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    South Asia
     Aug 5, 2011


Page 2 of 2
US business guru loses Afghan battle
By Mark Perry

As in Iraq, the initiative cost money: $150 million each year to support a 130-person team and a regular shuttle of American and international business executives. By January of 2010, months after Brinkley's initial visit, the Pentagon was buzzing with rumors that the Brinkley team had found "a mother lode" of copper, iron, lithium and other minerals. If exploited, Brinkley said, the discovery would allow the Afghan government to "finance their own security" and economic development - what Brinkley calls "economic sovereignty".

Brinkley's mission still has its detractors, who claim the implementation of the mineral development strategy stands to benefit nearly everyone but Americans. American officials defend the effort. "This is a very traditional society," a long-time South Asia analyst and Brinkley partisan says. "The first son inherits the family business, the second heads to the mosque, the third

 
goes to the Taliban. Carrying a gun puts bread on the table - because there's no third thing. Now there is."

How serious is Brinkley's mineral find? Serious enough to get China's attention. Prior to Brinkley's engagement, in 2008, Metallurgical Corporation of China signed a contract to exploit Afghanistan's copper deposits. Other companies are now following suit.

Fortune Magazine recently reported that last December, JP Morgan, hosted by Brinkley's team, facilitated the first Western investment in a gold mine in northern Afghanistan, a transaction intended to break the ice among international investors.

Several major deposits are slated to be tendered for international investment in the coming months.

And, at Brinkley's urging, the Afghan government recently hired respected law and engineering firms to ensure that assessments of Afghanistan's mineral wealth are done correctly and that the bidding process is transparent. Still, diplomats roll their eyes. "It's naive," one says. "You establish a mine, you build a highway to it, a village springs up and then a town. Wonderful. And who guards the highway - the Americans? The Afghan security forces? It's all fine and good what Brinkley's doing, but it takes generations of work. It doesn't happen overnight."

The disagreement reflects a fundamental difference in approach between the way the government thinks about political stability, and the way Brinkley thinks about it. Experts at the Pentagon and State Departments point out the destabilizing effect Afghanistan's drug trade has on a nation overly dependent on foreign aid, where 97% of Afghanistan's gross domestic product comes from spending related to the foreign military and international donor presence.

Brinkley answers that economic development is the way forward. "Everyone talks about the Afghan drug problem," a Brinkley partisan says, "but the money we're plugging into the country dwarfs the cartels. They account for about $4 billion of income every year - we spent $14 billion in the country. If you're an Afghani, your primary mission in life is to get on the American tit." The judgment is harsh, but accurate: or, as former State Department official Dov Zackheim recently noted, Afghanistan is simply "on the take".

The Brinkley initiative also seems to provide evidence that Americans fight wars not to make the world safe for democracy, but for American companies. Yet, while members of the US Congress (even conservative Republicans) extol the virtues of the free market system, they have consistently voted to disburse American largesse to foreign governments through government agencies.

So how is that working? Congress recently issued the results of US aid efforts in Afghanistan provided through the US Agency for International Development (USAID). The report slammed the efforts as ineffective and wasteful, and focused on short-term stabilization programs instead of longer-term development projects, ie they don't work.

That's unlikely to change anytime soon. Two years ago, the State Department claimed that Brinkley's program violated Title 22 federal requirements, which give the State Department responsibility for providing foreign assistance. The claim caused a sudden dust-up between the two bureaucracies, with military officers criticizing Foggy Bottom for failing to provide the kind of economic support that would most effectively reinforce their military operations.

"There are plenty of dedicated people in the State Department and USAID who risk their lives to help in developing countries," a Brinkley supporter inside of the US Central Command says. "And that's fine. But they're busy handing out money to NGOs. And it just doesn't work. There's no third way - there's no program in the government that actually helps countries sustain their own economies."

In January, congress passed legislation at the behest of the State Department requiring that Brinkley turn over his program to USAID by this summer's end. Almost immediately, key business leaders on his team began leaving. After five years of continual engagement in Iraq and Afghanistan, Brinkley submitted his resignation effective June 30.

The tussle over the Brinkley program had all the subtlety of a testosterone-fueled fistfight between liberals and conservatives - and their stand-ins: the State and Defense departments. But for Brinkley partisans it's a pox on both their houses. "Liberals view the world as some kind of Vermont petting zoo," a Brinkley colleague and Afghan expert says, "while conservatives want to hold seminars on the nobility of the free enterprise system. What a crock: both sides want to promote American values, when we ought to be doing is promoting American products."

The good news is that the debate has recently shifted to a quiet rethinking of the John F Kennedy administration's 1961 decision that gave USAID pride of place in the disbursement of overseas development monies. No one is arguing that USAID is doing a bad job, they're just not doing the right job.

In 2010, USAID was funded to the tune of $20 billion for programs on education, hunger, democracy promotion, conflict mitigation, counter-narcotics, environmental programs (and dozens of others). They're all worthy of funding, but they have nothing to do with promoting American business or exports.

At the same time that USAID funding is going to overseas development, an embarrassing pittance is set aside for opening up new markets to American corporations or promoting American exports. Export promotion is in the hands of the Commerce Department's International Trade Administration (ITA), whose budget is scandalously modest (just short of $80 million), while the head of the agency is a political appointee who once taught tolerance to Latin Americans.

Worse yet, the ITA is a forgotten part of America's foreign policy arsenal. It didn't used to be that way. Back in 1953, in the wake of the knee-buckling Korean War, president Dwight Eisenhower reversed Harry Truman's we-will-fight-em-everywhere national security policy by stripping away appreciable amounts of money from the defense budget, while increasing American exports.

It's not kosher to criticize the beknighted Truman, but his pro-defense policies were bankrupting the country. So Eisenhower made it clear to America's admirals and generals: his "New Look" national security strategy was going to be redefined to include economic power. Monies sent to the Defense Department would not simply be cut, they would be spent elsewhere.

That's where we are now, though there seems little stomach among liberals or conservatives for a "New Look" that would ignore both diplomacy and force and emphasize what America does best. We're a nation of merchants, not soldiers.

The "New Look" succeeded not only because it kept the country out of war, but because it abandoned the view that what America could offer the world was its values. "Removing burkhas from Afghan women sounds like a good project," a senior Afghan strategist at the Pentagon says, "but you aren't going to get many 19-year-olds to fight for it, and while we'd all like everyone to stand up and sing yet another rendition of America The Beautiful, it's a pretty hard sell. But what we can sell is what we make - and despite what you've heard, we still make things."

In a recent meeting over coffee, Brinkley discussed his organization's demise. He sounded almost wistful. "There's a lot that can still be done, at a fraction of the cost of traditional development aid programs," he said. "I believe in free enterprise and think it's the most potent thing America has to offer the world."

For just a moment, he sounded like Eisenhower, who talked incessantly of free trade, open markets and economic power.

Is Brinkley out of step? "Yeah maybe, maybe," he responded, but then he set his lips and his eyes flashed beneath his shaved head. "But I'll tell you this: the greatest success story of the 20th century is the lifting of 400 million Chinese out of abject poverty. And the Pentagon and State Department didn't have a damned thing to do with it."

Mark Perry is a military and foreign policy analyst based in Washington, DC. His most recent book is Talking To Terrorists.

(Copyright 2011 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)

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