Title

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The Risk and Rewards in Afghanistan's Resources
Politico
Sens. Ben Cardin and Dick Lugar
Monday, June 21, 2010

The New York Times, in a front-page story last week, reported that $1 trillion worth of minerals was buried in the mountains of Afghanistan. Geologists, Afghan officials and mining companies stand ready to launch a modern-day gold rush.

Before everyone charges in, however, we need to recognize the risks and rewards inherent in these resources.

This story ran soon after major news outlets noted that the U.S. military wants to fight corruption in Afghanistan’s government as a key to winning the war.

In principle, these deposits mean resources for Afghanistan to build its economy as the “Saudi Arabia of lithium.” But expanding Afghanistan’s economy from the current $12 billion to potentially $1 trillion will be a boon only if these resources are managed properly.

Many other countries already have proved that resource revenue often leads to corruption and instability. For example, roughly 60 developing countries are rich in natural resources yet home to more than two-thirds of the world’s poorest people. Despite billions of dollars per year in oil, gas or mineral revenue, these countries rank among the worst when it comes to economic growth, authoritarian governance, poverty and political instability.

The Afghan reports should spur immediate action in Congress to ensure transparency in how U.S. and international companies tap these resources.

Transparency in the oil, gas and mining sectors has been endorsed for years by the G-8, the International Monetary Fund, the World Bank and regional development banks. It is clear to financial leaders that transparency is key to holding governments accountable for the needs of their citizens — and for greater energy security overall.

If citizens and international organizations know how much money a country is paid for oil access, it is harder for its leader to claim the government would happily build roads, schools and hospitals but cannot afford them.

Transparency will help those who want to follow the money to combat corruption, poverty and violence. In countries with rival ethnic groups, like Afghanistan, it also helps ensure that revenues are distributed equitably.

Afghanistan has made a good first step by joining the Extractive Industries Transparency Initiative, a voluntary international standard designed to promote transparency in the oil, gas and mining sectors. This group has made tremendous strides in changing the culture of secrecy that surrounds the extractive industries. But too many countries and companies remain outside this system.

It is time to create an international standard for transparency in law. Secrecy of extractive payments carries real risks for citizens — and investors.

We introduced the Energy Security Through Transparency Act to require most extractive industries — including oil, gas and mining companies — to disclose what they pay local governments for access to natural resources.

This simple step, adding information to filings already required by the Securities and Exchange Commission, could help promote civil society and combat corruption in countries both blessed and cursed with natural resources.

The extractive industries face unique material and reputational risks in the form of country-specific taxes and regulations. Challenges are compounded by the substantial capital companies need and the importance of natural resource access to the national security and strategic objectives of the United States and other major energy and mineral consumers.

Creating a reporting requirement with the SEC can capture a larger portion of the international extractive corporations than any other single mechanism — thereby setting a global standard for transparency and promoting a level playing field.

Our bill could help in following the money trail, making it harder to hide corruption and easier to bring the reforms needed to ensure that the blessing of natural resources does not turn into a curse.

Afghanistan is at a crossroads. If we want to leave Afghanistan with a viable economy and a stable government, we have to help the nation get this right.

Our bill could be the linchpin in a far larger U.S. and international effort, at all levels of government, to promote transparency and open the books in Afghanistan. The newfound resources would then lead to a new era of prosperity — and not be squandered through corruption.

Afghanistan’s future — and the success of U.S. and NATO men and women serving in Afghanistan — are at stake.

Sens. Ben Cardin (D-Md.) and Dick Lugar (R-Ind.) serve on the Senate Foreign Relations Committee.

