Afghanistan‘s economic growth has slowed but remains satisfactory levels to generate rising average standards of living. Real GDP growth is expected to close the fiscal year 2011-12 at 5.7 percent, down from 8.4 percent in 2010-11. The slowdown in growth was mainly due to weather-related condition which lowered agriculture output to below –average levels.
The economy this year (2012-2013) GDP growth-related to pick up again and is projected to reach 7.1 percent , favorable weather condition during the first quarter of the year resulted in good harvest season , which is likely to increase agricultural output.
The service sector will continue to account for about half economic growth for next year fueled by the growth in the telecommunication sector.
In addition, donor funding and development projects will continue to drive the demand for transportation and distribution service.
Longer-term projections are less positive, aid levels are expected to decline significantly this will reduce GDP growth levels of 4 to 5 percent per year.
A sizeable financing gap will continue to exist through 2012 despite projections of healthy growth in domestic revue collection. Afghanistan’s biggest economic challenge is finding sources of sustainable and equitable growth.
Education: in 2001 after the fall of Taliban, net enrollment was estimated at 43% for boys and a dismal 3% for girls. Moreover, there were only about 21,000 teachers (large under-educated) for a school-age population estimated at more than 5 million-or about 240 students for every marginally trained teacher.
Since 2002, school enrollment has increased from 1 million to 7.2 million children girls enrollment increased from 191,000 to more than 2, 71 million. More than 101,000 teacher qualifications and the overall access to equitable quality education in Afghanistan.
Health: according to recent data from Afghanistan mortality survey 2010 (AMS 2010) life expectancy at birth is at 64 years. Only 27% of Afghans have access to safe drinking water and 5% adequate sanitation, nevertheless there has been considerable progress over the last 9 years, about 85% of the population lives in districts which now have providers to deliver basic package of health facility (based on AMS 2010). Infant and under -5 mortality in 2010 has declined to 77 and 97 per 1,000 live birth respectively from 111 and 161 per 1,000 live births in 2008. The pregnancy-related mortality ratio is about 327 per 100,000 births, which means that every two hours a women dies in Afghanistan from pregnancy-related causes.
Access to electricity: the percentage of population with access to electricity in Afghanistan among the lowest in the world. The ministry of energy and water estimates that about 30% of Afghans have access to electricity from grid-based power, micro-hydro or solar panel stations.
The situation has improved significantly in the major urban population centers along the critical north-east corridor between Mazar-e-sharif and Kabul, following the importance of power from Uzbekistan and the rehabilitation of three hydro plants (Mahipar and Sorobi completed and Nghlu ongoing) increasing parts of some urban centers, for example Kabul, Mazar-e-sharif, and Pul-e-khomri, now have a 24 hrs power supply for the first time in decades.
Revenue Collection: since the implementation of an Automated System for Customs Data (ASYCUDA), the collection of transit fees in major transit corridors in Afghanistan has improved customs revenues have soared from around $50 million in 2003 (SY 1382) to over US$ 1 billion in 2011-2012 an increase of around 2,000% in 8 years.
Approximately 90% percent of imports and exports are covered through automated processing, the waiting time for trucks at the major border crossings has also decreased. The Afghan Custom Department has started the process to carry out customs performance measurement at Torkhum, Hairatan and Kabul Inland Customs Depots, but still there are vigorous signs of corruption are overseen the local heads of the department are involved in corruption but supported by the ministers within the administration these custom offices allow chemicals used in narcotics an illegal drugs (poppy, morphine) and other type of most dangerous drugs even they allow explosives and ammunitions for the Taliban to later on they are used to attack coalition forces an Afghan security organizations the said Customs Department is doing just because of money purposes a long with that most of the staff are hired through private relation which has doubled the worsen situation within the system.
Role of commercial banks in the economic development of Afghanistan: in country like Afghanistan which is still in the initial stages of economic development, a well organized banking system is the need of the day. There is acute shortage of capital in private banking sector of Afghanistan; the banks can play an important role in promoting capital formation, in controlling speculation in maintaining a balance between requirements and availabilities and directing physical resources into desired channels.
