Wartime Contracting Report Provides More Evidence to Exit Afghanistan
Over the past decade, American taxpayers have lost as much as $60 billion dollars to massive fraud and waste in the nation building campaigns of Iraq and Afghanistan, according to a report released today by the Commission on Wartime Contracting. The independent panel confirms much of what we already know about rent-seeking in wartime; nevertheless, the panel details specific reconstruction projects and programs that display a stunning array of mismanagement:
- A modest $60 million agricultural development program in northern Afghanistan expanded to the south and east to the tune of $360 million. The cash-for-work program was intended to distribute vouchers for wheat-seed and fertilizer in drought-stricken areas. Today, the program spends $1 million a day. The panel reports, “The pressure to quickly spend the millions of dollars created an environment in which waste was rampant. Paying villagers for what they used to do voluntarily destroyed local initiatives and diverted project goods into Pakistan for resale.”
- During operations in Iraq and Afghanistan, waste and fraud averaged about “$12 million every day for the past 10 years.” [Emphasis in original];
- The Department of Defense (DoD) awarded an $82 million contract for the design and construction of an Afghan Defense University. Now, DoD officials say it will cost $40 million a year to operate—beyond the indigenous government’s ability to fund and sustain;
- The U.S. Agency for International Development, the U.S. Government’s main distributor of development contracts, funded the Khost-Gardez road project. Originally valued at $86 million it has since mushroomed to $176 million;
- The insurgents’ second-largest funding source is the U.S. taxpayer. Money for construction and transportation projects are diverted to the insurgency so Afghan subcontractors can pay them for protection. Of course, the insurgents use this money to buy bombs, IEDs, and other explosives to kill foreign troops and civilians.
The report goes on and on with examples that should disgust U.S. taxpayers. In addition, the report was released amid news that August 2011 was the deadliest month for U.S. service members, and 2011 shaping up to be the deadliest year for Afghan civilians. Despite the spin from warhawks, people in the region know the coalition has lost. Last year, the “Godfather of the Taliban,” Hamid Gul, the former head of Pakistan’s Inter-Services Intelligence agency, laid out in extensive detail why America has been defeated (for skeptics of withdrawal, it’s worth reading).
The United States has largely disrupted, dismantled, and defeated al Qaeda. America should not go beyond that objective by combating a regional insurgency or drifting into an open-ended occupation. We have endured enough with tens of thousands of people killed, injured, and traumatized, and billions of dollars wasted.
Senate Report Slams Nation-Building Efforts in Afghanistan
As confirmed by yet another U.S. government report, this one prepared by the Democratic majority staff of the Senate Foreign Relations Committee, America’s nation-building mission in Afghanistan has had little success in creating an economically viable and politically independent Afghan state.
The Washington Post’s Karen DeYoung writes:
The report also warns that the Afghan economy could slide into a depression with the inevitable decline of the foreign military and development spending that now provides 97 percent of the country’s gross domestic product. [Emphasis added]
U.S. leaders could look at that statistic and justify prolonging the mission. In fact, the report suggests, “Afghanistan could suffer a severe economic depression when foreign troops leave in 2014 unless the proper planning begins now.” Ironically, “proper planning” is the problem. The belief that outside planning can promote stability and growth has the potential to leave behind exactly the opposite.
While no one would deny that Afghanistan looks a lot better than it did in 2001, there’s a reason why American leaders might be sorely disappointed with the outcome when the coalition begins handing off responsibility to Afghans. As the bipartisan Commission on Wartime Contracting in Iraq and Afghanistan warned last week in a separate report, “the United States faces new waves of waste in Iraq and Afghanistan.” Without adequate planning to pay for ongoing operations and maintenance, U.S.-funded reconstruction projects in both countries will likely fall into disrepair.
The core problem is that top-down development strategies often deepen, rather than strengthen, a foreign country’s dependence on the international donor community. My colleague, development expert Ian Vasquez, once wrote, “Providing development assistance to such countries may improve the apparent performance of foreign aid, but it may also help to create dependence and delay further reform, problems that have long plagued official development assistance.” [Emphasis added]
Indeed, complaints about America’s presence in Afghanistan typically focus on troop levels; rarely discussed is the way in which foreign-led development schemes can deprive locals of the experience of planning projects, managing funds, and procuring goods: what they call in the industry, “building local capacity.” As my friend Joe Storm and I wrote a while back, “US-government contractors are mired in mismanagement and failure, perpetuating dependence at best. Even the Senate Foreign Relations Committee admits, “Donor practices of hiring Afghans at inflated salaries have drawn otherwise qualified civil servants away from the Afghan Government and created a culture of aid dependency.”
