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July 06, 2008
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Country Profiles
Afghanistan Afghanistan Flag

Brief History    Geography & Demographics    Water & Sanitation    Economy
Trade & Industry    Business    Holidays    Travel    Links
________________________________________________________________________

Afghanistan Map

Official Name: Islamic State of Afghanistan
Capital: Kabul
Population: 26 million
Major language: Pashto, Dari (Persian)
Major religion: Islam
Monetary unit: 1 Afghani = 100 puls
International dialing code: +93
Main exports: Fruit and nuts, carpets, wool, opium

Brief History:

Afghanistan is an ancient country. Kabul rose to prominence in 1504, when it was made the capital of the Moghul Empire by the conqueror Babur. Delhi replaced it as the imperial capital in 1526, but Kabul remained an important Moghul center until the Persian ruler Nadir Shah captured it in 1738. In 1747 Kabul became part of an independent Afghan state, and in the 1770s it replaced Qandahar as the capital of Afghanistan.

The history of Afghanistan has been closely tied to that of Persia, India and Russia, all of which Afghanistan has regularly been in conflict with. Contact with Britain came about in the early 1800s: the British invaded Afghanistan twice in the following years and were ignominiously chased out both times. Although no country succeeded in pacifying the fractious Afghans, the Russian and British Imperial powers both competed for influence in Central Asia.

It was not until the 1919 Treaty of Rawalpindi that Britain recognized Afghanistan's independence. During the 1920s King Amanullah brought about the modernization of industry and trade, education and communications. He also signed treaties with Iran and Turkey that settled their various long-standing differences. However, political stability at home proved elusive and King Amanullah was overthrown in a coup, one of a series that did not come to an end when King Zahir Shah took power in 1933. Under his rule, Afghanistan confirmed its traditional regional policy of non-alignment, endeavoring once again to steer an even course between British-controlled India and Russia.

Afghanistan was invaded and occupied by the Soviet Union in 1979. The USSR was forced to withdraw 10 years later by anti-communist mujahidin forces supplied and trained by the US, Saudi Arabia, Pakistan, and others. Fighting subsequently continued among the various mujahidin factions, but the fundamentalist Islamic Taliban movement had been able to seize most of the country.

From the mid-1990s the Taliban provided sanctuary to Usama bin Laden, a Saudi national who had fought with them against the Soviets, and provided a base for his and other terrorist organizations. Bin Laden and al Qaeda are believed to be responsible for the September 11, 2001 terrorist acts in the United States, among other crimes. Following the Taliban's repeated refusal to expel Bin Laden and his group and end its support for international terrorism, the U.S. and its partners in the anti-terrorist coalition began a campaign on October 7, 2001, targeting terrorist facilities and various Taliban military and political assets within Afghanistan. Under pressure from the U.S. and the anti-terrorist air power and anti-Taliban ground forces, the Taliban disintegrated rapidly and Kabul fell on November 13. The anti terrorist coalition forces upon the collapse of the Taliban set up a Unity Government (composed of the various Tribal factions) headed by Mr. Hamid Karzai On April 18, 2002, the former King Zahir Shah returned to Kabul after an exile of 29 years. The 88-year former monarch will fill a symbolic role of national unity in opening the Loya Jirga a Tribal grand council made up of tribal leaders and other elders. For centuries Afghanistan has convened loya jirgas to choose new kings, adopt constitutions, and decide important political matters and disputes. This quasi-democratic process has been relatively representative of Afghanistan's population. The Loya Jirga elected Hamid Karzai to head the Transitional Government it had been called on to create.

