The Political Economy of Foreign Aid to Pakistan

The Political Economy of Foreign Aid to Pakistan PDF

Author: Mumtaz Anwar

Publisher: Nomos Verlagsgesellschaft

Published: 2007

Total Pages: 146

ISBN-13:

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All political decision making processes reflect the interaction of different utility maximising actors: politicians, voters, bureaucrats and interest groups. Theoretical literature on the subject is not conclusive, and thus far, little empirical work exists. This study presents an econometric analysis of the allocation of development aid to Pakistan based on a political economic framework of aid allocation. Looking at bi- and multilateral aid to Pakistan from 1960 to 2002, results suggest that aid flows to Pakistan are highly motivated by special interests within donor countries and international financial institutions (IFIs). Looking more specifically at bilateral aid, and especially aid by the single largest donor to Pakistan, i.e. the US, analysis suggests that Pakistan and Indian ethnic lobbies could play a role in aid flows, and in the passage of two important amendments, the Pressler and Brown Amendments, in US aid authorisation bills regarding aid to Pakistan. Analysis of multilateral financial flows to Pakistan shows that Pakistan receives a large amount of lending but with considerable variations over time. To some extent personal contacts of Pakistani international civil servants appear to play a role in multilateral lending to Pakistan, along with major shareholders economic interests.

Foreign Aid and Economic Growth in Pakistan

Foreign Aid and Economic Growth in Pakistan PDF

Author: Ammar A Malik

Publisher:

Published: 2013

Total Pages: 0

ISBN-13:

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The purpose of this paper is to analyze the relationship between foreign aid and economic growth in the context of Pakistan by proposing two key methods. Both of these are complimentary, with the field experiment establishing the existence of an aid delivery problem and the in-depth case studies further expanding on some of the key findings. Section 1 provides a broad situational overview by situating the aid-growth question in the context of Pakistan, contextualizing it within the ongoing theoretical debates on the subject. Section 2 solidifies these assertions by going deeper into literature to arrive at the possible avenues for future research using fresh methods. Section 3 and 4 then propose a field experiment and an in-depth case study respectively, both intended to expose the underlying problems with aid delivery systems in Pakistan. Finally, section 5 offers brief concluding thoughts to reassert the importance of understanding the aid-growth conundrum and to take rectifying measures today.

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