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The United Nations says the economic collapse of Afghanistan is one of the worst in history

The United Nations predicts that Afghanistan’s gross domestic product will shrink by 20% within a year of the Taliban’s acquisition of the country, one of the worst economic collapses in history.

“”[It’s] Afghanistan’s representative of the United Nations Development Program and former Deputy Prime Minister of Syria, Abdullah al-Dardali, said: “I’m comparing to Venezuela, Lebanon, etc. I haven’t seen such a sharp drop.”

According to a UNDP report released Wednesday, such a reduction was expected to take five years for the civil war in Syria to reach and worsen to 30% next year.

The sharp economic decline highlights the vulnerability of the Afghan state, despite nearly two decades of US-led aid and billions of dollars in aid. The country wasn’t strong enough to withstand the impact of the recent Covid-19 pandemic. Drought According to the author of the report, hijacking of extremist Islamist groups.

UNDP predicts that per capita income in Afghanistan, already the poorest country in Asia, has fallen from $ 500 in 2020 to $ 350 next year, already down from its peak of $ 650 ten years ago. I am.

Economy Relied on foreign aid, UNDP said it accounts for 80 percent of budget spending.

Afghanistan’s foreign exchange reserves represent almost half of the country’s annual gross domestic product of $ 20 billion. Was frozen Immediately after Islamists took over this year, it caused a cash and liquidity crisis.

Hundreds of thousands of workers are paid for months, hospitals are on the verge of collapse, and nine out of ten Afghans are expected to fall below the poverty line by next year. .. More than half of the 39 million population Need food aid, About a quarter face “urgent” food insecurity and potential famine.

“Even in very bad situations like Lebanon, they have access to remittances from the Diaspora in Lebanon,” said Adnan Mazaray, an economist at the Peterson Institute for International Economics think tank and one of the authors of the report. increase. “In the case of Venezuela, there is still oil. Afghanistan is almost in its own class.

[In] A country that has been hit by a natural disaster. .. .. We could get out of some of these issues, “Mazaray added. “It’s not yet ready for Afghanistan.”

The crisis is so well-established that it’s too late to avoid a breakdown, the report author said, but measures such as unfreezing reserves and aid and providing cash transfers to families can help. Let’s go.

“Even if assets aren’t frozen, humanitarian aid doubles and triples, but it’s not enough to mitigate, not to mention avoiding the crisis we’re facing,” Bayroot said.・ Professor Zafiris Tzannatos of American University said. “Now we have fallen off a cliff. No matter how much we offer, there is a danger of becoming catastrophic.”

UNDP said the Taliban’s own policies exacerbated the collapse.

Group decision Limit women’s work and education According to the report, it will have serious financial costs. UNDP estimates that loss of employment for women can cost up to $ 1 billion, or 5% of GDP, and reduce productivity.

“If we didn’t invest in the human capital of half the population … and we would lose for years to come,” says Tzannatos.

The United Nations says the economic collapse of Afghanistan is one of the worst in history

Source link The United Nations says the economic collapse of Afghanistan is one of the worst in history

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