China's rising influence in Afghanistan -- and elsewhere in Central Asia

The world is changing faster than we can keep track of it. This article on China's investment in Afghanistan is one small indication of the shift in power and influence. China -- whatever its methods -- is bearing down on Central Asia. Lots of resources there for a country whose needs will be huge as it grows into a world power with even greater influence. Ben Farmer of the Sydney Morning Herald gives us a glimpse of how things work in this region, and how they are likely to continue to work in the future. RLC


Afghan revenue to balloon as Chinese influence grows
BEN FARMER Sydney Morning Herald - Nov 23 5:21 AM

KABUL: China's growing influence in the Afghan economy has been hailed by the country's mining minister, who has revealed that projects acquired to feed Beijing's industrial base will triple government revenues within five years.

Muhammad Ibrahim Adel said foreign investment in the country's vast mineral deposits would bring $US2 billion ($2.18 billion) a year in taxes and royalties by 2013.

''Within five years I hope the Government will be getting $US2 billion a year from mining, not including the salaries people earn,'' he said.

Afghanistan has the potential to emerge as one of Central Asia's biggest sources of raw materials for manufacturers.

China paid $US800 million to acquire the Aynak copper deposit 48 kilometres south of Kabul two years ago and has emerged as the favourite from a pool of Indian and Saudi firms to gain control of an iron-ore deposit at Hajigak, 100 kilometres west of Kabul, when tenders are considered next year.

Both deposits rank among the world's largest and entail the construction of roads, processing plants and railways in deprived areas that are dominated by the Taliban.

But the burgeoning role of the Chinese in Afghanistan has provoked a backlash, with allegations of corruption emanating from US officials.

A new FBI-style major crimes unit, set up with British and US police involvement, is reported to have gathered enough evidence to issue arrest warrants against Mr Adel and another member of the cabinet, Sediq Chakari, who is the Minister of Haj and Islamic affairs. A new FBI-style major crimes unit, set up with British and US police involvement, is reported to have gathered enough evidence to issue arrest warrants against Mr Adel and another member of the cabinet, Sediq Chakari, who is the Minister of Haj and Islamic affairs.

Last week The Washington Post quoted a US official who alleged Mr Adel had accepted a $US30 million bribe from the Chinese bidders for Aynak. Mr Adel rejected the accusations.

''I am responsible for the revenue and benefit of our people. All the time I'm following the law and the legislation for the benefit of the people.''

The Chinese firm developing Aynak plans to employ 20,000 Afghan workers at the site and has the reassurance of a massive police presence, backed by security assistance from US special forces.

The facility is also barricaded by sandbags, and a wall of iron shipping containers surrounds the perimeter.

Afghanistan recorded government revenues of $US800 million last year. The World Bank concluded that mining revenues are the best hope of building a recurring income stream for the war-torn economy, which has been blighted by corruption and weak government.

International donors have been left with a bill, which is rising sharply, to prop up the state. The tab includes billions of dollars to train and equip a police force and an army seen as critical to defeating the Taliban.