Resource information
This is the first Economic Report on
Afghanistan by the World Bank in a quarter-century. It is
intended to contribute to a better understanding of the core
challenges that lie ahead for the country and key strategic
priorities for national reconstruction. It focuses on the
conceptual frameworks, policies, and institutions that will
be needed to achieve core national objectives of
state-building; sustained rapid, broad-based economic
growth; and poverty reduction. Analysis of the Afghan
economy is hindered by severe data limitations (discussed in
the Statistical Appendix) and is challenged by the
conflict-related economic structure and dynamics that have
emerged during the past two decades. Nevertheless much has
been learned about how the Afghan economy functions, at
least in qualitative and institutional terms. The report
also draws on the great volume of work done on individual
sectors and topics by the Government and partners. This
report starts with a description and analysis of the Afghan
economy and it s recent performance (Chapter l), and the
poverty situation (Chapter 2). Chapter 3 outlines a strategy
for growth and poverty reduction, based on the NDF/SAF, and
puts forward key strategic priorities and directions for
implementation. State-building, discussed in Chapter 4, lies
at the core of Afghanistan's reconstruction as well as
progress on political, security, and other fronts. Chapter 5
addresses the development of the private sector, which will
have to be the engine of growth and poverty reduction in
Afghanistan. Agriculture, covered in Chapter 6, comprises
half of the economy and will play a crucial role. Chapter 7
examines Afghanistan's opium economy, which has some
short-term economic benefits but very serious adverse
effects on state-building and security. Chapter 8 looks at
delivery of social services, a key component of the poverty
reduction strategy, including the gender dimension. Social
protection--strategies and programs to assist the poorest
and most vulnerable members of Afghan society--is discussed
in Chapter 9. Chapter 10 concludes with a summary of
priorities for action, implementation constraints,
prospects, and risks.
