Tuesday 24 May 2011

Refusing American Aid

At face value, the idea of relying on one's own resources and renouncing foreign aid rings a patriotic bell. However this move must be looked at within the framework of practical implication and political mileage.
 
EDITORIAL (May 24, 2011) In a populist move following the Abbottabad operation, Punjab's Chief Minister Shahbaz Sharif announced that the province with largest populace in the country will not take any foreign aid. This decision was supposedly made to "break the begging bowl."

However, it took only one day for the Punjab government to step back and clarify that though the province will not take any aid from the US the same principle will not apply to loans. Similarly, the province will also accept financial assistance (in the form of aid and loans) from other financial institutions such as the World Bank and the International Monetary Fund, and friendly countries such as Turkey, Saudi Arabia and China. Days after this decision, according to different media reports, the Punjab government has now cancelled six Memoranda of Understanding (MoUs) with the United States in areas of health, education, solid waste management and infrastructure development, among others.

At face value, the idea of relying on one's own resources and renouncing foreign aid rings a patriotic bell. However this move must be looked at within the framework of practical implication and political mileage. The province was set to receive roughly 20 billion rupees from USAID for different projects including two related to education and municipal development in southern Punjab. After the Punjab government's decision, these projects will be put on hold till the provincial government mobilises enough resources to complete them. Though Shahbaz Sharif claims that the aim of his government is "trade not aid," the government has not officially announced an alternate source of revenue generation, which will pay for these development projects. Unofficially, the PML-N members have mentioned taxing the elite class and cutting down the government's expenditure as examples of creating revenues for the project. However, given the record and unwillingness of the provincial government to tax the agricultural sector, doubts arise about the realisation of such lofty plans.

The aid which the province of Punjab lost due to the cancellation of six MoUs, no matter how little, is the loss of its people. The Pakistan Education Task Force, in its report "Education Emergency Pakistan," has already declared that there is a zero percent chance Pakistan will be able to meet the Millennium Development Goals (MDGs) by 2015. Additionally, according to the same report, at the current rate of progress, Punjab will be able to provide the basic right of education to all children only by 2041. Keeping in mind that India, Bangladesh and Sri Lanka are on their way to meet the same MDGs in the stipulated timeframe, the Punjab government's decision seems more of a disservice to the common citizen.

Politically, the PML-N is trying to score points by playing on the anti-American sentiments, which are especially intense after the unilateral raid against Osama bin Laden. The PML-N has traditionally relied on populist politics with no concrete outcome of such decisions; the infamous 'Qarz utaaro mulk sanwaro' scheme to pay off the national debt and the most recent Sasti roti debacle are two such examples. Also, Imran Khan's direct and unequivocal stance against drone attacks and military operations, and the subsequent rise of his popularity among the traditional PML-N conservative voters, has also played its part in such a defiant stance.

Our politicians have always played with the sentiments and fate of its citizens. Whereas it is most noble to aim to reduce reliance on foreign assistance, the Punjab government's stance doesn't back its claims with realistic alternatives. The idea of national honour versus national prosperity is a dangerous concept to play with. Governance should not be built around emotions and sentiments, but around practicality and in the interest of the welfare of the people. Decreased reliance of foreign assistance should be a long-term goal and not a knee-jerk reaction based on gaining political mileage for next elections.

Source: Business Recorder

1 comment:

  1. Refusing foriegn aid is the first step in the right direction but there is a long bumpy road ahead. Pakistanis doesnt need anyone's aid, all we need are programs which can help us stand on our own feet. We reqiure a platform where we can all unite, raise our voice and solve our problems.
    http://www.youtube.com/watch?v=hkk4ibAsOFo

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