Showing posts with label drugs. Show all posts
Showing posts with label drugs. Show all posts

Monday, July 28, 2008

Rubin: Milanovic on Globalization and Corrupt States

In my first post on former US Afghanistan counter-narcotics coordinator Tom Schweich's article claiming that Afghanistan is a narco-state (with the connivance of the US Department of Defense, Democratic Party, and NATO among others) I mentioned a World Bank article on the world drug economy and corruption by a Hungarian economist. I was pretty close, really: actually it's an article by a Serbian economist, Branko Milanovic, published by Yale Global Online.

Here's some of what Milanovic has to say in his essay, Globalization and the Corrupt States:
Intensified trade and travel have enabled the rise of corrupt states that thrive on illegal businesses. Only by changing the rules of the same global trade that has allowed corrupt states to grow can one hope to remove this blot on globalization.

"Corrupt states" are different from a more commonly used category of "failed states." The distinguishing characteristic of a failed state is its inability to exercise control over its national territory; a key feature of a corrupt state is its weak governance structure, lawlessness and inability to move toward self-sustained development. While failed states have existed in the past - think of the Ottoman Empire in its last century - the spread of corrupt or criminalized states is a recent phenomenon, almost non-existent before the current wave of globalization. Is this a coincidence?

Globalization influences the relative profitability of different activities. In the US, globalization reduced profitability of steel production and increased it for software. In corrupt states, profitability soars in the production of goods and services that are internationally illegal: drugs, sex trafficking, contraband weapons or cigarettes, or counterfeit goods. . . .

Once organized crime and its supporters become the largest employers in the country, they play the same role that a more conventional business plays in other countries. They try to influence the political process. Moreover, they need to control the political arena - election of presidents and parliaments - even more tightly than "normal" business people because their very existence depends on having a government willing to tolerate violation of international rules as the country's main activity.

The government structure that emerges is "endogenous": It reflects domestic social and economic structure, which in turn is the outcome of greater international trade and economic incentives, much like other countries, except that the governance structure is, almost inevitably, more corrupt. The recent World Bank and International Monetary Fund's insistence on reforming governance in these countries is bound to fail because the cause is misdiagnosed.

Governance is viewed by the international organizations as something "exogenous," something that a country just happens to have and which - through a better electoral process, more transparent laws and more honest lawmakers - can be improved. Thus the international organizations are in a permanent, and fruitless, search of an "honest" lawmaker, an Eliot Ness who will bust corruption and illegality. They fail to notice that governance structures respond to underlying incentives, and to expect an honest person to rise to power in a corrupt state is akin to expecting a person with no financial backing from big business to be elected president of the US. In both cases, the outcome of a political process reflects the country's underlying economic conditions.

A different approach is necessary: legalize the currently illegal activities like prostitution and drug use and modify the often draconian US and European immigration laws that stimulate human trafficking. If prostitution and drugs indeed became like haircuts and candies, their production would obey the same rules: Countries that export beauty services and confectionary products are not notably more corrupt than others. Some of the current entrepreneurs would remain in these activities, others would move to others. In either case, there would be a general "normalization" akin to what was observed after prohibition on alcohol sales was lifted in the US. Thousands of "bootleggers" became normal producers of alcohol, alcohol-linked criminality decreased, and only a minority of those with preference for high risk and crime moved to other illegal activities. . . .

The key is that meaningful reforms do not begin in the corrupt states themselves, but in the rich world that is the main consumer of illegal goods and services. This requires a total overhaul in our thinking about the root cause of a corrupt state. Many of the most corrupt states are "corrupt" because they specialize in goods and services that are deemed illegal. But what is illegal today is not necessarily illegal tomorrow. "Illegality" is a historical category, as the long history of accepted prostitution and drug use shows. Thus if illegality is the main cause of corrupt governments, then the best way to root out corruption is to remove illegality.

The way to help corrupt countries does not lie in hectoring them about the virtue of good governance, but in pushing for the legalization of their main exports. The target constituency of the international organizations' advocacy thus becomes the rich, not the poor, world.

Read more on this article...

Sunday, July 27, 2008

Rubin: Bush Administration on Drugs in Afghanistan -- So Wrong, So Long

This reminds me of an old Jewish joke (scroll down for joke), updated:
The rabbi was in his study deep in thought, when in rushed Donald Rumsfeld, U.S. Secretary of Defense, Thomas Schweich, Senior Coordinator for Rule of Law and Counter-Narcotics in Afghanistan, and Condoleeza Rice, Secretary of State. It was clear that they had been having a heated argument that only the learned rabbi could resolve.

"Rabbi, goodness gracious, this mission creeper wants to drag our warfighters into police work!," burst out Rumsfeld. "First we must win the war on terror, even if it means arming, funding, and protecting drug traffickers! Then let others win the war on drugs! Mercy me!"

The rabbi thoughtfully scratched his beard. "You're wrong," he said.

"Of course he's wrong, rabbi," yelled Schweich. "Drugs are funding the Taliban and al-Qaida! Not only that -- our supposed allies in the Afghan government are protecting traffickers! The poor Tajiks and Uzbeks and Hazaras have all stopped growing poppy and only the greedy rich Pashtuns still want more! Even the UN Agency that I fund says so! The only answer is aerial spraying!"

The rabbi studied the commentaries in a holy book and seemed lost in contemplation. "You're wrong," he said.

"But rabbi," pleaded Condi Rice, "Both of these political appointees from different factions of the Republican Party have the ear of the President! So what if neither of them knows anything about Afghanistan or the economics of the drug industry or counter-insurgency? They can't both be wrong!"

The rabbi stared at the ceiling, as if seeking the counsel of a Higher Father. Finally he spoke: "You're wrong too."
(Note to Afghans: to change cultural context, replace learned rabbi with Mullah Nassruddin. Christians -- not sure, but you could try Father Ted or a character from Garrison Keillor.)

If only I were exaggerating....

Rumsfeld armed and empowered anybody who would or could fight the Taliban and resisted any attempt to curb them, since he didn't want any trouble while we saved our forces for success in Iraq (and then needed more to make it even more successful!). The U.S. doesn't do nation building, it does regime destroying. The Bush administration didn't even allocate any new money for reconstruction the first year! They wanted other countries to clean up Afghanistan after we had destroyed al-Qaida and Taliban. Then -- next!

Schweich (and his predecessor, Bobby Charles) revolted against this policy. Drugs, they rightly argued, were funding the insurgency and government corruption. The war on drugs is part of the war on terror. We have to do both at the same time! Spray the fields and arrest the power-holders! If anyone opposes us, arrest them too!

But nobody ever explained how to win over the farmers while destroying their crops before they had secure alternatives. (Schweich denies he was doing this, which shows how little he understands peasant villages in general, let alone Afghanistan.) Nobody every explained how to fight the Taliban and build security in alliance with a government based on the power of drug-trafficking militia commanders funded and armed by the U.S. while arresting these same people. Consequently the U.S. pursued a bad counter-insurgency strategy and a bad pro-insurgency strategy simultaneously, which Schweich confirms in his account of the total absence of an inter-agency process for implementation of counter-narcotics . It's difficult to say if the government as described by Schweich was not implementing a strategy or implementing no strategy.

The answer is, THINK!!! What are we trying to accomplish, where, with whom, and with what resources? Then develop a strategy for the specific situation instead of taking dogmatic unexamined concepts like "war on terror" and "war on drugs" and trying to smash them together.

The goal is political -- to help our Afghan allies win the battle for legitimacy. The political, military, and economic strategies (including counter-narcotics, which cuts across them) have to be integrated for that end. Yes, integrate counter-insurgency, counter-narcotics, development, and lots of other types of operations by disaggregating them into lines of policy and figuring out priorities and relationships: strengthen counter-insurgency AND counter-narcotics by massive aid to increase the productivity and connectivity to markets of rural communities without attacking their livelihoods before the aid comes to fruition; strengthen legitimacy and governance with massive aid to the police and justice system (refused by Rumsfeld to President Karzai's face) while offering a package of cooptation or marginalization for leaders formerly or presently involved in trafficking; use military force sparingly but only against the highest part of the value chain (heroin labs, major trafficking operations); and attack the sources of the drug industry outside of Afghanistan by programs against the export of precursors to the country and money laundering.

I know that was an excessively dense paragraph. For an excessively lengthy exposition of the same thing, see the report I wrote with Jake Sherman.

