Definitions of development on the Web

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act of improving by expanding or enlarging or refining; "he congratulated them on their development of a plan to meet the emergency"; "they funded research and development" a process in which something passes by degrees to a different stage (especially a more advanced or mature stage); "the development of his ideas took many years"; "the evolution of Greek civilization"; "the slow development of her skill as a writer" growth: (biology) the process of an individual organism growing organically; a purely biological unfolding of events involved in an organism changing gradually from a simple to a more complex level; "he proposed an indicator of osseous development in children" a recent event that has some relevance for the present situation; "recent developments in Iraq"; "what a revolting development!" exploitation: the act of making some area of land or water more profitable or productive or useful; "the development of Alaskan resources"; "the exploitation of copper deposits" a district that has been developed to serve some purpose; "such land is practical for small park developments" a state in which things are improving; the result of developing (as in the early part of a game of chess); "after he saw the latest development he changed his mind and became a supporter"; "in chess your should take care of your development before moving your queen" processing a photosensitive material in order to make an image visible; "the development and printing of his pictures took only two hours" (music) the section of a composition or movement (especially in sonata form) where the major musical themes are developed and elaborated

What is Development?
Volunteering & Development > What is Development? Development is a complex issue, with many different and sometimes contentious definitions. A basic perspective equates development with economic growth. The United Nations Development Programme uses a more detailed definition- according to them development is 'to lead long and healthy lives, to be knowledgeable, to have access to the resources needed for a decent standard of living and to be able to participate in the life of the community.' Achieving human development is linked to a third perspective of development which views it as freeing people from obstacles that affect their ability to develop their own lives and communities. Development, therefore, is empowerment: it is about local people taking control of their own lives, expressing their own demands and finding their own solutions to their problems.

Why learn about Development?
Volunteers travel to developing countries to work on a huge variety of projects such as assisting in under-resourced schools, offering expertise at under-equipped medical facilities, campaigning on human rights issues, providing care for HIV/AIDS orphans, promoting improved agricultural practices and so on. But why do these problems exist in the first place and why are they not easily solved through our goodwill and charity? Learning about development can help us understand more about the causes of and solutions to these problems and can help us be better informed volunteers, addressing not just the superficial poverty related issues but the deeper rooted causes as well. It can help us to have a more complex and accurate impression of the developing world than what is commonly shown to us through charity advertising. It can also help us when we return to educate others about the issues involved.

Development economics is a branch of economics that looks at how
development works from an economic perspective in developing nations. As a field, development economics looks not only at traditional economic rubrics, such as GDP or per-capita income, but also looks at things like standard of living, health care, education, and equal rights opportunities. As a result, development economics concerns itself a great deal with political processes and agendas, as well as with more specific economic agendas. Although some of the patterns of thought seen in development economics have existed in economics for quite some time, as a cohesive discipline it really grew out of the postWorld War II period in Europe. With nations ravaged by the war, and their economies in shambles, particularly in Eastern Europe, it became necessary to look at the best ways to industrialize those nations to maximize their economic potential while protecting the citizenry. In subsequent years the theories developed there began to be generalized and adapted to other developing regions of the world, including Latin America, Asia, and Africa.

What is Economic Development?
Economic development means different things to different people. On a broad scale, anything a community does to foster and create a healthy economy can fall under the auspice of economic development. Today's economic development professionals are trying harder than ever to define their field in terms that are more concrete and salient to policymakers, the public, and other professionals. There are probably as many definitions for economic development as there are people who practice it. Below is CALED's definition as published in the Economic Development Handbook:

From a public perspective, local economic development involves the allocation of limited resources - land, labor, capitol and entrepreneurship in a way that has a positive effect on the level of business activity, employment, income distribution patterns, and fiscal solvency. It is a process of deliberate intervention in the normal economic growth by making it easier or more attractive. Today, communities in California are giving attention to what they can do to promote fiscal stability and greater economic development. Economic development is a concerted effort on the part of the responsible governing body in a city or county to influence the direction of private sector investment toward opportunities that can lead to sustained economic growth. Sustained economic growth can provide sufficient incomes for the local labor force, profitable business opportunities for employers and tax revenues for maintaining an infrastructure to support this continued growth. There is no alternative to private sector investment as the engine for economic growth, but there are many initiatives that you can support to encourage investments where the community feels they are needed the most. It is important to know that economic development is not community development. Community development is a process for making a community a better place to live and work. Economic development is purely and simply the creation of wealth in which community benefits are created. There are only three approaches used to enhance local economic development. They are:

What is Afghanistan's economic status?
Afghanistan is really a geographic area that is occupied by a large number of tribes with various kinds of associations and regard for, or enmity with other tribes. The outside world is more interested in making a single country of Afghanistan than most of the tribes that occupy the land. It is very rugged terrain in most of the country, so it is difficult to grow things, difficult to transport things, and generally a tough place to make a living. So the economic status in much of the country is quite a bit lower in terms of a standard of living than other countries.

Economy of Afghanistan
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Economy of Afghanistan

Afghan Ministry of Finance at Kabul in 2002 Rank 91st Currency Afghani (AFN) Fiscal year 21 March .5% (2009) Population 36% (2009) below poverty line Labor force 15 million (2004) Labor force agriculture 78. cement. handwoven carpets.81 billion (2010 est.7%.7% (2009) Unemployment 35% (2008) small-scale production of textiles.000 (2009 est.51% (2009) Imports $8.09%. fruits and nuts. wool.78%. ECO. fertilizer. apparel.20 March Trade SAARC.550 billion (2009) capital goods. foodMain industries products.81%. copper Ease of Doing 167th [2] Business Rank External Exports $2.6%. negotiating WTO accession organizations Statistics GDP $29. United States 24.47%. soap. non-alcoholic beverages. precious and semiprecious stones Main export United States 26. India 23.) GDP per capita $1. shoes. natural gas. industry 5.128 billion (2009) opium. Export goods cotton.9% (2010 est. partners Pakistan 17.) [1] agriculture: 31% industry: 26% services: GDP by sector 43% (2008) Inflation (CPI) 30. Afghan rugs. services by occupation 15. coal. textiles and petroleum Import goods products. . hides and pelts. food. mineral water. furniture. most consumer goods Main import Pakistan 26.36%.) GDP growth 8. Tajikistan 12.

