Category Archives: economics

North Korea’s Masters of Money

From The Great Successor: The Divinely Perfect Destiny of Brilliant Comrade Kim Jong Un, by Anna Fifield (PublicAffairs, 2019), Kindle pp. 147-148:

Private property ownership is still technically illegal in North Korea, but that hasn’t stopped the emergence of a vibrant housing market. Sometimes people lease out the right to live in the apartments assigned to them by the state; at other times, masters of money sell the apartments they’ve been allocated in these new developments for substantial profits.

As a result, real estate prices have soared, with prices in Pyongyang increasing as much as tenfold. A decent two- or three-bedroom apartment in the capital costs up to $80,000, but a luxury three-bedroom apartment in a sought-after complex in central Pyongyang can fetch $180,000. It is an unimaginable sum in a country where the official government salary remains at about $4 a month.

Another reason for the real estate boom is the almost complete lack of a banking system. The masters of money can’t stash their cash in an interest-bearing account or investment fund, so they channel it into bricks and mortar.

Ri Jong Ho’s entrepreneurial good fortune began in the mid-’80s, when he began working for Office 39. By earning money for Kim Jong Il’s slush fund, he was enabling the Dear Leader to buy all that cognac and sushi. That made Ri an important person to the regime, and he lived a good life as a result.

His last job was in the Chinese port city of Dalian, not far from the border with North Korea, where he was the head of a branch of Taehung, a North Korean trading company involved in shipping, coal and seafood exports, and oil imports. He had previously been president of a ship-trading company and chairman of Korea Kumgang Group, a company that formed a venture with Sam Pa, a [notorious] Chinese businessman, to start a taxi company in Pyongyang. Ri showed me a photo of him and Pa onboard a private jet to Pyongyang.

As head of the Dalian branch of the Taehung export business, Ri would send millions of dollars in profits—denominated in American dollars or Chinese yuan—to Pyongyang. In the first nine months of 2014, until his defection in October that year, Ri said he sent the equivalent of about $10 million to the regime. Despite all the sanctions, the US dollar is still the preferred currency for North Korean businessmen since it is easiest to convert and spend.

It didn’t matter that there were supposedly stringent international sanctions in place. Ri’s underlings simply handed a bag of cash to the captain of a ship leaving from Dalian to the North Korean port of Nampho or gave it to someone to take on the train across the border.

But Uncle Jang’s downfall at the end of 2013 spooked many masters of money, including Ri. He and his family escaped from Dalian to South Korea and then eventually to the United States.

He clearly made a tidy sum of money for himself on the sidelines of his official job. The family lived a comfortable life in the Virginia suburbs. But even in the United States, Ri was cagey about meeting me and careful about what he said. “There are so many other stories, but I can’t tell you all them. Do you understand?”

He gives occasional public speeches about the North Korean regime—and much more private advice to the American government—while his children work on their English and study to go to an American university. They want Ivy League or, failing that, Georgetown.

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North Korea’s Caste System

From The Great Successor: The Divinely Perfect Destiny of Brilliant Comrade Kim Jong Un, by Anna Fifield (PublicAffairs, 2019), Kindle pp. 120-123:

Why, then, if so many North Koreans know about the outside world, and know that the regime is lying to them, has the system survived? The answer lies in the unparalleled brutality of the regime, which has no compunction in meting out severe punishments for the smallest hint of disaffection.

To enforce the lie that he’s the best man for the job, Kim Jong Un has perpetuated North Korea’s political caste system with zeal, rewarding those deemed most loyal to him and ruthlessly punishing those who dare question him.

This caste system is another legacy of his grandfather. When he was creating his ideal state, Kim Il Sung borrowed some of the feudal practices of the Chosun Dynasty, which had ruled Korea for five centuries until almost 1900. He adopted the Chosun-era system of guilt by association. It is this system that, even now, can lead to three generations of an entire family being imprisoned, sometimes for life, for one person’s wrongdoing.

