THE POLITICAL ECONOMY OF TECHNOLOGY CHOICE CONSTRUCTION AND MATERIALS PRODUCTION IN PAKISTAN VOL.A by FAROKH AFSHAR A.A. Dip. Architectural Association, School of Architecture (1973) SUBMITTED IN PARTIAL FULLFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN URBAN AND REGIONAL PLANNING at the MASSACHUSETTS INSTITUTE OF TECHNOLOGY October, 1985 0c Farokh Afshar 1985 The, author hereby grants to M.I.T. permission to reproduce and to distribute copies of this thesis document in whole or in part. Signature of Author. - Depa nent pf UrbanJitudies and Planning "/-) / (,- ) ( ctober, 1985 ' V Certified by 4 ------------ - A' % \1 Dr. Alan Strout Th Is Supervisor Accepted by Professor Lawrence Susskind Chairperson, Ph.D. Committee MASSACHUSETTS INSTITUTE OF TECHNOLOGY Rot&h MAR 2 6 1986 LIBRARIES THE POLITICAL ECONOHY OF TECHNOLOGY CHOICE: Construction and Haterial. Production in Pakistan by Farokh Afshar Submitted to the Department of Urban Studies and Planning in October, 1985 in partial fulfillment of the requirements for the Degree of Doctor of Philosophy in Urban and Regional Planning ABSTRACT For decades, advocates of equity-oriented development have urged the use of low-cost, labour-intensive, local resource- using (indigenous) technologies. Successive development approaches - from Village-Aid of the fifties, to the more recent "basic needs" - have each had their appropriate technology components. "Appropriate technologists" have designed an impressive array of such technologies. Yet Third World governments have consistently preferred expensive, import-intensive technologies. Why is this so? From a study of Pakistan, the thesis argues that social, economic, and institutional factors and the interests underlying them, often naturally lead to the selection of import-intensive technologies over indigenous ones. These factors include unequal income distribution patterns, import- substitution policies, and heavy investment in large-scale construction. The preferences of upper-income groups, conditions in large cities and in centralised construction agencies also favour import-intensive technologies. Furthermore, the belief that indigenous technologies are economically inefficient and otherwise "backward' is widespread, deep rooted and seldom effectively challenged. Also lacking is a simple yet rigorous methodology to evaluate alternative technologies especially those practiced in the small-scale, informal sector, where much construction and materials production takes place. Advocates of indigenous technologies have a twofold task. First, to demonstrate that such technologies are not inherently backward or inefficient, relative to import- intensive ones. Second, to design indigenous technology- promoting programs that use the leverage in competing objectives and interests to influence technology choice. The study is based on 100 cases and interviews as well as on secondary data. The main construction and materials production processes practiced in Pakistan are considered. Detailed case-studies are drawn from a largely rural district. People interviewed included government officials, community leaders, materials entrepreneurs, builders, and house owners. The thesis develops a simple computer model, based on cash flow and cost-benefit techniques, to evaluate construction and materials production processes. This "technology evaluation model" assesses alternatives against a range of both equity and efficiency criteria. Some typical construction and materials production technologies are analysed in detail. The results suggest that indigenous technologies can be both more equitable and efficient. For example, even with their heavier maintenance considered, projects using the indigenous technology can cost only sixty percent of the import-intensive alternative. Ninety-seven percent of the investment in construction using indigenous technologies remains in the district to create jobs whereas half of the investment in import-intensive contruction is leaked out of the district. Profits are lower in the import-intensive production processes. Furthermore, construction projects using indigenous technologies offer more scope for community participation and for strengthening local institutions. A program to develop indigenous processes in Pakistan should be routed through the social sector instead of the housing and physical infrastructure sector, through small towns and rural areas instead of the big cities, and through the 1o c a 1 government instead of centralised construction agencies. The social sector funds more building construction than any other sector. Construction is a major activity of 1o c a 1 government in the small towns and rural areas. The pressures to select import-intensive technologies are generally