Feb 10 2:18 PM

Afghanistan’s war economy: Will USAID help?

Members of an Afghan family warm themselves around a traditional sandali stove in Herat, Feb. 7, 2014. As winter sets in across Central Asia, many Afghans struggle to provide adequate food and shelter for their families.
Aref Karimi/AFP/Getty Images

President Barack Obama and his administration are hoping a new aid package will help pull Afghanistan out of its war economy. On Monday the U.S. Agency for International Development, or USAID, promised nearly $300 million to rebuilding the country, war torn for the past 12 years.

The new aid package will include $125 million in food and farming stimulus, a foundation in the country's economy. An additional $77 million in trade and tax aid will go toward expanding trade to international markets and improve the tax-collection system. And $92 million will be invested in improving education, helping fund 10 Afghan universities and partner them with three schools in the United States. 

Monday's announcement comes as the U.S. continues to pressure Afghan President Hamid Karzai to sign the U.S.-Afghan bilateral security agreement, or BSA. The pact would solidify the conditions for U.S. involvement in the country after troops leave, including police training and counterterrorism work. The BSA got the approval of the country's loya jirga, or council of elders, last year. Karzai has not signed it.

"Afghanistan will never sign the security agreement under pressure," said Karzai. "No pressure, no threat, no psychological operation against our people can force us to sign the security agreement. If foreigners want to leave, they should leave today."

Afghanistan's Foreign Minister Zarar Ahmad Osmani said over the weekend that he hoped the deal would be signed soon. 

"We support the document," he said. "We are hopeful that this document gets signed as soon as possible, and the people of Afghanistan also support this security agreement."

USAID pledges nearly $300 million to Afghanistan to help pull it out of its war economy.

In his State of the Union address last month, Obama reiterated the importance of this BSA, saying, "If the Afghan government signs a security agreement that we have negotiated, a small force of Americans could remain in Afghanistan." 

On Capitol Hill, there is a growing frustration with Karzai and his government. 

Sen. Jeff Merkley, D-Ore., said that before the U.S. commits to staying in Afghanistan after 2014, Congress should have a say. "Automatic renewal is fine for Netflix and gym memberships," he said. "But it isn't the right approach when it comes to war."

Sen. Mike Lee, R-Utah, agreed. "The decision to sacrifice American blood and treasure in this conflict should not be made by the White House and the Pentagon alone," he said.

As NATO and U.S. forces look toward drawing down, Afghan civilians and the United Nations say the country remains a very dangerous place.

"Civilian causalities in Afghanistan's armed conflict increased by 14% in 2013. We documented 8,615 civilian casualties," said Jan Kabis, U.N. special representative to Afghanistan.

Taliban insurgents and other militants are stepping up attacks around the country, seeking to shake confidence in the government before April's elections.

Can USAID's $300 million help Afghanistan out of its war economy?

What's the role of corruption in the U.S.-Afghanistan relationship?

Will Karzai sign the BSA? If he doesn't, what will that jeopardize? 

We consulted a panel of experts for the Inside Story.

This panel was assembled for the broadcast of “Inside Story.” 

For future hard-hitting conversations, find Al Jazeera America on your TV.

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