He also stole the discriminatory class system called songbun from the Chosun era, dividing North Korea into fifty-one different categories that fall into three broad classes: loyal, wavering, and hostile.

To this day, in Kim Jong Un’s North Korea, the loyal are given every advantage. They are the 10 to 15 percent of the population who are considered the most politically committed to the system and have the most interest in it continuing. They get to live in Pyongyang and receive better schooling, including the possibility of attending Kim II Sung University. They are set up for plum jobs and have a head start on Workers’ Party membership. The loyal caste live in better apartments, wear better clothes, eat better and more food, and are more likely to be able to visit a doctor who actually has medicine.

At the bottom are the hostiles: the Japanese collaborators, the Christians, the skeptics. They comprise about 40 percent of the population and are generally banished to the inhospitable mountains of the north, where winters are unbearable and food is scarce even by North Korean standards.

These “undesirables” have no social mobility and no hope of advancement. Their lives revolve around a collective farm or factory—an assignment that, for the last few decades, has meant fending for themselves.

In between the loyal and the hostile is the wavering class, the ordinary people who make up about half the North Korean population. They exist in a kind of limbo. They have no chance of going to college or having a professional job, but if they’re lucky, they might secure a good assignment during their military service that will help them work their way to a slightly better standard of living.

Someone born with bad songbun has no hope of moving up the social hierarchy. The upper levels, however, can plummet all the way to the bottom if they put a foot wrong. Through this system, and the constant threat of being demoted down the classes, Kim Jong Un has been able to maintain power.

If you’re a member of the loyal class—living in Pyongyang and able to earn some money on the side of your ministry job to send your children to university—you would think twice before openly questioning whether the leader could really drive a car at age five or criticizing the decision to spend millions on nuclear weapons instead of on hospitals and schools. There is always someone to keep an eye on you and report if you’re not sufficiently devoted to the regime. At the grassroots level, it starts with the inminban, literally “people’s group,” a kind of neighborhood watch system. Each neighborhood is broken down into groups of thirty or forty households, with a leader who is always an interfering middle-aged woman. It is her job to keep an eye on what people in her assigned households are up to. North Koreans like to say that the leader of their neighborhood group is supposed to know how many chopsticks and how many spoons each house has.

She is responsible for registering overnight visitors—in North Korea, a person can’t stay at a friend or relative’s house without notifying the authorities—and often, together with the local police, conducts dead-of-night raids to ensure there are no forbidden guests or that residents like Man-bok or Jung-a are not watching South Korean movies. She inspects everyone’s state-issued radio to make sure they haven’t tuned it to anything other than the state station. She checks cell phones to make sure they don’t contain unauthorized music or photos from the outside world.

She also encourages neighbors to report on one another. If a family is thought to be eating white rice and meat suspiciously often, people might wonder how they’re making their money.

North Koreans live in a system where every aspect of their lives is monitored, where every infraction is recorded, where the smallest deviation from the system will result in punishment. It is ubiquitous, and it keeps many people from even raising an eyebrow at the regime. The neighborhood leader needs to report transgressions in order to stay in good stead with the higher authorities, especially the two main security agencies.

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North Korea’s Market Economy

From The Great Successor: The Divinely Perfect Destiny of Brilliant Comrade Kim Jong Un, by Anna Fifield (PublicAffairs, 2019), Kindle pp. 100-101:

Chinese-style reform and opening—allowing information to flow in at the same time as loosening up on the economic controls—was not an option for Kim. Allowing the population to have access to the truth would mean they would also see that the Great Successor was, in fact, not so great. But small economic “improvements”—North Korea doesn’t call them “reforms” because that implies there’s something wrong with the system—pose relatively little risk.

Instead, he allowed the markets, called “jangmadang,” to blossom.

From the smallest of towns to the biggest of cities, there’s at least one bustling marketplace. Across the country, these markets have become the center of daily life. They are overwhelmingly run by women, who, once married, are no longer required to work in state jobs. So while their husbands go off to coal mines without electricity or hospitals without medicine, the women make proper money.

