Deeply concerned” though, World Bank halts aid to Afghanistan

“Deeply Concerned” Though, World Bank Halts Aid to Afghanistan

The word “Afghanistan” is no more merely a country name, it has become the top headline of every news article. Afghanistan has become the latest buzz globally. Every other day stories of Afghan and Afghanis terror conditions break the headlines.  People of Afghanistan are either fleeing away or fighting for their survival in the country after the Taliban encroachment. Just after the COVID -19 pandemic conditions had reduced globally, Afghan had a new challenge of terror to face. The Afghan government collapsed as soon as the Islamic militant group took up administration in their control along with US military withdrew the troops nearly two decades later.

The World Bank in Afghanistan

The biggest economic challenge in Afghanistan is searching for sustainable resources for growth. World Bank has disbursed more than 5.3 billion dollars for its development, additionally, the Bank-administered Afghanistan Reconstruction Trust fund has upraised more than 12.9 billion till date. Afghanistan’s economy is extremely fragile and aid-dependent where the private sector is incredibly limited with work packed in low-productivity agribusiness, 44% of the total population is engaged in agriculture, and the remaining 60% tribes derive income from other cultivation. Due to lack of security, political instability, inadequate infrastructure, corruption, fragile institutions, and strenuous business surroundings, private sector development and heterogeneity are constrained. The total economy and private sector is weak with all constraints. Weak economic condition drives structural trade deficit upto 30% of GDP, high security expenditure, illegal exports like opium and illegal mining smuggling, all these reasons are the biggest hindrance for the growth of the country.

With World Banks influx of financial aid back 2002, Afghanistan has sustained the growth and is showing rapid improvement. Between the years 2003 to 2012 Afghanistan has shown spike rise in irrigation. There has been shift in the commercial and industrial development between the years 2015-2020. Although, provisions done by World bank, political instability worsened the security resulting in formation of National Unity Government under an extra-constitutional power-sharing agreement. This led to administrative disruptions and slowed reform progress. As a result, at Geneva conference held in November 2020, World Bank with other donors renewed and extended their support to Afghanistan for 2021-2024.

The World Bank aid suspension in Afghanistan

With the intervention of Taliban in August 2021, The World Bank has paused further funding for projects in Taliban occupied Afghanistan quoting deep concerns over Taliban’s impact on the development of country’s prospects, specifically with women. The World Bank officials also mentioned that they will be closely monitoring and assessing the state of affairs. Along with World Bank International Monetary Fund (IMF) has suspended the aid as well. The IMF was grant around 440 million dollars till August 23, 2021.

Yet, amidst the crisis, there are several other organisation which “Deeply concerned” though, World Bank halts aid to Afghanistan

The word “Afghanistan” is no more merely a country name, it has become the top headline of every news article. Afghanistan has become the latest buzz globally. Every other day stories of Afghan and Afghanis terror conditions break the headlines. People of Afghanistan are either fleeing away or fighting for their survival in the country after the Taliban encroachment. Just after the COVID -19 pandemic conditions had reduced globally, Afghan had a new challenge of terror to face. The Afghan government collapsed as soon as the Islamic militant group took up administration in their control along with US military withdrew the troops nearly two decades later.

The World Bank in Afghanistan

The biggest economic challenge in Afghanistan is searching for sustainable resources for growth. World Bank has disbursed more than 5.3 billion dollars for its development, additionally, the Bank-administered Afghanistan Reconstruction Trust fund has upraised more than 12.9 billion till date. Afghanistan’s economy is extremely fragile and aid-dependent where the private sector is incredibly limited with work packed in low-productivity agribusiness, 44% of the total population is engaged in agriculture, and the remaining 60% tribes derive income from other cultivation. Due to lack of security, political instability, inadequate infrastructure, corruption, fragile institutions, and strenuous business surroundings, private sector development and heterogeneity are constrained. The total economy and private sector are weak with all constraints. Weak economic condition drives structural trade deficit upto 30% of GDP, high-security expenditure, illegal exports like opium and illegal mining smuggling, all these reasons are the biggest hindrance for the growth of the country.

With World Banks influx of financial aid back in 2002, Afghanistan has sustained the growth and is showing rapid improvement. Between the years 2003 to 2012 Afghanistan has shown a spike rise in irrigation. There has been a shift in commercial and industrial development between the years 2015-2020. Although, provisions done by World Bank, political instability worsened the security resulting in the formation of the National Unity Government under an extra-constitutional power-sharing agreement. This led to administrative disruptions and slowed reform progress. As a result, at Geneva conference held in November 2020, World Bank with other donors renewed and extended their support to Afghanistan for 2021-2024.

The World Bank aid suspension in Afghanistan

With the intervention of the Taliban in August 2021, The World Bank has paused further funding for projects in Taliban-occupied Afghanistan quoting deep concerns over the Taliban’s impact on the development of the country’s prospects, specifically with women. The World Bank officials also mentioned that they will be closely monitoring and assessing the state of affairs. Along with World Bank International Monetary Fund (IMF) has suspended the aid as well. The IMF has granted around 440 million dollars till August 23, 2021.

Yet, amidst the crisis, there are several other organisations that are lending a helping hand to the refugees, and asylum seekers in Afghanistan are lending a helping hand for the refugees, and asylum seekers in Afghanistan.

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