H. E Vice President,
Deputy Speaker of the Lower House of the Parliament,
Respected Ministers and deputy ministers,
Members of the Parliament,
Ambassadors and all colleagues of the Diplomatic Corps,
Representatives of Civil society organizations,
Representatives of Chambers of commerce and of the Business Community,
Media representatives,
Ladies and gentlemen,
Avery good morning to all of you!
As a new comer in your country, it is a great privilege that my first public intervention takes place within the premises of the Parliament of Afghanistan. Soon after the presentation of my credentials to the Hon´President, with today´s conference my tenure as Ambassador of the EU definitely starts on a high note both by the quality of the audience and by the importance of the matter we are going to address: Illegal Mining in Afghanistan.
But allow me at the outset to express my gratitude to the colleagues of the Parliament who have worked as a team with the EU Delegation to make it possible to have this crucial discussion. A special vote of thanks should go to the Natural Resources and Environmental Commission of the Parliament and Mr. RamazanJumazada, its chairman, for their valuable partnership.
The topic we are going to discuss this morning is not specific to this time and to this country. There are unfortunately multiple illustrations of illegal mining activities taking place in the context of conflict situations. The most documented is popularly known as the "blood diamonds". It triggered an international response, the Kimberley process that carried concrete results. One of the merits of the Kimberley process is that it combines the efforts of the official authorities, the business community and the civil society. As such it is therefore already a reference that could inspire our deliberations.
We have to face it: the problem we have to discuss is not related to a remote conflict in a distant time! Illegal mining is happening in Afghanistan, literally at our gate, and it is happening now. This creates for all of us an obligation to react, not least since illegal mining delivers its adverse effects at a critical juncture of Afghanistan´s post-2001 trajectory.
Allow a new comer to summarize his views in a candid way and probably over simplified manner along the following lines:
1)Illegal mining is a highly toxic phenomenon for at least3 main reasons:
1) Illegal mining first poses an obvious security challenge
-It is an integral part of the insurgence business model, second only to drug trafficking.
As such it is therefore a driver for the war to prolong and be more ferocious.
-At the local level it is in addition a factor of violence since possession and exploitation of illegal mines becomes a matter of competition between armed groups and is just another engine for land grabbing to the detriment of the local populations.
2) Illegal mining is also a highly disturbing economic reality
-The most prominent and tangible dimension of it is that, as much as all other component of the informal economy, it deprives the State from much needed tax revenue.
-But the economic consequences also include an equally concerning element: Illegal mining discourages legal mining by creating an unfair competition. How to attract foreign investors in the mining sector if they know in advance that there is no level playing field in this sector?
-Under this economic chapter we could also discuss the human and environmental cost of Illegal mining. Just think of the Labour conditions in illegal mines when we already know how dangerous the extractive activities are in general for the Labour force, including in the formal sector. And we could further address the damages caused to the environment by illegal mining.
3) We cannot address the challenges related to illegal mining without a reference to their political dimension, not least since we meet today in the premises of the parliament of Afghanistan.
Let me just mention what I perceive at the most prominent political impact of illegal mining.
-First it sends just anotherworrying signal regarding the capacity of the State to enforce proper rule of law in a sector which is nevertheless designated as strategic
-Second, it fuels perception of rampant corruption within the state institutions
-And third, possibly even more concerning, it therefore increases the level of distrust between the State and the ordinary citizens, deprived of jobs and incomes that a properly managed and regulated mining sector would offer them in great volumes.
2. All these factors combined give the magnitude of the threat illegal mining is globally posing to Afghanistan
It therefore calls for a strong and collective response.
In my views, this response can come from at least 3 sources:
1)First and foremost the reaction must come from the official institutions
There we perceive some encouraging signals that include the following:
-Strengthening of the Ministry of Mines and Petroleum under the guidance of a new and able Acting Minister
-Issuance of a roadmap on mining industry which announces a strategy for the mining sector that will be the basis for a new legal and regulatory framework. The Deputy Head of the EU Delegation, George Cunningham, will further address this matter during the Panel discussion.
- the Presidential determination to combat illegal mining as a matter of priority including by making proper supervision of the mining sector one of the key objectives of the about to be adopted Anti-Corruption Strategy.
This new trend for sure encourages the foreign partners of Afghanistan to join forces and contribute to the final elimination of illegal mining in this country.
2) I will speak only for the European Union but I know that our Member States and many other prominent members of the international community are absolutely on the same page.
For the EU, our approach is two-fold:
-Contributing to the strengthening of the regulatory and legal Framework through the flexible component of the State Building Contract that was signed last year in the margins of the Brussels Conference on Afghanistan. We have available funds that we can allocate to the Ministry of Mines and Petroleum to support its reform agenda.
-And a more offensive approach that would consist in encouraging European businesses of the mining sector to consider Afghanistan as a possible destination. This would be part of a broader Trade and Investment initiative that we are currently formulating. George will come back on that in his intervention.
3) And last but not least, the response should be coming from the broader local community.
Raising awareness on the scourge of illegal mining is a noble, necessary and urgent cause that should be shared throughout the civil society.
Illegal mining is an economic crime. We also count on the media, and I am glad that they are represented in large numbers, today to contribute to making the struggle against illegal mining a national priority.
In conclusion, let me just note that I would be proud if today´s deliberations could contribute, even in a modest manner to this mobilization.
In this matter also you can count on the support of the European Union. We stand by the People of Afghanistan.