People with permission—or with enough money to buy permission—to travel to China cross the Tumen River and bring back rice cookers, high-heeled shoes, solar panels, deworming tablets, colorful shirts, cell phone cases, and screwdrivers. Sometimes they bring literal kitchen sinks. About 80 percent of the products in North Korea’s markets are made in China.

Those who can’t travel set up shop as hairdressers or bike repairers, open restaurants, or sell homemade sweets. Some entrepreneurial types make money by renting out their cell phones for calls to South Korea or their apartments to couples wanting some privacy.

These markets have become the biggest agent for change that North Korea has ever experienced. People across the country have seen their living standards improve—just as Kim Jong Un promised. Maybe things didn’t improve as much as many citizens, such as Mr. Hong, wanted, but they’re still heading in a positive direction. There is now a middle class in North Korea.

There are now more than four hundred government-approved markets in North Korea, double the number that existed when Kim Jong Un took over the country. The city of Chongjin alone has about twenty. The markets in Sinuiju and the “smugglers’ village” of Hyesan, both close to the border with China, as well as those in the port city of Haeju, have all grown rapidly and visibly in recent years. Satellite images show new markets popping up all over North Korea and old markets moving into bigger, newer buildings.

With an average of fifteen hundred stalls in a market, there is stiff competition to secure a prime spot. A good stall in a prominent place in Hyesan was going for about $700 in 2015—an astronomical sum in North Korea. But there is so much demand for stalls that even these expensive slots are being snapped up as soon as they become available.

At every turn, there is someone seeking to make money from the markets. The security services extract bribes from those seeking to cross the river into China. The supposedly communist authorities have embraced the decidedly capitalist concept of tax. People running stalls in the markets must now pay 10 percent of the value of their sales to the market management office. South Korean researchers estimate that the authorities rake in about $15 million a day in stall rental fees from merchants, while other estimates suggest the state can earn almost a quarter of a million dollars in a single day by levying taxes on stall owners.

Each market is run by a manager, someone who is almost always a man and who is well connected with local bureaucrats. This is a powerful role that comes with the opportunity to make a lot of money—and, of course, an obligation to pay kickbacks to higher-ups who put them in the job.

As the state economy has failed, with industry grinding to a halt thanks to a lack of electricity or raw goods, the markets have become the lifeblood of North Korea.

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Kim Jong Un’s Tiger Mom

From The Great Successor: The Divinely Perfect Destiny of Brilliant Comrade Kim Jong Un, by Anna Fifield (PublicAffairs, 2019), Kindle pp. 50-52:

The apartment on Kirchstrasse was more modest than what he was used to back home, but Kim Jong Un could live a relatively normal existence there. And he could devote himself to his favorite pastime: basketball. It was his mother who first sparked his interest in the sport. There’s an old tale that Korean mothers, North and South, like to tell their children: if you play basketball, you’ll grow taller.

Kim Jong Un was short as a child, and his father was not a tall man—he was only five foot three, and famously wore platform shoes to try to compensate—so Ko Yong Hui encouraged her son to play basketball in the hope the tale was true. He grew to be five foot seven, so maybe it worked a bit.

She was thrilled to see her son taking to basketball, a sport that she believed would help him clear his mind and loosen his childhood obsession with planes and engines. Instead, Kim Jong Un’s mother and aunt soon saw that basketball had become an addiction too—the boy was sleeping with his basketball in his bed—and one that came at the expense of his studies. His mother would visit Bern regularly to scold her son for playing too much and studying too little.

She arrived on a passport that declared her to be Chong Il Son, assigned to the North Korean mission at the United Nations in Geneva since 1987, but the Swiss knew exactly who she was. After all, she arrived in the country in a Russian-made Ilyushin 62 jet bearing the insignia of Air Koryo, the North Korean state airline. The plane, which bore the tail number P882, was for VIPs only. It even had a full bedroom onboard.

