Presented on February 10th, 2013 at the Second Research Competitive Grants Conference in Islamabad, Pakistan.

1. Integrating Rural Urban Linkages
for Regional Development in the
Province of Sind:
A Cluster Based Approach
by
Noman Saeed
Applied Economics Research Centre, University of Karachi

2. Outline of the presentation
• Objectives of the study
• Redefinition of scope of work
• Conclusions from a Review of the literature and
lessons learnt
• Methodology
• Sample Selection
• Design of Quantitative survey
• List of Expert interviews for the Qualitative analysis
• Questions for the Qualitative interviews

3. Rationale
It has been recognized that rural urban linkages can play an
important role in the economic development of countries and
regions.
Many countries are now following different development
policies. The dichotomous rural vs urban approach has been
replaced by an integrated development approach which is
based on development of secondary cities small cities and
towns and rural areas.
The focus of such policies has been to reinforce the backward
and forward linkages between agricultural production,
industry and services to strengthen local and regional
economies.

4. Objectives of the Study
• Undertake a review of the literature and identify best practice
and policies for development of regions in other countries
and explore their relevance to Pakistan and Sindh;
• Identify the reasons for growth of the cluster in terms of its
economic structure and of competitiveness;
• Identify the types of rural urban linkages that exist in the
cluster and suggest ways these can be integrated;
• Assess how the public sector can contribute to the overall
growth of the clusters and Identify areas of public policy
interventions for growth and development of the cluster;

5. Redefined scope of work
The study was to be originally undertaken in 3
different clusters of the province but after the
revision of the budget the Northern cluster is
selected for analysis.

6. Scope of Work
Growth Centres Sukkur Larkana
Small Cities Pano Aqil Kamber
Rural Areas Chungha Village Khairpur Juso
Village Hussain Kalwar Bahir Sharif

7. Scope of Work
• Develop a secondary database for the cluster
• Survey of 110 units for Quantitative data
collection
• Conduct 64 Qualitative interviews

8. Economic Activities in Cluster-
main crops grown
S. No. Larkana Sukkur
1. Rice Rice
2. Wheat Wheat
3. Sugarcane Rape Seed and Mustard
4. Line Seed Barley
5. Safflower Masoor
6. Barley Safflower
7. Rape and Mustard Cotton
8. Masoor
9. Mattar
10. Onion

9. Economic Activities in Cluster-
industry
S. Industry S. Industry
No. No.
1. Cotton Textiles 7. Hand Pumps
2. Tobacco 8. Lock Making
3. Cigarettes 9. Rice Husking
4. Paint & Varnish .10 Biscuit Factories
5. Pharmaceuticals 11. Confectionery
6. Agricultural Implements 12. Oil Mills

10. Literature- definition of rural-
urban linkages
“Rural-Urban linkages” refers to the flow of
(public and private) capital, people (migration,
commuting) and goods (trade) between rural
and urban areas- added to these economic
flows are ideas, innovation and information.

11. Review of Literature
Literature covers demographic, economic, and political
aspects of rural- urban linkages
• Many studies analyze the migration of people from the rural
areas to the urban areas (and back) and the flow of goods,
ideas and money that occurs in the opposite direction as
result of the migration.
• A second category of studies deals with economic links
between rural and urban areas, the extent to which economic
development in the one area benefits or obstructs economic
development in the other area, and the policy measures
necessary to develop a mutually beneficial relationship.
• A third category of studies deals with the political aspect of
rural-urban linkages and the imbalance of power between the
two areas.

12. Some conclusions from the
Literature
• Rural areas that are poorly connected to
urban areas lack the capacity to compete in
the regional, national, and international
markets and are less developed. They lack
proper information and signals to produce,
invest, raise productivity, diversify production,
and engage in new activities.

13. Conclusions from literature
• Small towns also suffer from weak financial
base for physical, economic and social
development. Without specific industrial
linkages to agriculture, they tend to have
limited production and manufacturing
activities, which constrain employment and
income generation options.

14. Lessons Learnt from literature
• Develop public infrastructure and services in the rural and
urban areas since this will impact on the movements of goods
and people.
• Strengthen institutional framework and capacities of local
Governments
• Improve financial and information flows
• Create business networks for local and regional economic
development

15. Methodology
• Ideally rural urban linkages can be analyzed using more
sophisticated approaches e.g input output models or value
chain analysis for goods flow that determine the direct and
indirect effects of such relationships
• Here a case study approach will be used with the target
population in the selected cluster
• A sample will be drawn from the large cities secondary cities
and rural areas to determine the nature of such linkages in
Sindh
• Fact finding instruments used in the study will include
secondary data, questionnaires, and expert interviews

16. Sources of Secondary Data
S. Data Source Latest Information Available Shortcoming
No Issue
.
1. Census of Manufacturing 2005 – 06 CMI measures production and structural Information related to
Industries (CMI) changes of large-scale manufacturing industries Small and Medium
(LSMI). It provides data on values of inputs and Enterprises (SMEs) not
outputs, census value added, contribution to covered.
GDP, fixed assets, stocks, employment and
(Using micro level data
employment cost and industrial taxes.
district level industries
and employment status
will be extracted)
2. Labor Force Statistics (LFS) 2010 - 11 LFS provides information on Literacy, Level of Aggregate Data is
Education, Employment Status by industry and available. Disaggregated
occupation, Employment Status of informal data is available for
Sector, Age specific Labor force Participation provincial governments
Rate, Employed Migrants with employment only. Micro data is
Status, Reasons for Migration, Occupational available on request and
Safety and Health, Wages, Hours worked in a on Payment but took
week procedural delays.
(Using micro level data
district level employment
status by industry and by
type of activity will be
extracted)