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Geography:

Location: Southern Asia, north and west of Pakistan, east of Iran
Area: Total: 647,500 sq km   Land: 647,500 sq km   Water: 0 sq km
Land Boundaries: Total: 5,529 km
Border countries: China 76 km, Iran 936 km, Pakistan 2,430 km, Tajikistan 1,206 km, Turkmenistan 744 km, Uzbekistan 137 km
Natural Resources: natural gas, petroleum, coal, copper, chromite, talc, barites, sulfur, lead, zinc, iron ore, salt, precious and semiprecious stones
Environmental Issues:soil degradation; overgrazing; deforestation (much of the remaining forests are being cut down for fuel and building materials); desertification

Demographics:

Population   25,838,797
Age Structure   42.37% 0-14 yrs; 54.86% 15-64 yrs;    2.77% 65 yrs+
Population Growth Rate   3.54%
Birth Rate   41.82 births/1,000 population
Death Rate   18.01 deaths/1,000 population
Net Migration Rate   11.54 migrants/1,000 population
Sex Ratio   1.05 Male:Female at birth; 1.04    Male:Female under 15 yrs; 1.08    Male:Female 15 - 64 yrs; 1.12    Male:Female 65 yrs plus
Infant Mortality Rate   149.28 deaths/1,000 live births
Total Labor Force   8,000,000
Urban Population   N/A
Life Expectancy at Birth   45.88 yrs for total population; 46.62 yrs    for males; 45.1 yrs for females
Total Fertility Rate   5.87 children born/woman
Literacy   31.5% total population; 47.2% male;    15% female

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Water and Sanitation:

% of population with access to
safe water
% of population with access to
adequate sanitation
Water - Total13Sanitation - Total12
Water - Urban19Sanitation - Urban25
Water - Rural11Sanitation - Rural8

Economy:

Twenty-four years of continuous war completely wrecked the Afghan economy. Reconstruction of the agricultural sector, which accounted for about half of GDP, has been severely hampered by abandonment of farms and the huge number of minefields. Agricultural problems have led to recurring food shortages. Afghanistan could previously rely on extensive external aid, but opposition to the policies of the Taliban government, especially in the West, has sharply curtailed the amount of aid reaching the country. Many farmers relied on growing opium, but in 2000 the Taliban moved to destroy the bulk of the crop in the hope that international aid would be resumed: it was not, and the future of opium production in the country is now uncertain.

GDP   $21 billion
GDP - Real Growth Rate   N/A
GDP - Per Capita (PPP)   $800
GDP - Composition by Sector   53% from agriculture; 28.5%    from industry; 18.5% from    services
Inflation Rate - CPI   N/A
Unemployment Rate   8%
Budget   N/A revenues; N/A    expenditures
Industrial Production Growth Rate   N/A
Electricity Production   .43 billion kWh
Exports - Total Value   $.08 billion
Imports - Total Value   $.15 billion
Debt - External   $5.50 billion
Economic Aid   $.07 billion

The industrial sector, which barely functions, was formerly concentrated in mining and some manufacturing. There are significant deposits of natural gas, coal, salt, barite and other ores. The small manufacturing sector produces textiles, chemical fertilizers, leather and plastics. Some trade links have been established with the former Soviet Central Asian republics, but India, Pakistan, and Saudi Arabia are now the strongest economic influences in the country.

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Trade and Industry:

Trade accounts for a small portion of documented Afghan economy, and there are no reliable statistics relating to trade flows. In 1996, exports, not including opium, were estimated at $80 million and imports estimated at $150 million. These figures have probably decreased over time. Since the Soviet withdrawal and the collapse of the Soviet Union, other limited trade relationships appear to be emerging with Central Asian states, Pakistan, Iran, the EU, and Japan. Afghanistan trades little with the United States. Afghanistan does not enjoy U.S. most-favored-nation (MFN) trading status, which was revoked in 1986.

Afghanistan is endowed with a wealth of natural resources, including extensive deposits of natural gas, petroleum, coal, copper, chromite, talc, barites, sulfur, lead, zinc, iron ore, salt, and precious and semiprecious stones. In the 1970s the Soviets estimated Afghanistan had as much as five trillion cubic feet (tcf) of natural gas, 95 million barrels of oil and condensate reserves, and 400 million tons of coal. Unfortunately, the country's continuing conflict, remote and rugged terrain, and inadequate transportation network usually have made mining these resources difficult, and there have been few serious attempts to further explore or exploit them.

