
Nowhere, perhaps, are the frailty of life and the mortality of human beings more evident than in Afghanistan. The suicide bomb attack on the Indian embassy may have been a first for an Indian mission abroad but is a common occurrence for ordinary Afghans. The country has a life expectancy of 43.8, amongst the ten lowest in the world 8212; a function of inadequate healthcare as well as the likelihood of being killed by an act of irrational violence. There is little doubt that Afghanistan is a mess.
Afghanistan8217;s vital economic statistics are among the worst in the world. Apart from low life expectancy, the country of 30 million people has a per capita GDP of only 800, measured in purchasing power parity terms. More than three in four Afghans live on less than two dollars a day, with limited access to education, healthcare, sanitation and drinking water. Perhaps the only silver lining is the widespread coverage of mobile telephony, which helps people stay connected across what is some of the most formidable and difficult terrain in the world. The lack of road, rail and air infrastructure doesn8217;t help connectivity at all.
Some of Afghanistan8217;s economic problems are particular to its geography. Being a land-locked country is an important natural barrier to trade. The hostile mountainous terrain makes overland trade difficult as well. The few roads that too exist simply advance a flourishing trade in drugs and facilitate the infiltration of fighters from abroad, neither of which contributes positively to the economy in the long run. That said, the extensive trade in heroin, illegal though it is, is a major source of livelihood for poor farmers growing poppy. In the absence of the technology seeds, fertilisers, soil and incentives for growing other crops, poppy offers many farmers a lifeline. It is no surprise then that coalition forces trying to wipe out poppy fields run into fierce local resistance.
A strong economy requires markets that function well and a state that complements and facilitates them. In Afghanistan, the only market that works is the illegal market for drugs. And economic actors especially farmers, for better or for worse, respond rationally to it. Most other markets are non-functional 8212; the presence of law and order as Adam Smith pointed out some two hundred years ago, is a necessary condition for functioning markets. The government in Afghanistan has failed to secure the country 8212; even in Kabul the situation seems dire. It is no surprise then that there is very little by the way of either private domestic investment or private foreign investment in the country. Afghanistan8217;s anaemic economy survives on remittances, aid and some small entrepreneurs, mostly retailers and traders.
Ironically enough, in an era dominated by globalisation and free markets, the near future of the Afghan economy depends completely on the state 8212; not the Afghan state, which is in a state of near paralysis, but foreign states. They remain the only actors capable of making a difference to the economy and lives of ordinary Afghans. It is the only way to retain, and enhance, the legitimacy of the flailing Hamid Karzai regime, which is fast losing territory and the support of the people to the regressive Taliban.
India has a big role to play in the economic development of Afghanistan and it must not be cowed by this attack on its mission. India is the fifth largest donor to Afghanistan 8212; around 750 million is earmarked for this purpose. The Indian government in partnership with private contractors is building roads, power transmission lines, schools and hospitals for ordinary Afghans. This must continue unabated as these works form the bedrock of a future Afghan economy. India could also assist in the development of productive agricultural technologies, the only way to wean farmers off poppy.
While proceeding with its reconstruction efforts, India carries less baggage than the US and UK as it doesn8217;t have a direct military presence in Afghanistan. This gives India greater legitimacy and goodwill among ordinary Afghans. It is also an opportunity to rebuild close ties with a people who distrusted India8217;s intentions after the support India lent to the Soviet invasion in 1979, and the brutal communist regime which followed. Terrorism should surely not have the final or indeed any say in a growing and fruitful relationship between the people of Afghanistan and India.
dhiraj.nayyarexpressindia.com