In conclusion, a warning from Mullah Nasruddin about policy recommendations:
At a gathering where Mullah Nasruddin was present, people were discussing the merits of youth and old age. They had all agreed that, a man's strength decreases as years go by. Mullah Nasruddin dissented.
- I don't agree with you gentlemen, he said. In my old age I have the same strength as I had in the prime of my youth.
- How do you mean, Mullah Nasruddin? asked somebody. Explain yourself.
- In my courtyard, explained Mullah Nasruddin, there is a massive stone. In my youth I used to try and lift it. I never succeeded. Neither can I lift it now.

Only God knows the whole truth.

Read more on this article...

Rubin: Liberal Reality Attacks Bush Appointee's Claims on Colombia and Afghanistan

One of the recurrent themes in Tom Schweich's report from the front about how "odd cabal of timorous Europeans, myopic media outlets, corrupt Afghans, blinkered Pentagon officers, politically motivated Democrats and the Taliban [prevented] the implementation of an effective counterdrug program," is that the strategy he was proposing was tried and true. It had demonstrated its effectiveness all over the world, especially in Colombia.

This just in:

PASTO, Colombia — Along with Colombia’s successes in fighting leftist rebels this year, cities like Medellín have staged remarkable recoveries. And in the upscale districts of Bogotá, the capital, it is almost possible to forget that the country remains mired in a devilishly complex four-decade-old war.

But it is a different story in the mountains of the Nariño department. Here, and elsewhere in large parts of the countryside, the violence and fear remain unrelenting, underscoring the difficulty of ending a war fueled by a drug trade that is proving immune to American-financed efforts to stop it.

Soaring coca cultivation, forced disappearances, assassinations, the displacement of families and the planting of land mines stubbornly persist, the hallmarks of a backlands conflict that threatens to drag on for years, even without the once spectacular actions of guerrillas in Colombia’s large cities.

Soaring narcotics cultivation in the areas affected by the insurgency . . . . Sounds just like Afghanistan. . . .

But then "reality has a well-known liberal bias." Read more on this article...

Friday, July 25, 2008

Rubin: Schweich, ICG, etc. -- Assume the Existence of a State in Afghanistan

The buzz about Afghanistan (outside of Afghanistan) has focused on Thomas Schweich's New York Times Magazine article, Is Afghanistan a Narco-State? This article contains the startling revelation that corrupt Afghan officials protect the drug trade, and that neither President Karzai nor the U.S. Department of Defense believes that direct confrontation with some of the most powerful people in Afghanistan while we are already losing the struggle with the Taliban is a good idea.

Before I proceed, I would like to stipulate that I know and like Tom Schweich. He came into his job as coordinator for counter-narcotics and rule of law in Afghanistan with virtually no background on the subject and read into his brief very quickly and impressively. He is very smart, and he works harder than I do. Unfortunately, he has no idea what Afghanistan is.

(For a detailed analysis of the drug economy in Afghanistan, counter-narcotics policy, and the fallacies of arguments like Schweich's see the report I co-authored with Jake Sherman.)

(Another point: drugs is by far the largest industry in the Afghan economy, probably accounting for a quarter to a third of GDP. It is not a "deviant" activity in the sociological sense. As a political scientist, I don't know of any government in the world that does not have relations with the owners of its country's largest industry and biggest employer. There was a very good essay on this general problem, not focusing on Afghanistan, by a Hungarian World Bank economist. I'll post the link as soon as I can find it.)

I'm going to criticize the Bush administration later in this post (no fainting please), but the basic error Tom makes is not limited to the Bush administration, Republicans, people on the right, or Americans. Samina Ahmed of the International Crisis Group and many others (for example in my own human rights community, if I have not yet been excommunicated) make the same mistake, which we might call the Can Opener Assumption.

According to a story I heard in graduate school, a chemist, a physicist, and an economist were stranded on a desert island where their only provisions were canned food. How would they eat? The chemist tried to analyze the composition of the metal and searched for materials that would rapidly corrode it. The physicist sought to create a lens out of palm leaves and sea water to concentrate the sun's energy enough to pierce the metal. All failed. Finally, they turned to the economist to ask his advice.

The economist examined the can. After reflection he said: "In principal the problem is very simple. First, assume the existence of a can opener."

In this case, the solution is: assume the existence of a state.

Tom summarizes President Karzai's view as:
"[Mr Karzai] perceives that there are certain people he cannot crack down on and that it is better to tolerate a certain level of corruption than to take an aggressive stand and lose power."
I imagine that is a fair statement of President Karzai's view. He has decided not to lose power trying to do things that might fail disastrously. Tom never says that Karzai is wrong about this, so I wonder what his objection is. Maybe such a grim analysis is contrary to his moral principles.

I happen to think that the President of Afghanistan does not have to be that weak, and there is more he could do, though not the way Tom recommends. But Tom tells us a few things he does not comment on, and he refers to a few things he does not say explicitly, that might explain some of President Karzai's problems.

I'm going to make this short, because there is nothing new here. The Bush administration responded to 9/11 by arming and funding every commander they could find to fight the Taliban, regardless of criminal past or involvement in drug trafficking. Then they refused to get involved in "nation building" activity and instead got other "lead nations" to be responsible for various security issues with insufficient funding and capacity, including counter-narcotics. Then, every time that President Karzai tried to remove one of the U.S.-funded commanders from a position, Donald Rumsfeld would warn him against it and say the US would not back him if there was a problem.

Then the Bush administration decided narcotics in Afghanistan was a problem, but since they didn't want to move against the power holders, they decided to attack the poor -- at least they are consistent in their domestic and foreign policy: eradication, eradication, eradication. They wanted to have a "balanced" policy in Afghanistan: alongside our counter-insurgency policy we should also have a pro-insurgency policy. Karzai resisted that too.

(The charge about poverty is the one that upsets Tom the most. He cites the UN, actually the UN Office of Drugs and Crime, which argues that poverty and poppy cultivation are not connected and says he would not support a policy that attacked the poor. I am analyzing the effect of the policies not the intentions behind them. See our report for an explanation of the poor data and statistical fallacies on which UNODC bases its claim. The World Bank takes the position that "Dependence on opium cultivation is associated with poverty.")

To his credit, Tom tried to introduce more incentives and more enforcement. It is very good that he compiled a list of corrupt officials with data that would hold up in a US court (and he is a law professor, not, I think of the Yoo/Addington variety, so he should know). But just who did he think was going to arrest or fire these people?

It's simple: assume the existence of a state.

What does this mean? Tom Schweich says that Afghanistan's Attorney-General, Abdul Jabbar Sabit, says he wanted to arrest 20 corrupt officials and that Karzai stopped him. Unlike Tom, I have known Sabit for 20 years. He helped me in my research by introducing me to some of his colleagues in Hizb-i Islami. But I would not necessarily take everything he says literally.

Actually Sabit did try to arrest a corrupt official one time, General Din Muhammad Jurat, one of the most powerful Northern Alliance commanders in the Ministry of the Interior. The upshot was that Jurat detained Sabit and disarmed and beat his men. This was not in a remote area on the Pakistan border but less than an hour's drive north of Kabul in an area considered to be under "government" control. What does that mean? It means that Jurat and people like him are the government. There is no state that operates independently of power holders like Jurat. The project is to build such a state, not assume its existence and use it based on that false assumption.

The same applies to Samina Ahmed's incoherent critique of "talking to the Taliban," though at times she opposes negotiating with the Taliban and at other time accepting the Taliban's most extreme demands, as if this were the same as talking to them (this is the John Bolton approach to diplomacy: surrender first, then we'll discuss the terms). (Samina is also a friend, but I wonder if ICG takes the same position on Hamas, Hizbullah, or Iran?)

According to Samina, the international community should first build a state in Afghanistan and then negotiate the Taliban's surrender. Talking now would just be a "quick fix" that would not work. First we should build a functioning nation-state, and then construct the political agreement on which it will be based. Sounds good to me! And how do we build that state without a political agreement? Assume the existence of legitimacy. Read more on this article...

Tuesday, July 1, 2008

Rubin: More Counter-Narcotics Success in Afghanistan's "Opium-Free" North

Health Warning: This post may contain irony. Readers impervious to irony should consult other blogs.

UNODC just published this year's World Drug Report, warning about rising heroin production in Afghanistan, but congratulating itself and its drug-warrior allies for the "fact" that "the problem is much localized. Most cultivation (80 per cent) took place in 5 southern provinces, which are the most unstable."

