Regional Disparity and Decentralization in Pakistan: A Decomposition Analysis

The main objective of the study is to analyze the changing trends of social (education and health) inequalities before and after decentralization at the inter-regional and intra-regional level in Pakistan from 2005 to 2015. Coefficient of variation and decomposition of Theil inequality index are used to evaluate the spatial dimensions of inequality at the provincial and rural-urban level. Results of CV indicate high disparity in the education and health sectors at both inter-provincial and intra-regional level. Decomposition of education inequality indicates improvement at provincial level. Rural population has high education inequality than urban. Results of Theil index predict that health inequality has narrowed in the women health in the period of decentralization. Disparity level of child health shows the existence of inequality at both the provincial and rural-urban levels. This situation even persists in the decentralization period. Although the situation of Diarrhoea treatment has improved at the provincial level but there are stark differences in the inequality level of rural and urban population. Within and between group inequality at the provincial and rural-urban level indicates a stable and decline in education and health inequality. Decentralization has slightly improved the situation in both areas, however, such economic and social policies should be adapted which helps to eliminate the issue of regional inequality and develop the lagging areas.