The present invention provides a system and method for scheduling tasks in a computing system. The disclosed system model has multiple levels, with each level having at least one queue. Each queue has at least one processing function and zero or more clusters associated with it. Flow control technique is used amongst queues at various levels in order to schedule tasks efficiently such that task drop rate reduces. Based on the flow control directives, corrective actions, such as varying the dispatch rate or changing the buffer capacity of queues may be performed by a queue. The disclosed system and method can be implemented as Cooperative Load Distributor (CLD) architecture or as Cooperative Load Distributor framework.