Is household income enough for human development or should government direct resources towards the provision of social services to improve capabilities of individuals? The former is emphasised by the World Bank, and the latter by the United Nation Development Programme (UNDP). This paper tests both sides of the question by estimating a basic needs policy model for Pakistan, using cross-district data for the year 1998-99. The results are consistent with the view that government provision of social services affects human capabilities significantly. However, the ultimate constraints on the sustainable capability development are the availability of material resources.
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Paper provided by Pakistan Institute of Development Economics in its series PIDE-Working Papers with number
2008:43.
Length: 24 pages Date of creation: 2008 Date of revision: Handle: RePEc:pid:wpaper:2008:43
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Find related papers by JEL classification: I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
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