress are negatively related; higher

education is in general associated with a lower prevalence of mental health problems (see Ross and van Willigen, 1997 for a review; also chevalier and

Feinstein, 2007), although the relationship appears to be less strong than in the case of physical health. Overall, however, education does not appear to

be a major determinant of other indicators of well-being, such as life satisfaction and happiness (Witter et al., 1984; veenhoven, 1996; Hartog

and oosterbeek, 1998; gerdtham and Johannesson, 2001). One of the pathways through which education may promote good mental

health is by enhancing individual and area-level social capital. Individuals

Impact of Human capital on Livelihoods of Hunza: A literature

reviewterature Review

10

with more education may be more likely than less educated individuals to

be socially integrated, and to have opportunities to meet socially within their communities, factors that promote social capital accumulation at the

individual level. They may also be more likely to receive adequate emotional support;

because of homophily, educated individuals are more likely to have meaningful social contacts with individuals who also possess a high level of

education (mcpherson et al., 2001). Given that most individuals rely on the support of those around them to deal with mental distress, if greater

education translates into higher quality psychological support, homophily will mean that educated individuals will receive better support than those

with low levels of education (angermeyer et al., 1999). Individuals who live in communities where the average educational attainment is high also are

more likely to enjoy better mental health than individuals in communities

with lower education levels. Communities where the average educational attainment is higher may in fact be more inclusive and less stigmatizing

towards individuals who have mental health problems, and provide greater practical and emotional support to all their citizens.

As previously highlighted, evidence is emerging on the role of education in promoting a long and healthy life. New evidence also suggests that

educational attainment plays an important role in influencing health-related behaviors’. However, the relationship is complicated between education

and specific behaviors, such as smoking, alcohol abuse, poor nutrition and lack of physical activity. Better educated individuals appear to be somewhat

more likely to engage in some forms of risky behaviors, such as consuming alcohol and drugs (cutler and lleras-muney,

2007), but they are also somewhat better at managing their behaviors’, by

keeping consumption.

Knowledge management in Hunza:

As Francis Bacon said, “Knowledge is power”. The power of knowledge is

very important resource for preserving valuable heritage, learning new

things, solving problems, creating core competences, and initiating new

situations for both individual and communities now and in the future which

will surely sustain and enhance human capital. (Liao, 2003).

11

.The concept of ICT use in the region of Hunza was considered as

supporting tool for creating a knowledge repository and it will be a way of

communication between the stakeholders of the region to build Human

Capital. The concept of ICT as a proxy will be the mean for further creating

knowledge among the stakeholders by sharing information on development

activities and utilizing the knowledge repository. And will be useful for

building Human Capital. The main stakeholders are Government, LSO

(local support organization) of the region Hunza, Gilgit-Baltistan Pakistan,

local community and the Aga Khan Rural support program (AKRSP). The

knowledge repository will be the result of sharing information on

development activities among the stakeholders.

Knowledge management (KM) includes activities and process. It consists of

activities which are intended to discover knowledge, capture existing

knowledge, share knowledge and apply knowledge. Knowledge

management can be defined as “performing the activities involved in

discovering capturing sharing and applying knowledge” (Fernandez et al

2004). Knowledge management pretends to maximize knowledge and

transport it elsewhere in order to be used most effectively (Victoria and

Valencia, 2008).

People and Biodiversity:

Biological diversity is an important natural resource base for the people of

Gilgit Baltistan. For centuries, plant and animal communities supported

the development of early inhabitants of this region, providing the basis for

the evolution from hunting and gathering to agriculture, animal husbandry,

forestry and now trade and tourism. People have domesticated wild

species e.g. wheat, bare l y, buckwheat, yak and wild goats and many

other species and have depended on natural resources for survival and to

meet their basic needs. Majority of the people in Gilgit Baltistan are

engaged in agriculture, animal husbandry, and forest re l a t e d works.

Continuing use and maintenance of biological diversity are, therefore,

particularly important to the people of Gilgit Baltistan. Economic

development of Gilgit Baltistan will depend on sustainable use of

biological resources, maintaining high diversity of crops, management of

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high pastures, raising fodder trees in diverse mountain environment, and

development of medicinal plants and livestock biodiversity.

These will be the viable options for ensuring food security and generating

cash income by the people of Gilgit Baltistan. The high mountains and

narrow valleys kept Gilgit Baltistan physically isolated until quite recently.

It forced people to rely on local biodiversity for food and other essential

needs. Indeed, plants and animal diversity has served as the food security

for the mountain dwellers and supported the development of early

societies, providing the basis for the evolution from hunting gathering to

agriculture, animal husbandry, forestry and now to tourism industry. There

are many historic sites in Gilgit Baltistan where rock carving by the early

inhabitants shows that these people were mainly hunter gathers, and they

had strong affiliation with wild animals and plants. Many of these carvings

are of mountain mammals and trees, for example ibex, snow leopard,

markhor and pine trees are the main figures depicted in these carvings.

Hunters are shown pursuing ibex with bow and arrows and many figures

depict snow leopard chasing ibex. Besides hunting for meat, people

benefited from wild species to meet their basic needs; for example ibex and

makhor skins were used for making winter.

“The high altitudes are a special world. Born of the Pleistocene, at home

among pulsating glaciers and wind-flayed rocks, the animals have thrived,

the harshness of the environment breeding a strength and resilience which

the lowland animals often lack. At these heights, in this remote universe of

stone and sky, the fauna and flora of the Pleistocene have endured while

many species of the lower reams have vanished in the uproar of the

elements. Just as we become aware of this hidden splendor of the past, we

are in danger of denying it to the future. As we reach for the stars we

neglect flowers at our feet. But the great age of mammals in the Himalaya

need not be over unless we permit it to be. For epochs to come the peaks

will still pierce the lonely vistas, but when the last snow leopard has staked

among the crags and the last markhor has stood on a promontory, his ruff

waving in the breeze, a spark of life will have gone, turning the mountains

into stones of silence."

13

George B. Schaller. Mountain Monarchs coats for men, shoes, caps, grain

storage sacs, and to collect wool for making ropes, rugs, and vests. Ibex

horns were used for plugging and excavating soil for constructing irrigation

channels (Kreutzmann 1992, Virk 1999). During the early days people

entirely depended on traditional medicine and wild plant species were

major medicinal source to cure common diseases.

Historically, human has played a major role in shaping biodiversity of our

planet and the ways in which biodiversity is perceived, maintained,

conserved, used, and appreciated. It has been documented that in the past

high level of cultural diversity have been dependent on high level of

biological diversity, which supported them (UNEP 1995). Therefore,

understanding of the many aspects of human influences on biodiversity and

the underlying driving forces is of crucial importance for setting priorities

and directing conservation and sustainable use of components of

biodiversity. It is important to recognize that how people have used and

valued biodiversity and the resources they obtained from it (UNEP 1995).

Since majority of the people in Gilgit Baltistan are engaged in agriculture,

animal husbandry, and forest related activities, continuing use and

maintenance of biodiversity will be important to them. This will provide

basis for the long-term sustainable development of the region. However,

this will depend on sustainable use of components of biodiversity and

maintaining high diversity of mountain ecosystems, crop farming systems,

viable populations of wild species, and managing high pastures efficiently.

Agriculture

Speeding (1988) defined Agriculture as "Agriculture is an activity (of man)

carried out primarily to produce food, feed and fibber (and fuel, as well as

many other materials) by the deliberate and controlled use of (mainly

terrestrial) plants and animals".

