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

 

The other thing Holbrooke heard was, "You never ask us what we need; you just do these programs that you think we ought to have." This is a longstanding lament, and both the Kerry-Lugar bill and the administration's AfPak strategy stipulate that Pakistanis will play a much larger role in choosing, executing, and monitoring projects than they do now. In part because improving relations with Pakistan is so central to his job, Holbrooke immediately began rejecting contracts USAID had drawn up with U.S. contractors. That didn't sit well with some; a senior USAID official, C. Stuart Callison, wrote an anguished memo to Anne-Marie Slaughter, head of policy planning at the State Department, claiming that the new policy was "shockingly counterproductive" and would subordinate development goals to political considerations.

Political considerations, in a way, are just the point. Aid that harms America's standing -- because Pakistanis see it as highhanded -- is a bad idea even if it works. But it's also true, as Callison wrote, that aid policies that don't produce real change inside Pakistan scarcely advance President Barack Obama's overall counterinsurgency goals. Can America do both? Unlike Afghanistan, Pakistan has a real state, a real middle class, a real civil society. But it's hard to find independent actors in so deeply feudal a society. Brian Katulis, a regional expert at the Center for American Progress, says that though going through local NGOs and local government bodies is "the right instinct," he's skeptical that U.S. officials will be able to navigate the political interests of local players to choose people who will actually perform.

Holbrooke is prepared to err on the side of Pakistani engagement. How, after all, can you build local capacity unless you ask people to take responsibility? More to the point, this is what it means to incorporate development assistance into larger foreign-policy goals: If Obama is to overcome the terrible failure of trust with Pakistan, he must not treat Pakistanis as hapless objects of American charity. Pakistan, as the State Department official noted, "has forced a serious re-evaluation of the relevance of aid to our foreign-policy objectives."

Whatever the United States was doing before didn't work for Pakistan, and didn't work for America. Clearly, it's time to try something else. The danger, though, is that Holbrooke will find a way of helping the U.S. image in Pakistan, and thus advance key national security goals, without really producing change inside the country. Perhaps, therefore, Pakistan should force the United States to re-evaluate aid policy even further. Wendy Chamberlin, a former U.S. ambassador to Pakistan, argued in a recent op-ed that aid will continue to fortify Pakistan's deeply entrenched elites unless the United States finds an entirely new way of delivering it; she proposed inviting a wide array of groups and individuals to bid for aid projects, much as the Obama administration is now doing in the education world with its $4.3 billion grant program known as Race to the Top.

A more far-reaching proposal comes from the Center for Global Development, a Washington think tank that has proposed (pdf) that funders sign contracts with recipient states in which both sides agree on a specific desired outcome -- say, increasing the reach of basic health services by a fixed percentage -- and then the donor leaves the government wholly free to reach the outcome in any way it sees fit. The donor begins to pay only when the government begins to show results. (A mutually-agreed-upon third party audits the recipient's progress.) "Cash on delivery aid," as authors Nancy Birdsall and William D. Savedoff have dubbed the idea, offers accountability for donors, autonomy for recipients, and transparency for citizens of both countries. A corrupt or incompetent government -- Pakistan's, for example -- could fail to hold up its end of the bargain. But are Americans really prepared to hand over scarce resources to such a state -- even if doing so helps their image?

 

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.