The Ugly Truth About Foreign Aid in Afghanistan: Kabul's New Elite

Vast sums of money are being lavished by Western aid agencies on their own officials in Afghanistan at a time when extreme poverty is driving young Afghans to fight for the Taliban. The going rate paid by the Taliban for an attack on a police checkpoint in the west of the country is $4, but foreign consultants in Kabul, who are paid out of overseas aids budgets, can command salaries of $250,000 to $500,000 a year.

The high expenditure on paying, protecting and accommodating Western aid officials in palatial style helps to explain why Afghanistan ranks 174th out of 178th on a UN ranking of countries' wealth. This is despite a vigorous international aid effort with the US alone spending $31bn since 2002 up to the end of last year.

The high degree of wastage of aid money in Afghanistan has long been an open secret. In 2006, Jean Mazurelle, the then country director of the World Bank, calculated that between 35 per cent and 40 per cent of aid was "badly spent". "The wastage of aid is sky-high," he said. "There is real looting going on, mainly by private enterprises. It is a scandal."

The dysfunctional reputation of the US aid effort in Afghanistan is politically crucial because Barack Obama, with strong support from Gordon Brown, has promised that a "civilian surge" of non-military experts will be sent to Afghanistan to strengthen its government and turn the tide against the Taliban. These would number up to 600, including agronomists, economists and legal experts, though Washington admitted this week that it was having difficulty recruiting enough people of the right calibre.