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Summary:
Opium poppy cultivation and drug trafficking have become significant negative factors in Afghanistan's fragile political and economic order over the last 25 years. Afghan, U.S., and coalition efforts to provide viable economic alternatives to poppy cultivation and to disrupt corruption and narco-terrorist linkages succeeded in reducing opium poppy cultivation in some areas during 2004 and 2005. However, escalating violence, particularly in Helmand, and widespread corruption fueled a surge in cultivation in 2006 and 2007, pushing opium output to all-time highs. Cultivation has decreased in north-central Afghanistan and skyrocketed in the southwest. In spite of ongoing efforts by the Afghan government, the United States, and their partners, Afghanistan is now the source of 93% of the world's illicit opium. Across Afghanistan, militia commanders, criminal organizations, and corrupt officials have exploited narcotics as a reliable source of revenue and patronage, which has perpetuated the threat these groups pose to the country's fragile internal security and the legitimacy of its embryonic democratic government. U.N. officials estimated that in-country illicit revenue from the 2006 opium poppy crop reached over $3 billion, sustaining fears that Afghanistan's economic recovery continues to be underwritten by drug profits. The trafficking of Afghan drugs also appears to provide financial and logistical support to a range of extremist groups that continue to operate in and around Afghanistan, including the resurgent remnants of the Taliban and some Al Qaeda operatives. Although coalition forces may be less frequently relying on figures involved with narcotics for intelligence and security support, many observers have warned that drug-related corruption among appointed and elected Afghan officials may create new political obstacles to further progress. President Bush personally stated in February 2007 that narcotics are "a direct threat to a free future for Afghanistan" and warned that, "the Taliban uses drug money to buy weapons ... and they pay Afghans to take up arms against the government." Afghan president Hamid Karzai has identified the opium economy as "the single greatest challenge to the long- term security, development, and effective governance of Afghanistan." In August 2007, the Administration unveiled plans to strengthen counternarcotics efforts through a renewed focus on promoting rural development, coordinating counterinsurgency and counternarcotics, and building political will. Members of the 110th Congress may be asked to consider options for further strengthening counternarcotics efforts. The Administration has requested $1.54 billion in regular and supplemental counternarcotics assistance and related defense funding for Afghanistan and surrounding countries for FY2007 and FY2008. In addition to describing the structure of the Afghan narcotics trade, this report provides current statistical information, profiles the narcotics trade's participants, explores narco-terrorist linkages, and reviews U.S. and international policy responses since late 2001. The report also considers current policy debates regarding the counternarcotics roles of the U.S. military, poppy eradication, alternative livelihoods, and funding issues for Congress. The report will be updated to reflect major developments. For more information on Afghanistan, see CRS Report RL30588, Afghanistan: Post-War Governance, Security, and U.S. Policy, by Kenneth Katzman.
