Responding to Afghanistan's Opium Economy Challenge : Lessons and Policy Implications from a Development Perspective

Opium, Afghanistan's leading
economic activity, lies at the heart of the challenges the
country faces in state building, governance, security, and
development. With their narrow law enforcement focus and
limited recognition of development, security, and political
implications, current global counter-narcotics polices
impose a heavy burden on Afghanistan. This paper first
provides a summary overview of Afghanistan's opium
economy and the factors determining rural households'
decisions on cultivating opium poppy. It then discusses the
dynamic evolution of the Afghan drug industry in recent
years, in particular its consolidation around fewer,
powerful, politically-connected actors and the associated
compromising of parts of some government agencies by drug
industry interests. The paper reviews the experience with
different counter-narcotics interventions, analyzes some
proposals not yet tried in Afghanistan, and draws lessons
and policy implications. Unfortunately there are no
"silver bullets"-easy, quick, or one-dimensional
solutions, and a longer-term horizon along with sustained
commitment and resources will be required in order to phase
out the opium economy over time. The paper concludes by
putting forward some broad principles and approaches of a
"smart strategy" against drugs in Afghanistan.