Wednesday, May 03, 2006

Crony capitalism: Afghan edition

We've heard much more about the corruption and missing funds and various and sundry corporate misdeeds in Iraq. But Afghanistan has also provided opportunities for Bush-Cheney crony capitalism, too.

From The Enron-isation of Afghanistan? by William Fisher Inter Press Service 05/03/06:

"Contractors in Afghanistan are making big money for bad work" -- that is the conclusion reached in a new report from CorpWatch written by an Afghan-American journalist who returned to her native country to examine the progress of reconstruction.

"The [George W.] Bush administration touts the reconstruction effort in Afghanistan as a success story," the report says, but claims that reconstruction has been "bungled" by "many of the same politically connected corporations which are doing similar work in Iraq", receiving "massive open-ended contracts" without competitive bidding or with limited competition.

"These companies are pocketing millions, and leaving behind a people increasingly frustrated and angry with the results," the report says. Foreign contractors "make as much as 1,000 dollars a day, while the Afghans they employ make 5 dollars per day," the report charges.
Also, the war on drugs in Afghanistan isn't going so well, either. Wow, imagine that.

It's hard to say whether even the money spent for good PR is producing the desired effects.


Fisher writes:

The report says the U.S. hired a number of public relations companies to put a positive face on the reconstruction effort. One of them is the Washington-based Rendon Group, which the report says has "close ties to the Bush administration". The Pentagon has awarded Rendon more than 56 million dollars in contracts since Sep. 11, 2001, "as part of a coordinated effort to disseminate positive press about America and its military in the developing world".

The contracts call for "tracking foreign reporters" and "pushing (and sometimes paying) news outlets worldwide to run articles and segments favourable to United States interests."

The report says Rendon was also granted a contract in 2004 to train staff at President Hamid Karzai's office in the art of public relations, and "later received another hefty grant of 3.9 million dollars from the Pentagon to develop a counter-narcotics campaign with the Afghan interior ministry -- despite objections from Karzai and the State Department."

The report charges that the contracting system used by international donors is broken. It says, "USAID gives contracts to American companies (and the World Bank and IMF give contracts to companies from their donor countries) who take huge chunks off the top and hire layers and layers of subcontractors who take their cuts, leaving only enough for sub-par construction."


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