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    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: “Combatting Corruption in Bosnia and Herzegovina” Wednesday, May 25, 2016 2:00 PM Capitol Visitor Center Senate Room 212-10 Live Webcast: www.youtube.com/HelsinkiCommission Twenty years ago, Bosnia and Herzegovina was beginning a process of recovery and reconciliation following the brutal conflict that marked its first four years of independent statehood and took outside intervention to bring to an end.  The United States, which led that effort culminating in the  Dayton Peace Accords, has since invested considerable financial and other resources to ensure the country’s unity, territorial integrity and sovereignty, as well as to enable a population devastated and traumatized by conflict to rebuild. Many European and other countries have as well. Today, beyond well-known ethnic divisions and weaknesses in political structure, Bosnia’s progress is stymied by official corruption to the detriment of its citizens’ quality of life and the prospects for the country’s integration into Europe.  Amid recent press reports on scandals involving various government officials, public perceptions of corruption rank Bosnia and Herzegovina among the worst in the Western Balkans.    The hearing will examine the current situation regarding corruption and its causes at all levels of government in Bosnia and Herzegovina, and look at efforts by the United States and the international community, along with civil society, to combat it.     The following witnesses are scheduled to testify: Jonathan Moore, Head of the OSCE Mission to Bosnia and Herzegovina Thomas Melia, Assistant Administrator for Europe and Eurasia, USAID Srdjan Blagovcanin, Chairman of the Board of Directors of Transparency International, Bosnia and Herzegovina Valery Perry, Sarajevo-based Independent Researcher and Consultant and Senior Associate at the Democratization Policy Council

  • Helsinki Commission Co-Chair Urges Secretary Kerry to Address Corruption in Bosnia

    WASHINGTON – In a letter to Secretary of State John Kerry, Helsinki Commission Co-Chairman Senator Roger Wicker urged the U.S. Administration to address the issue of worsening corruption in Bosnia and Herzegovina involving regulatory institutions and high-level political officials. “This kind of corruption is inhibiting Bosnia and Herzegovina's economy, stealing a more prosperous future from its citizens, paralyzing its progress toward European integration, and putting foreign investment at risk, including investment from the United States,” wrote Co-Chairman Wicker. The letter encourages the Obama Administration to devote additional resources to uncovering and documenting corrupt conduct in Bosnia and Herzegovina and to take concrete steps – such as the potential denial of U.S. visas and seizure of U.S. assets – to hold Bosnian officials accountable for engaging in corrupt activities. In November 2015, Co-Chairman Wicker and Commissioner Senator Jeanne Shaheen introduced legislation in the Senate that would establish an enterprise fund modeled after U.S. programs that supported Central and Eastern European economies after the fall of the Berlin Wall with approximately $10 billion in public and private funding. Specifically, the legislation would promote the private sector in Bosnia and Herzegovina by authorizing the fund to use up to $30 million over 15 years to bring American investors into the Bosnian and Herzegovinian economy. The full text of the letter is below. -------------------- February 2, 2016   The Honorable John Kerry Secretary of State Department of State Washington, DC  20520 Dear Secretary Kerry, As co-chairman of the Commission for Security and Cooperation in Europe, I write regarding the issue of corruption and the worsening investment climate in Bosnia and Herzegovina. I have been a longtime supporter of assistance to Bosnia and Herzegovina during my tenure in Congress.  Last year, my colleague Senator Shaheen and I introduced legislation that would establish an enterprise fund for providing assistance to private sector development and foreign investment in Bosnia and Herzegovina.  Twenty years after the Dayton Accords, I believe that Bosnia and Herzegovina's transition remains incomplete, and that the United States continues to have a strategic interest in ensuring a stable and prosperous Bosnia and Herzegovina. Unfortunately, I am concerned to learn of indications of worsening corruption in Bosnia and Herzegovina, including corruption in vital regulatory institutions and among high-level political officials.  I am troubled that responsible political authorities in Sarajevo tolerate the subversion of the rule of law by entrenched local interests.  This kind of corruption is inhibiting Bosnia and Herzegovina's economy, stealing a more prosperous future from its citizens, paralyzing its progress toward European integration, and putting foreign investment at risk, including investment from the United States. I strongly urge you to take concrete steps that will show that U.S. patience with such behavior is at an end.  Bosnian officials should be held accountable if they engage in corrupt activities or tolerate corrupt conduct by those in their ranks.  In particular, I hope that you will consider devoting additional U.S. resources to uncovering and documenting corrupt conduct in Bosnia and Herzegovina so that Bosnian officials and leaders can be publicly exposed and held to account. The United States should also consider a wide range of policy responses to corruption in Bosnia and Herzegovina, including the potential denial of U.S. visas and potential seizure of assets in the United States.  Evidence of corruption should also be shared with our European partners, giving the European Union the chance to take similar actions as well.  Coordinated international efforts against corruption in Albania might serve as a useful example in this regard. Thank you for your consideration.  I look forward to continuing my work with you to enhance security, stability, and economic prosperity throughout Southeast Europe. Sincerely, Roger F. Wicker Co-Chairman Commission on Security and Cooperation in Europe

