CIAO DATE: 01/2013
December 2012
United States Institute of Peace
Afghanistan has sizable underground mineral resources, which have potential positive economic impacts but also possible downsides—the so-called “resource curse” often involving negative macroeconomic, developmental, fiscal, governance, political and conflict effects. The success of the broader political transition in coming years as well as regional geopolitical factors will have a major influence on prospects for Afghanistan’s underground resources. For “mega-resources” such as the Aynak copper and Hajigak iron deposits, the Afghan government has conducted credible tendering to ensure that contracts with foreign companies are on favorable terms for Afghanistan.
Resource link: Political Economy and Conflict Dimensions of Afghanistan's Mineral Resources: A Preliminary Exploration [PDF] - 309K