“Pakistan is still in the clutches of World Bank, IMF”: a claim recently made by a prominent politician and member of the National Assembly, Shah Mehmood Qureshi, urges us to reflect on the ties between powerful financial institutions and unstable countries such as Pakistan. The word ‘clutches’ forces us to dramatically picture such ties as shackles of oppression from which underdeveloped countries have been attempting to break free. Since the formation of IMF and World Bank in 1944, their involvement has been heavily present in the Third World. On paper, their participation seems like a glorious blessing paving way for efficient global progress. However, after inspecting further we can view the birth of such institutions as a strategic move by former colonial powers to maintain their hegemony. Such strategies are a disguise by various measures, one of them being the use of Structural Adjustment Programs (SAPs). SAPs have long prevailed as a rescuing mechanism by international financial institutions such as the IMF or the World Bank, posing as caped heroes who implement specific economic policies in return for providing aid to developing countries.
However, their continuous attempts to save the financial problems can be inspected with a critical eye. SAPs have expanded to several developing and underdeveloped areas such as Latin America, Africa and South Asia. Restructuring the economic framework is vital for the successful progress of any country but problems arise when such restructuring gives precedence to benefitting the West over the main victims in need for development. An initiative taken by the Bretton Woods institutions, namely, the IMF and World Bank, SAPs were developed in the 1980s as conditions and loans for developing countries. To tackle the influx of debt in 1970s due to boycotts and decreased consumptions from the West by the Third World unison, a restructuring of development and governance evolved after the IMF and World Bank inspections. Continue reading
We have to give up our India-centric policies and our slave mentality.
Pakistan is on a knife-edge with the upcoming general election on 25 July 2018. With Nawaz Sharif firmly behind bars, civil society organisations are predicting rigging in the election by the armed forces and there is a consensus in the country that the army is mass manipulating electoral politics in favour of its cronies. The economic problem arising out of the present political situation is that Pakistan is seriously in the doldrums owing to its debt to its international creditors. The country is facing a sovereign debt crisis and reliance on Chinese money is very high indeed. As reported recently in the Financial Times, Islamabad is headed for a foreign currency crisis but is keen to avoid yet another IMF bailout. So it is appealing to Beijing for more lending. In the year ending June 2018 Pakistan borrowed $4 billion from China and is facing problems with the devaluation of the rupee, the strategy used by the State Bank of Pakistan (SBP) to keep the economy afloat. At the start of June 2018, the SBP only had $10 billion in foreign currency reserves in comparison to $16.1 billion just a year earlier.
The problem does not stop there because $12.7 billion in external payments are due in comparison to £7.7 billion last year. The country will need to raise $28 billion this financial year to repay its debt obligations. Therefore, in such an environment, it is hardly surprising that Kaiser Bengali thinks that “we have to play our cards right in case of the China-Pakistan Economic Corridor (CPEC). The opening up of China has enhanced travel but not trade.” He recently made these remarks while addressing members of the prestigious Pakistan Institute of International Affairs (PIIA) and the media. Speaking on the subject, ‘Changing geo-politics and challenges for Pakistan’, he said: “My fear is that we will not be playing our cards right because of the slave mentality that our bureaucrats and planners have.” Elucidating further he said: “We are always looking to a bigger power to protect us against military adventurism.” In this context, he recalled that back in the 1950, we joined the US-sponsored defence pacts, the Cento and Seato, as a guarantee to be protected during times of aggression. Continue reading
Filed under Afghanistan, Balochistan, China, Corruption, CPEC, Discussion, Events, Human Rights, India, Pakistan Horizon, PIIA, Politics, Trade, United States
‘Trump-Kim summit unlikely to have great impact on world’
Donald Trump is a huge showman and his despotic tendencies became all the more apparent when he extended his hand in friendship to Kim Jong-un, the autocratic and reclusive leader of North Korea. Trump had mocked Kim as “little rocket man”. In return, the US president was given the moniker “deranged dotard”. Yet despite such insults from Pyongyang, Trump still went out of his way to please Kim and both the ego-manics got on like a house on fire. The Singapore Summit on 13 June 2018 was little more than an exercise in gimmickry and it has achieved nothing in concrete terms. If anything, it has strengthened Kim’s hand and he is more powerful than ever at home and abroad. China has played a vital role in these developments. Military exercises between the US and South Korea have been suspended to please the petty dictator and of course the summit is already a forgotten affair because of huge immigration problems for Trump at home in America. Now Trump is on an offensive with his own allies and he even resorted to calling Canadian prime minister Justin Trudeau “dishonest”.
He has also imposed tariffs on his country’s European allies who have countered his move in a tit-for-tat offensive. Despite all the brinkmanship, lies and false promises, it is clear that the world is a much more dangerous place that it used to be prior to Trump beginning his presidency. Trump, a racist and sexist American loudmouth, is simply incapable of performing anything positive for world peace and this is especially clear from his retrogressive policies on Palestine and human rights. Pyongyang’s war of words with Washington may have ended but Kim is still purging his opponents with extreme ruthlessness. The caging of children taken away from their parents for illegally crossing the US-Mexican border caused such outrage that even the first lady Melania Trump decided to oppose her own husband. Of course, as a past illegal immigrant herself, Melania probably thought of how horrible it would be if she were separated from her son Barron Trump? Continue reading
Filed under China, Corruption, Disarmament, Discussion, Europe, Events, Human Rights, Immigration, North Korea, Pakistan, PIIA, Politics, Singapore Summit, Trump