ABSTRACT
This chapter examines the allocation of US aid from the perspective of poverty or developmental needs of Pakistan as well as vis-à-vis US geo-strategic and security dimensions. Analysing quantitative data within the context of numerous past and contemporary events, the chapter explores the extent to which US aid policies have been driven by poverty levels and the needs of Pakistan and the extent to which aid has been influenced by US geo-strategic and security compulsions. Poverty needs of the country are determined on the basis of its gross domestic product (GDP) per capita, life expectancy at birth and total population. Following this, the chapter investigates the allocation of US aid from the perspective of US foreign policy goals, such as geo-strategic, political and security objectives, by using US military aid and arms’ sales as variables. Thus, it explores to what extent geo-strategic factors are the key determinants behind US aid allocations to Pakistan. Like previous studies on the aid allocation, geo-strategic significance is measured by employing and operationalizing two variables: US military aid and arms’ sales. These variables are the indicators of how much geo-strategic significance a country has for the US. The assumption or hypothesis is that the more the US gives military aid and sells arms to certain countries at certain times, the more these countries are likely to obtain US economic aid, not on account of their poverty, but because of geo-strategic, political and security reasons. Focusing on events of regional and global ramifications during three distinctive periods in recent history – the Cold War, the post-Cold War, and the “war on terror” era – the chapter empirically demonstrates how the course and magnitude of US aid has been influenced by changing geo-strategic compulsions. Empirical findings confirm the premise that US foreign policy ambitions are the key determinants of civilian aid allocation. Thus, by examining US aid policies over a period of nearly 70 years, the chapter bridges the gap between historical and contemporary analyses of US bilateral aid policies towards Pakistan. The chapter is structured as follows. The first section gives an overview of Pakistan’s socio-economic and geographical position. This is followed by an assessment of the country’s internal and external challenges, which have motivated or compelled Pakistan to seek alliances with external powers to counterbalance its perceived or real threats. Next, the chapter briefly examines US economic aid to Pakistan within the framework of the recipient need model. Following this, US foreign aid policies are systematically and comprehensively examined in light of US foreign policy goals during various periods covering the Cold War, the post-Cold War and the “war on terror”. A number of events affecting the US–Pakistan aid relationship during recent years are also discussed.