Dependence, of course, is only one of many problems. According to the report:
Foreign aid, when misspent, can fuel corruption, distort labor and goods markets, undermine the host government’s ability to exert control over resources, and contribute to insecurity.
Because development is plagued with inadequate oversight, many development contracts are dispersed independently of the quality of services provided. During a trip to Afghanistan some time ago, I heard story after story about development projects being abandoned before completion, American-built schools without teachers to staff them, and billions of dollars charged to American taxpayers for unfinished work that leave Afghans disillusioned. Naturally, turning our mission in Afghanistan into one of limitless scope and open-ended duration perpetuates this massive fraud and waste.
So, who’s at fault? Ourselves. Recall the December 5, 2001 Bonn Agreement, which proclaimed the international community’s determination to “end the tragic conflict in Afghanistan and promote national reconciliation, lasting peace, stability and respect for human rights in the country.” We’ve set the bar so incredibly high for a country that lacks the fundamental criteria intrinsic to the Westphalia model: (a) a legitimate host nation government (b) that possesses secure and internationally recognized borders, and (c) wields a monopoly on the use of force. None of these criteria exist. So far, we are 0-3: 0 wins, 3 losses.
With this latest report from members of Senate Foreign Relations Committee, we are reminded yet again not only of the importance of scaling down lofty expectations, but also recognizing the unintended consequences produced by the noblest of aims. Sadly, given the corruption and dependency we’ll leave in our wake, without an introspective self-critique of our policies, America could turn Afghanistan into Central Asia’s Haiti.
Iraq’s Future Is Up to Iraqis
The U.S. is not yet out of Iraq, but American forces have pulled back from Iraqi cities. Iraq’s future increasingly is in the hands of Iraqis. And most Iraqis appear to be celebrating.
This is no longer America’s war.
Iraqis danced in the streets and set off fireworks Monday in impromptu celebrations of a pivotal moment in their nation’s troubled history: Six years and three months after the March 2003 invasion, the United States on Tuesday is withdrawing its remaining combat troops from Iraq’s cities and turning over security to Iraqi police and soldiers.
While more than 130,000 U.S. troops remain in the country, patrols by heavily armed soldiers in hulking vehicles as of Wednesday will largely disappear from Baghdad, Mosul and Iraq’s other urban centers.
“The Army of the U.S. is out of my country,” said Ibrahim Algurabi, 34, a dual U.S.-Iraqi citizen now living in Arizona who attended a concert of celebration in Baghdad’s Zawra Park. “People are ready for this change. There are a lot of opportunities to rebuild our country, to forget the past and think about the future.”
On Monday, as the withdrawal deadline loomed, four U.S. troops were killed in the Iraqi capital, the military announced Tuesday. No details about the deaths were provided. Another soldier was killed Sunday in a separate attack.
The Bush administration never should have invaded Iraq. The costs have been high: more than 4,000 dead American military personnel. Tens of thousands more have been injured, many maimed for life. Hundreds more military contractors and coalition soldiers have died. And tens of thousands of Iraqis — certainly more than 100,000, though estimates above that diverge wildly.
The U.S. has squandered hundreds of billions of dollars and the ultimate cost is likely to run $2 trillion or more, as the government cares for seriously injured veterans for the rest of their lives. America’s fine fighting men and women have been stretched thin and America’s adversaries, most notably Iran, have been strengthened. Yet another cause has been added to the recruiting pitch of hateful extremists seeking to do Americans and others harm.
Nevertheless, let us hope that Iraqis take advantage of the opportunity they now enjoy. It will take enormous statesmanship and restraint to accommodate those of different faiths and ethnicities, forgive past crimes committed by Sunni and Shia forces, eschew violence for retaliation and revenge, resolve even bitter disagreements peacefully, and accept political defeat without resort to arms.
Other peoples who have suffered less have failed to surmount similar difficulties. But it is no one’s interest, and especially that of the Iraqis, to lapse back into sectarian conflict and political tyranny. Let us hope — and dare I suggest, pray? — that they prove up to the challenge.