This just in, from Afghanistan's stable, "opium-free" north:
The bazaar sits on a small island in the river Panj, a narrow expanse of shallow but fast-flowing water that is all that separates the Badakhshan region of Tajikistan from the Afghan province of the same name. On either side loom the Pamir mountains, a range of high peaks that cuts the region off from the rest of the world.

When the bazaar opened about five years ago, the hardy Pamiri people of Tajikistan rejoiced that they would now have contact with people on the Afghan side of the river from whom they had been cut off for decades – by the Soviets, by war, and by ruined economies.

Some boasted happily that Tajikistan would soon be able to share its technical know-how with its Afghan brothers.

That know-how has since flowed both ways, although not as the optimists hoped.

The unprepossessing frontier bazaar squatting on the river Panj has become one of the largest arms-for-drugs trading centres in the world.
But opium cultivation is way down in Badakhshan! And Tajikistan is opium-free! I'm sure that any remaining problems can be dealt with through a robust eradication program in Helmand. (Please see health warning above.) Read more on this article...

Wednesday, June 4, 2008

Rubin: NPR -- Poppies to Perfumes in Afghanistan

Ivan Watson of National Public Radio broadcast a story from Jalalabad this morning about Gulestan's effort to develop the essential oil and fragrance industry in Afghanistan:
Since the fall of the Taliban in Afghanistan, poppy production has skyrocketed in the country. The Afghan heroin industry is by far the largest in the world.

For the past several years, a group of Afghan and foreign businessmen has been trying to offer an alternative, by urging farmers to grow flowers for perfume instead of for drugs. But it has been a frustrating and costly project.

Shafiq Azizi is a perfume distiller. When he isn't picking flowers in Nimla garden, a green oasis in the dry hills of eastern Afghanistan, he works in a hot, dusty parking lot in the city of Jalalabad. He darts between a network of steel pipes and drums, dumping fragrant ingredients such as cedar wood into a giant metal vat.

By boiling the ingredients, Azizi extracts valuable oils, which can be sold on the international market for thousands of dollars per gallon.

There are a few small inaccuracies in the story. In particular it credits the U.S. government with providing aid but does not mention the larger investment made by Gulestan's founders from their own resources. It also does not mention Mathieu Beley, who was not in Jalalabad when Watson visited. Beley is the president of Gulestan and played an essential role in establishing and operating the company. The story also identifies Abdullah Arsala, founder of the Red River Essential Oils company as an entrepreneur (which is correct) but does not mention that he comes from an important family of the region. His father was killed fighting the Soviets in 1982, and he was raised by his uncle, commander Abdul Haq, who was executed by the Taliban in October 2001.

The NPR website also has a video, which you can see here. A 2006 study of Gulestan, done for the Aga Khan Development Network, is here. Read more on this article...

Thursday, May 8, 2008

Rubin: Marines Stuck Protecting Opium in Helmand

An AP story quoting me about the deployment of U.S. Marines to Garmser District, Helmand Province, Afghanistan is making the rounds on the Internets, and mostly being misinterpreted by conspiracy theorists who think it shows that the US government (or the "Bush crime family") is engaged in drug trafficking. A surprising number of them seem to be Ron Paul supporters. I thought I would try to explain what I think this story is about and what my quoted comments meant.

The nub:
The Marines of Bravo Company's 1st Platoon sleep beside a grove of poppies. Troops in the 2nd Platoon playfully swat at the heavy opium bulbs while walking through the fields. Afghan laborers scraping the plant's gooey resin smile and wave.

Last week, the 24th Marine Expeditionary Unit moved into southern Helmand province, the world's largest opium poppy-growing region, and now find themselves surrounded by green fields of the illegal plants that produce the main ingredient of heroin.

The Taliban, whose fighters are exchanging daily fire with the Marines in Garmser, derives up to $100 million a year from the poppy harvest by taxing farmers and charging safe passage fees -- money that will buy weapons for use against U.S., NATO and Afghan troops.

Yet the Marines are not destroying the plants. In fact, they are reassuring villagers the poppies won't be touched. American commanders say the Marines would only alienate people and drive them to take up arms if they eliminated the impoverished Afghans' only source of income.

Many Marines in the field are scratching their heads over the situation.

Thanks to the wonders of satellite technology (and, I imagine, the Thoraya company), the reporter, Jason Striuszko emailed me while he was in the field last week:
Hi. I'm on an embed right now with the Marines in Garmser and need to do a story about poppies. The whole town up and down the river is filled with fields. Some farmers have fled the barrages of fighting but many have stayed behind and are currently lancing. Marines are scratching their heads at the apparent contradictions --- hunting down and calling in airstrikes and artillery on Taliban but telling farmers they won't touch their fields, and telling farmers that they'll help protect them from the taliban. Of course, those fields will be harvested and some money likely used to help fuel the Taliban, and the Marines are thinking, essentially, "huh?"

Is this the best U.S. policy can do right now? To have Marines flooding a zone that Taliban will derive money from but not touching the crop?

I realize many would say this should be counterdrug policy or eradication police job, but it's a hard thing to swallow, no?

Will there ever be a day in Afghanistan, if the drug problem can't be fixed by other means, that military steps in?
I have already argued that there is no military or even law enforcement solution to the drug economy in Afghanistan. My answer, part of which Jason quoted, was:
This is the result on the ground of a one-dimensional military policy. All we hear is, not enough troops, send more troops. Then you send in troops with no capacity for assistance, no capacity for development, no capacity for aid, no capacity for governance, and you get a lot of head scratching. Of course now there is nothing they can do. Because they think it is a military problem, they send in the Marines during the fighting season, which is also the harvest season. Why didn't they send them in during the planting season with development aid? Because they don't know about planting and harvesting, or at least they have no idea how to integrate these very basic political and economic considerations into their planning.

If they attack the farmers of course they will lose control of the area. They should try to coopt as many of the local small traffickers as possible to keep them from selling to the Taliban (believe me, the local administration knows who they are) and then launch a big aid program for next year.

After all this time, they still have no idea what they are doing.
I can already hear the reply -- how can you say U.S. policy is one-dimensional, we are giving so much aid to Helmand that it would be the fourth largest aid recipient in the world if it were a country.... Of course, on paper U.S. policy is not one-dimensional. Somebody, somewhere is working in many different dimensions. But here is one of the most important U.S. policy decisions in Afghanistan -- a mini-surge of troops, even of Marines, who have not been in Afghanistan for years. And it seems to have been planned in a completely one-dimensionlal military fashion.

Just two weeks ago I was speaking at an Army seminar, where a colonel asked us civilian "experts" how the military could integrate non-military considerations into its planning. This is a perfect example of the failure to do so. These troops have been sent to Afghanistan with a mandate derived from years of lessons learned. Instead of being told to hunt, kill, and capture terrorists, they are being told to provide security to the local population. Finally. And how do they define providing security? Keeping the Taliban away.

If the planners had included analysts who understood Afghan society a little and also understood the concept of human security, they might have learned that the most important component of security in rural Helmand is gaining a livelihood, and that the opium economy is above all an adaptation to insecurity. The time to wean farmers from the opium economy is before planting, with aid and incentives, not at the time of harvest, when they have already sold their crop on futures contracts and have no alternative. Given the impossible situation in which their commanders have put them, the Marines are doing the right thing by leaving the poppy crop alone. But when will the decision makers understand what this struggle is really about? Not before January 21, 2009, I guess. Read more on this article...

Sunday, April 13, 2008

Rubin: More Misleading Talking Points on Drugs in Afghanistan from UNODC, USG, etc.

Poppy harvest is approaching, and it's eradication time in southern Afghanistan! This is as good a time as any to look back on the debate I have been having with UNODC and the US Government over the relationship of the drug economy to poverty and counter-narcotics strategy. My colleague Jake Sherman and I presented our findings and analysis in a report released in February (cover, left), which included in an appendix a letter that I wrote to the administrator of UNODC, Antonio Maria Costa.

But first, a few events that haven't gotten much coverage, what with Obama's low bowling scores and all:
Militants launched two attacks against Afghanistan's vulnerable police, killing eight officers, including four who were destroying a field of opium poppies, officials said Sunday.

Kandahar provincial police chief Sayed Agha Saqib said the militants killed four eradication police in the province's Maiwand district on Saturday. The attack is at least the third time militants have targeted such teams in the last several weeks and comes one week after fighters killed seven officers who were eradicating poppies.

Saqib has said police would increase the teams' protection. Around 100 officers on the country's poppy eradication force were killed in the line of duty over the last year, the Interior Ministry has said.

