Progress and Pitfalls of “Peace-Building”

in Afghanistan continues...

However, a bulk of assistance to Afghanistan was invested in humanitarian assistance in the country rather than towards reconstruction. From 2003 the economic measures showed signs of progress. As new currency was launched in late 2002, the exchange rate has been largely stable and domestic and international confidence in the

new currency is increasing. Efforts to develop a modern banking sector

commenced in 2003; the central bank was granted autonomy and the

government approved a law allowing foreign banks in Afghanistan.

Reconstruction of the education system was also underway, women were

given equal employment rights as well as access to education.

However, while the formal economy is recovering, so too is the criminal economy.

Despite an introduction of a ban in January 2002 on poppy cultivation and processing, trafficking and abuse of opiates, the collapse of law and order in late 2001 has allowed Afghanistan to regain its place as the world’s largest supplier of opium. Even in September 2006,

the UN Office on Drugs and Crime (UNODC) warned of record levels

of opium production, along with an estimated increase of 59 percent in

the area under poppy cultivation, compared with their data in 2005. The

opium trade and associated violence and corruption, therefore posed a

serious threat to the Afghan economy.

The repatriation of refugee population is an integral part of economic

recovery and rehabilitation especially in the support of the impoverished

communities that absorb the bulk of the burden of refugee return. Their

challenge of resettlement derives from the sheer number of refugees and

displaced people to be supported. The repatriation of refugees need to be

connected to reintegration and long-term development activities.

To be continued...