17. Sources of Secondary Data
S. Data Source Latest Information Available Shortcoming
No. Issue
3. Agriculture Statistics of 2008 – 09 Provides information on Area, Production, Yield Aggregate Data is
Pakistan of Important Major and Minor Crops, Land use available. Disaggregated
and Area Irrigated by sources, Agriculture data is available for
Inputs, Agriculture Credit, Mechanization of provincial governments
Agriculture, Live stock, Fisheries, Forestry, only
Trade, Prices and support procurement prices
(Using micro level data
of Agricultural Commodities.
district level information
and employment status
will be extracted)
4. Pakistan Statistical Year Book 2011 Provides details on Agriculture, Balance of Aggregate Data is
Payments, Climate, Development & Planning, available. Disaggregated
Education, Energy and Mining, Foreign data is available for
Economic Assistance, Foreign Trade, Health provincial governments
Insurance & Capital Markets, Labor, only
Manufacturing, Money and Credit, National
Accounts, Population, Prices, Public Finance,
Social and Culture and Transport &
Communication
5. Economic Survey 2010 - Provide information on Growth & Investment, Aggregate Data is
2011 Agriculture, Manufacturing, Fiscal available. Disaggregated
Development, Money & Credit, Capital Markets, data is available for
Inflation, Trade and Payments, External and provincial governments
Domestic Debts, Education, Health, Population, only
Labor Force & Employment, Poverty, Transport
& Communication, Energy and Environment

18. Sources of Secondary Data

19. Sample for Quantitative Data Collection Sukkur Larkana
Clusters North
Secondary cities growth centres 1 1 2
Small cities 1 1 2
Rural areas 2 2 4
Quantitative Sample
Industrial Units large/medium/small 29 16 45
Textile 4 1 5
Rice Husking 6 3 9
Cotton Ginning 6 3 9
Flour Mills 5 3 9
Edible Oil Mills 4 2 6
Food & Food Products 4 2 7
Agriculture 26 14 40
Small Farms (Less than 5 Acres) 8 4 12
Medium Farms (5 Acres to 12 Acres) 16 8 24
Large Farms (More than 12 Acres) 2 2 4
Service Sector 16 9 25
Transport 6 4 10
Technical & Vocational Centers 4 2 6
2 1 3
Professional Degree Awarding Institute
Hotels 2 1 3
Travel Agents 2 1 3
Qualitative Sample
21 12
Key Informant Interviews – In-depth 33
16 9
Private sector 25
5 3
Public sector 08

20. Questionnaire Design
Questionnaire will cover the following modules:
• Module A: General
This module will consist of general information and will include unit
identification, size, sector, type and date of commencement of operation.
• Module B: Endowment of Natural Resources
The module will gather information on the existing sources of raw
material and other inputs, proximity to raw material, cost of local raw
material compared to import of raw material
• Module C: Endowment of Human Resources
The module will include questions on the availability of skilled labor,
education and training facilities, industry knowledge development, and
support for Research and Development.
• Module D: Infrastructure
This module collects information on quality of infrastructure services,
transport, telecommunication, utilities, Public development Projects

21. Questionnaire Design
• Module E: Dynamics of Local Economy
The module will gather information on potential to add value to products and
services, cost of doing business, responsiveness to change and innovations
business awareness of potential, public private partnerships
• Module F: Responsiveness and support of Government
The module will gather information on responsiveness and support of government
to business needs in expanding domestic and local markets, expanding export
markets, enforcement of business regulations.
• Module G: Quality of life
The module will gather information on quality of life of the workforce, proximity to
markets and other utility services presence of networks, public development
projects
• Module H: Competitive Advantage
This module will collect information on the competitive advantage
• Module I: Presence of Backward and Forward Linkages
This module include questions on the backward and forward linkages

22. Expert Interviews
Data will also be collected by conducting in depth
interviews with expets such as:
• Head of Industrial Association
• SMEs Associations and Trade Bodies
• Representative of Chamber of Commerce
• Representative of SITE
• Investors
• EDO Education
• EDO Revenue
• EDO Finance & Planning
• EDO Works and Services
• EDO Community Development

23. Questions for Qualitative Interview
• What are the comparative advantages of the region and why the industry
is located here
• Who are the suppliers of the industry and where are they located what
are the advantages of proximity to them;
• Who are the consumers of the products and where are they located and
how they have changed over time;
• Access to diverse pool of resources of skilled labour;
• Alignment of skill base production base;
• Ways in which the business interact with regional firms, partners, trade
associations universities and what can be the points of collaboration
between them;
• What important regional issues are important to be addressed for the
development of the sector and cluster
• How the cluster is impacted by technology international economy;
• How can the government facilitate the private sector

24. Time line for the Study
Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13
ACTIVITIES WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK WEEK
3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Pre-Testing of
Questionnaire and
Printing
Recruitment of
Enumerator and
Training
Survey Logistical
Arrangement
Survey Scheduling
Fieldwork/Data
Collection
Coding and Back-
Checking
Data Entry and
Processing
Data Analysis
Report Writing and
Submission

25. Thank you for your attention