MIMAP Synthesis Report: Major Conclusions and Policy Implications

Abstract

Despite the imperfections and complications in the evaluative procedures, the effects of SAP have been assessed in many developing countries. Research carried out by the PIDE-based project “Micro Impact of Macro Adjustment Policies” (MIMAP)1 is a pioneering venture that assesses the impact of various versions of SAP implemented by Pakistan since the mid-1980s. The general objective of the MIMAP project has been to facilitate the formulation of policies aimed at growth and improved welfare levels particularly of vulnerable groups, in Pakistan. The three specific objectives include: (1) To highlight and quantify the impact of macroeconomic and adjustment policies on poverty levels thereby yielding policy relevant insights; (2) To achieve the above specific objective through the use of sample household survey, the use of existing secondary socio-economic data sources, and the development of a micro-macro modelling exercise; and (3) To disseminate the project’s results within the country and to other MIMAP groups through technical publications, policy papers and seminars. In order to operationalise these objectives, the project was divided into two integrated but stand-alone components: poverty monitoring and modeling. Under the poverty-mentoring component, a nationally representative survey was carried out, while the modeling component was designed to develop Social Accounting Matrix (SAM) and Computable General Equilibrium Models (CGE). During the first phase of the Pakistan MIMAP project in total 13 studies were completed. The present study brings out major conclusions and policy implications based on these studies. It also sets out future direction for research. The sample design of the household survey and its socio-economic and demographic characteristics are discussed in Section II, where a comparison has also been made with the results of the 1998-99 Pakistan Integrated Household survey. Four research studies representing first round of analysis of the MIMAP data set are briefly summarised in Section III. Findings of five studies covering SAM and CGE models are discussed in Section IV, followed by presentation of findings of other three studies in Section V. The next section contains some suggestions for extension of research and modeling efforts to realise the objectives of ongoing MIMAP project. Conclusions and policy implications are presented in the last two section of the report