Commercial banks play an active and important role in the economic development of a country if the banking system in country is effective and disciplined; it brings about a rapid growth in the various sectors of economy but in Afghanistan a long side the in effectiveness of the banking system corruption and nepotism has played even negative role in the said sector even worth the Afghan commercial and non-commercial banks are busy with money laundering for bulk money of the terror regime of Iran the worst case is most of such banks with such attitudes are openly supported by the President Karzai administration most blame even him that he is part of all these activities his family members are share holders of the said banks and these banks are established via mafia channels the money which invested are the output of drug dealing and seizing the public and private properties all in all mortified the economy of Afghanistan , despite of the mentioned challenges the use of online banking is now increasing day by day, it has brought revolution in banking industry. The online banking which is the wave of future is now on the move in Afghanistan and progressing satisfactory to some extent.
Some of the banks already stared providing ATM/MCS to the customers to develop e-banking such as online money transfer, shopping, ease of business and travel tours.
Political perspective: Afghanistan is pretty critical from the political perception full of challenges, war-lords are in place, corruption, and lawlessness tremendously strained Afghan people. Most importantly, the insurgency has become sturdy. Most of the bordering areas between Afghanistan Pakistan and between Afghanistan and Iran are out of the run of the Afghan government. One major portion of the state [the judiciary] has outlawed real discussion and the President has failed to set up its members of government. War criminals and organized crime activists are highly maneuvering and laying more burdens on the shoulder of ordinary Afghans. Dreadfully fewer economic and political developments have taken place. The legislative appendage is not feasible. Most of its members are warlords, drug mafia or criminals. The absence of democratic tenets such as justice, fairness or civil liberties, have outcomes that enduringly collide between sundry limbs of the state. The largest part, notably the unconstitutional proceeds of president, added to the tribulations.
Regional conflict: Contention flanked by US and China on one hand and on the other between US and Russia. The rivalry linking Iran and Saudi Arabia as well as among Pakistan and India continues to be a problem. The panic of losing the war on terror, revitalization of radicalism, Islamization of the society, economic stagnation and unemployment have caused total failure in Afghanistan and most of Afghans have lost any hope in the current and future of the country. Most imagine the worst. There are no new beginnings for the country. Most of the youngsters endeavor to take refuge in the western world, therefore one can observe gloomy and hazy ambiance of Afghanistan.
Security outlook: As it is obvious that Afghanistan previously facing numerous enemies, defies most specially the vulnerable security circumstances generated here. An open arena for drug dealers, land mafia, economic mafia, war-lords and organized criminals exists to take advantage of situations. Beside corruption, nepotism and dissipations of the national security agencies (such as national police, army and intelligence) have added to the insufficiency of the security sectors even with proper training. Additionally, to the NATO abandonment of Afghanistan, we possibly will adjoin dividedness between tribes and tribal leaders. Furthermore, issues between war-lords, religious fantasist, socio-political fractions and splinter groups as our result total pandemonium will evoke events of the 90’s. Consequently, the NATO withdrawal will escort the country towards arm strife among plenty of tribes, drug dealers, religious political factions which may bring about disintegration of the country. This may occur in addition to a real clash between Sunni and Shia peoples.
Behind Indo-Pacific Vision
Mike Pompeo’s recent speech titled, ‘America’s Indo-Pacific Economic Vision – at the Indo-Pacific Business Forum’ at the US Chamber of Commerce, Washington DC has been carefully observed across Asia. Beijing has understandably, paid close special attention to it. Pompeo emphasized on the need for greater connectivity within the Indo-Pacific, while also highlighting the role which the US was likely to play (including financial investments to the tune of 113 Million USD in areas like infrastructure, energy and digital economy). The US Secretary of State while stating that this vision was not targeted at anyone, he did make references to China’s hegemonic tendencies, as well as the lacunae of Chinese connectivity projects (especially the economic dimension).
The Chinese reaction to Pompeo’s speech was interesting. Senior Chinese government officials were initially dismissive of the speech, saying that such ideas have been spoken in the past, but produced no tangible results.
