Showing posts with label Cold War era. Show all posts
Showing posts with label Cold War era. Show all posts

Thursday 23 June 2022

Pakistan one of the best customers of IMF

According to a report by The Express Tribune dated April 29, 2019, Pakistan has borrowed around SDR 13.79 billion from the International Monetary Fund (IMF), out of which 47% of the loans were secured by PPP, followed by PML-N at 35%, while the military dictatorships lag behind with a mere 18%.

Pakistan joined (IMF) in 1950 as newly established country was facing fiscal problems since its creation in 1947 from British rule. In 1958, for the first time, Pakistan went to IMF for bailout. For this, IMF lent out US$25,000,000 ‑ originally the loan-amount is given in SDR; for this article it is considered to be 1SDR = 1USD to Pakistan on standby arrangement basis on December 08, 1958.

Pakistan again went to IMF in 1965. This time, IMF gave US$37,500,000 to war-torn nation on 16 March 16, 1965.

Three years later, Pakistan again went to IMF for third time for balance of payment problems for which IMF gave US$75,000,000 on October 17, 1968.

In 1971, Pakistan lost its Eastern half, East Pakistan, after the Bangladesh Liberation War. This war caused huge loses to Pakistan. For which, Pakistan got loan a loan of US$84,000,000 in 1972, second loan of US$75,000,000 in 1973 and fourth of US$75,000,000 in 1974 to meet its growing needs. 

In 1977, a standby arrangement of US$80,000,000 was made on urgent basis. 

Three years later, an extended facility of US$349,000,000 was reached in 1980.

Struggle of Pakistan continued, as Pakistan withdrew another US$730,000,000 as Pakistan was already part of US cold war against Soviet Union.

Another era was started, as democracy came back to Pakistan but old ways to handle economy poorly continued. 

Benazir Bhutto government withdrew US$194,480,000 as standby arrangement and another US$382,410,000 in shape of structural adjustment facility commitment on December 28, 1988.

In 1990, government of Nawaz Sharif decided against going to IMF instead arranged donations from friendly countries like Saudi Arabia.

In 1993, Benazir Bhutto again came to power and her government again went to IMF and reached an agreement to get standby arrangement of US$88,000,000 on September 16, 1993.

Poor handling of economy continued by her government as she got loan of US$123,200,000 under the extended fund facility and another US$172,200,000 were borrowed on February 22, 1994.

During that period economy of Pakistan remained in poor shape and Pakistan had to go to IMF again for record third in the period of Bhutto government.

This time Pakistan got an amount of US$294,690,000 on 13 December 1995.

 In 1997, Nawaz Sharif came to power. Benazir Bhutto government was sacked and left economy of Pakistan in worst shape.

Sharif government went to IMF on urgent basis for the first time and reached an agreement to get two amounts of US$265,370,000 and US$113,740,000 on October 20, 1997.

In 2008, Yousaf Raza Gillani received a US$7.6 billion loan from the IMF.

In 2018, Imran Khan became Prime Minister of Pakistan. For this, they arranged friendly loans from Saudi Arabia, United Arab Emirates and China to avoid tough IMF conditions. 

In 2019, when economic conditions worsened, they went to IMF for the twenty-second time for a loan of US$1 billion. 

IMF gave loan based on conditions such as hike in energy tariffs, removal of energy subsidy, increase in taxation, privatization of public entities and fiscal adjustments to the budget.

Sunday 29 May 2022

Regime Change: Best Pastime of United States

It may be recalled that when Imran Khan’s government was removed through ‘non-confidence vote’ he openly alleged that the United States was behind this. Although, the US administration categorically denies having played any role, many in Pakistan don’t accept the denials.

This morning I was lucky enough to find an article an article by by Lindsey A. O'Rourke published in The Washington Post as back as December 23, 2016 which stated that the United States tried to change governments of other countries 72 times during the Cold War era.

The CIA has concluded with “high confidence” that Russia intervened covertly during the presidential election to promote Donald Trump’s candidacy. They based this assessment on the discovery that Russian security agencies had hacked the Republican National Committee, the Democratic National Committee and the Hillary Clinton campaign — and had released selected Democratic documents to WikiLeaks to undermine Clinton’s candidacy.

However, it must be remembered that The US has a long history of hacking other democracies. If true, Russia’s actions are reminiscent of Cold War covert political warfare, with an Internet-era twist. Following are six key things the research uncovered about those efforts.

Obviously, studying covert interventions is tough. By definition, the operations are designed so that the intervening state can plausibly deny it was involved, deflecting blame onto other actors. It’s impossible to get reliable cross-national data, given how widely countries vary in their rules about government transparency and freedom of the press. Add in flourishing conspiracy theories, and it can be hard to separate historical fact from fiction.

