Although Pakistan has moved increasingly into the orbit of China, the United States should continue to be engaged with Pakistan, a once staunch ally, as Pakistan is a nation to be reckoned with. It is a nuclear power, has the world's sixth largest army, and is of great geopolitical importance, bordering on several of Asia's conflict zones. In addition, Pakistan is the world's fifth most populous country, with enormous reserves of underutilized human capital. Of the population, 64% is under age 30, a cohort that could be ripe for radicalization, or one that could, given economic opportunities, build a modem, progressive Pakistan.

One of the major ways to stabilize Pakistan is to improve living standards and to make average citizens stakeholders in the success of their country. To accomplish this, Pakistan will need to develop a long-term strategy to create 21st century industries (e.g., pharmaceuticals; green technologies, such as solar heat and electricity, advanced building insulation, and energy recovery systems; transportation; and healthcare) and to educate and train a workforce for those industries, which would counter growing

Chinese domination and allow Pakistan to compete successfully in the global marketplace through increased exports and foreign investment.

Contact Diana at dmacarthur@kewa.com.