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Afghanistan's economy is dependent on economic aid

Afghanistan's economy is dependent on economic aid. The government can no longer hope for financial aid from abroad either.

Afghanistan's economy is dependent on economic aid
Yazar: Tom Roberts

Yayınlanma: 19 Ağustos 2021 01:34

Güncellenme: 17 Kasım 2024 18:39

Afghanistan's economy is dependent on economic aid

Afghanistan's economy is fragile and the country is dependent on economic aid. This is a summary of what the World Bank wrote about Afghanistan a few months ago. There is no private sector worth mentioning, most people work in less productive agriculture. There are hardly any state institutions that could promote the expansion of an economy - and when they do, their activity is concentrated in the metropolitan areas around the large cities such as Kabul or Mazar-e Sharif. In the World Bank's gross domestic per capita ranking, the country was ranked 173 out of 190. That was in 2020. Now the situation in Afghanistan has changed again and, above all, dramatically. With the withdrawal of international troops and the conquest of Kabul by the Taliban, chaos broke out in the already fragile country. People try to flee, dramatic scenes take place on the tarmac at the airport of the capital. The US military is evacuating its people. And the Bundeswehr is also on site with transport machines. Amid the apparent chaos caused by the government's flight, it is now emerging that the country's economy could also be dragged further into a downward spiral. Last week the US stopped its dollar deliveries to the central bank - since then, the country's currency, the afghani, has been trapped in a downward trend. Overall, the value is 1.7 percent lower against the US dollar.
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