What Cripples Afghanistan’s Economy?
A world bank report came out yesterday that says depending on security the economy of Afghanistan could face a complete collapse beyond 2014. More than 90 per cent of our national budget comes from foreign donations. The world bank report in PDF: Transition in Afghanistan: Looking Beyond 2014. Income per person in Afghanistan is $528 a year. Josie Bassinette, the acting director of the World Bank says this figure conceals pockets of worse poverty because aid money is not divided evenly across the country. A lot of money goes into unstable areas and bypassing the more peaceful ones. That means a huge amount of that aid money goes into security. About 10 per cent of the total budget of the country comes from import export tax, etc.
What happens to our revenue?
I know someone who works in Nangarhar customs office. He turned down a very good job offer from an international business company in Kabul to come and work in the customs office. The company offered him $3000 US dollars of salary per month and some other incentives. The customs officer makes $1600 everyday. The way he takes bribe is very modern. He uses his bank to transfer money so that he doesn’t get caught. There is tax on the goods that are imported into Afghanistan. For example, if a businessman imports 200 trucks of Chinese televisions and each truck contains 300, the customs officer will tax him for 150 televisions per truck and then ask him to pay the tax for 100 televisions per truck directly to him (meaning transfer it to his bank account) and the businessman gets 50 televisions (per truck) into the country with no tax.
There is a price list that has prices of the different government positions. For one to get a customs office director’s position, especially in a frontier province like Nangarhar where there is a lot of import and some export, they usually pay multiple hundred thousand dollars in the ministry of commerce (sometimes there is bidding on this and whoever offers the highest bribe gets the position).
A while ago, the ministry of commerce hired and made special customs offices control committees. These committees are based in all those border provinces that make big transit ways. Their task is to monitor and report on corruption in these provincial offices. They are well-equipped and well-paid so that they will be honest in their job. The special corruption monitoring committees, at least in Nangarhar and Herat provinces, when saw the “tempting” money, teamed with the customs officers and they made a deal and started getting their cut. Before, tax for 150 televisions of each 300-television-truck was going to the middle men and the rest of the 150 was going to the government. These officers don’t want their original income to cut back. Instead, they tax even less goods per truck so that they can get the monitoring committees’ cut (maybe the tax from 100 items in each 300-item-truck goes the government, 100 to the customs officers, 50 to the committee, and the rest of the 50 items will is “waived” for the businessman). In all these customs offices are advanced computer-operated scanners that scan imported good for tax, etc. but again all of this is run by a human being who makes the final decision.
About a year ago, there was a training seminar abroad that the ministry wanted its employees from these key customs offices to go and attend so that they can learn advanced methods. Nobody wanted to go because depending on their position that meant $1600 loss everyday. When it’s the end of month, most of these officers don’t even go to the bank to get their official salary from the government (which is usually a few hundred dollars).
A job in the customs office is a big deal in our country. It’s the same as working in any other ministry of the government but people here say they have a lot of “Aayid” meaning “indirect income”. These people with a lot of Aayid usually have a very miserable life. Their kids cannot go out or play freely. They have a constant fear that their kids would be kidnapped. These kidnappers have marked them and are ready for any window of opportunity to attack.