Rethinking U.S. Foreign Assistance Blog

 

Friend or Foe: Should the United States Cut Aid to Pakistan?

May 3, 2011


This is a joint post with Wren Elhai and Molly Kinder.

The news of Osama bin Laden’s death in a hideout in Pakistan raises fresh questions about the future of the U.S. development program in that country. That bin Laden was found in the army town of Abbottabad – the Pakistani equivalent of West Point — has fueled suspicions that Pakistan’s leaders have been unhelpful at best and double dealing at worst. Some are asking: if Pakistan won’t help the United States, why should American taxpayers keep giving them so much foreign aid?

That question misunderstands the purpose of development assistance. Aid is not a tool to reward or to punish a recipient government. Even on issues of economic policy, aid cannot buy leverage. Similarly, aid is not charity. The reason the United States invests in a country like Pakistan is because instability there threatens long-term security and prosperity here and around the globe. A country of 180 million (soon to be the fourth most populous country in the world), armed with nuclear weapons, with a young and frustrated population ripe for radicalization is the sort of place that people like Osama bin Laden dream of. An entire year’s worth of economic aid to Pakistan ($1.5 billion) is equal to about five and a half days of military spending in Afghanistan. If that relatively small investment can nudge Pakistan slightly towards a more stable, prosperous path—and possibly avoid billions in military costs later—it will have earned the United States massive returns.

Meanwhile, walking away would cement the United States’ toxic reputation in Pakistan for decades to come.  Mistrust of the United States in Pakistan is at an all-time high, despite the pledges by U.S. officials, who time and again have said: this time is different, this time the United States is here to stay. Breaking those pledges would undermine U.S. credibility and could undermine the fragile democratic system of government that is still in make-or-break territory and that is Pakistan’s best hope for success. For once, the United States must show that it means it when it says that economic progress and democratic governance matter as much as military cooperation.

If walking away is a bad option for the United States, so too is spending money with little to show for it. That’s why we should be disturbed by Jane Perlez’ scathing look at the ways the United States aid program in Pakistan is falling short of its potential, which echoes some of the concerns we picked up during a recent visit to Pakistan. To be sure, Pakistan is a difficult environment for the United States, or any other donor for that matter. But the inherent challenges facing the U.S. aid program in Pakistan and (as Rajiv Chandrasekaran recently described) in Afghanistan are compounded by the mixed-up structures and confused priorities of the U.S. foreign policy bureaucracy. A skeptic might then ask: even if it is important for the United States to get its aid program right, is it possible for it to do so in Pakistan?

We think it is, and that the United States can do better. In fact, there is a window of opportunity available now. A new set of leaders in the American bureaucracy—a new Special Representative for Afghanistan and Pakistan, a new Ambassador, and a new USAID mission director, are working well together. The USAID Pakistan mission is finally close to fully staffed to manage a larger program less dependent on contractors and more on USAID technical teams working with Pakistani counterparts.. USAID promises a more focused set of fewer but larger projects.  One month from now, our study group on U.S. development strategy in Pakistan will release a report, outlining how the United States can seize this opportunity. We will recommend changes to the processes and structures for planning and implementing the strategy in Pakistan and recommend ways to focus and clarify U.S. objectives and priorities.

As luck would have it, the Senate Foreign Relations Committee will hold a hearing Thursday to discuss the limitations of U.S. policy towards Pakistan. The hearing was on the schedule long before the sleepy town of Abbottabad entered heavy rotation on the cable news networks. We fully expect Senators to raise tough questions about U.S. aid to Pakistan, sharpened by this weekend’s events. We would hope they also take the opportunity to clarify why the United States has a robust development program in Pakistan in the first place, and to think hard about how it could do better (including doing more with U.S. trade policy).

It took ten years of focused effort, persisting through repeated setbacks, to finally track down Osama bin Laden. That effort, as President Obama put it yesterday, has made the world safer and, “a better place.” A similar long-term commitment is exactly what is needed to put Pakistan on a healthier development path—and to make the world a better, safer place. No, now is not the time to abandon ship by cutting off the development program in Pakistan. Now is the time to right the ship.

