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Loose Canons

Kabul Bank Too Big to Fail?

U.S. withdrawal from Afghanistan may trump any bailout.

(Page 2 of 2)

If it took only money to keep Kabul Bank open and to prevent Afghanistan from returning to Taliban control, the money would be well spent. But the money won't provide the safety and security that Afghans need to prosper.

We cannot build a functioning democracy in Afghanistan without creating a viable economy as its foundation. When we attacked Afghanistan there was none, and there is not one now. Even without the war in Afghanistan, it would take decades (if not centuries) and trillions of dollars to do so.

Prosperous economies can be revived after the worst devastation as post-World War II Europe and Japan demonstrate. But where -- as in Afghanistan -- no economic infrastructure exists, where the population remains disunited and so insecure that it cannot function economically, there is no economy to revive.

President Obama's nation-building strategy -- inherited from President Bush -- will end with the beginning of our withdrawal from Afghanistan in 2011. Those who believe that we will leave behind a stable democracy strong enough to prevent that country from reverting quickly to a safe haven for terrorists should eagerly support bailing out Kabul Bank.

But for those of us not suffering that particular delusion, bailing out an Afghan bank makes as much sense as any other aspect of nation-building. Which is none at all.

 

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About the Author

Jed Babbin served as a Deputy Undersecretary of Defense under George H.W. Bush. He is the author of several bestselling books including Inside the Asylum and In the Words of Our Enemies.

Letter to the Editor View all comments (5) | Leave a comment

Louis Jenkins| 9.8.10 @ 9:09AM

Let the bank fail. Obama has built a house of cards on a bank of sand, just like the banks in America. How much longer must we pay for mistakes or indescretions? The war will be lost or won on the battlefield, and from the way Obumar is running things it will be lost.

Nation Builder| 9.8.10 @ 9:52AM

Of course Afaganistan has a weak economy. fifth world countries always do. Afganistan worked as a tribal society. Trying to modernize it ruined it. The Soviets,broke it and nobody has figured out how to put the peices back together.

buckeyeman| 9.8.10 @ 10:19AM

At last we have identified a cause in Afghanistan that Obama can really support. Redistributing wealth from rich/greedy americans to a bank that did Allah-knows-what with its assets is right up his alley.

Purple Lips| 9.8.10 @ 2:12PM

I think the amount is $300 million, not $300 billion. And for the record, I seriously doubt there are $300 million worth of assets in all of Afghanistan.

Kabul Businessman| 9.12.10 @ 7:19AM

As an American businessman leading an Afghan owned private company in Kabul, with personal deposits in Kabul bank, I must agree that the US should not fiscally intervene. Our strategy has been wrong from the go. It should have been to kill every SOB that even looked like he was thinking Taliban thoughts. Provide security and let the donor nations and feel good NGOs meddle on the nation building front. Instead of paying the troops and police a living wage we pay their bosses millions and then pay warlords who play both sides to protect us and wonder why there is rampant corruption. UNBELIEVABLE.

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