Afghan Economy

In: Other Topics

Submitted By Hopethiswerx
Words 1191
Pages 5
24 Mar 2012
Afghanistan’s Economy

This paper is to explain the past, current and future economy of Afghanistan. As of 2011, Afghanistan has a population of roughly 30 million and is expected to increase to around 82 million people by the year 2050. Afghanistan is the 41st largest country in the world, and is similar in size to the state of Texas. Ranked 91st in world economies it has very high unemployment, nearly 35% countrywide. According to data from the Central Intelligence Agency, nearly 42% of Afghanistan’s population lives on less than $1 a day and almost 35% of the population lives below the poverty line. Gross Domestic Product (GDP) per capita is a trifling $900, and is mainly due to the fact that 78% of the workforce is agricultural in nature. Only 5.7% of Afghans work in industries like mining and textiles, and another 15.7% of the Afghani work force are in the service industry. But to truly understand the Afghani people and their nation’s future economic endeavors, we must understand their past economy.

In the 1930’s Afghanistan began a momentous undertaking of instituting new monetary methods unto their nation such as introducing paper money, created numerous facilities for general and higher education, and established a national bank. Unfortunately until roughly the 1950’s, Afghanistan lacked much of the necessary national infrastructure such as roads and railways to support an expansion in their industrial sectors. This factor locked them into decades of reliance on animal husbandry, agriculture and hand-made or small-scale manufacturing products. While agriculture has played a dominate role in Afghanistan’s past economy, natural resources such as natural gas and minerals have contributed significantly more to the country’s economy since roughly 1967. From the late 1960’s to the 1980’s natural gas sales accounted for over 56% of…...

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