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19 Responses to “Friend or Foe: Should the United States Cut Aid to Pakistan?”

  1. Excellent analysis, the point about the long-term benefits for investing in Pakistan is key. However a lot of work and effort is required on both sides to ensure that the benefits of American aid reach out to the most deserving.

  2. Well-stated, clear thinking. Hope this clarity of purpose can be carried out and understood by the public.

  3. I think it’s time for the United States to withdraw its finacial commitments, unless the countries being supported have a democratic system in place.
    Countries need to stand on thier own two feet. Have they proven they want a democratic system?

  4. Douglas Clark :

    Economic Support Funds (a major or the only source of USAID funds for Pakistan) are provided in support of U.S. foreign policy aims. Therefore the U.S. can “punish” if those aims are not being met. That will be the big question before Congress and probably bashed around among the cable news analysts – are the U.S. aims being met and if not why should another $18 billion (the estimated level of U.S. economic support fund assistance since 2011)be provided?

    The “nudging” concept rarely works. Egypt is our prime example of providing tens of billions in U.S. economic support funds assistance with little to show for the 37 years of attempted “nudges”. The older failed example would be the Philippines under Marcos.

  5. The NATO troops has cost Pakistan a loss of 122b according to National Highway Authority plus this so called war another 34b so how any cut will be justified?

  6. Dear Madam,

    I am sure that you worked hard on this article but sorry to update you; the whole event in itself is completely bogus and a sham.

    Please read the following link for your information and updation on the pin point timing and killing of Osama bin Laden.

    http://nation.com.pk/pakistan-.....EU-Times/1

    Please also see Fair game and read on the historical background on the lead-up to the Iraq war to understand the dynamics and reasons as to why US is needlessly spending $1.5 Billion for 5 days in Afghanistan and trillions spent in Iraq.

    Pakistan has its share of problems which you may not understand that have been compounded by the war in Afghanistan since 2001.

    Over 30000 civilians and thousands of Army and security personnel have died as a direct result in Pakistan.

    In addition majority of the nation believes that the funding for extremism is being sent through CIA; reference to the Raymond Davis case.

    It is very easy to malign a country but remember that Osama Bin Laden, Saddam Hussain were once revered by the US and funded against Iran and Russia.

    US must stop taking advantage of situations and portray themselves as sincere partners in the long run instead of creating fear, insecurity and blaming Pakistan.

    I would myself advise the US Government to stop the funding for Military purpose if they are that satisfied on the condition that Nato supplies be stopped as well.

    The thing is that we both need each other so media attacks and pressure is not a realistic tactic. Majority of the public do not even get a share of the funding being sent which I am sure the US Government knows as well having preference on military leaders instead of democratic ones not only in Pakistan but also in Yemen, Egypt, Libya etc.

    Thus I would advise you to get a broader look at the facts and figures and not to tow the typical media line especially being a Senior policy analyst.

  7. Charles Uphaus :

    A cut back in US funding in Pakistan is almost inevitable, and would probably be a good thing. It’s not easy to spend large quantities of money wisely, even in a favorable environment — which Pakistan definitely is not. Most studies seem to indicate that, more than the amount of the foreign aid commitment, it’s (1) “jointly-owned objectives” and (2) the consistency or reliability of the assistance over time that matter most. Contrast Pakistan and Bangladesh.

  8. Thanks for these good comments (especially Ammar and MArgaret for the positive feedback!)
    Adam: We think there are good signs that this time Pakistan’s democratic system will stick. The key is to watch how and whether they manage the next presidential election, and how and whether they make progress on their current effort to devolve some federal functions, such as basic education and health, to the provinces — a good idea in principle since the more local the services the more accountable to citizens. I and my co-authors agree that the U.S. development effort is burdened in its efforts to help in Pakistan by its mistakes there and in the Middle East in the past including on the military side. And CHarles is absolutely right that the point is not to spend a lot of money but to spend wisely and with patience and persistence on jointly owned objectives.

