How Can Afghanistan Reduce Its Aid Dependency?

While violence escalated across the country, the intra-Afghan peace talks were stalled for weeks because of difficulties agreeing on procedural issues. It has been argued that it was unlikely to see any significant progress anytime soon because neither side “has an incentive to compromise before the incoming Biden administration lays out its policy.”

A recent Rise to Peace article discusses the meaning of the United States presidential election on the Afghan peace talks and indeed, it could have a big impact depending on President-elect Joe Biden’s Afghanistan policy.

However, just a few days ago, the Afghan government and the Taliban announced that they had made a major breakthrough in the talks. They reached a preliminary deal — their first written agreement in 19 years of conflict — which allows for discussions on more substantive issues, including talk of a ceasefire.

The 2020 Afghanistan Conference

As the peace talks are taking place in Doha, Qatar, governments of Afghanistan and Finland, with the United Nations, co-hosted the 2020 Afghanistan Conference, which is a ministerial level pledging conference aiming to set out the development priorities and financial support for Afghanistan for the upcoming four years. It took place on November 23–24 in Geneva, Switzerland, and saw participation from more than 70 nations and organizations.

The issue of dependency on foreign aid is of great importance for the future of Afghanistan since the country has been dependent on foreign aid for a very long time. Regardless of the outcome of the ongoing peace talks “Afghanistan will remain highly dependent on foreign aid for the foreseeable future.” The US alone has, since 2001, appropriated an amount almost equivalent to what the US spent on rebuilding Western Europe in the aftermath of World War II. Moreover, the country depends on donors to fund at least half its annual budget, something which is unlikely to change anytime soon.

The 2020 Afghanistan Conference demonstrated the international community’s commitment to Afghanistan and donors pledged at least US$ 3.3 billion for the first year of the upcoming quadrennial with annual commitments expected to stay at the same level year-on-year. It remains clear that foreign aid is important for the future development of Afghanistan with regards to politics, peace, and security in the country. In addition, it can be a way for donors to place pressure on the parties to reach an agreement in the current peace talks.

However, there is a risk that donors are expecting the Afghan government to do more than it is able to which might jeopardize future aid. In addition, the Taliban were not invited to participate in the Afghanistan Conference, which could turn out problematic since they are a major stakeholder in the peace talks as well as in Afghanistan’s future. In turn, it might create problems should other actors appear committed to a particular Afghan administration. For the same reason, the current Afghan government might be under the impression that it does not have to compromise with the Taliban on certain points.

Addressing Corruption to Decrease Aid Dependency

A recent report shows that approximately 30% of money spent by the US on the reconstruction of Afghanistan since 2002 was “lost to waste, fraud, and abuse.” With regards to corruption, in 2019, the country ranked 173/198 on the Corruption Perceptions Index and this has a negative effect as Afghanistan tries to move towards a more peaceful and just society. It is therefore vital to address issues like corruption which essentially undermine reconstruction and development efforts. Addressing it will, over time, help reduce Afghanistan’s need for foreign aid.

Consequently, the parties involved in the peace talks must do more than agreeing to stop the violence. The talks can potentially be seen as an opportunity for a new start to “lay out a new vision for the country that can assure donors as well as the international community at large that things are going to be different in the post-settlement era.”

As demonstrated, commitment from donor countries is important, but what is of significant importance is that Afghanistan increases its own contribution to national development to convert the rhetoric of self-reliance into reality which will enable the country to, eventually, stand on its own two feet.

Afghan Aid Dependency: Two Alternatives for Foreign Donors

With just over 77% of its government budget dependent on foreign aid, Afghanistan’s prospects of establishing a self-reliant state in the near future appears bleak. In spite of the billions spent by individual countries and multilateral institutions, the question of how to sustainably use donor funds to embed resilience in Afghanistan has confounded policymakers for decades, culminating in several reports highlighting the country’s “phantom aid” problem.

After receiving much criticism for its sudden departure from Afghanistan in the aftermath of the Cold War, the United States has since spent anywhere from $800 billion USD to upwards of $1 trillion USD in what remains America’s longest war. Of these expenditures, just 14% is constituted as foreign aid, with 75% of this aid earmarked as military/security assistance, as opposed to economic aid.

