Help Afghanistan help
itself to mine mineral resources
M. Ashraf Haidari
June 30, 2010
The recent discovery of nearly $1 trillion in minerals in Afghanistan by the
US Defence Department was neither “recent” nor a “discovery”.
From the days of Afghan shepherds stumbling on gold, emeralds, lapis lazuli
and other precious rocks and minerals to the first round of geological surveys
of the country by the former Soviet Union, Afghans have known of our immense
natural wealth. The disclosure of this wealth, though hardly new, helps
Afghanistan attract much needed foreign investment and aid.
While rich in natural resources, it should not be forgotten that Afghanistan
is rich in human resources, too. Unlike countries where the “youth bulge” may be
a source of socio-economic instability, my generation of Afghans, which
represent more than 70 per cent of the population, is at once resilient,
enterprising, self-motivated, and eager to learn.
Unfortunately, decades of war have not given Afghanistan a chance to take
advantage of both resources to build a productive economy and provide jobs for
our energetic population. The result is that some Afghans have inevitably turned
to the Taliban to eke out a living while others have joined factional militias
merely for food and shelter. Still others have engaged in opium poppy
cultivation to ensure the survival of their families.
It should be remembered, however, that this represents less than 15 per cent
of the Afghan people. Nearly 85 per cent work under very harsh conditions to
make ends meet. These Afghans overwhelmingly support international presence in
Afghanistan and hope that together with the international community, our country
can gradually integrate into the global economy and speed Afghanistan’s
long-term development.
Moreover, President Hamid Karzai and the Afghan people firmly believe that
Afghanistan’s isolation, as experienced under the extremists’ totalitarian rule
in the 1990s, is no longer an alternative. Afghans seek a future with democracy
and utterly reject extremism, which has no place in Afghan culture or Afghan
Islam. This is spelled out in our progressive constitution.
The Afghan government is acutely aware of the daunting task it faces in
attempting to meet the basic expectations of our people for peace, justice, and
prosperity. We can address these demands only with the help of foreign aid and
private investment. Our mineral wealth, as well as the infrastructure required
to tap it, are promising ventures for both Afghans and foreign investors.
Next month, the government will host the first International Conference on
Afghanistan in Kabul, at which the priorities of our national development
strategy will be presented. It will focus on poverty reduction, job creation and
sustainable development.
Key to achieving each of these objectives is the extraction and export of
Afghanistan’s minerals and other natural resources to global markets.
At next month’s conference, Afghanistan’s ministers of finance and mines will
discuss the government’s plans to ensure that the institutions and procedures
handling foreign aid and investment are transparent and accountable.
Last week, Afghanistan’s ministry of mines and industries hosted a gathering
in London during which laws governing the natural-resources industry were
discussed. In an interview with the BBC, Wahidullah Shahrani, Afghanistan’s
minister of mines and industries, addressed concerns that a massive influx of
investment in Afghan minerals could lead to increased corruption.
“We have improved our legislation, the procedures have been upgraded and we
have been getting a tremendous amount of support from our international
partners,” Mr. Shahrani said, adding that all mining contracts will be disclosed
to the public in full.
Although bureaucratic bottlenecks sometimes impede business in Afghanistan,
investors enjoy one of the best investment climates in the region. China, for
example, has won a $3.5 billion bid to develop Afghanistan’s giant Aynak copper
mine, while India has invested $1.3 billion in transportation, health care,
education, hydroelectricity and electrical transmission.
Domestic and foreign corporations do not have to compete with
government-owned and government-subsidised businesses and can maximise profits
in a free and open market. The Afghan Investment Support Agency serves investors
as a one-stop shop for licensing and corporate support across the country.
Foreign investors can and must play a major role in helping us tap our
natural wealth so we can secure and rebuild our homeland. Afghans are proud of
our historical tradition of commerce and cultural exchange, dating back 2000
years to the Silk Road. With each economic opportunity that is fulfilled, the
people of Afghanistan move one step closer to reconnecting with our heritage and
securing a bright future for our country.
M Ashraf Haidari is deputy chief of mission and political counselor of the
embassy of Afghanistan in Washington
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