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China: Braving the Storm

China has so far braved many storms. However, this time it will be a test of its political leadership and economic managers to set a new direction for the economy.

August 23rd, 2010|Uncategorized|1 Comment

Whatever happened to Kerry-Lugar?

Pakistan’s dire fiscal situation has resulted in the reduction of development spending by 40 per cent. This does not bode well for the citizens who have been tormented by an energy crisis, persistent food inflation and rampant unemployment. In these circumstances, the development assistance under the Kerry-Lugar Bill (KLB) is much needed. Pakistan’s civilian government braved a media onslaught and the ire of the security establishment for tacitly supporting the US legislation. Other than the rhetoric around the ‘conditions’ drafted in Washington, there was an unstated agreement that the development assistance was welcome.

Months have elapsed and Pakistanis have yet to witness the roll out of the KLB. Global recession and political uncertainty at home underlie the tough days for Pakistanis especially the poor. It was expected that given the urgency of the situation, USAID was going to kickstart the delivery of its interventions. Well, the progress so far has been disappointing.

First, there seems to be no public sign of a consensus within the US bureaucratic machine how the aid under KLB will be delivered. Unconfirmed media reports suggest that the political versus the bureaucratic channels are not on the same page. The ‘political’ administration is ostensibly managing USAID systems and processes. There may be strategic reasons for that but the net result is that things are delayed. Not long ago, Pakistani government’s procedures were thought to be a problem but the trajectory of US bureaucracy only proves that public sector ailments are common. […]