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Afghanistan Review Weeks 24 and 25 22 June 2011 Comprehensive Information on Complex Crises

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Afghanistan Review Weeks 24 and 25 22 June 2011 Comprehensive Information on Complex Crises CIVIL - MILITARY FUSION CEN TRE Afghanistan Review Weeks 24 and 25 22 June 2011 Comprehensive Information on Complex Crises INSIDE THIS ISSUE This document provides a weekly overview of developments in Afghanistan from 08 June—21 June 2011, with hyper-links to source material highlighted in blue and underlined in the text. For more information Economic Development on the topics below or other issues pertaining to events in Afghanistan, feel free to contact the members of Governance & Rule of Law the Afghanistan Team, or visit our website at www.cimicweb.org. Humanitarian Affairs Infrastructure Security & Force Protection Economic Development Steven A. Zyck ► [email protected] Socio-Cultural Development irst, in a report entitled “Evaluating regulations governing the payment of customs U.S. Foreign Assistance to Afghani- guarantees. Most significantly, these reports ABOUT THE CFC stan”, the majority staff of the United suggest that Afghan transport companies im- F States Senate Foreign Relations Committee porting or exporting goods via Pakistan will The Civil-Military Fusion Centre noted that “Afghanistan could suffer a severe have to provide 25% of their customs guaran- (CFC) is an Information and economic depression when foreign troops tees via Pakistani or international banks. The Knowledge Management leave in 2014 unless the proper planning be- FBR‟s ruling will provide Pakistani firms a organisation focused on gins now”. Citing World Bank figures, the clear advantage in handling large volumes of improving civil-military interaction, report suggests that 97% of Afghanistan‟s transit trade and could hinder comparable Af- facilitating information sharing and current, licit GDP is linked to international ghan companies. enhancing situational awareness assistance to the country. The Washington through the CimicWeb portal. Post notes that the report, which emerges from Finally, the Kabul Bank crisis was once again two years of research, questions the Afghan featured in the news. The Guardian noted that CFC products are developed with government‟s technical and financial capacity USD 910 million in Kabul Bank loans still open-source information from a to sustain many American-funded projects have not been repaid, and that the Afghan wide variety of organisations and once international assistance to the country government has only been able to recover USD 61 million in outstanding loans since media sources. declines, following the departure of many in- ternational forces by 2014. The Associated taking over the embattled private lender last By design, CFC products or links to Press (AP) also noted that the report calls for autumn. The Afghan government hopes to recover USD 347 million, says the New York independently produced articles do greater oversight of American aid; the authors Times, but it is not clear whether it will be not necessarily represent the suggest that the lack of accountability in the use of American funding has fueled corruption able to do so. One crucial financial and politi- opinions, views or official position cal issue concerns the arrest and prosecution of any other organisation. both among US-hired contractors and within the Afghan government. According to Al- of Kabul Bank‟s former shareholders and ex- ecutives, whom The Economist notes are Jazeera, the report also decried international donor agencies‟ relatively high salaries for viewed as having run a “Ponzi scheme”. While a significant share of Kabul Bank‟s Afghan staff members, which have deterred many qualified Afghans from seeking employ- assets are tied up in real estate in Dubai, the Afghan government cannot legally seize these ment in Afghan government institutions, which can afford to pay significantly less. until Afghanistan‟s Attorney General brings CONTACT THE CFC charges against the registered owners of those . Second, progress was made on the technical properties. details underlying the Afghanistan-Pakistan For further information, contact: Reuters further notes that the International Transit Trade Agreement (APTTA), which Afghanistan Team Manager formally took effect on 12 June 2011. Accord- Monetary Fund (IMF) will not certify the Af- Erin Foster ing to The Asia Times biometric identification ghan government as a suitable recipient of [email protected] systems are reportedly being installed in the international aid until two conditions are met: (i) charges are brought against those deemed next month in order to allay smuggling con- The Afghanistan Team cerns associated with the APTTA. Daily liable for the Kabul Bank crisis and (ii) the [email protected] Times, a Pakistani newspaper, noted in