Good Money-Bad Money and Afghanistan

By:     Dr. G. Rauf Roashan 

Abstract:  Some people dumped arms in Afghanistan so that Afghans would continue their futile war against their own. Some flooded Afghanistan with money-bad money, to influence realization of their own nefarious interests. 'Bad money' contributed to a dark era in the life of the country. Now is time for 'good money' to play its role in the rebuilding of the devastated infrastructure of the country and to be used for nation building. This brief article touches on new developments regarding money and the rebuilding of Afghanistan.

The south central Asian country of Afghanistan has had a turbulent history because of its strategic location. Many times great invaders and conquerors raised the country because its people had defended fiercely their freedom. Many times, great world powers-colonial powers attempted both military and non-military tactics to overcome the resistance of the Afghans to foreign domination. Each time they failed.

Then came the age of the superpower rivalries and cold war. This age was coupled with an era of neocolonialism. International intrigue and planned intervention coupled with military excursions were used against Afghanistan. But the old Russian dream of the getting direct access to the warm waters of the Indian Ocean were not to be realized because the Afghan nation, once again, determined to fight resolutely and to the end, notwithstanding that the enemy was a superpower.

Post Soviet occupation of Afghanistan, however, ushered a new era in the life of the country, which in many ways was unprecedented. Afghans were made to fight Afghans. This war was financed with "bad-money." Bad money poured into Afghanistan by its selfish neighbors and regional and world powers for the attainment of their own nefarious interests kept the fire of war alive for decades after the last Soviet soldier crossed the Oxus on his way back to his country, not in pride, but in subdued shame.

'Bad money' was also coupled with arms and ammunitions meant for the Afghans to kill Afghans. The situation gave rise to ascension to power of tyrannical groups and regimes that, too, were unprecedented in the life of the country. The people, this time aided by the world conscience and support and especially the support of the liberating forces of the United States, were able to bring to near elimination the last of these tyrannical groups which themselves were aided by 'bad money' from the Arab extremist group of El-quaida. Because of this group, "bad money" had come to rule the Afghans.

The opposition to Taleban, was also aided to a large scale by 'bad money' printed in the name of the Afghans in super-inflationary producing quantities. In some instances, foreign interests sponsored this 'bad money'.

Post-Taleban era has ushered a new phase in the life of Afghanistan in that there is huge interest, worldwide, to help rebuild the devastated land. To that end, the world community has promised $4.5 billion in five years to be spent for reconstruction efforts. This money can become 'good money' when it is received and spent on good viable projects designed according to the true priority needs of the country. It will be 'good money' when it is used not for the sake of just using it, but on projects that would provide continued sustainable benefits for the country's today and tomorrow and the day after. It will be 'good money' when it is received and used responsibly for investment into the future of the country.

Last week there were a number of money related reports about Afghanistan. These reports were heartening in that they pointed to the much-needed flow of money into the life of the Afghans who are awakening from a long imposed economic slumber. Let us look at some:

The World Bank:
According to reports of a meeting of the Banks President in Kabul: "The Bank is providing US$100 million of grant financing for four projects in the current fiscal year ending June 30 and has committed a further US$470 million for the two years beyond that, the lifespan of the Transitional Government due to be elected by the Loya Jirga between June 10 and 16.

The first Bank project, a US$10 million grant, provides for international experts in financial management, procurement and auditing. The project is designed to help the government deliver on its promise expressed at the international donors' conference in Tokyo in January to build a transparent and accountable government.

Three projects providing a total of US$90 million in grant include a US$15 million education project designed to pick up on those areas of Afghanistan's enormous education challenge underserved by other donors. It includes a program for war widows and illiterate young women, and vocational training for ex-combatants. The project will also assist with the rehabilitation of university faculties and colleges and work with the Afghan authorities on overarching education policy and planning issues.

A US$42 million project underpins the National Solidarity Program in bringing assistance to communities in rural districts across Afghanistan. One component is job creation for ex-combatants, returning refugees and people who fled internally driven by drought or conflict or both.

An infrastructure project funded by an initial grant of US$30 million supports urgently needed water supply and sanitation in secondary cities and basic electricity for all cities including Kabul."

European Commission:

The Commission has decided to finance a  5.9m program to raise public support for the Afghan Interim Authority, using the Rapid Reaction Mechanism to build confidence among the Afghan population and its different ethnic groups.

The new support will focus primarily on technical assistance to the Afghan Assistance Co-ordination Authority (AACA) which will co-ordinate all donor support, including EC-assistance, to Afghanistan ( 2.5 million).

In addition the Commission will support a number of activities aimed at strengthening the role of the Afghan interim authority in the other main cities such as Mazar-i-Sherif, Kandahar, Jalalabad and Herat ( 2.2 million). These activities include the rehabilitation of government services in these cities, aimed at supporting larger employment-generating programs financed by the European Commission's First Reconstruction Grant of   57.5 million. The provision of high-resolution satellite images for urban reconstruction and mine clearing purposes is also included, which will be useful for other assistance programs.

The third element offers further support to the media ( 500,000).

The last element of this program consists of a  500,000 contribution to civilian tasks being undertaken by ISAF, the International Security and Assistance Force in Afghanistan to rehabilitate schools, hospitals and other vital public infrastructure.

Michael Douglas:
Oscar-winning actor Michael Douglas has made a donation in the name of the late Senator Alan Cranston of California to help rebuild the media in post-war Afghanistan.
"Having worked for peace and human rights around the world, I welcome the chance to help the Afghan people reconstruct their lives after two decades of war." said Douglas. "Internews and the Open Media Fund for Afghanistan rightly understand that free and open media are essential to the process of building a democratic, civil society."
The Secretary General of the United Nations named Michael Douglas in 1998 as the "messenger of peace".
It is important to mention this last item of contributions to the cause of the Afghans to illustrate that the concern for the new phase of life of the Afghan nation, is not only a concern of governments and established financial institutions, but is also that of many humanists throughout the world.
It is now the responsibility of the current and oncoming administrations in Afghanistan to ensure that all money that is put into the country's reconstruction is 'good money' only and that most importantly it is used to guarantee balanced development. 05/25/02


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