The Economic Collapse of the Afghanistan Economy

Afghanistan is a country with a poor economic record. The country ranks 103rd in the world in terms of gross domestic product, or GDP. Its GDP is currently about $70 billion, which is lower than many other countries. Afghanistan is also experiencing some economic shocks, such as the decline in its currency.

Economic shocks

The economic collapse of Afghanistan has left millions of people in need of immediate aid. The country has suffered from years of conflict, natural disasters, poor governance and international sanctions. Now, the country is also dealing with the effects of a COVID-19 pandemic, drought and the looming threat of famine.

For many years, Afghanistan relied on foreign aid to provide basic public services, such as health and education. This has left the country with decrepit infrastructure, a lack of indigenous technical capacity, and a high level of insecurity. In addition, the country’s wealthiest people tend to keep their savings in foreign banks, not investing them in national development. As a result, Afghanistan has consistently scored low on international rankings for per capita GDP.

The World Bank and the UN must work together to resolve these issues. The IMF has the technical expertise and experience to monitor financial transactions, and it should be backed by the UN and the World Bank to enforce compliance. This will be challenging, but it is essential to ensure proper disbursement of humanitarian aid funds and ensure that Afghanistan has a stable economic future.

As Afghanistan continues to undergo ongoing transitions, the international community must help it to become a self-reliant country. It is a fragile situation in which it cannot afford to be shackled by economic shocks.