Our Money in Pakistan

Richard Holbrooke is getting serious blowback for his efforts to radically reshape U.S. aid programs in South Asia's most dangerous state. But maybe he's onto something.

BY JAMES TRAUB | MARCH 17, 2010

Of the many levers Obama administration officials have installed on the mighty console that is AfPak strategy, the one to which the least attention has been paid is almost certainly the civilian assistance program in Pakistan. If journalists are embedding with USAID operatives in the vast, Taliban-plagued province of Baluchistan, not many of us have heard about it. And yet senior U.S. officials, most prominently Vice President Joe Biden, regularly note that Pakistan, with its 180 million people and nuclear stockpile, matters to the United States far more than Afghanistan. Thanks in no small part to Biden, who pushed legislation to massively increase civilian aid, Congress last fall passed the so-called Kerry-Lugar-Berman bill authorizing the expenditure of $7.5 billion in Pakistan over the next five years. Nowhere else does so much hang on the success or failure of development assistance.

And in few other places has the United States spent so much money so thoughtlessly in the past. In The Idea of Pakistan, historian Stephen P. Cohen concludes that decades of U.S. aid strengthened the hand of Pakistan's Army without making it pro-American and had economic consequences no less ambiguous, bolstering elites and self-appointed middlemen. And just as White Houses in the past had given Pakistan's rulers lavish rewards for support in the Cold War, so George W. Bush's administration gave the country's military $10 billion in barely supervised funds in exchange for pledges of support in the war on terror -- pledges that were honored more in the breach than in observance. Bribery is one rationale for foreign aid -- Hans Morgenthau, that pitiless realist, argued that it was the only sound rationale -- but not when the party in question refuses to stay bribed.

Bribery, in any case, is no longer enough. The AfPak strategy constitutes a recognition that U.S. national security now depends upon producing internal change in states -- the kind of change development assistance (as opposed to, say, regime change) is designed to bring about. One of the least plausible aspects of that strategy is the expectation, in Afghanistan, that the "civilian surge" will have begun making a difference by the time U.S. troops begin to draw down, in mid-2011. The Pakistan policy requires no such short-term miracle; indeed, the five-year time frame of Kerry-Lugar-Berman is meant to signal to Pakistanis that the U.S. commitment will not be episodic, as it has been in the past.

The money will start flowing in the next few months, and when it does, it will look very different from the aid program of recent years. Congress has earmarked $3.5 billion for "high impact, high visibility infrastructure programs" -- power plants, highways, water treatment facilities, and the like. In recent decades, aid dogma has focused on "capacity building" rather than the building of things. Now it's China that constructs dams and railroads in Africa (and Pakistan) -- and gets the credit for it. Leaving aside the respective merits of these two approaches, people can see the effect of dams a lot more easily than they can the effects of "technical assistance." When Richard Holbrooke, the U.S. special representative for Afghanistan and Pakistan, first began traveling around the country, he and his team got an "earful," according to a State Department official, from Pakistanis who said that U.S. aid was effectively invisible. "Our aid was not supporting our political objectives," he told me. That is, it wasn't making a dent in the overwhelming hostility that many citizens feel toward the United States, which is a huge handicap in persuading Pakistan to confront the militants.

But will building big things that make people's lives better really improve the United States' image in Pakistan? Doing so hasn't done much good in Egypt, where no one seems to thank America for the roads it has built and the electricity it has provided. (More than 60 percent of Egyptians -- and 90 percent of Pakistanis -- said in a poll last summer that the United States abuses its power to "make us do what the U.S. wants.") Anti-Americanism in much of the Islamic world is structural: Leaders enhance their shaky legitimacy by lashing out at Uncle Sam, and people eager for a scapegoat find one in the United States (or Israel). American policy, or American aid practices, serves as a handy pretext. Still, it is in the U.S. interest to remove that pretext as far as possible: Let's build some power plants and see what happens.

Alex Wong/Getty Images

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James Traub is a contributing writer for the New York Times Magazine and author of, most recently, The Freedom Agenda. His column for ForeignPolicy.com runs weekly.

 

TOM.MCINERNEY

10:06 PM ET

March 17, 2010

'Aid' for Pakistan

We know that Pak politics is volatile , anti-west , and based upon appeals to the illiterate multitudes in Punjab. We built infrastructure elsewhere in the thirdworld previously , and little influence accrued (at least , the influence was oft accompanied/exceeded by resentment).
Greg Mortgenson has eloquently made the case that schools are popular -- why not implement a scool-building program to educate the agrarian Punjabi 'masses' ?
The Pak military has absorbed billions of 'aid' , and rewarded us with violations of the non-proliferation treaty ... That ought have been spent on infrastructure.

 

LITTLEMANTATE

8:48 AM ET

March 18, 2010

Education does not equal pro-Americanism

In fact, the minute those kids get to reading and realize how badly Monsanto et al are screwing over South Asian peasants they might get even angrier. Now if by education you mean pro-American propaganda, then that's a different issue. But you better hope they don't get any other reading material. Face it, unless you are talking about people who are directly on the US dole like Kurds, Israelis, and our various translators and enablers, the pro-American boat has sailed. And their pro-Americaness is related to military and $. Fairly or not, people don't trust the US anymore.

Look at anti-colonial movements the worldwide, they were largely led by folks who did a lot of reading. Think about the number of middle class people involved in terrorist movements. Recently, I read in Newsweek how the biggest scare for WallStreet is the rise of nationalist middle-classes around the world. Such unreasonable folks don't like it when American and British multi-national corps rape their countries' resources or practice economic warfare ala Soros et al. Dick Lugar is an old man who doesn't realize the world has changed and he and his fellow leaders in Congress let the US slide on their watch into a de-industrialized, debt-ridden ghetto.