  9. [...] and American interests in the region.  Others feel that aid is relatively small investment used to nudge Pakistan towards a more stable, prosperous path. Still others feel that Pakistan’s allegiances are spit, maintaining a close relationship with [...]

  10. I understand the points that are made here, but with very little quality control and oversight, we have poured billions into a country that has not demonstrated significant assistance to the US or investment in its own people. At what point are the best of intentions a piggy bank for disreputable despots and how can we insure that our intentions are culturally appropriate?

  11. The assassination of Osama Bin Laden by Obama’s team unilaterally within Pakistani soil is just too good. That too within a Pakistani “defense forces” town, without the knowledge of any Pakistani government/police/military/ISI officials proves that – Pakistani authorities are absolutely CLUELESS & USELESS when it comes to who enters their soil – either US Navy Seals or Terrorists – how & when, how long they stay, do whatever they wish to and depart from Pakistani soil pretty easily. US Navy Seals easily hood winked all Pakistani authorities and also all pathetic Terror groups based in Pakistani soil. Both are no match to US supreme powers. Perhaps, US should colonize Pakistan and take control completely – this way US can nip the terror cells in the bud and hold Pakistani authorities accountable.

  12. You’ve got to define aid and which aid to cut. Certainly military aid should be reduced.

  13. [...] Friend or Foe: Should the United States Cut Aid to Pakistan? Share| [...]

  14. Rabia A. Khan :

    I have been following CGD since its inception. It has produced more sensible and relevant analysis than one comes across frequently. Aid or assistance is a tricky business, if it is devoid of built-in mechanism of accountability and transparency down to the level of citizens whom it is supposed to aid, it will not be spent efficiently. More focus has to be on empowering people to create action rather than focusing on mere raising voice.
    A nation of 180 million people must learn to stand on its own two feet, how long the world will keep on pouring in funds. What is the best way to train the massive youth bulge for today’s labour market, what is the best way to make districts attractive in terms of education and jobs so that there is less burden on urban cities and less risk of militancy. How to get better politicians and policy makers who can implement good reforms in each constituency and district, and how to trim policy blockers? And also American people must be vigilant to see if they are getting the bang for their buck lest their hard earned money is being wasted.

  15. Austin Morton :

    “Meanwhile, walking away would cement the United States’ toxic reputation in Pakistan for decades to come. Mistrust of the United States in Pakistan is at an all-time high, despite the pledges by U.S. officials, who time and again have said: this time is different, this time the United States is here to stay.”

    Couldn’t it be that the prospect that we’re telling the truth this time be the reason the US is so unpopular in Pakistan in 2011? There is the risk raising US development activity in Pakistan while continuing our military interventions will be viewed as the same unwanted meddling.

    I hope the release of your report addresses that and how can the US do better with the level of corruption within the Pakistan government.

  16. [...] some questions about whether the US should continue to deliver aid to Pakistan. CGD’s Nancy Birdsall has some interesting things to say about [...]

  17. [...] been sheltered by at least some elements in the Pakistani military has caused some Americans to call for a reevaluation of its foreign aid to Pakistan.  The talk about sovereignty is theatrics perhaps, but tensions [...]

  18. [...] all the questions swirling around the U.S. aid program in Pakistan this week, one very simple one is worth asking. How much economic [...]

  19. One of the biggest challenges facing Pakistan is its broken education system where 25 million children do not have access to school and the 35 million children who are enrolled are getting substandard quality at best.

    The issue does not stem from lack of resources as 26 countries poorer than Pakistan have higher enrollment ratios. The problem is governance of public education system. If USA can help Pakistan focus on this critical issue, we will be able to see positive results in 2-3 years as witnessed in many developing countries.

    The governance issue can be resolved by engaging private sector management, governmenet financing, and third party accountability.

    Without fixing the education problem, Pakistan and USA will still be engaged in fighting extremism and poverty 20 years from now.

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