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Violence in Afghanistan has brought advantages to some combat groups. Conrad Schetter terms their activity as war enterprises.

The term 'economy of violence' focuses on a self-perpetuating system, in which violence itself emerges as a marketable good. From an economic point of view the immense number of combat groups which existed at least until the appearance of the Taliban in 1994 can be regarded as 'war enterprises' adapted to a 'market of violence'. Their main capital was their armaments and their main business was the maintenance of security for a certain territory and its inhabitants.

It has to be stressed that, through the emergence of these combat groups, the vocational training of an entire society changed drastically. Due to the devastation of agricultural resources, the inclination to be trained in agricultural or pastoral techniques declined. The ordinary Afghan adapted his labour to the shifting economic situation in Afghanistan. Membership in a combat unit was much more profitable and even more secure than a civil occupation, such as being a farmer, with the daily risk of stepping on a land mine and without adequate arms for self-defence.

Membership in a combat unit was not as precarious as it seems at first glance. The main tasks of these units were to collect taxes from the inhabitants in return for ensuring security and to take tolls from foreigners crossing their checkpoints. The militias were the largest and best-paying employers. The guarantee of security was the fundamental reason for the existence of these combat units. Thus, generation or maintenance of a feeling of general insecurity was the driving force which made the combat units indispensable. Lootings, raids and plundering of rival villages, as well as the occupation of third-party property, not only promised a material profit, but were also the main strategies in upholding a general feeling of insecurity. Impending danger underlined the necessity for the existence of combat units. As long as the inhabitants of an area were in fear of raids by neighbouring enemies, they would support the militia.

Only the Taliban, who emerged in 1994, managed to monopolize the 'economy of security'. In other words, one of the essential reasons for the emergence and the success of the Taliban was the initial lack of security, which particularly affected the traders. Ahmed Rashid [the author of Taliban] highlighted the alliance between the Taliban and the Pakhtoon trade networks. The traders expected high profits from the re-establishing of secure trade routes through Afghanistan. Previously the traders had to pay various combat units at dozens of checkpoints. Through the emergence of a transit trade, the Taliban received a profitable source of revenue.

The Taliban required these revenues to bribe and employ the previously independent combat units. Thus, the strategy of the Taliban was to absorb the combat units, who directly profited from the security business in the past, into their own ranks. The maintenance of the state of belligerency as well as the omnipresence of the Taliban guaranteed the sustained employment of these warriors. Nevertheless, due to several defeats of the Taliban with high casualties (e.g. in Mazar-i-Sharif in 1997 and in Shomali in 1999), being a soldier lost its attractiveness for many combatants, who increasingly preferred to accept a more secure occupation (e.g. in trade or opium cultivation) than to risk their lives on the frontline.

Cultivation of opium

Probably the most prominent branch of the Afghan war economy is the cultivation of opium. Already in the 1980s some combat units started to plant opium on a large scale in the Helmand valley. Combat units allied with the resistance parties (e.g. Harakat-i-Inqilab) as well as with the Afghan government were involved in this business. The cultivation of opium increased and spread steadily. In many places the agricultural land which was cleared of mines was immediately cultivated to grow opium. Although the profit of the opium business lies almost exclusively in its trade, as expounded in the contribution by Schulenburg, farmers gain a much more regular and higher profit from opium than from cultivating other crops. The war parties also gained from the opium cultivation by collecting a tax of 20 per cent on harvested opium from the dealers. In 1999, the peak of the Afghan opium production was reached: in that year 75 per cent of all global seizures of opiates were produced in Afghanistan.

Pressure from the UN resulted in a ban on the cultivation of opium which was imposed by the Taliban in 2000. According to a recent UNDCP report (http:www.undcp.org), the planting of opium almost came to a complete stop in 2001. It is difficult to comprehend why the Taliban decided to abolish the cultivation and production of opium. It is probably too early to give a satisfying answer

Trans-border trade

The collapse of the Soviet Union led to a new geopolitical interest of several countries in the Central Asian states, known as the New Great Game. In this context Afghanistan, situated on the southern rim of the Central Asian states, gained an enormous geo-economic importance. Under the rule of the Taliban south and west Afghanistan became the turnstile of smuggling between Pakistan, Dubai, Iran and Turkmenistan.

Based on the Afghan Transit Trade Agreement (ATTA) dating back to the 1950s, goods were permitted to be imported tax-free via Pakistan (Karachi) into landlocked Afghanistan. Already in the 1970s the ATTA was misused for smuggling: goods arriving in Afghanistan via Pakistan were smuggled back to the Federally Administered Tribal Areas (FATA) of Pakistan, where they were sold in open bazars. While this smuggling decreased in the period of the Soviet occupation, it emerged again with the advent of the Taliban, but this time on a larger scale and via several trade routes.

Christine Noelle-Karimi is visiting professor at the department of Iranian studies, University of Bamberg.

Conrad Schetter works for the Centre of Development Research, University of Bonn.

Reinhard Schlagintweit, a German career diplomat, is chairman of the German National Committee for Unicef.

This is a collection of papers presented by various experts at an international conference in Munich in June 2000. The authors analyze the historical, political and economic mechanisms that have led to the present lack of state structures in Afghanistan
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