suffering from shortages of housing. jobs programs. Russia 4. housing development. unless otherwise stated. Afghanistan still remains one of the poorest and least developed countries in the world that is highly dependent on foreign aid.2 Forestry 3 Trade and industry 4 Economic development and recovery 5 National accounts 6 See also 7 References 8 External links [edit] Economic history Historically.[4] It is also due to dramatic improvements in agricultural production and the end of a four-year drought in most of the country.[3] as well as remittances from Afghan expats.[1] About 35 percent of its population is unemployed and live below the poverty line. and economic reform. the nation's GDP is $29. Contents [hide] • • • • • • • • 1 Economic history 2 Agriculture and livestock o 2.04% (2009) Public finances Public debt $2.7 billion (2008) Revenues $2. clean drinking water. is one of several potential spoilers for the economy over the long term. electricity and employment.India 5. However.86 billion (2009 total exp. there has been a dearth of information and reliable statistics about Afghanistan's economy. Germany 5.81 billion and the GDP per capita is $1. medical care.1 Fishing o 2. are in US dollars partners The economy of Afghanistan has improved significantly since 2002 due to the infusion of multi-billion dollars in international assistance and investments. which probably makes up about one-third of the country's GDP.) Main data source: CIA World Fact Book All values.587 billion (2009 including grants) Expenses $2.15%. The Karzai administration along with international donors have remained committed to improving access to these basic necessities by prioritizing infrastructure development. .06%. The replacement of the opium trade. As of 2010.000. education.

It is claimed that some Indian companies buy Afghan pistachios for a very low price.The 1979 Soviet invasion and ensuing civil war destroyed much of the country's limited infrastructure. [edit] Agriculture and livestock See also: Pomegranate production in Afghanistan and Opium production in Afghanistan The Afghan economy has always been agricultural. the Afghan economy grew 20% in the fiscal year ending in March 2004. Afghanistan went from a traditional economy to a centrally planned economy up until 2002[citation needed] when it was replaced by a free market economy. The overall agricultural production dramatically declined following four years of drought as well as the sustained fighting and instability in rural areas. Soviet efforts to disrupt . Several provinces in the north of the country (i.4 billion of aid entered the nation from 2002 to 2004. A GDP of $4 billion in fiscal year 2003 was recalculated by the IMF to $6.[5] Afghanistan is known for producing some of the finest fruits. after expanding 30% in the previous 12 months. which Afghanistan is famous for in Asia. especially pomegranates. According to the International Monetary Fund. Continuing internal strife severely hampered domestic efforts to rebuild the nation or provide ways for the international community to help. despite the fact that only 12% of its total land is arable and less than 6% currently is cultivated. and melons.50 per manhour in 2009. after adding proceeds from opium products. Gross domestic product has fallen substantially since the 1980s due to disruption of trade and transport as well as loss of labor and capital.e. As of 2007. Mean wages were $0. the country's fruit and nut exports were at $113 million per year but could grow to more than $800 million per year in 10 years given the proper investment.1 billion.[6] Workers processing pomegranates ("anaar").[citation needed] Agriculture production is constrained by an almost total dependence on erratic winter snows and spring rains for water. grapes. However. the Afghan government is planning to build storage facilities for pistachios since receiving bumper crops in 2010. An estimated $4. Wheat and cereal production is Afghanistan's traditional agricultural mainstay. and disrupted normal patterns of economic activity. The growth is attributed to international aid and to the end of droughts. Eventually. Badghis and Samangan) are famous for pistachio cultivation but the area currently lacks proper marketing and processing plants. process them in India and sell to western countries as Indian products.

Sar-e Pol. Much of Afghanistan's livestock was removed from the country by early waves of refugees who fled to neighboring Pakistan and Iran.400 km2) but are being overgrazed. called dynamite fishing.production in resistance-dominated areas also contributed to this decline. A report by the Food and Agriculture Organization (FAO) states that Afghanistan was nearing self-sufficiency in grain production. practiced by farmers who raise both animals and crops.[9] The annual catch was about 900 tons in 2003. Poultry are traditionally kept in many houses. Oxen are the primary draft power and farmers often share animals for plowing. Some studies indicate that agricultural production and livestock numbers may only be sufficient to feed about half of the country's population. and Faryab). In 2001. USAID has helped many Afghans in establishing fish farms across the country. Juzjan. there was a loss of about 84% of cattle from 1997 to 2002 and around 80% of sheep and goat. which supplies fish eggs to the other ones. and nomadic. After 200. There are two main types of animal husbandry: sedentary. Natural pastures cover some 7.[11] There are about 300 fish farms throughout the country and the largest one is at the Qargha. such as in Sarobi and Mahipar area. Using explosives for fishing. This is done by providing Afghan villagers training and animals to start with. the United Arab Emirates and other countries. Most flocks move to the highlands in the summer to pastures in the north. The northern regions around Mazar-i-Sharif and Maymanah were the home range for about six million karakul sheep in the late 1990s. which is currently being rebuilt. practiced by animal herders known as Kuchis. this figure was estimated to have declined further to 60%. became popular in the 1980s and is still practiced by some even though it is illegal today. the livestock population in Afghanistan had declined by about 40% since 1998.500. Many of these former refugees are now involved in the farming industry.[10] In recent years. more than 4 million refugees returned back to Afghanistan.000 acres (30.[9] . mostly in rural households. Shortages are exacerbated by the country's limited transportation network. Most fish and seafood is imported from neighboring Pakistan.[7] The availability of land suitable for grazing has traditionally made animal husbandry an important part of the economy. An FAO survey done in the northern regions in spring 2002 showed that in four provinces (Balkh. as did the disruption to trince 2002. Fish constitute a smaller part of the Afghan diet today because fish farmers are unable to produce enough fish to keep up with the demands of customers. Fishing takes place in the lakes and rivers. the Afghan ministry of agriculture and livestock and USAID have been helping to regrow the number of livestocks throughout the country. Iran. [8] [edit] Fishing The nation has plenty of water reserves and suitable climate for fish farming. In 2002. The great majority of Afghans traditionally raise sheep instead of goats because goat meat is not much popular within Afghanistan.

