Representatives from 23 countries, the so-called "Friends of Democratic Pakistan" gathered Friday in Brussels to discuss possible long-term assistance to help Pakistan recover from this summer's devastating flood. An estimated $43 billion is needed to rebuild and rehabilitate the world's second largest Muslim majority country.
Pakistani officials are disappointed their country has not received more assistance (the U.S. and Europe have already provided close to $1 billion), but donor nations say the Pakistani government needs to do more to implement institutional and economic reforms if the nation is to recover from what U.N. Secretary General Ban Ki-moon called the worst humanitarian crisis in the world today. Nearly 2,000 people were killed and 20 million people were affected by the flooding. Many are still homeless and in need of food and medical care.
Donor countries want to help Pakistan without throwing money into a corrupt black hole. I've suggested in a previous blog that perhaps one way to help is to bypass corrupt government officials by sending aid directly to Christian groups and other non-profit organizations.
People told me during several of my most recent visits to Pakistan that the best way for the U.S. to prevent Pashtuns and other young tribal men from joining the Taliban is to help establish industries in border areas that would employ them. Many join the Taliban not because they are committed to the ideology, but because they need to put food on their tables--the Taliban pay them for their services. That may be easier said than done in unstable areas controlled by Islamic extremists. Few business people would want to invest in areas where company officials could be killed or kidnapped and their buildings firebombed.
So, what can be done to better help Pakistan in the short-run? The European Union is urging countries to implement tariff cuts for textiles, especially for linens and clothing, Pakistan's primary source of export income. Such a move could help increase Pakistan's revenues by $150 million from the EU alone. But reducing the tariffs may be a bit unpopular in the United States. Our textile workers have already lost many jobs and are feeling the pinch of low-cost labor and global competition.
Donor countries also think Pakistan needs to raise more tax revenue. Fewer than 2 percent of Pakistan's 170 million people pay income tax and some of the biggest offenders are members of the government. A Pakistani newspaper reported last month that the prime minister and 25 members of his cabinet have not paid any income tax in the past five years.
Speaking prior to the start of the "Friends of Democratic Pakistan" meeting, U.S. Secretary of State Hillary Clinton called on wealthy Pakistanis to do more to help their nation out of this crisis.
You can watch and listen to her comments here: