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Afghanistan and broken promises
By Hooman Peimani

Last week, Afghan President Hamid Karzai threatened to resign if Afghan warlords refused to transfer to his barely-functioning government over US$500 million in collected taxes. His "threat" only brought smiles to the faces of the warlords, the practical rulers of Afghanistan apart from the capital Kabul, who reportedly promised cooperation with the Karzai government only to add another item to their long list of unfulfilled promises. However, the event reminded the international community one more time how forgotten Afghanistan has been left on its own to deal with its numerous economic problems as most international donors have failed to honor their pledges of sustainable adequate financial aid.

In the absence of the required funds to address immediate problems and to begin the badly needed reconstruction program, the worsening economic situation has created grounds for the continuation of all the ills of the pre-Karzai era. Taliban/al-Qaeda have regrouped and expanded their military operations against American forces and those of its Afghan and non-Afghan allies. Beside inflicting daily causalities on those forces, they now even capture small cities for a short while to show their power. The Karzai administration is practically non-existent outside Kabul, while it can only survive in that city thanks to 5,000 foreign troops; its president can only trust his American bodyguards with his life.

A major, if not the major, internal reason for the worsening political, economic and security situation is the inability of the Afghan central government in tackling its country's impoverishment. Not only has Afghanistan's reconstruction not begun in a meaningful way, the amount of available foreign aid has been less than the financial assistance promised in the January 2002 Tokyo conference. The donors participating in that conference pledged over $4.5 billion towards Afghanistan's reconstruction to be provided to the Afghan government over five years. However, most of the pledged assistance will most likely not be honored. This became evident in 2002 as only about 50 percent of the promised amount ($1.8 billion) for that year actually reached Afghanistan.

Although this amount was less than anticipated, it could still have made a significant positive impact had it been given to the Afghan government. The latter could have spent it on necessary projects to address immediate pressing needs, while providing for the required infrastructure to embark on a reconstruction program. However, the largest chunk of the internationally-provided funds was spent not on the badly needed projects, but on the expenses related to the settlement and operation of various United Nations agencies and non-government organizations operating in Afghanistan. Such expenses included those of their various work and residential facilities, the hefty salaries for their mainly Western employees and their spotless new air-conditioned cars.

This reality has put the Karzai government in a difficult situation. On the one hand it totally depends on foreign assistance, and as such it cannot alienate donors even when they do not fulfill all their promises. On the other hand, it cannot remain silent while the international community assumes the launching of an adequate internationally-funded reconstruction program in Afghanistan. As a result, Karzai has confined himself so far to expressing his disappointment on two major occasions.

For the first time, he mentioned the foreign aid problem during his speech at the annual meeting of the Economic Cooperation Organization held in Istanbul in October last year. He described "how upset he was to hear earlier [in 2002] that $890 million had been spent on aid in Afghanistan, but that $800 million of it had gone to the UN and other aid agencies".

As the problem persisted despite his expression of disappointment, this year Karzai made an appeal to donors to avail their financial assistance directly to his government rather than providing it to multinational entities, such as UN agencies, and NGOs. In a March 6 speech at a business meeting in New Delhi, he stated: "With regard to the reconstruction activity, we can say that we are over 50 percent satisfied. With regard to the money coming through the Afghan government channels, we are unhappy. "We're really looking forward to an increase in the direct input into the Afghan governmental system for reconstruction. So our response is a mixed one. Thank you for your help, but do it more through our government."

After over two decades of civil war, Afghanistan requires extensive foreign aid and investment to create a viable economy through a reconstruction program. However, most Western counties, which have promised not to leave the Afghans alone in the post-Taliban era as they did when the Soviet Union collapsed in 1991, are yet to honor fully their promises. Generally speaking, Western foreign aid has only helped prevent a humanitarian crisis in Afghanistan, while its has failed to provide for the reconstruction program at the required scale. Apart from the Afghan authorities, even the American military figures stationed in Afghanistan, such as Lieutenant-General Dan McNeill, have complained about this failure, which undermines efforts to stabilize the country. As the chief of the American forces in Afghanistan, he criticized Western donors in his April 23 remarks.

Added to the unresolved security problems, the war against the remnants of the Taliban/al-Qaeda and the destructive activities of the Afghan warlords, the mentioned foreign aid problem has contributed to a negligible progress in reconstruction. After over 18 months of foreign-assisted reconstruction efforts, Afghanistan still requires major investments to create the vital components of an infrastructure, namely sanitation, water supplies, power generation, health services, telecommunications, road/railroad network, education and security services. So far, small-scale projects have accounted for the majority of the reconstruction initiatives with a limited impact on Afghanistan's economic recovery.

In the absence of a functioning formal economy, unsurprisingly the black economy, with its various mushrooming illegal activities, including drug production and trafficking, has become the only reliable source of income and employment for war-torn Afghanistan. The latter further expands insecurity and lawlessness with a preventive effect on economic revitalization.

Against this background, Karzai's threat only reminded the international community of his government's struggle to survive and to run Afghanistan. It also offered the majority of the Western media a second of news different from the disappearing reporting on occupied Iraq, now ironically a source of unity between the coalitions of the "willing" and the "unwilling". As for the American-backed warlords, they simply did not care.

Dr Hooman Peimani works as an independent consultant with international organizations in Geneva and does research in international relations.

(Copyright 2003 Asia Times Online Co, Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)
 
May 27, 2003



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