All sorts of bags and merchandise would be loaded on and off the plane, watched carefully by Swiss intelligence. They monitored Ko Yong Hui closely, keeping records of everything from her shopping expeditions on Zurich’s Bahnhofstrasse, one of the world’s most exclusive shopping avenues, to her hospital bills at fancy private clinics on Lake Geneva.

They also knew who her children were. They called Kim Jong Chol “the tall, skinny one” and Kim Jong Un “the short, fat one.” But the new Swiss attorney general, Carla Del Ponte (who would later become chief prosecutor in the international criminal tribunals on Yugoslavia and Rwanda), had forbidden the Swiss authorities to monitor the children. In famously discreet Switzerland, they were allowed to just be children—even if they were the children of one of the world’s most notorious tyrants.

When Kim’s mother arrived in Bern, she would bring handwritten notebooks containing one thousand Chinese characters, which form the basis of most Korean words, that she had made and photocopied so the children could keep up with their language skills. She told her sons that they had to memorize five or six pages a day, the kind of homework that torments Korean children the world over.

She was what we today would call a tiger mother, pouring a lot of energy into her children’s education and going through their journals and homework no matter how late she returned to the apartment at night.

But Kim Jong Un had other priorities.

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Building the Transition to Kim Jong Il

From The Great Successor: The Divinely Perfect Destiny of Brilliant Comrade Kim Jong Un, by Anna Fifield (PublicAffairs, 2019), Kindle pp. 24-25:

In 1983, Kim Jong Il made his first known foreign trip without his father, a visit to factories in emerging China. The visit, one of a handful the Dear Leader made over the years, was part of Beijing’s efforts to encourage North Korea to embark on a journey of economic transformation without democratizing, just as China had done.

“Through tireless revolutionary activities spanning over 30 years, he ushered in a new era of prosperity,” according to an official North Korean history of Kim Jong Il’s life that was published soon after he became leader.

But the reticent Kim Jong Il could hardly have been more different from his gregarious father. Kim Il Sung was lionized as a fearless guerilla fighter who led the charge against the imperialist Japanese. Kim Jong Il had next to no military experience. He was a film lover, a heavy-drinking playboy with a bouffant hairdo whose main contribution to the state was the movies he directed.

Still, in 1991, he was pronounced Supreme Commander of the Korean People’s Army. It was hardly an auspicious time to cement the succession. The Berlin Wall had come down. Just two days after his promotion, the Soviet Union collapsed. The Communist Bloc that had supported the North Korean regime, both economically and ideologically, was no more.

To bolster the case for hereditary succession in these challenging circumstances, the regime created a fantastical story about Kim Jong Il’s provenance that borrowed heavily from both Korean mythology and Christianity. He would be leader not simply because he had been appointed by his father but because he had some divine right.

His birthplace became not a guerrilla camp in Khabarovsk but Mount Paektu, the volcano on North Korea’s border with China that has legendary status in Korean culture. It is said to be the birthplace of Tangun, the mythical half-bear, half-deity father of the Korean people. The creature conferred a heavenly origin on the Korean people, and, thanks to this story, Kim Jong Il appeared to come from heaven too.

North Korea’s propagandists didn’t stop there. They said that Kim Jong Il was born in a wooden cabin and that a single bright star shone in the sky at his birth. They stopped short of making the building a manger or his mother a virgin. But, for good measure, they added a double rainbow spontaneously appearing over the mountain. The myth of the holy Paektu bloodline was created.

Kim Jong Il had been busy perpetuating that Paektu bloodline over the previous two decades. He had racked up quite a cast of wives and consorts—and children.

