Review of Afghanistan’s Economic Development Status during Republic Government (from 2001-2021)

Abstract

In 2001, Afghanistan was stuck in war and conflict which started in 1979, when 9/11 occurred and it became again the center of the world's attention. The international community intervened and the new Afghan government established hope that a stable economy and functional state could be built. The international community poured huge amounts of aid into the Afghan democratic government. The country's economy grew, public institutions developed, education and health services intensified and state banks upgraded. Twenty years passed and the Afghan government never found the capability to finance its national budget. The foreign grants shared around 97 percent of GDP by 2011 and it was 40 percent by 2021. The country was addicted to foreign assistance; aid funds provided a large portion of the public budget, however a greater part of grants were carried by doors themselves (off-budget). The economic development areas that are generating revenue and ensuring sustainability; agriculture, natural resources and transit did not expand. The Afghan government did not acquire functionality and could not stand on its feet in the last twenty years in spite of experiencing economic growth. Afghanistan remained poor with persistent poverty and humanitarian challenges. The prevailing poverty, weak economy and state failure now indicate that Afghanistan is at the status that it was in 2000. The economic growth and development was unsustainable.