weaker in such areas and in the local government structure than they are in large cities and in the centralised construction agencies. Not least the central government and the local elite would benefit and should hence support such a program. To encourage appropriate technology choices at the 1o c a 1 level, certain specific incentives would be needed such a s letting cost savings accrue to the local government. The program must be designed to encourage "learning by doing." Most important, the program should make indigenous technologies a natural preference of decision makers rather than rely on futile appeals or short-lived impositions. Thesis Supervisor: Dr. Alan Strout Senior Lecturer, Dept. of Urban Studies and Planning iiI ACKNOWLEDGEMENTS This dissertation continues an interest sparked in £968 when I was first struck by the contrast between the technological ingenuity of the poor and their apparent inability to raise themselves from their poverty. It is thus the result of the ideas and actions of many persons who since then have helped me think about this issue: persons too numerous to mention. My greatest debt is to the many ordinary, often very poor people who taught me by letting me observe them and sharing their thoughts with me: house owners, labourers, masons, shop keepers, kiln owners, brick moulders and owners o f donkeys that carried those bricks, underpaid government workers managing projects, community leaders juggling their interests with those of the groups they represented, skilled masons deskilled by modernisation, and semi-literate entrepreneurs struggling to prosper. I cannot presume this mass of words will do them any good. I can only record my gratitude. My gratitude also to the following: To Hassan Fathy whose work illustrated both the strengths of indigenous technologies and the weaknesses in the approaches of those who champion them. To my friends and colleagues of many years in Development Workshop - Allan Cain, Mohhammad Daraie, and John Norton - with whom in discussion and practice, many of my earlier ideas were sharpened. To my teachers of socialist and neo-classical perspectives, who were so convincing that, despite my biases, I learned neither view has a monopoly on truth. This dissertation owes a lot to many in a very direct sense. First, to His Highness Prince Karim Aga Khan whose generosity helped fund the research. I hope the ideas in this study can be useful to his many worthwhile projects. To my friends in Lahore, to name a few: Parvez Qureshi, Kalim Siddiqui, and Raza Ali who helped in many ways both material and intellectual. To my research assistants, the three Amirs, and Shahid Ahmed who undertook their tasks with diligence, competence, and enthusiasm. To the many officials in government and other organisations who gave their valuable time to talk with me and to help in the logistics of this reasearch: To name a few - Brigadier Shafi of the Aga Khan Foundation, Mr. Hamid Naqavi of the Pakistan Institute of Development Economics, Dr. Samdani iv Joint Secretary, Ministry of Housing and Works, Mr. Mujtaba Deputy Director General, Statistics Division, Mr. Bukhari of the Ministry of Local Government and Rural Development and his counterpart Hr. Asghar Ali in Sahiwal, Director General S.H. Qureshi of the Punjab Housing and Physical Planning Department, Mr. Malik Jahangir, Deputy Commissioner, Sahiwal District, Major Fyaz Bashir, Assistant Commissioner, and Khwaja Muzzafar Askari. The last three were most hospitable in providing lodgings and other assistance while I was in their district. I hope those many unamed will forgive me and accept my gratitude. I came to MIT knowing important questions still had to be addressed but unclear about what they were and how t o address them. Again those who helped were too many to name. My classmates and friends, fellow sufferers and travellers in our quest for knowledge and skills, helped me greatly with their intellectual support and camaraderie. Most recently: Alec Hansen for his invaluable, detailed comments on parts of my work; Aziz Ismail and Michael Jacobs, for stimulating discussions on it; Bizhan Azad, Joy Hecht and Steve Ervin, for helping me understand that weird and wonderful beast so essential to my work, the micro-computer. Special thanks to Rafique Keshavjee who spent the 1 a s t critical day and night before submission, helping type the final corrections. Professor Karen PolensRe, always interested and sympathetic, gave me an invaluable formal introduction to neo-classical economics while strengthening my knowledge of socialist theory and practice. Professor Ralph GaRenheimer helped me think about questions of implementation in a systematic manner. Professors David Wheeler and Raj Saah passed on some of their intuitive