There are a lot of such reports these days. In most such reports the "militants" are identified as "Taliban." In many of these areas, the local population is reported to be hostile to the government, and the "Taliban" are said to have reinfiltrated in preparation for their yearly offensive. The tempo of attacks is already significantly above last year's. I wonder if there is any connection....

Harjit Sajjan, a police detective from Vancouver, British Columbia, served in military intelligence with the Canadian Land Forces in Kandahar. His work with the local population was key to halting the Taliban offensive in the summer of 2006. Detective (Major-Reserves) Sajjan wrote me a note about his observations, which also appears as an appendix in our report. In his frontline experience, "The current eradication program is pushing the farmers to the Taliban," because "eradication impacts the farmers who are trying to feed their families."

A U.S. official with responsibility for counter-narcotics in Afghanistan wrote me to share his opinion that our report was "So inaccurate as to border on dishonest." A senior international official with lengthy experience in Afghanistan and many other war-torn countries (including his own) found the report to be "better than anything ever written on the subject by UNODC or anyone else." UNODC has responded to arguments made by us and other critics. I have also been involved in a number of private exchanges on these matters.

The experience has been quite frustrating. I am sure that I am wrong about some things. I would welcome debate on the points that we raised. But instead the responses have consisted of combinations of: creating easy targets ("straw men") by distorting arguments in our report and elsewhere into ridiculous caricatures, and then refuting these distortions; repeating dogmatic formulae without engaging or acknowledging the arguments against the way that these dogmatic formulae are being applied; and changing the subject by asserting obvious facts as if these facts refuted other arguments. Examples:

1. Refuting distortions: We and other critics argue that crop eradication in insecure areas disproportionately hurts the poorest people involved in the opium economy, because the sharecroppers and laborers in insecure and isolated areas have the fewest alternatives. UNODC responds that "poverty does not appear to have been the main driving factor in the expansion of opium poppy cultivation in recent years," which is a valid response to a claim no one has made. The US government responds to the "myth" that "Afghan poppy is only grown by poor farmers" (another claim no one has made), arguing that "In the South, where most of the poppy is now grown, cultivation is organized by wealthy traffickers and big landowners who plant poppy because of high profits and the absence of law enforcement in insecure areas." The opium economy is controlled by rich people who are seeking profit! Imagine that!

The US and UK claim that they "are helping the Afghan Government to target eradication at the wealthy, not the poor" (I can't link to this source). Besides the ludicrous idea that the US and UK have better information on land tenure in rural Afghanistan than the Afghan government (see this), I have yet to receive an explanation, even in response to direct questions, of how the US and UK intend to target rich landowners without targeting their poor sharecroppers and laborers. I'm still waiting. UNODC and the two governments nowhere in their recent arguments acknowledge the existence of sharecroppers and laborers. I shall come back to how they use sloppy language to disguise sloppy thought, with potentially the same disastrous results that George Orwell warned about in "Politics and the English Language" (the points apply to any language, not just English).

2. Dogmatic formulae: we argue that eradication should be used only in secure areas where licit livelihoods are available and communities have confidence in them (which by the way, is the official policy of the Afghan government, which the US and UK have overruled with their pressure tactics). A recent report by UNODC demonstrates that alternative livelihood programs reduce poppy cultivation only in secure areas; it stands to reason that the same is true of eradication. Security is what we social scientists call a"contextual variable." Where life is relatively secure and government can operate, alternative livelihood programs lead communities to reduce poppy cultivation, and (a reasonable hypothesis) a credible threat of eradication does likewise. Where there is little or no security, however, alternative livelihood programs are used for corruption or to improve the yield of illicit crops (as in Helmand), and eradication leads communities to support the insurgents. Hence security -- above all a political issue -- must come first.

Rather than engage this argument, the US and UK respond with the dogma that "Virtually every successful anti-opium campaign in history has required a downside risk to deter poppy cultivation at the level of the individual farmer, and eradication is just one risk factor among many." If either government has an answer to our arguments about the sequencing and contextual requirements for eradication to succeed, I have yet to hear it. The fact that "some" downside risk is necessary provides no evidence that any and all downside risk is effective. Evidence (which we cite) indicates that the downside risk created by the current policy of eradication in insecure areas drives communities to turn against the government rather than to move out of the drug economy. I would welcome a genuine argument against this evidence, if there is one.

3. Changing the subject: We argue, and the US and UK governments claim to agree, that the principal target of counter-narcotics policy in a situation that combines counter-insurgency in some areas and peace building in others is narcotics profit that funds insurgency and corruption. All evidence indicates that traffickers and their political-military protectors, not rural communities engaging in cultivation, receive 70-80 percent of the gross profits of narcotics in Afghanistan. We also argue that crop eradication has no effect or a harmful effect on curbing narcotics profits, by moving cultivation around, raising the price of raw opium, and driving traffickers to seek profit higher on the value chain (as they have done). We also argue that it is futile to try to de-fund the Taliban and al-Qaida through counter-narcotics policies, because they have alternative sources of funding. The US-UK response?
The opium trade and the insurgency are closely related. Poppy cultivation and insurgent violence are correlated geographically, and opium now provides the Taliban with a portion of its revenues.
Fine. There is a correlation between insecurity and poppy cultivation. As we argue in our report, the causality is primarily from insecurity (which has political causes) to poppy cultivation, not vice versa, but the US and UK governments apparently do not recognize the distinction between correlation and causality. Yes, the Taliban get part of their revenue from poppy production. I daresay that every significant political group in Afghanistan, including the Taliban, derives a portion of its revenue directly or indirectly from the narcotics economy. This obvious fact, however, in no way responds to the argument that crop eradication has at best a neutral effect on the amount of illicit funding generated by the drug economy, and that such funding is best addressed by interdiction, including interdiction of the imports of precursor chemicals into Afghanistan from other countries.

This might seem a little wonky... and thoroughly analytical. When I started posting on this blog, I warned readers that I was a senior research scientist. But there is a very important political point: UNODC and the US Government use what Orwell called a "mixture of vagueness and sheer incompetence" to create prose that "consists less and less of words chosen for the sake of their meaning, and more and more of phrases tacked together like the sections of a prefabricated henhouse." A mass of words "falls upon the facts like soft snow, blurring the outline and covering up all the details." To defend the indefensible, "political language has to consist largely of euphemism, question-begging and sheer cloudy vagueness."

I shall illustrate with the example from UNODC's 2007 Afghanistan Opium Survey that I cited in my original letter to Mr. Costa:
First, opium cultivation in Afghanistan is no longer associated with poverty – quite the opposite. Hilmand, Kandahar and three other opium-producing provinces in the south are the richest and most fertile, in the past the breadbasket of the nation and a main source of earnings. They have now opted for illicit opium on an unprecedented scale (5,744 tons), while the much poorer northern region is abandoning the poppy crops.

Second, opium cultivation in Afghanistan is now closely linked to insurgency. The Taliban today control vast swathes of land in Hilmand, Kandahar and along the Pakistani border. By preventing national authorities and international agencies from working, insurgents have allowed greed and corruption to turn orchards, wheat and vegetable fields into poppy fields.
Quite a target-rich environment. (If UNODC is like other organizations with which I have experience, politicos in the front office wrote these paragraphs, not researchers, who might be embarrassed by them.) Both paragraphs start with sentences using extremely vague verbs in the passive voice, as if UNODC were using Orwell as a source of negative inspiration. Opium cultivation "is no longer associated" with poverty. Opium cultivation "is now closely linked" to insurgency. There are no human beings in these sentences, just abstractions that might be linked or associated to each other. Taken on their own terms, such sloppy assertions mean very little. But these statements cannot be taken on their own terms: UNODC's leadership is making these assertions as interventions in a political struggle over Afghanistan.

UNODC has produced a whole "discussion paper" about whether "poverty" is the "main driver" of opium cultivation. Not surprisingly, UNODC finds that both rich and poor participate in Afghanistan's largest industry. Only a UN Agency could think this finding worthy of reporting. But the argument over poverty and opium cultivation has nothing to do with such banal truisms.

UNODC never identifies who is making these decisions about poppy cultivation:
Hilmand, Kandahar and three other opium-producing provinces in the south have now opted for illicit opium on an unprecedented scale (5,744 tons), while the much poorer northern region is abandoning the poppy crops.
Apparently in southern Afghanistan provinces make decisions about opium cultivation, whereas in the north the entire region decides together. And these "rich" southern provinces (though the three "other" ones are actually much poorer than most of the north) have made the wrong decision, while the poor but virtuous North has made the right one.

