Afghanistan crumbling economy set to deteriorate further under Taliban rule
Published 17 Aug,2021 via Arab News - Economy LONDON - Amid increased political criticism of Washington’s withdrawal from Afghanistan, concerns are intensifying about the potential economic fallout of the decision.
A World Bank report earlier this year said Afghanistan is dependent on international aidm which is equivalent to 22 percent of gross national income. That support is set to be drastically reduced now the Taliban is in complete control of the country.
Decades of political instability and insecurity mean there is little private sector development. The country’s illegal economy, which includes opium production, smuggling, and illegal mining, accounts for a significant share of exports and employment. Fears persist Afghan opium production will now increase, resulting in cheap heroin flooding Europe’s streets.
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