Mineral Revenue-Sharing as Peace Dividend: Incentivizing Stakeholders to Support Peace and Stability in Afghanistan

Journal of Political Risk, Vol. 9, No. 6, June 2021

By Priscilla A. Tacujan

Mineral Map of Afghanistan. Source: USGS

Various players have raised the prospect over the years of Afghanistan developing its mineral wealth as a means to stabilize the country, but nobody believes that it could achieve enough security to prevent attacks on infrastructure and mining operations.  However, it is possible that Afghanistan might be able to broker peace and reconciliation through a mineral revenue-sharing scheme[1] that directly distributes mining dividends and profits to the general population as well as extract concessions from the Taliban — an approach that has helped mitigate conflict in some other war-torn areas where revenue-sharing has been part of their peace accords.[2]  A trickle-down incentive structure could incentivize the Afghan people and militant groups to pursue peace and reconciliation if they become vested stakeholders and direct beneficiaries of their country’s natural resources.  While security conditions in Afghanistan’s extractive industries remain a challenge, a review of successful revenue-sharing practices in other countries suggests that a similar practice in Afghanistan may yield long-term gains.

Background: Afghan Minerals and Stakeholders

The Task Force for Business and Stability Operations (TFBSO), commissioned by the Department of Defense (DoD) to study Afghanistan’s extractive industry, has estimated that Afghanistan’s mineral and hydrocarbon deposits could be worth more than $1 trillion, with $908 billion in mineral resources and more than $200 billion in hydrocarbon deposits,[3] while the Afghan government has a more optimistic estimate, at $3 trillion.[4]  The U.S. Geological Survey has also indicated that Afghanistan may hold 60 million tons of copper, 2.2 billion tons of iron ore, 1.4 million tons of rare earth minerals such as lanthanum, cerium, and neodymium, and lodes of aluminum, gold, silver, zinc, mercury, and lithium deposits as large as those found in Bolivia, known for owning the world’s largest lithium reserves[5],[6]  Several assessments conducted by U.S. agencies and international organizations have concluded that these resources have the potential to contribute significantly to Afghanistan’s economy. Continue reading

Accounting for the Count: COVID and the Vote

Journal of Political Risk, Vol. 8, No. 11, November 2020

By S.C.M. Paine, U.S. Naval War College

President Donald J. Trump, joined by Vice President Mike Pence and members of the White House Coronavirus Task Force, announces a national emergency to further battle the Coronavirus outbreak, at a news conference Friday, March 13, 2020, in the Rose Garden of the White House. (Official White House Photo by Tia Dufour)

Republicans argue that the presidential vote numbers are so close that they should be reconfirmed. Yet the much reviled Hilary Clinton conceded with even closer margins and with less secure voting machines. These are the wrong numbers to track.

In contrast, the numbers are not close concerning American deaths on Donald Trump’s watch. He is scheduled to lose more Americans in a single calendar year than all American deaths in World War II. Very shortly we may be losing each day, the number of Americans we lost on 9/11. China is a threat, but it is not killing hundreds of thousands of Americans. Trump’s incompetence is.

As a China specialist, it was obvious that there was an ongoing epidemiological disaster in Wuhan by late December or early January, when we should have shut down all travel to and from China, called on our allies to do likewise, invoked emergency measures to produce protective gear, and educated Americans about the rationale for the restrictions to come. One would think that the U.S. consulate in Wuhan provided information at least a month earlier unless it was asleep at the switch. Imagine the difference if we had shut our borders in November and put the full-court press on virus containment. Hundreds of thousands of Americans might have survived 2020. Yet Bob Woodward has Trump on record minimizing the problem in April. Continue reading