[Update: This just in from the field:
10 Apr, Balkh Province, Balkh District, Kata Khel Village – One person was arrested for the possessions of narcotics and weapons. Eighty two kilograms of Opium, a shotgun and an AK-47 was seized from them.
Balkh is the poster child for "poppy-free" provinces.]

First, the argument about the relationship of poverty to the drug economy refers to the poverty of the entire country of Afghanistan, not just relative poverty within Afghanistan. Afghanistan is tied for last place in human development and security indicators as the poorest country and most insecure in the world along with a handful of African countries. It has been ravaged by thirty years of war that destroyed physical, human, and social capital, in which the opium economy was a survival strategy from which some profited handsomely.

Second, though rich and poor both profit from the drug economy (and, tautologically enough, the rich profit more), the poor are the most dependent on the drug economy for survival, especially in insecure areas. Therefore forced eradication in the so-called "rich" province of Helmand, where average incomes are $1 per person per day, disproportionately hurts the poor. That the poppy may be grown on land owned by the relatively wealthy has no bearing except as magician's business drawing attention away from the actual trick being performed. The main point is not care for the least among us (though I confess a certain such concern), but that eradication in insecure areas drives the poor (the vast majority) to seek protection from the insurgents (see opening of this post). But these actual people, their motives, alternatives, and choices, do not exist in the UNODC language fog.

The second paragraph is worse. I already noted that by itself a correlation of insurgency or insecurity with poppy cultivation cannot explain anything or argue for any policy. That depends on how policy interventions affect the choices of human beings. But in UNODC's language there aren't any human beings! Just "insurgents," who "have allowed greed and corruption to turn orchards, wheat and vegetable fields into poppy fields." Thus UNODC technically avoids saying that the Pashtuns of southern Afghanistan, unlike the virtuous other ethnic groups of northern Afghanistan are greedy and corrupt. (Nonetheless, this is what some Afghans understand them to be saying, and is another reason that this approach is highly irresponsible.) Apparently "Greed" and "Corruption" are political and economic actors in southern Afghanistan, and they must be struck down by "Counter-Narcotics" and "Counter-Insurgency," as if Pilgrim's Progress had come to Afghanistan.

This language situates us in a metaphorical world of abstraction, rather than the real world of violent struggle among some of the world's poorest and most traumatized people. We are engaged in an apocalyptic struggle with Greed, Corruption, and even, dare I say... Evil! How can anyone oppose measures against Greed and Corruption? Thus by conveniently removing the Afghans from Afghanistan, UNODC and the governments that fund it justify carrying out counter-narcotics policies driven by ideology and bureaucratic interest against the interest not only of Afghans but of all those who wish to see a secure and stable Afghanistan.

It is interesting to compare the World Bank's rhetoric with UNODC's. I imagine that it would not be difficult to find World Bank writings that could be similarly criticized as using vague language to disguise human realities. But here is the World Bank's main recommendation about the opium economy in Afghanistan:
Today, production is increasingly concentrated in five southern provinces where the security situation is most acute. This makes it vital that alternatives to opium address the problems of these vulnerable rural farmers by supporting their access to land, credit, food security, and sustainable economic livelihoods.
Here is how the World Bank summarizes the "Narcotics Challenge" in Afghanistan:
Afghanistan is a desperately poor, war-ravaged country. The usual challenges of
post-war reconstruction are made even more difficult by the continuing insurgency, by the age-old centrifugal forces that have always made Afghanistan hard to govern, by the extreme weakness of modern institutions, and by widespread corruption and lack of rule of law.

In the last two decades, Afghanistan has become the world’s predominant supplier of
illicit opiates, accounting for over 90% of world production and trade. Total gross revenues from the illegal drug trade in Afghanistan are equivalent to over one-third of licit GDP. Millions of Afghans benefit directly or indirectly from the opium economy.

The government’s strategy, with global backing, is to fight drug trafficking and to
progressively reduce opium production over time. Where farmers are better off and clearly have viable alternatives, law enforcement measures can be taken. Where farmers are poor, or where landless labourers are involved, government policy is to develop viable alternatives for the rural poor, and only then [my emphasis -BRR] use sterner measures to enforce a ban on opium poppy cultivation.
This prescription is based on study of and dialogue with the actual human beings involved:
Afghans engaged in opium production can be broadly categorized in four types:

1. Better-off farmers who are not dependent on opium. The exit of these farmers from the opium economy is largely a function of security and governance, and of legal market opportunities.

2. Smaller farmers currently dependent on opium but with some potential for producing for legal markets. Where there are good markets for legal crops and livestock, and provided that a modicum of security and good governance are present, these farmers may be expected to shift away from opium in the medium term

3. Poor farmers in remote areas currently highly dependent on opium, with little potential to produce for the market and scant local labour opportunities. Over the longer term, these farmers can move away from opium if value can be added to local on-farm and off-farm production and to labour. Out-migration is likely to play a significant role for this group.

4. The landless, currently highly dependent on providing labour for opium production
(through wage labour or sharecropping). Adding value to labour, developing employment opportunities, and facilitating orderly migration are exit paths for this category over the longer term.
Some U.S. officials dismiss these findings like a Republican School Board considering the teaching of evolution. They claim it is all nonsense, and harsh measures are needed because we are in a war. Orwell noted:
Things like the continuance of British rule in India, the Russian purges and deportations, the dropping of the atom bombs on Japan, can indeed be defended, but only by arguments which are too brutal for most people to face, and which do not square with the professed aims of the political parties. Thus political language has to consist largely of euphemism, question-begging and sheer cloudy vagueness.
The real argument in this case is that the struggle against terrorism takes priority over the welfare (or lives) of poor Afghan farmers. That is not an empirical proposition but a political one -- but one that those in power prefer not to articulate. On strictly empirical grounds, this political position is self-defeating. Without gaining the support of the poor majority of Afghanistan for a government integrated into the international system, we will never be able to secure the country and region against al-Qaida and its offshoots. In any case, as we have stated in arguments that have never been even acknowledged, let alone refuted, the existing policies will not reduce the funding of the Taliban and al-Qaida.

One more thing -- the great cannabis scam. In previous posts I pointed out the fallacy of calling northern Afghanistan "poppy free," just because the power-holders have moved up the value chain to trafficking and processing. They import the raw material from the south. But UNODC mentions an interesting fact in its 2008 Rapid Assessment Survey, though it strenuously abstains from drawing any conclusions from it or attributing it to the actions of Greed and Corruption:
Another disturbing trend is the steady rise in cannabis cultivation, giving Afghanistan the dubious distinction of being one of the world’s biggest suppliers of cannabis in addition to providing over 90% of the world’s illicit opium.
And where is this cannabis grown? Substantial numbers of Afghan communities grow it in the main poppy producing provinces, but also in the "poppy-free" provinces of Paktya (50 percent of villages), Logar (33%), Sar-i Pul (33%), Baghlan (23%), and Balkh (22%). So the "poppy-free" provinces are not "narcotics-free." Their main alternative livelihood is not anything supplied by USAID, but another illegal narcotic! The US and UNODC conceal this fact through yet more deceptive use of language. In one sentence they are engaging in "counter-narcotics," and in the next they are succeeding because provinces are "poppy-free" (though they are full of cannabis plantations and drug traffickers). When reading any official pronouncements on this subject, look carefully to distingish among poppy, opium, heroin, trafficking, and narcotics. That will give you a better idea of the true landscape beneath the snowfall of verbiage.

To analyze Afghanistan's economic dependence on bad governance and insecurity, we need an estimate of the total value of the illicit or criminal economy in Afghanistan: opiate production and trafficking (not just poppy production -- UNODC provides such estimates, though policy makers generally ignore them), cannabis and hashish, methamphetamines (there are reports of start-up labs), and all the other forms of smuggling and looting (of gems, timber, state assets, land, and more) that make up the illicit sector. Then we need a carefully designed and politically feasible policy to promote security and legitimate rule, and, eventually, less bad governance. Word games about Poppy, Greed, and Corruption will not get us there, Pilgrim. Read more on this article...

Tuesday, April 8, 2008

Rubin: Who Lacks Capacity? Using the Skills of the Opium Trade for Counter-Narcotics

Foreign aid donors and consultants working in Afghanistan often complain that Afghans “lack capacity” and suggest programs of “capacity building” to enable Afghans to develop their economy and state. Such programs train Afghans in internationally accepted standards and practices, on the assumption that mastery of these standards and practices constitutes “capacity.”

