Impact of Public Expenditure Policies on Social Development in Sudan 1980-2009

Abstract

This study aimed at examining, from an empirical point of view, some of the indicators affecting social development of Sudan over the period (1980-2009). Time-series data on the variables of interest were collected from various sources namely, Federal Ministry of Education, Federal Ministry of Health, Federal Ministry of Finance and National Economy and Central Bureau of Statistics in Sudan. Ordinary Least Square (OLS) testing procedure was applied into three stages to examine the health index, the education index and the social development index functions. Regarding the health index, the results obtained reveal that real GDP per capita (Re) impacts positively on health index in Sudan with estimated coefficient (elasticity) significant at 1% level, whereas under-five mortality rate (M) impacts significantly at 1% level in reducing health index. Public expenditure on health is only significant at 10% in enhancing health status in the country. The results obtained from the estimated education index provide strong evidence in favor of real GDP per capita (Re) and education infrastructure, which are found to be significant at 1% level in enhancing the level of the index. Finally, the results of social development index signify that, real GDP per capita (Re), social services expenditure (EE3) and education infrastructure (Y1) impacts significantly at 1% level, while the health physical infrastructure (HPI) impact significantly at 5% level on enhancing social development index. The study recommends that the macroeconomic policies should give more priorities to the policies that aim at creating jobs through utilizing microfinance projects, attracting more foreign direct investment and encouraging income generations activities, to increase the real GDP per capita. Policy makers in Sudan should adopt a comprehensive strategy to develop the policies that promote primary health care to those new born, sanitation, safe drinking water, neutrinos of neonatal, infants and their mothers to decrease mortality rates. The government should also pay more attention teachers training, planning, monitoring, assessment and correct articulation of educational policies. Finally, social development policies and programs in Sudan should be designed and implemented by local government institutions to build human development capacities and capabilities at local levels.