Economics and Irregular Warfare
Economics is arguably the second most important line of operation in irregular warfare from the strategic to the tactical level. Economics is mentioned many times in JP3-24, FM3-24, FM3-07, etc. How many of our commanders from the theater level down to the company commander understand the dynamics of economics. Who decides what type of economy should be established (Free market economy, state controlled, mixed, etc)? Can the programs established at the tactical level be sustainable by the local or national government? How much capital do we invest? There is a litany of other questions to this topic.
I ask this because we know that the other cabinets within our government lack the resources to project substantial personnel outside our nation’s borders. Therefore, this responsibility has fallen onto the hands of the military and now PRTs. Do our CPTs through COLs understand the impact they are having at the municipal level? Do our division commanders understand the impact at the state/provincial level? How do we prepare them for this task?
Interested to hear your comments on this.....
Stabilization, maybe Development, but definitely not Economics
I'm the Brigade Economic Development Officer for Task Force Stryker in Southern Afghanistan and I've done Zero Economic Development. I was sent to the University of Washington by the Brigade Commander for 6 months to learn about how to start small businesses in preparation for deployment to Iraq.
We are here now in Afghanistan and I spend most of my time focused on stabilization, which isn't taught in any of our officer courses or NCOES.
The COIN Academy in Camp Julien just had their inaugural Stability course in early November.
Stabilization, Development and Economics are linear processes in my mind. If the area does not have persistent security and the population's grievances are not addressed, then don't even worry about Development or "Economics."
I hate when USAID from Kabul comes down and talks about GDP. What does GDP have to do with anything in a remote village in Southern Afghanistan where they think the Russians are back?
Assuming that we get good at stabilization and start looking at development- that is a dangerous road for the military to take because we do not have the program management skills necessary for big development. If you mean development in terms of building a small well then perhaps we do...but I'd argue that we cannot even really build a well then QA/QC it.
Also building wells are stupid because it lowers the water table but that's a diffferent story.
The only other uses that my training has helped with is making sure CERP and/or other projects do not cause inflation in the economy or a rise in commodity prices like gravel and other construction material.
Anyways- fiscal discipline on the part of the military isn't good enough as other instruments of national power have programs which have budgets that I get the feeling "have to be expended" by a certain time. Which is bad. And it's really bad if you concentrate in only two Provinces and spend $240+ Million in the next 10 months.
Applied Business School Concepts....
SWOT
VRINE
Balanced Scorecard
Peter Drucker
Harvard Business Review
Value Chain Analysis
From USAID: CASHMERE VALUE CHAIN ANALYSIS AFGHANISTAN
Quote:
The USAID-funded Accelerating Sustainable Agriculture Program (ASAP) is committed to create broad-based, market-led agriculture development with the aim to provide economic opportunities for rural Afghans. The cashmere value chain is one of the selected value chains on which ASAP will concentrate. This report provides an overview and analysis of the Cashmere Value Chain, linking the global context to the national context, with the aim of determining Afghanistan’s competitiveness and identifying main leverage points and key strategies to improve Afghanistan’s competitiveness and promote development in a pro-poor manner. It will provide the basis for ASAP’s interventions in the Cashmere Value Chain, and will lay the foundation for ASAP’s cooperation with other agencies active in the sector.
From Roots of Peace: Baseline Survey Report on Villages for Value Chain Business in Afghanistan
Quote:
Agricultural growth and development is deeply intertwined with economic progress. Afghan agriculture possesses the basis and resources for many value chain businesses like cultivation of potatoes, vegetables, oil crops, animal products, carpet weaving and other major crops (i.e. fruits, nuts, other horticultural products, spices, medicinal herbs, forestry, livestock and fisheries) that can be the basis for a large number of agro-based industries and commercial activities. Investment in electricity generation, small and medium scale dams and reservoirs, local roads, agro-training and extension activities, large scale introduction of modern practices in value chains, irrigation, research and development, agricultural and ecological education and training need to be introduced into the country.
Concerning the linearity of stabilization, development, economic.
I will try to come with a definition of those “ stages”. I will not come with manual definition but describe them in a “development” approach.
Stabilization: reinstallation of law and order by a military power coupled with humanitarian activities (post conflict type) to address basic survival population needs. The economy is disrupted and there is a low level of market organization. Political context is unstable and influx on economical capacities and choices of the population. Economical efforts are looking to recover pre conflict economical level.
Development: This may include economical recovery (But I would rather include that into stabilization stage). Basically it takes place in a stable security environment with or without political stability. Actions are targeting economical capacities of household to get organized and increase their incomes. This is looking to create the conditions for economical take off for communities. Rule of law is in place and markets are regulated.
Economy: this targets the market organization regulation. It would be the creation of a normative economical context allowing large investments and production distribution. This would be the stage during which juniors and then majors will invest and basically build production plants… Security and political contexts are stable and allow long term activities.
Those are raw definitions and you may disagree. Personally, I would go with a much detail canevas: life saving; recovery; post conflict:pre development; primary sector development and pre economical development; economical development.
To my understanding, Afghanistan (Depending the areas) is between recovery (with life saving activities) and post conflict activities. With some pockets of pre economical development in major cities.
What you may (and most probably experience) is the creation of pockets of take off rather than a homogeneous take off from all the villages or families in your area. (The basic principle of the drop oil theory).
Then comes the problematic of cotinuum and contiguum in “development activities”.
Continuum is what we all want. From humanitarian life saving stage, we introduce enough money to generate small savings at household level. The population and goods have free movements capacity. This creates small shops and a dynamic market exchange place. This generates enough immediate benefits for all the population so the populations rally the coalition. Then you have long term stability and foreign investors are coming…
Contiguum is what we experience: For a reason we do not know, all is fine in village A but nothing is going well in village B. While village A is becoming a centre and tracts and attracts all economical investments and attention, village B is still in basic survival stage and becomes a periphery. So you have a pocket of linear development and pockets of no progresses.
There village A is an economical centre and village B is an economical periphery. In a wonderful world, villagers from B, watching what is happening in A will double efforts to reach A level and the centre will tract the area to pass from stabilization to development.
In reality, what we experience most of the time is B becomes jealous. Villagers from B will put their efforts in restricting village A economical efforts. This may includes the use of violence. So village B becomes a violence centre and A a violence periphery. So you will have to put your efforts in maintaining A security level to secure its economical progress. And you will have to restrict B violence activities but double your economical efforts to make them progress. Watching that, A may be unhappy (At least…).
I would recommend reading Francois Gruenwald, but I do not know if he has been translated in English. His organization (group URD) is present in Afghanistan if I am not mistaking.
Concerning labor intensive cash for work:
It is a starting point but not the response to everything. You have to be able to stop it at one stage. Once population is creating small business then you have to stop and shift to other activities that will support households’ capacities to generate regular and sustainable incomes.
Cash for work is your first step to enter the community. It is just a tool. Second step may be production transport or transformation…
I support cash for work, used it a lot to stabilize small unsecured areas in many contexts. I also would warn about the side effects of it. The main one being seen only as a cash for work provider and then being unable to do other activities. The day you stop cash for work, the population may decide to no more support you as you are no more providing easy money.
Hope this respond to your questions. Do not hesitate if you feel some dark areas in my explanations.