Monday, November 29

Afghanistan: the chilling illegal dimension of the country’s economy

  • Norberto Paredes @norbertparedes
  • BBC News World

Freight trucks prepare to head towards the Afghan border crossing at Chaman.

Image source, Getty Images


The collection of illegal taxes to allow the passage of goods generates millions in Afghanistan.

Afghanistan’s economy is “shaped by its fragility and dependence on aid,” says a World Bank report released earlier this year.

Although after two decades of the fall of the Taliban, living conditions in Afghanistan had improved, as well as its education and health system, the leaders never managed to strengthen the country’s formal economy or end its dependence on foreign aid, which finances the 75% of public spending.

Now, with the Taliban back in power, economic prospects son yet worst.

Foreign money is expected to stop flowing, hitting the state coffers hard. In 2019, the World Bank estimated that such aid was equal to 22% of its gross national income.

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