Article Type

Article

Description

The Obama administration has recently completed a review of Washington’s Pakistan strategy. The US Congress is considering a bill that will triple aid appropriations to Pakistan for non-military economic development and another bill to set up Reconstruction Opportunity Zones in Fata. Is US aid as envisaged in the Kerry-Lugar bill an appropriate tool for Pakistan’s long term economic development? Is its disbursement through the existing channels the most preferred mode of assisting Pakistan in its endeavour to resume its journey to sustainable and equitable growth? Before we get overwhelmed by this act of generosity the issue needs to be explored. In my view, the proposed appropriation and mode of delivery with inherent political conditions built into the bill is the least desirable of all options to help Pakistan and improve the US image. Literature on the effectiveness of aid gives evidence that very few developing countries have made good use of this resource for the larger benefit of their populations. Government-to-government assistance results in the relaxation of domestic efforts to mobilise revenues through taxation, non-tax receipts, user charges, and induces wasteful and unproductive expenditures.

Publication Source

Dawn

Publication Date

4-8-2009

Pages

1-3

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