War-Torn Growth
Afghanistan
Daniel Lee
Bryan Hliboki
David Barenboim
Economic Obstacles
An Economic Introduction
- What has happened in Afghanistan?
- What is being done to fix this?
- What do we think needs to be done?
History
Brief History
- 1997: Taliban's rise & Northern Alliance
- Early 2000's: Al-Qaeda's presence leads to NATO intervention
- 2001: End of Taliban reign & Erection of interim govt.
- 2004: Constitution
- Late 2000's Onward: Continued fighting between Taliban, Al-Qaeda, & Afghan Military
- 2013: Afghan army takes over all ops from NATO
Road to Development
Osama bin Laden Executed
Education Improves
New Constitution
Taliban Rule Ends
2008
Over 9 million children enrolled in school, 480,000 teachers and staff trained, increased community-based education; 53% of students are girls
January 2004
Follows the input of 500,000 Afghans, calls for equality of women, requires president and two vice presidents
Leading to Development
December 2001
The government that prevented development is not in power, Hamid Karzai is sworn in as leader
World Bank Helps
Pledge to end Corruption
2002
In the wake of war and an unstable government, World Bank begins to aid Afghanistan towards development
2008
The international community pledges over $15 billion in aid to Afghanistan at a donors’ conference in Paris, while Afghan President Hamid Karzai promises to fight corruption in the government.
Takeaways
- Comparable school enrollment with astoundingly low literacy rates show that the quality of education is lackluster
- Sizable population with low GDP shows that human capital is not being used efficiently
- With over 1/2 the population in poverty, there is a systematic poverty cycle
Poverty Trap
- 90% of workers are in poverty or near the poverty line
- Ineffective and unstable judicial system
- Many security concerns and the financial system has weak capacity
- 75.6% of poor people are illiterate, and only 2.8% of poor people utilize sanitation
- Women's rights and freedoms are culturally ignored
- Afghanistan War caused great destruction
- Food insecurity & lack of access to water
Institutional and Political Traps
Institutions and Politics
- Decrease in foreign combat forces
- Decrease in economic aid from major donors
- Maximum of 2 terms for presidency
- Enforcement of laws and policies is rarely uniform
- Taliban must still be negotiated with
Social and Cultural Trap
- Women are generally viewed as inferior and inherently different than men
- must be accompanied by a man in public
- women rarely get justice in cases of rape and violence against them
- lower employment, less education
- Made rape illegal in 2009, but enforcement is weak
- In war torn areas, there is little hope and motivation, which may lead to lower productivity
- Many people in rural areas still want inferior legislation due to lack of education and understanding, almost all are in poverty
International Obstacles
- Foreign donors have put over $100 billion into Afghanistan
- Foreign aid rarely reaches rural Afghans
- International forces are dominant in supporting the economy and government
- Donors are very skeptical with aid; war and corruption are rampant
- Lack of transparency makes diplomacy and aid difficult
Factors of Development Provided by Agencies
Economic Development
Education and Healthcare
- Doctors Without Borders provides medical care in conflict zones
- Reducing the 5% infant mortality rate
- Red Cross set up medical clinics
- Distributes food supplies
- UNICEF supports teachers' training
- Initiative to increase girls' enrollment
Women's Empowerment
- Women's Empowered-Afghanistan
- Women In the Economy (WIE)
- Informs them of equal property rights
- Provides support services for abused women
- Teaches women basic economic skills
- Attempts to increase girls' enrollment
Infrastructure
- Afghan Ministry of Public Works
- US Agency for International Development
- Provide electricity to 16% who don't have
- Build roads so children can get to school
- Rebuild infrastructure destroyed by conflict
Appropriate Technologies
- USAID builds irrigation technologies
- Other watering technologies inappropriate
- Afghan Ministry of the Interior
- Electronic paying system reduces 10%
Access to Credit
- World Bank helps ultra-poor attain credit
- First Microfinance Bank Afghanistan
- Only reaches 1% of population
- Fund small businesses in urban informal sector
Income Distribution
- GINI coefficient of 27.8%
- Provides food to the impoverished
- Buys products of small farmers
What's in it for foreign investors?
Socially Responsible Investing
- adhere to ethical values of your company
- generate greater funds from socially conscious investors
- improve the lives of people in poverty
(depending on borrower) according to FMFB-A.
for repeat borrowers and women
Why should the UN donate to MFIs?
- Some of this money should be reallocated to supporting MFIs
- Microfinance loans give people the tools to build careers
- Some loans will be paid back, allowing for more loans to be given
of workers on the payroll don't even exist.
Works Cited
“Afghanistan.” International Committee of the Red Cross, 8 Mar. 2019, www.icrc.org/en/where-we-work/asia-pacific/afghanistan.
“Afghanistan.” U.S. Agency for International Development, 17 Dec. 2018, www.usaid.gov/afghanistan.
“Afghanistan.” World Bank, www.worldbank.org/en/country/afghanistan.
“UNICEF in Afghanistan Homepage UNICEF.” Home Page, www.unicef.org/afghanistan/.
https://www.nytimes.com/2012/07/21/opinion/afghanistans-economic-challenges.html
https://www.brookings.edu/research/the-afghanistan-challenge-a-government-that-serves-the-afghan-people/
http://time.com/5472411/afghanistan-women-justice-war/
https://www.womenforwomen.org/blogs/eradicate-poverty-afghanistan-womens-empowerment-essential
https://www.worldbank.org/en/country/afghanistan/publication/afghanistan-to-2030-priorities-for-economic-development-under-fragility
http://www.worldbank.org/en/topic/poverty/publication/poverty-reduction-in-afghanistan-despite-economic-growth-widening-inequality
https://www.worldatlas.com/articles/the-highest-literacy-rates-in-the-world.html
https://www.pbs.org/newshour/politics/asia-jan-june11-timeline-afghanistan
https://watson.brown.edu/costsofwar/costs/human/civilians/afghan)
https://www.usaid.gov/afghanistan/education
https://www.theguardian.com/world/afghanistantimeline