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What Aid to Afghanistan Bought

From No Good Men Among the Living: America, the Taliban, and the War through Afghan Eyes, by Anand Gopal (Henry Holt, 2014), Kindle pp. 271-274:

Not long after, I returned to Afghanistan. President Obama’s plan to withdraw US troops was well under way, with bases closing and equipment being destroyed. Could the war’s true winners be found in what we were leaving behind? I traveled through Uruzgan, and on the KandaharTirin Kot highway I could see Matiullah’s men everywhere, as they had been during my last visit. But the road north of Tirin Kot, heading into Ghilzai country, was now dotted here and there with new militia outposts not adorned with Matiullah’s photo or the Afghan flag. I stopped at one, a small wooden trellis with a canopy of leaves as cover, and met the fighters. They were under the control of a local strongman, who was being paid by a private company to protect a road construction project. Every mile or so I came upon another such militia, each run by a different strongman.

Later, I arrived at the home of Daud Khan, a leader of the local Barakzai tribe and one of the key militia commanders in the province, perhaps second only to Matiullah himself. He was heavily invested in protecting road construction crews against Taliban attacks, and the impending US withdrawal was hurting his business prospects. “We need money,” he told me. “We need money because life is hard out here. We’ve got a lot of expenses—I need weapons, RPGs, trucks, we want body armor. I keep asking the Americans for body armor but they won’t give it to me. They expect us to fight with nothing.”

I asked him if he had gotten into firefights with the Taliban recently. He clasped his hands together and laughed. “The Taliban? My mother can fight the Taliban. They just put bombs in the ground. They won’t be a problem after the Americans leave.”

Then why the need for all the weapons?

“Matiullah,” he said. “He’s worse than the Taliban. After the Americans leave, we’ll need to protect ourselves.” Tirin Kot was now caught in a cold war between Daud Khan’s and Matiullah’s forces. By my count there were more than thirty pro-American armed groups operating in central Uruzgan alone, some aligned with Matiullah, some against.

Later that afternoon I visited Daud’s uncle, a militia commander named Shah Muhammad. We sat in a field overlooking his poppy plantation, surrounded by nearly a dozen fighters. “There’s something I want to tell you,” he said, looking at me keenly. “There’s only one force that can save Afghanistan. The Americans. And I want you to know how much I despise the Taliban. Even if my father was a Talib, I’d kill him.” He shifted to sit next to me, nearly whispering in my ear. “I’m in trouble. You’re an American. I need your help. I want to fight the Taliban, I just need contracts. If the Americans give me some contracts, I can bring security. I can turn this war around. I just need money.” He begged me to pass on the message to politicians in Washington.

Such jockeying for patronage was nothing new. From its earliest days, the Karzai government was tethered to American aid, incapable of surviving on its own. It was reminiscent of the Communist regime of the 1980s, which lived and died by Moscow’s patronage—except that now there was a twist. Of the $557 billion that Washington spent in Afghanistan between 2001 and 2011, only 5.4 percent went to development or governance. The rest was mostly military expenditure, a significant chunk of which ended up in the coffers of regional strongmen like Jan Muhammad [Khan]. In other words, while the United States paid nominal amounts to build the Afghan state, it fostered a stronger and more influential network of power outside the state.

These were no conditions for nation building. Instead, as journalist Matthieu Aikins has pointed out, a weak Karzai administration found itself competing with strongmen of the countryside for funds. With warlords like JMK developing their own business and patronage relationships with the United States, the tottering government in Kabul had no choice but to enter the game itself. As a result, the state became criminalized, one of the most corrupt in the world, as thoroughly depraved as the warlords it sought to outflank. So corrupt, in fact, that nearly every metric that US or Afghan officials pressed into service to show progress unravels upon inspection. “Under Taliban rule, only 1.2 million students were enrolled in schools, with less than 50,000 of them girls,” a US forces press release stated in 2011. “Today, under the government of Afghanistan, there are 8.2 million students, of which nearly 40 percent—or 3.2 million—are girls.” But these were largely phantom figures. In the central province of Ghor, for instance, independent investigators discovered that of the 740 schools listed by the education ministry, 80 percent were “not operating at all.” Nonetheless, over four thousand teachers were on the government payroll. The vast majority of them, investigators found, simply collected paychecks and stayed at home, giving a cut to local officials, who in turn funneled a portion to warlords as a way to purchase influence. The story was similar around the country. Traveling through Wardak Province, I came upon one long-abandoned school after another that was still included on the much-touted government tally.

