Historical Context

1. Afghanistan
The GARDEN of BABUR

2. Before the Russian
invasion -

3. Before 1979
No concise historical data found
1930s: Government founded banks, opened
universities, established schools and sent students
abroad for education.
1956: Introduced development plans. Afghans had a
‘traditional economy’ model mostly based on
agriculture example: Inuit
End of 1970s: Mixed results due to limited
infrastructure, inadequate funding, shortage of skilled
managers and technicians
History: Babur

4. 1979-1989
Disruption in normal pattern of economy:
Trade, transport, loss of labor, loss of capital
Continuing internal strife made the development
process nearly impossible hampering domestic
efforts to help and providing ways for the
international community to help
Economy changed from a traditional economy to
a central planned economy : state has the sole
marketing power until 2002

5. Civil War 1992-1996
Mujahideen infightings
Kabul museum built in 1920, one of the prime
attractions of central asia, bombed in 1993

6. Prominent results of Russian
invasion
Birth of Afghan refugees: Most of them fled to
Pakistan and Iran.
Rise of Taliban in 1996 (Largely Pashtuns:
Formed in northern Pakistan) Implementation of
sharia law, ruled 90 percent of Afghanistan till
2001.

7. Buddhas of Bamiyan were
destroyed

8. Northern Alliance took over Kabul and Taliban
started to move down to south
US accused Bin Laden who was in Afghanistan
for masterminding the bombings of their
embassies in Africa in 1998 and 9/11 attacks
Taliban denied to hand over Bin Laden and US
invaded Afghanistan in October 2001

9. After US invasion – 2001/2002
Planned economy was replaced by a free market
economy in 2002.
An estimated 4.4 billion of aid entered the nation
from 2002 – 2004.
USAID, NATO, UNESCO
End of droughts
Result: According to IMF Afghan economy grew
by 20% in the fiscal year ending in March 2004

10. Actors of Afghan economy
Agriculture: Export of pomegranate, nuts
(Pistachios in the northern area of Afghanistan:
Bagdhis and Samangan)
Opium: Drug industry make half of the Afghan
economy, land is topographically favourable for
the production of Opium (Afghanistan supplies
world’s 90% opium) International government
and bodies say opium is helping to fuel Taliban
insurgency

11. Suitable for animal husbandry: Practice of raising
and breeding livestock (Mostly practiced by
Kuchis: Traditionally prefer to raise sheep)
Sudden decline after 2001 as most of the
livestock was removed by the refugees.
According to FAO survey in Balkh, Juzjan, Sar-
ePol and Faryab: Loss of 84% cattle from 1997
to 2002

12. Trade
Handwooven rugs
Crafted antique
replicas
Leather, furs
WEALTH OF NATURAL RESOURCES: 36 trillion
cubic feet of natural gas, extensive deposits of
minerals of copper, gold, colored stones, gem
stones….

13. Recent Trade deals:
With China: Copper deal (2008)
China has invested 2.8 billion dollars
Annual Afghan government income: 400 million
dollars

14. Aid