Luce Dispatch #4
The US – Taliban Impasse on Afghanistan’s Frozen Central Bank Assets
After the Afghan government fell to the Taliban, the U.S. froze nearly $9.5 billion of Afghan assets belonging to Da Afghanistan Bank. Without access to these assets the current Taliban government in Kabul is unable to pay government employees. The money flow to Afghanistan has essentially stopped and put the country on the verge of economic collapse.
In September, the U.S. Treasury Department issued two general licenses that allow the U.S. government, NGOs, the UN, and a limited number of other organizations to provide humanitarian assistance to Afghanistan. The freezing of assets is in line with Global Terrorism Sanctions Regulations that specifically target the Taliban and/or the Haqqani Network. In January of 2018, the Treasury Department placed sanctions on 6 individuals whom they identified as financiers and facilitators for the Taliban and the Haqqani Network.
In November, the Taliban wrote an open letter to the US Congress requesting the release of Afghan assets. It declared that the freeze was causing major economic and financial hardship for the Afghan people. Thomas West, the U.S. Special Representative for Afghanistan, in response to the letter countered that the U.S. had made it clear to the Taliban that a military takeover in lieu of a negotiated peace agreement with the Afghan government would result in a cut in aid.
West declared that for the U.S. to change its position and consider the Taliban government legitimate, the Taliban had to form a government that includes all Afghans, respects human rights, minorities, women, and girls. The U.S. this year provided Afghanistan with $474 million in assistance and has pledged to continue to provide humanitarian aid to Afghanistan. However, Afghanistan’s winter has arrived, and most of the population is in danger of starving. Given its current stand on Afghanistan, the U.S. needs to adopt new approaches for easing the humanitarian crisis in Afghanistan.
The different Taliban factions are currently too divided to decide on a new inclusive government. The factions are intent on maintaining their own visions for Afghanistan, which range from the ultra-conservative stereotypical Taliban of the 1990s to more progressive groups that have always approved of female education.
Early this month (December), Hibatullah Akhundzadah, the spiritual leader of the Taliban’s proclaimed Islamic Emirate of Afghanistan, issued a decree on women’s rights. The decree states that women must consent to marriage and cannot be pressured to marry. Additionally, it asserts that women are not property and may not be traded to settle debts or to settle feuds or to make peace. The decree also ensures women their rights to inheritance as guaranteed by shari’a law.
Afghan women and western nations acknowledged this decree as a good start but in no way a move toward meeting western demands of a more inclusive government that would include women, minorities, and non-Taliban. Essentially, the Amir al-Mu’maneen, Hibatullah, has reenforced provisions of Afghan law that were instituted to stop harmful practices against women that were un-Islamic and harmful. Harmful practices perpetrated against women were not reserved to the Taliban but were pervasive throughout the rural hinterlands.
As millions of Afghans hover on the verge of starvation and Afghanistan’s youngest generation suffers from massive malnutrition the withholding of Afghanistan’s frozen assets only aggravates an already impossible situation. How will the world help the Afghans, while maintaining their stranglehold on the country?
https://www.aljazeera.com/economy/2021/8/18/us-freezes-afghan-central-banks-assets-of-9-5bn
https://www.reuters.com/world/asia-pacific/afghan-central-banks-10-billion-stash-not-all-within-reach-taliban-2021-08-17/
https://www.cnbc.com/2021/09/24/treasury-makes-us-aid-to-afghanistan-easier-amid-taliban-sanctions.html
https://home.treasury.gov/system/files/126/ct_gl14.pdf
https://home.treasury.gov/news/press-releases/sm0265
https://www.voanews.com/a/taliban-open-letter-appeals-to-us-congress-to-unfreeze-afghan-assets/6316688.html
https://www.siasat.com/taliban-supreme-leader-issues-decree-safeguarding-womens-rights-2235206/