RASTA Local Research, Local Solutions: Social Sector Development, Volume IV

Edited by Nadeem Ul Haque and Faheem Jehangir Khan

in PIDE Books from Pakistan Institute of Development Economics

Abstract: Successive governments in Balochistan have failed to streamline the Public Sector Development Programme (PSDP) despite repeated directions from the High Court and Supreme Court to plan it effectively. This study discusses how political clientelism influences the process of PSDP by diverting scarce resources to create incentives for powerful political actors to keep the public dependent and poor. As a result, it feeds extreme levels of exploitation and corruption in Balochistan. An analysis of the disbursement of PSDP in the 10 districts in the last ten years clearly shows that some districts with more population and area receive fewer funds as compared to less populated and smaller districts. To uncover this inefficiency, this paper formulates a mathematical model that estimates the amount to be allocated to each district, where the amount to be allocated to each district is a function of total PSDP, the weights of the population, and the area of that district. Then to further prioritise the projects of any department a performance matrix is developed. The matrix ranks the public sector development projects. The criteria used in the matrix are the themes obtained from the interviews and focus group discussions with the personnel of relevant departments. This study suggests that a single approach to budgeting would make it difficult for the government. The government must use a formulaic approach along with a participatory approach for effective PSDP allocation in the clientelistic environment of Balochistan.

Keywords: RASTA Local Research; Local Solutions; Social Sector Development; Volume IV (search for similar items in EconPapers)
Date: 2022 Written 2022 Originally published 2022.
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