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Historical Context

Historical Context

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  • 1. AfghanistanThe GARDEN of BABUR
  • 2. Before the Russian invasion -
  • 3. 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
  • 4. 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
  • 5. Civil War 1992-1996Mujahideen infightingsKabul museum built in 1920, one of the primeattractions of central asia, bombed in 1993
  • 6. 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.
  • 7. Buddhas of Bamiyan were destroyed
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. TradeHandwooven rugsCrafted antiquereplicasLeather, fursWEALTH OF NATURAL RESOURCES: 36 trillioncubic feet of natural gas, extensive deposits ofminerals of copper, gold, colored stones, gemstones….
  • 13. Recent Trade deals:With China: Copper deal (2008)China has invested 2.8 billion dollarsAnnual Afghan government income: 400 milliondollars
  • 14. Aid