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Consequences of conflict in Afghanistan continues.....
In sum, Afghanistan’s economic structure has been gravely weakened, distorted, and made more vulnerable through decades of conflict. Agriculture (including livestock), which was the most important economic activity, remained highly vulnerable to natural conditions.
Trade activities were vulnerable to the policies of the neighboring countries, most notably that of Pakistan. Remittances, another major source of income, tended to be more stable, but they were vulnerable to changes in economic conditions in the source countries. The Taleban’s complete ban on opium poppy cultivation, which was a positive move and was largely effective, had sharply reduced the incomes of those small farmers and rural wage laborers who were dependent on poppy cultivation and related work. This short-lived Taliban ban on opium cultivation in 2001 brought the production to a record low of 185 metric tonnes that year, compared to 3,276 metric tonnes in 2000. It also caused a 20-times price increase, from an average of $30 in 2000 to $700 in 2001 per kilo, prompting massive resumption of cultivation in 2002. Foreign aid, another important albeit smaller source of income had increased sharply in the wake of the drought but also is subject to fluctuations and severe logistical constraints. The ongoing conflict has led to a transformation of social and economic networks. Although the majority of the territory of Afghanistan has not been constantly at war, economic distortions and vulnerabilities affect the entire country, and there was a pervasive sense of insecurity.
To be continued.....