Abstract
Does aid cause conflict or promote human development? Pakistan has been a major aid recipient as a strategic US ally since the cold war. Growth followed but with increasing inequalities and social tensions. Soviet-Afghan war brought arms and drugs culture. War on terrorism has produced ethnic and religious fractionalization. The relationship between aid, conflict and human development suffers from reverse moral hazard. On the basis of multinomial log it regression, we conclude that donors’ pursuit of strategic agenda creates conflict and low human development. Donors demand diligence and impose conditions to win cooperation and trust, while the recipient struggles with the after effects of aid shocks and waits for more aid to undertake expensive reforms.
Nadia Tahir, Pervez Tahir. (2020-2021) Aid Conflict and Human Development in Pakistan, Pakistan Business Review, Volume 22, Issue 4.
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