PRESENTATION TO THE PUNJAB DEVELOPMENT FORUM

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PRESENTATION TO THE PUNJAB DEVELOPMENT FORUM
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Punjabs Development Priorities

• 18th April 2005

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SOCIO-ECONOMIC PROFILE
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SOCIO-ECONOMIC PROFILE
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VISION 2020

• Fully literate, fully employed, highly educated,
  skilled, talented, culturally sophisticated,
  internationally connected and a well-off healthy
  society.
• It will have an excellent education system,
  competitive markets, internationally competitive
  companies, world class infrastructure with modern
  urban centres.
• A high value adding agriculture, smart, small and
  efficient government economy with
  international investors.
• The GDP should grow at 8 per annum to create one
  million productive sustainable new jobs in the
  Punjab.

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PUBLIC POLICY FRAMEWORK

• Focus on the following five pillars of economic
  growth in the Punjab
• Agriculture sector (Including livestock,
  fisheries, forestry, horticulture, floriculture
  etc.
• Industry (including agro-based industry).
• Natural Resources (including hydel power and
  minerals).
• Strengthening of economic and social
  infrastructure. Focus on urban areas in order to
  unleash full economic potential of the cities.
• Services (including housing, transport and
  communication, hotel, tourism and resorts).

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ELEMENTS OF ECONOMIC STRATEGY

• Improving governance
• Reforming the fiscal and financial management
  system
• Creating a more supportive environment for
  private sector-led growth
• Extending social sector coverages and improving
  the delivery of public services and
• Addressing the provincial economys vulnerability
  to shocks.
• Desired outcomes increase in the incomes of the
  citizens and their access to improved public
  service delivery.

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EMPLOYMENT VISION

• Every year create one million productive
  sustainable new jobs in the Punjab
• 25 thousand jobs, based on need and merit through
  direct Public Sector employment in
• Education and Vocational Training, Health, Water
  Supply and Sanitation, Access to Justice Law
  and Order, Agriculture and Livestock extension
  services, Research and Development
• 100 thousand jobs on an annual basis through
  public sector development programme spending
• 875 thousand new jobs through expansion of the
  private sector

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ECONOMIC GROWTH REQUIREMENTS

• Creating one million new jobs per year would
  require Punjabs GDP to grow at an annual rate of
  6 to 7.
• In the decade 1991 to 2002 average growth rate of
  Punjab GDP was 4.2 per annum.
• This jump in GDP would require a paradigm shift
  in public policy framework and resource
  management systems.

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COMPOSITION OF GDPPUNJAB
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TARGET GROWTH RATE OF GDPPUNJAB
Source PER
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PSDP PROJECTIONS FOR MTBFYEARS 2005-6 TO 2007-8
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MEDIUM TERM POLICY FRAMEWORK FOR THE PSDP
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SOCIAL SECTORS

• Education, health and water supply / sanitation
  in Punjab suffer from inadequate coverages.
• These are devolved subjects and there are large
  gaps between the existing levels of coverage and
  the targets (Millennium Development Goals and
  PRSP).
• Devolved spending is still lagging behind the
  levels required for bridging the large gaps in
  service delivery.
• Need for adequate accelerated funding to meet
  policy priorities as well as national and
  international obligations as set forth in Punjab
  PRSP, the national PRSP as well as the MDGs.

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SOCIAL SECTORS

• Additional resources into social sectors through
  programmes such as PERSP, CMs APSD, PFIS and a
  comprehensive Health Sector Reform Programme.
• Ownership of the programmes needs to be clearly
  established.
• Medium term strategy development by departments
  to achieve targets (determination of gaps,
  setting of priorities and standards).
• Communication of guidelines based on policy to
  all local governments / partners.
• Development of monitoring and regulatory
  mechanisms by the departments to address issues
  of quality, equity, sustainability etc. in the
  delivery of services.
• Capacity building and financial support to the
  local governments.