This would exclude gardening and landscaping unless products could be

described for them (such as money), but forestry, fish farming and a

number of industrial processes would be included. The word "primarily"

implies that there are other important products and this is indeed so. Since

14

definitions are never as permanent as they sound, new dimensions have

also been added to agriculture, especially when farming is becoming

integrated with non-farming enterprises.

However, when one looks at the Northern Areas, agriculture is not a factory

or industry. It is not merely a sector of production. Agriculture is a way of

life, a cultural practice with all the implications of the word culture. They

comprise growing crops with local seeds, caring animals that have adapted

to the environment, relishing vegetables and fruits of their own kind and

quality. There exists a system of self-reliance and sustainability. It is an

ecological agriculture in its true sense.

The importance of agriculture to the economy can be identified in three

ways: first, it provides food for consumers and fibber for industry; second it

is a source of foreign exchange earnings; and third, it provides markets for

the industrial growth.

Food Security:

It is not only a question of a sufficient amount of foodstuff in quantitative

terms as it is often expressed in official documents. The quality of food

available for the masses is important as well. Thus, apart from safety of

food, the question of food security also means diverse and quality food for

healthy lives. Green revolution is known to be the crop production boosts,

although productions are very low even though hazardous fertilizer,

weedicide and pesticide-use have increased manifold.

Thus, it was both ecologically and economically unsustainable.

Conventional intensive agricultural practices cause severe effect on

nutrition and welfare of people and cause severe health hazards. In

comparison, sustainable ecological agriculture has the potential to provide

cheap, safe and healthy food to the communities in a sustainable way. It is

a safe way of producing that ensures cheap and easily available food. This

is rich in nutrients and taste and best for human health as well. If this sort of

system is revived, majority of the population residing in rural areas will be

able to fulfill all their basic needs, "Health, Education, Clothes, Shelter,

Food, Money etc" through this approach.

15

With regards to food security, there are some other traditional lifestyles,

which are important but have become extinct these days. Few of these are:

1. Use of uncultivated food by the communities: If old villagers are

interviewed, they will disclose that almost 50 percent of their food was

obtained from uncultivated plants, weeds etc., then, in fact, overall

food was a mix of cultivated/uncultivated food plants and

domesticated/wild animals’ meat. In the conventional modern

agriculture, uncultivated plants are considered weeds and are

eradicated through weedicides. The remaining uncultivated plants are

mostly not fit for health due to indiscriminately used agro-chemicals.

In comparison, sustainable ecological agriculture protects the

uncultivated plants as they play an important role in the ecosystem

and if used for food, they are healthy too.

2. Food diversity in the routine life: At this time, our food has become

limited to only a few easily available and mostly industrialized items. In

comparison, a few decades ago food was simple, diverse and rich in

quality. There are several advantages of diverse food. For instance, it

provides diverse important nutrients to the human body needed for a

healthy life. Similarly, growing diverse food crops, coupled with on-farm

livestock, poultry and fishponds, is also best to maintain soil fertility, avoid

severe pest attacks, offer hundreds of uncultivated food plants and present

a healthy environment. As discussed above, in conventional agriculture

only a few cash crops are preferred which leads to a monoculture. In

comparison, sustainable ecological agriculture ensures hetero-culture

comprised of a mix of diverse crops, vegetables, fruit, livestock, poultry and

fish farm on the same farm resulting in good food diversity.

3. Urban agriculture: Under the concept of sustainable agriculture, it is

believed that urban dwellers should also be involved in food production.

This was, in fact, another important factor in the traditional lifestyle a few

decades ago.

16

Urban dwellers were not totally dependent on villagers and used to produce

vegetables, milk, eggs and poultry, etc within homes and in urban

peripheral areas. Although, there are still examples of urban agriculture in a

few urban centers in Pakistan, but due to weak policies, over time, these

are getting rare. The sense of deprivation is the highest among rural poor

especially in female headed households and children. In NA almost 70

percent of population resides in scattered places and villages. Agriculture is

their main occupation. Most of the rural poor are small and marginalized

farmers, landless folk, artisans, female-headed households, aged persons

and children. By and large, small farmers are engaged in subsistence

agriculture where their basic concern is survival and getting ahead of life

with farming. This is why the dimensions of their farms are (most often)

more or less than 0.079 ha/farm and they usually grow multiple crops

associated to their basic needs of food, clothing and shelter. To satisfy

other needs (education, health, clothes, money etc) farmers market the

surplus of their crop yield. This clearly shows that agriculture for farmers is

a way of life, rather than just an economic activity. As compared to the

concept of yield in the modern agricultural system that this much inputs will

result into that much yields, many farmers do not own it. According to them

the yield of an agricultural activity can only be concluded seeing how better

their level of subsistence is being satisfied. Hence, their social and cultural

values are emotionally involved with agriculture. The way modern

technologies are growing and agriculture is being commercialized, rural

communities are gradually going down the poverty line and losing their

subsistence agriculture as well as their social and cultural values. It is also

widely recognized that these technologies have benefited few of the giant

landlords and, particularly, corporation involved in agriculture. As a result,

most of the farmers are gradually losing their hold on agriculture due to the

fact that they cannot afford the increasing costs of modern inputs to

compete. Consequently, a constantly alarming number of villagers are

leaving their agricultural activities and migrating to and settling down in

urban centers. Perhaps due to these circumstances, we are not able to

achieve self-sufficiency and sustainable development. Through its basic

shift in values and priorities from a narrow focus on production and

productivity to a broader emphasis on healthy systems which nurture over

17

the generations, sustainable food systems approaches can contribute in

two fundamental ways towards sustainable development. First, it can be an

important part of reducing global warming, pollution, the loss of biodiversity,

and social and economic inequities. This is because they use much less

fossil fuel and have less environmental impact than conventional

approaches. They also encourage the maintenance and enhancement of

both bio-and cultural diversity (Dahlberg, 1996) second, by pursuing

sustainable approaches which are more environmentally and socially

efficient-as well as more economically sustainable they make sustainable

development more likely. Pursuing the new frontier of sustainable and

regenerative food systems at all levels can thus help avoid the high risk ,

while facilitating the development of healthier citizens, more sustainable

economics, increased equity, and healthier natural systems.

The present status paper attempts to look forward to food security options

and opportunities in view of the available background information for major

grain, horticultural and fodder crops, livestock, poultry and fisheries. NA

having no education and research system in agriculture but survives only

on rudimentary extension service. The meager manpower, limited

resources and little access to modern training and literature all push NA,

agriculture to a lower ebb. Until strenuous efforts are made expected

improved situation may not be possible.

Liberty has been taken to interwove in the paper some of the latest

approaches such as biotechnology to help bring revolution in the thinking

process, without losing sight of conserving the existing traditional land

races of crops, vegetables, fruits, medicinal plants and livestock and the

various genes that have bestowed perpetual continuation of these

organisms for centuries.

Cash Crops For improving the economic conditions of farmers, promotion of cash crops

is very essential. However, some of the serious constraints are, frequent

occurrence of pests and diseases, remoteness and scatter of the

18

plantations, scarcity of quality germplasm, unplanned and non-systematic

orchards, absence of quarantine, poor knowledge about economic side of

cash crops, no training in farm management, etc. However, there are

ample opportunities to promote these crops because of unique climate and

existence of natural physical barriers which can help protect crops from

invasion of pests and diseases, promote biological agents and cut-down

use of pesticides. Cultivation of multipurpose crops/trees like olive,

pistachio, pine, with kernels can be promoted. Indigenous germplasm

which has adapted itself to the environment can be conserved. Where

possible integrated agriculture can be practiced. Systematic orchards +

vegetables for seed production + bee-keeping, etc. The crops which are

considered as cash crops are listed below. These have been ranked

according to their existing and future potential:

Production System:

There are four types of livestock production system, i.e., pastoralist,

transhumant, sedentary and commercial.

