Posts Tagged ‘financial assistance pakistan’

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Shaukat Aziz on Security

October 19, 2009

I’m in Arlington Virginia this weekend attending the Organization of Pakistani Entrepreneurs, D.C. chapter’s annual conference. This year’s theme is “Thriving in A Challenging Economy” and of particular interest was this mornings keynote address by former Pakistani Prime Minster Shaukat Aziz. Although retired from both politics and an illustrious career in international finance, now focusing on non profit work, he shared insights on global affairs ranging from the financial meltdown, terrorism, economic development and challenges facing the Muslim world, ultimately tying it together to make a simple point: international economic development can yield international security.

Aziz attributes economic downturn to sheer “greed” and “arrogance” which resulted in gross regulatory failures and voids in leadership on Wall Street. Stressing consumer confidence and unemployment indexes as opposed to stock market increases as indicators of recovery, he further warned against decoupling emerging markets from states more hard hit by the crisis and marked terrorism of equal importance to addressing financial crisis. In doing so, he referred to “fault lines” in the international system fractured by terrorism, and called on Muslim IGO’s such as the Organization of Islamic Conference to do more in bridging interfaith dialogue.

It was timely advice since his address was preceded by America’s Ambassador to the Organization of Islamic Conference, Sada Cumber. Addressing a mostly Pakistani audience, he underscored the importance for diasporas to seek opportunities for interfaith dialogue so as to reclaim what has become an internationally inaccurate view of Islam. Proactively promoting interfaith harmony in addition to transcending party lines for non resident Pakistani’s was another prescription. He offered an example of Former President George Bush who when asked about his Clinton as his Democratic successor in the 1990’s explained he supported the American President, suggesting such bipartisan, unified support is what Pakistan requires politically.

But his most provocative insight came during Q&A session when someone asked about the IMF’s role on Kerry-Lugar legislation to Pakistan. Without delving specifically  into IMF policies which disperse funds in a traunch system only as stringent conditions are met in entirety, Aziz succinctly explained that anytime a state accepts IMF funds, they compromise economic sovereignty. It was a powerful, provocative statement from a man whose experience in international finance runs deep. He went on to supplement the idea by describing achievements in maintaining Pakistan’s economic sovereignty during his political tenure when he rejected IMF funding.

Overall, Aziz was insightful, relevant, and quite entertaining. He always manages to capture audiences with sharp commentary that transcends generations and professions. After all, every time i’ve heard him speak has been at entrepreneurial conferences, and I’m far too nerdy to be an entrepreneur.

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Enhanced Cooperation Meets Enhanced Concern

October 12, 2009

At the heels of Pakistan’s offensive against militants in South Waziristan, terrorists brazenly staged an attack on military headquarters this weekend. Commandos responded swiftly, taking out 9 of the militants, capturing their ring leader and freeing 39 hostages. Despite success in ending the siege, the incident demonstrates a worsening Af-Pak situation and beseeches a new strategy.

Our administrations new strategy is defined by an increase in troops to Afghanistan, focusing military efforts squarely on Al Qaeda (less focus on Taliban) and expanded funding to Pakistan by way of the Kerry Lugar bill. And while the troop surge and emphasis on Al Qaeda are debated at length in D.C., the Pakistani media is abuzz on the Kerry Lugar bill. There are calls by The Awami League Party (representing the NWFP regions & a predominantly Pashtun population) that the bill allow for an “uninterrupted flow of non military assistance” while other politicians vouch against the legislation altogether. Tehrik-e-Insaaf chairman Imran Khan  said the bill “enslaves” Pakistan and can only benefit the top echelons of government referring to past corruption allegations on senior government officials. Similarly, pundits were all over Pakistani television in the past week, echoing concerns about corruption, lack of support to the military, too many strings attached to funding, and how the bill threatens sovereignty. This morning Foreign Minister Shah Mahmood Qureshi flew to D.C. to discuss theseconcerns just as rumours that Pakistan’s Ambassador to the United States is losing his post becayse of not entirely positive comments regarding the Kerry-Lugar legislation. Suffice to say, the Enhanced Partnership with Pakistan Actmeant to  extend a new strategic hand of cooperation to Islamabad is not off to the positive start intend

In fact, Senator Kerry’s office directly responded to popular skepticism in a recent report.