Unfortunately many of these internationally accepted standards and practices do not work very well in Afghanistan, since they presuppose a set of interoperable systems that do not exist. Hence the need to train Afghans to fill out project proposals for donors soon mutates into demands for a different type of education and legal system, which in turn press Afghans to abandon their languages and political institutions. Since the international standards and practices don’t work very well anyway, Afghans resist abandoning their identity and accepting that they “lack capacity.” Mutual incomprehension and resentment result, if not worse.

Sometimes when a consultant tells me that Afghans lack capacity, I try to imagine my interlocutor being forced to survive in Uruzgan province with two jaribs of land and a goat. I wonder if this person would be capable of transferring billions of dollars from undocumented workers in the Persian Gulf to families living in remote villages with no banks or telecommunications. I wonder if he could transform a local conflict incomprehensible to outsiders into a million dollar business funded by superpowers that h have been convinced they have existential stakes in the outcome. I wonder if he could smuggle emeralds out of Afghanistan to buy weapons and ammunition in Ukraine and transport them across seven closed borders into the Panjshir Valley. I wonder if he could create a multibillion dollar a year industry in one of the world’s poorest countries with no government by turning those handicaps into assets in a world with an insatiable demand for illegal addictive substances.

A brief examination of the people of actually existing Afghanistan indicates that they do not lack capacity. If they lacked capacity, they would be dead by now. But they have developed capacities to deal with their actual situation over the past several decades. During that time, the ability to apply for a grant from USAID was not particularly useful. Intelligence agencies are much less demanding of financial accountability and deliverables.

Instead, Afghans developed capacities that enabled them to survive and in some cases prosper under conditions of insecurity and high risk. In order to transfer money from migrant workers to their families, they developed extensions of the longstanding havala system. This system, which long took advantage of the movements of nomads and traders to transfer letters of credit between hinterlands and commercial hubs, has adapted to the age of telecommunications. Money can be transferred electronically from an account in Saudi Arabia to an account in Pakistan. A dealer who has been contacted by either a personal emissary or mobile phone withdraws the cash. A personal emissary, a traveler, nomad, or trader, or a mobile or satellite phone call courtesy of the CIA and other intelligence agencies, who supplied them to commanders, can inform the recipient, who can come to the city or town to collect. Or the agent can use the cash to purchase goods in a market center and then transport them for resale at a profit in the destination area. He transfers the original amount to the recipient and keeps the profit and costs as his fee. All of these transactions rely on networks of social capital underpinned by kinship, religion, fear of retribution, and other forms of reciprocity that operate in the absence of a state or without support from it.

Among the legacies of decades of conflict in Afghanistan were hyperinflation, a debased currency, and the circulation of multiple series of banknotes of different origins. Printing currency was a way for leaders with weak administrations to leverage a degree of international recognition into flows of cash, and they did so from the late 1980s on. Therefore, as part of the process of establishing peace, stability, and accountability, the Bonn Agreement of 2001 called on the interim administration of Afghanistan to establish a new central bank to emit currency in a transparent, accountable fashion. In 2002, when the Afghan government decided to implement this measure by demonetizing the old currency and issuing a new one printed with advanced technology, the IMF told the government that Afghanistan lacked the capacity to carry out such a change, as it had no functioning banking system. The IMF recommended dollarization of the economy instead.

Under the leadership of Minister of Finance Ashraf Ghani, the Afghan government rejected this argument and succeeded in changing the currency within a few months (see the account by Ghani and his collaborators in their chapter in this book). The exchange was completed without incident in early 2003. The International Security Assistance Force, then under the command of Turkey, refused to provide security for an operation that required the transport of billions of dollars worth of cash through a war-torn impoverished country with no functioning police or courts. USAID promised to supply helicopters to transport the currency notes but lacked the capacity to deliver them, as it was unable to obtain the required insurance. As international actors either lacked or would not use their capacities, Afghanistan carried out this change using its own capacities. The major obstacle encountered was the lack of physical capacity to burn the old notes as quickly as they were turned in.

How did they do it? The Afghan government used and developed the existing capacities of the society, rather than assuming that these old capacities either did not exist or had to be replaced with new, imported capacities. The Afghan government convened the havala dealers and worked out an exchange system with them, tapping into their tremendous knowledge of the functioning of money markets and monetary transfer systems in Afghanistan, as well as their connections to traders and other economic actors throughout Afghanistan.

Since international actors were unable or unwilling to assist with security, the finance minister requested the assistance of the minister of defense. At that time the Minister of Defense, Marshall Fahim, commanded the militias who had fought the Taliban, not a professional army. He and the Minister of Finance, Ashraf Ghani, were political opponents on many issues, including the issue of the future of the militias that had fought the Taliban. Nonetheless they were able to reach agreement on the currency exchange on the basis of national interest. The leaders of the militias in question are now members of parliament or government officials, and their militias have been largely demobilized. The currency has remained stable, and Afghanistan’s monetary reserves have increased from virtually nothing to several billion dollars.

Many of those demobilized have entered the opiate industry. This industry, whose yearly export value of over $3 billion is estimated to equal half of the licit GDP in value and to constitute the bulk of the cash economy, is also a major reason that the new currency has remained stable and that Afghanistan’s foreign reserves have increased.

After ignoring the opiate economy for several years during which the US backed protectors of drug trafficking as allies in the war against the Taliban and al-Qaida, policy has now shifted. The entry of the US into counter narcotics policy, like its entry into other areas of “nation building” originally rejected by the Bush administration, is welcome, as it holds out the potential for the needed funding and political support for the difficult endeavor of converting Afghanistan’s economy from an illicit one depending for protection on illegal armed groups into a licit one relying on the apparatus of the rule of law. This transformation is fundamental to the establishment of peace and stability in Afghanistan.

Let’s look at the drug economy from a different angle, as a high-capacity adaptation to indescribable devastation. This suggests that, like the transition to a new currency, the transition to a new, licit economy should use the existing capacities developed over the past few decades. Entrepreneurs have established a multibillion dollar a year business in Afghanistan. They have leveraged the country’s main weaknesses – poverty and the lack of security and rule of law -- to make billions by producing an illicit addictive substance for which there is an insatiable demand. They have created a value chain starting with the extension of agricultural credit to farmers in the most remote areas through a network of traders. These traders offer futures contracts for the product to farmers, guaranteeing them cash to feed their families through the winter and a market for their finished product. Through these futures contracts farmers are guaranteed both cash income and a market, simultaneously.

Small industrial enterprises, dispersed in remote areas to avoid detection, transform this raw material into heroin, a high-value, low volume product, using state of the art technology. This technology requires the importation every year of thousands of tons of acetic anhydride, a substance not manufactured in Afghanistan. Someone is paying suppliers in the neighboring countries for this industrial material and smuggling it into Afghanistan to supply the labs scattered throughout the country. Traders in turn purchase the refined material or pay the labs to process raw materials and then arrange to transport the product across the border through the use of ethnic and tribal ties as well as various types of militias. To ensure the settlement of disputes and the security of the operation, the economic actors all along the value chain have established a shadow system of governance, involving local councils, bribed officials at all levels of the government, and flexible arrangements with a large variety of armed groups.

Such a criminal industry was the only possible large-scale economic activity in the past several decades, and a large portion of the Afghan population has participated in it. Thus a country that long largely relied on subsistence farming for food production has now developed a massive sector of commercial agriculture for the international market, with the associated financing, insurance, production, agricultural extension, marketing, and trading activities.

David Mansfield, who has spent over a decade of field research studying the opium industry in Afghanistan, characterizes this industry as an adaptation to a situation of high risk. Many aspects of the business model, and in particular the way that relations between traffickers/processors and cultivators are structured, function in such a way as to reduce and spread risk among participants in the industry.

Discussion of alternative livelihoods often is reduced to crops for farmers. But the opium economy creates more non-farm than farm income. Some of that income goes to traders who purchase opium in villages or in bazaars. Many of these traders also act as lenders and purchasers of futures contract.

These small and medium traffickers correspond to the hawala dealers in the currency exchange. They have the detailed knowledge of the credit and marketing needs of the farmers that any new rural economy would need in Afghanistan. Rather than eliminated or targeted, they should be integrated into new institutions that make use of the skills and networks they have developed.

