The economic condition of Afghanistan

The economic condition of Afghanistan has been deteriorating since the Soviet invasion in 1979. The limited infrastructure of the country was destroyed and also interfered enormously in the patterns of economic activity. What adds on is the drought which hampered the only livelihood of the people- agriculture. In the past, the economy of the country has changed from traditional to centrally planned economy and after 2002; it was replaced by free market economy. The country is now only living on the international aid provided to them. The reason behind such economic depletion is not only the severe climatic conditions but also due to civil wars and invasions.

The only source of income for the Afghanis is agriculture as the country is known for some of its finest fruits, especially apricots, grapes, pomegranates, melons and mulberry. Wheat and cereal production is the country’s traditional agricultural mainstay. But the production has declined over the years due to instability. Even though the country has plenty of water reserves and the climatic conditions are suitable for fish farming, due to wars, the country’s water resources have majorly fallen and now Afghanistan faces acute problem of water even for drinking purposes.

Afghanistan was once known for its timber, but due to the depletion of forest, now this source of income has also stepped back. A report shows that since 1980, only 3% of the land has been forested. The natural forests in the country are mainly of two types- oak and walnut and the country is known for its dry fruits. Roundwood is also produced in the country, 40% of which is used as fuel. Forest fires, increasing number of pests and plant diseases are some of the nature’s curses to Afghanistan that has wiped out the economy of the country. Afghanistan is also endowed with a wealth of natural resources. these include deposits of naturalgas, petroleum, coal, gold, copper, iron ore, salt etc; precious and semi-precious stones.

The economy turned a new leaf in the mid 1990’s when the waste and depleted area was being used for agriculture. But soon the Taliban took over and today 90% of the country is owned by them. and then in recent years it was struck by severe drought in 1999 until today. As a result large and increasing numbers of people have lost their means of livelihood. Afghanistan’s economic situation has significant regional spill-over effects through unofficial trade, narcotics, terrorism and extremism and financial flow thus forcing the economy to completely collapse.