  • Addressing concerns that the bill would invade state soveriegnty: Senator Kerry explains the bill funds “schools, roads, energy infrastructure and medical clinics” and that “those seeking to undermine” a US/Pakistan in that endeavor are doing so to “advance narrow partisan or institutional agendas“.
  • Regarding the idea that the legislation comes with too many strings attached, Kerry emphasizes that the $7.5 billion annual pledge is for “unconditioned non military aid” and comes with “strict measures of financial accountability” referring specifically to Executive Branch oversight on the use of these funds.

This is contentious to Pakistan because it’s maybe the first time external oversight is imposed on assistance from the United States. And while the bill does a great job of outlining funds for social infrastructure intended to find it’s way to everyday citizens, on the issue of sovereigty, the real sticking point is regarding a potential subversion of the Pakistani military. Senator Kerry insists that the bill’s:

  • focus is on nonmilitary assistance to the people of Pakistan” and military aid is contingent to “cooperation on nonproliferation“. However, the bills funding is rooted in “significant efforts towards combating terrorist groups” and the “Pakistani military not subverting the political or judicial process” to ensure “common goals” of “security and democracy“.

This irks Pakistani’s for a number of reasons. Firstly, there’s ambiguous wording. “Cooperation on nonproliferation” is vague enough to translate as potentially linking funds to Pakistan giving up their right to maintain armaments comparable to neighboring India. Similarly, “significant efforts toward combating terrorism” gives no reference for how this will be measured.

On the Pakistan side, the worry is that  “significant efforts”, according to their definition might not match a U.S. definition of success. Plus there might continue to be a disagreement on the idea of “combating terrorism”. It’s a contention we’ve seen play out as D.C. repeatedly called for heightened efforts on combating the Taliban, quitely but surely opposing Pakistan’s attempts at negotiating with those groups rather than employing just a military offensive, (a policy we’re now reverting).

Also, delinking assistance from the military is unprecedented and freightening to some because while it is necessary to develop schools, and social, democratic infrastructure for long term development, in the immediate term there are widespread security breaches with weekly suicide attacks, an ever growing incursion from Afghan militants on the northern border and drone attacks that result in collateral damage.

So Pakistans concerns echo a need for both immediate security and long term development, but not at the expense of one another.

Keep in mind, the widely held, and all but true notion that Pakistan is perhaps the only place where the military controls a country, and not vice versa. That idea is rooted in that their military is historically the strongest, most stable and legitimately accepted institution. Let me emphasize that last part: it’s historically the most legitimately accepted institution in Pakistan in an absence of stable democratic institutions never having developed. Meaning, in times of economic, social and political uncertainty, the military has historically responded most efficiently in alleviating situations since 1947. Whether one accepts the idea that the military creates a perpetual cycle of uncertainty within which to assume power periodically, or the military responds to the shortcomings of civilian governments in the absence of democratic instiuttions (chicken & egg argument), either way, the military’s been relatively effective in handling crises in Pakistan in comparison to civlian regimes. So given the current enviornment of insecurity, people are weary of a hopeful promise for “long term” moves toward “democracy” that might comes at the expense of insufficient assistance to their military who has a capacity to alleviate immediate security concerns.

I think democracy is the ultimate route to security for Pakistan, but despite Executive branch oversight and our “long term” commitment defined by only 5 years of funding, Pakistan’s concerns are understandable. Given a long history of cooperation, Pakistan is more used to US assistance through bilateral relations with a Republican government in DC (think General Zia/Raegan, General Musharraf/Bush, Ayub Khan/Eisenhower, Yahya/Nixon) and the Kerry Lugar bill is a staunch reverasal of our foreign policy with Islamabad. Perhaps finding value in previously crafted policies to Pakistan in combination with our current legislative proposals is an optimal solution to quelling the enahanced concern of our enhanced cooperation.