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Over
the past 23 years, loss of labor - mainly those who left the
country to escape the war, loss of capital, the disruption
of trade and transport, and three years of severe drought,
which is predicted to last a fourth year, have substantially
reduced Afghanistan's gross domestic product and sapped the
nation's will to recover.
- Inflation
remains a serious problem throughout the country and some
warlords have added another layer of complexity to the country's
already frail economy as they print their own regional currencies.
- While
agriculture contributes about 60% of GNP and 77% of export
income, years of war and the current drought have severely
curtailed the production of Afghanistan's primary export
items such as: fresh and dried fruits and vegetables, oilseeds,
hides and skin, including Karakul skins, wool, raw cotton,
and carpets and rugs.
- Pre-war
figures indicate that up to 30% of the population engaged
in non-agricultural activities such as factory work, handicrafts,
or trade, while others were civil servants, teachers and
doctors.
- Total
exports in 1989 amounted to just US$433 million, having
fallen 15 percent in dollar terms, while imports stood at
US$900 million, down by 10 percent in value from the previous
year.
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US-ARC
intends to work with Afghan farmers, merchants, factory workers,
and handicraft producers to increase output.
- Workers
will be trained in the latest techniques and equipped with
the necessary tools to help them successfully implement
techniques to develop natural resources
- Necessary
and appropriate equipment will be provided to enhance production.
- Vocational
training centers will be created to train workers who can
in turn train others.
- Local
banks will be established and efforts made to gain the people's
confidence in a reliable banking system.
- Mineral
development and mining projects will be developed to utilize
Afghanistan's natural resource and meet world demand for
those resources
US-ARC
intends to introduce micro-finance and revolving funds and
develop credit institutions to facilitate local investment
and savings.
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When
designing commerce related projects, US-ARC will seek the
collaboration of key stakeholders, such as the local business
community members, and establish partnerships with other local
and international NGOs that have successful track records
in this sector. US-ARC will provide training in effective
business practices and management. We will work to create
markets, both locally and abroad, and insist on fair trading
practices. We will encourage vocational schools to provide
school to work programs, while working to strengthen the business
community's capacity through various cooperative approaches
and profit sharing mechanisms to benefit all those involved.
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Projects 