Analysis and Review the Role of Institutions in Afghanistan's Economic Underdevelopment

Abstract

Economic development and growth, as the foundation of human life, has been the first problem facing human life.The causes and factors that hinder the economic progress of societies have long been a key issue for economic researchers. In this regard, economic development books have largely focused on purely economic factors, neglecting the institutional backgrounds of underdevelopment in societies. This paper aims to address the institutional factors that affect economic development. In this context, an underdeveloped country like Afghanistan is chosen as a research case, and the causes of its underdevelopment are analyzed from an institutional perspective. The research hypothesis is based on the premise that institutions, as the rules of the game, have played a fundamental and primary role in the underdevelopment of Afghanistan, and reforming these institutions is a prerequisite for the country’s economic development. The economic underdevelopment of Afghanistan is the result of the weakness and fragmentation of various institutions, such as: the weakness of the political system, the weakness of the economic system, cultural weaknesses, failure in nation-building, weakness in justice and the redistribution of resources, weakness in economic laws, and ultimately the weakness of security institutions. Overall, the shortcomings in the above institutions have contributed to the failure of economic development in Afghanistan.