1. Compounding Uncertainty in Afghanistan: Economic Consequences of Delay in Signing the Bilateral Security Agreement
- Author:
- Casey Garret Johnson, William A. Byrd, and Sanaullah Tasal
- Publication Date:
- 02-2014
- Content Type:
- Policy Brief
- Institution:
- United States Institute of Peace
- Abstract:
- The still unsigned Bilateral Security Agreement (BSA) between Afghanistan and the United States provides the legal basis for continuing U.S. military presence in Afghanistan. In addition to its substantive importance, the BSA is also a confidence-building mechanism. The delay in putting it in place is compounding uncertainty and further diminishing economic confidence during Afghanistan's already challenging and uncertain transition. Afghans' responses include, among others, hedging behavior (legal and illegal), personal decisions on whether to come back to or stay in Afghanistan, delays in investments, incipient job losses, declining demand for goods and services and real estate prices, and farmers planting more opium poppy.
- Topic:
- Defense Policy, Democratization, Development, Treaties and Agreements, Insurgency, and Bilateral Relations
- Political Geography:
- Afghanistan, United States, and Asia