IMF Stabilization Programs and the War on Terrorism: Conflicting or Complementary Objectives in Pakistan?
Abstract
Because it is one of the front-line states in the war on terrorism, Pakistan's economy and economic management will be tested to the limit. Not only will the country have to likely allocate an increasing amount of resources to defense and security, it will also have to generate rates of growth sufficient to begin lifting large segments of the population out of dire poverty, a potential breeding ground for terrorism. A related weighty task is the development of strong governance institutions capable of facilitating the country's transition out of poverty (Bremer and Kasarda, 2002). The reforms introduced by the Musharraf administration after seizing power in October 1999 are clearly designed to address many these problems, including the country's massive poverty, stagnant economic growth, deteriorating institutional framework and weak governance structures. A day before being sworn in for a new five-year presidential term that he arranged under a much criticized referendum, General Musharraf noted that the next five years were very important for Pakistan and hoped that the new government would take advantage of the "sound macro-economic policies" framed by his regime. "If Pakistan follows the course and implements the strategy that has been crafted after much deliberations and with great care, dividends would soon be there for us to reap," he stated, further adding that his administration had "pulled a rudderless ship out of the storm" and "set it on full sail" (Dawn, November 17, 2002). In this regard, he noted that he and his colleagues took pride in the fact that after more than two decades of stagnation, they had "brought the country to a take-off stage" and it was now time for the elected government to "build on the bricks laid by his team." Finally, he explained that he had taken certain difficult decisions in the larger and long-term interest of the country, and particularly, in the interest of its economic and political stability.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 02, 2002
- Accession Number
- ADA524560
Entities
People
- Robert E. Looney
Organizations
- Naval Postgraduate School