7% of the country. Roundwood production in 2003 was 3. Trade between Afghanistan and the . and since the mid-1980s.148. Uzbekistan. The destruction of the forests to create agricultural land.[edit] Forestry Afghanistan's timber has been greatly depleted. mainly in the east. In 1996. walnut. and on the northern and northeastern slopes of the Sulaiman ranges. logging. the distribution of the forest is uneven. the EU. India and other countries. Illegal logging and clear-cutting by timber smugglers have exacerbated this destructive process. Moreover. Since the collapse of the Taliban government in 2001. legal exports (excluding opium) were estimated at $80 million and imports estimated at $150 million per year. new trade relations are emerging with the United States. The natural forests in Afghanistan are mainly of two types: dense forests of oak. Pakistan. Significant stands of trees have been destroyed by the ravages of the war. with 44% used for fuel. Japan. Iran. [edit] Trade and industry Further information: Transport in Afghanistan and Mining in Afghanistan Afghan rug weavers in Herat province Afghanistan-Tajikistan bridge after completion in 2007 is one of several bridges used for trade between Afghanistan and Central Asia. The dense forests of the southeast cover only 2. and insect pests are all causes of the reduction in forest coverage. Turkmenistan. and most of the remaining woodland is presently found only in mountainous regions in the southeast and south. only about 3% of the land area has been forested. The current trade between Afghanistan and other countries is at US$5 billion a year. plant diseases. and sparsely distributed short trees and shrubs on all other slopes of the Hindu Kush. Exploitation has been hampered by lack of power and access roads. forest fires. and other species of nuts that grow in the southeast.000 cubic metres.

6 billion barrels (570×106 m3) of oil and condensate reserves. that offers the ability for Afghanistan to have the resources necessary to develop a modern economy. In 2006.. including Afghan President Hamid Karzai. 3. lapis.8 billion dollars by China and an annual income of about $400 million dollars to the Afghan government. J.[22][23] Experts believe that the production of copper could begin within two to three years and the iron ore in five to seven years as of 2010. Iran and others have shown interest in participating in the Hajigak iron ore tender. talc. State Department spokesman P. petroleum.[19][20][21] Afghanistan has signed a copper deal with China (Metallurgical Corp. located 130 miles west of Kabul and is believed to hold an estimated 1. sulfur.[14] Geologists also found indications of abundant deposits of colored stones and gemstones. lead. So it is a potentially important development. which is heavily dependent on narcotics. This is obviously something that we are trying to expand for the benefit of Afghanistan's economy. There's weak infrastructure. a U. zinc. copper. is one of the biggest in the world and is expected to provide jobs to 20."[17] —U. barites. China.0×1012 m3) of natural gas. salt. if these things can be developed over time. precious and semi-precious stones as well as leather and furs. June 2010 A memo from the Pentagon stated that Afghanistan could become the "Saudi Arabia of lithium". that the untapped minerals are worth at least $3 trillion.S..000 Afghans. and many other materials. coal. located in Logar province.[16] Plans are being made by the Afghan government to begin extracting these but with the Taliban insurgency and the corruption there is no telling what will happen.S. Geological Survey estimated that Afghanistan has as much as 36 trillion cubic feet (1. some of which are in areas controlled or at least threatened by the insurgency.[24] The nation's other recently announced treasure is the Hajigak iron ore mine. which is to a large scale project that involves the investment of $2..) in 2008. kunzite. including emerald. "We know that the extraction efforts are challenged by remote locations. is beginning to grow at a fast pace.S. We're not underestimating the challenges involved here. garnet. Companies from India. a legal economy. The country's Ainak copper mine. Afghanistan has significant amounts of undiscovered non-fuel mineral resources. But obviously.[18] Some believe.[13] According to a 2007 assessment. Turkey. marble. chromite. of China Ltd.[12] The Afghan handwooven rugs are one of the most popular products exported from the country.. Crowley.[15] In 2010. S.[25] . iron ore. Afghanistan is endowed with a wealth of natural resources. Other products include hand crafted antique replicas. precious and semi-precious stones. Pentagon officials along with American geologists have revealed the discovery of nearly $1 trillion in untapped mineral deposits in Afghanistan. gold. It is estimated to hold at least 11 million tonnes or 33 billion US dollars worth of copper. tourmaline and peridot. as opposed to the economy they currently have now. sapphire. spinel. ruby. reaching up to approximately $500 million per year. U.8 billion to 2 billion metric tons of the mineral used to make steel. including extensive deposits of natural gas.U.

during the withdrawal of Soviet troops in 1989.[30] [edit] Economic development and recovery Further information: Communications in Afghanistan . which was first tapped in 1967. However. jet fuel and LPG in Afghanistan. Afghanistan and Pakistan recently signed into law a new Afghan-Pak Trade and Transit Agreement (APTTA). production of natural gas has been restored again.[28][29] According to Afghanistan's Chamber of Commerce and Industries deputy head. During the 1980s. and introducing stringent measures and labels to prevent such practices. which allows their shipping trucks to transit goods within both nations.2 × 107 cu ft) in 2001. but also helped fuel the black economy. gasoline. where they fell under the Afghan Trade and Transit Agreement (ATTA).9 × 108 cu ft) per day in the 1980s to a low of about 600 thousand cubic meters (2. This resulted in considerable problems for the Pakistani government. Gas production has dropped from a high of 8. The pre-2003 smuggling trade provided undocumented jobs to tens of thousands of Afghans and Pakistanis. After the formation of the new Karzai administration. Ninety percent of these exports went to the Soviet Union to pay for imports and debts.[27] Trade in goods smuggled into Pakistan once constituted a major source of revenue for Afghanistan. This revised US-sponsored APTTA agreement also allows Afghan trucks to transport exports to India via Pakistan through the Wagah crossing point. often intertwined with the drug cartels. Azizi Hotak General Trading Group. This permitted goods bound for Afghanistan to transit through Pakistan free of duty. about 500 shipping containers of trade goods enter Afghanistan via Pakistan on a daily basis. gas sales accounted for $300 million a year in export revenues (56% of the total). Many of the goods that were smuggled into Pakistan have originally entered Afghanistan from Pakistan. of both countries.Afghan exports in 2006 Afghanistan's important resource in the past has been natural gas. Afghanistan's natural gas fields were capped to prevent sabotage by the Mujahideen. re-routing of goods through Iran from the Persian Gulf increased significantly. is currently the main supplier of diesel fuel. particularly its customs bureau who realized that many of the items being resold on the black market in Pakistan were the very same items being allowed duty free exemption from Pakistani ports (mainly Karachi) on their way to Afghanistan. Khan Jan Alokozai.2 million cubic metres (2.[26] A locally owned company. When Pakistan clamped down in 2003 on the types of goods permitted duty-free transit.

