The relationship between the United States and Pakistan has been redefined repeatedly since Pakistan's independence in 1947. It will continue to be strained by mutual distrust, internal threats to Pakistan's stability, Pakistan's relations with its neighbors and militants, and the U.S. role in Afghanistan beyond 2014. But there is a growing recognition that the U.S.-Pakistan relationship is one of mutual necessity--"transactional" rather than "strategic." This pragmatic recognition, along with recent developments (such as the peaceful transfer of power between elected civilian governments,...

Corruption remains a priority area for both the private sector and development implementers. However, there is no consensus on actionable steps toward addressing it on a global level. This issue is especially important in the context of international trade and development as the private sector plays an increasing role in development outcomes. Moreover, countries with the weakest governance structures tend to be those that most need economic development. This report reviews the literature surrounding corruption; identifies the opportunity costs of corruption; and posits actionable steps for...

Pakistan's economic crisis is one of the main sources of its instability, but government and donor efforts to stabilize and grow its economy have so far been inadequate. One of the barriers to investing in Pakistan's private sector has been the perceptions of risk due to insecurity and corruption. This report suggests that opportunities for economic cooperation are hidden among those real risks. It reviews a number of sectors, focusing on small and medium-size enterprises, where foreign investors might find opportunities for joint ventures and investments, including the stock market,...