An article in the Global Times ‘Indo-Pacific strategy more a geo-political military alliance’ response is significant. What emerges clearly from this article is that Beijing is not taking the ‘Indo-Pacific vision’ lightly, and neither does it rule out the possibility of collaboration. The article is unequivocal, in expressing its skepticism, with regard to the geo-political vision of the Indo-Pacific vision. Argues the article:
While the geopolitical connotation of the strategy may lead to regional tensions and conflicts and thus put countries in the region on alert
It is optimistic with regard to the geo-economic dimension, saying that this would be beneficial, and would promote economic growth and prosperity. What must be noted is that, while the US vision for ‘Indo-Pacific’ has been put forward as a counter to the Belt and Road Initiative (BRI), the article also spoke about the possible complementarities between the US vision for ‘Indo-Pacific’ and China’s version of BRI. While Mike Pompeo had spoken about a crucial role for US private companies in his speech, the article clearly bats in favor of not just between Indian, Japanese, Chinese, US governments as well as companies. This is interesting, given the fact that China had gone to the extent of dubbing the Indo-Pacific vision as the foam on the sea” “that gets attention but will soon dissipate”
While there is absolutely no doubt, that there is immense scope for synergies between the Indo-Pacific vision, and BRI especially in the economic sphere. China’s recent openness towards the Indo-Pacific vision is welcome, but one of the propelling factors is the growing resentment against the economic implications of some BRI projects. While in South Asia, Sri Lanka is a classical example of China’s debt trap diplomacy, where Beijing provides loans at high interest rates (China has taken over the strategic Hambantota Project, since Sri Lanka has been unable to pay Beijing the whopping 13 Billion USD). Even in ASEAN grouping, countries are beginning to question the feasibility of BRI projects, Malaysia which shares close economic ties with Beijing is reviewing certain Chinese projects (this was one of the first steps undertaken by Mahathir Mohammad after taking over the reigns as Prime Minister of Malaysia).
Second, that while for long the Indo-Pacific Vision has been dubbed as a mere ‘expression’ and one of the criticisms has been a lack of gravitas in the economic context (and even now 113 Million USD is not sufficient). Developments over recent months, including the recent speech, indicate that The Department of State seems to be keen to dispel this notion that the Indo-Pacific narrative is bereft of substance. Here it would be pertinent to point out, that Pompeo’s speech was followed by an Asia visit (Indonesia, Malaysia, Singapore).
Countries which are key stakeholders in the Indo-Pacific narrative need to keep in mind the following:
US needs to walk the course and apart from investing, more it needs to think of involving more countries, including Taiwan and more South Asian countries like Sri Lanka and Bangladesh in the Indo-Pacific partnership.
Second, the Indo-Pacific speaks in favor of democracy as well as greater integration, but not only are countries becoming more inward looking, even their stand on democracy, and Human Rights is ambiguous. Japan is trying to change its attitude towards immigration, and is at the forefront of promoting integration and connectivity within the Indo-Pacific. Neither US, nor India, Japan or Australia have criticized China for its excesses against the Uighur minority in Xinjiang province.
Finally, there is scope for China to be part of the Indo-Pacific, but it needs to look at certain projects beyond the rubric of the BRI. A perfect instance is the Bangladesh China, India Myanmar BCIM Corridor which India was willing to join, but China now considers this project as a part of BRI.
In conclusion, Beijing can not be excluded from the ‘Indo-Pacific’ narrative, but it can not expect to be part of the same, on its own terms. It is also important, for countries like US and India to speak up more forcefully on issues (within their domestic contexts, as well as external) pertaining to Freedom of Speech, Human Rights and immigration issues, given that all these are essential for a ‘Free and Open Indo-Pacific’
Chimeras and Realities of the Indo-Pacific Partnership
The new American initiative for the creation of the Indo-Pacific Partnership (IPP) has grabbed the spotlight in many political discussions of late. Although the idea to set up such a forum was proposed at the end of 2017 and to this day has been no more than a general slogan, now the Trump administration seems set to stake on it. Why?
As a reminder I would like to point out that on May 30 the US Secretary of Defense announced the renaming of the Pacific Command into the Indo-Pacific Command (although the Command’s responsibility zone a priori included the Indian Ocean waters).
A few days later, at the Shangri-La Dialogue (SLD) conference in Singapore, the idea of IPP was spelled out by the American side, with an emphasis on the aspects of regional security. When commenting on the change of the name of the American command, Indian Prime Minister Narendra Modi remarked that for India the unification of the Indian and Pacific oceans into a single geographic array looked “natural”.
The practical implementation of the IPP strategy will most likely be carried out both through the strengthening of US bilateral relations with countries of the region and through the creation of multilateral cooperation formats. The most important of these cooperation initiatives is the so-called. “Quadro”, which is designed to bring together the four “democracies” of the Indo-Pacific region – the United States, Japan, Australia and India.
It is believed that the United States, Australia, Japan and India, united in the Quadro, will consider the two oceans a single strategic space. Since 2016, the United States, India and Japan have been conducting joint naval exercises “Malabar”. Washington is clearly giving New Delhi ever more attention, counting on India as one of the future regional security poles, along with Japan, Australia and its other allies.
