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Drugs in Afghanistan—A Forgotten Issue?

Drugs in Afghanistan—A Forgotten Issue?

Friday, May 18, 2012

This paper reflects both authors' concern that neglect of the opium economy in coming years could be perilous, exacerbate problems, possibly lead to poorly thought-out knee-jerk reactions and/or simplistic responses which would only worsen the situation, and further damage the prospects for success of what will inevitably be a difficult and challenging process of transition in Afghanistan.

Type: Peace Brief

Conflict Analysis & Prevention

One Year Later, Taliban Unable to Reverse Afghanistan’s Economic Decline

One Year Later, Taliban Unable to Reverse Afghanistan’s Economic Decline

Monday, August 8, 2022

Afghanistan’s economy was already deteriorating before the Taliban takeover of the country on August 15, 2021, suffering from severe drought, the COVID-19 pandemic, declining confidence in the previous government, falling international military spending as U.S. and other foreign troops left, human and capital flight, and Taliban advances on the battlefield. Then came the abrupt cutoff of civilian and security aid (more than $8 billion per year, equivalent to 40% of Afghanistan’s GDP) immediately after the Taliban takeover. No country in the world could have absorbed such an enormous economic shock — exacerbated by sanctions, the freezing of Afghanistan’s foreign exchange reserves and foreign banks’ reluctance to do business with the country.

Type: Analysis

Democracy & GovernanceEconomics

Reviving Commercial Development of Afghanistan’s Aynak Copper Resource

Reviving Commercial Development of Afghanistan’s Aynak Copper Resource

Thursday, September 21, 2017

While other, smaller mineral resources are being rampantly looted, Afghanistan’s large Aynak copper deposit—worth upward $50 billion—has languished unexploited despite being contracted to a Chinese consortium nearly a decade ago. This Peace Brief seeks to understand what went wrong and explores options for breaking out of the current impasse. Resuscitating the development of Aynak, though challenging, would send a powerful signal of beneficial exploitation of Afghanistan’s mineral resources.

Type: Peace Brief

EnvironmentDemocracy & GovernanceEconomics

What Can Be Done to Revive Afghanistan’s Economy?

What Can Be Done to Revive Afghanistan’s Economy?

Tuesday, February 9, 2016

Reviving the Afghan economy during a time of intensifying violent conflict, declining external financial aid, and ongoing political uncertainty and dysfunction will be extremely challenging. But the country cannot wait for these entrenched problems to be addressed. While keeping expectations modest, this report proposes some targeted, near-term measures to increase confidence and stimulate the economy. Rather than engaging in politics as usual and following conventional policy prescriptions t...

Type: Special Report

EnvironmentDemocracy & GovernanceGlobal PolicyEconomics

Improving Afghanistan’s Public Finances in 2017–2019: Raising Revenue and Reforming the Budget

Improving Afghanistan’s Public Finances in 2017–2019: Raising Revenue and Reforming the Budget

Wednesday, April 18, 2018

The Afghan government has recently embarked on important reforms to the national budget, embodied in the 2018 budget approved by Parliament early this year. This budget sets in motion an envisaged two-year reform process to achieve greater overall transparency, better development programming, and reduced corruption. The third in a series on Afghanistan’s public finances, this report updates revenue performance in 2017 and assesses the new budgetary reforms, how the draft budget fared in Parliament, the outcome, and next steps and prospects for the reforms.

Type: Special Report

EnvironmentEconomics

Industrial-Scale Looting of Afghanistan’s Mineral Resources

Industrial-Scale Looting of Afghanistan’s Mineral Resources

Tuesday, May 30, 2017

Afghanistan has been plagued by large-scale, open looting of mineral resources, involving significant mining operations, bulk transport of minerals along main roads, and crossing the border at just a few, government-controlled points. This mineral looting, amounting to hundreds of millions of dollars per year, involves widespread corruption, entrenches warlords and their networks, and fuels both local conflicts and the wider insurgency in Afghanistan. The government needs to begin to get a better handle on resource exploitation and to collect more substantial royalties and taxes from ongoing mining activities.

Type: Special Report

EnvironmentEconomics

Taliban Are Collecting Revenue — But How Are They Spending It?

Taliban Are Collecting Revenue — But How Are They Spending It?

Wednesday, February 2, 2022

Although economic and humanitarian conditions in Afghanistan continue to deteriorate, the Taliban have taken some positive steps toward financial stability by publishing a fiscally responsible three-month budget and raising considerable amounts of domestic revenue — especially through customs duties, which have risen with a crackdown on corruption. 

Type: Analysis

Economics