CFC Afghanistan Review Newsletter, 07 February 2012
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8/2/2019 CFC Afghanistan Review Newsletter, 07 February 2012
C I V I L - M I L I T A R Y F U S I O N C E N T R E
Comprehensive Information on Complex CrisesAfghanistan Review
07 February 2012Week 06
Governance & Rule of Law
Security & Force Protection
Social & Strategic Infrastructure
The Civil-Military Fusion Centre(CFC) is an information andknowledge managementorganisation focused on improvingcivil-military interaction, facilitatinginformation sharing and enhancingsituational awareness through theCimicWeb portal and our weeklyand monthly publications.
CFC products are based upon andlink to open-source informationfrom a wide variety of organisations,research centres and media outlets.
However, the CFC does not endorseand cannot necessarily guaranteethe accuracy or objectivity of these
CFC publications areindependently produced by
Knowledge Managers and donot reflect NATO or ISAFpolicies or positions of any other
The CFC is part of NATO AlliedCommand Operations.
For further information, contact:
Afghanistan Team Leadersteve.firstname.lastname@example.org
The Afghanistan Teamafghanistan@cimicweb.org
INSIDE THIS ISSUE
CONTACT THE CFC
This document provides a weekly overview of developments in Afghanistan from 01 February 06
February 2012, with hyper-links to source material highlighted in blue and underlined in the text. For
more information on the topics below or other issues pertaining to events in Afghanistan, contact the
members of the Afghanistan Team, or visit our website atwww.cimicweb.org.
Economic Development Steven A. Zyck email@example.com economy could face a serious downturn as foreign security and aid
spending dries up in the coming years, reports The New York Times. The World Bank
predicts that aid to Afghanistan by 2018 will be 10% of what it is today. One expert
told The New York Times that Afghanistan currently has a bubble economy which is in the
process of deflating, costing thousands of Afghans their jobs and livelihoods in the process.Many Afghans, including many who repatriated to Afghanistan after 2001, are preparing to
close their businesses, sell their property and depart the country. Productivity at local factories
is reportedly declining, and demand for foreign cars is plummeting. Property values, which
rose rapidly in recent years, are deflating. In addition, The New York Times says that the
Afghan government has had a hard time supporting national industries. Now that the Afghan
army is responsible for purchasing a portion of its own supplies, they have begun importing
cheap Chinese and Pakistani boots for its soldiers rather than buying them from their former
Afghan supply company.
Amid concerns about reduced foreign spending in Afghanistan, the United States Agency for
International Development (USAID) signed an agreement to provideUSD 800 millionto the
Afghanistan Reconstruction Trust Fund (ARTF), according to Tolo News. The funds are
intended to support agriculture, health, training and reconstruction. This grant is part of a move
by USAID to provide a significant amount of its aid to the Afghan government or through
funds, such as the ARTF, which support the governments operations and priority programmes
In the past, USAID has provided only 5% of its aid to the ARTF but is aiming to provide 35%
of its assistance through the fund in the future. This may have implications for the Afghan
economy, according to a 2009 report from Peace Dividend Trust (PDT). The report found tha
funds spent through the Afghan government were much more likely to benefit the loca
economythan funds spent through foreign companies and non-profit organisations.
A representative of Afghanistans Carpet Association told Tolo News that carpet production in
Afghanistan hasfallen by 70%over the past two years. The high cost of raw materials and the
lack of weaving facilities are cited as two major causes of the decline. While the Ministry of
Commerce and Industries (MoCI) says that it has built industrial parks with carpet production
To Our ReadersYou will note that this week the Afghanistan Review newsletter includes
four rather than six sections. The CFCs Afghanistan Team will now be divided amongst the
following sectors: Economic Development, Governance & Rule of Law, Security & Force
Protection and Social & Strategic Infrastructure. Socio-cultural development issues will now be
addressed within this final sector given the inherent linkages between infrastructure (e.g.,
schools and clinics) and the services provided through them (e.g., education and healthcare).
Humanitarian topics will be addressed in special sections as humanitarian crises or issues
emerge. We hope that this approach will help to draw particular attention to such issues and
stories. This shift does not reflect a diminished commitment to either socio-cultural
8/2/2019 CFC Afghanistan Review Newsletter, 07 February 2012
07 February 2012 Page 2
facilities inNangarharandFaryabprovinces, Tolo News reportedly found that the Nangarhar facility had not yet been constructed
despite the fact that funding was allocated three years ago. In addition to domestic factors, the low value of the Pakistani rupee relative
to the afghani is also contributing to a downturn in the Afghan carpet industry. Pakistani traders had previously purchased Afghan
carpets but now do so less frequently given that, in rupee terms, Afghan carpets have become more expensive.
Several mining articles emerged this week. According toMining Weekly,Kilo
Goldmines, a Canadian firm that won the rights to one of the four blocks at
theHajigakiron ore deposit late last year,will soon complete related contract
negotiations with the Afghan government. Kilo plans to spend two years
exploring its blocks followed by a two-year feasibility study. Accordingly,
extraction at Kilos Hajigak block would not begin until 2016, which is onpar with the anticipated start date for a consortium of Indian companies which
won the rights to the other three blocks of the iron ore deposit in central
Afghanistan. Many of these same Indian firms are also planning to bid for the
rights to gold and copper deposits in four Afghan provinces, says Reuters.
The Afghan Ministry of Mines (MoM) has requested expressions of interest
from mining companies or consortia by 09 March.
Some truck drivers and business owners in Mazar-e Sharif told the Institute
for War and Peace Reporting (IWPR) that new pollution-control measures
have hindered their livelihoods. Authorities have forced brick kilns and other
factories to relocate