Afghanistan, 2017–2021—Achieving Inclusive Growth in a Fragile and Conflict-Affected Situation

Abstract

The insurgency in Afghanistan continues to shape the country’s development trajectory and adversely affects all aspects of life in Afghanistan. Economic growth has slowed considerably since 2014 and is not high enough to counter the country’s rapidly growing population, resulting in increased poverty. Afghanistan is also grappling with high numbers of internally displaced persons and the millions of refugees returning from neighboring countries, which place a greater strain on the already limited services and capabilities of the government. Insufficient infrastructure limits private sector activity and prevents greater access to basic services. The operating and development budgets are financed mainly by donor assistance because the government has low revenue-generation capacity. Conditions have improved since 2002 in some aspects of health and education, but gender disparity in Afghanistan remains among the highest in the world. Government capacity is improving but needs further support to make development assistance more effective.