Public expenditure allocation in Africa :an exploratory analysis
Author(s)/Corporate Author (s)Ali, A.A.G.;
United Nations. Economic Commission for Africa. Economic and Social Policy Division;
MetadataShow full item record
The International Development Goals (IDGs) for 2015 endorsed by the international development community cover a range of economic and social areas, including poverty reduction, improved access to health and education, movement towards gender equality, environmental sustain ability and good governance. These goals provide a useful benchmark against which to measure development efforts and progress. Increasingly, they are expected to influence policy making in developing countries including issues related to the management of public resources. The issue of public expenditure reallocation is justified on grounds that it serves the objectives of both equity and efficiency at the same time. There is no inherent trade-off, as may be the case in other instances, between the two considerations of public expenditure policy. This paper is organized in five sections. Section II outlines the theoretical framework for reallocating public expenditure and develops the optimal allocation rule. The theoretical framework posits poverty reduction as the objective function for the government which is optimized subject to its expenditure constraint. As a result, and in order to apply the framework, section III reviews the latest results on poverty in Africa while section IV looks very briefly at public expenditure. Following these, section V reports the results of applying the optimal allocation rules for the case of education. Section (VI) is conclusion.