Malang
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As I mentioned earlier, I am in complete support for measures that restrict aid to specific projects in the socio-economic sector that the GoP can formulate.
restrict aid? I think aid ought to be banned for Pakistan.. instead of aid make US investment in Pakistani economy compulsory...
Similarly, greater long term access to US markets for a variety of products would be a great way to allow economic development, without direct American taxpayer funds. It would allow the private sector to take the lead and generate employment, rather than the government and therefore reduce chances of aid misappropriation.
opening up US market for Pakistan will not really help..
1. First Pakistan has small industrial base and has a small export base (besides footballs and some other items nothing from Pakistan is bought Chinese style)
2. Pakistani exports will not be cheapest, highest quality, branded or in sufficient quantities (in most categories) when compared to Vietnam, China, India etc.. (after all US are allowed and are self-motivated to setup their subsidaries and logistics and procurement and manufacturing in other nations)
3. to really make an impact in trade.. substantial investment is required ..though at the moment US economy is in doldrums... further the current atmosphere in Pakistan is not conducive to investing in industries exporting items to western nations (threat of sanctions)...
4. contrary to what people believe foreign investment is good for a nation and drives up gdp... and when US citizens have invested in your country they will work as hard as a Pakistani in making these companies work...
so instead of getting 600mn$ of aid from US .. equivalent amount of investments by US companies in setting up Industries in Pakistan.. will have a multiplier effect on GDP .. whereas aid is only used as a source of spending by the govt with no real effect on GDP (unless used in infra etc..)
It also creates a much more stable and long term relationship between the US and Pakistan, instead of the existing one heavily biased in favor of military assistance, which is only in US interests as long as it needs Pakistan for pursuing its goals in Afghanistan.
quite true.. but when you have the other country investing in ur nation then relations turn out to be stabler and more robust...
FTA's, such as the ones negotiated with Vietnam and other nations, would send a very positive signal to the Pakistani people.
before Pakistan can do that it ought to have a pro-trade govt.. with laws and policies encouraging entreprenurs to invest money with possible options of bailout by govt...
I have said this before and I will say this again... Musharraf could have made Pakistan go the Chinese way...