COUNTRIES have historically used a number of ways to destroy their rivals. In modern times, destroying the rivals by destroying their economies has been a tool used more often than any other. This includes using economic hitmen to do the job. Developed states often send these hitmen to underdeveloped countries to carry out their nefarious designs. This enables them to maintain their hegemony over the struggling economies. The colonialists used to take away the natural resources of their colonies. The imperialists destroy the targeted economies so much that they please their masters to help them take away even the family silver. All this happens voluntarily. Nobody uses any force. The victims keep digging their own holes. This is smart, right?

The developed states do not want the developing ones to prosper economically as they will no longer be intimidated by their dominance, and will deny them the abundant resources they are bestowed with. The developed states use economic hitmen to convince the leaders of developing nations by luring them into never-ending loan packages and devious economic agreements, making them dependent by getting control of their economy.

The International Monetary Fund (IMF) does the same job institutionally, replacing the need of the hitman. Majority of the IMF loan recipient countries, such as Argentina, Zimbabwe, Greece and Venezuela, are struggling with their debts as it is not easy to achieve the economic targets set by the IMF. These countries have long been in a relationship with the IMF, but their economic conditions have not improved. In fact, the situation has deteriorated a great deal.

Pakistan, too, has gone to the IMF 23 times for bailout packages. However, the economy continues to struggle. The recent agreement was largely taken as a sign of positivity in Pakistan, as the loan is expected to provide a financial boost to the crumbling economy of the country. Unfortunately, this perception is far from the truth. We can move forward only by making a prudent use of the loan facility, repay it in time, and then never to go down that road again.

No country can achieve economic prosperity by relying on loans and aid. Such a target can be achieved only through self-reliance, industrialisation, investing in human capital, digitalisa-tion, utilisation of resources, and by encouraging financial discipline. The critical value of keeping the economic hitman at bay cannot be overstated.

Shuja Ahmed Awan
Shahdadkot

Published in Dawn, November 8th, 2024