The Impact of Taliban Policies and Restrictions on the Intensification of the Economic Crisis

Hamia Naderi

TarzPress

24 October 2024

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Tarz Press: Poverty is one of the major social and economic challenges in Afghanistan, affecting the lives of millions. According to reports from international organizations, Afghanistan faces some of the highest rates of absolute and relative poverty globally. Poverty, defined as a lack of access to basic needs such as food, water, shelter, education, and health, can lead to severe social and economic inequalities. This report analyzes the causes of poverty, the current economic situation in Afghanistan, and its social consequences.

Types of Poverty

Poverty is categorized into two major types: absolute poverty and relative poverty. Absolute poverty refers to the inability to meet basic survival needs, such as food and shelter. In this condition, individuals cannot provide for their most fundamental needs. Relative poverty, on the other hand, refers to lacking income and living standards in comparison to the broader society. Both forms of poverty are widespread in Afghanistan, especially in rural and conflict-affected areas.

Causes of Poverty in Afghanistan

Poverty in Afghanistan is caused by various factors, including the lack of economic growth, limited job opportunities, and weak infrastructure. However, one must also consider the impact of Taliban policies on exacerbating this crisis.
 
1.Taliban’s Restrictions on Women: One of the primary drivers of increased poverty during the Taliban’s rule is the severe restrictions on women. By banning women from working and attending school, the Taliban have deprived many families of vital sources of income. These restrictions, especially in sectors like education and healthcare, have marginalized women from economic opportunities. As a result, many families have plunged into severe poverty, losing the ability to meet their basic needs.
2.Lack of Comprehensive Economic Programs: The Taliban have not yet developed a coherent economic program to alleviate poverty. The absence of structured economic and development strategies, coupled with internal corruption, has led to the collapse of Afghanistan’s economy. Without effective economic programs to create jobs and develop infrastructure, the economy has stagnated, reducing job opportunities for young people.
3.International Sanctions and Economic Isolation: The Taliban’s extremist policies in international relations have led Afghanistan to face severe economic sanctions. These sanctions have cut off foreign investments and aid, further increasing poverty. Without access to foreign financial resources and investment, Afghanistan’s economy continues to crumble, with poverty spreading at an alarming rate.
4.Climate Change and Drought: Climate change and frequent droughts have severely impacted Afghanistan’s agriculture-dependent economy. Many farmers have lost their incomes due to reduced rainfall and crop failures, contributing to growing poverty in rural areas.
5.War and Insecurity: Prolonged conflict in Afghanistan, in addition to destroying infrastructure and the economy, has led to the flight of capital and skilled labor. Ongoing insecurity has reduced economic opportunities and investment, exacerbating poverty.
6.Lack of Economic Infrastructure: The absence of essential infrastructure such as roads, electricity, potable water, and other basic facilities is another major cause of poverty in Afghanistan. The inability to attract domestic and foreign investment due to a lack of these infrastructures has limited job opportunities and spread poverty across the country.
 
Additionally, the lack of suitable employment opportunities has played a significant role in increasing poverty. In Afghanistan, young people and educated individuals, due to the absence of jobs with decent benefits, resort to low-paying and informal jobs. This lack of access to quality employment leads to hopelessness and a sense of inadequacy, preventing economic progress and development.
 
Hunger and malnutrition are also prevalent as another consequence of poverty in Afghanistan. Extreme poverty reduces access to adequate and healthy food, a problem particularly severe among women and children. Chronic hunger not only affects physical health but also negatively impacts children’s development, perpetuating the cycle of poverty.
 
In many parts of Afghanistan, limited access to clean drinking water is another critical factor contributing to poverty. The lack of adequate water infrastructure severely affects public health. This problem, particularly in rural areas, leads to the spread of various diseases, increasing mortality rates and negatively impacting people’s daily lives.
 
