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Impact Of Poor Governance And Income Inequality On Poverty In Pakistan

1657 words - 7 pages

Chaudhry et al. (2006) linked urban poverty with the idea of good governance. They used primary data source and inferred that people in the weakest state and extremely deplorable condition tend to become most abandoned and helpless in the presence of poor governance, because they are extremely powerless in controlling decisions that influence their lives. They also proposed that urban poverty can be mitigated at the level of city by way of good governance in demographic and socio-economic factors and infrastructure. Pasha (2000) determined nine components of “good economic governance” as achieving “fiscal discipline”, “growth with equity”, “institutional capacity”, “protection of public interest”, “credibility and consistency”, “capacity to manage crisis”, “effective delivery of services”, “integrity and sovereignty” and indicated that economic performance of Pakistan on the basis of measures of good economic governance, was a mixture signifying deterioration and downfall in 1990s. He recommended that economic management and governance in Pakistan has to be excellent if Pakistan has to achieve above average economic growth and reduced poverty levels. Sumarto, Suryahadi and Arifianto (2004) empirically examined the impact of bad governance on poverty alleviation in Indonesia. Their study showed that the poor are thoroughly affected by bad governance and it sabotages the efforts made to decrease poverty. They found evidence on the impact of poor governance on poverty alleviation and showed that poverty reduction was faster in areas that exercise better and improved governance. Anwar (2006) is of the view that had the governance indicators improved in Pakistan, the reduction in poverty would have been much faster; and proposed that there is a need to pursue governance reform process more rigorously along with its effective monitoring and evaluation to improve the governance indicators, which would increase the rate of reduction of poverty. Sobhan (1998) is of the view that persistence of poverty originates less in the lack of resources for its alleviation than in the failures of governance. Foreign aid has been ineffective in alleviation of poverty in Bangladesh not because of lack of resources but due to waste, mis-targeting, corruption and inefficient delivery of government services.
Panandiker (2000) argued that economic structures and framework of governance in South Asia are mainly accountable for the permanence in poverty. His study confirms that the poverty alleviation ability of economic growth is hampered by the South Asian economic framework. The study suggests that the kind of governance at present being exercised in South Asia impedes equitable distribution of resources and reformatory economic policy actions (such as expansion of the tax base, a strong reduction in government expenditures which are non productive and recovery of bad loans), that are essential for the stability and growth of economy and poverty reduction.

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