Afghanistan’s fragile economy

Afghanistan ranks as one of the most at-risk, fragile economies in the world. Poverty is endemic, as is underdevelopment, because of long-term, high-intensity conflict, according to the World Bank. And that was before the COVID-19 pandemic. The other countries on this short, grim list include the Central African Republic, Libya, Somalia, South Sudan, Syria and Yemen.

Afghanistan has 37 million people, with 46% of the population under 15 years of age, which means about half of the population has no memory of previous Taliban rule. The last time the "Emirate" ran things, there was no internet there. What this means is unclear, but at a minimum the population, especially in urban areas, is aware of and connected to the world. That could be a source of stress or instability, especially given an economy in dire straits.

Nearly half (47.3%) of Afghans live in poverty. According to the Asian Development Bank, the official unemployment rate is 11.7% (it’s probably higher), and 34.3% of those who are working make less than $1.90 per day.