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Federalism Reform Imperatives, Restructuring Principles and Lessons for Pakistan

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  • Anwar Shah

    (World Bank, Washington, D.C.)

Abstract

In spite of several decades of sustained growth, Pakistan remains in the company of "failed" states on account of its quality of governance. This paper presents an institutional framework for improving the quality of governance in Pakistan. This framework suggests that a major challenge facing the public sector in Pakistan is to harmonise its authorising environment and operational capacity with its mission and values. It provides a broad outline of how such a difficult task can be accomplished. The paper provides an analysis of the fiscal federalism dimensions of the authorising environment and presents directions for reform. The paper recognises various political, bureaucratic and institutional impediments that stand in the way of such reform. Finally, the paper distils lessons on institutional reform of relevance to Pakistan and other non-industrialised countries.

Suggested Citation

  • Anwar Shah, 1997. "Federalism Reform Imperatives, Restructuring Principles and Lessons for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 36(4), pages 499-536.
    • Handle: RePEc:pid:journl:v:36:y:1997:i:4:p:499-536
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    File URL: http://www.pide.org.pk/pdf/PDR/1997/Volume4/499-536.pdf
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    Cited by:

    1. Anwar Shah, 2010. "Empowering States and Provinces or Unshackling Local Governments: Does It Matter for Peace, Order, Good Government, and Growth? (The Gustav Ranis Lecture)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 333-362.
    2. Qurat ul Ain & Yan Jie & Larisa Ivașcu & Syed Ghulam Meran Shah & Tahir Yousaf, 2023. "Whether rising tide has lifted all the boats? Effect of inter‐governmental transfers on household income inequality in Pakistan," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 430-447, January.
    3. Roy Bahl & Bayar Tumennasan, 2002. "How Should Revenues From Natural Resources Be Shared?," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0214, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    4. Anwar Shah, 2012. "The 18th Constitutional Amendment: Glue or Solvent for Nation Building and Citizenship in Pakistan?," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(Special E), pages 387-424, September.

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