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Pakistan's economic crisis is one of the main sources of its
instability, but government and donor efforts to stabilize and grow
its economy have so far been inadequate. One of the barriers to
investing in Pakistan's private sector has been the perceptions of
risk due to insecurity and corruption. This report suggests that
opportunities for economic cooperation are hidden among those real
risks. It reviews a number of sectors, focusing on small and
medium-size enterprises, where foreign investors might find
opportunities for joint ventures and investments, including the
stock market, financial services, information and communication
technologies, agriculture, consumer goods, and private education.
Prospects for growth in these sectors derive from Pakistan's large
and growing population, consumer spending trends, and other
comparative advantages. This report should be treated not as a
guide to investing but as a study of where U.S.-Pakistan policy
dialogues might focus on connecting investors with entrepreneurs.
Corruption remains a priority area for both the private sector and
development implementers. However, there is no consensus on
actionable steps toward addressing it on a global level. This issue
is especially important in the context of international trade and
development as the private sector plays an increasing role in
development outcomes. Moreover, countries with the weakest
governance structures tend to be those that most need economic
development. This report reviews the literature surrounding
corruption; identifies the opportunity costs of corruption; and
posits actionable steps for the private sector to effectively
address corruption worldwide, as well as ways for private-sector
actors to work with governments to achieve this goal.
Once the United States withdraws most or all of its forces from
Afghanistan, what issues are likely to continue to be of concern to
U.S. policymakers in South Asia? What regional dynamics are likely
to affect their ability to achieve policy priorities there? While
the United States and its coalition partners have focused primarily
on Afghanistan and Pakistan over the past 12 years, the strategic
dynamics most likely to be relevant over the next 12 years will
probably be clustered around relationships linking Pakistan, India,
and China. The authors of this report propose a framework for U.S.
policy in South Asia centered around that cluster rather than the
more common cluster of Afghanistan, Pakistan, and India. The report
includes an analysis of U.S. policy priorities, contingencies, and
regional dynamics in South Asia.
The relationship between the United States and Pakistan has been
redefined repeatedly since Pakistan's independence in 1947. It will
continue to be strained by mutual distrust, internal threats to
Pakistan's stability, Pakistan's relations with its neighbors and
militants, and the U.S. role in Afghanistan beyond 2014. But there
is a growing recognition that the U.S.-Pakistan relationship is one
of mutual necessity-"transactional" rather than "strategic." This
pragmatic recognition, along with recent developments (such as the
peaceful transfer of power between elected civilian governments,
the military's declining prestige, and the political
establishment's growing willingness to engage constructively with
India) and ongoing pressures (such as Pakistan's youth bulge and
energy crisis), give the United States and Pakistan a chance to
focus on areas where cooperation is actually possible: civilian
aid, trade relations, and support to Pakistan's private sector. The
author based these findings on interviews and rountables involving
more than 220 officials and experts during a two-month field visit
in Pakistan in late 2012.
The CSIS Working Group on Private-Sector Development in Fragile,
Conflict-Affected, and Violent States identifies tools available to
the international business community and the U.S. government to
assist these countries, as well as the gaps in needed resources.
Participants examined cases from Afghanistan, Iraq, Burma, and
Liberia to glean examples of successes and failures in
private-sector development, with the goal of identifying potential
roles for host governments and the international private sector.
This report presents the results of those discussions.
Every three weeks, a major political crisis begins somewhere in the
world. The United States intervenes in less than a fifth of them.
But that is still a new U.S. intervention about every two months.
And almost all of them are civilian interventions; less than a
third involve the military. CSIS has released a new dataset of
"potential transitions" worldwide, covering responses to 758
political crises between 1989 and 2010, including 134 civilian and
military interventions. The report describes the dataset and
presents the results of the initial analysis. Its recommendations
focus on the disconnect between the high demand for civilian power
and the support civilian institutions have for responding to such
crises, and on the importance of caution and moderation when
deciding whether and how to intervene.
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