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Wardak No-Man’s-Land, 2009

From No Good Men Among the Living: America, the Taliban, and the War through Afghan Eyes, by Anand Gopal (Henry Holt, 2014), Kindle pp. 235-236:

The summer of 2009 saw an increase in infighting among Wardak’s Taliban, and growing tensions with their co-insurgent allies in Hekmatyar’s faction. At the same time, because the Taliban leadership paid units a “bonus” for outstanding attacks, the number of fake assaults, staged for video, surged. Akbar Gul played the game as well as anyone, but as the days went on he slid into despair. He hated those men in Quetta, he hated the ISI, and, most of all, he hated Ghulam Ali and his success. But he kept it all to himself. It was a dangerous new world, and you couldn’t trust anyone, even your own allies.

Countrywide, his movement was losing steam. The Taliban were now responsible for more civilian deaths than were the Americans. In some communities, roadside bombs, assassinations, and summary executions had come to take their place alongside Guantanamo and the door-kicking night raids of US troops in the pantheon of fears that kept villagers awake at night. Meanwhile, the insurgency was spreading from marginalized, cut-off communities into those that had fared better in the post-2001 years, whether it was welcome there or not.

In Chak, many of the commanders Akbar Gul knew had been killed in night raids, leaving Ghulam Ali’s crew and a smattering of independents, most younger than he, with no memories of the old Taliban days. It became increasingly difficult to defend their actions—which included, in one case, beheading a schoolteacher—to the village elders. He turned inward, planning operations on his own, without other commanders, and keeping away from Pakistan. Then, one day, he received a surprising phone call. It was the government’s new chief of police for Chak, an old war buddy from his Hizb-i-Islami days. They had ended up on opposite sides through chance more than anything else. The man spoke of a government program that invited fighters to switch sides in return for money and a guaranteed job. Akbar Gul listened and wondered where such a program had been years earlier, when he would have given anything for a normal life. But things were different now, more complicated. He realized that it had been a long while since the Taliban meant anything to him. But he couldn’t imagine himself openly joining forces with the government either. In fact, he knew that friends who’d gone down that route were languishing in a dangerous political no-man’s-land: Karzai’s government had not fulfilled its promises, and for the Taliban they were now marked men.

“What are you fighting for? The Americans are going to leave anyway,” the police chief said. “We are building Afghanistan.” The Taliban, he added, were terrorists, enemies of the country, stooges of Pakistan.

Akbar Gul was unmoved. “There are no good men among the living, and no bad ones among the dead,” he replied, reiterating one of his favorite Pashtun proverbs. This war had left no group, Afghan or foreign, with clean hands. You had to be careful to survive. Today, the government said the Taliban were terrorists—but what about tomorrow? Would the Taliban be venerated, as the mujahedeen were now venerated? Would the Americans change their allegiances, as it seemed they had done after the 1980s, and brand the Karzai government as their enemy? It was too much for Akbar Gul to grapple with just then. He knew only that to trust the categories put forth by the Americans or the government was to go down the road to ruin.

He told the police chief that he wasn’t interested. He said he was satisfied with his life as it was, thanked him for his call, and hung up.

The next morning, with new presidential elections looming, with American patrols crawling here and there, with Taliban groups erecting their usual checkpoints to hunt for spies and possible kidnap targets, he hopped on his motorcycle, headed for the low hills behind the village, and began another day of [resistance] work.

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Using U.S. Troops to Settle Afghan Feuds

From No Good Men Among the Living: America, the Taliban, and the War through Afghan Eyes, by Anand Gopal (Henry Holt, 2014), Kindle pp. 130-131:

As winter settled across Uruzgan and people marked the first full year since the Taliban’s downfall, tit-for-tat killings and feuds over access to the Americans continued. But a new political order was slowly, undeniably crystallizing, unwittingly enforced by American forces.

