Exchange, Not Supply: USA Policy Review
Mukhtar Kareem
Quetta: The days had long passed when the USA was the financial tap of the world and from where economically poor countries used to fill their economic pails.
In 1960, the USA’s contribution to the world gross domestic product (GDP) was 40 per cent, which means in dollar terms, out of every ten dollars in the world, four were held by the USA. Even during the Reagan administration in 1981, the USA’s share of global GDP was 34 per cent which was significant.
Currently, the USA only holds around 22 per cent of world GDP. And the country is in a serious debt crisis, amounting to $31 trillion.
According to various reports, the USA faces a number of internal challenges, ranging from providing services to its lavish spending populations to meeting the growing challenge of a stagnant economy. These indicators do not mean that the US GDP has declined but a relative decline can be seen.
Externally, the USA is habitual of having a leading position in the world and for this desire, she has to spend from her impecunious purse. The extra-territorial interests of the USA also force her to play on every significant stage of world politics.
As the USA has always been obsessed with having a significant number of countries in its own bloc, she cannot achieve this goal without spending money, sharing technology and helping poor countries in terms of education, training and social programmes.
Each year, the USA spends around $50 billion on foreign countries to assist them economically and militarily. This amount is specifically allocated to gain goodwill and friends.
This precarious scenario seems to have shifted the focus of the USA from allying with poor and unstable countries that can tolerate dictations for their own needs to allying with stable countries that can stand on their own and cooperate on shared interests.
The USA seems to be less interested in counterparties whose economic enigmas need respite on every occasion. In short, the USA seems to be more interested in the exchange of ideas than the supply of goods, technologies, ideas, and investments.
Recent alignments of the USA with India, Australia, Indonesia, and other countries indicate the same. These counterparties can exchange many elements in their cooperation and engagements. The USA is expected to benefit from such alliances because the economic and political situations of the countries it is currently allying with are stable and simultaneously experiencing growth.
When it comes to Pakistan, it is either unable to understand the shift or incapable of exchange. During the Cold War and shortly after 9/11, Pakistan became an inveterate demander of military and economic aid, and in exchange for this aid, Pakistan provided bases for countering terrorism.
Currently, the USA is not as obsessed with terrorism as it once was after 9/11; therefore, Pakistan seems to have lost relevance for her.
Pakistan is currently not in a position to make investments in the USA to help the USA diversify its supply chains and open space for American products which are very expensive for the poor people of Pakistan, in its markets.
Pakistan can also not be willing to participate in the American Indo-Pacific policy that aims to contain China – a strategic partner of Pakistan.
As a shift in American policy towards alliance can be noticed, it becomes necessary for countries that desire American friendship to adopt the ‘policy of exchange’ with the USA. The USA is not in a position to supply the economic needs of poor countries. Adopting a policy of exchange, especially for counterparties like Pakistan, is tedious.
Because this policy demands the creation of an industrial and knowledge base that takes time, however, fixing the internal deficiencies which also include policies towards cooperation with the USA, is the only road to Washington. This is the only way to add to the economic charm of the country for Washington.
An interesting, thought provoking piece. The American foreign policy is guided by a number of internal pull and push factors.
Of course, USA’s economy is under huge pressure as the writer has very ably indicated. But this is a least of America’s worry as all major economies are going through a similar phase.
However, USA’s position in the international circles is of a greater concern with Russia and China using their hold to narrow and squeeze American influence. Whereas Russia is more belligerent in use of its economic, political and military power to maintain its position, China is more subtle in maximisation of its standing in the international circles through financial investment and bilateral trade agreements. Lurking behind is also India with its growing economic base although bulk of its population continues to operate on or below the poverty line. The super powers chose to ignore this. India is strategically exploiting the deepening rivalries between the three existing super powers. American wants to lure India away from Russia whilst using it as a buffer against China. Hence, the recent red carpet welcome given to Modi.
Russians see an old an ally with socialist principles
Biden , helped by the Ukraine war, seems to have regained its control and influence in NATO which had been greatly damaged by the Trumps contempt for the institution. Ever since, coming into power Biden has been following the repair policy.
The Pakistan’s position regarding the three super power with India strategically poised to take advantage of any lapse on Pakistan’s part is extremely delicate. Pakistan is caught between the sea and the hard rock when it comes to its ties with China , it neighbour and an Allie and America also a historical ally. For both China and America pakistan is a strategically placed security state, neither can afford to let it go totally to the side. The big question is whether Pakistan can take advantage of this as India seems to has done? With the current internal malaise, I doubt it.