Yet, a cursory review of Afghanistan’s developmental woes suggests many of its ailments remain tied to economic obstacles like chronic unemployment, corruption, poor provisioning of government services, and an overreliance on the agricultural sector. Incessant frustrations from the donor community have led to fatigue, which has been exacerbated by political infighting within the Afghan government, as well as an unclear strategy or criterion for when international forces may exit the country.

This perception of little to no return on investment (ROI) for Western taxpayers has made foreign aid a recurring target among populist candidates and parties demanding retrenchment from “forever wars”. In the case of the US, foreign aid to Afghanistan reached its peak in 2012 at $13 billion USD, a sum that was followed by steep cuts that now amount to just under $5 billion USD sent in 2019.

Regardless of the outcome of intra-Afghan dialogue, the continuation of gradual cuts toward aid (which began during the second of the Obama administration) seemingly conflicts with the public-facing objective of the development community, which ostensibly seeks to address underlying socioeconomic factors that feed into conflict.  USAID figures demonstrate that donors remain fixated on funding kinetic solutions to resolve insecurity in Afghanistan, as well as neighboring Pakistan, which has seen its US foreign aid inflows dwindle in a similar fashion.

A peace deal cinched with the Taliban won’t necessarily result in increased revenues or even decreased expenditures from the government. Instead, Afghanistan’s fragility suggests injections of aid will be most critical in the months and years after an agreement is reached and statecraft can begin in earnest. As the appetite toward military-aid dissipates, donors should turn to alternative financing options when allocating funds, including “Aid for Trade” and Conditional Cash Transfers.

Aid for Trade

The Organization for Economic Co-operation and Development (OECD) defines Aid for Trade as an effort “to align donor and partner countries’ strategies in promoting trade as a leverage for poverty reduction.” In short, aid for trade seeks to reduce the cost of facilitating goods and services and promote the recipient nation’s export sector by addressing infrastructure deficits and providing technical assistance to the private sector. Such a strategy has proven successful in funding efforts like port upgrades to improve maritime trade, expanding access to affordable Internet services, and digitization training for Small and Medium-sized Enterprises (SMEs).

In the context of Afghanistan, Aid for Trade can harness what has traditionally been the country’s greatest economic advantage: its geography. Notwithstanding its status as a landlocked state, Afghanistan sits at the nexus of some of the fastest-growing regions in the world, which provides opportunity to reap advantages in overland trade. Yet harnessing this advantage requires building the necessary physical and digital infrastructure that can support the reliable and safe transportation of goods withing Afghan borders.

At present, the standard mechanism for aid delivery has been conditioned on a number of restrictive measures that stipulate what can be purchased with the aid, and from whom it can be purchased from. Ostensibly, the logic behind the conditional aid was designed to create strict parameters that compelled accountability from the aid recipient. Yet, as exhibited by the “Waste, Fraud, and Abuse” reports published by the US Special Inspector General for Afghanistan Reconstruction (SIGAR), such conditions have not repelled opportunities for graft, which is often carried out through opaque procurement regimes that allow funds to disappear among the lengthy supply chain of contractors and sub-contractors.

Furthermore, conditional aid can often stipulate requirements that damage the recipient’s economy. This is particularly true in the case of food aid, where donor governments will use aid to pay their own farmers to export the products, which undercuts the prices that the agricultural sector in the recipient country can charge. Considering the fact that Afghanistan’s agricultural sector employs roughly 40% of the workforce and is responsible for contributing nearly one-quarter of the country’s GDP, reorienting aid to focus on productive investments (e.g. irrigation, equipment/materials, transportation) that lower the cost of trade is more likely to boost incomes instead of distorting local markets.

Conditional Cash Transfers

Though still conditions-based, conditional cash transfers (CCTs) differ from the status quo in that they tend to be far smaller in scope and scale. The “conditional” in this context refers to the requirement that the recipient fulfill a certain objective before the funds are released, which stands in stark contrast to other programs that deliver larger sums in shorter timeframes. The advantage of Conditional Cash Transfers is latent in the psychology of incentives, where signs of waste, fraud, and abuse can result in the immediate termination of future disbursements, giving donors more flexibility over their purse strings, while also encouraging long-term adherence to specified goals.

