US offers Pakistan government $7bn in non-military aid to fight terrorism·

[fatman17]

US offers Pakistan government $7bn in non-military aid to fight terrorism·

Civilian cabinet told drone air strikes will be curbed

· New strategy marks break with Musharraf and army

Julian Borger in Islamabad The Guardian, Thursday April 17 2008 Article

historyAbout this articleClose This article appeared in the Guardian on Thursday April 17 2008 on p17 of the International section. It was last updated at 00:02 on April 17 2008. The US has promised to curb air strikes by drones against suspected militants in Pakistan, as part of a joint counter-terrorism strategy agreed with the new civilian government in Islamabad, the Guardian has learned. That strategy will be supported by an aid package potentially worth more than $7bn (£3.55bn), which is due to go before Congress for approval in the next few months.

The package would triple the amount of American non-military aid to Pakistan, and is aimed at "redefining" the bilateral relationship, US officials say.

Pakistan will also be given a "democracy dividend" of up to $1bn, a reward for holding peaceful elections and forming a coalition government. Of that, $200m could be approved in the next few days.

The aid package, being put together by the Democratic senator Joseph Biden, will mark a decisive break in US policy on Pakistan, which for much of the past nine years focused on President Pervez Musharraf and the Pakistani military as Washington's primary partners in the "war on terror". Officials in Washington said yesterday that the shift had already been made.

"Senator Biden wants to show the relationship is much broader than a military one, and that we are willing to sustain it over time," one of the senator's senior aides said yesterday.

A US administration official said: "Each day Musharraf's influence becomes less and less. Civilians are in control. People aren't meeting with Musharraf any more ... we are very pleased with the new civilian government."

Pakistani officials say much of the new counter-terrorism aid will be spent on civilian law enforcement institutions, such as the interior ministry, the intelligence bureau and the federal investigation agency, rather than being channelled almost exclusively through the army and the military-run Inter-Services Intelligence (ISI) organisation.

The new government says it has also won American support for its policy of opening a dialogue with Pashtun tribes along the Afghan border, led by an ethnic Pashtun group, the Awami National party, that is part of the government coalition.

The new understanding on air strikes by US Predator drones is seen in Islamabad as a critical benchmark for the new relationship.

In January senior US intelligence officials flew to Islamabad and struck an agreement with Musharraf to give the American military a freer hand in the use of Predators against targets in Pakistan's tribal areas, which have become havens for al-Qaida and other foreign jihadists as well as Taliban forces fighting Nato forces and the government in Afghanistan.

The subsequent increase in Predator strikes - estimates of the number range up to eight - caused outrage in Pakistan. Britain also broke with Washington over the reliance on air strikes often guided by uncertain intelligence.

Pakistani officials say they have been given assurances by Washington that there will be close consultation with the civilian government, not with Musharraf, before any future strikes.

However, the use of Predators is held as a closely guarded secret and US intelligence is reluctant to share information about targets, and there is some scepticism in Islamabad over whether the deal will stick.

"We'll have to take them at their word, won't we," said the new information minister, Sherry Rahman, in an interview in Islamabad. She added that Washington's previous emphasis on ties to Musharraf and the Pakistani military "hasn't provided the results that were supposed to happen on the ground".

The US has given Pakistan about $10bn in military aid during the past seven years, but it has not diminished the Taliban insurgency in Afghanistan, while Pakistani extremism is also on the rise. Some officials in Washington believe most of the money has been used to build up Pakistan's conventional forces for use in a possible future conflict with India, rather than spent on counter-insurgency.

Furthermore, much of the money being used for counter-terrorism is being misspent, both Pakistan and US government officials say. As an example they say that Musharraf distributed the $25m reward money for capturing or killing "high value" al-Qaida targets in the form of an "inverted pyramid".

"A few thousand would go to the police constable on the ground who actually spotted the guy, but the millions go to the generals up the chain," a Pakistani official said. No wonder, he added, that the tip-offs stopped coming in and the number of high-profile arrests dropped.

The New Deal
· $1.5bn a year in civilian aid for at least five years

· $1bn "democracy dividend" as a reward for holding elections and forming a coalition government

· Counter-terrorism aid will be performance-based

· The Pakistani government will be consulted before any further air strikes against militants on Pakistani soil by US unmanned "Predator" aircraft

· More counter-terrorism assistance will be given to civilian law-enforcement and intelligence organisations

 

[IceCold]

Well it seems for now that we holding firm on our stance has made US to think otherwise and bring a change in their polices w.r.t pakistan. It is a good sign if the word is kept and it will help it dismantling the fear into the minds of pakistanies who think that the war is against islam and not terrorists.
Our responsibility also increases in this case, as we will have to show progress to the US that indeed our way is working up and negotiations have proved its worth.

 

[AgNoStiC MuSliM]

The "democracy dividend" and "civillian aid" need to be tied into specific programs, rather than just disbursed to the GoP.

