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Media Release: New Study Reveals The Importance Of Economic Freedom For Development In Pakistan

Market and policy integrated with rule of law can bring well-being to all
As economic freedom and well-being are shown closely related for all income levels, granting economic freedom should precede poverty alleviation programs
Lahore December 3, 2009: An empirical study of the two sample districts of Punjab (Bahawalpur and Sialkot), conducted by Ali Salman on behalf of the Alternate Solutions Institute, shows that merely guaranteeing social opportunities, which has been the mantra of almost all development practitioners (such as Amartya Sen) as well as aid granting agencies, and poverty alleviating agencies in Pakistan, does not lead to either well-being or freedom. In the absence of rule of law, all investments in the well-being end up decreasing freedom of individuals as well as of nations.


Market and policy integrated with rule of law can bring well-being to all
As economic freedom and well-being are shown closely related for all income levels, granting economic freedom should precede poverty alleviation programs
Lahore December 3, 2009: An empirical study of the two sample districts of Punjab (Bahawalpur and Sialkot), conducted by Ali Salman on behalf of the Alternate Solutions Institute, shows that merely guaranteeing social opportunities, which has been the mantra of almost all development practitioners (such as Amartya Sen) as well as aid granting agencies, and poverty alleviating agencies in Pakistan, does not lead to either well-being or freedom. In the absence of rule of law, all investments in the well-being end up decreasing freedom of individuals as well as of nations.
The Report Well-Being and Freedom at Crossroads: An Empirical Inquiry into Development was released here in Lahore today on December 3, 2009. On this occasion, the author of the Report, Ali Salman said, “Poverty is not about earning levels, it is about inability to absorb shocks. Also, without rule of law, the governance structure becomes a black hole, in which all the development is vacuumed.”
Dr. Khalil Ahmad, Executive Director of the Institute, pointed out, “The findings of this study challenge the very rationale of Pakistan’s poverty alleviating strategies, which have constantly been failing as the number of those who are below the Poverty Line, instead of decreasing, has increased.” He further said, “Though this study focuses only on two districts of Punjab, it amply shows the overall inefficacy of government initiatives in reducing poverty.”
The Study finds that people in rural areas welcome economic freedom i.e. market based reward structure when it comes to pricing of agriculture output as a very effective instrument to promote well-being. Farmers are ready to give up subsidies on inputs i.e. seeds and fertilizers as long as their output can receive a market price.
The main recommendation of the Study can be worded thus:
Let economic freedom prevail and the people will alleviate their poverty on their own!
 
Title of the book: Well-Being and Freedom at Crossroads:
                               An Empirical Inquiry into Development
Author: Ali Salman
First edition: November 2009
Pages: 70
Price: Rs.160
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