1. Changing Financial Flows During Afghanistan's Transition: The Political Economy Fallout
- Author:
- William A. Byrd
- Publication Date:
- 09-2013
- Content Type:
- Policy Brief
- Institution:
- United States Institute of Peace
- Abstract:
- Massive amounts of money flowing into Afghanistan since 2001 (foreign military spending, aid, domestic revenues, opium profits, land takeovers and development, informal mineral exploitation, theft of funds such as at Kabul Bank) have had profound political economy impacts, not least by further entrenching factionalized politics and fragmented patronage networks. The ongoing transition involving the drawdown of international troops and Afghan takeover of security responsibilities will be accompanied by drastic declines in international military expenditures and aid. Total resources for patronage will fall sharply; the Afghan government's share in remaining funds will increase; declines will be greatest at local levels, especially in insecure areas in the south/east which had heavy international military presence and high aid; and drug money will become increasingly important. At lower levels of patronage, competition over declining resources may intensify, so even in the absence of major armed conflict at the national level, localized conflicts may continue and even proliferate, aggravated by taking revenge and “settling accounts” by currently excluded and marginalized groups.
- Topic:
- Arms Control and Proliferation, Development, Economics, Islam, Foreign Aid, Narcotics Trafficking, and Foreign Direct Investment
- Political Geography:
- Afghanistan and Central Asia