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Poverty Focused Investment Strategy Context

• Punjabs commitment to poverty reduction MDGs /
  Chief Ministers Vision 2020 / PRSP/ Punjab
  Economic Report
• Objective Translating Punjabs commitment to
  poverty reduction into action through focused,
  outcome targeting
• Pro poor planning
• Identifying core program for poverty reduction
  preferred, protected
• Medium term budgeting within long term vision
• Focused, outcome targeting

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PFIS for Key Sectors

• Education and Literacy
• Making Sustainable Improvements in Access and
  Quality of Learning through Sector Reforms and
  Involvement of Non-State Players
• Health
• Targeting MDGs through improved Primary Health
  Care, better planning, staffing and PPPs
• Water supply and sanitation
• Improving Access to Safe Water and Basic
  Sanitation through enabling environment for
  better devolved service delivery
• Housing and Urban Development
• Improving access to housing for the poor through
  upgrading slums and by enabling market-led urban
  development
• Small and medium enterprises (PSIC)
• Targeting Poverty Reduction and Employment
  Generation through reducing cost of doing
  business for SMEs and other targeted
  interventions
• Livestock and dairy development
• Generating Employment and Income through
  state-supported and market-led sector growth

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Irrigation Sector

• The major thrust in the sector is on
• Consolidation, rehabilitation and modernisation
  of existing infrastructure with a view to
  bringing about a tangible improvement in the
  delivery of services.
• Continuation and deepening of the institutional
  and organizational reforms that are already
  underway in the Irrigation and Power Department.
• Improving water efficiencies.
• Development of Hydel potential of the Province.

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Roads Sector

• Emphasis on
• Rehabilitation and consolidation of the existing
  road network.
• Additions to the network to serve the
  requirements of growing rural and urban markets.
• Policy and plan for the road network expansion
  for the medium term i.e. three to five years.
• Chief Ministers Infrastructure Development
  Programme objective to provide every village
  with access to a metalled road.

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Urban Services Improvement

• Municipal infrastructure is under stress in the
  bigger cities due to increase in population.
• Intermediate towns also face expanding
  requirements for new infrastructure and the
  rapidly rising maintenance and operation costs of
  the existing civic facilities.
• There is urgent need to develop institutional
  arrangements for policy and strategic planning in
  mega cities as well as intermediate towns.
• The institutional arrangements need to address
• Ability to undertake planning and developing
  uniform standard of services, allocation of
  resources etc.
• Planning for intermediate towns.
• Implementation of cross-jurisdictional projects
  (water supply schemes etc.).
• Induction of private sector into urban services.

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Agriculture Sector

• Agriculture has a pivotal role in the provincial
  economy. The major constraints are -
• Low Productivity
• Inadequate research and extension
• Insufficient water availability and low use
  efficiency
• Poor marketing infrastructure
• Frequent Pest Outbreaks
• Limited mechanisation

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Agriculture Sector

• The thrust in the sector is on
• Raising the level and efficacy of public
  expenditures in research and extension.
• Modernizing wholesale markets.
• Benefiting from innovation.
• Major initiatives proposed include
• Crash programme for improvement of all canal
  irrigated water courses.
• Strengthening of research and extension.
• Production of high value crops.
• Support to private sector.
• Quantitative and qualitative improvements in
  livestock production.

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Industrial Development

• The focus is on
• Promoting private sector growth through
  improvements in business environment and
  development of PPPs.
• Public sector to focus on Small and Medium Scale
  Enterprises with the objective of
• Upgrading and providing infrastructure.
• Meeting credit requirements and reducing
  compliance costs.
• Supporting upgradation of technology, labour
  productivity, and management systems etc.

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TECHNICAL VOCATIONAL TRAINING AUTHORITY (TEVTA)

• FOCUS ON
• Re-organization and re-structuring, present
  system of Technical Vocational Education with
  better management of on-going programmes.
• Demand driven technical education and upgradation
  of teaching abilities of teaching staff.
• Introduction of new technologies and skills
  through short courses for generating employment
  opportunities in small and medium scale
  industries.
• Establishing international linkages in curriculum
  development and improving academic courses for
  B.Tech, B.Com, M.Com. etc.
• Improvement in training system to ensure
  horizontal and vertical mobility.

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INFORMATION TECHNOLOGY

• The thrust is on
• Making the Province center of Information
  Technology of the Country.
• Creation of e-Government environment in the
  Province.
• Human Resource Development through training of
  skills for Government employees.
• Improving governance through reengineering of
  business processes.
• Creating efficient data bases and better
  information based decision making.

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ENVIRONMENTAL PLANNING

• EMPHASIS ON
• Developing Punjab Conservation Strategy.
• Formulation of three years action plan in
  following
• Ambient air improvement.
• Quality of rural drinking water.
• Eco-system.
• Setting up of Chief Ministers Green Programme