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| Subsidizing the Pakistani Elite: Aid, Taxation, and Development [i] |
| S. Akbar Zaidi* |
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With high rates of tax avoidance by Pakistan's elite and the rich, tax
payers from countries supporting Pakistan's development initiatives have been
subsiding Pakistan's elite. Pakistan's ruling elite are unwilling and loathe to
tax themselves, and exploit the country's geopolitical vulnerabilities,
extracting rent for many strategic alliances. Powerful and influential western
governments and their leaders parrot the Pakistan-is-too-important-to-fail
mantra, which suits Pakistan's elite perfectly, as the economy is constantly
bailed out. Both Pakistan's elite and western governments are equally to blame
for the absence of more equitable taxation efforts in Pakistan.
[i]A version of this paper has
earlier been presented at the conference on Development Challenges Confronting
Pakistan in May 2011 in Islamabad, Pakistan.
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S.
Akbar Zaidi is a social scientist based in Karachi, Pakistan. He is the author
of a number of books including The New Development Paradigm: Papers on
Institutions, NGOs, Gender and Local Government (1999), Pakistan’s
Economic and Social Development: The Domestic, Regional and Global Context (2004)
and Issues in Pakistan\'s Economy (2005).
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