The Challenges to Nation-Building

in Afghanistan continues.......

Peace agreements create high expectations for economic improvements yet continuing gaps between high expectations and existing realities become a major source of social unrest. The huge challenge for reinstating economic development in societies where development has been halted by violent conflicts lies in the lack of human capital (both skilled and

unskilled labour) and the destruction of physical infrastructure. It takes

significant time to rebuild systems of transport and communication, banking, healthcare, education, and agriculture that have been damaged by conflict. In addition, inadequate distribution of land and other resources weakens a community’s ability to recover from war wounds.

Prospect of early economic recovery suffers a setback due to environmental degradation resulting from the conduct of war and consequent population movements. In countries that have endured long Civil Wars, local communities bear a major share of the costs of repopulation and other economic recovery activities, given the national government’s indebtedness that stems from high military spending, argues Jeong. It is also often the case that due to low domestic capacity for raising revenue and high demands for expenditure, foreign donors with financial resources play a significant role in economic recovery.

Economic development is very closely connected to political transition

and security. While economic growth is not sustainable without a lasting

peace, economic instability is one of the main obstacles to democracy. In

most peace-building packages, major attention is devoted to reforms

oriented towards a market economy and he establishment of liberal

economic policies and such a reform programme is often a condition

attached to international assistance.

To be continued.......