Financial assistance to Pakistan may fluctuate, but it won’t stop in the foreseeable future. PHOTO: FILE
So it is clear that he has an issue with projects he feels are populist and useless. But now he feels that part of the blame for this also lies with the World Bank for persisting with many projects that are of no use and will not benefit Pakistan’s economy.
He has a point, to a degree. But if funds are continuously being provided for projects that are not sustainable, part of the onus of letting that happen is on us. We are also greatly responsible for not successfully implementing reforms or completing projects on time.
And if we are so bad at completing projects, and so bad at implementing reforms, why do aid and donor agencies persist in continuing to fund us? The answer is obvious. They have a stake in our survival. Partially because they have invested in us for decades and if we go down, any chances of redeeming their investment goes down with it. And partially, this is because they have a strategic interest in Pakistan, and other similar economies.
One thing is pretty clear, financial assistance to Pakistan may fluctuate, but it won’t stop in the foreseeable future. One of the reasons is that the US economy is far too dependent on the Military Industrial Complex, which is far too dependent on exports, a significant market for which is in the developing world. Sales will drop if the developing world is expected to raise its own finances to buy arms. Therefore, assistance levels may drop or wane based on extenuating circumstances, but they will never dry up completely.
And they will continue to be directed at projects that will often make no sense.
Published in The Express Tribune, April 29th, 2013.
COMMENTS (2)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
1731637727-0/Bear--(1)1731637727-0-165x106.webp "article")
1731619853-0/ice-cream-(1)1731619853-0-165x106.webp "article")
"part of the blame for this also lies with the World Bank for persisting with many projects that are of no use and will not benefit Pakistan’s economy". Which particular projects is he talking about?
This is an uncharacteristically poor editorial. The US defence budget is greater than the next 25 countries military budgets combined. The US military industrial complex is not waiting on export orders to give it a bump. Big ticket military exports, worth 10s of billions of dollars to states such as Saudi Arabia, Qatar, UAE, Japan, Taiwan, South Korea, dont rely on foreign aid to finance there military sales.
The World Bank, IMF, ADB etc may have their own aims, in terms of funding projects, meeting disbursement schedules, funding their favourite consultants etc, but link between foreign aid and US military exports is a stretch.