CCTs have proven successful in a number of policy realms, including decreasing homicides in Brazil, improving healthcare delivery to vulnerable children in Ghana, and incentivizing farmers across South America to cease the cultivation of illicit crops in favor of legal alternatives. For Afghanistan, CCTs can be especially useful in combating illicit poppy farming which fuels 90% of the world’s opium and heroin production. Though forceful eradication programs have been implemented, they have failed to make a dent in production, leading to an entrenchment and reliance on the opium trade to sustain rural household incomes.

The economic, political, and security ramifications of targeting poppy farmers has made the Afghan government reluctant to tackle cultivation of illicit crops. Yet, CCT programs provide a useful medium in establishing and sustaining evidence-based programs that have demonstrated efficacy in illicit crop eradication such as crop substitution programs supported by subsidies that are paid directly to farmers and that minimize institutional involvement.

The politicization of foreign aid is a consequence of misaligned objectives between donors and recipients, in addition to flawed and ineffectual distribution. Achieving such objectives requires recalibrating the criteria that donors use to both allocate aid and subsequently measure its efficacy. Though security remains pivotal, a lasting reconstruction agenda will depend far more on targeting aid toward economic initiatives that enable Afghans to gradually reduce their dependency on foreign aid, replacing it with sustainable revenues generated by the country itself.

From Bonn to Doha: Why Is Afghanistan Still at War?

In December 2001, the city of Bonn, Germany hosted a conference on Afghanistan after the joint operation by the United States military and the Northern Alliance toppled the Taliban regime. The conference ushered in a new era for Afghanistan in which a democratic government was established that ensured elections, women and human rights, and civil and political liberties.

War was thought to be over and the reconstruction process funded by massive amounts of international aid that had poured into the country began. Nineteen years later, Doha is hosting another conference on peace for Afghanistan. Why does Afghanistan continue to find itself at war?

After the collapse of the Taliban regime, Afghanistan experienced a couple of peaceful years with no war and political turmoil. As the US redirected its military and political focus on the Iraq war, the Taliban based in their safe haven of Peshawar, Pakistan, used the opportunity to regroup and reemerge. The first question that comes to mind is how did they manage to grow as strong as they are now in the face of coalition forces and the fairly well-equipped Afghan national army?

The first response would be the fact that they have safe havens in neighboring Pakistan. Originally, they were supported by the Pakistani government and used as a proxy army to ensure Pakistan’s benefits in Afghanistan. After their collapse, and especially because Pakistan’s role was completely ignored at the Bonn conference, they still seemed to be of use for fulfilling Pakistan’s strategic goals.

This means that they had both safe havens and the support and encouragement from Pakistan which enabled them to retreat any time they were under attack, get medical services, re-equip and re-launch their attacks wherever possible. The question why the US and the world have not held Pakistan accountable and for supporting many other terrorist groups is yet to be answered.

The second response is ethnic supremacism. New research by Civil Society of Afghanistan indicates that ethnic supremacism is one of the main roots of war in the country. This is in line with the stances of the Afghan presidents since 2001. Hamid Karzai, the former president of Afghanistan, in an interview with BBC denies calling the Taliban a terrorist group. In another interview, he even says that the Taliban have every right to control some parts of the country since they are also Afghans.

Likewise in 2015, current president, Ashraf Ghani, objected that it was unjust that 98% of the prisoners in Bagram prison were speakers of the same language while he knew that those prisoners were convicted of terrorist actions. Both presidents have repeatedly called Taliban brothers instead of terrorists or enemies of Afghanistan.

The former first vice president, Younus Qanuni, in his recent interview said that President Karzai dealt with the Taliban, after their reemergence, under the influence of ethnic emotions. That was one of the reasons why the Afghan government never drafted a clear strategy for fighting terrorism and allowed the Taliban to grow into the deadly group they are today.

In general, one can assume that a decisive determination to fight the Taliban into their collapse did not happen for different reasons. Perhaps, military use was not an ideal solution.

