Before 1979No concise historical data found1930s: Government founded banks, openeduniversities, established schools and sent studentsabroad for education.1956: Introduced development plans. Afghans had a‘traditional economy’ model mostly based onagriculture example: InuitEnd of 1970s: Mixed results due to limitedinfrastructure, inadequate funding, shortage of skilledmanagers and techniciansHistory: Babur
1979-1989Disruption in normal pattern of economy:Trade, transport, loss of labor, loss of capitalContinuing internal strife made the developmentprocess nearly impossible hampering domesticefforts to help and providing ways for theinternational community to helpEconomy changed from a traditional economy toa central planned economy : state has the solemarketing power until 2002
Civil War 1992-1996Mujahideen infightingsKabul museum built in 1920, one of the primeattractions of central asia, bombed in 1993
Prominent results of Russian invasionBirth of Afghan refugees: Most of them fled toPakistan and Iran.Rise of Taliban in 1996 (Largely Pashtuns:Formed in northern Pakistan) Implementation ofsharia law, ruled 90 percent of Afghanistan till2001.
Buddhas of Bamiyan were destroyed
Northern Alliance took over Kabul and Talibanstarted to move down to southUS accused Bin Laden who was in Afghanistanfor masterminding the bombings of theirembassies in Africa in 1998 and 9/11 attacksTaliban denied to hand over Bin Laden and USinvaded Afghanistan in October 2001
After US invasion – 2001/2002 Planned economy was replaced by a free market economy in 2002. An estimated 4.4 billion of aid entered the nation from 2002 – 2004. USAID, NATO, UNESCO End of droughts Result: According to IMF Afghan economy grew by 20% in the fiscal year ending in March 2004
Actors of Afghan economyAgriculture: Export of pomegranate, nuts(Pistachios in the northern area of Afghanistan:Bagdhis and Samangan)Opium: Drug industry make half of the Afghaneconomy, land is topographically favourable forthe production of Opium (Afghanistan suppliesworld’s 90% opium) International governmentand bodies say opium is helping to fuel Talibaninsurgency
Suitable for animal husbandry: Practice of raisingand breeding livestock (Mostly practiced byKuchis: Traditionally prefer to raise sheep)Sudden decline after 2001 as most of thelivestock was removed by the refugees.According to FAO survey in Balkh, Juzjan, Sar-ePol and Faryab: Loss of 84% cattle from 1997to 2002
TradeHandwooven rugsCrafted antiquereplicasLeather, fursWEALTH OF NATURAL RESOURCES: 36 trillioncubic feet of natural gas, extensive deposits ofminerals of copper, gold, colored stones, gemstones….
Recent Trade deals:With China: Copper deal (2008)China has invested 2.8 billion dollarsAnnual Afghan government income: 400 milliondollars