  • The Helsinki Process: A Four Decade Overview

    In August 1975, the heads of state or government of 35 countries – the Soviet Union and all of Europe except Albania, plus the United States and Canada – held a historic summit in Helsinki, Finland, where they signed the Final Act of the Conference on Security and Cooperation in Europe. This document is known as the Helsinki Final Act or the Helsinki Accords. The Conference, known as the CSCE, continued with follow-up meetings and is today institutionalized as the Organization for Security and Cooperation in Europe, or OSCE, based in Vienna, Austria. Learn more about the signature of the Helsinki Final Act; the role that the Conference on Security and Cooperation in Europe played during the Cold War; how the Helsinki Process successfully adapted to the post-Cold War environment of the 1990s; and how today's OSCE can and does contribute to regional security, now and in the future.

  • It's Time to Hold the Azerbaijan Regime Accountable

    Azerbaijani President Ilham Aliyev's habit of brutally silencing dissent may be finally catching up with him. A new bill introduced in Congress last month would require the U.S. State Department to deny visas to senior members of Aliyev's government until the country can prove it has ceased harassment of independent media and NGOs and made significant progress toward freeing its political prisoners. Despite facing long odds, the Azerbaijan Democracy Act of 2015 marks a major turning point. For years, the United States has struggled to muster any real condemnation of Azerbaijan's government, one of the most corrupt and repressive in the world. U.S. officials and lawmakers still routinely refer to their Azerbaijani counterparts as "friends" despite the fact that the former Soviet country's latest crackdown has been accompanied by a general turn away from the West. Or should we say partial turn. Azerbaijan wants to be at the table with Western nations when money is up for grabs, but it hasn't acquired the same taste for values about human rights and dignity. This juxtaposition was perhaps most apparent earlier this year when the country hosted the inaugural European Games, a 17-day competition featuring 6,000 athletes from 50 countries. The capital city of Baku spared no expense to project a modern, glamorous image during the event--even flying in Lady Gaga for a surprise performance. For many people, it was a first glimpse of Azerbaijan. But that glimpse was carefully choreographed. Foreign reporters who agreed to play by the government's rules were rewarded with access to the games; others,including Guardian sports correspondent Owen Gibson, were banned from attending after calling out human rights abuses in the country. What the cameras did not capture that night was the escape of Emin Huseynov, the founder of the Institute for Reporters' Freedom and Safety, who fled Azerbaijan for Switzerland on the private plane of the Swiss foreign minister. Huseynov first sought refuge at the Swiss embassy ten months earlier after Azerbaijani authorities raided his office. Other human rights advocates and journalists have not been as fortunate. Within a 10-day period in August 2014, Intigam Aliyev, Rasul Jafarov, and Leyla and Arif Yunus all were arrested. They were later subjected to speedy show trials resulting in lengthy prison sentences for crimes they did not commit. Leyla and Arif, both seriously ill, have recently been released to serve suspended sentences but still face charges of treason. Employees of Meydan TV, whose founder reported receiving a high-level threat during the European Games, have been barred from leaving Azerbaijan, repeatedly questioned at the prosecutor's office, and detained without cause. Their families have also faced pressure. Two brothers of editor Gunel Movlud are currently being held on bogus drug charges. Most tragically, in August, Rasim Aliyev, a journalist and chairman of the Institute for Reporters' Freedom and Safety, died after he was severely beaten by attackers. Although the assault was reportedly connected to a criticism Aliyev made of a soccer player on Facebook, Aliyev had previously experienced threats against his life. The attack was one of hundreds against Azerbaijan's journalists in the past decade, including at least two other murders. Quiet diplomacy from the United States and the European Union has failed to reverse Azerbaijan's relentless pursuit of critics and civil society groups. The State Department called Leyla Yunus' release earlier this month a "welcome" development and a "positive step." Meanwhile, the deputy chairman of the opposition Popular Front Party, was arrested the day before, and the treason trial of dissident journalist Rauf Mirqadirov is still underway. But perhaps President Aliyev's luck is running out. In November, in an unprecedented step, the Organization for Security and Co-Operation in Europe's Office for Democratic Institutions and Human Rights, its Parliamentary Assembly, and the European Parliament all canceled monitoring missions to Azerbaijan to protest the irregularity of the country's parliamentary elections. Last month, Thorbjørn Jagland, secretary general of the Council of Europe, made a bold move of his own, announcing an inquiry into Azerbaijan's implementation of the European Convention on Human Rights. And on the same day, U.S. Congressman Chris Smith, chairman of the Helsinki Commission, introduced the Azerbaijan Democracy Act and held a hearing on the case of Khadija Ismayilova, one of the few journalists in Azerbaijan who dared to report on corruption among the country's ruling elite. Ismayilova was arrested last year and is now serving a seven and a half-year prison sentence. Ismayilova has kept up the pressure on her country even from behind bars. On the eve of the European Games, with the help of Sport for Rights, a coalition of international press freedom groups that recently published a report on Azerbaijan's human rights record, she managed to get a letter out of jail to The New York Times. "The truth is that Azerbaijan is in the midst of a human rights crisis. Things have never been worse," she wrote, urging the international community: "Do not let the government of Azerbaijan distract your attention from its record of corruption and abuse." Maybe now the world is ready to listen.

