Though transition has slowly started to impact the economy, Afghanistan’s main challenges go beyond the transition economics. Challenges to development in the post-transition period will be substantial; ranging from stubbornly high poverty and persistent conflict and violence, to increasing labor market pressures and low human capital. The decline in foreign aid and Afghanistan’s growing need for foreign exchange earnings underlines the importance of an appropriate growth strategy.
This presentation, made by the World Bank at the Senior Officials Meeting on July 3, 2013, confirms that agriculture and mining could be the two potential sources of an inclusive, high growth in Afghanistan in the transformation decade. However, vital issues such land, water and governance remain central to Afghanistan’s economic development.