Editor in Chief: Moh. Reza Huwaida Thursday, July 19th, 2018

Challenges to the Economic Development

On Tuesday, August 16, President Hamdi Karzai called on some lecturers of faculty of economy from universities to discuss ways to improve economic situation of the country as it is going through the process of transition of security responsibilities from international troops to Afghan security forces. There are many challenges to economic development of the country.

In the first place, the government has lacked any effective policy on how to restore economic infrastructures and bring about a balanced economic development. Due to this lack of policy and strategy, the aid money has been spent ineffectively and has not led to any sustainability in the country.

In the meanwhile, corrupt officials have used this lack of economic policy on the part of the government as an opportunity to siphon off the international aid money. The money siphoned off by underhand authorities and officials has flown out of the country and has not been invested in Afghanistan.

The second challenge is the lingering instability. It is clear-cut that economic activities and investment can take place in a stable environment. Settings and situations that remain violent can never attract foreign investment and, in fact, lead to the flight of the domestic financial resources out of the country to be invested abroad. The decade presence of international community in Afghanistan has not created a reliable stable environment.

To our unmitigated chagrin, it is getting even worse day by day. President Hamid Karzai has not been efficient enough to mobilize the national and international resources towards securing and stabilizing the country.

Instead, he has been involved either in detrimental and treacherous internal political games or in a "wrestling" with international allies of Afghan people. This has led to mistrust inside the government institutions as well between his government and international donors.

Mistrust can greatly contribute to instability and insecurity. On Tuesday, August 16, officials warned that if the current population growth rate continues, it could double over the next thirty years. Dr. Suraya Dalil, the acting minister of health, said that the population growth rate had a negative impact on economic development and environment.

So the disproportion between growth rate of the population and economic development constitutes the third challenge facing Afghan economy at the time international community is bringing an end to their military presence in the country, which can also affect the level of assistance provided to Afghanistan.