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Afghanistan Reconnected Advocacy and Outreach Mission to India New Delhi, June 14-16, 2015

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The visiting delegation of senior political and business leaders from Afghanistan,

Pakistan and India met with high-level representatives of the Indian government and practitioners from the private sector engaged in business with Afghanistan.

Following the visit to Islamabad, Pakistan, last March, the Advocacy and Outreach Mission to India was a critical step in EWI’s Afghanistan Reconnected Process. Since 2012, the process focuses on promoting the win-win potential of enhanced regional economic and political cooperation both for post-2014 Afghanistan and its neighbors. As an economic giant and a major regional power, India has a clear stake in the integration of Afghanistan and Greater Central Asia in international trade and transit routes, as well as an interest in the stability of Afghanistan.

The public opening session at the Federation of Indian Chambers of Commerce and Industry (FICCI) was honored by the presence of representatives from diplomatic corps and media. Sayed M.

In partnership with the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Observer Research Foundation (ORF), the EastWest Institute conducted an Advocacy and Outreach Mission to India, to share and develop the messages developed through its Afghanistan Reconnected Process.

Businesses Take Action to Unlock Trade in the Region

Ahmadi, Economic Counsellor at the Embassy of Afghanistan in New Delhi, highlighted the various business opportunities that Afghanistan offers in various sectors, including transportation, infrastructure and mining. While the lack of infrastructure and skill development pose critical obstacles to the process of rebuilding Afghanistan, the current government is working towards resolving those issues, and assures a safe, secure and transparent framework for the promotion of foreign investments in the country. Jayant Prasad, former Indian Ambassador to Afghanistan and Nepal, and Vikram Sood, Advisor at ORF and former Chief of the

India has been developing a partnership with Afghanistan, and supported the country in the construction of infrastructure and by providing humanitarian assistance.

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Research and Analysis Wing (RAW) pointed out that India has been developing a partnership with Afghanistan, and supported the country in the construction of infrastructure and by providing humanitarian assistance. Both speakers underlined India’s interest in a secure and stable Afghanistan and the eagerness of the Indian market to absorb Afghan exports.

Enhanced people-to-people connectivity in the region was identified as crucial for better cooperation in the fields of trade, transit and energy. As Afghanistan’s immediate needs lie in the fields of skills development and capital investment, India welcomes further

investment from China and other actors in Afghanistan, recognizing that both the burden and the opportunities of reconnecting Afghanistan should be shared and that success will be achieved through cooperation, persistence and perseverance. All speakers acknowledged the enormous challenges that the Afghan government itself is faced with to improve the rule of law and the taxation system as enablers for foreign investment and accelerated economic development.

The public opening session was followed by a closed-door workshop where delegation members reviewed the progress

Enhanced people-to-people connectivity in the region was identified as crucial for better cooperation in the fields of trade, transit and energy.

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of the Afghanistan Reconnected Process since its inception in 2012. Recognizing the challenges entailed by the ISAF withdrawal for the region as a whole, as well as the interdependence of security and development, participants have sought to determine and promote opportunities for economic growth both in Afghanistan and in the region. In its current phase, “Businesses Take Action to Unlock Trade in the Region,” the Afghanistan Reconnected Process aims to build sustainable partnerships between the public and private sector in Greater Central Asia. This goal is based on the conviction that the private sector can play a major role in helping to shape public policy in areas such as trade and economy, while concerned governments have the ability to create an enabling regulatory framework for entrepreneurship and economic cooperation to develop.

A roundtable discussion held at the Observer Research Foundation (ORF) focused on identifying security and connectivity trends across Greater Central Asia. A fundamental shift in regional dynamics highlighted by participants was the growing economic interest of China in Pakistan. According to Indian analysts, Pakistan can play a fundamental role in the region and in Afghanistan in particular. However, the full potential of commerce with and through the country cannot be developed without increased connectivity via rail and road, and not only for goods but also for water, power and financial transactions. India’s President Modi is focusing strongly on establishing greater connectivity across Greater Central Asia, for instance by carrying out visits to the Central Asian Republics, on which the Indian government has focused less over the last 20 years. India is also developing friendlier ties with Afghanistan, and looks positively at the performance of Afghan Police

Private sector can play a major role in helping to shape public policy in areas such as trade and economy, while concerned governments have the ability to create an enabling regulatory framework for entrepreneurship and economic cooperation to develop.

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Forces in dealing with the post-2014 transition, despite a notable lack of equipment.

Positive views on the potential of the region were shared, singling out the Turkmenistan-Afghanistan-Pakistan-India Natural Gas Pipeline Project (TAPI) as a symbol of effective regional connectivity. The recent rapprochement between Pakistan and Afghanistan nourishes hope for both countries to work more closely together in countering violent extremism and stabilizing the border areas.

Asked about the implementation of TAPI, Minister of State for Petroleum and Natural Gas H.E. Dharmendra Pradhan assured the delegation that there were no political obstacles between participating governments, with the remaining challenges mainly in the fields of the consortium structure, the financing and not least the security on the ground. The delegation drew the Minister of State’s attention

to the opportunities of natural gas exploitation against the background that Afghanistan had been an exporter of gas to the former Soviet Union and even possessed processing plants producing fertilizer. Pradhan showed great interest in this regard and announced that he would examine—in coordination with the competent Afghan and Indian authorities—the possibility of undertaking gas exploration in Afghanistan.

