Afghanistan's Economy Beyond 2014 - A Big Question Mark

While many observers are worried about the security situation in Afghanistan after 2014 (date of withdrawal of the coalition forces) others are concerned about the economy of Afghanistan.  The Afghan economy is heavily dependent upon foreign aid - of the total 2010 government expenditure ($17 billion) only $1.9 billion came from Afghanistan's own sources of revenue.  The present economy depends almost entirely on the development funds provided by the United States, Europe, Japan, Australia, Canada and other nations.  The money spent supporting the security environment is immense.  After 2014 most of this money will fade away.  It is unknown how much the donor nations will continue to contribute after 2014.  Most nations are turned off by the immense corruption of the Karzai regime.

There are some possible solutions for the future. Technology will play a large part - the explosion of cell phone use is phenomenal. There are rich mineral deposits that can be mined.  There is is the New Silk Road strategy that may transform the economy.  However, for all these possible solutions, there must be a secure environment - and that is another big question mark.

Read more on this topic in "Can the Afghan economy be saved?", By Javid Ahmad and Louise Langeby, The AFPAK Channel, Foreign Policy, February 3, 2012.