The feasibility evaluation of IPP was proposed in the concept of “free and open Indo-Pacific strategy”, FOIP). And the recent report of the US National Security Strategy states that “in the Indo-Pacific region, there is a geopolitical competition between free and repressive visions of the world order.”
Apparently, this is about China. Therefore, the idea of IPP, which is motivated by the value and geostrategic approach, did not cause immediate enthusiasm from the American allies in the region.
Assessing the US initiative to establish IPP, Japanese experts, for example, say that Japan has no objections in principle to such an initiative as long as it is “transparent and inclusive”. To this, they add that this initiative can play a role in the development of interregional relations involving East Asia, South Asia, Africa and Eurasia; the main thing is that it should not be directed against China, since Japan is interested in China’s sustained development and Japan-China relations.
In response, South Korea argues that it is too early to suggest a full approval for the IPP as this initiative has been put forward in the form of a general slogan. Seoul has yet to understand what it is and needs more time to examine it in more detail. If it turns out that the initiative aims to deter China, participation in it of the Republic of Korea will be a “difficult choice” to make.
According to experts of the US Chamber of Commerce and Industry, the Indo-Pacific region may account for half of the global economy within decades, but this requires investments of almost $ 26 trillion. Now it is obvious that from the point of view of trade and economic cooperation, the IPP is set to replace the Trans-Pacific Trade Partnership (TPP), which Donald Trump chose to reject, and offer an alternative. US Secretary of Commerce William Ross explains in this respect that TPP agreements require too much effort to conclude and too complicated: “With such major geopolitical phenomena as the TPP, it is impossible to carry out a controlled experiment.”
Verbally, Washington welcomes China’s contribution to regional development, emphasizing that IPP will not be aimed at containing China or opposing China’s Belt and Road Initiative. At the same time, the emphasis is put on the need to adhere to “international standards of transparency, the rule of law and sustainable financing”.
However, in practice, the main reason underlying IPP is the attempt to conduct a “controlled” geostrategic and geoeconomic experiment, by constructing a partnership framework artificially, in the American interests, without taking into account the interests of potential partners who are not interested in political or economic deterrence of China
Supporters of conventional geopolitical approaches say that the creation of IPP means the advance of the US into Eurasia still further from the east to the west by strengthening ties with predominantly “naval” powers in the eastern and southern peripheries of the Eurasian continent (from South Korea to countries of the Arabian Peninsula) and with island states of the Pacific (from Japan to New Zealand). The main purpose of the IPP is the political and military-strategic deterrence of China, the creation of a rigid “framework” that would prevent Beijing from assuming a dominant position in the region.
Whatever the case, American attempts to artificially “patch together” the IPP “from the material at hand” indicate the need for the Russian diplomacy to boost efforts to cement the Russian-Chinese strategic partnership by developing security mechanisms and fostering cooperation in the land areas of the Eurasian “heartland”.
In the first place, such mechanisms involve the Shanghai Cooperation Organization (SCO), measures towards linking the Eurasian integration and the Chinese Belt and Road Initiative and the consistent implementation of the Russian initiative to establish the Greater Eurasian Partnership (GEP).
India’s participation in these organizations and initiatives is a matter of special concern, while the three-party consultative arrangement Russia-India-China needs further strengthening as well.
First published in our partner International Affairs
Afghanistan and the issue of Transnational Conspiracy
Author: Ajmal Sohail, Contributor: Nicolas Böhmer*
The deplorable statistics of drug addicted people in Afghanistan exceeded one million and the poppy growth almost doubled, since the international community call for counter-narcotics. The most outrageous in this context is, that one third of the Afghan GDP looms from drug trafficking. The large portion of profit comes from drug trafficking flowing into the pockets of Governmental circles. This lethal-killing machine takes its toll on the vulnerable and defenseless population of the country. And the new reports of United Nations Office on Drugs and Crime (UNODC) illustrate Afghans have become a much relevant consumers of their own opium causing hundreds deaths a year – also because they can afford the lowest quality heroin only.
Afghanistan opium, at the international level, has created a drug market worth $65 billion, catering to 15 million addicts causing thousands deaths every year. Consequently, drug trade has becoming a most welcomed business for the Afghan Government, members of the parliament, local power brokers and the insurgents (Taliban and ISIS). That is why the Government time and time turns blind eyes to the appeal of the international community to chunk all land and air portals towards the passage of drug luggage and containers. Sources close to CIA say that transnational anti-crime and counter drug activities of South/West Asia depict the enormous drug cartels with tons of drugs making their way to Central Asia, South Asia, South West Asia,South East Asia, Middle East and Europe and America unimpeded. It also serves to resupply the organized crime groups with weapons of war coming into Afghan territories. Furthermore, the required chemicals for the heroin production – such as acetic anhydride – is entering the country without control e.g. from Germany down the Balkan Route.
