Socio-Political Issues

Building Nations: Case of Afghanistan


Loans and grants are typically the main source of funding for least developing nations. They do not have enough marketable indigenous resources and surplus in the early stages of development. Mired by extended conflicts and foreign occupation, if a country like Afghanistan is left with weakly funded government with half of the population below the poverty line, it can cause severe economic and even humanitarian crisis. To deal with the current humanitarian and economic crisis post-US exit, following are key points of consideration.

  • Ensure political and economic stability by offering internal amnesty and ending persistent conflicts which hurt economy.
  • It is important to prioritize economic recovery, normalcy, and continued socio-economic support to the poor population for which the government is primarily responsible.
  • Retaining good relations with neighbouring countries and provide strong assurance that Afghanistan’s territory will not be allowed to become a breeding ground for terrorism.
  • Engage with countries bilaterally and in global political and economic outlets and forums to seek legitimacy of the government to usher more political and economic ties and get the foreign reserves unfrozen as soon as possible by leaving no room for doubt on the commitment to pursue stability and harmonious governance.
  • Provide monetary stimulus to boost consumption and investment and create employment in public projects and seek funding for these projects from the rest of the world. It is also important to control repatriation of foreign currency.
  • When the economy is below full- employment in economic recession, monetary expansion will not create demand-pull inflation. Increased production of essential edibles following investment and consumption incentives can help in checking cost-push inflation.
  • Food security needs to be emphasized. To avoid glut in consumer durables, spending needs to be encouraged with extensive monetary stimulus and spending incentives, such as issuing smart debit cards and interest free credit cards.
  • Resume work on pending projects and ensure foreign investors security, policy continuity and a- political treatment.
  • Leverage strong relations with China and Russia to kick-start infrastructure development, energy production and mineral extraction.
  • Ensure strong governance to reduce corruption and build people’s trust and confidence in the regime. It is also important to lure expatriates to get back to the country and invest in its future and to avoid brain drain and capital flight.

Fund education and health by actively engaging and inviting global health and educational aid to the country.

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