 

ALEXTHOMAS

1:48 PM ET

March 18, 2010

They need to spend money

They need to spend money wisely, more importantly now that we are still experiencing economic problem around the world. It would be very difficult for all of us to handle the situation if we are totally broke.Alexander Thomas

 

VIKRAM SINGH

5:27 PM ET

March 18, 2010

'Aid' for Pakistan'

My advice to India and other non-muslim poor nations: Terrorism pays! Invest in your terrorists network and reap big profits in US aid!

 

S M

2:55 PM ET

March 22, 2010

How it works in Pakistan

Trust deficit’ to take centre-stage, yet again

http://www.dailytimes.com.pk/default.asp?page=2010\03\22\story_22-3-2010_pg11_8

By Saeed Minhas

ISLAMABAD: The ‘trust deficit’ between Pakistan and the West always takes centre-stage whenever any parties from both sides sit across the table and no matter how you look at it, the fact remains that both sides are ‘touchy’ about each other.

You meet any visiting British diplomatic knight like Sherard Cowper-Coles or come across the freely moving brigades of her ‘Highness’ Anne Patterson, see a Spaniard in his Mediterranean-style arched home like his excellency Gonzalo Saravia or chat with a European Union emissary like Ambassador Jan De KOK, the conversation somehow ends up flirting and kissing the ‘trust deficit’.

Deficit is defined for our political and official circles, is often considered as a finger pointing exercise conducted by such diplomats. Going by the same token, what these diplomats consider our country’s homegrown problems are taken as an accusation without caring for the use of this ‘land of pure’ for numerous proxy-wars (read services and sacrifices) to fulfill their national agendas.

Both sides have grown so allergic to such actions that instead of wasting time on this done and over ‘reality’, they move forward in wheeling and dealing on all other issues to press home their respective advantages.

Discussing the Af-Pak policy, a term which many in our Foreign Office hate, our two new-found friends from Spain and EU had to zigzag through several local issues before asserting that the West could not launder the homegrown misdeeds of the Pakistani oligarchy and that they have to wake up (or pack-up) to the situation before its too late.

Issues like ‘trade not aid’, food insecurity and theories of proxy and ‘hot’ and ‘cold’ wars were given every possible shot by the media-pals to conclude that post-9/11 world need to give Pakistan a ‘special child status’ or give its industry and people a ‘level-playing field’ to breath.

Nevertheless, diplomats from all the major missions stayed busy throughout the week, assessing the possibilities of the upcoming Pak-US strategic dialogues due in Washington on March 24. From the UN to the Canadian club inside the diplomatic enclave and from the music-fested lobby of the Marriot to Gym facilities of Serena, the poor diplomatic chaps are seen taking mental notes from every Tom, Dick and Harry to send home a diary on the latest news and views surrounding these overtly blown-up talks between Mike Mullen and Ashfaq Kiyani, and Qureshi and Clinton. Oops, sorry to leave Obama’s special Af-Pak representative Richard Holbrook because no one is missing him here in our diplomatic corps especially after the charm-offensive of Secretary of State Hillary Clinton to personally see the impact of Obama’s ‘3-d foreign policy’.

Moving on, we found out from our conversations that visas remain a ‘hot issue’ between Pakistan and the US. One US diplomat let it slip that Islamabad had requested over 200 visas for its auditors, consultants, contractors, architects and even special-masons, out of which only 30 auditors had been allowed visas in Washington while the rest were still waiting. Quoting Hillary Clinton, he said that all our (US) moves are seen from the prism of a conspiracy theory without caring to understand our system where the US Congress writes the cheques, not the president and auditors follow them all the way to their end-point as compared to Pakistan where everyone is freely writing and pocketing the cheques with a complacent auditing system.

While many businessmen and several politicians preferred to walk away smugly, a pen-puzzler clearing his throat asking the marine-cut diplomat that auditors were one thing, why were contractors, consultants and these ‘masons’ trying to get visas.

“To help your people spend the Kerry-Lugar bill money,” the diplomat responded as if asking that don’t you know that of all the aid spent in this country by USAID or any other US agency, more than 52 percent is repatriated to the US by these visiting consultants, contractors and now even masons. The bill is just another instrument after which the US would have every right to claim that ‘trust deficit’ has been reduced, but one wonders that when half of the money would go back, the rest distributed amongst the hand-picked NGO gurus and consultants, would the masses buy into their claims?

President Zardari and Prime Minister Gilani have been shouting to draw the attention of the visiting platoons, especially the US, that regardless of how the government survived the heated debate on the Kerry-Lugar bill, the money should at least be distributed through established state institutions. To this, our carefree lady from the ever-expanding US embassy retorted that “excuse me, give us a break, we have had enough of this, let us spend our tax-payers’ money our way”. Wondering about Washington’s rhetoric that the bill “is all about the people”, I drove back to my office with the realisation that maybe the new-cons don’t consider state institutions to be relevant anymore. Maybe they prefer to operate through non-state actors. It reminds me of a Pashtoon friend who always used to say, “A king can do anything he wishes in his jungle... sorry empire.”

 

SMCI60652

3:58 PM ET

March 19, 2010

Cliches

"Anti-Americanism in much of the Islamic world is structural: Leaders enhance their shaky legitimacy by lashing out at Uncle Sam, and people eager for a scapegoat find one in the United States (or Israel). "

That's a cliche if I've ever seen one. And even if it had an aura of authenticity, it's completely outdated now.