When and if the funds are released, there needs to be proper fanfare and publicity to ensure people know where this money is coming from i.e. US so that "hearts and minds" can be won.

 

[Imran Khan]

tell them thank you .no need any aid more.we better without your aid and sucide bombing

 

[mujahideen]

This new non-military aid is to get our politicians on board. To convince them the U.S. is going to punp money in their poskets. This is not going to help the people in any way.

 

[maqsad]

Nothing surprising here, just another cash infusion to keep "chaprasi-stan" from falling apart or even waking up and standing on it's own feet.

I've noticed all American investment in Pakistan just creates more low level junk jobs while American investment in India creates hi tech, higher wage occupations like R&D. Even their export-oriented subsidy of Pakistan's textile industry is the same way, it employes 15 million pakistanis in low level, dead end jobs forever laboring as cotton pickers.

I bet none of this aid is going to help pakistan in setting up manufacturing industries like cars, planes or electronics which will actually help pakistan stand on its own two feet and beat the crippling trade deficit. Instead it is just going to encourage and subsidise the pak economy's backwardness and hold it back from real progress while the west plucks pakistani talent in the continuing brain drain.

I can't understand why people in the pak govt don't realize what the problem with the economy and just fix it. So easy to do by changing a few laws and creating new ones.

 

[EagleEyes]

I've noticed all American investment in Pakistan just creates more low level junk jobs

Except for cotton any other areas?

 

[maqsad]

Except for cotton any other areas?

I don't really have all the information and figures but cotton isn't really an American investment, but it's export is subsidized so that 15 million pakistanis are employed making cloth for American export. This cotton is nothing important to the US..they can cut it off any time and just laugh. The textiles that pakisan exports to the US are also not very high value, like Italian suits for instance.

What America exports to pakistan however is very profitable to the american economy such as fighter jets, radar systems, cars and passenger jets. The exports to pakistan by America create high quality, hi tech and high income jobs in America as well as enormous profits for American tycoons while preventing the creation of those lucrative industries within pakistan itself robbing opportunities for pakistani workers, pakistani tycoons and pakistani businessmen.

This ridiculous situation can easily be fixed so that the pakistani economy can mechanize, develop technologically and rapidly expand the manufacturing sector but nobody in the govt makes it happen when they could do it easily. Nobody in the government lifts a finger to fix this. This is elementary economics, a 9 year old can easily create a plan which will rapidly industrialize pakistan by altering a few laws relating to trade, investment and taxes. But we have 60 year olds making ridiculous rules which are encouraging foreigners to set up useless consumer oriented businesses which suck profits, capital and forex out of the economy making it even sicker.

Oh yeah, and the US could easily allocate billions of dollars so that they result in rapid industrialization and mechanization as well as an expansion of the high tech labor force but are they doing it? Nope. Did the US stimulate pakistan's aerotech industry or did China, did the Us stimulate pakistan's submarine technology and industry or did france? Did the US help construct the largest steel mill in pakistan or did Russia? The US buys textiles and it buys the pak military. Perhaps it is in the interest of the USA to keep the pak economy as close to the stone age as possible, and as desparate and dependent on aid as possible.

 

[Contrarian]

I don't really have all the information and figures but cotton isn't really an American investment, but it's export is subsidized so that 15 million pakistanis are employed making cloth for American export. This cotton is nothing important to the US..they can cut it off any time and just laugh. The textiles that pakisan exports to the US are also not very high value, like Italian suits for instance.

What America exports to pakistan however is very profitable to the american economy such as fighter jets, radar systems, cars and passenger jets. The exports to pakistan by America create high quality, hi tech and high income jobs in America as well as enormous profits for American tycoons while preventing the creation of those lucrative industries within pakistan itself robbing opportunities for pakistani workers, pakistani tycoons and pakistani businessmen.

This ridiculous situation can easily be fixed so that the pakistani economy can mechanize, develop technologically and rapidly expand the manufacturing sector but nobody in the govt makes it happen when they could do it easily. Nobody in the government lifts a finger to fix this. This is elementary economics, a 9 year old can easily create a plan which will rapidly industrialize pakistan by altering a few laws relating to trade, investment and taxes. But we have 60 year olds making ridiculous rules which are encouraging foreigners to set up useless consumer oriented businesses which suck profits, capital and forex out of the economy making it even sicker.

Oh yeah, and the US could easily allocate billions of dollars so that they result in rapid industrialization and mechanization as well as an expansion of the high tech labor force but are they doing it? Nope. Did the US stimulate pakistan's aerotech industry or did China, did the Us stimulate pakistan's submarine technology and industry or did france? Did the US help construct the largest steel mill in pakistan or did Russia? The US buys textiles and it buys the pak military. Perhaps it is in the interest of the USA to keep the pak economy as close to the stone age as possible, and as desparate and dependent on aid as possible.

