It turns out the reserves are fairly common knowledge. The Soviets knew about the reserves in 1985 and, in 2007, the Bush Administration discovered a whole new reason for committing U.S. forces to Afghanistan.
From Marc Ambinder:
A former senior State Department official said that regular discussions between the U.S. and the Karzai government over how to best exploit the resources for potential future use were ongoing when he was privy to those discussions around 2006.
By 2009, the government had already begun to solicit bids for various mining opportunities. Jonathan Landay of McClatchy was on to the geopolitical importance of Afghanistan's mineral reserves in 2009, writing that China's thirst for coal might be the key to regional stabilization.
Already, there are accusations that the REAL reason the US is in Afghanistan is because WE want to exploit those mines. That's a passable but facile interpretation of what's going on here.
Ambinder also wonders whether the sudden appearance of the story today might not be a way to convince increasingly skeptical Americans that, despite plenty of bad news coming from the Pentagon, Afghanistan is something the U.S. can't give up on.
Matt Yglesias has a good post on Bolivia's failure to capitalize on it's lithium reserves and some potential issues facing a mineral rich Afghanistan.
On the one hand you have a “foreigners come in to exploit resources in partnership with corrupt local officials” model and on the other hand you have the “socialist president scares off foreign investors so you can’t run the mines” model. Neither quite gets you what you’re looking for. Meanwhile, 80 percent of Afghans are working in the agricultural sector and there’s a risk that an influx of foreign dollars to invest in mining operations could lead to currency appreciation that makes agricultural exports uncompetitive. Of course if funds from mining operations are invested in ways that improve the productivity of Afghan farmers (better roads? irrigation?) then you’ve got a win-win. But if not, you’ve got a bonanza for whoever captures the revenue stream (corrupt officials, most likely) that could actually make most people worse off.
Recent Comments