Located in Kabul, Afghanistan, CAPS is an independent, research centre that strives to conduct action-oriented research which will influence policy-makers. It works diligently towards building local capacity to produce conflict and threat assessments that will influence the safety and security of the people serving the governments, and international aid organizations.
Oct 27, 2011
Opportunities for Economic Growth in Afghanistan
By Abdullah Sarwary
Economically speaking, Afghanistan is a weak state. The 2011 Ease of Doing Business Report by the World Bank ranked Afghanistan one of the most difficult countries (167 out of 183) in which to do business. Also according to the World Bank, 97% of Afghan Gross Domestic Product (GDP) is supported by foreign aid, while 42% of the Afghan population is living below the poverty line. Afghanistan has received approximately $60 billion of official development assistance from the International Community (IC) since 2001. But due to a variety of reasons including corruption at all levels of the Afghan government and fiscal mismanagement, Afghanistan has not developed a sustainable domestic economy. While the above paints a bleak picture of the present Afghan economy, there are still several domestic opportunities that can contribute to long-term economic and political stability in the country. This article discusses a few of those opportunities, concluding that Afghanistan’s economy does have potential, however, that potential is unlikely to be fully realized unless the political ramifications of further development are mitigated.
(Full Article,file type (Pdf) 176 kb )
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