Pastoral system:

The true pastoralist, who have ownership over the livestock. According to

1986 livestock census 250 households were known to graze their sheep

and goats round the year. The nomadic system is characterized by years

round continuous movement of goats and sheep herds along the fixed

routes in search of pastures. True pastoralists do not own any land neither

do any farming activities. The movement of livestock is between alpine and

sub-alpine pastures situated in the upper and lower elevation of sub-

tropical rangelands, they spend about 4-5 months in the alpine pastures

and rest of the period in the lower ranges in winter.

The non local pastoralists have to pay to the communal landowners for

grazing their animals for specific period.

Transhumant system:

19

Most of the households (80-90%) are reported to have adopted the

transhumant system of animal husbandry. Farmers live at lower altitudes

for about 7 months where the main house is located. In the cold winter the

animals are kept in the houses in the valley where they are fed maize

Stover, wheat straw and hay. In the summer months the animals are taken

up into the mountains to graze on the subalpine and finally the alpine

pastures. Late April or early May part of the households start trekking

through the mountains. First they move to the edge of the conifer forests

where a second house is located. Here they stay 3-4 weeks and then they

move up to a third house situated in the middle of the forest staying up to 3-

4 weeks, and finally they move to the alpine pastures high up in the

mountains. They stay there for about 6-8 weeks before trekking back to the

valley with the first snow fall in late September following the same routine.

They return to the main house in the valley in October. The flock consists of

a few cows, goats, sheep along with two pack and riding animals. The

transhumant production system has a variant whereby the owner stays in

the village. But during the summer months he hires a shepherd to send

flocks at the mountain pastures. Each herdsman keeps 15-40 cattle or 100-

200 goats/sheep’s or a mixture of both cattle and sheep/goat.

Sedentary system:

In this system the animals are kept in the farm, about one third of the

households are reported to stall feed part of their cattle and to graze part of

their small ruminants in the gentle topography and in the field after

harvesting season is over.

Animals are also grazed in community lands on grasses and weeds of

lands lying fallow. Maize Stover and some hay and grasses collected are

the main feed of the stall fed large animals. In some villages maize stoves,

green grass, wheat straw are sold/ exchanged among the farmers.

Commercial production system:

Commercial and sedentary large dairy farms are virtually nonexistent.

There are semi-intensive poultry farms with 50-75 birds. Only a few non-

20

farm households keep 1-5 cows in the towns to supply fresh milk to

residents and tea-shops.

Micro-credit

Considerable work has been done at governmental and NGO level to

enhance accessibility of easy and cheap institutional credit to women.

Since women lack in assets ownership, there was the need for a

specialized financial institution which could cater to credit needs of micro

business owners without asking for conventional tangible collaterals First

step in this regard was the establishment of

First Women Bank which from its very inception has been launching micro-

credit schemes for women from low income groups both in urban and rural

sectors. Apart from disbursing credit, for developing and updating

entrepreneurial skills among women, the bank conducts entrepreneurial

skill development training programs all over the country. How did the Gilgit

Baltistan benefit from it is not known?

Agriculture Development Bank has also come forward to finance micro

businesses of women and for that they have set up special windows in their

designated branches to look into credit needs of women. Some major

NGOs like Orangi Pilot

Project and Aga Khan Rural Support Programme apart from doing

community development work in the areas of education; health and

population planning have major focus on economic empowerment of

women. They have their own credit disbursement programmes. The

establishment of the Khushhali Bank is a major breakthrough in this regard

as it is exclusively meant for financing micro businesses through loans of

very small magnitude secured against communal guarantee only. Apart

from above notable NGOs, a large number of NGOs are doing good work

in other provinces, these are National Rural Support Programme and

Sarhad Rural Support Programme that are associated in credit

disbursement programmes of Nationalised Commercial Banks as self-help

groups and facilitators. Similar arrangements could be made/initiated in G-

B. The banks in order to cut down the transaction cost of micro loans and

for making credit available at the doorstep of small borrowers induct such

NGOs as an intermediary between bank and clusters of communities.

21

These steps on the part of financial institutions, related government

departments and of course motivational role of NGOs have enabled the

women to go into business and contribute towards growth of the economy.

The economic empowerment thus created has given women self-

confidence and a sense of achievement.

The country now being signatory to CEDAW (Convention on the elimination

of

Discrimination against Women) is gradually taking all affirmative steps to

eliminate gender disparity and to enhance women’s participation in all

walks of life. Things are likely to change in G-B, as well.

Agricultural Development Bank of Pakistan

(ADBP) in G-B

Agricultural Development Bank of Pakistan has been playing a very

significant role in the development of agriculture and socio-economic

conditions of rural poor and neglected farming community of Gilgit –

Baltistan since 1970. It has a set up of 5 branches, at Gilgit, Aliabad,

Gahkuch, Chilas and Skardu, 4 field offices at Astore, Gupis, Gojal and

Khaplu besides 24 Mobile Credit officers. In the mean time ADBP provides

loans in 220 Loanable schemes on off as well as on farm activities. It

provides loans on short, medium and long term bases, with 14% and 16%

mark up. Apart from the above ADBP has also taken up the responsibility

and introduced micro credit scheme under poverty alleviation programme

for landless skilled female and male of the area. So far bank has been able

to disburse an amount of Rs.160.000 million under micro credit scheme,

which certainly provided tremendous self employment opportunities to both

the rural and urban population.

The existing levels of loans for the development of uncultivated land are

insufficient to meet the expenses even for one kanal. Thus it is suggested

that at least Rs. 100000/= be fixed for G-B farmers community. G-B has a

great potential for food, fruits and other high value cash crops, medicinal

plants, etc.

But the farmers are very poor to adopt new options and technologies due to

lack of financial resources. Thus majority of the farmers are reluctant to

22

obtain the loans due to high interest rate. Keeping in view the

backwardness, remoteness and potential of the area special concession in

the interest rate may be granted to the progressive farmers of the G-B for

prosperity of the nation. The existing credit ceiling for establishment of fish

farms, etc is Rs. 50000/- per acre, while the land holdings in G-B are only

1-2 kanals, which does not make the most people eligible for grant of loan.

The amount of loan does not fulfill the requirement for the establishment of

fish farm. Thus it is suggested that Rs.40000/- per kanal may be fixed for

granting loan. Strong linkages are needed between key stakeholders,

registered progressive farmers, and association for utilization of credit

facility for commercial farming.

There is a strong need for strengthening existing capacity of the bank by

inducting agricultural graduates as MCOs, etc.

Post Harvesting, Storage and Marketing

Marketing of fruits and vegetable is highly inefficient. Small volumes are

sold to itinerant dealers, assemblers and retailers through personal

contacts and negotiations, evidently at low prices, in the absence of proper

marketing system.

The aggregated volumes are transported to down country markets notably

Islamabad, Gujranwala, Lahore, Faisalabad and Swat.

Aga Khan Rural support Program

Transformation of the Backward Gilgit-Baltistan Areas through village

organizations.

