PSDP: Challenges and Reforms

HAQ/HAG APPROACH TO DEVELOPMENT Haq/HAG development approach was influenced by the Harrod-DOmar and 2 gap model. It was then implemented in Pakistan by Dr. Mehboob Ul Haque and the Harvard Advisory Group, and hence has been referred to as the Haq/ HAG approach. The key features of the approach suggested focus on following: Building physical infrastructure through discrete projects of sectors in the economy. Developing medium term budget for financing sectoral hardware. Financing budgetary gaps through foreign aid. The approach was adopted at a time of extreme infrastructure shortage globally while the concept of globalization was still unknown. It naturally focused on “brick and mortar” as well as searching for aid. In addition, it merely looks at expenditures and not results, as developing the hardware of economy was important to kick-start any development and growth at that time.