Now that peace talks between the Taliban and the Afghan government are in progress in Doha, brutal attacks in Kabul saps optimism about achieving peace and security. Recently, terrorist gunmen attacked Kabul University and killed more than 22 students, injuring at least 22 others. Although ISIL claimed responsibility for the attack, the first VP of Afghanistan, Amrullah Saleh, declared that they had found evidence indicating that the attack was performed by the Taliban.

A couple of days before that, terrorists stormed a cultural center in Kabul and killed 41 people while injuring 84 others. Again, ISIL claimed responsibility for the attack. The main question that comes to mind, thus, is if ISIL or any other terrorist groups are capable of perpetrating such deadly attack in the capital city of Afghanistan, to what degree people can be hopeful that a peace deal with Taliban will actually bring peace to their country?

Are There Any Lessons for Afghanistan from Post-Civil War Algeria?

Wars manifest differently in various locales: however, accrued insights can be considered in other scenarios. The Algerian government experienced a brutal decade-long intra-state conflict against Islamist extremist groups that ultimately ended in a statist victory. An official end to conflict left the proverbial door open to experiments in hard and soft government policies to combat terrorism and transition former fighters into contributing members of society. While the Algerian case is imperfect (as in any security matters reliant on fallible political will and resources), it offers some broad lessons for Afghanistan.

Two Very Different Conflicts

Afghanistan has been entrapped in 40 years of conflict, but the last 19 confronting the Taliban have transitioned from primarily a militaristic question into discussions of democracy and the role of traditional elements in any future manifestations of the state. As often noted, the Taliban do not recognize the current government in Kabul as legitimate and ultimately seek an Islamic emirate as their preferred choice of governance. Still, in the circumstance that intra-Afghan dialogue results in a viable and resilient peace deal, matters of disarmament, demobilization and reintegration (DDR) have to be hammered out, understood, and prioritized.

The civil war in Algeria emerged very differently. Islamist nationalism simmered for decades, but general dissatisfaction over socio-political factors caused by government inefficacy climaxed in the 1980s. As an aside, disenchanted young men travelled to training camps in Peshawar, Pakistan in order to fight against the Soviet Union in Afghanistan. It was there they gained experience in insurgent tactics and guerilla warfare.

After the 1988 Black October riots (where security forces used excessive force that resulted in injury and death), the fall of the one-party political system dominated by the Front de Libération Nationale (FLN), and the emergence of the Islamist political party Front Islamique du Salut (FIS) as victorious in local elections, the stage was set for a political fissure.

The FIS defeated the FLN in the first round of parliamentary elections in December 1991, however those in the deep state, les décideurs (the deciders) and le pouvoir (the power), considered this unacceptable. A second round of voting was cancelled by the military and they staged a coup d’état against President Chadli Bendjedid. From this point, civil war slowly but surely materialized. Extremists travelled to the north of the country to train while bombings and targeted killings occurred.

Numerous Islamist insurgent groups took up arms against the government. The armed wing of the FIS, the Armée Islamique du Salut (AIS), was composed of moderates that eventually entered into a ceasefire with Algiers in 1997. As part of the deal, the AIS was required to distance itself from hardline affiliates and used this opportunity to pursue a path as a political party. Further, the FIS continues to be barred from the Algerian political process though they maintain an existence by proxy. Even so, they acknowledge a political settlement is the definitive goal as they once sought a (failed) resolution with the Algerian government — the Sant’Egidio Platform.

On the other hand, hardline factions pushed the envelope. The Groupe Islamique Armé (GIA) had battle-hardened insurgents from the Afghan front in their ranks as well as former members of Bou Yali — a faction that previously engaged in armed rebellion against state institutions. It was a collective objective to topple the civil-military political arrangement and replace the government with an Islamic caliphate. Additionally, the Groupe Salafiste de Predication et du Combat (a breakaway from the GIA) acted as a key force and this is extremely important as the GSPC are often considered the foundation of al-Qaeda affiliated groups that continue to incite regional security concerns.