expanded primary. arable fields. As a result of the new banks in the country.000 pieces of unexploded ordnance. The United States.3 billion from its expatriate community in 2006. . Standard Chartered Bank. One of its key tasks is to eliminate from priority areas—such as villages. and Japan are the leading contributors to this relief effort. The nation's banking system has improved recently with over fourteen different banks in operation. and technical schools.[4] In 2010. Afghanistan has received over $3. the government of Afghanistan promulgated the first in a long series of ambitious development plans. Azizi Bank. A new law on private investment provides three to seven-year tax holidays to eligible companies and a four-year exemption from exports tariffs and duties. Afghanistan is still a heavily mined country. Kabul Bank became in financial crisis after depositors had withdrawn $180 million. and roads—some of the 5 to 7 million land mines and 750. the European Union (EU). Kabul Bank. They include Da Afghanistan Bank. refugee repatriation. Since its inception in 1991. and others. According to a UN report in 2007. Afghan expats are sending more money back home to their family or relatives.New commercial buildings such as this one in Kabul are constructed across the country to help modernize the financial sector Afghanistan embarked on a modest economic development program in the 1930s. secondary.[31] The UN continue to provide considerable humanitarian relief. mine-related injuries number about 60 per-month. The government founded banks. Afghanistan International Bank. these had achieved only mixed results due to flaws in the planning process as well as inadequate funding and a shortage of the skilled managers and technicians needed for implementation. and economic reconstruction will be severely constrained. the UN Office for the Coordination of Humanitarian Affairs (OCHA) to Afghanistan has channelled more than $1 billion in multilateral assistance to Afghan refugees and vulnerable persons inside Afghanistan. sown mainly during the Soviet occupation. Money can be transferred electronically in and out of the country. Without successful mine clearance. political stability. which continue to litter the Afghan landscape. UN officials familiar with the issue said remittances to Afghanistan could have been more if the banking regulations are more convenient. introduced paper money. By the late 1970s. Pashtany Bank. established a university. First Micro Finance Bank. and sent students abroad for education. In 1956.

Also incorporated in the design is a new complex for a new Afghan National Museum.[33] An initial concept design called the City of Light Development. Role of Government. the international community has pledged $25 billion in help but has delivered only $15 billion. historic and cultural development within the limits of the Old City of Kabul along the southern side of the Kabul River and along Jade Meywand Avenue. Hisham N. and has support from Ambassador Said Tayeb Jawad. Afghanistan's officials say that to create a viable economy and a stable society. Since 2001. with a vast amount spent on foreign workers' high salaries. and other donors have also fallen short by about the same amount. Costs of Production. for the development and the implementation of a privately based investment enterprise has been proposed for a multifunction commercial. Inc. Incentive. delegates from governments. Entrepreneur. Principal of ARCADD. Market place of Afghanistan In May 2002. Choice. The Agency Coordinating Body for Afghan Relief reported in 2008 that the United States has not delivered $5 billion worth of aid it pledged to help rebuild Afghanistan. Investment.[32] Too much money meant for Afghanistan aid is wasted.[34] revitalizing some of the most commercial and historic districts in the City of Kabul. The reconstruction of Afghanistan requires a sustained and substantial commitment of aid. international companies. The design has garnered interest from President Hamid Karzai.The plan for Kabul's nine billion dollar future modern urban development project. security and living arrangements. which contains numerous historic mosques and shrines as well as viable commercial activities among and within war-damaged buildings. and financial institutions met at a United Nations conference in Tehran to discuss the reconstruction of Afghanistan. But will businesses want to invest in Afghanistan? Correspondent Borzou Daragahi recently traveled to Afghanistan's business centers to see what life is like for the foreign entrepreneur. KEY CONCEPTS Benefit. Trade-off . Economic Growth. the country must recreate basic infrastructures --and it requires foreign investment to do so. who signed a Memo of Understanding regarding the development. envisioned by Dr. Externalities. Costs. the Kabul . Public Goods. Ashkouri.City of Light Development.

While Afghanistan provides one good example of what is required for economic growth. To know more about the economy of Afghanistan. Assess prospects for reconstruction in Afghanistan by reference to the role of stable government. The economy of Afghanistan can be categorized as poor and unstable as it lacks proper industrialization and absence of well-developed manufacturing and infrastructure facilities. foreign investment is a very important factor. Explain the role of infrastructure in fostering economic growth. One of the important aspects of Afghan economy lies in the fact that it is totally dependent on foreign aid and assistance received mainly from the G-8 countries. and infrastructure problems have discouraged many foreign investors from doing business there. despite the many opportunities it offers. Afghanistan has been a war-torn country with ongoing military conflicts and political instability affecting the economic growth of the country. The economic principles that help to explain Afghanistan's current situation may also be applied in other cases. Afghanistan is one country that would benefit greatly from foreign investment. thus preventing economic improvement. majority of the region is uncultivable as they are semi-arid and comprise of hilly terrains. Explain why entrepreneurs may choose not to do business in Afghanistan. here's sharing with you some information as--- .3%. The G. Economy of Afghanistan 123Independenceday » Afghanistan » Economy Basically. But its infrastructure was devastated in 2002. other underdeveloped countries face very similar problems. INTRODUCTION What does it take for economies to grow? For some economies. Since Afghanistan is a land locked country.D. rule of law.STUDENTS WILL • • • • Describe devastated infrastructure of Afghanistan.P growth has been 14% while inflation rate is 16. private property and infrastructure.

