ECONOMY

Evgeni PASTUKHOV

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Evgeni Pastukhov, Researcher, Investment Profitability Research Agency (Almaty, Kazakhstan)

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In 2005, as in previous years, the economic situation in Afghanistan was sufficiently complicated. This is due to the country’s adverse natural conditions, an infrastructure that has not been restored after 25 years of civil war, the government’s inability to implement economic projects, and inadequate foreign assistance. The problem of illicit production and trafficking of narcotic drugs has not been resolved either.

At the same time, let us recall that the country’s current head of state, Hamid Karzai, ran for president on a platform that clearly defined the government line in the economy: self-reliance and mobilization of all domestic reserves for rebuilding the country. Having reaffirmed his commitment to the principles of the market economy, he promised to raise per capita income by the end of his term in office from $200 to $500, especially in rural areas.

It must be admitted that some positive changes have indeed been recorded in the economy: in the 2003/04 fiscal year, GDP grew by 16%, and a similar figure, according to preliminary data, was reached in 2004/05. Estimates by the Asian Development Bank Institute (ADBI) show that average annual GDP growth in 2006-2010 will amount to at least 10%. In the 2004/05 fiscal year, GDP totaled $5,536 million ($246 per capita). According to the country’s Finance Minister Anwar-ul Haq Ahadi, the state budget in fiscal 2004/05 amounted to………………

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