Friday, October 25, 2013

Afghanistan's untold success story -- Foreign Policy - Managing Afghanistan's nascent industrial base will be critical as the nation attempts to build a modern economy that is increasingly less dependent on foreign aid. Today, there is great room for optimism as Afghanistan moves toward the post-transition period. Despite having a GDP that was made up almost entirely of outside aid in 2011 and 2012, certain industries -- including the Afghan telecommunications, agricultural, and mining sectors -- have begun to demonstrate remarkable growth and potential, leading to the vital stability needed for a viable, diversified marketplace. --- Experts estimate that Afghanistan holds deposits of $1 trillion to $3 trillion of oil, gas, gold, copper, iron ore, and other natural resources. Of this subset, perhaps the most intriguing is the country's marble industry, which is further along in its exploitation than other areas, and whose emergence is an instructive success story on seeding enterprise in the war zone. As commodity cycles turn, prices increase, and large-scale resource extraction projects scale up, Afghanistan is focusing on the industry as an anchor for the development of its resource corridor. According to the Afghanistan Investment and Support Agency, the Afghan marble industry has expanded by 60 percent since 2008, a growth that has positives effects on other industries as well. --- Economic considerations aside, Afghanistan's post-2014 future will be heavily tied to its security situation. In geostrategic hot spots around the world, counterinsurgency experts have long argued that adequate development and economic prosperity follow security. But if there is a successful strategy that upends this conventional wisdom, it may lie in western Afghanistan, where the development of the nation's multi-billion dollar mining industry is growing the economy and consequently forcing improvements in the security sector. In essence, as businesses have begun to flourish, despite the lack of fully settled security, Afghans have moved swiftly against nefarious actors to ensure that they do not impact the flow of marble and revenue generation. - More, Melissa L. Skorka


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