Afghanistan ECONOMY In the 1930s. sweet grapes. petroleum. agriculture is the main source of survival for majority of the Afghans living in the rural areas. melons pomegranates and raisins. expanded primary. Other varieties of fruits that are widely grown are-. and sent students abroad for education. zinc. Afghanistan embarked on a modest economic development program. secondary. Nearly 2/3rd of its agricultural lands require irrigation facilities which are of course available through preservation of rain water or through small springs or rivers. with the usherance of a new government slight economic upsurge have been witnessed with new industries being developed. there has been a dearth of information and reliable statistics about Afghanistan's economy.Agriculture and Natural Resources of Afghanistan--Though Afghanistan is a vast country. coal. The government founded banks. corn. footwear manufacturing houses and fruit-processing plants. iron ore. In recent times. chromites. rice and cotton.natural gas. Trade and Industries of Afghanistan--Since the earlier times. talc. precious and valuable stones. There has not been much growth of factories in Afghanistan however. introduced paper money. a special variety of sheep found in Afghanistan are grazed in large numbers and the Karakul lambs are widely used to make Persian lamb coats. barites. the comprehensive economy of Afghanistan gives you a clear idea of the prevalent economic conditions in the country. The major cash crops of Afghanistan are--. cherries. established a university. Historically.apricots. rail communication and electricity have been upgraded to enhance a good living standard in Afghanistan. the capital city of Kabul houses some woolen and textile manufacturing industries. The large deposits of oil found in the Hindu Kush and in parts of northern Afghanistan were being utilized for various internal purposes and have also been exported to other countries especially the bordering nations of Russia and Pakistan. Infrastructure facilities such as roads. It's important to note that Karakul sheep.com . The . An overview of the economy of Afghanistan remains incomplete without mentioning its wide and rich natural resources as-. copper lead. Moreover fruits and nuts are also exported far and wide which inevitably serves as a major revenue for Afghanistan. For more details on economy of Afghanistan flip through 123independenceday. sulfur. widely cultivated in different parts of the country. mulberries. the economic development of Afghanistan has hampered because of constant conflicts and war which has totally demoralized the phase of industrialization of the country. Thus. figs. carpets. However. yet only half of its area is fertile. and technical schools. Afghan handicrafts consisting of Afghan rugs. bridal embroidered works are in great demand in international market.wheat.

gas. talc. The program’s success has encouraged commercial banks to extend revolving loans for agribusinesses. salt. 49% of loans had gone to women-owned businesses. copper. boosting growth. fertilizer. Of these. This project tender. Afghanistan is also rebuilding its banking infrastructure through the Da Afghanistan National Central Bank.5 billion. tobacco. fruits.1979 Soviet invasion and ensuing civil war destroyed much of the country's limited infrastructure and disrupted normal patterns of economic activity. barley. At their peak during the . Continuing internal strife hampered both domestic efforts at reconstruction as well as international aid efforts. Gross domestic product fell substantially because of loss of labor and capital and disruption of trade and transport. the United States significantly revised its counter-narcotics strategy for Afghanistan. as more farmers are taking advantage of opportunities to produce and market alternative crops. wheat. Licit commercial agriculture is playing a significant role in increasing the income of rural populations.5%. sulfur. and possibly iron ore tenders in 2010. ongoing instability in certain areas of the country. and shortage of skilled workers constrains development and the conduct of business. albeit from a low base. Afghanistan and the International Monetary Fund agreed on a Poverty Reduction and Growth Facility program for 2006-2009 that focused on maintaining macroeconomic stability. remote and rugged terrain. and precious and semiprecious stones. and nuts.700 borrowers were women. The first significant investment in the mining sector is expected to commence soon. Afghanistan's economy has grown at a fast pace since the 2001 fall of the Taliban. In 2009. Unfortunately. and reducing poverty. However. castor beans. Poppy is easy to cultivate and opium is easily transported. barites. Funds have been provided for leases and to promote agro-processing and support for crop exports. In June 2006. is the largest international investment in Afghanistan to date. The United States and the international community are helping to restore banking and credit services to rural lenders. The most important resource has been natural gas. coal. vegetables. petroleum. Much of Afghanistan's opium production is refined into heroin and is either consumed by a growing regional addict population or exported. more than 52. ending direct involvement in eradication of poppy and increasing support for licit agriculture and interdiction. Opium poppy production and the opium trade continue to have a significant monetary share of the country’s agricultural economy. Trade and Industry Afghanistan is endowed with natural resources. unemployment remains around 40% and factors such as corruption.4% in 2008. The Ministry of Mines also plans to move forward with oil. including extensive deposits of natural gas. first tapped in 1967. Agriculture An estimated 85% of Afghans are dependent on agriculture and related agribusinesses for their livelihoods. chemical fertilizer. The new strategy puts heavy focus on going after those targets where there is a strong nexus between the insurgency and the narcotics trade. with a repayment rate of 94%. with the development of the Aynak copper deposit in east-central Afghanistan. However. As of September 2009. security. or pesticides. The major food crops produced are: corn. Relatively little use is made of machines. Agricultural production is constrained by an almost total dependence on erratic winter snows and spring rains for water. Afghanistan produced a record opium poppy crop in 2007. supplying 93% of the world's opium. primarily to Western Europe. iron ore. zinc.300 agricultural loans ranging from approximately $200 to $2 million had gone to small businesses. growth for 20092010 was 22. and there have been few serious attempts to further explore or exploit them. awarded to a Chinese firm and valued at over $2. irrigation is primitive. and sugar beets. both this share and the number of farmers growing poppy continue to decline. The major industrial crops are: cotton. madder. chromite. which now administer loans in nearly two-thirds of the country’s provinces. and an inadequate infrastructure and transportation network have made mining these resources difficult. and 27. and equipment. GDP growth exceeded 12% in 2007 and 3. rice. to deny resources to the Taliban. Despite these increases. Afghan farmers need financing to buy quality seeds. lead.