several Afghan government pledges not to use donor articles that Pakistan‟s Federal Board of Reve- funds to bail out Kabul Bank. Until the Af- ghan government meets these conditions, the nue (FBR) had cleared a number of hurdles for IMF, as well as the World Bank, will not be Afghan businesses by specifying rules and able to transfer resources to Afghanistan‟s public coffers. The Trust Fund (ARTF). As a result, The Guardian reports that the World Bank has already held up a payment of USD 70 million Afghan government may be insolvent in approximately one to the Afghan government via the Afghanistan Reconstruction month. Governance & Rule of Law Amber Ramsey ► [email protected] fghanistan and Pakistan signed a joint declaration pulling American troops out of Afghanistan prematurely, US agreeing to work together on a number of economic Defense Secretary Robert Gates acknowledged that the US has development projects and significantly increase joint begun preliminary talks. A efforts in various sectors, reports Dawn News. Both countries signed the 23-point “Islamabad Declaration” during two days In a recent move by the United Nations to support efforts to of meetings among top Afghan and Pakistani officials in Is- promote reconciliation in Afghanistan, Security Council Reso- lamabad. Previous joint declarations were signed in 2009 and lutions 1988 and 1989 were unanimously passed by the UN 2010, underscoring the historical, cultural and religious bonds Security Council. The resolutions effectively split the al Qaeda between the two countries but also emphasizing the desire to and Taliban Sanctions Committee in two, reports CNN, which enhance mutual cooperation in all spheres, according to the will make it easier to modify either of the two new sanctions Associated Press of Pakistan (APP). Additionally, the Joint lists. Moreover, the resolutions establish specific criteria for Peace Commission (JPC) – created in January 2011 to promote delisting an individual from the Consolidated List and give the peace and reconciliation in Afghanistan – ombudsperson, a legal expert appointed to convened its inaugural meeting. At the assist in reviewing appeals for delisting, further power to recommend removals. JPC event, both sides committed to work “From now on, the Afghan govern- “closely together” for reconciliation in a AFP explains that the Security Council “holistic and comprehensive manner”, ment has a visible and district role in sought to highlight the divide between the says Agence France-Presse (AFP). Vari- agendas of the two organisations; with al ous articles suggest that, based on recent the process of listing and delisting” Qaeda promoting a global jihadist move- ment and the Taliban a home grown insur- interactions between the two countries, Ambassador Peter Wittig, Pakistan may be more willing than ever to gency focused within its own country. play a role in Afghanistan‟s peace proc- Chairman of the 1267 Committee The new Taliban sanctions list offers the ess, but sceptics suspect otherwise. Ac- Afghan government a greater role in over- cording to analysts cited by McClatchy seeing the sanctions list, a power that has Newspapers, there appears to be little previously been sought by Afghan offi- incentive for Pakistan to use its leverage over the leaders of the cials. As stated by Ambassador Peter Wit- Afghan insurgency to reconcile, while others note that the tig, chairman of the 1267 Committee, “[f]rom now on, the Af- Taliban have already rejected Afghanistan‟s High Peace Coun- ghan government has a visible and distinct role in the process cil – a similar institution set up by President Karzai to promote of listing and delisting.” Moreover, US Ambassador Susan peace talks in Afghanistan. Additionally, former Pakistani am- Rice said that the resolution “sends a clear message to the Tali- bassador to Kabul, Rustam Shah Mohmand, told reporters, “it ban that there is a future for those who separate from al Qaeda, renounce violence and abide by the Afghan Constitution.” is inconceivable for Mullah Omar to enter into talks in the cur- rent circumstances,” adding that “[a]s long as they stick to Following a statement by the head of Afghanistan‟s High Of- clichés like [the Taliban having to] accept the Afghan parlia- fice of Oversight and Anti-corruption (HOOAC), efforts are ment and constitution, there will be no progress.” underway to establish an agreement between the HOOAC and In related news, Reuters reports that President Hamid Karzai foreign organisations to improve anti-corruption efforts. Ac- indicated to an Afghan audience that the United States is in cording to a Tolo News article, HOOAC Chief Azizullah Ludin contact with the Taliban. At the same time, Karzai denied ear- noted that corruption in the Afghan system has significantly lier reports that his government has been in negotiations with distanced Afghan citizens
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