Financing for Development - Unlocking Investment Opportunities

1. Adnan Sabir Mirza
Educationist
With diverse exposure in administration and
project management.

2.  Afghanistan has been under war
since very long time due to its
internal conflicts and interests of
external forces trying invading it.
Nearly for half a century it
remains a subject of massive
killings. Developmental efforts
have almost been failed to
flourish. My intention behind
choosing this fragile country is to
propose a feasible sustainable
peace and developmental
growth.
What is the problem or issue that you are trying to
solve?

3.  Due to instability in Afghanistan, Pakistan has also suffered a lot inevitably. During the
Soviet invasion the influx of migrants flowed toward Pakistan. Even after half a century,
millions of Afghans are living in Pakistan openly or in hidings. Even a considerable number
of them have forged to make Pakistani IDs, pretending to be national. Hence, they are
unwilling to move back to their home land. They are causing collateral damages to the
national security of Pakistan and also using their soil to sell
and export narcotics and ammunitions. A peaceful and stable
Afghanistan is in the interest of Pakistan. Pakistan is trying
steadily to send back Afghan refugees slowly and gradually.
Undocumented refugees have been given ample opportunities
to formalize their statistics. [Ref. Newspapers & Press
references by the Interior Ministry of Pakistan].

4. What are the reasons that the government, official aid
provider or private sector would want to participate?
 Afghanistan has over 1400 mineral fields, containing
barite, chromite, coal, copper, gold, iron ore, lead, natural
gas, petroleum, precious and semi-precious, stones, salt,
sulfur, talc, zinc among many other minerals. Gemstones
include high-quality emerald, lapis lazuli, red garnet and
ruby. It is believed that among other things the country
holds $3 trillion in untapped mineral deposits. In
December 2013, President Karzai claimed the mineral
deposits are actually worth $30 trillion. (Ref. Wikipedia:
Mining in Afghanistan)

5. The United States Geological Survey (USGS) and the
British Geological Survey were doing resource
estimation work in the country. Prior to that work,
Afghanistan's exploration activity had been
conducted by geologists from the Soviet Union who
left good-quality geologic records that indicate
significant mineral potential. Resource development
would require improvements in the infrastructure
and security in Afghanistan. The government had
awarded contracts to develop the Aynak copper
project and the Hajigak iron ore project; in addition,
the government could offer tenders for new
exploration, including exploration of copper at
Balkhab, gold at Badakhshan, gemstones and lithium
at Nuristan, and oil and gas at Sheberghan.

6.  In 2015, the international community is due
to agree on a new set of comprehensive and
universal sustainable development goals (SDGs)
that bring together economic, social and environmental
priorities. These goals are ambitious, and they demand
equal ambition in using the “billions” in ODA and in available
development resources to attract, leverage, and mobilize
“trillions” in investments of all kinds: public and private, national
and global, in both capital and capacity.

7.  In April 2015, the Multilateral Development Banks (MDBs) and
the International Monetary Fund (IMF) presented a joint vision of
what we can do, within our respective institutional mandates, to
support and finance achievement of the SDGs. [Ref. Core Reading:
From Billions to Trillions: MDB Contributions to Financing for
Development]. So keeping in mind the available potential in the
Afghan mining field, billions can feasibly make into trillions.

8. What are the main obstacles currently standing in the way of unlocking financial
opportunities? How would your solution overcome them? Consider the country
context, if your proposal involves a specific country.
 Social & political structure of Afghanistan is not democratic or liberal rater it
is very rigid.
 Terrorism remains at the fore front by different extremist groups.
 Economic situation of the country have never been able to become self-
sustained and independent.
 Natural obstacles make it difficult to progress in the field of agricultural
being most of the country is rocky or sandy.
 Development policy had never been strong or strongly implemented due to
fluctuating environment.
 Late start and traditional way of life make it difficult for the country to come
in the international stream of development.

9.  As mentioned in “Improving the Investment Climate” by Ngozi
Okonjo-Iweala, “The investment climate for private business is
critically important, and of course, we have
quite a lot to do and a long way to go to
improve our situation and our rankings”.
So improvement in investment climate is
of utmost importance in Afghanistan.

10.  The massive killings across the board by the so called governments during
the past few decades and the fighting groups have created an overall hatred
environment. The human life has become very cheap commodity. Arms &
ammunition and drug trafficking have become the goals and ambitions for
majority of youth instead of going to schools and get higher education.
Educational institutions are not sufficient neither are
successful in attracting enrollments. Health sector
have never come up to cope the health care needs.
Majority of the women die during child birth.
15% of youth aging 15 to 49 years of age is suffering
from HIV.

11.  Agriculture and industrial sector are
unable to deliver due to unstable and
unsafe conditions. Even boys cannot
play cricket or football in some places
being the easy victim of extremist
groups. Infiltration of terrorist groups
across border between Pakistan and
Afghanistan allow brutality to happen
due to incomplete boundary wall
between the two countries.

12.  All out efforts are needed to come out from this
heinous and unwanted situation. In my humble
view following steps can help change the on
ground situation in Afghanistan:
 Incentivize the education system. Education
should be compulsory up to the higher
secondary level.
 Technical and vocational institutions should be established to prepare
technical work force.
 Industrial reforms to facilitate small & medium business entrepreneurs
are needed. Import of raw material for manufacturing should be
subsidized or made tax free. Easy terms for allowing exports.

13.  Peace and security and law & order must be
achieved through extra ordinary efforts.
Overall notion of anger and hatred against the
US and NATO forces can be diluted by
engaging the youth in constructive work. By
keeping the bull busy and patting them,
extremism can be alleviated. There should be
amnesty scheme for surrender in the form of
attractive returns. The natural resources of
Afghanistan can only bear fruits if they are
explored with consistency and without any
fear or foe. This can be beneficial for the
national economy of the country and for the
investing agencies to make “trillions out of
billions”.

14. So in short, if the
world is really
interested to put
Afghanistan on the
right track of
sustainable
development start
doing some
humanitarian help.
We cannot trade
roses for bullets.
The reply to a smile
is usually a smile.

15. Thank you