The Troubling Reality Of Afghanistan's Poverty: A Country In Need

how is afghanistan a poor country

Afghanistan is one of the poorest countries in the world. Decades of conflict, climate change, and the recent takeover by the Taliban have all contributed to the country's economic collapse. The poverty line in Afghanistan is defined as an income of 70 Afghanis per day, which is equivalent to about 1 US dollar. According to the Afghanistan Living Conditions Survey (ALCS), the national poverty rate increased from 38% in 2011-2012 to 55% in 2016-2017. The report also found that over half of the population lives on less than $1 per day. The recent rise in poverty rates can be attributed to a stagnating economy, with slow economic growth and a deteriorating security situation.

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The impact of conflict and climate change

Afghanistan has been ravaged by conflict and political instability for decades. The country has been a warzone since the US-led invasion in 2001, which ousted the Taliban regime. The Taliban continued to wage an insurgency against the Western-backed government, and in 2021, they recaptured power. The Taliban's takeover has had a profound impact on ordinary Afghans, with mass unemployment, a collapse of the housing market, and increased rates of malnutrition. The economy has been on life support, with the banking sector paralysed by sanctions and the country unable to engage with the international financial system. The value of Afghanistan's currency has plummeted, raising the cost of imports and exacerbating inflation.

The war has destroyed lives, leading to a breakdown of the economy, public health, security, and infrastructure. 92% of the population faces some level of food insecurity, and 3 million children are at risk of acute malnutrition. Some regions are currently facing famine. The war has also inflicted invisible wounds, with two-thirds of Afghans suffering from mental health problems.

The conflict has also led to widespread displacement, with 4.3 million internally displaced persons (IDPs) as of the end of 2021. Years of conflict and political instability have been compounded by the effects of climate change, including severe drought and flooding. Afghanistan is highly vulnerable to the impacts of climate change, with nearly 70% of the population living in rural areas and 80% of livelihoods directly or indirectly dependent on agriculture. Climate change has increased the frequency and intensity of natural disasters and extreme weather, elevating the population's exposure to food shortages.

The combination of conflict and climate change has had a devastating impact on Afghanistan, leading to economic collapse, widespread displacement, and a dire humanitarian crisis. The country faces severe food insecurity, with almost half of the population considered acutely food insecure as of May 2022. The lack of investment in agriculture and the impacts of climate change have left farmers vulnerable to disaster, with crops and arable land destroyed by droughts and flash floods.

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Food insecurity and malnutrition

Afghanistan is facing a food insecurity and malnutrition crisis of "unparalleled proportions". The country is experiencing some of the worst food insecurity in the world, with 40% of the population facing acute food insecurity—the fourth-highest figure globally.

The crisis is driven by several factors, including conflict, population displacement, civil unrest, armed group activity, recurring natural disasters, and economic collapse. The recent Taliban takeover has exacerbated these issues, causing job losses, cash shortages, and soaring prices. The loss of foreign aid and the freezing of international reserves have also contributed to the crisis.

The consequences of food insecurity and malnutrition are severe, particularly for children and pregnant and breastfeeding women. Malnutrition rates among children are extremely high, with 41% suffering from stunting and 9.5% from wasting—the extreme manifestation of severe acute malnutrition. Many infants and children die each year due to inadequate nutrition, and those who survive are more likely to contract diseases, less likely to receive basic healthcare, and perform poorly in school.

The situation is even more dire in female-headed households, with almost 100% not getting enough to eat. The exclusion of women from the workforce under the Taliban further exacerbates food insecurity, as it removes their incomes and restricts food supplies at a time when they are desperately needed.

To address the crisis, humanitarian partners have provided life-saving and life-sustaining food assistance to millions of people. The World Food Programme (WFP) is playing a crucial role in providing food assistance and has appealed for urgent funding to reach those in need. However, a sustained and large-scale humanitarian response is necessary to tackle the unprecedented scale of the crisis.

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Lack of economic growth and foreign investment

Afghanistan's economy has been stagnant since the Taliban's takeover in 2021, and the country now faces a severe economic crisis. The lack of economic growth and foreign investment is due to various factors, including:

  • Decreased Foreign Aid and Investment: The Taliban's return to power has resulted in the suspension of most non-humanitarian foreign aid and investment. The country has lost access to the international banking system and foreign exchange reserves, causing sharp declines in investment confidence.
  • Ineffective Government Policies: The Taliban's policies, such as restrictions on women's education and employment, have hindered economic growth. The ban on women working has been identified as the biggest obstacle to future economic growth.
  • Security Concerns: The ongoing conflict and security concerns have deterred business investors and disrupted economic activities, making it challenging for the country to attract foreign investment.
  • Lack of Infrastructure: Afghanistan needs to invest in infrastructure, particularly in the agricultural sector, to improve productivity and market access. This includes investments in irrigation infrastructure, land tenure security, and market access.
  • Inefficient Natural Resource Management: Despite possessing extensive natural resources, Afghanistan has struggled to capitalize on them due to a lack of transport infrastructure, a developed electricity grid, and technical expertise.
  • Ineffective Governance: The Afghan government has been criticized for its irregular implementation of legal and regulatory frameworks, inconsistent application of customs duties, and corruption. These issues create an uncertain business environment and hinder foreign investment.
  • Limited Human Capital: Afghanistan suffers from a shortage of skilled labor, qualified managers, and educated professionals. This limits the country's ability to attract foreign investment and develop its economy.

Addressing these issues is crucial for Afghanistan to stimulate economic growth, attract foreign investment, and improve the livelihoods of its people.