Moreover, the lack of healthcare services, especially for women and children, is one of the key drivers of poverty and mortality. Limited access to healthcare professionals has made life difficult for many, weakening society’s ability to cope with economic and social challenges.
 
Illiteracy is a major challenge in Afghanistan, particularly among women. The high rate of illiteracy limits job and economic opportunities, preventing many individuals from fully utilizing their abilities.
 
Social and economic inequalities are also significant factors in the prevalence of poverty. Inequality in resource distribution and access to opportunities creates deep social divides, further limiting people’s ability to improve their living conditions.
 
Drug addiction, as a social problem, alongside increasing poverty and unemployment, weakens society and lowers people’s quality of life. The growing drug culture threatens family finances and leads to more social and economic problems.
 
Brain drain is another serious issue in Afghanistan. Educated and talented young people emigrate to other countries, reducing Afghanistan’s economic and social capabilities. The absence of skilled human resources hinders the country’s ability to develop economically and socially.
 
Finally, the lack of social cohesion and national unity also weakens society and contributes to rising poverty. The absence of cooperation and solidarity among different segments of the population hinders sustainable development and the creation of a healthy and functioning society. Building unity and solidarity within the community can be a key factor in reducing poverty and improving living conditions in Afghanistan.

Afghanistan’s Current Economic Situation

As of 2024, Afghanistan’s economy continues to struggle with deep economic, political, and social challenges. Since the political upheaval in August 2021, when the Taliban took over and international aid ceased, the country has experienced economic recession and a sharp decline in growth. Below are the key indicators and the current state of Afghanistan’s economy at the end of 2024.
 
1.Gross Domestic Product (GDP):
According to the latest data from international sources such as the World Bank and the International Monetary Fund (IMF), Afghanistan’s GDP in 2024 is estimated to be between 20 to 22 billion dollars. This indicates that Afghanistan’s economy has not made significant improvements. In recent years, Afghanistan’s economic growth has remained stagnant due to reduced foreign investment, limited international trade, and sanctions.
 
Multiple factors, including reduced private sector activity, the flight of foreign capital, and banking restrictions resulting from economic sanctions, have contributed to the decline in GDP. Domestic demand has also dropped due to widespread poverty and high inflation, further pushing Afghanistan’s economy toward recession.
 
2.National Per Capita Income:
By 2024, Afghanistan’s national per capita income has reached its lowest point in recent decades. While this figure was around $650 in 2013, it dropped to $516 by the end of 2020. In 2024, amid ongoing crises, the per capita income is projected to fall below $500. This sharp decline signifies widespread poverty in the country, with severe social and economic implications for the Afghan population.
 
A large portion of Afghanistan’s population lives in absolute poverty due to unemployment, reduced family income, and rising living costs. Additionally, limited access to social services, healthcare, and education has negatively affected people’s quality of life.
 
3.Economic Inflation:
One of Afghanistan’s most pressing economic problems in 2024 is high inflation and unstable prices. Inflation has risen sharply due to several factors, including the devaluation of the national currency, rising food and fuel prices, and limited access to foreign currency. Estimates suggest that inflation in 2024 ranges between 15 to 20 percent.
 
The rising cost of essential goods such as food and fuel has directly impacted the daily lives of the people. The depreciation of the Afghani and fluctuations in exchange rates, combined with a heavy reliance on imported food and energy, have driven up inflation across various economic sectors, significantly reducing people’s purchasing power.
 
4.Drought and Food Crisis:
The food crisis and drought pose another serious challenge to Afghanistan’s economy in 2024. The agriculture sector, which accounts for around 25 percent of the country’s GDP, has been severely affected by climate change and declining rainfall. Successive droughts in recent years have led to reduced agricultural production and rising food prices.
 
According to reports from the United Nations and other international bodies, about 23 million Afghans face food insecurity. This food crisis not only threatens the health and security of the people but also increases poverty among rural communities and reduces farmers’ incomes. Consequently, food security has become one of Afghanistan’s immediate priorities in 2024.
 
