Afghanistan
THE ECONOMY
When Afghanistan began to plan the development of its economy
in the mid-1950s, it lacked not only the necessary social organization
and institutions for modern economic activities but also managerial
and technical skills. The country was at a much lower stage
of economic development than most of its neighbours. Between
1956 and 1979, however, the country's economic growth was guided
by several five-year and seven-year plans and was aided by extensive
foreign assistance, primarily from the Soviet Union and the
United States. Roads, dams, power plants, and factories were
constructed, irrigation projects carried out, and education
broadened.
The Soviet invasion in 1979 and the subsequent civil war severely
disrupted Afghanistan's economic development. Agricultural production
declined, food shortages were reported, and, with the exception
of natural gas production and some other industries considered
essential by the Soviet Union, industrial output stagnated.
Thus, Afghanistan remains economically one of the world's poorest
countries.
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