  • Helsinki Commission Chair Acts to End Human Rights Violations in Azerbaijan

    WASHINGTON—Following years of systematic efforts by the Government of Azerbaijan to eliminate the voices of independent journalists, opposition politicians, and civil society groups, Helsinki Commission Chair Rep. Chris Smith (NJ-04) today introduced H.R. 4264, the Azerbaijan Democracy Act of 2015, a landmark bill that will deny U.S. visas to senior members of the Azerbaijani government. “We recognize that there are important national security and economic ties that exist between our two countries, but the United States can no longer remain blind to the appalling human rights violations that are taking place in Azerbaijan,” said Rep. Smith. “Journalists and activists are routinely arrested and imprisoned; opposition politicians are in jail and elections are not free and fair; human rights lawyers have been harassed and disbarred; and religious freedom is under attack.  The Azerbaijan Democracy Act demonstrates that the United States takes human rights and fundamental freedoms seriously, and that we will not compromise when faced by a government that represses the political opposition, the media, and religious minorities.” In addition to denying U.S. visas to senior leaders of the Government of Azerbaijan, those who derive significant financial benefit from business dealings with senior leadership, and members of the security or judicial branches, the Azerbaijan Democracy Act also expresses the sense of Congress that financial penalties should be considered. Sanctions could be lifted when the Azerbaijani government shows substantial progress toward releasing political prisoners, ending its harassment of civil society, and holding free and fair elections. “It is unacceptable that senior members of the Azerbaijani government are free to visit the United States while courageous women and men like investigative journalist Khadija Ismayilova, attorney Intigam Aliyev, opposition politician Ilgar Mammadov, and activist Anar Mammadli are locked away in prisons with inadequate access to legal or even medical assistance,” Rep. Smith said. “If they can pay the price for standing up for human rights, the least we can do is to stand with them.” Rep. Smith is a long-standing advocate for human rights in Azerbaijan. Following the introduction of today’s legislation he will chair a 2PM hearing to examine Azerbaijan’s persecution of Ms. Ismayilova, who was sentenced to 7.5 years in prison in early September.

