Rebuilding Afghanistan: The Way Forward

The turbulent modern history of Afghanistan provides a sketch of a nation either battling or recovering from a series of wars, political unrest and corruption scandals — the confluence of which has left the country facing poverty and an uncertain future.

Afghanistan’s economy is largely reliant on an international community that provides billions of dollars a year to prevent the country from falling into complete chaos. Despite these efforts, international influx of money in Afghanistan has done little to build a sustainable economy that could eventually stand independent of international support.

The perennial challenge for international reconstruction efforts lies with the lack of fiscal and economic sustainability, and in the absence of proper political governance at the governmental level.

Earlier this month, the Center for Rebuilding Sustainable Communities After Disasters (CRSCAD) at the University of Massachusetts Boston, hosted an international conference on “Rebuilding Sustainable Communities in Afghanistan: The Way Forward.” I had a chance to catch up with the center’s founding director and a professor of Urban Planning and Community Studies, Dr. Adenrele Awotona, who explained,

In March 1948, just after the end of World War II, the United States Congress passed the Economic Cooperation Act and approved funding of over $12 billion for the rebuilding of war-ravaged Western Europe. That comprehensive European Recovery Program was nicknamed the “Marshall Plan.” In 2014, after over a decade of war in Afghanistan, records show that more United States and NATO money had been invested in the “reconstruction” of that country than was spent on the Marshall Plan.

For once, money doesn’t seem to be the problem. Corruption and the lack of regulatory, fiscal and constitutional structures have lead to an uneven distribution of wealth in the country — mostly concentrated with the top 15 to 20 percent of the population. The economic disparity is a bit of deja vu, and had previously been an contributing factor the original Communist takeover in the 1978. Today, competing political ideologies remain a problem. They are mostly sectarian and Islamic in flavor and continue to divide the country, eliminating any semblance of good governance.

The challenge for Afghan reconstruction is ensuring sustainability. The international community’s reconstruction strategy in Afghanistan has not stressed the need for sustainability. The majority of the hundreds of billions already poured into reconstruction has gone to building roads, dams, hospitals and schools – but the Afghans are not able to sustain much of that infrastructure without the continued financial support. In other words, when the money stops flowing, the structures won’t last long.

Perhaps a better strategy to rebuilding Afghanistan lies in focusing efforts on 1.) formulating a strong constitution that is embedded and reflective of the country’s history, culture, faith and one that is deeply committed to a modern understanding of human and civic rights; 2) strengthening law enforcement — not through militarization, but in the ability to enforce laws, keep the peace, and prosecute those who break the law — this point is particularly important in helping curb corruption — which remains rampant given the inability to prosecute those who break the laws; 3) providing  a strong regulatory and fiscal framework to facilitate and protect investment. A viable solution for Afghanistan’s economic woes and development lies with the private sector. Private international investment can help develop profitable business enterprises that can spur and generate greater economic development in the country, and produce needed revenues for the government to aid in rebuilding Afghanistan.

The caveat lies with the substantial above-ground security risks of doing business in Afghanistan. Providing the conditions for private sector growth requires proper political governance at both the national and local levels. It also requires that the international community focus its efforts on paving the way and providing the right conditions for private sector growth both in terms of infrastructure, but perhaps most importantly in building a robust, enforceable regulatory structure to secure and protect investments.

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