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CORRUPTION IN CONFLICT

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BOX 2: ABSORPTIVE CAPACITY<br />

In the development community, the concept of “absorptive capacity” generally<br />

refers to the “amount and form of international aid and attention that recipient<br />

institutions and societies can receive without suffering significant social,<br />

economic, or political disruptions.” 330 In other words, “absorptive capacity sets<br />

limits on the productive potential of aid.” 331 Scholar Robert Lamb describes a<br />

useful metaphor for understanding the concept:<br />

Place a dry sponge on a dry table and pour water onto the sponge<br />

from a pitcher. Pour too much water and the table gets wet after<br />

the sponge reaches capacity; pour too little water and the sponge<br />

does not consume as much water as it could; pour too quickly and<br />

the table gets wet even before the sponge reaches capacity. Some<br />

sponges absorb more water than others; a dry sponge absorbs<br />

water less quickly than does a damp sponge. Most sponges get<br />

larger as they absorb the water. All have limits to the quantity and<br />

rate of absorption. 332<br />

Afghanistan’s ability to absorb and effectively use assistance funds has been<br />

a significant concern in the debate over the scale and rate of reconstruction<br />

assistance. 333 In Afghanistan, spillover from more than $100 billion in<br />

reconstruction assistance contributed to pervasive corruption, illicit activity, and<br />

other adverse effects that distorted economic norms and undermined state<br />

legitimacy. 334 Integrity Watch Afghanistan founder and former director Lorenzo<br />

Delesgues stressed that “staying within absorption limits is Development 101.” 335<br />

120%<br />

FIGURE 4:<br />

U.S. Appropriated Reconstruction Funding for Afghanistan Shown<br />

as a Percentage of Afghan GDP<br />

120%<br />

100%<br />

100%<br />

80%<br />

80%<br />

60%<br />

60%<br />

40%<br />

20%<br />

TYPICAL PO<strong>IN</strong>T OF AID SATURATION<br />

40%<br />

20%<br />

0%<br />

2002<br />

2003<br />

2004<br />

2005<br />

2006<br />

2007<br />

2008<br />

2009<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

0%<br />

Note: The aid saturation point is the theoretical point at which a state has reached its capacity<br />

for absorbing aid. Aid provided beyond that point may be counterproductive. The red line shows<br />

U.S. reconstruction funding as a percentage of Afghan GDP over time (see figure 3, p. 18). The<br />

grey area reflects the generally accepted range of aid saturation, typically 15 to 45% of GDP (see<br />

endnote 339).<br />

Source: SIGAR Lessons Learned Program analysis of: SIGAR, Quarterly Report to the United States<br />

Congress, January 30, 2016, p. 187; SIGAR, Quarterly Report to the United States Congress,<br />

October 30, 2014, pp. 202–203; World Bank, World Development Indicators: GDP at market prices<br />

(current U.S. dollars), World Bank Databank, accessed July 12, 2016.<br />

SIGAR I <strong>CORRUPTION</strong> <strong>IN</strong> <strong>IN</strong> <strong>CONFLICT</strong> I I SEPTEMBER 2016 2016<br />

51

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