Contrasting Economic Strategies of Pakistan, Sri Lanka, and the United States: Insights from the Trump Administration Era

Abstract

This study conducts a comparative analysis of the economic strategies employed by Pakistan, Sri Lanka, and the United States during the Trump administration era (2017–2021), a period characterized by increased economic nationalism, changing trade regimes, and intensified geoeconomic competition. Using a qualitative research approach, the study relies on secondary sources, including peer-reviewed academic literature, policy reports, official government documents, and reputable international publications. Due to time and logistical limitations, primary data collection methods were not employed; instead, the research focuses on interpretive and contextual analysis to examine the policy directions, strategic priorities, and structural constraints that shape each nation’s economic behavior. The analysis investigates how economic nationalism manifested differently across these three unequal economic systems. In the United States, protectionist trade policies, tax reforms, and industrial revival rhetoric were pursued from a position of structural power, supported by monetary sovereignty and global financial influence. Conversely, Pakistan’s economic strategy reflected a hybrid approach, balancing engagement with the International Monetary Fund, strategic alignment with China through the China–Pakistan Economic Corridor, and domestic stabilization efforts amid ongoing fiscal and balance-of-payments challenges. Sri Lanka’s economic approach involved debt-led development, infrastructure-driven growth, and strategic hedging among major powers—particularly the United States, China, and regional actors—while facing significant external vulnerabilities. By situating these national strategies within a framework of asymmetric interdependence and small-state political economy, the study demonstrates how similar global pressures resulted in different policy outcomes. The findings show that while economic nationalism provided the United States with policy flexibility, it intensified structural constraints for Pakistan and Sri Lanka, revealing the limits of inward-focused strategies in debt-dependent economies. This research contributes to the comparative political economy literature by illustrating how global power asymmetries influence economic strategy and offering insights into the varied impacts of Trump-era economic policies on both developed and developing countries.