We argue that Pakistan is unlikely to change its human development ranking and bring it closer to its ranking in per-capita GDP until it copes with it's low achievement in basic schooling. This paper draws on the experience of private sector and NGO schools to identify lessons for the government sector, the main provider of basic education. In a principal-agent framework, we compare the institutional effectiveness of rural primary schooling delivery of the government with the NGO and private sectors. Our main findings are that the NGO schools were the most successful in many respects and that "good management" and/or "good leadership" are the key ingredient for sound schooling. Further, if meaningful "participation" is to be achieved in government schools, the power relations between administrators, teachers, and parents need to be addressed.
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