Lost in Transition: Gold Mining and the Political Economy of Takhar, Afghanistan
December 2023
Research Paper 24
Marcena Hunter, Global Initiative Against Transnational Organized Crime (GI-TOC)
Alastair MacBeath, Global Initiative Against Transnational Organized Crime (GI-TOC)
PUBLICATION SUMMARY
Following the fall of Kabul in August 2021, the economy of Afghanistan has been severely weakened due to the withdrawal of foreign aid and the freezing of internationally held assets. This has led to a sharp increase in poverty within the country which has placed pressure on the new Taliban-led government to establish new sources of income. Although the Taliban has previously relied on illicit and informal economies, now that they have consolidated power, it is highly likely that they will seek to capitalise on Afghanistan’s vast mineral wealth and the growing global demand for energy-critical and green minerals.
This international demand offers opportunities for Afghanistan's economy but also presents considerable risks as foreign actors move to gain access to its mineral deposits to support their own economic development. Furthermore, competition for control of mineral wealth and associated revenue sources has led to tension and conflict between various stakeholders, including Taliban factions, local strongmen and businessmen. This has limited the ability of the Taliban-led government in Kabul to benefit from the extraction and sale of its natural resources.
This paper examines the emerging dynamics, risks and opportunities within Afghanistan from the perspective of the gold mining industry in the north-eastern province of Takhar. While Afghanistan has relatively small value deposits compared with other resources, insights into the evolution of political economies surrounding the gold sector, its role in the economy and foreign intervention, shed light on broader dynamics of the extractives industry in the country.