Editor in Chief: Moh. Reza Huwaida Monday, July 23rd, 2018

With the Int’l Community Withdrawing, Funds Will Also Dry Up

As we are moving ahead in Afghanistan, things seem to be getting worse rather than going towards betterment. What will be the fate of security and economy of Afghanistan after the withdrawal of international community is still quite vague. Security – as our past experience shows – will definitely deteriorate. At the same time one can not be optimistic about economic stability of Afghanistan after the international community withdraws. The Western allies of Afghanistan including US and UK do not know the exact economic package they would have for Afghanistan after the year 2014. It is generally assumed that with troops going out, the foreign economic assistance would also dry up to a great extent pushing Afghanistan into a harsh economic condition.

The post-2014 economic situation should be taken into consideration as serious as that of security. However, the current national and international focus seems to be on bringing somehow betterment in security condition that has deteriorated greatly in the recent years. In June, a US congressional study warned that Afghanistan could be left in the midst of a "severe economic depression" after the 2014 pullout. The same study found that roughly 80 percent of the US Agency for International Development's (USAID) funds are spent in troubled Southern and Eastern Afghanistan, but that most of those funds have been poorly spent on short-term stabilization projects instead of longer term development initiatives designed to promote growth.

Currently the Afghan economy is greatly (91 percent according to World Bank) dependent on the foreign aids. In the last 10 years, the US alone has provided about $ 19 billion civil aids to Afghanistan. Other US allies have also contributed significantly by consistently providing financial supports to Karzai administration. But these funds, according to experts, will not remain so and are to shrink as the international community continues reducing its role and engagement in Afghanistan both on civil and military fronts.

Unfortunately, the government of Afghanistan has completely failed to make proper uses of the heaps of money that have poured into Afghanistan and still has no obvious economic strategy. This increases the chances of economic down fall in Afghanistan after international community withdraws.