and provide construction supervision and project management consultancy. The Afghan Government's current power plan sets a goal to deliver sufficient electricity to meet the needs of an economic growth rate of 9% per year. Uzbekistan. Dubai. Ninety percent of these exports went to the Soviet Union to pay for imports and debts. for certain goods produced in Afghanistan. the plan's objective is to provide access to electricity to 65% of urban and 25% of rural households by the end of 2010. The project aims to increase trade between Afghanistan and Uzbekistan. the Afghan Government anticipates approximately 90% of urban businesses will have access to electrical power by the end of 2010. Afghanistan's national airline. transmission. ROZs encourage investment by allowing dutyfree access to the U. Transportation Restoration of the “Ring Road” that links Kabul. The Shirkan Bandar bridge. Kandahar. In January 2009. Civil aviation has been expanding rapidly and several private airlines now offer an alternative to Ariana and operate a domestic and international route network. Kam Air. which forms part of Afghanistan's border with Turkmenistan. and Tajikistan. construct a new transshipment terminal facility at Mazar-e-Sharif. install safety features for efficient operation. During their occupation of the country.000 to 300 kwh. Restoration of gas production has been hampered by internal strife and the disruption of traditional trading relationships following the collapse of the Soviet Union. the majority of the capital's 4 million people enjoy the benefits of power. and what remained was stretched far beyond capacity.1980s. For the first time in more than a generation. Afghanistan produced 430 megawatts of electricity. including flights to New Delhi. has barge traffic. and Herat with the northern cities of Mazar-e-Sharif and Kunduz continues. natural gas sales accounted for $300 million a year in export revenues (56% of the total). Today the country produces more than 754 megawatts. Lashkar Gah. but the Amu Darya (Oxus) River. The first. More than 90% of the population had no access to electricity.S. electricity began to flow into Kabul along a newly constructed transmission line running from neighboring Uzbekistan. Additionally. reopened in 2007 and has opened vital trade routes between Afghanistan and Tajikistan. and Herat. and distribution infrastructure was destroyed. Kandahar. construct a new single-track railway line of about 75 km from Hairatan to Mazar-e-Sharif. The United States has provided considerable assistance to help develop new electricity generation capacity and provide 24-hour power in key cities including Kabul. the availability of secure energy supplies in Afghanistan was significantly disrupted by conflict. during the withdrawal of Soviet troops in 1989. and Tehran. operates domestic and international routes. Finally. It will improve Hairatan's marshaling yard and railway station. develop institutional capacity of the railway sector. commenced domestic operations in November 2003. increase vehicle operation savings. Moscow. In addition. Ariana. Much of the country's power generation. International statistics maintained by the World Bank indicate the ratio of gross domestic product (GDP) growth to electrical production is approximately $1. Power For nearly 3 decades. However. Afghanistan's natural gas fields were capped to prevent sabotage by the mujahidin. Istanbul. The Hairatan to Mazar-e-Sharif railway project is also in progress. including economically vital stretches linking Kabul. with the help of the Asian Development Bank and the Indian Government. ROZs stimulate badly needed jobs in underdeveloped areas where extremists lure fighting-age young men into illicit and destabilizing activities. efforts are underway to create Reconstruction Opportunity Zones (ROZs). and Kandahar. and create job opportunities in the project area. reconstructed with U. assistance. reduce transport costs. install signaling and telecommunication systems.S. the Soviets completed a bridge across the Amu Darya. Islamabad. Landlocked Afghanistan has no functioning railways. In 2001. Major projects carried out include refurbishment of power generation capacity at Kajaki . Much of the road has now been completed.

development. thus reinforcing local governance and reducing insurgent influence. It furnishes jobs that keep young men employed. prosperity. and Mine Detection Center Afghanistan (MDC) have hard-won demining expertise and experience. Training local Afghan demining technicians offers a new skill. Community-based demining represents a new and unique opportunity to link Afghan and U. Reliable. The United States works with a wide array of international partners in mine action efforts in Afghanistan. On average. and counterinsurgency objectives. Refugees and Internally Displaced People Afghanistan has had the largest refugee repatriation in the world in the last 30 years. and enables local personnel to participate in taking back their community. International and Afghan partners have used these funds to clear more than 160 million square meters of land and are now extending these efforts through community-based demining. Removing these deadly hazards enables socioeconomic development that could further the larger goal of promoting stability and security in Afghanistan and the wider region. to survey and clear explosives. with children involved in more than half of these incidents. allowing the country to build self-sufficient capabilities to continue resolving its own issues. Many Afghan non-governmental organizations (NGOs) such as Organization for Mine Clearance and Afghan Rehabilitation (OMAR).4 million receiving repatriation assistance from the United Nations High Commissioner for Refugees (UNHCR). and personnel from the troubled. Demining Agency for Afghanistan (DAFA).S. but the majority of U. which have pioneered an approach called “community-based demining. Afghan NGOs recruit. the Afghan Government has transferred all assets. and employ local workers. The UNHCR leads the international community's response. in close partnership with community leaders. the United States has provided more than $165 million for humanitarian mine action in Afghanistan. landmines and unexploded ordnance inhibit development. as well as lend support to other countries recovering from conflict in the future. in coordination with the International Organization of Migration (IOM). prevent the delivery of goods and services. .Dam in the south and opening the Kabul power plant. Demining Landmines and other explosive remnants of war affect virtually every province in Afghanistan. United Nations Children's Fund (UNICEF). as many as 83 people are injured or killed each month in Afghanistan by these hidden hazards. state-run power utility Da Afghanistan Breshna Mosesa (DABM) to the new corporatized national electricity utility Da Afghanistan Breshna Sherkat (DABS). the World Food Program (WFP).833 internally displaced people (IDPs) in the country. financial assistance for demining in Afghanistan goes directly to Afghan-run NGOs. and generally obstruct reconstruction and stabilization efforts. UNHCR reported 235. making it the largest international donor to Afghanistan for this type of assistance. humanitarian. and other donor nations. according to the Landmine Monitor program. Afghan Technical Consultants (ATC). Mine Clearance Planning Agency (MCPA).S. disrupt markets and production. The move was a significant breakthrough in Afghan Government and donor efforts to modernize and begin to commercialize the national electricity sector.” In community-based demining. In February 2009. and partners’ supervision. The energy infrastructure continues to be a priority for the U.S. Under the U. As in many countries struggling to recover from conflicts. the World Health Organization (WHO). a tragic legacy of nearly 3 decades of continuous conflict. affordable electricity is vitally important to Afghan economic growth. and stability. and a number of other national and international NGOs and donors. Since 1993. with 4. establishes trust with local leaders. liabilities. Over 5 million Afghan refugees have returned to the country since 2002. train.S. The Ministry of Refugees and Repatriation (MORR) leads the Government of the Islamic Republic of Afghanistan in assisting its citizens in returning from exile.