Indicators of success

Overall improvements, both in quantity and quality, of the natural resources

base (e.g. cultivated land through increasing the area under irrigation,

forests through a forestation/reforestation, rangeland through plantation of

forage grasses, etc) improvement in the living conditions of the people,

minimization of food shortages, reduced dependence on food grains from

outside and greater and more diverse employment opportunities both in the

farm and off-farm sectors. Besides these the biggest success of the

AKRSP is in the level of mass participation (73% of the total rural

23

population are actively engaged in the AKRSP programmes) and in local,

financial resources mobilization (more than 118 million rupees have been

deposited through the rural saving programme)

Central focus and underlying processes

Institutional reforms have been introduced by establishing village

organizations and enabling them to develop managerial and technical skill

to identify, plan, implement, and maintain rural development programmes in

a sustainable, equitable and productive manner,. One of the central and

unique focuses of the AKRSP has been on the effective mobilization of half

of the total population i.e. women in development activities through the

establishment of women’s organizations.

The development process begins with the introduction of productive

physical infrastructure e.g. link roads, trails, bridges, irrigation, land

development, etc. This is following by the

implementation of various productive farming activities e.g. crops, livestock,

forestry and other sideline activities based on the suitability of different

areas such as crop development in the valley and on gentler sloppy lands,

livestock at higher altitudes, orchards, pasture development of steep

slopes, etc

Individual components of the strategy

Diversification

Emphasis has been placed on improved livestock farming through

improved forage and fodder production and breeding. This system has

improved both the animal feed situation and soil fertility. Cultivation of cash

crops e.g. vegetables, dry fruits and cereal crops including potatoes have

been emphasized based on their comparative advantages. Potato seeds

produced in such a cool and pristine environment fetch a premium price in

the market. Agro-forestry and timber production are other important

activities. In forestry development, fodder tree plantation receives prime

consideration.

Intensification

Areas under double cropping are increased because of the introduction of

short maturity crops and an increase in areas under irrigation. Because of

the adoption of crops with high ratio of grains and crop residue, animal

24

production is also intensified. Degraded land and other unutilized/or

abandoned lands are now being used for pasture and orchard.

ISSUES AND TRENDS

The stakeholders in their meeting desired that the background paper on

Agriculture and Food Security beside s covering the stipulated objectives of

NACS should also serve as a reference for them. They desired an up to

date statistics, constraints that have hampered progress in their discipline

and re l e v a n t researchable themes to put them on the right track of

thinking for future progress. They wanted to use this opportunity for

administrative reforms and as a tool for the advancement of their career as

well. An isolated, neglected, suppressed and oppressed community of

scientists, researchers and field workers desired that their

accomplishments should also be reflected in the paper. Consequently while

focusing on sustainable development of NA, conservation of bio diversity

and protection of environment paper was forced to digress and serve much

broader spectrum of interests than an ordinary background paper would do.

It surfaced that in the conservation strategy of NA perhaps human

happiness under the fast changing environment resource poor, unskilled,

uneducated, highly conservative society may be the most wanted element.

IUCN deserves credit for taking a note of it, although AKRSP has been in

the system for a long time.

Endangered Species

The human population explosion has led to unwise use of natural

resources at a rate much faster than their regeneration. Hilton Taylor

(2000) listed several threatened species on account of depletion of natural

resources that also occur in

Pakistan. Some of these also inhabit NA. These are(a) Mammals-snow

leopard, flare-horned markhor, Marco Polo sheep, Ladakh urial, musk deer,

brown bear, woolly flying squirrel, blue sheep, Hima layan bex(b) Birds-

snow cock, monal pheasant. Medicinal plants like kuth (Saussria lappa )

and Karru (Picrorhliza kurroa) are near extinction due to over harvest in

Astore, s alpine meadows.

Some areas of Gilgit and Diamir district are subject to heavy grazing and

fuel wood collection. These two activities pose a threat to many of the rare

25

plant and animal species that inhabit places at different altitudes in these

two districts.

Degradation of Agra-ecosystems’ Homeostasis

In our efforts for enhancing agricultural production, we have introduced

high yielding crop, vegetable and fruit varieties, stepped up use of

fertilizers, pesticides, water regimes, intensive agriculture, etc. Agri-

ecosystem homeostasis is faced with degradative trends in the form of the

following:

Loss of topsoil

Loss of local crop varieties.

Loss of indigenous knowledge

Climatic change

Loss of soil's water holding, micro organisms and productivity capacity

Loss of floral and faunal genetic diversity

Loss of adaptive capacity of mono cultural crops to changed environmental

conditions such as water stress, extreme temperature fluctuations,

changed intensity of sun light. Due to pollution, contamination and changed

food chain, fisheries are at risk.

Unplanned and over grazing has led to degraded pastures and breakdown

of sustained traditional grazing system.

The homeostasis of crop-human/animal- posture is at risk.

Lack of Awareness

Large numbers of development projects have been going on in G-B f o r

transformation of communities, improvement of agriculture and economic

conditions of population. Although people like the change for betterment of

their life, can identify plants and animals, they deal with, are aware of

habitat and seasonal history of many organisms in the villages and

accessible mountains, however, most of the people are unaware of the

value of these resources, and the consequences of their loss in terms of

biodiversity, environmental degradation and aesthetics. Unless and until

they are knowledgeable about the general fauna and flora the questions of

sustainability and conservation remain unattended. The possible

contribution of conserving biodiversity for economic development and

26

poverty alleviation at the community level needs to be attended by

planners, policy makers, educationists, etc in the G-B.

Several NGOs, like World Wide Fund and IUCN have initiated awareness

campaigns, but these are limited in coverage vis-à-vis the task in the G-B.

Lack of Biodiversity Inventories and Monitoring Systems

Historically some information about wildlife, forests, fisheries and

agriculture has been collected by the concerned departments in G-B. Even

this is not readily available to everyone. There is no regular agency or

department to prepare inventories of flora, fauna and micro-organisms

occurring in G-B and to monitor the trends or displacement of the various

species. Because of difficulties in accessibility to rugged mountains, very

little quantitative and even qualitative information about animals, plants,

arthropods, bacteria, fungi, viruses, and soil micro organisms is available in

published or even unpublished form. Therefore the genetic richness,

resource sharing ability in diverse ecological habitats and impact of human

activities and interventions has remained and is still a neglected aspect.

Therefore, whatever efforts are made for natural resources conservation

will lead to partial achievements. Likewise without a regular monitoring

system, proper assessment of trends becomes impossible. Only guest

mates come to our rescues.

Institutional Capability, Capacity and Resources

The departments of agriculture, fisheries, forestry and livestock are

responsible for sustainability, conservation and management of

components of biodiversity in G-B. However, by nature of their training

there is generally a lack of conservation attitude. The employees of these

departments mostly adhere to concepts of exploitation of resources for

economic benefits and satisfying human needs. It is also partly true that

funds, transport for mobility, equipment and on the job training for

enhancing their capability and capacity to meet the challenges under the

changing environment is lacking. To most employees, concepts of

conservation biology, carrying capacity of different habitats, sustainable

27

productivity, species displacement, etc are not known. Perhaps roster of

their duties needs redefinition to suit the modern requirements.

Another setback in the G-B is, there is no researches as for as most

departments are concerned. They consider policing the resources their

prime job and are least bothered even if the entire resource is eroded.

Agencies such as IUCN, WWF,

AKRSP and Himalayan Wildlife Foundation (HWF) have taken up steps to

promote concepts of conservation and sustainable use of biodiversity. This

will change the style of management of natural resources and lead to

critical assessment of trends, which are virtually non-existent now.