5.Unemployment and Reduced Job Opportunities:
Unemployment rates in Afghanistan, especially following the political upheavals of 2021, have skyrocketed. Since the Taliban’s rise to power and the resulting decline in economic activities, many private and international companies have ceased operations in Afghanistan. Combined with a sharp drop in foreign investment and economic sanctions, this has driven Afghanistan’s unemployment rate to unprecedented levels.
 
By 2024, youth and women, particularly in urban areas, face unemployment rates exceeding 40 percent. This has led many young Afghans to either seek employment abroad or engage in informal, low-paying jobs. Rising unemployment and reduced job opportunities have had a profoundly negative impact on the social and economic well-being of Afghan families.
 
6.International Aid and the Impact of Sanctions:
Afghanistan was highly dependent on international aid before recent political changes. This aid made up a significant portion of the government’s budget and development programs. However, following the Taliban’s takeover and the imposition of international sanctions, the country’s economic situation has come under immense pressure.
 
In 2024, international aid has sharply declined due to global concerns about human rights issues, the Taliban’s governance, and Afghanistan’s political situation. This has had a negative impact on infrastructure projects, development efforts, and humanitarian services. As a result, Afghanistan is relying less on foreign resources to address crises such as drought and food shortages.

The Consequences of Poverty

Poverty in Afghanistan not only has immediate negative effects on individuals’ daily lives but also has far-reaching implications for society, the economy, and the country’s future. Below are the most significant consequences of poverty in Afghanistan:
 
1.Economic Impacts:
  • Reduced Productivity: Poverty leads to limited access to education and skills, ultimately reducing productivity in the economy.
  • Increased Unemployment: The lack of decent job opportunities results in rising unemployment, one of the main drivers of poverty.
  • Weakened Investment: Economic instability discourages investors from entering Afghan markets, halting economic growth.
  • Emerging Economic Crises: Poverty can lead to economic and social crises that impose high costs on the government and society.
2.Social Impacts:
  • Rising Inequality: Poverty exacerbates social and economic inequalities, ultimately weakening social cohesion.
  • Crime and Violence: Poverty and limited access to economic opportunities may drive crime and anti-social behavior.
  • Public Health Decline: Poverty limits access to healthcare, which can lead to the spread of diseases and reduce the overall quality of life in society.
  • Lower Life Expectancy: People in impoverished areas typically have shorter life expectancies due to limited access to healthcare and inadequate nutrition.
3.Impacts on Education:
  • High Illiteracy Rates: Poverty is a major contributor to illiteracy. Lack of access to education limits job opportunities, perpetuating the cycle of poverty.
  • Declining Quality of Education: In impoverished conditions, education quality declines, and students may not be able to pursue higher education due to economic difficulties.
  • School Dropouts: Many students, especially in rural areas, leave school due to poverty and the need to contribute financially to their families.
4.Impacts on Women and Children:
  • Gender Inequality: Poverty disproportionately affects women and girls, reducing their access to education, healthcare, and job opportunities.
  • Domestic Violence: In conditions of poverty, the likelihood of domestic violence and abuse increases.
  • Child Malnutrition: Poverty leads to malnutrition in children, negatively impacting their physical and mental development and causing long-term problems.
 
5.Cultural Impacts:
  • Migration Culture: Poverty may foster a culture of migration and brain drain, further depleting the country’s talents and capabilities.
  • Erosion of Values: Poverty can erode societal values and norms, increasing social disorders.

Practical Solutions to Reduce Poverty in Afghanistan

Reducing poverty in Afghanistan requires comprehensive planning and the implementation of effective solutions at various social, economic, and political levels. Below are some strategies that could improve the economic and social situation of the Afghan people. These solutions involve both internal actions and international cooperation.
 
