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51. Explaining Leakage of Public Funds

Author:
Ritva Reinikka and Jakob Svensson
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Using panel data from an unique survey of public primary schools in Uganda we assess the degree of leakage of public funds in education. The survey data reveal that on average, during the period 1991-95, schools received only 13 percent of what the central government contributed to the schools' non-wage expenditures. The bulk of the allocated spending was either used by public officials for purposes unrelated to education or captured for private gain (leakage). Moreover we find that resource flows and leakages are endogenous to school characteristics. Rather than being passive recipients of flows from government, schools use their bargaining power vis-à-vis other parts of government to secure greater shares of funding. Resources are therefore not necessarily allocated according to the rules underlying government budget decisions, with potential equity and efficiency implications.
Topic:
Education, Government, and Human Welfare
Political Geography:
Uganda and Africa

52. On the Choice of Appropriate Development Strategy: Insights from CGE Modelling of the Mozambican Economy

Author:
Finn Tarp and Tarp Jensen Henning
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper makes use of a 1997 computable general equilibrium (CGE) model to analyse three potential strategies that Mozambique can pursue unilaterally with a view to initiating a sustainable development process. They include (i) an agriculture-first strategy, (ii) an agricultural-development led industrialization (ADLI) strategy, and (iii) a primary-sector export-oriented strategy. The ADLI strategy dominates the other development strategies since important synergy effects in aggregate welfare arise from including key agro-industry sectors into the agriculture-first development strategy. Moreover, the ADLI strategy can be designed so it has a relatively strong impact on the welfare of the poorest poverty-stricken households, and still maintain the politically sensitive factorial distribution of income.
Topic:
Agriculture, Development, and Human Welfare
Political Geography:
Africa