Gaps in Knowledge

The biological, ecological, physical and even cultural diversity of NA has

remained un-mapped. Sporadic, site specific and development oriented

efforts have provided us with only check lists. Many of these are just

extrapolations by knowledgeable persons. Some of the taxonomic and bio-

geographic information about mammals and birds are available in the

works of Schaller (1977), Robberts (1991, 1992 and 1997) and a recently

published report (2000) of floral and faunal joint expedition of the Oxford

Univ. Museum and Pakistan Museum for Natural History. Very little is

known about amphibians, reptiles and fishes. The role of many of these

taxa in the sustainability and productivity of agriculture and food security

remains obscure. Even the existing associations between various biological

taxa and the benefits of their interactions in terms of pollination of crops,

changes in the soil texture, recycling of organic matter to enrich the soil

fertility, are as less known as are the indigenous races of crops, fruits and

vegetables.

Laws in Gilgit-Baltistan

In general there are various acts and rules in G-B to protect and safeguard

the diversity of wildlife, fisheries and forests. This is however not linked to

quarantine laws but is done through policing. There are limited staffing and

resources available to departments in G-b. These short comings have led

to inadequate protection of species, in sufficient safeguarding against

degradation and destruction of habitat, weaken forcemeat of laws, low

public awareness, lack of coordination between various agencies, lack of

28

involvement of local communities in migrating threats to these resources.

Most new initiatives diverge from traditional approach of policing natural

resources and alienating local communities who traditionally depend on

these resources to meet their subsistence needs

A number of organizations have been active in promoting participatory

conservation and sustainable development in G-B. The organizations

include Aga

Khan Rural Support Programme (AKRSP) IUCN, WWF and Himalayan

Wildlife Foundation (HWF).

Side Effects of NGOs Activities

The primary objective of AKRSP is to improve the lives of mountain people

by mobilizing local communities and implementing sustainable

development agenda.

AKRSP covers almost entire NA and operates through 1592 Village

Organizations (VOs) and 930 Women's Organizations (WOs) for continuity

of their program. Its programs /projects/ initiatives have also contributed to

raising environmental conservation awareness among the masses. Its

activities like development of land for agriculture, forest plantation,

collaborative management of fisheries, and irrigation system at a level

lower than the irrigation channels have provided new niches and added

advantage to several faunal taxa. Shifting of agricultural associated seed

and foliage eating insects, birds and small animals to abodes has been

made possible by such activities Likewise the infrastructure established by

AKRSP has also helped in operations of other NGOS, like IUCN, WWF &

AWP. AKRSP’s initiative to establish Women's Organizations is a step

towards gender integration.

Case Study:

We have taken some similar case studies from Africa and South Asia were they have focused more on Human capital which resulted in Economic

development and it helped them in diversifying their livelihoods. Health and education are both components of human capital and contributors to

human welfare. One index of human welfare, which incorporates income,

29

education and health, shows that Africa’s level of ‘human development’ is

the lowest of any region in the world. In this paper we will frequently compare Africa with South Asia so we can clearly understand the role of

Human capital in economic development. . While Africa’s level of human development is lower than that of South Asia, its per capita income is

higher. Africa’s poor economic performance has been most marked in its growth rate which has been half that of South Asia. As Africa has found

since 1980, slow economic growth severely limits the ability of governments and households to fund further investments in health and

education. Low investments in human capital may impinge on already low growth rates of income. Such interrelations might be thought to imply a

vicious circle of development, but this should not be overstated. Poor countries have considerable discretion over how much to invest in health

and education. Since Independence, Africa has achieved a rapid growth of

some aspects of human capital - particularly in the expansion of education - despite starting from a low level of income. The expansion of the human

capital stock has not been matched by a commensurate rise in physical capital. The result has been low growth of incomes and low returns to the

educational investment. This paper provides an overview of Africa’s achievements in the formation of human capital, and its impact on

economic growth and welfare. Human capital, economic growth and welfare are closely interrelated.

Education, good health and longevity are intrinsically valuable outputs. In conventional measures of economic output, health and education’s

contribution is measured essentially by the costs of producing the outcomes, ie expenditures on schools and medical facilities. Such a

procedure identifies inputs rather than outputs. The valuation of both health

and education is difficult as both are goods with attributes different from most types of goods produced in an economy. Whilst high incomes may be

conducive to health, health cannot be directly purchased like material goods and services. Health and education are often subsidized by the state

and in some countries education is compulsory for certain minimum length of times. Many, if not most, health and education services are produced by

the public sector. Governments play a direct part in providing services very directly linked to human welfare.

The UNDP has developed a composite indicator, the human development index (HDI), which gives equal weight to three indicators: real GDP per

capita (measured at purchasing power parity in constant prices); life

30

expectancy at birth; and educational attainment, measured by adult literacy

(two-thirds weight) and combined primary, secondary and tertiary enrolment ratios (one third weight) (see UNDP, 1997, p122 for details). The

index is valuable in extending the economic concept of welfare, but for many purposes it is more useful to focus on the individual components of

the index than the index itself. Africa has performed very differently in each of the three dimensions of the welfare and the dimensions are not

independent. The most recent UNDP Human Development Report shows that Africa has

the lowest level of human development of any region but its income per capita is higher than that of South Asia.

In what follows, we often compare Africa with South Asia. This comparison provides a useful benchmark, since South Asia is the region most similar to

Africa in terms of income and overall development. For example, it is

instructive to consider why Africa has a lower HDI than South Asia despite having higher income. The proximate cause is the relatively low life

expectancy at birth of Africans. Effects of education upon health and nutrition

One indirect effect of expenditure on education may be its effects on health. Within developing countries, the children of educated parents face

lower risks of premature death. This is apparent from analysis of both the World Fertility Surveys and the subsequent Demographic and Health

Surveys (Hob craft, 1993). Parental education is also associated with better child anthropometric status (weight and height), although the association is

less marked than that with mortality. However, in socio-economic surveys, educated parents are often more likely to report that their children have

been ill. This suggests that educated parents are better at recognizing

medical problems in their children. Part of the association between parental education and child mortality may

work via household income. However, the independent impact of education in models which carefully control for income shows this cannot be the only

transmission mechanism. Indeed, many studies have found education to have a stronger direct effect on child health than income. The direct effect

of education may be informational. In Uganda, recent work found educated mothers to be better informed about various diseases and that such

information was strongly associated with lower child mortality (Mackinnon,1995).Similarly, in Morocco, mothers’ education appears to

improve child anthropometric status by providing cognitive skills which

31

increase knowledge about health (Glewwe, 1997). In Côte d’Ivoire and

Kenya, educated mothers are more likely to send sick children for treatment (Appleton, 1992).