To tackle these problems, the writer has spent the past several years investigating allegations of US-backed covert regime changes during the Cold War. She has done so by going through relevant documents from the National Archives, National Security Archive and presidential libraries. Fortunately, the combination of the US government’s declassification rules, congressional inquiries and journalistic coverage has revealed a great deal about these operations.

1. From 1947 to 1989, the United States tried to change other governments in other countries 72 times

That’s a remarkable number. It includes 66 covert operations and six overt ones. These 72 US operations were during the Cold War — meaning that, in most cases, the Soviet Union was covertly supporting anti-US forces on the other side. However, a look at these US actions allows us to survey the covert activities of a major power, so we can glean insight into such interventions’ causes and consequences.

2. Most covert efforts to replace another country’s government failed

During the Cold War, for instance, 26 of the United States’ covert operations successfully brought a US-backed government to power; the remaining 40 failed.

Success depended in large part on the choice of covert tactics. Not a single US-backed assassination plot during this time actually killed their intended target, although two foreign leaders — South Vietnam’s Ngo Dinh Diem and the Dominican Republic’s Rafael Trujillo — were killed by foreign intermediaries without Washington’s blessing during US-backed coups.

Similarly, covert actions to support militant groups trying to topple a foreign regime nearly always failed. Of 36 attempts, only five overthrew their targets. Sponsoring coups was more successful; nine out of 14 attempted coups put the US-backed leaders in power.

3. Meddling in foreign elections is the most successful covert tactic 

The author found 16 cases in which Washington sought to influence foreign elections by covertly funding, advising and spreading propaganda for its preferred candidates, often doing so beyond a single election cycle. Of these, the US-backed parties won their elections 75% of the time.

Of course, it is impossible to say whether the US-supported candidates would have won their elections without the covert assistance; many were leading in the polls before the US intervention. However, as the CIA’s head of the Directorate of Intelligence, Ray S. Cline once put it, the key to a successful covert regime change is “supplying just the right bit of marginal assistance in the right way at the right time.”

In an election where Clinton won the popular vote by 2.86 million but lost the electoral college, thanks to 77,744 voters in Wisconsin, Michigan and Pennsylvania.

It’s impossible to say for sure, but the numbers were certainly close. If Clinton had replicated Obama’s 2012 turnout in those three swing states, she would have won them by more than half a million votes. Even if she had been able to convert just one percent of these states’ Trump voters, she would have won by a combined 55,000 votes.

The Clinton campaign undoubtedly had many strikes against it: high unfavorability ratings, inaccurate polling, FBI Director James B. Comey’s letter and strategic mishaps. Still, Russia’s covert campaign probably compounded these problems. Thanks to WikiLeaks’s slow trickle of hacked emails, the news cycle throughout October was flooded with embarrassing anti-Clinton stories, preventing her from building momentum after the debates.

4. Regime changes rarely work out as the intervening states expect

A Trump presidency might not be as much of a boon for Russia as hoped or feared. Clinton warned in the third presidential debate that Putin “would rather have a puppet as president of the United States.”

However, as the writer showed in a recent International Security article with Alexander Downes, leaders installed via regime change generally don’t act as puppets for long. Once in power, the new leaders find that acting at their foreign backers’ behest brings significant domestic opposition. They therefore tend to moderate their policies or turn against the foreign backer completely. In fact, there are already reports that the Kremlin is feeling “buyer’s remorse” over Trump’s victory, given his unpredictability.

5. Covert regime change can devastate the target countries

Author’s research found that after a nation’s government was toppled, it was less democratic and more likely to suffer civil war, domestic instability and mass killing, at the very least, citizens lost faith in their governments.

Even if Russia didn’t make the difference in electing Trump, it successfully undermined confidence in US political institutions and news media.

As historian Timothy Snyder pointed out, “If democratic procedures start to seem shambolic, then democratic ideas will seem questionable as well. And so America would become more like Russia, which is the general idea. If Trump wins, Russia wins. But if Trump loses and people doubt the outcome, Russia also wins.”

6. The best antidote to subterfuge is transparency

States intervene covertly so that they don’t have to be held accountable for their actions. Amid reports that Russian hackers have been emboldened by the success of the DNC hack, exposing Moscow’s hand is the first step toward deterring future attacks against the United States and upcoming elections in Germany, France and the Netherlands. It may also be the best way to dispel disinformation and restore faith in US democratic institutions at a time when 55% of Americans say they are troubled by Russian interference into the election,

The United States is beginning this effort. Congress has announced bipartisan investigations and Obama ordered a comprehensive report on covert foreign interference into US presidential elections going back to the 2008 election.

Given how serious these allegations are, and especially considering that President-elect Trump rejects the intelligence community’s consensus conclusion, releasing these reports publicly before the inauguration could help set US democracy right.