What is Afghanistan type of Economy?

Answer 1

The economy of Afghanistan is based on several key industries: NGO's, Drugs, and Agriculture. The NGO's are non-governmental organizations working in Afghanistan for the betterment and development of the country and people. The Afghan government graciously taxes NGO's and any other foreigners working in Afghanistan a 600% higher electricity rate, taxes on their income, taxes on the money brought in, as well as fees on all goods flowing into the country for NGO's to do their job. In other words, NGO activity, that is that activity that is being donated to Afghanistan, is taxed by the government. The Japanese government built a whole new airport in Kabul, the capital, and the Afghan Government wanted to tax the Japanese on the cost of construction! The Afghans finally backed down from the Japanese.

Drugs are the greatest part of the Afghan economy - the sale of opium brings in a lot of money. This is why so many are corrupt within the government.

Finally, Afghanistan has a lot of Natural Resources and the promise of being able to develop many of these, should peace ever come. It is a great climate for growing numerous crops, including roses, pomegranate's, wheat, rye, soybeans, melons, citrus fruits, all kinds of vegetables and other fruits, sheep, cattle, camels, and goats. The problem is the war and insecurity, as well as the infrastructure which does not allow resources to be moved quickly around the country as well as exported.

Answer 2

Afghanistan is a poverty stricken country due to war, corruption and mis-management, however it does have an agricultural sector that grows cotton, tobacco, castor beans and sugar beets. Sheep farming is also popular and wool and sheep skins are major exports. Afghanistan is rich in natural resources like minerals ands precious stones, natural gas and some petroleum but so far they relatively untouched. Opium still remains the largest cash producing crop.

Answer 3

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