By Murtaza Haider, Ph.D. Associate Dean of research and graduate programs at the Ted Rogers School of Management at Ryerson University in Toronto.
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Several policy-makers, politicians, and development professionals in the west believe that the economic survival of Pakistan rests on handouts from the United States. Often American legislators ridicule Pakistan for willingly accepting American dollars in charity, but not delivering on American demands in return.
The Westerners are not alone in believing that Pakistan’s survival rests on handouts from the US. While speaking on Canadian TV earlier this week, Raheel Raza, a Canadian of Pakistani origin, argued the same. “Ever since the inception of Pakistan the United States has given Pakistan aid without which it cannot survive,” said Ms. Raza.
The US economic and military assistance to Pakistan indeed has a long history stretched over decades during which several American governments have poured billions of dollars into Pakistan. The question, however, is to determine first why Americans aided Pakistan and second what was the money intended for. And even more importantly, one should determine if indeed Pakistan’s economic survival rests on American aid.
The British newspaper Guardian maintains an active database documenting six decades of American aid to Pakistan. The data is compiled by Wren Elhai of the Center for Global Development in Washington, DC. The database reveals that since 1948 the US assistance to Pakistan has largely been for civilian purposes. Of the $61.7 billion in total assistance (in constant 2009 dollars) provided to Pakistan between 1948 and 2010, $40.4 billion were provided for economic assistance and $21.3 billion in military assistance. The economic assistance to Pakistan peaked in the early 60s when in excess of $2 billion annually were provided to Pakistan. (Complete article)
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