Mismanagement of $104 Billion Aid in Afghanistan

Over the past 13 years Afghanistan has received the largest sum of international aid in its modern world history.

In a recent report, the U.S. Special Inspector General for Afghanistan Reconstruction (SIGAR) claimed that Afghanistan has received $104 billion in financial assistance in the past 13 years. This is the most the U.S. has spent on a nation-building project since the Marshall Plan, 1948—implemented to rebuild Western Europe after World War 2—had only cost an inflation-adjusted, $103 billion.

SIGAR stated that Afghanistan's economic condition remains fragile in spite of all the aid, raising questions about the aid system in the country.

Experts have said mismanagement is the main reason behind the alleged misappropriation of the funds.

"Afghanistan has lost major economic opportunities due to mismanagement," university professor Syed Jawad Hussaini said. "If the money was managed and used properly, Afghanistan would have already reached the same levels of stability and construction as the other countries in the region."

Moreover, the government's inadequacies as well as lack of transparency and accountability in the system have been criticized as factors playing into the mismanagement.

"The lack of harmony between the government and the international community, the lack of monitoring of the legislative body and the silence of the civil society and the public are the main factors that have led to embezzlement," commentator on economics Syed Massoud said.

Meanwhile, the report indicates that the aid to Afghanistan was not allocated to the establishment of security forces only—just as the case was with the Marshall Plan in Europe.

From the total amount of $104.1 billion in Afghanistan, 62 billion was allocated for structuring the army and the police forces and $7.6 billion was allocated to counter-narcotic initiatives. SIGAR asserted that despite the large sum of money distributed to combating narcotics, drug smuggling remains a big problem.

The pressure is now on the next government as the inability to combat corruption could potentially lead the country toward an economic recession. The next government will have to make up for the misconduct of international aids as it deals with a fragile economy and decrease of international aids.