High levels of cultivation this year meant the estimated opium production soared 43 per cent to 4,800 tons, a UN Office on Drugs and Crime report said. Noorullah Shirzada/AFP
High levels of cultivation this year meant the estimated opium production soared 43 per cent to 4,800 tons, a UN Office on Drugs and Crime report said. Noorullah Shirzada/AFP
High levels of cultivation this year meant the estimated opium production soared 43 per cent to 4,800 tons, a UN Office on Drugs and Crime report said. Noorullah Shirzada/AFP
High levels of cultivation this year meant the estimated opium production soared 43 per cent to 4,800 tons, a UN Office on Drugs and Crime report said. Noorullah Shirzada/AFP

Afghan opium cultivation skyrockets as eradication plunges


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KABUL // Afghanistan saw a 10 per cent jump in opium cultivation this year, highlighting bumper harvests due to a collapse of eradication efforts amid growing insecurity and declining international counter-narcotics assistance, the UN said on Sunday.

Cultivation dropped last year due to drought conditions but it has been on the rise in the past decade, fuelling the Taliban insurgency and spurring a growing crisis of drug addiction despite costly US-led counter-narcotics programmes.

High levels of cultivation this year meant the estimated opium production soared 43 per cent to 4,800 tons, a UN Office on Drugs and Crime (UNODC) report said, highlighting a “worrying reversal” in efforts to combat the scourge of drugs.

“The cultivation has increased by 10 per cent this year compared to the same time in 2015 – from 183,000 hectares to 201,000 hectares,” counter-narcotics minister Salamat Azimi said.

Eradication efforts appeared to have collapsed. A total of 355 hectares of poppy eradication was carried out this year, a 91 per cent plunge from 2015.

“In 2016, farmers’ resistance against poppy eradication operations was occasionally expressed through direct attacks on eradication teams,” the UN report said.

“No eradication took place in the provinces with high levels of opium poppy cultivation due to the extremely poor security situation in those areas and logistical/financial challenges to organise the eradication teams on time.”

Afghanistan saw a drop in opium cultivation last year for the first time since 2009, a UN report said, citing drought conditions as a key reason for the decline. But that was seen as a temporary blip.

Addiction levels have also risen sharply – from almost nothing under the 1996-2001 Taliban regime – giving rise to a new generation of addicts since the 2001 US-led invasion of Afghanistan.

“We explain to the international community that now is the time to increase support for counter-narcotics in Afghanistan,” said UNODC chief Andrey Avetisyan.

“Ninety-three per cent of the cultivation has taken place in the southern, eastern and western parts of the country.”

Officials cited favourable weather conditions, rising insecurity and falling international donor support as the main reasons for the increase in cultivation in Afghanistan, the world’s leading producer of opium.

The southern restive province of Helmand remained the country’s top poppy cultivating province, followed by Badghis, Kandahar, Uruzgan, Nangarhar and Farah – all hotbeds of insurgent activity.

“I believe with the existing equipment, facilities and civilian task force, we cannot fight the cultivation of poppy in insecure areas,” said Baz Mohammad Ahmadi, deputy minister of interior for counter narcotics.

“The challenges of deteriorating security in different parts of the country took away the opportunities to destroy poppy farms.”

Poppy farmers in Afghanistan are often taxed by the Taliban, who use the cash to help fund their insurgency against government and Nato forces.

“Most of the conflicts in Afghanistan are financed by income from poppy. Anywhere you see poppy in Afghanistan you see fighting there,” said Mr Ahmadi.

International donors have splurged billions of dollars on counter-narcotics efforts in Afghanistan over the past decade, including efforts encouraging farmers to switch to other cash crops such as saffron. But those efforts have shown little results.

* Agence France-Presse

War and the virus
The Details

Kabir Singh

Produced by: Cinestaan Studios, T-Series

Directed by: Sandeep Reddy Vanga

Starring: Shahid Kapoor, Kiara Advani, Suresh Oberoi, Soham Majumdar, Arjun Pahwa

Rating: 2.5/5 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Guide to intelligent investing
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2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, Leon.

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

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Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

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