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Impact of Structural Adjustment Programmes on Overall Social Welfare in Pakistan

Author

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  • Nina Gera

    (Nina Gera is Assistant Professor, Department of Economics, Lahore School of Economics, 105 C 2 Gulberg III, Lahore Pakistan. Email: nina@lahoreschool.edu.pk)

Abstract

This article discusses the impact of structural adjustment on poverty and inequality and overall social welfare in Pakistan over the adjustment decade (1988–99) based on household surveys. It provides an indepth analysis of poverty during the adjustment decade as well as an account of structural adjustment programmes and macro-economic policies. The article argues that adjustment programmes have been flawed by a lack of distributional analysis and by poor sequencing of reforms, notably premature financial liberalization. The conditionality of reduction of the budget deficit has led to expenditure cuts which have adversely affected the poorer sections of society. The findings show that since the 1988 bout of structural adjustment, public sector employment decreased while wages were frozen. Also, overall unemployment in occupations with a high incidence of poverty has increased and the real wages of both skilled and unskilled labour fell sharply. Overall, the likely impact of structural adjustment policies on labour and the poor presents a bleak scenario.

Suggested Citation

  • Nina Gera, 2007. "Impact of Structural Adjustment Programmes on Overall Social Welfare in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 8(1), pages 39-64, January.
    • Handle: RePEc:sae:soueco:v:8:y:2007:i:1:p:39-64
    DOI: 10.1177/139156140600800103
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    References listed on IDEAS

    as
    1. Shahrukh Rafi Khan, 1999. "Do World Bank and IMF Policies Work?," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-37325-9, December.
    2. Summers, Lawrence H & Pritchett, Lant H, 1993. "The Structural-Adjustment Debate," American Economic Review, American Economic Association, vol. 83(2), pages 383-389, May.
    3. International Monetary Fund, 2004. "Pakistan: Poverty Reduction Strategy Paper," IMF Staff Country Reports 2004/024, International Monetary Fund.
    4. Haroon Jamal, 2003. "Poverty and Inequality during the Adjustment Decade: Empirical Findings from Household Surveys," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(2), pages 125-135.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    JEL: I31; JEL: I32; JEL: I38; Structural Adjustment Programme; Poverty; Social Welfare; Development; Population;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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