The Algerian Civil War first sprung in 1991, but ultimately ended in 2002. It is often called la sale guerre (the dirty war) due to the heavy handedness of the Algerian security forces to counter the insurgency whilst Islamist groups were rebuked for their attacks on civilians. Nonetheless, a fractured country immediately faced the situation of how to reach any semblance of unity as well as deescalate any further eruptions rooted in disparate views of governance. These next steps may provide the Afghan situation some insight.

Disarmament, Demobilization and Reintegration

In the case intra-Afghan talks reach a sound negotiated settlement, questions over the future of former Taliban fighters remain open. Many elements must be considered such as the extent of the radicalization of individuals or whether they took up arms due to coercion or for gainful economic payouts.

Undoubtedly, Algeria had to contend with a large number of insurgents. Algiers pursued a hard approach to managing extremist groups, especially those intent on the establishment of a caliphate or challenge political security. This was a double-edged sword as the austere measures employed by government forces often crossed acceptable lines and ushered in disapproval in the populace.

Some extremist groups never renounced violence and that is to be expected no matter the quality of any peace accord. The GSPC rejected the 2005 Charter of Peace and Reconciliation that was passed with a 97% approval rating in a referendum simply because they preferred to continue as a terrorist faction. This was a significant blow as they were the largest group still active from the civil war and shared connections with known transnational terrorist organizations.

For example, al-Qaeda in the Islamic Maghreb (AQIM) is a direct outcome of insurgent groups that did not lay down their arms in the post-civil war period. Fragmentation typical of terrorist organizations meant that Islamic State of Iraq and the Levant – Algeria Province (ISIL-AP) splintered from AQIM and thus it is yet another distant offspring of past fighting.

Extremist organizations are ready to absorb any fighters unwilling to embrace peace and lay down their arms. In Afghanistan, there are numerous groups dedicated to violent methods so this remains an underlying problem, therefore hard approaches must be considered in any future outlook,  though they are not particularly a sunny matter. Just as Afghan security forces require support to ensure national security, Algerian security forces continue to conduct operations in areas of the country known for being hotspots of operational development or locales where insurgents typically and unassumingly cross the border into conflict-riddled Mali.

At the same time, Algiers promoted a soft approach. Afghanistan does not have the same economic means as hydrocarbon-rich Algeria, but both struggle with weak government and contracted economies. Nonetheless, Algeria ushered in a series of economic reforms to secure financing from the private sector as well as international partners. Dividends from these investments as well as energy revenues were allocated towards social programming, such as housing incentives and prospects for employment in state-funded positions. It is often noted that social discontents and the lack of viable employment opportunities prop up the effectiveness of extremist recruitment tactics so it is wise to solicit resources to nip this phenomenon in the bud.

Clemency was sought for those insurgents that were members of radical factions that did not commit serious crimes such as large scale indiscriminate killings or bombings. In clemency, willing fighters found an avenue to reintegrate into their local communities. Those that were convicted of grave offences — but willing to renounce violence — received lighter prison sentences. Some were not convicted or imprisoned at all due to a lack of evidence as crimes committed during civil wars are often messy and ambiguous. This was obviously problematic as justice must come prior to reconciliation and it must be completed in a method that aligns with the zeitgeist of local communities.

While political Islam did not amass an especially large following, extremism exhibited by factions during the civil war turned the Algerian populace even further away from related political philosophies. It is often remarked that Afghans will not renounce the progress and development that has occurred over the last 19 years. Algerians reached similar conclusions. At ongoing political protests, protesters were wary of the involvement of political parties that played a role in the civil war, and one stated,we are vaccinated against the FIS and its excesses.” A similar viewpoint could be easily expressed by Afghans who are tired of war, Taliban attacks, and chronic stagnation.

The role of women has been transformed from solely a human rights issue into an instrument of combatting extremism in Algeria. While it may seem facetious for a government to adopt this position to highlight the differences between acceptable forms of governance and extremism, women have generally benefitted from this arrangement. A similar approach can be extended to Afghanistan insofar as infringement upon the rights of women has become a red line that will not be crossed or negotiated away. In the words of a young Afghan woman, “We as women need to tell the Taliban that…this is a new Afghanistan.” Highlighting this element is a definitive difference between two philosophies and an applicable lesson from Algeria.

