Monday, September 13, 2021

The War in Afghanistan was a gigantic corruption pump funded by US taxpayers

Farah Stockman, "What Failure? For Some, the War in Afghanistan Was a Big Success", NYTimes, Sept 13, 2021.

Instead of a nation, what we really built were more than 500 military bases — and the personal fortunes of the people who supplied them. That had always been the deal. In April 2002, Defense Secretary Donald Rumsfeld dictated a top-secret memo ordering aides to come up with “a plan for how we are going to deal with each of these warlords — who is going to get money from whom, on what basis, in exchange for what, what is the quid pro quo, etc.,” according to The Washington Post.

The war proved enormously lucrative for many Americans and Europeans, too. One 2008 study estimated that some 40 percent of the money allocated to Afghanistan actually went back to donor countries in corporate profits and consultant salaries. Only about 12 percent of U.S. reconstruction assistance given to Afghanistan between 2002 and 2021 actually went to the Afghan government. Much of the rest went to companies like the Louis Berger Group, a New Jersey-based construction firm that got a $1.4 billion contract to build schools, clinics and roads. Even after it got caught bribing officials and systematically overbilling taxpayers, the contracts kept coming.

“It’s a bugbear of mine that Afghan corruption is so frequently cited as an explanation (as well as an excuse) for Western failure in Afghanistan,” Jonathan Goodhand, a professor in Conflict and Development Studies at SOAS University of London, wrote me in an email. Americans “point the finger at Afghans, whilst ignoring their role in both fueling and benefiting from the patronage pump.” [...]

What stands out about the war in Afghanistan is the way that it became the Afghan economy. At least Iraq had oil. In Afghanistan, the war dwarfed every other economic activity, apart from the opium trade.

Over two decades, the U.S. government spent $145 billion on reconstruction and aid, and an additional $837 billion on war fighting, in a country where the G.D.P. hovered between $4 billion and $20 billion per year. [...]

“The money spent was far more than Afghanistan could absorb,” concluded the special inspector general of Afghanistan’s final report. “The basic assumption was that corruption was created by individual Afghans and that donor interventions were the solution. It would take years for the United States to realize that it was fueling corruption with its excessive spending and lack of oversight.”

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