machete | the blog

There is no doubt that the US has been earning itself a poor international reputation…and this most recent decade of bad PR has definitely helped to negate just about everything ‘good’ the US has sponsored throughout the world. For example, USAID is one of the main reasons behind the success of two of Pakistan’s most elite business schools, including the Lahore University of Management Sciences (LUMS). It is also the source of funding for efforts to improve maternal health and water quality - just two of the terrible ailments that keep the bulk of Pakistanis at the very bottom of the pyramid.

There are many potential reasons for the current dilapidated state of the nation, in fact, the left, right, conservative and liberal populations often have overlapping theories. Each political party selects facts that appreciate their respective agendas, whether it’s the sixty years of overwhelmingly out of touch rule, a consistently increasing percentage of poverty (currently at least 25%), or the shameful 50% adult literacy rate - all ideas seem to point to a consistently increasing divide between the upper class (ruling class) and lower class (majority).
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An interesting change in the Failed States Index (published by The Fund for Peace) is #9 Pakistan. Pakistan was at #13 in 2007, from a quick analysis of the index it is clear that a huge economic downturn is the main reason for Pakistan’s move to a premier position amongst the Top 10 failed states. There are no surprises in the top 10 for 2008 as they are the usual suspects…as a matter of fact the top 10 have remained pretty much the same since 2006…Haiti left the Top 10 in 2007 and Guinea got pushed out simply because of Pakistan’s horrible year.

Here’s the Top 10 (No surprises here!):

1. Somalia
2. Sudan
3. Zimbabwe
4. Chad
5. Iraq
6. D.R. Congo
7. Afghanistan
8. Cote d’Ivoire
9. Pakistan
10. Central African Republic

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A Natural Gas Pipeline that will connect these three critical nations.
Iran, Pakistan, and India, collectively known as the IPI, are very close to finalizing the ‘Peace Pipeline’ plan that would drop a critical natural gas supply line that would run through the three neighboring countries. As always, there is a catch (or several) - and India is weary of signing on because of the Price Revision Clause being imposed by Iran that would base the price of the natural gas on a formula that utilizes Japan’s gas market as a benchmark. Nevertheless, India’s participation in the ‘Peace Pipeline’ doesn’t seem to matter as much to Iran and Pakistan as they continue bilateral talks that suggest India’s role as merely an added bonus that would sweeten the deal. Pakistan’s ambassador to Iran, Shafkat Saeed, insists that if India rejects the terms of the deal, the oil will be routed through China instead.

�We have informed Iran that we are prepared to transfer Iran�s gas to China through this pipeline should India decide not to join the gas project.� [ Associated Press of Pakistan, Oct 2007 ]

Though India has assured that it will take part in the TAPI (Turkmenistan-Afghanistan-Pakistan-India) gas pipeline - it is clear that the TAPI pipeline is not a replacement for the Iran-Pakistan-India pipeline, and their lack of an absolute decision in light of U.S. pressure is proof that the IPI pipeline stands to bring benefit to the Indian economy.

U.S. Threatens Sanctions on Pakistan if they seal the deal with Iran - Who Cares?
Check out this Business Week editorial from June of 2005 that demonstrates the United States’ declining ability to ‘demand’ U.S.-friendly international policies. The U.S. perhaps using scare tactics, has mentioned that investment sanctions are a possibility for India and Pakistan should they join hands with Iran on this business deal - But who’s economies are at stake on a local level? There was a time when the U.S. could influence just about any nation to favor U.S. interests - either by the diplomatic efforts of our 20th century leadership or brute force.

Russia doesn’t care.
“Russia’s Gazprom has established a branch office in Islamabad to participate in IPI project (Press TV Iran, Oct. 2007)” Furthermore, Russia’s president Vladimir Putin issued a statement last week to confirm that he will continue to cooperate with Iran on their nuclear program, identified as a deadly threat by the United States.

China doesn’t care.
Chinese officials continue to insist that sanctions are not the solution and will only complicate the situation - and as a permanent U.N. Security Council member they have rejected any and all U.S. involvement in Iran.

And of course…Iran doesn’t care.
Mr. ‘what me worry?’ himself, President Ahmadinejad, is not worried about U.S. sanctions. As a matter of fact a senior Iranian military commander has warned that the Iranian Revolutionary Guard will carry out suicide bombings throughout the Persian gulf if “necessary.”

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