During a session with members of India’s private sector, the needs of businesses engaged in Afghanistan were on top of the agenda. In addition to the lack of security and the resulting impediments to effective logistics, shortcomings in the banking sector were addressed. In fact, despite the presence of significant currency reserves, the underdeveloped Afghan credit sector, insurance and guarantee systems are limiting the prospects for development of the country’s businesses. Innovative solutions to increase Afghanistan’s prosperity were brought to the table, for instance suggesting the reliance on e-commerce to export Afghan brand goods, such as dried fruits, thus minimizing the risk of conducting the entirety of a company’s operations in Afghanistan. In addition, train-the-trainer programs to build the skills needed in the job market were recommended as a solution to overcome inconvenient work visa requirements as well as security risks for foreign specialized professionals. Moreover, participants agreed that India’s involvement could increasingly focus on supporting the development of small and medium sized enterprises, drawing from India’s own extensive experience in this regard. Opportunities were seen in the fields of health, banking, insurance, natural gas, mining, agriculture and education.

Innovative solutions to increase Afghanistan’s prosperity were brought to the table, for instance suggesting the reliance on e-commerce to export Afghan brand goods, such as dried fruits, thus minimizing the risk of conducting the entirety of a company’s operations in Afghanistan. In addition, train-the-trainer programs to build the skills needed in the job market were recommended as a solution to overcome inconvenient work visa requirements as well as security risks for foreign specialized professionals.

Find more pictures from our outreach missions at: www.flickr.com/photos/ewinstitute

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Addressing participants’ concerns regarding the development of the Trans-Asia Railway and Highway Network, Minister of State for Road Transport and Shipping, H.E. Pon Radhakrishnan, confirmed India’s interest in strengthening road connectivity in the region. The signing on June 15 of the Bangladesh, Bhutan, India and Nepal (BBIN) Motor Vehicle Agreement confirms India’s interest in developing road transport through the region, and could be extended to include Pakistan. India is committed to the development of good neighborly relations, and is willing to assist other countries, such as Afghanistan, in the development of their road infrastructure, which is especially poor in rural areas. However, as a matter of foreign assistance, the development of such a project is subject to approval by the Ministry of External Affairs. Joint Secretary Rohit Kumar Singh shared his Ministry’s commitment to public-private partnerships (PPPs) as a means to develop infrastructure

projects. The PPP models utilized for road development in India have received acknowledgements at a global level for their effectiveness, and could be extended to projects carried out in support of Afghanistan’s infrastructure. Finally, Singh discarded the rumor that India’s investment in the expansion of the Iranian port of Chabhahar is aimed at supporting trade between India and Afghanistan, while bypassing Pakistan.

In addition to advocacy meetings with pertinent line ministries, EWI’s President-elect Ambassador Cameron Munter, had private meetings with both the Foreign Secretary, H.E. S. Jaishankar, and the National Security Advisor, Ajit Kumar Doval, to exchange views on security and foreign policy issues in the region and their impact on cross-border cooperation.

The Indian interlocutors were provided with an advocacy paper summarizing the delegation’s suggestions for long- and short-

The PPP models utilized for road development in India have received acknowledgements at a global level for their effectiveness, and could be extended to projects carried out in support of Afghanistan’s infrastructure.

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term measures to make the region more secure and prosperous while developing its resources and skills in the spirit of cooperation. The full version of the advocacy paper can be downloaded on the EWI website.

A central theme in all deliberations was the need to improve connectivity in the region in various fields such as transport, energy and trade. Indeed, since the beginning of the Afghanistan Reconnected Process, substantial progress can be noted in some areas. Cross-border trade between Afghanistan and Pakistan has been eased to a great extent by a variety of measures, such as issuing 6 months visa for businessmen, acceleration of custom procedures, simplified handling of containers from Kabul to the Karachi seaport, free movement of Pakistani trucks in Afghanistan, among others. On the other hand, much remains to be achieved, such as the facilitation of transit for Afghan trucks through Pakistan to India, as well as the creation of joint ventures to implement infrastructure and water cooperation projects.

Through the Afghanistan Reconnected Process, EWI has established a network of high-level representatives from governments, parliaments, and the private sector from Afghanistan, Iran, India, Pakistan, Uzbekistan, Tajikistan, Kyrgyzstan, Turkmenistan, Kazakhstan, China, the U.A.E., the U.S., and Europe, as well as from regional and international organizations. The group of eminent experts has been meeting since 2013 in Istanbul, Islamabad, New Delhi and Berlin to determine and promote opportunities for economic growth both in Afghanistan and in the region, complementing the “Heart of Asia-” or “Istanbul Process”. The Afghanistan Reconnected Process is also known under the name of “Abu Dhabi Process” and is co-financed by the Governments of Abu Dhabi and Germany. Next steps in the Process include advocacy and outreach missions to Dushanbe, Tajikistan, and Kabul, Afghanistan in late 2015.

Through the Afghanistan Reconnected Process, EWI has established a network of high-level representatives from governments, parliaments, and the private sector from Afghanistan, Iran, India, Pakistan, Uzbekistan, Tajikistan, Kyrgyzstan, Turkmenistan, Kazakhstan, China, the U.A.E., the U.S., and Europe, as well as from regional and international organizations.

Learn more about Afghanistan Reconnected at: www.ewi.info/department/regional-security

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