Conclusion

Intra-state conflicts are as unique as the nations that sadly end up engaged in them. Similarly, the means in which a state achieves relative peace will be reflective of its unique political culture. No perfect process exists nor will it ever.

At the same time, experiences of other states that have confronted extremist groups in intra-state conflicts offer valuable insight for others that must engage in disarmament, demobilization and reintegration. The aftermath of the Algerian civil war taught observers that attractive financial incentives, clemency for foot soldiers, and the tactical use of civil society issues in the context of a negotiated political settlement provided a means to quash further extremist rebellion in the long term.

This framework does not totally subjugate the overpowering allure of terrorism therefore the continued application of the repressive state apparatus is required. The situation is different in Afghanistan, but the case study of Algeria provides interesting food for thought.

Afghan peace talks

Recent American Decisions Will Influence Afghan Peace Talks

Two current events have implications for Afghanistan. Joe Biden was declared as president-elect in the United States presidential election by several news outlets on November 7. He will be the fourth president since the war began in 2001. Further, on November 17, the Pentagon announced that the U.S. will reduce its troops in Afghanistan from approximately 4,500 to 2,500 in mid-January.

Stakes are high. A rushed withdrawal from Afghanistan can affect the country in the short and long term. It is important now is to secure a safe period while the intra-Afghan peace talks take place and then the U.S can leave Afghanistan without the risk of the nation bursting into a civil war. With this in mind, this article will look into what effects the withdrawal can have on the Afghan peace process and the views of different stakeholders.

Joe Biden wrote in Foreign Affairs in March 2020, “It is past time to end the forever wars, which have cost the United States untold blood and treasure. As I have long argued, we should bring the vast majority of our troops home from the wars in Afghanistan and the Middle East and narrowly define our mission as defeating al-Qaeda and the Islamic State (or ISIS).” Biden’s plan was to keep a small number of counterterrorism forces in Afghanistan, but since the withdrawal now seems to start before Biden takes office, it is possible it will inhibit him in his plans.

According to interviews conducted by Al-Jazeera, many Afghans believe that the Trump administration rushed with the peace process and did not prioritize a responsible withdrawal of U.S. troops. The respondents fear that this can lead back into a civil war. On the same note, the Second Vice President of Afghanistan, Sarwar Danish, commented that he wants “a full review of the peace process” and to “apply more pressure on the Taliban to reduce the violence.”

However, the Taliban commented that they expect the new president to remain committed to the peace deal. Moreover, an Afghan analyst stated that it is important to have a permanent ceasefire, agreed to by all parties, in the peace agreement before U.S. troops withdraw from Afghanistan.

In addition, it is argued that the withdrawal will undermine fragile security in Afghanistan and that it will affect the peace talks. The latest announcement from the Pentagon, on the withdrawal of troops before Biden takes office, can put him in a difficult spot and he might have to redeploy troops to secure the situation in Afghanistan for a peaceful agreement.

Given the history of the U.S. involvement in Afghanistan, it makes sense that officials in the U.S. want to leave as quickly as possible. However, it is important to bear in mind that a quick withdrawal can affect Afghanistan, both in the short-term with intra-Afghan peace talks, and in the long-term with fear of civil war and more violent attacks on civilians.

It is therefore very important that the withdrawal of U.S troops is done in a responsible way, especially when a ceasefire agreement is signed and the talks have moved forward. As Mitch McConnell, the top Republican in the U.S. Senate told the press on Tuesday, “a precipitous drawdown in either Afghanistan or Iraq is a mistake.”

The war in Afghanistan has been ongoing for almost two decades and since the United Nations Assistance Mission in Afghanistan began counting, it has cost the death of more than 100,000 civilians, 45,000 Afghan security forces since 2014 and over 2,300 American soldiers.

While the incoming presidential administration states similar intent as the current one in regard to the withdrawal of troops from Afghanistan, it needs to be done in a responsible way. Troops should be kept in Afghanistan during the negotiations so that long term goals can be achieved for a peaceful Afghanistan.  As an Afghan official mentioned, “We expect more predictability, a more coordinated withdrawal.”