Hi Oiluj13,
As you mentioned, there was quite a lot of discussion in the past about these objects. Various ideas have been proposed about the Lohar Axe and its purpose. No clear consensus, or really any evidence, has emerged regarding function. I think we can say that the non-folding version preceded the folding one, but there is no evidence to my knowledge that the older form was produced before the last half of the 19th C, with the folding form appearing around 1900 or a bit earlier. There has been a suggestion that the folding form was based on a French design of a folding knife.
Absent a defined function for these items within the local culture, it is tempting to label them as "decorative." This is perhaps especially true of the folding forms, which may well have been made for sale to those who travel (like your brother). British travelers of the late 19th/early 20th C liked these exotic-looking items.
The materials in your brother's example and the non-traditional designs on the blade suggest fairly recent manufacture, perhaps following the Russian invasion in 1979, aimed at sales to foreigners. The later U.S. incursion would have provided another market for them.
These items are not ranked highly among collectible ethnographic weapons and are usually inexpensive by today's standards. Some of the decorative features may be traditional local designs, and therefore works of some local relevance, but so far nobody has identified them as such.
There is more work to be done in defining what role, if any, these axes may have had in the local culture.
Regards, Ian.
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