Great read from “Spengler”, especially on the youth bulge in Pakistan - the already failed state:
[quote]Pakistan has one of the world’s youngest populations and an enormous capital requirement. Young people borrow from old people, and countries with young populations should import capital from countries with aging populations. That is out of the question, for the world markets have turned Pakistan into a pariah.
The cost of credit protection on Pakistani sovereign debt is now more than 3,000 points (or 30%) above the benchmark London Interbank Offered Rate (LIBOR), reflecting a complete shutout from capital markets.
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Pakistan is about to become a failed state, and Iran and Turkey will be close behind. As I commented to Chan Akya’s report of December 2 on this site (see The hottest place in the world), Pakistan’s military-age population is far greater than those of other Muslim military powers in the region.
With about 20 million men of military age, Pakistan today has as much manpower as Turkey and Iran combined, and by 2035 it will have half again as many.
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Half the country is illiterate and three-quarters of it subsists on less than $2 a day, according to the World Bank. That is to say that Pakistan’s young men are more abundant as well as cheaper than in any other country in the region. Very poor and ignorant young men, especially if their only education has been in Salafi madrassas, are very easy to enlist in military adventures.
The West at present is unable to cope with a failed state like Somalia, with less than a tenth as many military age men as Pakistan, but which nonetheless constitutes a threat to world shipping and a likely source of funding for terrorism.
How can the West cope with the humiliation of Pakistan’s pro-American president and the inability of its duly-constituted government to suppress Islamist elements in its army and intelligence services?
For the moment, Washington will do its best to prop up its creature, Zardari, but to no avail. The alternatives will require the West to add several zeros to whatever the prevailing ceiling might be for acceptable collateral damage.
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