  • Attacks on Press Freedom in Azerbaijan Investigated at Congressional Hearing

    WASHINGTON—At a hearing convened today by the Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, Chairman Chris Smith (NJ-04) and other lawmakers examined the plight of political prisoners in Azerbaijan and in particular the imprisonment of journalist of Khadija Ismayilova, an investigative journalist known for her reports into the wealth of the senior leadership of the Government of Azerbaijan. “Much of Khadija’s reporting was done as a journalist for U.S.-funded Radio Free Europe/Radio Liberty. This means that the U.S. government has a special obligation to do everything it can to secure Khadija’s release,” said Helsinki Commission Chair Rep. Chris Smith (NJ-04). “Our government must take every opportunity, must leave no stone unturned, in the effort to secure her release. The State Department must make Khadija’s release a true diplomatic priority.” Following several months of harassment by Azerbaijani authorities, Ms. Ismayilova was arrested on spurious charges in December 2014. RFE/RL was subsequently raided and closed by the Government of Azerbaijan. After a lengthy trial that was widely condemned by the international community for numerous irregularities, in September Ms. Ismayilova was sentenced to 7.5 years in prison. Her appeal was denied on November 25. “Human rights organizations have documented Azerbaijan’s crackdown on civil society over the last three years,” Rep. Smith continued. “The human rights situation has seriously deteriorated in Azerbaijan, causing damage to its relations with the United States and other countries, and has damaged its own society by imprisoning or exiling some of its best and brightest citizens. The time has come to send a clear message.” Nenad Pejic, Vice President and Editor-in-Chief of Programming at RFE/RL, testified at the hearing. He said, “The arrest and imprisonment of Khadija Ismayilova and the closure of RFE/RL’s Baku bureau represent a targeted and coordinated effort by the country’s most senior leadership to punish journalists who report on the government’s corruption, silence independent journalism, and end RFE/RL’s operations in Azerbaijan.” “[We urge] the Commission, the Obama Administration, and Members of Congress to raise the issue of restrictions on freedom of the press in meetings with senior Azerbaijani officials, to demand the immediate release of all Azerbaijani journalists, to put an end to these trumped-up prosecutions, to abandon the practice of collective punishment and to investigate the murders of journalists,” said Delphine Halgand, the U.S. director of Reporters Without Borders. “President Obama should meet with Khadija Ismayil’s mother, and members of Congress visiting Azerbaijan should visit Khadija Ismayil in prison,” said T. Kumar, International Advocacy Director for Amnesty International USA. The Helsinki Commission has long pressed the Government of Azerbaijan to end its repression of the political opposition, journalists, and religious minorities. Earlier today, Chairman Smith introduced H.R. 4264, the Azerbaijan Democracy Act of 2015, landmark legislation to deny U.S. visas to senior members of the Azerbaijani government following years of systematic efforts by the Government of Azerbaijan to eliminate the voices of independent journalists, opposition politicians, and civil society groups. In 2015 alone, the Commission has issued numerous statements on the rapid decline of human rights in the country and held a November briefing examining how the government of Azerbaijan uses its judicial system to intimidate and imprison critics of the government.

  • U.S. Bill Seeks Sanctions On Azerbaijani Officials For 'Appalling' Rights Record

    A U.S. lawmaker has introduced legislation that would deny U.S. visas to senior Azerbaijani officials due to what he calls Baku's "appalling human rights violations." U.S. Representative Chris Smith (Republican-New Jersey) introduced the bill, titled the Azerbaijan Democracy Act of 2015, in the House of Representatives on December 16. "The human rights situation has seriously deteriorated in Azerbaijan, causing damage to its relations with the United States and other countries, and has damaged its own society by imprisoning or exiling some of its best and brightest citizens," Smith told a hearing of Congress's Helsinki Commission held in conjunction with the announcement of the legislation.

