The Ugly Truth About Foreign Aid in Afghanistan: Kabul's New Elite

By Patrick Cockburn, Independent UK. Posted May 2, 2009.

But much of the aid money goes to foreign companies who then subcontract as many as five times with each subcontractor in turn looking for between 10 per cent and 20 per cent or more profit before any work is done on the project. The biggest donor in Afghanistan is the US, whose overseas aid department USAID channels nearly half of its aid budget for Afghanistan to five large US contractors.

Examples cited in an Oxfam report include the building of a short road between Kabul city centre and the international airport in 2005 which, after the main US contractor had subcontracted it to an Afghan company, cost $2.4m a kilometre – or four times the average cost of road construction in Afghanistan. Often aid is made conditional on spending it in the donor country.

Another consequence of the use of foreign contractors is that construction has failed to make the impact on unemployment among young Afghans which is crucial if the Taliban is to be defeated. In southern provinces such as Farah, Helmand, Uruzgan and Zabul, up to 70 per cent of Taliban fighters are non-ideological unemployed young men given a gun before each attack and paid a pittance according to a report by the Institute for War and Peace Reporting. By using these part-time fighters as cannon-fodder, the Taliban can keep down casualties among its own veteran fighters while inflicting losses on government forces.

Some simple and obvious ways of spending money to benefit Afghans have been neglected. Will Beharrell of the Turquoise Mountain charity, which is encouraging traditional Afghan crafts and reconstruction of part of the old city, says tangible and visible improvements are important. He said: "We went in for rubbish clearing because it is simple and provides employment. We brought the street level down by two metres in some places when we had cleared it away."

A striking feature of Kabul is that while the main roads are paved, the side streets are often no more than packed earth with high ridges, deep potholes and grey pools of dirty water. New roads have been built between the cities, such as Kabul and Kandahar, but these are often too dangerous to use because of mobile Taliban checkpoints where anybody connected to the central government is killed on the spot.

The international aid programme is particularly important in Afghanistan because the government has few other sources of revenue. Donations from foreign governments make up 90 per cent of public expenditure. Aid is far more important than in Iraq, where the government has oil revenues. In Afghanistan a policeman's monthly salary is only $70, which is not enough to live on without taking bribes.

Since the overthrow of the Taliban in 2002 the Afghan government has been trying to run a country in which the physical infrastructure has been destroyed. Kabul is now getting electricity from Uzbekistan but 55 per cent of Afghans get no electricity at all and just one in 20 get power all day. Money can be distributed more swiftly by the US military but this may not undercut the political support of the Taliban to the degree expected.

Afghans themselves are unenthusiastic about President Obama's plan for more US military and civilian involvement in Iraq. And the failure of foreign aid to deliver a better life to Afghans also helps explain plummeting support for the Kabul government and its Western allies. Oxfam's Mr Waldman believes better-organised aid could still deliver the benefits Afghans hoped for when the Taliban were overthrown in 2001, but he warns: "It is getting very late in the day to get things right."

Go figure: The West's spending in Afghanistan

$57 The foreign aid per capita to Afghanistan, compared with $580 per capita in the aftermath of the Bosnian conflict.

$250,000 Typical salary of foreign consultants in Afghanistan, including 35 per cent hardship allowance and 35 per cent danger money. Afghan civil servants typically receive less than $1,000 a year.

$22bn The shortfall in donations compared to the international community's estimate of Afghanistan's need – around 48 per cent.

40 per cent Share of international aid budget returned to aid countries in corporate profit and consultant salaries – more than $6bn since 2001.

$7m Daily aid spend in Afghanistan. The daily military spend by the US government is around $100m.

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