The Economy of Afghanistan

The economy of Afghanistan has significantly enhanced since the decline of the Taliban in 2001 due to the infusion of international assistance, the recovery of the agricultural sector, and service sector growth. Regardless of the progress of the past few years, this country is extremely poverty stricken, highly dependent on foreign aid, and landlocked. A lot of the population continues to suffer from shortages of jobs, clean water, electricity, medical care, and housing. Offences, insecurity, lack of infrastructure, and the Afghan Government's difficulty in extending rule of law to all parts of the country produces obstacles to the future economic growth of Afghanistan. Afghanistan's living standards are among the lowest in the world.

Afghanistan has a steady interest rate of 15%. Although it may be steady, 15% is a too high of an interest rate and makes it nearly impossible to afford loans to start up companies, hurting the entrepreneurship of Afghanistan. Additionally, funding for companies is difficult. Departments like Research and Development are underfunded, and higher paying jobs are not common. Pair that with the fact that 28% (72% literacy rate) of the country is illiterate and that the country ranks 177th in education, business creativity struggles. Companies can’t expand. The CPI displays a 7.4% change in inflation from last year. This CPI trend is very volatile and very dangerous. There is no stability. The high interest rates, literacy rate, and volatile inflation rates damage entrepreneurship and competitive markets. Application of regulations has been inconsistent and non-transparent. The World Heritage Foundation says: On average, launching a business requires four procedures, but obtaining necessary permits can ta...

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... corrupted government so a full 10 years will hopefully be enough to completely cleanse their government. But in the future Afghanistan will thrive with the help of a strong government. The best outcome of my prescribed treatment will be a strong government. I say this because the government affects all of the pillars of capitalism (rule of law, property rights, entrepreneurship, and competitive markets).

Additionally, I do not see 10 years as enough time for Afghanistan end its reliance on foreign countries to help stabilize the economy. It will need to be gradually eased to where it can thrive without overly relying on countries.

The citizens of Afghanistan need to stay patient with their government and not abandon their country. In order for this country to completely heal both the government and the people have to come together and trust each other.