For instance, they could be offered an amnesty in return for capitalizing new rural credit institutions. Each trader/lender will have the authority to make loans for a set of defined purposes for which the institution is established, including futures contract purchases of any licit agricultural good. In order to reduce risk, the government with the support of International Financial Institutions should establish some kind of loan guarantee or insurance scheme to encourage a higher volume of credit without exorbitant rates. The subsidy, guarantee, or insurance should assure that the cost of borrowing from this new institution will be significantly less than the cost of contracting debt through the salaam system or with opium as collateral.

The agricultural lenders would need technical advice, but they could certainly also supply technical advice, given their experience. In provinces where little or no opium is grown, there will still be traders or landlords who operate as lenders. Some of them could be recruited and new employees trained to create a credit and investment institution similar to what the opium economy has established elsewhere.

This is just a crude idea -- but let's develop some more. But I wonder if we have the capacity....


Read more on this article...

Tuesday, March 25, 2008

Rubin: Patriotism and War on Drugs Remain the (Last?) Refuge of Scoundrels

Gary Kamiya tells it like it is at Salon:

Maybe we really are doomed to elect John McCain, remain in Iraq forever and nuke Iran. Nations that forget history may not be doomed to repeat it, but those that never even recognize reality in the first place definitely are. Last week's ridiculous uproar over Rev. Jeremiah Wright's sermons proves yet again that America has still not come to terms with the most rudimentary facts about race, 9/11 -- or itself.

The great shock so many people claim to be feeling over Wright's sermons is preposterous. Anyone who is surprised and horrified that some black people feel anger at white people, and America, is living in a racial never-never land. Wright has called the U.S. "the United States of White America," talks about the "oppression" of black people and says, "White America got their wake-up call after 9/11." Gosh, who could have dreamed that angry racial grievances and left-wing political views are sometimes expressed in black churches?

Scott Horton goes back to the Faulkner source of Obama's quote in the speech to tell it like it was and is but doesn't have to be:

What do two short stories by William Faulkner published by Harper’s in the fall of 1940 have to do with the 2008 presidential campaign? Faulkner finalized them in the midst of a presidential election campaign, as Franklin Roosevelt sought his third term, a fact which breaks through in a few spots. These stories seem to be a simple narrative of life in the rural South, one is a rite of passage story and the other a strange tragi-comedy. But these stories are indeed intensely political, and their message was one that the readership would hardly have been prepared to cope with, in those dark days as the specter of war loomed over America. It seems we have to go forward seventeen presidential elections to come to the day when they become a matter of public discussion.

Last Tuesday, Senator Barack Obama, facing a withering assault over his relationship with his former pastor, Rev. Jeremiah Wright, delivered a carefully measured and thoughtful speech on race relations in America. The speech was by almost every measure something extraordinary. It was delivered against the advice of Obama’s advisors, who felt—probably correctly—that any discussion of the race issue would only be used to isolate him in public debate. But more significantly, the language of the speech was not measured and shaped by focus groups. It proceeded assuming an educated and intelligent audience. As Reagan speechwriter Peggy Noonan reminded us in the pages of the Wall Street Journal, no political advisor would ever hear of such a thing. She points to two give-aways: the use of the word “endemic” and a quotation from Faulkner.

The words quoted were

‘The past isn’t dead and buried. In fact, it isn’t even past.’

But actually the language is just off. The actual words are “The past is never dead. It’s not even past.” They come from Requiem for a Nun. But the meaning and use that Obama takes is taken straight from an earlier Faulkner novel, Go Down, Moses, a brave and profound work about race relations in America. Being bound to, but struggling to overcome the past is a key message of that work. In fact these words could be taken as a sort of moral test that he has put to a focal character: will he remain a servant to the past, or will he succeed in shaking those chains free? The protagonist fails that test, with his very Southern attitudes and bigotries. In fact, Faulkner did himself at least once–in an outburst in an interview in the fifties, which Faulkner later attributed to too much alcohol. But Faulkner left a transcendent message: Some day, he tells us, some day the people will rise above these divisions and will recognize the ties that bind all. They will recognize the fundamental lie of racism. This was not, of course, a message which could be easily delivered to an American audience in 1940. Today, however, the message finds people ready to listen and to believe.

On another topic: UNODC has published the discussion paper on poverty and opium production that they promised would respond to the criticisms I made of their claim that poverty is not linked to opium poppy cultivation in Afghanistan. Of course the paper does no such thing. It once again indicates that while UNODC is very skilled at estimating cultivation and yields, it does not understand social structure. Furthermore, while superficial analysis is unfortunate, UNODC Director Antonio Maria Costa continues to present this analysis misleadingly in a way that supports the "War on Drugs" approach to counter-narcotics.

I will post a complete analysis soon. Read more on this article...

Friday, August 24, 2007

Counter-Narcotics in Afghanistan (First Installment): Defining the Problem

The U.S. Department of State Bureau of International Narcotics and Law Enforcement released a new “U.S. Counternarcotics Strategy for Afghanistan” this month. The strategy calls for added efforts in all pillars of the Counter-Narcotics effort in Afghanistan, but its most salient change from the past is its proposal for more forceful and extensive eradication of opium poppy crops. The Strategy calls for “non-negotiated” eradication, ostensibly in order to avoid the manipulation of eradication by local elites to exempt their own crops and focus eradication on their rivals or the powerless. While the Strategy states that no means of eradication will be used without the approval of the Government of Afghanistan, it contains many examples of thinly veiled pressure on the Government of Afghanistan to authorize the spraying of herbicides both from the ground and from the air.

Implementation of this strategy will lead to a rapid deterioration of security at least in the south of the country and the further weakening of the Afghan government. Afghans will conclude (if they have not so concluded already) that the U.S. does not consider Afghanistan to be sovereign and that the foreigners are in Afghanistan to pursue their own agenda, not to help Afghanistan. Significant portions of the countryside that have been neutral or pro-government will move toward the Taliban. The farmers will respond to the greater risk imposed by eradication not by stopping poppy cultivation but by preventing the government and international community from entering their areas. By and large, they will succeed, especially as US resources, credibility, and alliances continue to be drained by the disastrous war in Iraq.

Currently, the Taliban-led insurgency does not have stable and exclusive control of any significant territory and population in Afghanistan, as does the FARC in Colombia. Areas subject to aerial spraying for crop eradication, however, are likely to come under much more stable Taliban control. The government and its international supporters will be unable to enter such areas to provide development assistance or to engage in interdiction. Hence the more that aggressive eradication and aerial spraying are introduced before Afghans believe they have secure alternative livelihoods, the more the counter-narcotics policy will be reduced to eradication by military means, amounting to a war on the livelihood of the part of the Afghan rural population most vulnerable to Taliban influence.

Implementation of this strategy will also undermine attempts to stabilize the tribal areas of Pakistan and Baluchistan, by providing incentives for drug traffickers to move their operations into those areas just as Pakistan is undergoing a political crisis with unpredictable results.

The continuing escalation of tension between the U.S. and Iran will also promote the success of drug trafficking, as does the lack of U.S.-Iranian cooperation on counter-narcotics, the policy area where they have the clearest common interest. If the administration attacks Iran, as many observers are predicting, Iran will respond in such a way as to make much of Afghanistan ungovernable, including regions that the US government seems to think are under the stable control of the government. Counter-narcotics and many other policies will become impossible to implement. Iran's current activities in Afghanistan are both preparing for such an eventuality and signaling what it can do. As I will discuss in subsequent posts, the administration can have a confrontation with Iran or some success in Afghanistan, but not both.

I have read only the unclassified version of the Strategy. I am told that the classified version includes some of the elements that are missing in the open version, in particular on money laundering and high-level corruption. Those with the needed access can decide whether those sections meet some of the objections in my critique.

In a short series of posts, I will suggest why I find the proposed strategy so dangerous to international strategic goals in Afghanistan. In these posts I will confine myself to considering strategies within the framework of the current prohibitionist international regime for narcotics, including opium and its derivatives. I have argued elsewhere (including in front of the Senate Foreign Relations Committee), that
The international drug control regime, which criminalizes narcotics, does not reduce drug use, but it does produce huge profits for criminals and the armed groups and corrupt officials who protect them. Our drug policy grants huge subsidies to our enemies.
Over the next few years, at least, we will be working within that regime, which I take as a given here.

This first post deals with defining the problem and understanding the situation.