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Inequality and lack of access to basic services

Afghanistan is one of the poorest countries in the world, with poverty widespread in both rural and urban areas. In 2016, 54.5% of the population lived below the national poverty line. The poverty line is defined as an income of 70 Afghanis a day, equivalent to roughly $1.

The Taliban's policies have also had a detrimental impact on the country's economy and basic services. Their restrictions on women's employment and education have contributed to the failing economy, resulting in economic losses of up to $1 billion, or about 5% of Afghanistan's GDP. The Taliban's takeover has also disrupted the delivery of essential public services, with the government cutting spending on social services by 81% in 2022.

Access to healthcare is a significant issue in Afghanistan. While the number of health facilities has increased over the years, many Afghans still face barriers in accessing affordable and properly functioning health services, especially in rural areas. The ongoing armed conflict and insecurity hinder access to clinics, and the fees charged by the supposedly 'free' system are often unaffordable for the poor. The lack of skilled female personnel, particularly in rural areas, further exacerbates the challenges in accessing healthcare, especially for women.

The situation is particularly dire for children, who are highly vulnerable to grave violations such as recruitment into armed groups, sexual violence, school drop-out, and unsafe migration. The indefinite suspension of girls' secondary and tertiary education has severely impacted their right to education and exposed them to heightened risks of violence and harmful traditional practices.

Overall, inequality and lack of access to basic services, including education and healthcare, are critical factors contributing to Afghanistan's status as a poor country.

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Poor health and low life expectancy

Afghanistan has a low life expectancy compared to other countries in South Asia. In 2024, the average life expectancy for Afghans is 66.25 years, a slight increase from 2023. However, in 2021, the average life expectancy was 61.98 years, marking the second consecutive year of decline.

The life expectancy for Afghan women is higher than for men. In 2021, the life expectancy for women was 65.28 years, while for men, it was 58.92 years. This difference is mainly due to mortality patterns at birth, which result in higher death rates for male newborns.

Several factors contribute to the low life expectancy in Afghanistan:

  • Poor healthcare infrastructure: Afghanistan has a limited number of physicians, with only 0.25 physicians per 1,000 people. This lack of medical resources makes it difficult for Afghans to access quality healthcare services.
  • Malnutrition and food insecurity: Many Afghans lack access to adequate nutrition, leading to malnutrition and stunted growth in infants and children. Food insecurity is a significant issue, with 40% of the country's population facing acute food shortages.
  • Limited access to clean water and sanitation: Only 61.4% of the population has access to improved sanitation facilities, and 76.5% have access to improved drinking water sources.
  • Infectious diseases: Afghanistan is one of the two countries with endemic wild polio, posing a high risk of disease spread internationally. Other common infectious diseases include bacterial diarrhea, hepatitis A, and typhoid fever.
  • Lack of education: Education plays a crucial role in promoting health literacy and healthy behaviors. However, Afghanistan has a low literacy rate, with only 37.3% of the population being able to read and write.
  • Poverty: Poverty is widespread in Afghanistan, with 54.5% of the population living below the national poverty line. Poverty limits access to basic necessities, such as nutrition, healthcare, and education, all of which contribute to low life expectancy.
  • Security situation: The security situation in Afghanistan has deteriorated, with ongoing conflicts and civil wars. This instability disrupts access to healthcare services and increases the risk of injuries and deaths due to violence.

Frequently asked questions

There are several factors contributing to poverty in Afghanistan. Firstly, the country's economy has been stagnating or contracting, with a severe GDP contraction of 20.7% in 2021 and a further contraction of 6.2% in 2022. This has resulted in higher prices, reduced demand, lower employment, and disruptions to services. Additionally, Afghanistan's economy is heavily reliant on foreign aid, which has been falling in recent years and is expected to dry up under Taliban rule. The Taliban's restrictions on women's education and employment further hinder economic growth, as women's inclusion in the economy and society is crucial for a sustainable future. Furthermore, the country faces structural deficiencies in the private sector, a lack of investment in infrastructure, limited access to markets, and various productivity constraints. Finally, Afghanistan is vulnerable to natural disasters and the impacts of climate change, such as droughts and violent flooding, which exacerbate the challenges posed by food insecurity and displacement.

Poverty in Afghanistan has severe consequences for the population. According to the Afghanistan Living Conditions Survey (ALCS), over half of the population lives on less than a dollar a day. This has led to food insecurity, with 40% of the country facing acute food insecurity and children being at particular risk of starvation, malnutrition, and hunger. Additionally, poverty has resulted in limited access to basic services such as health and education. The lack of access to safe drinking water and sanitation further exacerbates health risks. Poverty is also associated with higher unemployment and underemployment, with many people resorting to the agricultural or informal sector for income.

Efforts are being made by various organizations to address poverty in Afghanistan. The World Bank, in coordination with international partners and donors, is providing critical support in the areas of health, education, food security, and livelihoods. The Afghanistan Resilience Trust Fund (ARTF) has played a key role in delivering humanitarian aid and basic services. The International Rescue Committee (IRC) is also responding to the humanitarian emergency by providing healthcare, education, and emergency response services. Additionally, the Oxford Poverty and Human Development Initiative is working with the Central Statistics Organization and the United Nations Children's Fund of Afghanistan to aid the Afghanistan government in creating policies and budgets to alleviate child poverty. However, despite these efforts, Afghanistan's economic outlook remains uncertain, and structural reforms and sustainable solutions are needed to address the root causes of poverty in the country.

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