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The economy of Afghanistan has essentially failed, according to the United Nations Development Programme (UNDP).
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The economy of Afghanistan has essentially failed, according to the United Nations Development Programme (UNDP).

During her trip to the country, Kanni Wignaraja, the Director of UNDP’s Regional Bureau for Asia and the Pacific, stated to reporters in New York that 69% of the Afghan population is considered “subsistence insecure,” indicating that they lack basic resources.

She stated that the severe consequences of ongoing natural disasters were very impactful to her. Additionally, she mentioned that numerous parts of Afghanistan are experiencing an alarming lack of water, which is hindering progress in development.

Lights out

The UNDP reported a 27% decline in the Afghan economy since the Taliban gained control in 2021, resulting in economic stagnation. Unemployment has also doubled and only 40% of the population has access to electricity.

Industries like finance have essentially crumbled, and there are no significant drivers of economic growth, such as exports or government spending. This puts the pressure on small and medium businesses (SMEs) and farmers to sustain the struggling economy.

The economy, households, and interconnected sectors in Afghanistan.

became illegal

Restrictions on female education were made illegal.

She expressed worry about the state of women and girls.

The Taliban has enforced strict limitations on women, including rules for their clothing and job opportunities in different fields.

According to Ms. Wignaraja, although they are able to work freely in fields like healthcare and nursing, their job opportunities in the public sector have decreased significantly to approximately 6%.

“The main obstacle is the ongoing ban on girls’ education. Being inhibited from advancing past the sixth grade poses a significant barrier,” she remarked.

“None of the female students from the previous year successfully completed twelfth grade. Therefore, how are they expected to transition from sixth grade to attending technical colleges or universities in order to pursue a career in the medical field?” she exclaimed.

Local economy reeling

The UNDP representative also acknowledged the difficulties that local economies are struggling with and the scarcity of funds, particularly in the private industry.

The UNDP is providing assistance to microfinance projects, but there is a lack of funding causing limited impact on stimulating growth.

She expressed optimism that the recent World Bank funding for climate initiatives could encourage other international investments in climate-related projects.

She stated that we can continue to collaborate with the community in order to achieve this goal.

Situation in Herat

Ms. Wignaraja traveled to Herat province, the location of the major earthquakes in October.

As she observed, the difference is striking as she traveled through various villages and conversed with the locals. While some villages continue to reside in tents and lack basic resources like water, others have begun constructing more permanent dwellings.

She stated that ultimately, we need to allow household and local economies to recover. Living in tents is not desirable and it’s impossible to survive sandstorms in tents.

Supporting women-led business

In summary, the representative from UNDP emphasized the organization’s assistance to 75,000 small businesses that are owned and operated by women.

She mentioned that each person they employ typically supports six women and young individuals. Furthermore, each of these employed individuals provides for a household consisting of ten people. Overall, approximately 4.5 million people reap the benefits.

“We spend on average $42 a month per women’s business – that’s it,” she added, underscoring the resilience and boldness of women entrepreneurs.

According to her, UNDP has helped twenty-five percent of women in Afghanistan by providing aid to female farmers and traders, as well as implementing household social protection programs and offering direct financial support.

Their bravery and determination will revive the history of this nation, she concluded.

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