Away from the Pashtun south, the story was different. In the northern province of Balkh, for example, two warlords—Rashid Dostum and Muhammad Atta—jockeyed for control, leading to multiple small-scale skirmishes. The possibility of open warfare seemed all too real, but things never came to a head. Instead, United Nations negotiators were able to preserve the peace, as Atta accepted a governorship and Dostum a post in Kabul. I asked Eckart Schiewek, then a political advisor with the UN mission to Afghanistan, why the outcome was so different, why the southern pattern of killings had never taken hold. “There were no American troops,” he replied, pointing out that almost the entire US military presence was concentrated in the Pashtun south and east near the Pakistani border. “You couldn’t call on soldiers to settle your feuds.”

Anthropologist Noah Coburn found a similar dynamic in his study of Istaliff, a district near Kabul similar in size to Khas Uruzgan but with no regular US troop presence. “International military forces,” he wrote, had “little interest in involving themselves in local politics” in Istaliff. Because none of the various Afghan factions competing for power enjoyed privileged access to foreign troops, no group could outmuscle the other, and no one “seriously considered trying to establish hegemonic control over town politics.” The result was a tenuous, fragile stability—but stability nonetheless. No communities were severed from state access, nor were there cycles of bloody revenge. And, to this day in Istaliff, there is no anti-American insurgency.

In southern Afghanistan, the mix of American boots on the ground and strongmen itching to outflank their rivals prevented such détentes. Day by day, marginalized southern communities from one valley to the next were slipping out of the government’s orbit. The Americans were beginning to wear out their welcome—and it was only going to get worse.

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Early Origins of the Taliban in Kandahar

From No Good Men Among the Living: America, the Taliban, and the War through Afghan Eyes, by Anand Gopal (Henry Holt, 2014), Kindle pp. 79-80:

Most writing on the Taliban assumes that they originated in extremist Pakistani madrassas in the 1980s. In fact, the group’s origins lie much deeper in the Afghan past. Visiting Paktika in 2010, I came upon a small hilltop village where locals had gathered around a silent, downcast man. Nearby, a young herder paced back and forth, watching him intently, and, off to a side, tribal graybeards stood conferring. One of them approached, pushing his way through the scrum, and announced a verdict: for killing Rahim Gul’s cow, Moheb Jan was to pay him two sheep and twenty days’ worth of labor. Afterward, I sat down with the elder, who explained that each transgression in his community carried a fixed fine. Break someone’s nose in a fight, and you gave him a chicken. Break a bone, and you surrendered a sheep or goat. Murder, depending on the circumstances, could cost you a piece of land, your house, or even one of your women, who would go to the victim’s family in marriage.

This was how the hillspeople had learned to live with each other in a world without a state or police or judicial system. Each tribe had its own set of intricate rules, decided by elders elected by the clan’s entire male population. The elders derived their status from experience and the respect traditionally accorded to the aged. No man, however, outranked another in rights, and it was rare for one family to possess significantly more than any other. For men, at least, a deep egalitarian ethos ran through the tribal system.

For a long time, most of the Pashtun belt had functioned this way. Eventually, however, when some tribes moved down from the mountains into agricultural settlements, certain enterprising individuals developed ties with distant state authorities, and soon hierarchies sprang up. In eighteenth-century Kandahar, for example, the Safavid Empire of Persia had established suzerainty, incorporating tribal figures of their liking into their military or using them as intermediaries in dealing with the native population. The egalitarian system of the mountains slowly gave way to one dominated by tribal strongmen, and decisions were increasingly made not through traditional tribal law but on the whims and biases of a small clique of notables. It was not long before Kandahari tribes were the most thoroughly hierarchical in the country.

