Javed Noorani and Lien De Brouckere
A new research from Afghanistan Research and Evaluation Unit (AREU) aims to examine the role and governance of the extractive sector in the economic development of Afghanistan. Specifically, the paper first addresses the threshold question as to whether, and if so, how the extractive sector can support economic development in Afghanistan without creating or contributing to conflict. Also, more broadly, the study serves as a basis for a joint review and discussion among Afghan and German experts and feeds into the broader Afghan-German Govern4Afg dialogue about the future of the extractive sector in Afghanistan.
Today, most extractive sector activities in Afghanistan are artisanal, small-, or medium-scale. As stated by the former Minister of Mines and Petroleum, Daud Shah Saba, in late 2015 and largely confirmed by other sources, up to 10,000 deposits remain out of government control. This is linked with continuing conflict and violence in the country, resulting in significant revenue losses from illegal extraction. On the other hand, this report highlights the practical challenges faced by civil society to play their role in improving transparency, accountability, and equitable sharing of the sector’s benefits include an unstable legal framework characterised by rushed development because of pressure to generate revenues internally, decreasing political will to implement the Extractive Industries Transparency Initiative, and variable and decreasing role of CSOs, let alone other civil society groups, in AEITI.
It seems that Afghanistan’s mining sector is slipping into a cycle; liberating the sector and taking on a trajectory requires political will and consensus. That is, allowing such to function free of political influences is to allow the State to carry out its lawful mandate to turn the underground wealth into a national wealth for all. Impact assessment processes and international initiative for transparency in extractive industry revenues are good steps for a country like Afghanistan. These processes and fora must be strengthened through the credible and independent participation of civil society.
This report includes several major recommendations for relevant stakeholders who are involved in the sector of mining governance. This report specifically recommends that donors can play a major role in assisting the Afghan government in its capacity, it also suggests a responsive legal framework, transparent and accountable State institutions and mechanisms to manage negative impacts and revenues. Donors, however, must review their approach and engagements to apply their funds more efficiently, and in a manner that is uniquely responsive to the local and dynamic Afghan context. Pressure from donors must be logical, and not push Afghanistan to award more contracts than its capacity to handle.
A Balancing Act for Extractive Sector Governance is ready for download at: http://www.areu.org.af/Uploads/EditionPdfs/1610E%20A%20Balancing%20Act%20for%20Extractive%20Sector%20Governance.pdf
The Dari and Pashto versions of the publication will be published in the near future.