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Puppets in Waiting - the wait is over . . . and out
WASHINGTON — With the end in sight for Hamid Karzai’s days in office as Afghanistan’s president, members of his family are trying to protect their status, weighing how to hold on to power while secretly fighting among themselves for control of the fortune they have amassed in the last decade.
One brother, Qayum Karzai, is mulling a run for the presidency when his brother steps down in 2014. Other brothers have been battling over the crown jewel in the family empire — the largest private residential development in Afghanistan. The conflict over the project, known as Aino Mena, has provoked accusations of theft and extortion, even reports of an assassination plot.
“It’s family,” Qayum Karzai said. “They get upset, and over time they get over it. I hope they get over it.”
One Karzai brother is also said to have imprisoned a longtime Karzai aide in an effort to make him disclose the whereabouts of money and assets that relatives suspect were hidden by Ahmed Wali Karzai, another of President Karzai’s brothers and the political boss of southern Afghanistan who was assassinated last year. He was often accused of benefiting from the Afghan opium trade and an array of corrupt deals, though he denied such claims.
The looming withdrawal of American and NATO troops by 2014 from the still unresolved war, along with President Karzai’s coming exit, is causing anxiety among the Afghan elite who have been among the war’s biggest beneficiaries, enriching themselves from American military contracts, insider business deals with foreign companies, government corruption and narcotics trafficking.
“If you are one of the Afghan oligarchs, where you put your money and where you live is an open question now,” Seth Jones, an analyst at the RAND Corporation, said. “That means you are thinking about moving your money and finding a backup option about where to live.”
The president’s family — many of whom are American citizens who returned to Afghanistan after an American-led coalition toppled the Taliban in 2001 and brought Mr. Karzai to power — are among those who have prospered the most, by the accounts of many Afghan businessmen and government insiders.
http://www.nytimes.com/2012/06/04/wo...ef=global-home
Oil Output Soars as Iraq Retools, Easing Shaky Markets
By TIM ARANGO and CLIFFORD KRAUSS
BAGHDAD — Despite sectarian bombings and political gridlock, Iraq’s crude oil production is soaring, providing a singular bright spot for the nation’s future and relief for global oil markets as the West tightens sanctions on Iranian exports.
The increased flow and vital port improvements have produced a 20 percent jump in exports this year to nearly 2.5 million barrels of oil a day, making Iraq one of the premier producers in OPEC for the first time in decades.
Energy analysts say that the Iraqi boom — coupled with increased production in Saudi Arabia and the near total recovery of Libya’s oil industry — should cushion oil markets from price spikes and give the international community additional leverage over Iran when new sanctions take effect in July.
“Iraq helps enormously,” said David L. Goldwyn, the former State Department coordinator for international energy affairs in the Obama administration. Even if Iraq increased its oil exports by only half of what it is projecting by next year, he said, “You would be replacing nearly half of the future Iranian supply potentially displaced by tighter sanctions.”
For Iraq, the resurgence of oil, which it is already pumping at rates seen only once — and briefly — since Saddam Hussein took power in 1979, is vital to its postwar success. Oil provides more than 95 percent of the government’s revenues, has enabled the building of roads and the expansion of social services, and has greatly strengthened the Shiite-led government’s hand in this ethnically divided country.
http://www.nytimes.com/2012/06/03/wo...g-markets.html
Countries rich in natural resources are infamous for rent-seeking activities. It’s far easier to get rich in these places by getting access to resources at favorable terms than by producing goods or services that benefit people and increase productivity. That’s why these economies have done so badly, in spite of their seeming wealth. (Joe Stiglitz)