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GSA 2017 ANNUAL MEETING & EXPOSITION

LUNCHTIME ENLIGHTENMENT

SEATTLE

2017 MICHEL T. HALBOUTY DISTINGUISHED LECTURER

John (Jack) Shroder, Senior Research Scholar, Center for Afghanistan Studies, University of

Nebraska–Omaha

Afghanistan Resources: Rapacious Extraction, Ruined
Environments, and Chaos Continuation?

Tuesday, 24 Oct., 12:15–1:15 p.m.

The rich minerals, hydrocarbons, and waters of Afghanistan have been known for more than half a
century, yet some have only belatedly realized that trillions of resource dollars might enable hard-pressed
Afghanistan to rebuild the war-destroyed infrastructure. This could enable withdrawal of the foreign mil-
itaries, a strong desire of those who struggle greatly against the Taliban and ISIS insurgencies. Other crit-
ics think Western powers and multinational companies are in this Longest War not to help Afghanistan
recover normalcy but rather to exploit the beleaguered country and run off with cheap resources. The
reality is that a corrupt and kleptocratic governmental elite of only marginal technical capability has been
incapable of providing transparency in the mineral tender processes or adequate licensing and royalty
production for the extractive industries. Pressure from the International Monetary Fund and others to
open up the mining in haste, without sound vision, a proper legal framework, or well-functioning man-
agement institutions, has greatly limited any success. Simultaneously, armed mining oligarchies have dug
in to extract profits in league with the insurgencies to use minerals as revenue generators. Wise ideas and
plans for transparent mineral extraction and development of resource corridors have run aground on
bureaucratic incompetence and lethargy. In the “Wild-West” mining environment of Afghanistan, ram-
pant excitement over get-rich-quick schemes has drawn in companies with variable
foreign-government support, as well as Afghan insiders looking to make quick profits. China and India
are expected to benefit most, along with a host of the new mining oligarchs and insurgents, but not the
legitimate government of the country unless suggested strong changes are successful. A second wind for
the mining sector has been promoted recently, however, by a revolving door of ministers of mines to get
the Ministry of Mines and Petroleum correctly focused, coupled with the possible moderate success of
the new Afghanistan Extractive Industries Transparency Initiative. It remains to be seen whether or not
the resources can be extracted with minimal environmental damage to help the local people, or if they
should be left untouched to keep the profits away from the mineral mafias.

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