Columbia International Affairs Online: Policy Briefs

CIAO DATE: 01/2013

Political Economy and Conflict Dimensions of Afghanistan's Mineral Resources: A Preliminary Exploration

William Byrd

December 2012

United States Institute of Peace

Abstract

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.