Impact of Corruption
AfPak Governance Corruption: The deathly blow for infrastructure development
January 8, 2016
Nathaniel Sukhdeo – Team Leader following AfPak
Ashley Audette – Primary Article Contributor following AfPak
Keywords: Afghanistan, Pakistan, AfPak, corruption, economic development, transportation, infrastructure
Advocates for innovation in the AfPak region, have been suffering at the hands of governance corruption. This is sparked not only by political disenchantment among an already riotous population, but also the endless negative impact this has had on infrastructure development. The patience of voters in an already unstable democracy is lost throughout this endless cycle of corruption. The apathy is fuelled by elected officials, who come into power with promises of change, only to deliver minimal to no infrastructure improvements, while engaging in corruption.
In Pakistan, with the country’s already double digit and growing inflation rate as well as surging political uncertainty, the lack of commitment by both the Pakistani government as well as its foreign investors, is contributing to the degradation of transportation infrastructure. The uncertainty began with the former Bhutto government’s corruption scandal; a scandal sparked by privately owned power plants by investors. The public scrutiny over the lack of transparency among political elite, combined with recurrent power outages, was exacerbated by the current regime’s liquidity problems. Protests incited by the constant corruption have also contributed to the ongoing infrastructure detriment, by means of destruction of public property, infrastructure, and death. The lack of transparency within governing bodies is detrimental to the prospects of foreign investment; a much needed attribute to pump an already faltering economy. The overall lack of support for infrastructure development consequently impedes the ability to attract foreign investors, while at the same time stagnates the local economy.
Corruption factors into a country’s overall ability to attract foreign investors; a state overly plagued by corruption is thus is unable to fund infrastructure due to the dwindling economy. While the short-term future for the AfPak region seems bleak, the opportunity for influential foreign investment by the Chinese through the China-Pakistani economic corridor is a means for massive economic stimulus to the economy as a whole. The Economic Corridor will provide the region with a $46 billion investment plan that would contribute greatly to infrastructure, telecommunications, and energy development. Despite a negative short term forecast for Pakistan’s economy, the long-term projections show that the Chinese investment plan is bright. As such, it’ll be a precedent setting regional economic agreement, which will demonstrate to foreign investors that Pakistan is a viable investment opportunity.
Afghanistan, much like Pakistan, has its own issues in dealing with corruption and lack of foreign investment. Differently, however, is the fact that Afghanistan’s major issue obstructing infrastructure development is their post-war reconstruction. Afghanistan has one of the world’s worst roadway systems, possesses no railway system or seaports due to its landlocked position.
Regional conflicts in the Southeast, plague a vast area of Afghanistan that requires extensive infrastructure development. The ongoing conflict, coupled with a weak national security plan, degrades any prospect of infrastructure development. Corruption has also played its part in seriously obstructing the international community’s efforts to stabilize the region, as millions of dollars allocated in aid and reconstruction has often gone to waste and misuse. With perpetual corruption reoccurring in the region, any sign of encouraging foreign investment to fuel transportation infrastructure in the near future seems bleak.
