The high expenditure on paying, protecting and accommodating Western aid officials in palatial style helps to explain why Afghanistan ranks 174th out of 178th on a UN ranking of countries' wealth. This is despite a vigorous international aid effort with the US alone spending $31bn since 2002 up to the end of last year.
(...) The high degree of wastage of aid money in Afghanistan has long been an open secret. In 2006, Jean Mazurelle, the then country director of the World Bank, calculated that between 35 per cent and 40 per cent of aid was "badly spent". "The wastage of aid is sky-high," he said. "There is real looting going on, mainly by private enterprises. It is a scandal."
(...) "I was in Badakhshan province in northern Afghanistan which has a population of 830,000, most of whom depend on farming," said Matt Waldman, the head of policy and advocacy for Oxfam in Kabul. "The entire budget of the local department of agriculture, irrigation and livestock, which is extremely important for farmers in Badakhshan, is just $40,000. This would be the pay of an expatriate consultant in Kabul for a few months."
(...) Mr Waldman, the author of several highly-detailed papers on the failures of aid in Afghanistan, says that a lot of money is put in at the top in Afghanistan but it is siphoned off before it reaches ordinary Afghans at he bottom. He agrees that the problems faced are horrendous in a country which was always poor and has been ruined by 30 years of war. Some 42 per cent of Afghanistan's 25 million inhabitants live on less than a dollar a day and life expectancy is only 45 years. Overall literacy rate is just 34 per cent and 18 per cent for women. But much of the aid money goes to foreign companies who then subcontract as many as five times with each subcontractor in turn looking for between 10 per cent and 20 per cent or more profit before any work is done on the project. The biggest donor in Afghanistan is the US, whose overseas aid department USAID channels nearly half of its aid budget for Afghanistan to five large US contractors.
(...) Another consequence of the use of foreign contractors is that construction has failed to make the impact on unemployment among young Afghans which is crucial if the Taliban is to be defeated. In southern provinces such as Farah, Helmand, Uruzgan and Zabul, up to 70 per cent of Taliban fighters are non-ideological unemployed young men given a gun before each attack and paid a pittance according to a report by the Institute for War and Peace Reporting. By using these part-time fighters as cannon-fodder, the Taliban can keep down casualties among its own veteran fighters while inflicting losses on government forces.
(...) The international aid programme is particularly important in Afghanistan because the government has few other sources of revenue. Donations from foreign governments make up 90 per cent of public expenditure. Aid is far more important than in Iraq, where the government has oil revenues. In Afghanistan a policeman's monthly salary is only $70, which is not enough to live on without taking bribes.
(...) 40 per cent: Share of international aid budget returned to aid countries in corporate profit and consultant salaries – more than $6bn since 2001.