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Afghanistan. - Forced Migration Online

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and are often exported to neighboring Pakistan. Many farmers migrate to Pakistan in search of<br />

employment during the winter months. <strong>Afghanistan</strong> is rich in natural resources, such as<br />

precious minerals, natural gas and untapped petroleum stores. Some of these resources have<br />

been exploited, others have not.<br />

There are extreme disparities between regions and between rural and urban areas. During the<br />

fighting, some regions benefited from open borders and cross-border trading, either in contraband<br />

substances or trade in ‘big ticket’ items such as electronics and tires. Before the war, the<br />

government tightly controlled the economy, setting up government monopolies in petrol,<br />

wheat and other essential commodities. State economic planning has had little impact in the<br />

rural areas, where 80 per cent of the population reside. The Afghan economy is in the initial<br />

stages of being rebuilt and the informal economy continues to represent a large part of the<br />

economy, an estimated 80-90 per cent. This makes it difficult for the government to collect<br />

taxes and raise its own revenues, which are desperately required to cover both recurrent costs<br />

and development investment. Indeed, domestic revenue is collected on perhaps only 5 per<br />

cent of GDP, which represents one of the lowest levels in the world. The economy is being<br />

restructured in an effort to revise tax structures. The country’s currency, the Afghani, has<br />

been reformed to bolster the economy and unify the country, as previously two currencies had<br />

existed. Long term planning efforts will be aimed at increasing cereal production, livestock<br />

production and exploit natural resources in a sustainable manner. Economic progress is slow<br />

due to limitations on the attraction of foreign investment, lack of a financial regulatory<br />

environment and poor security in general. Corruption and weak, or even dysfunctional,<br />

institutions also prevent economic growth and investment. Domestic revenue in 2005/06 was<br />

around USD 330 million while foreign aid was approximately USD 3 billion, an indication of<br />

the extent to which <strong>Afghanistan</strong> remains dependent on external assistance.<br />

Websites:<br />

Afghan <strong>Online</strong><br />

U.S. Department of State<br />

Department for International Development, UK<br />

Brookings Institute<br />

United Nations Office on Drugs and Crime<br />

3.0 Causes and consequences of forced migration<br />

3.1 Conflict-induced displacement<br />

For more than two decades, successive wars in <strong>Afghanistan</strong> have resulted in one of the<br />

world’s largest refugee crises. In the late 1980s, prior to the withdrawal of Soviet troops, there<br />

were more than 6 million Afghan refugees. Despite the establishment of a new government<br />

and the presence of multi-national force under NATO, conflict within parts of the country<br />

continues to generate conflict-induced displacement.<br />

3.1.1 The Soviet era (1979 – 89)<br />

By the 1960s, rural-urban migration increased with developments in new roads and national<br />

development. During the Soviet occupation, IDPs fled their villages for the relative safety of<br />

major cities such as Kabul, Ghazni, Jalalabad and Mazar-e-Sharif. The population of Kabul<br />

increased by 100 percent in less than a decade. This situation changed when in 1992 when the<br />

mujahudeen entered Kabul.<br />

In December 1979, the Soviets invaded <strong>Afghanistan</strong> and unleashed a ‘wave of terror’ on the<br />

17

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