Corruption Plagues Growth in Afghanistan

Global Business

According to the World Bank, aid to Afghanistan has led to remarkable growth in the country’s economy, which has expanded from $2.4 billion to an estimated 20 billion U.S. dollars between 2003 and 2012, an average rate of more than nine percent a year. The aid and growth have had a positive effect on the country in areas such as education and healthcare. Michelle Makori explains.

Afghanistan remains one of the most aid-dependent countries in the world and relies on foreign contributions to fund 60 percent of its budget to offset its trade deficit. Despite foreign aid, Afghanistan remains one of the poorest countries in the world with nine million living in poverty. While more than 60 percent of the people have access to clean water, only a third have access to electricity.According to the World Bank, the uncertainty surrounding Afghanistan’s stability has led to a slowdown in the country’s economic growth.

After an expansion of more than 14 percent in 2012, growth fell to just 3.1 percent last year. Corruption is likely to affect Afghanistan.Transparency International’s 2013 “Corruption Perception Index” ranks Afghanistan as the world’s third most corrupt countries after North Korea and Somalia. In 2012, at a donors’ conference in Japan, the international community pledged four billion U.S. dollars a year in developmental aid for Afghanistan through 2017, but on condition that Kabul reins in corruption before receiving all of the money. Meeting that condition will depend, in part, on the outcome of this election. CCTV’s Michelle Markori reports.

Corruption Plagues Growth in Afghanistan

Corruption Plagues Growth in Afghanistan

In 2012, at a donors' conference in Japan, the international community pledged four billion U.S. dollars a year in developmental aid for Afghanistan through 2017, but on condition that Kabul reins in corruption before receiving all of the money. Meeting that condition will depend, in part, on the outcome of this election. CCTV's Michelle Markori reports.
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