It gives the impression, that either there is a meaningless inspection or it is not existing at all. Score of sources have proven and there is no doubt that several ministries,e.g. responsible for the borders and tribal affairs, MOI, MOD, custom security, police, etc. are engrossed in bribery, intimidation, murder, kidnapping and ransom in conjunction with some part of the organized crime and illegal narcotics industry.
To be candid, the entire illegal drugs and narcotics manufacturing goes through the hands of Afghan government officials. Covert operations against organized crime rarely happen or happen with alerts to the organisations in focus, thus allowing narcotics industry to flourish. There are avers, since NATO forces are full of zip in Afghanistan, mutually drug cultivation and trafficking have two-folded. Conversely around 15’000 foreign troops help manage security in the country.Moreover, 4’000 regular soldier from NATO forces and 11’000 US and other special operations forces make up the balance. However, there is significant resistance from so-called Taliban, ISIS, independent local warlords, drug lords particularly in the areas where poppy are cultivated, drugs and narcotics are processed and trafficked.
There is no rule of law at the bordering areas, connecting Afghanistan and Pakistan. Amid Afghanistan and Iran and the central Asian countries, there is barely bullet rule, which in turn disrupts counter-narcotics efforts of the US Coalition. Furthermore, most senior leaders [presidents], secret services and law enforcement agencies of all countries surrounding Afghanistan, through Russia on the northern distribution route, are complicit in allowing the Afghan Government and its cronies to carry on narcotics allotment.
To be frank, there are little or no genuine inspections on the borders of Afghanistan, inside the country and in adjoining countries, allowing 90% of all global heroin being commonly free distributed from Afghanistan. It is safe to say that presidents and political pundits of all surrounding countries in the entire region are engaged to consent to this conspiracy to be persisted. All leaders of all countries know where the problem comes, but refuse to act. All of these leaders are complicit with the drug mafia in propagating this portion of major transnational criminality. They are complicit in creating massive addictions and in killing children and adults around the world.
Drug trafficking has become a pleasurable industry to the presidents and political authorities of the intact region. Very unfortunately, when they address the innocent citizen of the countries, they dub for counter-narcotics efforts but behind sagacity they co-operate with such a plot to keep on. When they are brazen out with the public, they spin and articulate that it is impossible to protect all Afghan borders. Yet most of all narcotics and other black market materials out of Afghanistan, along with war formulating stuff into Afghanistan, comes through, bought and paid for, by organized crime established borders and airports.
To be blunt, this is one of the prevalent shocking international transnational conspiracies, in all history of Afghanistan and the entire globe. This in turn dents democracy, interrupts free markets, depletes national assets and skills to be connected to criminality and kills or addicts innocent Afghans. As it is said, that transnational crime networks often pick on failed states, states like Afghanistan. In order to tackle down such conspiracy proper inspections need to be placed on all portals of Afghanistan – knowing this being difficult to be implemented and causing interferences on many levels.
According to Louise I. Shelley, Director of the Terrorism, Transnational Crime and Corruption Centre at George Mason University:“Transnational crime is a defining issue of the 21st century for policymakers – as defining as the Cold War for the 20th century and colonialism was for the 19th.”
In accordance with Yuri A. Voronin,professor of Criminal Law, Ural State Law Academy Ekaterinburg Russia:“Transnational criminal rings are becoming more and more powerful and universal and their mobility is growing. The means and resources of any state are not enough to seriously harm them”.
Therefore, participation of the US Coalition for further investigation at airports and borders of Afghanistan is indispensable. Otherwise, transnational organized crime results in disrupting peace and stability of nations worldwide and a huge part of it originating from Afghanistan. And to solve their drug problem at home, the heroin consuming countries certainly should be interested in law and order in Afghanistan.
*Nicolas Frank Böhmer
Co-Founder and Co-President of the Counter Narco-Terrorism Alliance Germany; consulting, research, communications specialist and entrepreneur; develops strategies and subsequent concepts for economy, communications and politics; information gathering; analyst, translator, writer and content developer, industry4.0/IoT/digitalisation / innovation strategist; international experience in industry, technology, media tech, research and education institutes, governmental entities, politics, the UN and more
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