The Taliban in Afghanistan are running a sophisticated financial network to pay for their insurgent operations, raising hundreds of millions of dollars from the illicit drug trade, kidnappings, extortion and foreign donations that American officials say they are struggling to cut off.
In Afghanistan, the Taliban have imposed an elaborate system to tax the cultivation, processing and shipment of opium, as well as other crops like wheat grown in the territory they control, American and Afghan officials say. In the Middle East, Taliban leaders have sent fund-raisers to Arab countries to keep the insurgency’s coffers brimming with cash.
Estimates of the Taliban’s annual revenue vary widely. Proceeds from the illicit drug trade alone range from $70 million to $400 million a year, according to Pentagon and United Nations officials. By diversifying their revenue stream beyond opium, the Taliban are frustrating American and NATO efforts to weaken the insurgency by cutting off its economic lifelines, the officials say.
Despite efforts by the United States and its allies in the last year to cripple the Taliban’s financing, using the military and intelligence, American officials acknowledge they barely made a dent.
“I don’t believe we can significantly alter their effectiveness by cutting off their money right now,” said Representative Adam Smith, a Washington State Democrat on the House Intelligence and Armed Services Committees who traveled to Afghanistan and Pakistan last month. “I’m not saying we shouldn’t try. It’s just bigger and more complex than we can effectively stop.”
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