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Does aid cause conflict?

Sep 25

03:00pm to 5:00PM

SDPI, Islamabad

Note: You can also watch live streaming of this
Seminar on internet at our WEB TV
http://www.sdpi.tv/live.

(Concept Note) 

Pakistan has been a major aid recipient from last many
decades. It has witnessed some growth but with increasing inequalities and
social tensions. Donors’ mostly pursue strategic agenda, demand diligence and
impose conditions to win co-operation, while the recipient struggles with the
after effects of the inappropriate strategy and waits for more aid to undertake
expensive reforms. Fragile recipient governments are unable to spend enough on
the social sector or human development.

Donors are also less than ready to deal with the issue
of fungibility or the nature of the regime. Reduction in military expenditure
is the least important interest of the donors and aid money creates room for
governments of poor countries to have the luxury of arms imports and fancy
conflicts. The inflows of aid are highly correlated with arms imports and
military expenditure in Pakistan.

Aid
relaxes the revenue constraint but takes away the power to make or pursue
indigenous policymaking. Due to failure to follow public agenda, there is no
ownership of aid and it makes co-operation between donor and recipient
difficult. Only the donor can make or break the relationship and can deviate
from strategic policy without facing any consequences. This type of the
deviation leaves a vacuum that encourages conflict in society.

Chair: Dr Abid Q. Suleri, Executive Director, Sustainable Development Policy Institute (SDPI), Islamabad

Speaker:

·        
Dr Nadia Tahir, Associate Professor in Economics,
University of Lahore, Lahore

Discussants:

·        
Dr Muhammad  Islam, Dean, Iqra University Islamabad

·        
Dr Younus Jafri, Senior Advisor, Planning Commission of
Pakistan, Islamabad