Psst, No One Will Believe This — Afghanistan Has a Booming Economy

From Ann Marlowe in a subscription-only Wall Street Journal op-ed:

KABUL — The recent spate of violence shouldn’t be allowed to detract from the real story here: Afghanistan’s booming economy. Frightened by exaggerated scare stories, American and other Western companies are missing out on lucrative investment opportunities grasped by ostensibly less sophisticated Afghan and regional players.

There’s no shortage of profit to be made in an economy that grew 14% in the 12 months to March 21, and is expected to expand by a similar amount in the current financial year. In Kabul alone the number of cars and taxis has increased by one-third since last year to 400,000, up from fewer than 1,000 under the Taliban. Large sections of the city boast three- and four-storey buildings where mud brick houses stood only a few years ago, and twin 17- and 20-storey towers are currently under construction in Herat.

Telecom was one of the first big success stories. U.S. companies stood by as Afghanistan’s first four mobile-phone licenses were auctioned off, starting in January 2003. The Afghan-American and regional investors who got licenses have profited as the number of private mobile-phone users rocketed from zero to 1.5 million over the last five years.

Now finance and banking is taking off — and, once again, Western companies are missing out.

….. Local and regional businessmen have been quick to see the huge opportunities presented by Afghanistan’s booming economy. Kabul Bank, Azizi Bank and AIB all have Afghan or Afghan-diaspora ownership. Others should take their cue from these insiders. If only American and other Western investors could see past the doomsayers, they too could play a part in the Afghan economic success story. It is this, together with decisive military responses to the insurgents and drug traffickers, that will ensure Afghanistan becomes a stable member of the community of nations.

Would it be fair to blame The 527 Media if Western companies lose out on the business opportunities in Afghanistan (just reading that phrase must seem bizarre to many)? To an extent, though the big banks and telecoms at least should know better than to believe everything they read from people who inexplicably seem to have a vested interest in the failure of the War on Terror.

But don’t worry. In a few years, if prosperity really does takes hold in Afghanistan, The 527 Media will show up to complain about income inequality, or affordable housing, or something else.