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  • Essay / The Economy of Afghanistan - 1374

    The economy of Afghanistan has improved considerably since the decline of the Taliban in 2001 thanks to the injection of international aid, the recovery of the agricultural sector and to the growth of the services sector. Whatever progress has been made in recent years, the country is extremely poor, heavily dependent on foreign aid and landlocked. A large part of the population continues to suffer from a lack of jobs, clean water, electricity, medical care and housing. Crime, insecurity, lack of infrastructure and the Afghan government's difficulty in extending the rule of law to all parts of the country create obstacles to Afghanistan's future economic growth. Afghanistan's standard of living is among the lowest in the world. Afghanistan has a stable interest rate of 15%. Although it may be stable, an interest rate of 15% is too high and makes it almost impossible to provide loans to start businesses, which harms entrepreneurship in Afghanistan. Additionally, business financing is difficult. Departments like Research and Development are underfunded and better paying jobs are not common. Add to this the fact that 28% (72% literacy rate) of the country's population is illiterate and the country ranks 177th in education, business creativity is struggling. . Businesses cannot grow. The CPI shows a 7.4% change in inflation compared to last year. This CPI trend is very volatile and very dangerous. There is no stability. High interest rates, low literacy rates and volatile inflation rates harm entrepreneurship and competitive markets. Enforcement of regulations has been inconsistent and non-transparent. According to the World Heritage Foundation: On average, starting a business requires four procedures, but obtaining the necessary permits can take... middle of paper... corrupt government, so a full 10 years will hopefully be enough to completely clean up their government. But in the future, Afghanistan will prosper with the help of a strong government. The best outcome of the treatment prescribed for me will be a strong government. I say this because government affects all pillars of capitalism (rule of law, property rights, entrepreneurship, and competitive markets). Furthermore, I do not consider 10 years to be sufficient time for Afghanistan to end its dependence on foreign countries to help stabilize it. the economy. It will have to be gradually relaxed until it can prosper without depending too much on countries. Afghan citizens must remain patient with their government and not abandon their country. For this country to fully heal, the government and people must come together and trust each other..