Excellent views Maqsad, i had never thought of this before. This aid could be channeled in a far better way than merely subsidizing some products to make Pakistan more industrialized. Kudos to you mate!

 

[fatman17]

Well it seems for now that we holding firm on our stance has made US to think otherwise and bring a change in their polices w.r.t pakistan. It is a good sign if the word is kept and it will help it dismantling the fear into the minds of pakistanies who think that the war is against islam and not terrorists.
Our responsibility also increases in this case, as we will have to show progress to the US that indeed our way is working up and negotiations have proved its worth.

Dear Icecold-the question which begs to be asked is Who will take credit for this US largesse?
the new govt?
Musharraf?
Kiyani?
or
Sen Biden?

 

[fatman17]

Nothing surprising here, just another cash infusion to keep "chaprasi-stan" from falling apart or even waking up and standing on it's own feet.

I've noticed all American investment in Pakistan just creates more low level junk jobs while American investment in India creates hi tech, higher wage occupations like R&D. Even their export-oriented subsidy of Pakistan's textile industry is the same way, it employes 15 million pakistanis in low level, dead end jobs forever laboring as cotton pickers.

I bet none of this aid is going to help pakistan in setting up manufacturing industries like cars, planes or electronics which will actually help pakistan stand on its own two feet and beat the crippling trade deficit. Instead it is just going to encourage and subsidise the pak economy's backwardness and hold it back from real progress while the west plucks pakistani talent in the continuing brain drain.

I can't understand why people in the pak govt don't realize what the problem with the economy and just fix it. So easy to do by changing a few laws and creating new ones.

why is that in India that is
1. India ensures that its schools and colleges are functional.
2. the Indian middle class (esp parents) know that the only way for upward mobility is to get a education (higher the better)
3. The Indian govt expects ToT from any foreign investment in their local industry.
4. India did not nationalise their business houses like our dear ZAB did.

 

[Malang]

4. India did not nationalise their business houses like our dear ZAB did.

India did nationalise, regulate and control most of its companies/sectors and taxed the private ones heavily, implemented draconian laws to control and regulate them...
Being rich in India pre90s was a sin acc. to GoI...

 

[Contrarian]

why is that in India that is
1. India ensures that its schools and colleges are functional.

Not everywhere mate, in a lot of government schools in villages, half the teachers are always absent, children are taught sitting on the floor(despite money being spent on desks and the like..)

In cities govt schools are pretty good. But generally, govt has throughout put emphasis on education.

2. the Indian middle class (esp parents) know that the only way for upward mobility is to get a education (higher the better)

That is completely true, every Indian middle class family treats his childs education like an investment, no compromises there in any form. There are no exceptions here.

3. The Indian govt expects ToT from any foreign investment in their local industry.

Again, ToT is a misnomer, previously till the 90's, our ToT was just related to some spares and general fixing things here and there on the equipment bought. Only from the nineties, has ToT actually meant that the equipment was manufactured here, again, it was not instituionalised, we paid extra for it. Now in the 2000's, has the govt made offsets mandator apart from ToT which is the real deal.

ToT is directly dependent on the country's industrial capacity, so only now, does ToT actually mean something, where India's private industry can absorb it and implement it, complementing the PSU's. Before this, like i said, it was a farce, we only produced spares and could fix the equipment here, thats it.

4. India did not nationalise their business houses like our dear ZAB did.

They did, and that resulted in our Balance Of Payment crisis in '90. India was financialy broke with forex enough for a week of import. Only after that did the reforms start from '91 with Manmohan Singh as the then Finance Minister.

 

[HAIDER]

Malay ji long time no see. But nice to see u again.

 

[AgNoStiC MuSliM]

Maqsad:

I bet none of this aid is going to help pakistan in setting up manufacturing industries like cars, planes or electronics which will actually help pakistan stand on its own two feet and beat the crippling trade deficit. Instead it is just going to encourage and subsidise the pak economy's backwardness and hold it back from real progress while the west plucks pakistani talent in the continuing brain drain.

It is not the United States job or responsibility to stimulate anything in our nation.

The fact that I had to actually argue against the US just handing the money over to the GoP, expecting it to utilize it properly (which you also implicitly agree with, when pointing out the failure of our politicians to "fix" the problems), indicates a deep malaise in our nations political system.

I have to agree with Fatman here, the responsibility is ours - when we do not necessarily have the educational infrastructure to cater to all of these "high tech" industries, then why blame the US?

Its our job to plan and implement such programs and ensure we have adequate human resources to man them, not the US's. If you want the US to ensure that we have the right policies and programs, as well as providing the money for them, then we might as well add five more States in the US constitution - Balochistan, Punjab, Sindh, Sarhad and kashmir.

If this plan goes through, the US will have shown extraordinary generosity in attempting to help us fix our affairs, we cannot ask any more of her. How we utilize that aid is entirely our responsibility.