In Afghanistan, Businesses Plan Their Own Exits

In this environment, troubling indicators are not hard to find. More than 30,400 Afghans applied for asylum in industrialized nations in 2011, the highest level in 10 years and four times the number seeking asylum in 2005, according to provisional figures from the United Nations. Meanwhile, the number of displaced Afghans outside the country seeking to come the other way slowed to 68,000 last year, down from 110,000 in 2010 and a big decrease from the 1.8 million Afghans who repatriated in 2002, the year after the Taliban were driven out of power.

The only Western bank operating here said on Wednesday that it would be leaving. Piles of cash equaling about a quarter of Afghanistan’s annual economic output were physically carried out of Afghanistan last year. Fewer foreign companies are seeking to do business here, and those already here are downsizing and putting off new investments. And there are businessmen like Mr. Manani who already have a foot out the door, working actively toward a Plan B for life and business outside Afghanistan.

Senior Afghan officials are acutely aware of it, and are alternately worried and angry. “Sometimes I hear that some businessmen are fleeing and moving their businesses to outside Afghanistan,” President Hamid Karzai said at a news conference this month. “Curses be upon such businessmen that made tons of money here and now that the Americans are leaving they flee. They can leave right now. We don’t need them.”

Given the importance of trying to bolster economic independence in the overall plan for Afghanistan, the skittish responses and decreasing investment and hiring strike right at hopes that this impoverished nation, still barely on the cusp of modernity, can thrive on its own.
http://www.nytimes.com/2012/03/31/world/asia/businesses-may-flee-afghanistan-after-troop-withdrawal.html

A real problem with the exit strategy is that the government of Afghanistan cannot raise the money to pay for the Western-style army and police forces that are being developed. There is simply not an economic base in Afghanistan that is large enough to pay for it.