Editor in Chief: Moh. Reza Huwaida Friday, April 19th, 2024

A Contemplation on the Development Obstacles in Afghanistan

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A Contemplation on the Development Obstacles in Afghanistan

Why USA and Canada improved and the Latin American countries remained backward? How did the Great Britain develop? Why and how did Western Europe develop rapidly while others lagged behind? How come Japan emerged as the first developed country in Asia? Which pathway did today’s developed countries follow? And how is China pushing forward to complete the full circle and catch up with the west?

Shuffling the pages of history and studying the development pathways of developed countries, we will come to know that all these countries have followed almost the same principle. The principle which made United states of America not only the super power, but also the biggest economy and the beckon of modern technology. The principle that differentiated Western Europe from the rest of this continent. The path way that made history to the long and severely poverty in Tsarist Russia. The formula that turned Japan as the first Asian advanced country before the World Wars and the second largest economy within just three decades after the World War 2. Now what is this principle and formula that changed the world from and agrarian to industrialized and commercialized world? This is nothing, but a set of four policies which was prioritized by the Western Europe and the USA to catch up with the Great Britain. This is the Standard Development Model with the following four principles:

  1. Creation of a unified national market by eliminating internal tariffs and building transportation infrastructure;
  2. The erection of an external tariff to protect their industries from British competition;
  3. The chartering of banks to stabilize the currency and finance industrial investment; and
  4. The establishment of mass education to upgrade the labour force.

Countries that adopted this set of four policies completely, developed rapidly, caught up with England and changed the living standards of their people. Some nations like Russia and Mexico adopted these principles incompletely, and thus improved, but not to the extent to catch up with the west. Therefore they lagged behind USA and Western Europe, but far better than the rest of the world. However, some others, like Japan modified the development model in accordance to their own circumstance and the modification worked for them. Some others followed on heels of these now advanced countries, but those suitable to their own conditions to catch up to the west. South Korea and Taiwan followed close on Japanese modified model which gave them an ambiguous start. China’s rapid growing economy which is the result of free-market reforms, the planning period (1950-78) and reform period (1978 to present) is another great example of modifying this model.

So China is on course to catch up with the West. Botswana, Equatorial Guinea, some of the Arabic countries such as Oman, Qatar, Kuwait, etc. are special cases with large oil and diamond reserves. Singapore and Hong Kong are city states, and that makes them special since there was no peasant agricultural sector to swamp the city with migrants when investment rises. But what of the large agricultural countries in Africa, Latin America and the rest of Asia? What of my country, the beloved Afghanistan with its large agricultural sector? These poor countries, including Afghanistan would have to grow at 4.3% per person per year to catch up to the rich countries in 60 years. The total GDP of these states have to grow at least 6% per year for 60 years. Much poorer countries, like many in sub-Saharan Africa, would have to grow even faster, or it would take even longer to catch up. For that to happen, these countries must apply the standard model and follow on the heels of those advanced countries with similar contexts. As for Afghanistan, the market economy system which has been enacted after the fall of Taliban regime in 2001, created the opportunity for the adaptation of the standard development model. However, the application of these four policies in the framework of new economic system and in the new era, is highly under question.

First, there was no tariff on internal and domestic goods being transported among the provinces and domestic markets even during the kingdoms. But the existence of a unified national market is under question. There are at least 5 separate markets in 5 different zones; namely the Kabul market in central zone, Mazar in the north, Jalalabad in the east, Herat in the west and Kandahar in the south. The transportation system among these markets in only based on high way roads. These high ways, that link the different regions of this mountainous country, were completely destroyed during the civil war. Though they are asphalted during the Karzai regime, but have never been expanded. The Heart-Kabul high way has even been exacerbated in terms of security in the past 13 years. The bridges along the high way are being blasted, trucks carrying staple goods, fuel and other groceries are being rocketed and burned which rises the prices for the consumers even higher than internal tariffs and excise taxes. Railways were planned in Afghanistan since the 19th century but never completed. At least one rail track was built in the capital, Kabul during the 1920s but was dismantled as Afghan leaders resisted the railway age. Currently there are only two railway tracks between Hairatan and Mazar-e-sharif, connecting northern capital with Uzbekistan, and the Mashhad – Herat highway (freight only) in the west.

Second, although private sector has played its role to some extent to produce the goods which can be produced domestically, but most of the private companies inside the industrial parks have been bankrupted. These newly established companies couldn’t compete with neighboring companies. A good example is our publishing sector. Currently there are 180 publishing companies in the country, but only 20 of them are active. The rest are all out-competed by neighboring companies. This is definitely the fault of Afghan government in general and Ministry of Commerce and Industries in particular. The government could enact tariffs on those imported goods which could be produced domestically. Unfortunately it has never taken a giant stride to do so. Lack of good and conservative trade policies, smuggling of goods across the border, bribery, insecurity and poor governance, all and all play role in the failure to protect Afghan industries from neighboring competitions.

Third, the chartering of banks were also started in 20th century. Based on market economy, the law of Da Afghanistan Bank was passed in 2003 as the central bank to stabilize the currency and control financial system. Several other banks have also been established during the new era. But due to administration and financial corruptions, none has been supportive in financing industrial investment. Kabul Bank fraud, which resulted in almost $1b loss and its collapse (which is said to be one of the largest banking fraud in the world) and the recent robbery by the managers of a branch of central bank in Spin Boldak district of Kandahar, are the two clear examples of corruption and poor banking system in the country. These banks are no longer reliable for creditors and thus can not finance industrial investment in the near future at least.

Fourth, education which plays the most vital role in all parts of human life, improved in part in secure areas during the new regime. Thousands of new schools and dozens of private universities have been opened. Hundreds of thousands of boys and girls are enrolled in school during the new era. Thousands of high school and bachelor degree holders are being sent abroad for acquiring higher education every year, which carries a great beam of hope for the future of the country. However, on the other hand the education system, still faces big challenges. Thousands of schools are closed, hundred other burned in provinces under the influence of Taliban and insurgent groups. The most dangerous and tackling challenge, however, is the presence of prejudiced, dogmatic and illiberal figures as the top officials in the education and higher-education ministries. Teaching, which is the most supreme job in the developed world, is unfortunately deemed as a third-class job in our country. Teachers are the nobles of advanced societies. They are the brightest members of a society, and the facilitators of a prosperous future for its next generation. But unfortunately, in Afghanistan the government has never recognized the seriousness of this issue. Neither has it taken a serious stride to improve the livelihood of these noble members. The salary being provided to teachers and professors in national schools and universities are too low to be adequate for them to feed their families and improve their economic conditions. As a result they feel irresponsive towards their profession, take part in bribery and contribute in corruption.

Finally, I would only recommend two things for the government and people of my country in order to catch up with the west in 60 years. For the government to undertake a universal reform, and for the people to burn the candle of their minds with the light of education. Every single problem can be attributed to lack of education, literacy and knowledge. Fight against illiteracy, educate the future generation, and they will find themselves on the right track towards development. 

Mustafa Nasiri is a freelance Afghan columnist, studying at the University of Tsukuba, Japan. He can be reached at mustafa.nasiri@live.com

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