Secretary's Speech

U.S. Commerce Secretary Carlos M. Gutierrez Remarks to Afghan American Chamber of Commerce Business Matchmaking Conference
Washington, D.C.

Afghanistan is rebuilding after decades of conflict. It is making the transition to a free market economy. This matchmaking conference is an opportunity to become partners in this noble endeavor.

A number of industry sectors are represented here. They range from energy to agriculture. All are building blocks for a peaceful, stable and prosperous nation.

For too many years under the Taliban, the Afghan people suffered hunger, fear and oppression. They were denied basic human and democratic rights. Now, they have emerged from the shadows of those dark days. They are intent on creating a civil society based on the will of the people, a society that promises hope and opportunity for their children. This is no easy undertaking.

But I saw the courage of the Afghan people when I was there in February. And I met with Afghan government leaders who are working to provide basic services. At the same time, they are aggressively working to create an attractive environment for entrepreneurship and investment.

President Bush's message then and now is the United States stands shoulder to shoulder with the people of Afghanistan. We are committed to Afghanistan's long-term success and to helping Afghanistan rebuild its private sector. And we applaud the progress that Afghanistan is making despite the challenges and the setbacks.

In April, 2004 President Hamid Karzai declared Afghanistan "open for business." Economic growth has been dramatic.

The International Monetary Fund estimates annual growth in Afghanistan's 2004/2005 fiscal year at 7.5 percent, and at 14 percent growth in FY 2005/2006.

Last year, foreign investment rose 35 percent to over $400 million. That may be a modest sum by global standards, but it's significant to the Afghan people and to future economic development.

Afghanistan also has a new constitution. In 2005, it held presidential and legislative elections. And the creation of an impartial, respected court system gives confidence that Afghanistan is becoming a nation ruled by laws, not by the force of arms.

No formal banking system existed in 2001. Now there is an independent Central Bank with 32 computerized provincial branches processing inter-bank payments.

There are improvements in the physical infrastructure, which had been largely destroyed. For example, the amount of paved roads has gone from 50 kilometers in 2001 to over 8,200 kilometers.

Traffic is moving faster. Before the road work, average speed on over 70 percent of existing roads was 20 kilometers per hour. It's now increased three fold. News reports tell us there are some 400,000 vehicles driving on those roads, up from fewer than 1,000 under the Taliban.

And important indicators of life getting better for the Afghan people are these statistics:

• 80 percent now have access to healthcare--10 times more than 2001.
• More than five million students are enrolled in schools, a five-fold increase over 2001. And 34 percent of these are girls, higher than at any time in Afghanistan's history.
• Since 1999, the percentage of Afghans enrolled in primary school is up from 25 percent to 93 percent, according to a recent Christian Science Monitor news report.
• Of the estimated 4 million refugees in October 2001, 2.3 million have returned.

When I was in Afghanistan, and again recently when President Karzai was here, we discussed how U.S. companies could play a greater role in the rebuilding process. Our commercial relationship is already expanding:

• Last year, our two-way trade reached $330 million--43 percent more than the previous year.
• And for the first eight months of this year, our bilateral trade is more than $280 million, a 54 percent increase over the same period in 2005.
• Additionally, more than 70 American companies have registered with the Afghan Investment Support Agency since 2003, representing $75 million in potential investment.

In my meetings with President Karzai, we also talked about some of Afghanistan's growing industries.

In July, I had the opportunity to meet with an Afghan rug delegation that was visiting the United States to cultivate long-term trade opportunities.

Afghan exports of fruits and nuts were $113 million last year. However, a federal study (USAID) estimates that this could increase to over $800 million in 10 years with the proper amount of investment.

That same study concluded that marble exports, now under $1 million, could grow to a $450-million export industry.

At this matchmaker conference, both Afghan and American firms can find new opportunities to build your businesses. Afghan firms offer commitment, hard work and access to Afghanistan's resources, while American firms offer advanced technologies, management and capital.

We can then work together to contribute to the growth and stability of Afghanistan, and to strengthen the U.S. and Afghan economy. The U.S. government is your partner in this important effort.

I encourage you to visit our Commerce Department Web site with its link to our Afghanistan Investment and Reconstruction Task Force for more information.

We recognize that sustainable development is a process. The people of Afghanistan have suffered for a long time, but that is all in the past. We are now embarking together on a promising future.

Though there is much that needs to be done, the foundations have been laid. Change is already happening. The economy is growing, and most are optimistic about the future.

Economic partnerships, such as can result from meetings like this, can help make that future of hope and opportunity a reality.

My congratulations again to the U.S.-Afghanistan Chamber of Commerce and to all of you for being here.

Thank you, and best wishes for a most successful meeting.

Salaam Alaikum (Peace be upon you).