Effects of education upon fertility Whether and how government policy should affect fertility is a controversial ethical issue. However, the UN International Conference on Population and Development in Cairo in September 1994 highlighted the importance of enhancing female education as part of a successful population policy. More educated women commonly tend to have smaller families, although this is less marked in Africa than elsewhere. Perhaps the best evidence on the relationship between fertility and female education in Africa is that provided by the Demographic and Health Surveys (DHS) carried out in the late 1980s. Women with primary education tend to have fewer children in most countries, but the relationship is weak. By contrast, women with post-primary education have markedly fewer children. These associations persist even after controlling for other variables (Ainsworth, Beegle and Nyamete, 1995)9. In half of the countries, there was no significant association between primary education and fertility after controlling for income, age and a few other variables. For the other half of the countries, there was a significant negative relationship but it was less strong than with secondary schooling. By contrast, there was a universally negative relationship between fertility and female secondary schooling. The effects of higher secondary schooling (11 years of schooling or more)

were 2-4 as large as those of lower secondary schooling. Husbands’ education also had a negative effect on fertility where it was significant,

although the effect was weaker than that of wives’ education. Education

appears to reduce fertility more in the DHS data than in the earlier World Fertility Surveys carried out in the late 1970s (see UN, 1987). Although this

may partly be accounted for by methodological differences in the data analysis, this seems to reflect a genuine change over time. In particular,

amongst women in the older cohort (aged 35 and over) of the DHS, schooling of less than eleven years was seldom associated with lower

fertility. The associations between female education and fertility are likely to be, at

least partly, causal. Educated women may be able to obtain higher wages, increasing the opportunity cost of time spent rearing children. They may

also have a preference for more educated children, making it more

32

expensive to have large families. Education may also change knowledge of

and attitudes towards the use of modern contraception. However, there is simultaneity between female education and fertility. In most countries,

child-bearing and school attendance are incompatible, so girls face a choice between staying on at school and marrying young. This may partly

explain why higher secondary schooling has such a large impact on fertility, since the age of students often coincides with the typical age at marriage in

many African countries. Poverty and Human Resources

Poverty can prevent households from making high return investments in the human capital of their children. The poor may not be able to spare their children - particularly their girls - from household work in order to go to school. A study of gender differences in performance in the primary-leaving examination in the Cote d’Ivoire found that the difference arose due to the under-performance of girls from poor households. This may reflect the demands on the time of girls in poor households. In their last two years of primary school, girls from the poorest 25% of households reported spending 16 hours a week in school and 15 hours on housework; in the most affluent 25% of households, the figures were 27 hours and 7 hours respectively (Appleton, 1995a). Poor households may also not be able to afford the monetary costs of health care and education. These costs may help explain why the benefits of post primary schooling accrue mainly to the non-poor. A beneficiary assessment of social sector spending in Tanzania found the poorest and most affluent quintiles received 19% and 18% respectively of expenditure on primary schooling; but for secondary schooling, the poorest received only 8% and the most affluent received 36%. All university expenditure was estimated to accrue to the richest 20% of the population (World Bank, 1995). However, non-monetary factors are also important: lack of parental education is often found to be more critical than a lack of income per se in determining child health, performance at school and eligibility for post-primary education. Household surveys provide useful evidence on the distribution of investments in human capital. For example, survey data for Cote d’Ivoire in 1985 showed net primary school enrolment rates for boys to be 32% amongst the poorest 10% of the population but 66% amongst the non-poor (defined as the top 70% of the population. For girls, the corresponding figures were 22% and 54%. Interestingly, girls from poor households appear to have suffered more from the country’s economic decline in the 1980s: by 1988, net primary school enrolments for girls in very poor

33

households had declined to 17% whilst amongst the non-poor they had risen to 57%. Male primary school enrolments rose in non-poor households and remained constant in very poor ones. Poverty was also strongly correlated with use of curative and preventive health care, although here gender differences were less marked. In 1985, 31% of very poor males consulted a doctor or nurse when sick; amongst the non-poor the figure was 51% (Grootaert, 1994). By 1988, the inequalities had widened, with the corresponding proportions being 19% and 53%. Poverty profiles of African countries invariably find rates of poverty decline sharply with the education of the household head. For example, in Nigeria in 1992, 39.5% of people in households with uneducated heads were poor; for those living in households with secondary school educated heads; the poverty rate was only 23% (World Bank, 1996). Education reduces poverty partly by giving access to high return formal sector employment and to higher wages within such employment. However, there is evidence that education and nutrition also raise productivity in farm and non-farm self-employment, activities in which the poor are concentrated. Effects of education upon child schooling and cognitive development Children are typically more likely to go to school if their parents are educated. They also tend to perform better in school and in some cases may earn higher incomes in adulthood. For example, a study of Kenya and Tanzania compared the probability of manufacturing workers having completed lower secondary schooling as a function of the education of their parents. In Kenya those entering school around 1960 were predicted to have a 21% chance of completing lower secondary if both their parents were uneducated and an 83% chance if one of their parent had at least secondary education and the other at least primary education. The figures were similar Tanzania. Since most secondary schools at that time were state schools, where access was rationed by performance in the primary-

34

Sustainable Livelihood Framework of Hunza

35

SUSTAINABLE LIVELIHOOD APPROACH (SLA)

CONTEXT LIVELIHOOD

RESOURCES

INSTITUTIONAL

PROCESSES & ORGANIZATIONA

L STRUCTURES

LIVELIHOOD

STRATEGIES

SUSTAINABLE

LIVELIHOOD OUTCOMES

Policy: Exploration

of the policy context and the way

policies are implemented

is crucial and highly livelihood

specific. Are we

inquiring into the effects of an

overarching policy, such

as pro poor growth, or of measures

targeting poverty more

directly, e.g., services like ration

schemes? It can be

beneficial to review both supporting

and constraining

policies.

History: Hunza is one

of the most beautiful

areas of the

Natural Capital: Natural capital

is the term used for the

natural resource stocks from

which resources

flows and services (such as land, water,

forests, air quality) useful

for livelihoods are derived. People of

Hunza have inherited land

from their forefathers and on this

land they cultivate

different kinds of crops which they sell

domestically and also at

national level. It especially is important for

those who derive all or

part of their livelihoods from natural

In livelihood frameworks "institutions"

embrace two important elements:

on one hand, the rules and normative frame conditions

that govern social interactions; on the

other hand, the way that organizations operate in both the

public and private sector, on the

background of explicit and implicit values. Political

participation, market systems,

concepts of social orders (such as castes, clans, etc.)

belong to this field of investigation.

In Hunza still there are not strong institutions that

would govern their lives and regulate

their development. Hence, the process of development so

far is haphazard, uncontrolled at best

and directionless at worst. NGOs played vital

Agriculture Extensification & Intensification Some NGO’s Worked on

irrigation system and

also on Agriculture extensification

and intensification.

in Hunza. The intervention improved

levels of productivity,

employment and income Resulting from

irrigation is widespread.

irrigation development alone, confirm

that higher value crops,

higher yields and the more intensive

cultivation techniques

lead to higher, less risky and more

continuous

Livelihood: • Achievements (results) of livelihood strategies • Outcome categories – More income – Increased well-being – Reduced vulnerability – Improved food security – More sustainable use of the natural resource base • Conflict between livelihood outcomes – When increased income for particular groups is obtained through practices that

36

world with fertile land, orchards,

forests and livestock and

a great culture. People of

Hunza have historically

been marginalized politically,

socially and economically

by the dominant powers of

Federal. As a result they

have had little involvement

with, or control over,

national-level decisions.

Macro-economic conditions: In most

mountain communities,

traditional forms of

bartering have given way to

monetary exchange.

Much of a person's

economic

resource based activities, and

particularly for poor farmers

and herders. In more general terms,

good air and water quantity

and quality represent a basis for good

health and other aspects

of livelihood. Natural assets such as

climate and ecosystems,

largely determine the vulnerability

context of poor men and

women. The vulnerability context is

shaped by trends (think of

population increase), shocks (like

droughts, floods and

disease) and seasonality (dry and wet

season). Water is the

key natural resource in livestock

production. It is consumed

directly as

role in Social Mobilization. There is much that

can be done. In modern societies

higher education and skill-based trainings has

become an inevitable

prerequisite for economic growth and development.

levels of Rural employment

and income, for both farm

families and landless labor. Livelihood

diversification

Migration Migration forms a central

component of livelihood

diversification. In Hunza for example,

migration is widespread

and it is linked to income generation

Strategies. It has been seen

how migrant remittances may relieve

rural credit constraints,

the particular importance of migration to

those living in poor agro

climatic conditions. In the past some

researchers have pointed

out the importance of migration in

providing

are detrimental to the natural resource base • Close relationship between livelihood outcomes and Assets, with these linked through livelihood strategies. The capacity of

the national and regional stakeholders in

dealing with livelihood

development and the protection of the

environment in Hunza it

enhanced. Income generation and

resilience of people in Hunza

is improved through capacity building, the

unlocking of new livelihood

opportunities and by promoting more

equitable approaches in

the Institutional set-ups.

