Thursday, November 18, 2004

Economic recovery in Afganistan

The UN released a report today on opium production in Afganistan:
Afghan annals will record 2004 as contradictory. On the one hand, the political progress towards democracy culminated in the near plebiscite election of President Karzai – the country’s first-ever leader chosen by the people – whose courage and determination I salute. On the other hand, opium cultivation increased by two-thirds, reaching an unprecedented 131,000 hectares. Bad weather and disease lowered the opium yield per hectare resulting in output of 4,200 tons, an increase of only 17%, thus preventing a bumper harvest. Opium cultivation also spread to all 32 provinces -- making narcotics the main engine of economic growth and the strongest bond among previously quarrelsome populations. Valued at $2.8 billion, the opium economy is now equivalent to about 60% of Afghanistan’s 2003 GDP ($4.6 billion, if only licit activity is measured).
Apparently, along with the growth in the crop has come a reduction in price (down 67%). I admit I don't know much of anything about economic matters (I've tried; I really have but it's like water off a duck's back in my brain), but it just seemed worth noting here if only for the sadness of the ways economies try to rebuild themselves.

The BBC has more:
Doris Buddenberg runs the United Nations Office for Drugs and Crime in Afghanistan.

She says many farmers have little option.

"Afghanistan is a very poor country and particularly through the war the rural areas were very affected," she says.

"They need cash for very simple goods and needs, school books for children, clothing, tea which is a staple here. Opium is the cash crop."

Growing opium is a low-risk occupation and selling it is rarely punished by the authorities.

No comments: