Atanu Dey On India's Development

Disintermediation

Don’t thank me. As an economist, I am duty-bound to propose efficient ways of achieving goals. Here’s the current problem that I was trying to address. Sify.com reports that “ISI wants to double aid to militants.”

Pakistan’s Inter Services Intelligence (ISI) has very recently proposed to double the financial support to terrorist groups operating in Jammu and Kashmir, India’s external intelligence agency Research and Analysis Wing (RAW) has warned in a ‘top secret’ report.


I am not privy to that RAW report, naturally.

A RAW report sent to the Prime Minister and other authorities stated that in a briefing given to President Pervez Musharraf, the ISI stated that the jihadi groups had lost resoluteness resulting in weakening of the so called `freedom movement’ and financial constraints was one of the major factors.

So I have to imagine that the money goes from the Pakistani government, to the ISI, and finally to the terrorists. If you ask me, I think that that is an inefficiently long money supply chain for terrorists. God alone knows how much leakage occurs.

Worse, sometimes there is an additional link to that terrorist supply chain: the money is first given to the Pakistani government, which then hands it over to the ISI, which in turn then gives it to the terrorists. Example: the government of India handed over $25,000,000 to the government of Pakistan in 2005 for funding jihadis. (That post is from Oct 31st, 2005. The follow ups were on Nov 3rd, and Nov 28th.)

So I figured that in the case of India at least, the government of India should bypass the government of Pakistan and the ISI and directly send the funds to the terrorists.

But then another thought occurred to me. The money eventually comes from Indian taxpayers. The chain is Tax-payers to Govt of India to Govt of Pakistan to the ISI to the terrorists. Why not just have a bank account for the terrorists in some Indian bank into which all of us taxpayers can simply deposit part of our earnings, and from which the terrorists could withdraw what they need at will?

How does this new and improved scheme for funding terrorism strike you? Neat, eh?

Post script: I forgot to mention that the Indian government does keep sending aid to Afghanistan. Which is another way that the Indian government funds jihadis. See this report in today’s Hindustan Times: “Pak wanted Afghan jihadis to help in Kargil

“Mullah Mohammad Rabbani, the Afghan President at the time… was asked by Pakistan to provide 20,000-30,000 ‘volunteers’ for the Kashmir jihad. He startled the Pakistanis by offering 500,000!” Shuja Nawaz, whose brother Asif Nawaz was army chief in the 1990s, says in his 585-page Crossed Swords.