Every nation has the capacity of failing. More importantly, it is imperative not to derive the term 'failed state' for a country in a war like situation. The UK was bombed regularly by the IRA, a similar situation with Turkey against the PKK, as well as Sri Lanka's civil war for 20 years. Yet, none of these three countries were ever labeled a failed state. Why is Pakistan called the world's number 1 failed state? Pakistan has well functioning institutions, growing economy, reasonable infrastructure, various sources of 'income' (exports), a huge consumer market, natural resources. Pakistan has chances of failing as much as Australia or other countries do. Hence, it is important not to look at a war like situation to determine what is a failed state & what isn't; it's after the war that one should determine these things. Pakistan is in the US WOT right now.