. will also continue to support refugee assistance and protection inside countries of asylum. and pharmaceutical manufacturers in the development of professional associations.S. IDPs. more than 7 million Afghan children. treatment. 36. The U. service delivery. providing health care and childbirth services across Afghanistan.S.S. Insecurity along the border.100 to 6. down 26% since 2002. and other vulnerable conflict victims through agencies such as UNHCR.3 million children. has led to a lack of health workers and an increase in polio cases from seven in 2004 to at least 24 in 2009. . provincial. also supports various organizations in providing assistance and protection to the 3. Economy GDP (2009 est. saving 80. From a situation of total illiteracy. DOTS is a 6. Life expectancy is only 44 years for both men and women.865. the international Committee of the Red Cross (ICRC). Child mortality has also fallen. This has helped reduce infant mortality rates by 23%. Since September 2001. While these statistics are tragic.5% (2009-2010). is supporting private hospitals. pharmacists. a six-fold enrollment growth since 2001. and surveillance networks. supports the national Polio Eradication Initiative to strengthen Afghanistan’s immunization communication. More than 10. assistance programs. GDP growth: 22. or 90% of children under the age of five. and increasing demand for and access to quality health products and services through the private sector--60% of the population receive health care from the private sector. 11% (2010-2011). Globally recognized as the best way to cure TB and control its spread.000 newborn lives each year. and community levels. Today. Health Afghanistan has one of the highest mortality rates in the world: one in five children dies before the age of five and one out of every eight Afghan women die from causes related to pregnancy and childbirth each year. the U. the World Food Program. as well as the quality and preparation of teachers in order to close the literacy gap left by 30 years of conflict.The United States channels a significant amount of aid to refugees. write. Recent reports indicate that 85% of the population has access to basic health services within 1 hour of travel to a health facility (68% for those on foot)--up from 9% in 2002. To strengthen the private sector and foster best practices. returnees. The U. the United States has contributed over $718 million to these programs. of whom nearly 40. district. Learning centers grew from 1.S. the number of teachers has increased seven-fold to 142.S. During the Taliban regime no girls were registered in schools. have been vaccinated against polio. The U. While anchoring returnees in Afghanistan will remain a priority for U. bringing literacy and financial services to over 169. these learners can now read. Education Afghanistan has made impressive advances in increasing basic education. More than 1. addressing the management leadership and stewardship capacity of the Afghan health care system at the central.6 million Afghan refugees residing outside Afghanistan. form simple sentences.S. and do basic mathematical calculations. the U.500.to 8-month program in which health providers directly administer medication and closely monitor patient progress.650 professional midwives are employed by the ministry of public health. Short Course (DOTS) methodology. Adult literacy activities increased rapidly in 2009. The United Sates also supports tuberculosis (TB) detection. there has been progress. purchasing power parity): $27 billion. through various agencies and in conjunction with the Afghan Government has implemented health programs to help meet the immediate health care needs of the population by strengthening the health care service delivery system. and control efforts in 13 target provinces using the Directly Observed Therapy.000 beneficiaries (62% female). As a result of this assistance. especially in the south. Similarly.3% of the student population is girls. Ongoing support of literacy and basic education is paramount. and numerous non-governmental organizations.000 schools are providing education services to 6.000 are women. and activities expanded from 9 to 20 provinces.

wool. At present. United States. investment has been dynamic. and consumer goods. Last year’s harvest led to agriculture output growth of 36 percent (constant 2002/03 prices) and the non-agricultural component of 14 percent. government spending contributed relatively little to GDP – just 3 percentage points. as well as higher spending by donors. zinc. Even with an uncertain and deteriorating security situation. machinery.5 percent real growth (while net exports represented -5. Agriculture (estimated 31% of GDP): Products--wheat. chromite. cotton. but with great volatility because of its heavy reliance on agriculture. Russia. India. Trade (2009 est. equals approximately 50 afghanis. Major markets--Central Asian republics. India. oil. corn. services contributed about half of output (and over 10 percentage points of the 22. private consumption contributed 22. petroleum products. and mutton. sulfur. Services (estimated 43% of GDP): Transport. nuts. Major suppliers--Central Asian republics. wool. fruit. mostly from the external budget capital spending and private investment in the security economy. Industry (estimated 26% of GDP): Types--small-scale production of textiles.1 percent points of the 22. cotton. Germany. and their large off-budget contributions.5 percent. furniture. karakul pelts. is the security economy that generates demand for goods and services. lead. Growth in Afghanistan Afghanistan's Recent Economic Performance Afghanistan’s economy saw record real GDP growth in 2009/10 at 22. equipment and operations and maintenance of the national army. textiles. fertilizer. cement. Finance & Insurance (27 percent) and . sheepskins. United States.3 billion: food. precious and semiprecious gems.): $800. Since 2002/03 the country has seen average growth rates in the double digits. coal. which is subject to weather fluctuations. hides and pelts. natural gas. Furthermore. coal. talc. soap. and copper. shoes.GDP per capita (2009 est. retail. Private consumption has been the primary driver of economic growth over the past half-decade. Behind consumption growth. barites. petroleum. Much of private consumption is directed towards services.): Exports--$547 million (does not include opium): fruits and nuts. Pakistan. Currency: The currency is the afghani. $1 U. Imports--$5. opium.7 percentage points). copper.S. and telecommunications. hand-woven carpets. Pakistan. barley. precious and semiprecious stones. hand-woven carpets. salt.5 percent real growth – Figure B). The most dynamic services subsectors have been Communications (45 percent annual growth). rice. iron ore. lambskins. In 2009/10 and in the past five years. In 2009/10. showing moderate growth over the years and contributing around 4 percentage points to GDP growth. which was reintroduced as Afghanistan's new currency in January 2003. Consequently. strong output was driven by increased donor spending – a 24 percent increase in core budget donor grants and about US$ 4 billion in off-budget donor funding – and recovery from the severe drought of 2008/09. Natural resources: Natural gas.

In addition. Construction contributed 1.Transport (22 percent). Industry contracted by 3 percent over last year. Afghanistan is the source of 93 percent of the world’s opium production and the area under cultivation more than doubled from 2003 to 2007.3 percentage points.11 percent of last year’s GDP growth. Agriculture contributed 7. At present. Another major concern is the fact that gross revenues from opium trade are estimated to be equivalent to as much as third of measured GDP (opium is not reflected in the official GDP numbers). with Wholesale and Retail trade lagging at a marginal 4 percent growth. The sector’s output has been volatile because Afghanistan’s arable land and most irrigation systems depend on seasonal rain and snow. While there are many uncertainties about the actual benefits that would accrue to the country from mining.86 percentage points.3 percent. chronic neglect. It is estimated that Afghanistan has substantial. However there are a number of economic indicators suggesting that Afghanistan is on an unsustainable growth path. But two recent large scale investments at Aynak and Hajigak could mark a fundamental shift. due largely to weaker manufacturing. Great hope is being placed on the development of the mining sector. In addition. The country is highly aid dependent with foreign aid disbursements of 47 percent of GDP in 2008/09. Furthermore. could be the main driver of growth in the years to come. Two decades of war. driven mainly by a good cereal harvest and livestock. The same financial year. This context implies the need for a medium term strategy based on alternative sources of sustained growth in Afghanistan. while mining added only a marginal at 0. there is little doubt that the sector. that contracted by 12 percent. Only little is produced for export purposes while the country depends heavily on imports for reconstruction and food. at less than 0. . if managed well. and severe under-funding have limited the development of this sector. private investment only reached 8 percent of GDP. the mining sector’s contribution to GDP is marginal. untapped mineral deposits which have the potential to make it to a major exporter of minerals. while total investment was 32 percent of GDP.

