Economic Conditions of Afghanistan

Afghanistan is one of the poorest nations due to years of war and political instability and is largely dependent on foreign aid.

Afghanistan’s debt as of 2004, was $8 million in bilateral debt, mostly to Russia, with $500 million in debt to Multilateral Development Banks. The gross domestic product, per capita is $1,000, with a real growth rate of 7.5%. The composition per sector is agriculture (38%), industry (24%), and services (38%). The labor force is approx. 15 million, with an unemployment rate of 40% and population below the poverty line is 53%.

[required header] Critical Technologies (p53-65)  Identify critical technologies currently being produced  If none, identify any foreign aid being used as compensation  Identify future production efforts involving critical technologies  Identify which critical technologies have military applications  Identify how technology is being used to overcome water and energy shortages

[required header] Physical Resources (p88-90)  Agricultural  Level of domestic production (types of crops grown and amount)  Imports: type(s), amount and exporters  Exports: type(s), amount, and recipients

Afghanistan’s main source of income is agriculture which it produces enough food to provide for it’s people with some leftover to export. The primary food crops produced are: corn, rice, barely, wheat, vegetables, fruits and nuts. The major industrial crops are: cotton, tobacco, madder, castor beans and sugar beets. Sheep products such as wool and Karakul skins are exported. It is also a country rich in natural resources, mineral and precious stone deposits, natural gas and untapped petroleum stores. Many of these resources remain relatively unexploited.

The United States, France, India and Pakistan are Afghanistan’s primary export partners and Pakistan, South Korea, Japan, Germany, Turkmenistan, Kenya, US and Russia are it’s primary import partners. Although, as a result of the civil war, exports have significantly decreased, except for the illegal trade of opium and hash. The country not surprisingly has become an important producer of heroin.

 Mineral  Amount, types, and end applications  Imports: type(s), amount, and exporters  Exports: type(s), amount, and recipients

 Energy  Domestic resources: oil, natural gas, coal, nuclear, hydroelectric, solar, and wind  Consumption rates  Import requirements: type(s), amount, and exporters  Exports: type(s), amount, and recipients  Automotive/aircraft fuel refining capabilities