37

value to a household is increasingly

defined by the amount

of cash that he or she can bring in.

Climate:

In the risk-prone

environment of the mountains,

full of uncertainty

and diverse agro-ecological

conditions, farmers must

maintain a careful selection of

crops, plants and livestock

varieties that are well adapted to

their harsh environment

s, demand few resources

and provide security

against risks. Livelihood

strategies depend

largely on the wise management

and use of

drinking water and indirectly through feed.

The natural resource

stocks (soil, water, air, genetic

resources, etc.) and

environmental services (hydrological

cycle, pollution sinks, etc.)

from which resource flows and services

useful for livelihoods are

derived. Hunza is rich in natural

resources like precious gems

and someone of the people sell rely on

these resources for

livelihood and they some merchants

also export these gems

and earn high profits which helps them to

build their assets and or

to diversify their livelihood strategies.

Economic

much needed resources for investment in

rural

production.

Sustainability:

Sustainable

Livelihoods approaches

provide a framework for addressing

poverty and Vulnerability in

both development and

humanitarian contexts. They

have emerged from the growing

realization of the need to put the

poor and all aspects of their lives and means

of living at the

centre of development and

humanitarian work, while

maintaining the Sustainability of natural

resources for present and

future generations. This will

result in the implementation

of adequate policies and practices related

to sustainable development

and

38

diverse genetic resources.

Social

differentiation: the relatively egalitarian

examples of gender relations in

some traditional

mountain societies with

Buddhist or animist

beliefs are being transformed

by the prevailing

values belonging to lowland

religious, nationalistic

and cultural paradigms.

Some of these new

values come from Western

influences, some from

regional pan-South Asian influences

and some from

development

or financial

capital: An average

Hunzukutz, whether he works or earns

from any other source, is rich

because of the value of his property like

house, orchard and

livestock. If calculated, the average worth

of such commodities

reaches the million figures. The availability

of cash or equivalent that

enables people to adopt different

livelihood strategies is

financial capital. Two main sources

of financial capital can be

identified as: - Available

stocks comprising

cash, bank deposits or liquid assets

such as livestock and

jewellery, not

conservation of the environment in the context of

socioeconomic and climate

change. Sustained

management of Ecosystem

assets, including biodiversity, land and water

resources, forests,

rangelands, and the related services,

notably by closely involving

local communities.

39

paradigms themselves. The marginal

status of most

mountain societies makes

resistance to more

powerful forces difficult, and

the process of

mainstreaming mountain cultures into

national identities

may negate the stronger positions of

women from these

traditional communities.

having liabilities attached and

usually independent

on third parties.

- Regular inflow of

money (conventional poverty

indicator of less than one

dollar a day) comprising labour income,

pensions, or other transfers

from the state, and remittances,

which are mostly

dependent on others and need to be

reliable.

Human capital: Human capital in Hunza

represents the skill, knowledge,

ability to labour and

they have their own farms and eat healthy

food and environment is

clean and

40

friendly so the enjoy good health that

together enables

people to pursue different

livelihood strategies and

achieve their livelihood objectives.

At the household

level it varies according to gender, age,

household size, skill

levels, leadership potential,

health status, etc. and

appears to be a crucial factor in order to

make use of any other type

of assets.

Social capital: The social resources (networks,

social claims, social

relations, affiliations, associations)

upon which people draw

when pursuing

41

different livelihood strategies

requiring coordinated

actions. In Hunza there is only one

community living they

have their own community centers where

they gather for mutual

benefits.

Physical capital: An average Hunzukutz, whether he

works or earns from any other

source, is rich because of the value of his

property like house,

orchard and livestock. If calculated, the

average worth of such

commodities reaches the million figures.

42

APPROACHING LIVELIHOODS WITH A

THREEFOLD FOCUS

43

HUMAN CAPITAL

Human capital in Hunza represents the skills like hand weaving,

embroidery, carpet and rug making, gems cutting, handicrafts and so

on. Knowledge includes traditional farming techniques and as well as

modern farming techniques. Human capital in Hunza represents the

skill, knowledge, ability to labour and they have their own farms and

eat healthy food and environment is clean and friendly so the enjoy

good health that together enables people to pursue different livelihood

strategies and achieve their livelihood objectives.

At the household level it varies according to gender, age, household

size, skill levels, leadership potential, health status, etc. and appears

to be a crucial factor in order to make use of any other type of assets.

As they live in capacity to work and good health that together enable

people to pursue different livelihood strategies and achieve their

livelihood outcomes. Human capital is important in its own right;

health, knowledge and skills help create sustainable livelihoods.

Human capital is also necessary to be able to make use of the other

five types of assets.

SOCIAL CAPITAL

The social resources (networks, social claims, social relations,

affiliations, associations) upon which people draw when pursuing different livelihood strategies requiring coordinated actions.

In Hunza there is only one community living they have their own

community centers where they gather for mutual benefits.

Social capital in Hunza is defined as the social resources upon

which people draw in pursuit of their livelihood objectives. These social resources are developed through (1) interactions that

increase people's ability to work together, (2) membership of more formalized groups governed by accepted rules and norms,

44

(3) relationships of trust that facilitate co-operation, reduce

transaction costs and can provide informal safety nets.

Social Organisation & Collective Action

As the building blocks for development in Hunza, AKRSP provided the quintessential model for social mobilisation and

community participation. AKRSP and KIDP helped create grass

root institutions called Village Organisations (VOs) that became the vehicle for development at the village and valley levels

45

NATURAL CAPITAL

Natural capital is defined as the term used for the natural resource stocks (e.g., land, water, forests, clean air, and mineral resources) upon which people rely. The benefits of these stocks can be direct and and/or indirect, and they are tightly linked with property and user regimes.

PHYSICAL CAPITAL

Physical capital in Hunza comprises the basic infrastructure and physical goods that support livelihoods. Infrastructure consists of changes made to the physical environment that help people to meet their basic needs and to be more productive. An average Hunzukutz, whether he works or earns from any other source, is rich because of the value of his property like house, orchard and livestock. If calculated, the average worth of such commodities reaches the million figures.

FINANCIAL CAPITAL

An average Hunzukutz, whether he works or earns from any other source, is rich because of the value of his property like house, orchard and livestock. If calculated, the average worth of such commodities reaches the million figures. Financial capital is defined as the financial resources that people use to achieve their livelihood outcomes. Most of the people in rely on agriculture and services for their livelihood and they save the surplus liquid cash in bank for future shocks. These are resources in the form of available stocks and regular inflows of money (for example, livestock and the related flow of income).

POLITICAL CAPITAL

Political capital is the power and capacity to influence political

decision-making through formal and informal participation and/or

46

access to political processes. It therefore includes the ability to

represent oneself or others, the freedom and capacity to become collectively organised to claim rights and to negotiate access to

resources and services. It also extends to the right to hold government and service providers accountable for quality and

access.