  • Helsinki Commission Hearing to Scrutinize Azerbaijan’s Persecution of RFE/RL Reporter Khadija Ismayilova

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: “Azerbaijan’s Persecution of RFE/RL Reporter Khadija Ismayilova” Wednesday, December 16, 2015 2:00 PM Rayburn House Office Building Room 2200 Live Webcast: http://bit.ly/1VRaf3G In December 2014 the Government of Azerbaijan arrested investigative journalist Khadija Ismayilova on spurious charges and subsequently raided the offices of her employer, U.S.-funded Radio Free Europe/Radio Liberty (RFE/RL).  After a lengthy trial that was widely condemned by the international community for numerous irregularities, in September Ms. Ismayilova was sentenced to 7.5 years in prison. Her appeal was denied on November 25 and the RFE/RL Baku Bureau has remained shuttered by the Government of Azerbaijan.  As Helsinki Commission Chair Rep. Chris Smith (NJ-04) noted at the time of her sentencing, “[Ms. Ismayilova] is being robbed of her freedom for exposing corruption within the Azerbaijani government. Her arrest last December and the subsequent shutdown of the RFE/RL bureau in Baku were direct attacks on media freedom.”  Ms. Ismayilova is known for her well-documented investigative reports into the wealth of the senior leadership of the Government of Azerbaijan and had suffered harassment from the security services for some time before her arrest.  This hearing will examine the conduct of the trial against Ms. Ismayilova and whether or not the U.S. Government has done all it can to secure her release and to address the closing of the Baku bureau of RFE/RL. The following witnesses are scheduled to testify: Nenad Pejic, Vice President / Editor-in-Chief of Programming, RFE/RL Delphine Halgand, U.S. Director, Reporters Without Borders T. Kumar, International Advocacy Director, Amnesty International USA Shelly Han, Policy Advisor, Commission on Security and Cooperation in Europe  

  • Human Rights Violations in Russian-Occupied Crimea

    The briefing reviewed the current condition of life in Crimea under Russian rule. Panelists highlighted the illegal nature of Russian rule over the peninsula and described the human rights abuses commited by the new authorities. Several of the panelists described the propaganda campaign and censorship that the Russian government has been carrying out to tighten its grip on the peninsula. Participants also outlined possible responses by the international community -- particularly sanctions -- to address the situation in Crimea.

  • The Rule of Law and Civil Society in Azerbaijan

    This briefing discussed the current state of democracy and human rights in Azerbaijan following the 2015 parlimentary election.  Ambassador Morningstar, who was the U.S. ambassador to Azerbaijan from 2012 until 2014, recommended that the United States focus on building trust and opportunites for cooperation with the Azerbaijani government, in order to have leverage to encourage respect for human rights. Natalia Bourjaily spoke about the increasing number of legal restrictions on foriegn NGOs in Azerbaijan and Dinara Yunus discussed the conditions under which her parents, Azeri human rights activists, were held.  

  • Helsinki Commission Briefing to Examine Serious Decline in Respect for Human Rights in Azerbaijan

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: “The Rule of Law and Civil Society in Azerbaijan” Thursday, November 5 2:00PM Cannon House Office Building Room 311 The last two years have witnessed a precipitous decline in the respect for rule of law and human rights in Azerbaijan. Many independent civil society organizations have been forced to close due to onerous regulations, threats of intimidation, or the arrest of the organization’s leaders. Independent media has been severely curtailed or closed down. Opposition parties are harassed and often shut out of the election process. High-profile politicians are serving lengthy prison sentences on charges that many observers believe were politically motivated. This briefing will have a particular focus on the rule of law and how the government of Azerbaijan is using its judicial system to intimidate and imprison critics of the government. The briefing will also analyze the results of the November 1 parliamentary election and its implications for Azerbaijan’s future direction. The following panelists are scheduled to participate: Ambassador Richard Morningstar, US Ambassador to the Republic of Azerbaijan from July 2012 to August 2014 and Founding Director of the Global Energy Center, Atlantic Council Natalia Bourjaily, Vice President – Eurasia, International Center for Not-for-Profit Law Dinara Yunus, Daughter of imprisoned Azerbaijani human rights defenders Leyla and Arif Yunus

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