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Old Friday, April 05, 2013
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Raising aspirations

Shahid Khalil


Poverty is like a disease which besides treatment needs the commitment and the determination of the individual to get rid of it. We have to take measures to raise the aspirations of the poor to motivate them to wriggle out of poverty.

Security is a perennial concern in Pakistan. Insecurity and violence have been shown to lower economic prosperity, and may have adverse consequences for aspiration levels. It is highly improbable that one moves out of poverty without aspiring to do so.

Understanding what leads rural Pakistanis to aspire or fail to aspire is especially important given that Pakistan has an extremely young population that will need to find employment in the coming years For rural populations highly dependent on agriculture, the consequences of high fertility include increasingly smaller average farm sizes, as family land assets become further divided. As Pakistan's working-age population grows, it is vitally important to understand what drives individuals to aspire to improve their outcomes and invest in their future.

A recent report by the Internal Food Policy Research Institute reveals that very large numbers of rural Pakistanis feel they lack access to basic services and institutions that might influence aspirations. These include security, justice, and social safety nets, among others. Further, women and the poor feel they have even less access to these services than do men and the better-off. Most respondents also live in communities lacking important infrastructure that has been shown in other contexts to boost economic growth. Individuals also generally feel that they have little control over what happens in their lives.

The report has additionally identified characteristics that predict aspirations levels: women have lower aspirations than men; the uneducated have lower aspirations than those with some education; the middle-aged (25-45) have lower aspirations than the young (age 18-25); and agricultural wage labourers have lower aspirations than rural non-farm workers.

Further, various internal factors are strongly correlated with aspiration levels, including an internal locus of control, high self esteem, religiosity, trust, envy, and a sense of poverty being due to external factors. This suggests some particular groups that are most at risk for aspiration failures, and that might be specifically targeted by policies aimed at raising aspirations.

This report has also identified a number of potential policy levers associated with higher aspirations in rural Pakistan: holding organized meetings of village residents, improving the justice system, upgrading road surfaces (from mud to other types), expanding communication and transport links with other localities, and providing training of some type through NGOs. This is suggestive evidence that good policy can create and cultivate the institutional conditions that permit and encourage individuals to aspire. The report additionally investigates some of the possible economic decisions that may be affected by aspirations, and finds that higher aspirations are associated with higher crop yields, less pre- and post-harvest loss, more savings, more cash loans (likely indicating greater access to and use of credit), and a greater propensity to operate a nonagricultural enterprise.

The aspirations of Pakistanis are also at an especially critical juncture given the country's deteriorating security situation, two major floods in the last 2.5 years, and an increasing likelihood of such extreme weather events due to climate change. The recent flooding has only heightened perennial concerns in Pakistan about a lack of basic necessities such as education, health, security, mobility, and access to information. Without these basic necessities, aspiration levels may be exceptionally low. It is critically important to understand what policies raise aspirations, and which can ensure that aspiration levels remain high. With this knowledge, resources can be targeted to leverage individuals' desires for a better life to improve actual outcomes for rural Pakistanis.

Corruption and a poor justice system have also been shown to lower economic growth and may similarly have adverse consequences for aspiration levels.
Thus, a sufficient condition for the perpetuation of poverty is a general failure of the poor to aspire. Aspirations may relate to income, wealth, educational attainment, social status, or any other area one considers important. When an individual's aspirations are high relative to the average level in his district, his aspiration level is considered to be high. Conversely, when an individual's aspirations are low relative to the average level in his district, his aspiration level is considered to be low. Understanding what leads to high or low aspirations among the poor, and understanding how aspirations (as well as certain cognitive biases that help determine them) affect behavior provides useful information for effective, pro-poor policy formulation.

Exposure to media and information can provide important knowledge that helps increase productivity and improve rural livelihoods. For example, people can learn about prices, commodity demand, weather expectations, job, or farming techniques. This information can make them more productive and better able to adapt to changing conditions. Second, people can learn about the standards of living of similar people in different cities. This might inspire them to work harder in order to achieve a better life, and can even promote migration. In both of these ways, exposure to media and information has the potential to positively impact aspiration levels.

Parents are one of the most important influences on their children and can serve as role models, mentors, and support systems. As such, parents are likely to be at the center of one's aspirations window. Individuals whose parents have significant levels of achievement may be relatively more likely to have high aspirations. Conversely, low parental achievements may anchor an individual's aspirations at low levels. We collected data on an important aspect of parental achievement: the highest level of education obtained by each parent.

Another important aspect of an individual's aspirations window is the set of neighbors, friends, and acquaintances with whom he/she is likely to interact. With more interactions, an individual is more likely to encounter a person with very high aspirations. An important factor conditioning the number of people with whom an individual interacts is her perceived degree of mobility. Mobile individuals who feel the confidence and freedom to leave their village will likely meet more people with high aspirations.

Locus of control is a psychological concept measuring "a generalized attitude, belief, or expectancy regarding the nature of the causal relationship between one's own behaviour and its consequence," and it is likely to influence an individual's behaviours and productive investments. Individuals with a strong internal locus of control believe that outcomes in their life are due to their own actions and effort, while those with a strong external locus of control have a more fatalistic view of the world.

Closely linked to an individual's locus of control is his/her perception of the causes of poverty. Poverty may be associated with a fatalistic worldview. If poor individuals believe they are poor for reasons beyond their control, then they may not be motivated to make costly but ultimately beneficial investments to reduce their own poverty.

Attitudes to change have sizeable linkages with poverty; adaptability and eagerness to learn new techniques can lead directly to greater resilience and productivity.

The impact of self-esteem on behaviour is a subject of great interest to social psychologists. Self-esteem may also have beneficial economic impact if it leads to more investment in education, harder work, more ambition, higher aspirations, and more efficient collaboration with others.

Envy may consume energy and prevent beneficial cooperation and collaboration with others. Religiosity has been blamed for extremism and violence. However, it can also be associated with acts of generosity and with pious behaviour. Understanding the climate of religiosity in an area can be important for designing policies that approximate to the worldviews and preconceptions of the people. Higher aspiration levels are also associated with higher savings and use of credit (normalized as a share of expenditures) and a greater likelihood of operating a non-agricultural enterprise.

http://www.weeklycuttingedge.com/front%20story01.htm
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