APPROACHING LIVELIHOODS WITH A

THREEFOLD FOCUS

Focus I is on the four key elements in the context of a livelihood

system. Focus II and III concentrate on the core of a livelihood

system. While focus II is on the asset portfolio, focus III

concentrates on the decision making space in which people

develops and/or adapt their livelihood strategies and strive for

outcomes with their own perception of inner and outer realities of

their livelihoods. External support becomes meaningful, if they

succeed in improving their livelihood strategies towards more

sustainability.

47

FOCUS I: ANALYSING THE CONTEXT OF A LIVELIHOOD

SYSTEM

48

Focus I, represented graphically above, invites exploration of four

crucial dimensions of the context of a livelihood system. Four key

questions are used to address these dimensions.

49

RISKS AND VULNERABILITY: WHAT RENDERS

PEOPLE'S LIVELIHOODS VULNERABLE?

Risks and shocks, adverse trends and seasonality have a bearing on people's livelihood. Yet, a livelihood becomes truly vulnerable

when it lacks adequate coping or adapting capacities on the micro-level of livelihood. The level of these capacities is explored

with Focus II (asset portfolio) and Focus III (livelihood strategies). These two focuses help to clarify the following question: "Should

the poverty reduction measures tackle an observed risk and reduce an assessed vulnerability in the context of poor people's

livelihood, or should they target the core of livelihood and aim to increase people's coping capacity?"

LIVELIHOOD STRATEGIES

Agriculture Extensification & Intensification

Some NGO’s worked on irrigation system and also on Agriculture extensification and intensification in Hunza. The intervention

improved levels of productivity, employment and income. Resulting from irrigation is widespread irrigation development

alone, confirm that higher value crops, higher yields and the more intensive cultivation techniques lead to higher, less risky and

more continuous levels of rural employment and income, for both

farm families and landless labor.

50

Livelihood diversification

Livelihood diversification in Hunza is diverse but emphasis has

been placed on improved livestock farming through improved forage and fodder production and breeding, mainly improvised by

NGOs and Government facilities. This system has improved both the animal feed situation and soil fertility. Cultivation of cash

crops e.g. vegetables, dry fruits (apricots, nuts, mulberry) and cereal crops including potatoes have been emphasized based on

their comparative advantages. Potato seeds produced in such a cool and pristine environment fetch a premium price in the market

such as in markets of overall Pakistan. Agro-forestry and timber

production are other important activities. In forestry development, fodder tree plantation receives prime consideration.

According to the survey crops and vegetables contributes about

91% of the Gross Household Farm Income. The share of fruits is 8% while livestock contributes 1%.

Income from different farm-sources

Fruits Crops & Vegetables

Poultry & Livestock

Total

Income 1,994,755 21,621,450 134,024 23,750,229

% 8% 91% 1% 100%

With the farm incomes people pursue other non farm incomes in

cottage industries or technical skill requiring jobs within their locality or nearby towns or taking part in other farms on daily

wages in off seasons.

Although livelihood diversification is an important strategy by

which rural people may work to achieve sustainable livelihoods, it is one that generally operates in conjunction with other strategies

which also contribute to the formation of sustainable livelihoods.

51

Two of the strategies which complement livelihood diversification,

and which are being considered as a part of this study, are migration (often in itself a part of livelihood diversification) and

agricultural intensification.

Migration

Migration forms a central component of livelihood diversification.

In Hunza for example, migration is widespread and it is linked to income generation strategies. It has been seen how migrant

remittances may relieve rural credit constraints, the particular importance of migration to those living in poor agro climatic

conditions. In the past some researchers have pointed out the importance of migration in providing much needed resources for

investment in rural production.

SUSTAINABLE LIVELIHOOD OUTCOMES

Sustainable livelihoods approaches are based upon evolving

thinking about poverty reduction, the way the poor live their lives, and the importance of structural and institutional issues. They

draw on three decades of changing views of poverty.

This extensive study on the achievements in livelihoods shows that considerable changes have taken place in the living standard,

day to day activities and the various aspects of the livelihoods of the local inhabitants of the Hunza Bottleneck area. As changes in

the livelihoods most of them appear positive, but from the point of

view of biodiversity some of these changes appear negative also. These changes can be attributed to various factors like the past

political atmosphere; exercises at the professional, commercial, community-based, cultural, political and organizational levels for

social security; along with the changing economic and political values and people's thoughts and behaviors; struggle for the

resources for livelihoods and search for the wish to live; development of novel ideas; strategies for livelihoods;

52

opportunities for livelihoods based on resources, mainly

community forests; expansion of groups and organizations; professional, commercial and community service-oriented

organizations and establishments started in the private sector; transport; market; privatization; extensive changes in

communication; and so on. Therefore taking the resources of one and only one community forest and the ongoing involvements in

that as the basis cannot be universally acceptable. Similarly as the external motivating factors like different programs, projects,

social mobilization at the government and non-government levels, the value of authority-oriented concepts, rapid political awakening

and soon have been equally contributive.

Conclusively, the two main dimensions of the changes that have

taken place in the livelihoods of the inhabitants of this area are the

i) Changes in institutional management capacity and

ii) Changes in people's wellbeing status.

These can be outlined in the following points:

■ Diversity in the Living Standards

■ Employment Opportunities and Means of Cash Earnings

■ Integrated Family Support and Social Harmony

■ Enhanced Social Prestige

■ Desired Outputs from Minimum Investment

■ Social Inclusion

■ Reduce Poverty.

53

Conclusion

This research focused on the few crucial initiatives taken by NGO, s, CBO,

s, VC, s, Government institutions and so on. Throughout past two to three

decades among the all capitals, Human capital is one of the major factors

and positive feature which helped to diversify the Livelihoods of people of

Hunza. Migration is one of most dominant phenomenon, played very

dominant role in enhancement of livelihoods of local people, but has been a

common source of non-farm income to varying degrees. Hunza high

mountainous region in the outside edge have often been considered

‘backward’ regions, lagging behind the progress of socio-economic

development in the lowlands and urban centres. So, the basic cause of

influential interventions was to reduction of poverty and sustainability of all

five capitals. Education was centred focus in Hunza Valley to bring people

forward and to connect them with rest of the World. .The concept of ICT

use in the region of Hunza was considered as supporting tool for creating a

knowledge repository and it will be a way of communication between the

stakeholders of the region to build Human Capital. For centuries,

traditionally communities supported the development of early inhabitants of

this region, providing the basis for the evolution from hunting and gathering

to agriculture, animal husbandry, forestry and now trade and tourism, which

indicates the change in the pattern of living of people of Hunza and the

diversification of livelihood strategies due to increase in the livelihood

opportunities. The importance of agriculture to the people of Hunza can be

identified in three ways: first, it provides food for local people and ensures

the sustainability of livestock; second it is a source of internal exchange

earnings (within country); and third, it provides market for the growth of

local small business holders. Since women lack in assets ownership so,

Considerable work has been done at governmental and NGO level to

enhance accessibility of easy and cheap institutional credit to women and

Men as well, to enhance and build their Human Capital. Agricultural

Development Bank of Pakistan is one of the most significant examples.

Large numbers of development projects have been going on in G-B for

transformation of communities, improvement of agriculture and economic

54

conditions of population. Several NGOs, like World Wide Fund AKRSP and

IUCN have initiated awareness campaigns, for future concerns and to

stabilization of area for upcoming challenges in the Hunza, as well as the

whole region Gilgit-Baltistan.

55

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