1.Develop Comprehensive Economic Programs:
 
  • Job Creation and Unemployment Reduction: One of the most significant causes of poverty in Afghanistan is widespread unemployment. Developing programs to create sustainable and appropriate jobs for different segments of society, including women and youth, can have a significant impact on poverty reduction. Promoting small and medium-sized enterprises in rural and urban areas, and encouraging entrepreneurship through government support and banking facilities, can help improve living conditions for many.
  • Support for the Private Sector: The growth and strengthening of the private sector is critical. Facilitating investment conditions for domestic and foreign entrepreneurs, reducing bureaucracy, and offering tax incentives to businesses can improve Afghanistan’s economic environment and create new job opportunities.
2.Improve Access to Education:
  • Public Education: Increasing access to education for all segments of society, particularly women and children in rural areas, is a key solution to reducing poverty. Promoting public education, especially at the primary and secondary levels, can help enhance individuals’ skills and abilities, providing them with better job opportunities.
  • Vocational Training: Another effective strategy for reducing poverty is enhancing vocational skills. Offering technical and professional training courses, particularly for youth and women, can prepare them for entry into the workforce and various industries.
3.Invest in Infrastructure:
  • Healthcare Infrastructure: Improving public health infrastructure and medical services to ensure access to healthcare in impoverished areas is critical. By increasing access to healthcare, the spread of diseases can be prevented, and healthcare costs reduced, easing the economic burden on families.
  • Economic Infrastructure: Investment in basic infrastructure such as roads, electricity, water networks, and public transportation systems not only improves people’s daily lives but also fosters economic growth and creates new job opportunities. Developing appropriate infrastructure can facilitate trade, tourism, and domestic production growth.
4.Focus on Women and Vulnerable Groups:
  • Support for Women’s Rights: Women in Afghanistan are among the most vulnerable groups in society. By removing social and economic restrictions against women, they can be integrated into the workforce as active participants. Improving women’s access to education, stable employment, and equal rights can play a crucial role in reducing family poverty. Furthermore, enhancing women’s rights through supportive and legal programs can improve their social standing.
  • Support Programs for Families: Creating support programs for low-income families and children, especially in rural and conflict-affected areas, is crucial. Financial aid programs, food distribution, and the provision of healthcare and educational services for children can reduce family poverty and improve their future prospects.
5.International Cooperation
  • Humanitarian and Development Aid: Requesting humanitarian aid and collaborating with international organizations such as the United Nations and relief agencies can help reduce poverty and improve living conditions for the Afghan people. These collaborations can be effective in areas such as healthcare, education, and infrastructure development.
  • Implementation of Development Projects: In addition to immediate humanitarian aid, implementing long-term development projects in partnership with international organizations can pave the way for sustainable economic growth in Afghanistan. These projects can include the creation of small industries, agricultural development, and technological advancement in various economic sectors.
6.Awareness and Cultural Promotion:
  • Workshops and Educational Programs: Holding workshops and educational programs to raise public awareness about poverty and how to combat it can play an important role in reducing poverty. Raising awareness about civil rights, women’s rights, and ways to access job opportunities can guide vulnerable groups toward economic independence.
  • Promoting a Culture of Solidarity and Social Support: Promoting a culture of solidarity and support for vulnerable individuals in society, especially in poor and rural areas, can strengthen empathy and cooperation among people. This cultural promotion can lay the foundation for the creation of social and charitable programs to support low-income families and those in need.

Conclusion

Reducing poverty in Afghanistan is a complex, multifaceted goal that requires cooperation between the government, the people, and the international community. Through the implementation of comprehensive economic programs, infrastructure development, education promotion, and support for vulnerable groups, poverty in Afghanistan can be reduced, improving the living conditions of its people. Additionally, revisiting extremist policies and enhancing international cooperation are crucial factors that can facilitate Afghanistan’s economic and social progress. With coordinated and sustained efforts, Afghanistan can move toward a brighter and more sustainable future.