Powerful individuals and not the market have influenced economic decisions, a new report by Integrity Watch Afghanistan reveals.
Millions of dollars have been siphoned off by individuals with enormous political clout who have got their way in international
Millions of dollars have been siphoned off by individuals with enormous political clout who have got their way in international and national contracts. While their influence has gained, individuals without political power have had to exit the far from level playing field. Dr Yama Turabi, head of Integrity Watch Afghanistan (IWA), said the price of gas and oil, for instance, was decided by “powerful individuals”.
The report states the economy has been hijacked by cabinet ministers, members of the national assembly, governors, police commanders and deputy ministers. All big contracts including food imports are awarded to people in power. Integrity Watch conducted more than 100 interviews in Bamyan, Balkh, Herat, and Nangarhar. IWA is a non-governmental organization that works to increase transparency (social), integrity and accountability through the provision of policy-oriented research, monitoring, capacity building and advocacy on political corruption and aid effectiveness.
The 37-page report gives details of how contracts were awarded; land usurped; and exports and imports decided. Figures have been fudged and fictitious firms in the names of relatives – some under the legal age of 18 years – have been created to channel the funds.
The Afghan economy is in the clutches of ruthless criminals, who have infiltrated the system to earn money through the systematic and organised use of political and military power.
The less influential – including the poor – stand no chance of making it big in such a system, and teeter on the brink of bankruptcy.
“I get enough work just to survive, ” says Abdullah, a daily wage worker who says he earns roughly 10,000 Afs (175 USD) a month. “I don’t dream of a better life because then I would be unhappy with what I have,” he states very simply. Abdullah spends every Afghani he earns, and has nothing saved up for a rainy day. “I borrow money to pay for wood (for heating) every year and I slowly pay back month after month,” he says.
Momina’s husband does not have a regular job. The winter is cruel, she says. “My children are always sick. I don’t have the money to afford coal or wood,” she adds. Taqi, a government employee, wishes people in power would think of the poor. “We should behave justly, and realise we are a poor nation,” he says.
Hold of the mafia
Azerakhsh Hafezi, in-charge of international relations in the Chamber of Commerce & Industries, accuses the Afghan government of supporting the economic mafia.
He cites the government’s decision to reissue the permit to the Ghazanfar group, which is accused of importing poor quality oil. “It was necessary that the Council of Ministers studied the issue in greater details. Was the purification plant reliable or not? Should the contract for all the country’s needs of petrol be awarded to one person?”
Mohammad Ismail Ghazanfar, head of the company, said in defence, “A delegation including technical experts, environmentalists, social and economic experts assessed the plant and showed the result to the ministers’ council on the basis of which the permit was issued to the purifying plant of Ghazanfar group.”
Searching for solution
Experts believe unless the mafia’s hold on the economy is eased it would be difficult for the country to progress economically.
Saifuddin Saihon, a lecturer in the Economics Faculty, Kabul University, says development is being hampered by government apathy, corruption and the stranglehold of the economic mafia.
“Creation of job opportunities, expansion of industries, agriculture, careful extraction of natural resources, and implementation of laws would create space for economic expansion,” he adds.
He believes many of Afghanistan’s powerful people are violating laws. The country must be saved from the mafia.
