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Afghanistan-LLDC
 

Region: South-central Asia
Capital: Kabul
Population: 32,738,376 (2008 est.)
Surface area: 652 090 square km
Currency: Afghani
GDP per capita: Purchasing power parity $1,000 (2007 est.)
Facts and figures (UNCTAD)

Background:
Ahmad Shah DURRANI unified the Pashtun tribes and founded Afghanistan in 1747. The country served as a buffer between the British and Russian empires until it won independence from notional British control in 1919. A brief experiment in democracy ended in a 1973 coup and a 1978 Communist counter-coup. The Soviet Union invaded in 1979 to support the tottering Afghan Communist regime, touching off a long and destructive war. The USSR withdrew in 1989 under relentless pressure by internationally supported anti-Communist mujahedin rebels. Subsequently, a series of civil wars saw Kabul finally fall in 1996 to the Taliban, a movement that emerged in 1994 to end the country's civil war and anarchy. The UN-sponsored Bonn Conference in 2001 established a process for political reconstruction that included the adoption of a new constitution and a presidential election in 2004, and National Assembly elections in 2005. On 7 December 2004, Hamid KARZAI became the first democratically elected president of Afghanistan. The National Assembly was inaugurated on 19 December 2005.

Economy – overview:
Afghanistan's economy is recovering from decades of conflict. The economy has improved significantly since the fall of the Taliban regime in 2001 largely because of the infusion of international assistance, the recovery of the agricultural sector, and service sector growth. Real GDP growth exceeded 7% in 2007. Despite the progress of the past few years, Afghanistan is extremely poor, landlocked, and highly dependent on foreign aid, agriculture, and trade with neighboring countries. Much of the population continues to suffer from shortages of housing, clean water, electricity, medical care, and jobs. Criminality, insecurity, and the Afghan Government's inability to extend rule of law to all parts of the country pose challenges to future economic growth. It will probably take the remainder of the decade and continuing donor aid and attention to significantly raise Afghanistan's living standards from its current level, among the lowest in the world. International pledges made by more than 60 countries and international financial institutions at the Berlin Donors Conference for Afghan reconstruction in March 2004 reached $8.9 billion for 2004-09. While the international community remains committed to Afghanistan's development, pledging over $24 billion at three donors' conferences since 2002, Kabul will need to overcome a number of challenges. Expanding poppy cultivation and a growing opium trade generate roughly $4 billion in illicit economic activity and looms as one of Kabul's most serious policy concerns. Other long-term challenges include: budget sustainability, job creation, corruption, government capacity, and rebuilding war torn infrastructure. 

Human Development Index Ranking: Not ranked in 2008
Official Development Assistance and Major Development Partners: Net ODA in 2003 was $3 billion. Afghanistan’s top three donors are the United States, United Kingdom and the European Community.

Total External Debt (2004): US$8 billion in bilateral debt, mostly to Russia; Afghanistan has $500 million in debt to Multilateral Development Banks

HIPC: Not eligible as of 2008

New York Mission:
Permanent Mission of the Islamic State of Afghanistan to the United Nations
360 Lexington Avenue, 11th Floor
New York, N.Y. 10017 USA
Telephone: 212-972-1212 / 1213 Fax: 212-972-1216

Sources:
CIA World Factbook. Central Intelligence Agency. www.cia.gov
World Development Indicators. World Bank www.worldbank.org
Development, Recipient Aid Charts. Organization for Economic Co-operation and Development. www.oecd.org
Human Development Report 2008.United Nations Development Programme. www.undp.org

Updated July 2008

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