Great Moments in US Foreign Policy

The Great Game in Afghanistan: The US Is Losing Out

By Dilip Hiro, TomDispatch

Wednesday, 01 April 2015 00:00

Call it an irony, if you will, but as the Obama administration struggles to slow down or halt its scheduled withdrawal from Afghanistan, newly elected Afghan President Ashraf Ghani is performing a withdrawal operation of his own. He seems to be in the process of trying to sideline the country’s major patron of the last 13 years — and as happened in Iraq after the American invasion and occupation there, Chinese resource companies are again picking up the pieces.

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In the new foreign policy that Ghani recently outlined, the United States finds itself consigned to the third of the five circles of importance.  The first circle contains neighboring countries, including China with its common border with Afghanistan, and the second is restricted to the countries of the Islamic world.

In the new politics of Afghanistan under Ghani, as the chances for peace talks between his government and the unbeaten Taliban brighten, the Obama administration finds itself gradually but unmistakably being reduced to the status of bystander. Meanwhile, credit for those potential peace talks goes to the Chinese leadership, which has received a Taliban delegation in Beijing twice in recent months, and to Ghani, who has dulled the hostility of the rabidly anti-Indian Taliban by reversing the pro-India, anti-Pakistan policies of his predecessor, Hamid Karzai.

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As an official of the World Bank for 11 years, Ghani had dealt with the Chinese government frequently. This time, he left Beijing with a pledge of 2 billion yuan ($327 million) in economic aid for Afghanistan through 2017.

The upbeat statements of the two presidents need to be seen against the backdrop of the twenty-first-century Great Game in the region in which, after 13 years of American war, Chinese corporations are the ones setting records in signing up large investment deals. In 2007, the Metallurgical Corporation of China and Jiangxi Copper Corporation, a consortium, won a $4.4 billion contract to mine copper at Aynak, 24 miles southeast of Kabul. Four years later, China National Petroleum Corporation in a joint venture with a local company, Watan Oil & Gas, secured the right to develop three oil blocks in northwestern Afghanistan with a plan to invest $400 million.

In stark contrast, 70 U.S. companies had invested a mere $75 million by 2012, according to the Afghanistan Investment Support Agency. What Washington policymakers find galling is that China has not contributed a single yuan to pacify insurgency-ridden Afghanistan or participated in the U.S.-led International Security Assistance Force in that country, and yet its corporations continue to benefit from the security provided by the presence of American soldiers.

Former Blackwater gets rich as Afghan drug production hits record high

Spencer Ackerman, The Guardian

Tuesday 31 March 2015 17.13 BST

In a war full of failures, the US counternarcotics mission in Afghanistan stands out: opiate production has climbed steadily over recent years to reach record-high levels last year.

Yet there is a clear winner in the anti-drug effort – not the Afghan people, but the infamous mercenary company formerly known as Blackwater.

Statistics released on Tuesday reveal that the rebranded private security firm, known since 2011 as Academi, reaped over half a billion dollars from the futile Defense Department push to eradicate Afghan narcotics, some 32% of the $1.8bn in contracting money the Pentagon has devoted to the job since 2002.

The company is by far the biggest beneficiary of counternarcotics largesse in Afghanistan. Its closest competition, the defense giant Northrop Grumman, claimed $250m.

According to the US inspector general for Afghanistan “reconstruction”, the $569m Academi got from US taxpayers paid for “training, equipment, and logistical support” to Afghan forces conducting counternarcotics, such as “the Afghan National Interdiction Unit, the Ministry of Interior, and the Afghan Border Police”.

Far from eradicating the deep-rooted opiate trade, US counternarcotics efforts have proven useless, according to a series of recent official inquiries. Other aspects of the billions that the US has poured into Afghanistan over the last 13 years of war have even contributed to the opium boom.

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Academi and its former Blackwater incarnation have an infamous history in Afghanistan. It once set up shell companies to disguise its business practices, according to a Senate report, so that its contracts would be unimpeded by company employees’ killings of Iraqi and Afghan civilians.