As a consequence, a different form of justice grew in popularity as an alternative to the tribal system: religious law, or sharia. Like tribal law, religious law expressed itself in a detailed set of punishments and restitutions for particular crimes. Its main practitioners were mullahs, who led Friday sermons and could adjudicate disputes. To become a mullah, you studied for up to twelve years in a madrassa, where you learned the intricacies of Islamic law, along with history, philosophy, and logic. In Pashto, such students were called taliban. Because a mullah was guaranteed employment for life, this was a course of study particularly well suited to those from the humblest backgrounds. It was in greater Kandahar, where tribal structures were the weakest, that the taliban were most fully integrated into social life.

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Negative Human Development in Resource States

From The Looting Machine: Warlords, Oligarchs, Corporations, Smugglers, and the Theft of Africa’s Wealth, by Tom Burgis (PublicAffairs, 2016), Kindle pp. 211-212:

In 1970, the year the Olympic movement expelled South Africa, the government passed legislation formally stripping blacks of their citizenship and restricting them to destitute “homelands,” and the authorities appointed a barbaric new commanding officer at Robben Island prison to watch over Mandela and his fellow inmates, South Africa produced some 62 percent of the gold mined worldwide. From the early 1970s to 1993 gold, diamonds, and other minerals accounted for between half and two-thirds of South Africa’s exports annually.

South Africa’s gold and diamonds provided the financial means for apartheid to exist. In that sense white rule was an extreme manifestation of the resource state: the harnessing of a national endowment of mineral wealth to ensure the power and prosperity of the few while the rest are cast into penury and impotence. None of Africa’s resource states today come close to the level of orchestrated subjugation of the majority that the apartheid regime achieved. Neither do they employ apartheid’s racial creed, even if ethnicity has combined poisonously with the struggle to capture resource rent in Nigeria, Angola, Guinea, and elsewhere. But as their rulers, in concert with the multinational corporations of the resource industry, horde the fruits of their nations’ oil and minerals, Africa’s resource states have come to bear a troubling resemblance to the divisions of apartheid.

While the children of eastern Congo, northern Nigeria, Guinea, and Niger waste away, the beneficiaries of the looting machine grow fat. Amartya Sen, the Nobel Prize–winning Indian economist who has examined with great insight why mass starvation occurs, writes, “The sense of distance between the ruler and the ruled—between ‘us’ and ‘them’—is a crucial feature of famines.” That same reasoning could be applied to the provision of other basic needs, including clean water and schooling. And rarely is the distance Sen describes as wide as in Africa’s resource states.

Many of Africa’s resource states experienced very high rates of economic growth during the commodity boom of the past decade. The usual measure of average incomes—GDP per head—has risen. But on closer examination such is the concentration of wealth in the hands of the ruling class that that growth has predominantly benefited those who were already rich and powerful, rendering the increase in GDP per head misleading. A more revealing picture comes from a different calculation. Each year the United Nations ranks all the countries for which it can gather sufficient data (186 in 2012) by their level of human development, things like rates of infant mortality and years of schooling. It also ranks them by GDP per head. If you subtract a country’s rank on the human development index from its rank on the GDP per head index, you get an indication of the extent to which economic growth is actually bettering the lot of the average person in that country. In countries that score zero—as Congo, Rwanda, Russia, and Portugal did in 2012—living standards are roughly where you might expect them to be, given that country’s GDP per head. People in countries with positive scores enjoy disproportionately pleasant living conditions relative to income—Cuba, Georgia, and Samoa top the table with scores of 44, 37, and 28, respectively. A negative score indicates a failure to turn national income into longer lives, better health, and more years of education for the population at large. Of the ten countries that come out worst, five are African resource states: Angola (–35), Gabon (–40), South Africa (–42), Botswana (–55), and Equatorial Guinea.

Equatorial Guinea’s score (–97), comfortably the worst in the world, is all the more remarkable because its GDP per head is close to $30,000 a year, not far below the level of Spain or New Zealand and seventy times that of Congo.

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