AFGHANISTAN
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16 April 2007
Afghan Official Cites Economic, Security Progress with U.S. Help
By Jim Fisher-Thompson
USINFO Staff Writer
Washington -- Despite a nagging Taliban-backed insurgency, Afghanistan is advancing steadily to meet daunting economic and security challenges thanks to substantial help from the United States, reports Afghan Finance Minister Anwar Ul-Haq Ahady.
Since the Taliban regime was driven from power by a coalition of forces led by the United States in fall 2001, Afghanistan has made "tremendous progress" toward a democratic society and open-market economy, Ahadi told an April 16 discussion sponsored by the Brookings Institution, a Washington-based policy research organization.
More than 35,000 troops from 37 countries are part of the NATO-led International Security Assistance Force (ISAF), whose mission is to provide and maintain a secure environment to facilitate the rebuilding of Afghanistan.
Ahady, who was appointed finance minister in December 2004, was in Washington in mid-April to negotiate Afghanistan's entry into the World Bank's Heavily Indebted Poor Countries (HIPC) program. He briefed at the Brookings Institution following those successful negotiations.
"I think we have a very clear vision" of the future in Afghanistan, Ahady said. In his view, he said, the insurgency will be defeated, governance will improve and the economy will be secured with the help of the international community, especially the United States, which has contributed half of the $12.8 billion in development assistance disbursed recently.
"We have a strategic partnership with the U.S.," the Afghan official reported. With this help, "I am convinced we will overcome" the daunting development and security challenges still facing the nation, he said.
ECONOMIC IMPROVEMENT
Ahady listed a number of fiscal and macroeconomic improvements that helped double the Afghan national income in the last five years, including:
$550 million in government revenues gathered in 2006-2007, up from $180 million in the previous year, as a result of improved tax collection;
A customs rate of 5 percent, one of the most liberal in the region;
Privatization of firms, including more than a dozen banks; and
Some of the most liberal investment laws in the region, allowing easy repatriation of profits abroad.
Despite an economic growth rate of 8 percent, difficult challenges still remain, said Ahady. Per capita income still is only $300, and unemployment ranges as high as 40 percent in the cities. Illegal drug cultivation still accounts for 27 percent of the total economy.
"With 2 million people working in the [opium] poppy fields we need more alternative livelihood programs," he told the Brookings audience.
SOCIAL PROGRESS
On the social front, Ahady said his government has worked to strengthen education and that 6 million students now are enrolled in schools with 181,000 teachers. Approximately 1,000 Afghan students study at universities and institutes in India each year.
Advances for women in Afghanistan's traditional conservative society also have been made, Ahady said. Women now represent 47 percent of the parliament and 12 percent of government employees.
Government-sponsored health care has been expanded to include 80 percent of the population, and there has been a substantial decline in infant mortality.
Democratization is widespread, Ahady added. "Elections are becoming more competitive, he said. We now have a very free press, which is sometimes too critical," and civil society is expanding.
SECURITY CHALLENGES
On the security situation, Ahady acknowledged that the Taliban-led insurgency had picked up in the past year but that it was now more of a hit-and-run "guerrilla" movement unable to consolidate military gains. "It's a reign of terror, Ahadi said, and this is hurting their popularity."
To meet the security challenge, the official said, the Afghan national army soon will be expanded to 64,000 troops and the police force to 73,000 officers by 2008. The international troop presence also is expanding. In February, President Bush pledged an additional 3,200 U.S. troops to Afghanistan and called on other nations to increase their military effort. For example, Australia in April said it would send an additional 300 troops, for a total of 1,000. (See related article.)
However, in the long run, Ahadi said his government would like to see a diminished international presence as a result of increased Afghan capability.
"What we need really is to 'Afghanize' the security problems in Afghanistan, Ahadi said. It's our country. Afghans should be fighting for their own security. The Afghan army should be expanded, better trained
but we would need financing, equipment and advice. If our international supporters give us support in those areas, I think the Afghan security forces" can succeed.
For additional information, see Rebuilding Afghanistan.
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