The most important resource has been natural gas, first tapped in 1967. At their peak during the 1980s, natural gas sales accounted for $300 million a year in export revenues (56% of the total). Ninety percent of these exports went to the Soviet Union to pay for imports and debts. However, during the withdrawal of Soviet troops in 1989, Afghanistan's natural gas fields were capped to prevent sabotage by the mujahidin. Restoration of gas production has been hampered by internal strife and the disruption of traditional trading relationships following the collapse of the Soviet Union. Gas production has dropped from a high of 290 million cubic feet (Mmcf) per day in the 1980s to a current low of about 22 Mmcf in 2001.

Trade in goods smuggled into Pakistan once constituted a major source of revenue for Afghan regimes, including the Taliban, and also figured as an important element in the Afghan economy. Many of the goods smuggled into Pakistan originally entered Afghanistan from Pakistan, where they fell under the Afghan Trade and Transit Agreement (ATTA), which permitted goods bound for Afghanistan to transit Pakistan free of duty. When Pakistan clamped down in 2000 on the types of goods permitted duty-free transit, routing of goods through Iran from the Gulf increased significantly. Shipments of smuggled goods were subjected to fees and duties paid to the Afghan Government. The trade also provided jobs to tens of thousands of Afghans on both sides of the Durand Line, which forms the border between Afghanistan and Pakistan. Pakistan's closing its Afghan border in September 2001 presumably drastically curtailed this traffic.

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Current Business Situation:

The political situation in the country remains the greatest determinant of commercial activity. A number of outbreaks of violence have been responsible for a range of pessimistic assessments of the short-term future.

While the convening of the Loya Jirga and the selection of Mr. Hamid Karzai as the Interim Head of State has lead to some settling of the situation a number of observers are however predicting that tensions between factions or other groups will lead to greater levels of violence.

Aside from these political developments, it should be remembered that despite the US$4.5 billion of aid pledged to Afghanistan, the country remains in the depths of a humanitarian crisis. The international assistance effort continues to focus on the emergency needs of the Afghan people.

There have been some short-term rapid impact projects undertaken in the country, although the uncertain security situation has prevented a full rollout of projects.

The Asian Development Bank and the World Bank together with the UNDPA are the lead agencies in Afghanistan and have had teams in the country undertaking needs assessment.

This is not a market for everyone. The impediments and challenges are significant.

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Working times:

N/A

National Holidays:

Id al-Adha, March 6*
New Year's Day, March 21
Revolution Day, April 27
Workers' Day, May 1
Remembrance Day for Martyrs and Disabled, May 4
Roze-Maulud, June 4*
Independence Day, August 19
Ramadan, November 17*
Id al-Fitr, December 16*

(* May vary by one or two days depending on Islamic lunar calendar)

Travel:

Afghanistan is a complex country with ethnic, racial and political divisions. This becomes even more of an issue outside of the capital city. Rural areas are not secured and all advice urges against any visits outside the zone of International Security Assistance Force control.

Those travelling by road in Afghanistan should ensure that their vehicles travel in a protected convoy. Banditry in rural areas by armed groups is common.

Communications:

Telephones   31,200
Televisions   100,000

Transportation:

Railways   24.60 total km
Highways   21,000.00 total km
Waterways   1,200.00 total km
Pipelines   N/A km in crude oil; N/A km in    petroleum products; 180.00 km in    natural gas

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Airline Services:

Ariana Afghan Airlines: www.flyariana.com

Pakistan International Airlines: www.piac.com.pk

Dress Code:

There are strong Islamic codes of dress and behaviour in Afghanistan and care should be taken to avoid giving rise to offence. Care should be taken not to breach regulations governing the import of certain prohibited items into the country.

All visitors to Afghanistan are urged to register with their High Commission or Consulate in Kabul and to report on their absences and final departure dates from the country.

Useful Links:

About Afghanistan - About Afghanistan

Afghanistan: Land in Crisis - National Geographic presents maps, news, photos, and more.

Atlapedia Online: Afghanistan - provides a sketch of geography, economy, society, modern history, and government.

CIA World Factbook: Afghanistan - provides a map and an overview of government, geography, economy, and society.

Political Resources on the Net - Organizations and Associations of Afghanistan

Washingtonpost.com: Afghanistan - interactive guide to the issues and history of Afghanistan, the Taliban, and the conflict following the September 11 terrorist attack on the United States.

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