What Is True/Slant?
275+ knowledgeable contributors.
Reporting and insight on news of the moment.
Follow them and join the news conversation.

Jun. 14 2010 - 10:37 am | 128 views | 0 recommendations | 2 comments

Afghanistan wins the $1 trillion Powerball jackpot

In the United States, winning the lottery is sold as a hugely positive, life changing experience. But the truth is a little more complicated; every life bettered by winning millions of dollars is countered by those lives shattered by the sudden influx of cash and attention. Often, lotto winners are so besieged by problems — greedy relatives, untrustworthy friends, bad business decisions — that they walk away from the experience battered and broke.

At the risk of over-extending the analogy, you can think of this discovery in similar terms:

WASHINGTON — The United States has discovered nearly $1 trillion in untapped mineral deposits in Afghanistan, far beyond any previously known reserves and enough to fundamentally alter the Afghan economy and perhaps the Afghan war itself, according to senior American government officials.

The previously unknown deposits — including huge veins of iron, copper, cobalt, gold and critical industrial metals like lithium — are so big and include so many minerals that are essential to modern industry that Afghanistan could eventually be transformed into one of the most important mining centers in the world, the United States officials believe.

It’s hard to understate the significance of this; $1 trillion dwarfs the Afghan economy by a factor of 62. This kind of wealth could transform Afghanistan for the better in ways that are a little hard to fathom. Unfortunately, that’s not terribly likely. More often than not, underdeveloped, unstable countries that stumble onto natural resources remain underdeveloped and unstable, but are left with more violence, more corruption, and more class stratification.

For lotto winners, part of the problem in winning comes from the sheer scale of the wealth. Winning tens of millions of dollars is nice, but when you’re accustomed to dealing with — and worrying about — $50 here and a $100 there, and when you have weak financial literacy skills (which is the case for many Americans), it’s virtually unmanageable. Likewise, it’s often the case that poor countries lack the infrastructure, experience or professional expertise necessary to manage the massive wealth that comes from oil reserves or mineral deposits. And without strong institutions, these countries are ripe for corruption, factionalism and violence.

I would love for this discovery to benefit Afghanistan, but my hunch is that it won’t, and will instead leave Afghan’s in worse shape than before. It doesn’t help either that there is a good chance that this will push the United States into an indefinite occupation of Afghanistan, lest China tries to take advantage of the country’s newfound mineral deposits. Given the likelihood that this will spawn more violence, more suffering and a longer occupation, I’m not sure that this is good news. But it’s still early, and precedent notwithstanding, there isn’t a ton of evidence to justify my pessimism. So we’ll see.


2 Total Comments
Post your comment »
  1. collapse expand

    “I would love for this discovery to benefit Afghanistan”

    Yep, and Afghanistan doesn’t have the mining equipment, construction equipment, international distribution channels, finance connections, etc. that the U.S. does so guess who gets it.

    I’ve gotta believe there’s some kind of split with China on this or we wouldn’t have announced to the world something so lucrative.

    So in a matter of months all of the bidding will start, compounds will be built, U.S. contracting local fire power to protect 3 shifts of mining workers …

    Yeah, this oughta be interesting but not for Afghanistan — which now has to knuckle under the free market drives for the next 40 years.

  2. collapse expand

    Mr. Bouie,

    This is just a political maneuver. If you read to the end of the story it says…

    “In 2004, American geologists, sent to Afghanistan as part of a broader reconstruction effort, stumbled across an intriguing series of old charts and data at the library of the Afghan Geological Survey in Kabul that hinted at major mineral deposits in the country. They soon learned that the data had been collected by Soviet mining experts during the Soviet occupation of Afghanistan in the 1980s, but cast aside when the Soviets withdrew in 1989.”

    In other words, this is old news. If the Soviets knew about this mineral wealth it in the 1980’s, then so did the CIA. All the USGS did was review old Soviet maps, six years ago! Why drag out the old story of the mineral wealth of Afghanistan now?

    There are those would like to extend the US mission in Afghanistan, “make the surge work” a it were. Gen. David H. Petraeus, who of course was just coincidentally quoted in the NYT story, wants more time in Kandahar are other Pushtun regions to defeat the Taliban. How convenient then that this “news” should come out now.

Log in for notification options
Comments RSS

Post Your Comment

You must be logged in to post a comment

Log in with your True/Slant account.

Previously logged in with Facebook?

Create an account to join True/Slant now.

Facebook users:
Create T/S account with Facebook

My T/S Activity Feed


    About Me

    I am a blogger and occasional freelance writer. Usually, you'll find me here, but I occasionally contribute to PostBourgie.com, as well as Spencer Ackerman's blog (when he's away). At my old Wordpress digs, I blogged about progressive politics, public policy, nerdy things and food, and here at True/Slant, I intend to do the same. I'm all about the social media, so feel free to follow me on Twitter: jbouie, or friend me on Facebook (though I might make you wait awhile). And if you'd rather avoid social media, you can always email me at jamelle DOT bouie AT gmail DOT com.

    See my profile »
    Followers: 37
    Contributor Since: February 2010
    Location:Charlottesville, Virginia