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DESCRIPTION:

As part of the Silk Road Initiative for the United States Government (US State Department), a team of Geopolicity economists conducted an Economic Impact Assessment (EIA) of 15 infrastructure projects covering areas such as mining, roads, energy, transport, as well as 5 regulatory/governance reform projects in Afghanistan, identified as part of the US Government Mapping and Gapping exercise.

 

The study included full revenue potential/impact of US$28 billion investment programs, including mapping these to the MTFF/MTEF. The overarching objective of the EIA was to develop a regional assessment of the national revenue, economic and employment impacts from the completion of “hard” infrastructure priority project investments and “soft” technical advisory/regulatory reform in Afghanistan and in the Greater South and Central Asian region. In effect this meant calculation of the Rate of Return (RoR) or Return On Investment (ROI) for different projects under different financing and return scenarios, and included analysis of upstream, side-stream and downstream revenue, growth and employment linkages.

 

Geopolicity’s work, therefore, assisted in prioritizing United States government and other bilateral and multilateral investments in the Greater South and Central Asian Region, demonstrating the importance of adjustments in trade policy and procedures to effected nations, and identifying potential public-private partnerships for equity investment.

 

ACTIVITIES UNDERTAKEN:

For the US Government, an EIA method was established and an assessment of 15 plus major infrastructure were assessed on that basis, with results presented to Heads of Government in Washington DC.   The work determined the following impacts (i) regional Integration (ii) Trade Cost Reduction (iii) Road Corridor (iv) Trade Related Income and (v) Trade Creation and Network Externalities.

 

OUTCOME:

A full EIA presented to Executive Heads of State and endorsed as the economic justification for US$28 billion in investment support.   

 

PROJECT DETAILS:

COUNTRY:

 

CLIENT:

YEAR:

VALUE:

SERVICES:

SECTOR: 

Afghanistan

 

United States Government / SAIC

2011

 

$253,000

 

Consulting

Trade

Economic and Environmental Impact Assessment

US Government Silk Road Initiative

"Geopolicity's lead contribution in the design of six National Priority Economic and Infrastructure Development Programs, presented to a Foreign Minister's meeting was recognized with high appreciation by the Government and its international partners.”

Dr. Richard Ponzio, Director of Global Governance, The Hague Institute. Former Advisor to US Secretary of State.