Overall goals:

The overriding goal of the U.S. and allies in Afghanistan is stabilizing the government and the region to (1) assure that al-Qaida cannot re-establish its bases in Afghanistan and (2) destroy al-Qaida’s current sanctuary in some of Pakistan’s tribal agencies. There are (and were long before 9/11) moral, humanitarian, and altruistic reasons to try to heal the wounds of Afghanistan and provide its people with a better life, but those reasons did not inspire the intervention that has been taking place since October 2001. The strategic goal is related to the ethical ones, however: the only long-term way to secure the region is to strengthen the state institutions and economies of both Afghanistan and Pakistan to the point that they can enforce norms of the international system with the consent of the people throughout their territories.

Among the many reasons that the US, UN, NATO, and dozens of donors and troop contributors are NOT in Afghanistan is to stop drug addiction in Europe or the U.S. Mounting a major state building effort in Afghanistan would hardly be the appropriate means to attain that goal. This does not mean that Donald Rumsfeld’s original policy of turning a blind eye to drug trafficking by counter-terrorism allies was right. That view of counter-narcotics was based on the same myopic vision that saw counter-terrorism solely as a "kill and capture" mission, whereas it can succeed only if it establishes the basis for effective security and policing. Policing and law enforcement, unlike military action, require the consent of the bulk of the population. That is why efforts to eliminate narcotics in a badly governed or ungoverned state tend to drift into a military mode (war on drugs). I will explain that when I discuss interdiction.

So what is the problem posed by the narcotics economy? The narcotics sector consists of economic activities whose profit (or rent) derives from illegality. The final price of narcotics is determined mainly by the cost of smuggling and distributing an illegal product rather than by conventional costs of production. Afghanistan’s principal comparative advantage is not in poppy cultivation but in the production of illegality. It is cheaper to engage in illegal activity in Afghanistan than almost anywhere else in the world. Iraq is catching up, however. Having first followed Afghanistan's lead in becoming a major haven for transnational terrorism, Iraq is now starting to produce opium poppies.

Thus Afghanistan's drug economy expanded when the state broke down after 1992. It consolidated itself and expanded further under the Taliban, because the Islamic Emirate was a peculiar type of state: internally it strictly enforced its own laws and brought security to trade routes and rural areas, at least in the Pashtun zones. But the government was not recognized internationally and did not recognize international law. Narcotics was profitable because it was illegal beyond the borders of Afghanistan, but it could expand securely within Afghanistan because of the security and administrative control of their regime. It consequently produced only modest revenues inside Afghanistan, compared to today.

Since the Taliban never treated drug trafficking as a crime, and forbade poppy cultivation for only one year, the drug trade provided little or no opportunities for corruption within Afghanistan. This changed only during the year that the Taliban banned poppy cultivation (2000-2001), though they never banned trafficking. The Taliban ban, by criminalizing part of the opium economy, made the narcotics economy far more profitable –prices rose ten-fold. Though prices have declined since then, they have never returned to the competitive levels of the period when the entire drug economy was de facto legal inside Afghanistan.

The current government, however, is committed to (in the words of the preamble to the Constitution of 2004/1382) “restoring Afghanistan to its rightful place in the international community.” Hence, unlike the Taliban Emirate, the government cannot tax, regulate, or settle disputes arising from the main economic activity in the country. Instead the constitution provides:
The state shall prevent all types of terrorist activities, the production and consumption of intoxicants (musakkirat), and the production and smuggling of narcotics.

While I cannot prove it with survey data, my informal observations lead me to conclude that the social consensus in Afghanistan is that poppy cultivation and drug trafficking are wrong, but that they are inevitable and excusable (at least cultivation and small trading are) until economic alternatives develop. (I will discuss the view of the ulama in a subsequent post on interdiction and law enforcement.)

Narco-economy: the tax base for insecurity

The participants in the narcotics economy must govern this economic sector (about a third of the economy, at least half of the cash economy) through activities that are “illegal,” but that are hidden mainly from foreigners rather than other Afghans. The Afghan police and administration, political leaders, and the anti-government insurgents all offer protection services to poppy growers and drug traffickers. Competition for this lucrative role motivates much of the violence in the country. The U.S. Strategy probably overstates the relative importance of the Taliban and al-Qaida in protecting the trade and understates the degree to which the narco-economy is controlled by officials and political leaders in the Afghan government. Portraying the drug economy as primarily supporting terrorism, however, does make militaristic approaches to it seem more acceptable.

Hence the narcotics economy corrupts and weakens the government, undermines stable economic development, and funds terrorism and insurgency. It also promotes dishonesty between Afghans and foreign officials, since the former cannot tell the latter what they really think. Political insurgents, whether national or transnational, predatory officials, and illegal businessmen have a common interest in preventing consolidation of the government or rule of law. The rents from illegality provide them with the resources to undermine security, though, like the Taliban, they also use these resources to provide the local security that the drug economy needs. From the point of view of Afghan poppy cultivators, eradicators provide insecurity, and leaders (whether in the government or Taliban) who can keep eradicators out provide security. Hence poorly designed and implemented counter-narcotics policies drive many disparate forces together, though most are not ideologically committed to transnational terrorism.

On pages 13-14, the US Strategy (“Defining the Problem”) correctly diagnoses the problem as “drug money,” which “weakens key institutions and strengthens the Taliban.” But this diagnosis has consequences that the Strategy does not draw. A strategy to lessen the flow of drug money into corruption and insurgency is not identical to a strategy to reduce the quantity of addictive substances produced and exported. Once the US Strategy accurately diagnoses the problem as “drug money,” it then reverts to a nearly exclusive focus on drugs themselves, and not even on heroin, which produces much more drug money, but on poppy cultivation, which accounts for at most 20 percent of the drug economy in Afghanistan but has become the photogenic Paris Hilton of Afghan narcotics policy. This analytical flaw is the root cause of most of what I believe is wrong with this strategy.

The focus on flowers rather than drug money has led to a false comparison between northern and southern Afghanistan. U.S. officials now imply that political elites in northern Afghanistan are engaging in successful counter-narcotics, while the southern drug economy expands. This depiction has obvious ethnic implications, to the point that one government (not the U.S.) asked me to comment on whether different ethnic groups have different cultural attitudes toward opium.
The basis for these generalizations is that poppy cultivation spread into Afghanistan mainly through the Pashtun areas and that in the last year poppy cultivation has decreased in the mainly northern provinces (see the UNODC Rapid Assessment Survey map). The main reason that the drug economy expanded the most in the Pashtun areas is that traffickers shifted the cultivation to Afghanistan from Pakistan when Islamabad started to suppress it in the 1980s, and the government collapsed in Afghanistan. As a trans-border people, Pashtuns are well-organized for smuggling, whether of opium, weapons, or spare parts for trucks.

But most importantly, the map shows only the flowers. The U.S. Strategy nowhere claims, discusses, or even mentions whether “drug money” has decreased in northern Afghanistan. It has not. Balkh may be poppy-free, but its center, Mazar-i Sharif, is awash in drug money. The commanders who control Northern Afghanistan today are playing the same shell game that the Taliban did in 2000-2001. Some have suppressed cultivation (in Ghor and Bamiyan cultivation is hardly worthwhile anyway, the yields are so poor) but none have moved against trafficking. Most of them continue to profit from it, if only through what in the U.S. we would call "political contributions."

Some of the same officials who today get credit for counter-narcotics efforts are generally believed to have become millionaires directly or indirectly from drug trafficking. Recently the nephew and right-hand man of the chief of the border police in a province colored a hopeful green in the map above was caught driving a car full of heroin north through Kabul. Why? Because there is still plenty of trafficking going through the North, and trafficking, not cultivation, is where the money is. An Afghan friend (and official of the Afghan government) told me that when he was in Bamyan recently, the north-south road by the lake at Band-i Amir was crowded like a highway with trucks taking the opium and heroin of Helmand northwards. (This is the same road that the mujahidin used to transport arms from Pakistan to northern Afghanistan in the 1980s.) The same traffic goes through Ghor, to the west. The arms traffic goes in the other direction, as northern commanders sell their Iranian weapons to dealers who re-sell them to the Taliban.

The commanders have learned that we pay no attention to the money but only to bright colored flowers. And what both government officials and politically connected people tell me is, the pressure for photogenic progress comes from Congress. Every year it wants easily depicted metrics, and flowers provide it. Perhaps someone from the legislative branch would like to comment on this.

In the next installment, we will look beyond the flowers to analyze the implications of the neglected opiate value chain for counter-narcotics policy. Read more on this article...