aid has often come with a price of its own for the developing nations: • • • • Aid is often wasted on conditions that the recipient must use overpriced goods and services from donor countries Most aid does not actually go to the poorest who would need it the most Aid amounts are dwarfed by rich country protectionism that denies market access for poor country products. rich nations have rarely met their actual promised targets. It will use scenario planning to gain a better understanding of fiscal and institutional sustainability over the next 10 years with view to better understanding the implications of aid flows on service delivery. Foreign aid or (development assistance) is often regarded as being too much. This article explores who has benefited most from this aid. Ongoing analytical work at the World Bank: In an attempt to better understand constraints and drivers of growth. despite billions given each year. It will deal with the question of how Afghanistan can foster private sector development.7% of their gross national income as official international development aid. In reality. . For example. Since that time. the recipients or the donors. money can often be embezzled away. or wasted on corrupt recipient governments despite any good intentions from donor countries. the world’s rich countries agreed to give 0. The report Sustainability of State Building in Afghanistan will look at the current degree of fiscal and capacity reliance of the state on external resources. The report Economic Growth in Afghanistan will explore the long term drivers of growth in the absence of the market distortions resulting from the security situation.However. while rich nations use aid as a lever to open poor country markets to their products Large projects or massive grand strategies often fail to help the vulnerable. the US is often the largest donor in dollar terms. Furthermore. the World Bank is currently preparing two analytical reports addressing the challenges the Government and development partners will face in the medium and long term. agriculture and rural development. but ranks amongst the lowest in terms of meeting the stated 0. In 1970. mining is pre-dominantly a capital-intensive activity which will only generate a limited number of jobs. mining development is unlikely to bring relief to the poor and vulnerable population in Afghanistan. the development of the mineral sector risks of further burdening the country’s fragile governance.7% target. both the quantity and quality of aid have been poor and donor nations have not been held to account. as well as ensure that emerging mineral wealth translates into a source of sustainable and inclusive growth. Unless linkages to other economic sectors are strengthened. annually. Moreover.

as he introduced the Secretary-General’s latest report (see Background). expected to commence with next week’s announcement by President Hamid Karzai of areas under full Afghan responsibility. meant an end to “business as usual”. governance and development in the troubled country as he addressed the Security Council this morning during a debate on that situation. . the international community must go far beyond security to comprehensive capacity-building and development efforts. In security. Secretary-General’s Special Representative Tells Security Council In Debate on Situation. amid the surge in violence. In the effort to restore full Afghan sovereignty. stressed Staffan de Mistura. The beginning of the transition this year. Afghan forces must consolidate their gains and earn the full confidence of the Afghan people. who is also the head of United Nations Assistance Mission in Afghanistan (UNAMA). He said that the review of UNAMA requested by the Afghan Government was an opportunity to ensure the effectiveness of United Nations support in those endeavours in the coming period.Beginning of Transition in Afghanistan Means End to Business as Usual. Afghanistan’s Ambassador Says Country on Path to Full Sovereignty but ‘Cannot Stand on Its Own Two Feet’ with Weak State Institutions The Secretary-General’s Special Representative for Afghanistan called for full international support to the planned transition to Afghan responsibility for security.

they must be rewarded with adequate development assistance and not be abandoned. He stressed the magnitude of the activities of the entire United Nations in a broad range of areas. and if capacity is not strengthened. That was why the Government continued to reach out to all those who wanted to join the peace process. including greater measures to prevent civilian casualties by all forces. He appealed for more assistance in building the Government’s capacity to fight the illicit drug trade. the Government and people were completely committed to it. greater coherence in the United Nation’s work and reshaping of its mandate. governance. . The representative of Afghanistan introduced the request submitted by his Government (again see Background) for a comprehensive review of UNAMA’s mandate. He said his country was on the path to full sovereignty. he maintained that institutional progress had been made towards that end. due to expire on 23 March. he said. with the help of the international community. “ Afghanistan cannot stand on its own two feet if its State institutions remain weak and are undermined by various parallel structures. around the transition to full Afghan assumption of its responsibility in the country. In addition. he said that the protection of civilians must be the first priority. Stressing also the need to end the continuing violence. he said that all stakeholders had come to realize that war and violence could not end through military means alone. and it must be assured that they would not be abandoned once the transition was over. Noting that sovereignty came with increased responsibility and accountability. institutional capacity-building and development. including human rights.As provinces came under full Afghan governance and security during the transition. secure and prosperous nation that could meet the needs of its citizens independently. rule of law. and. While that would be no easy task. humanitarian assistance. The support of the international community was essential to ensuring the success of that process. the transition would be completed and the goals of the Afghan people would become a reality. national ownership and leadership in an effort to realize the goal of a democratic.” he said. Millions of Afghans were benefiting from those activities. he said.

stressed a comprehensive vision of security in Afghanistan. Iran and Australia. France. as well as related aspects of the so-called “ Kabul process”. the Head of Delegation of the European Union. China. Italy. particularly the protection of civilians. Throughout the course of the meeting. . Portugal. Russian Federation. human rights. Norway. The Security Council. Gabon. Pakistan was extending the fullest security and intelligence cooperation to Afghanistan. Lebanon. most prioritized capacity-building of Afghan institutions. Brazil. Canada. South Africa. Most speakers also supported an Afghan-led reconciliation process. encompassing good governance. should be a willing partner of the Afghan people in the important and delicate reconciliation process. Pakistan’s representative supported the visit of the Chairman of the High Peace Council to Pakistan and the recent meeting of the International Contact Group in Jeddah. Bosnia and Herzegovina. While all speakers addressed the urgent need for security. among others. “We do not want Afghanistan to become a theatre of proxy wars or descend into chaos and instability. Colombia. as well as to other services for the Afghan people. development and an inclusive political process. Security Council members and the representatives of other interested countries strongly supported a transition to full Afghan responsibility. For its part. particularly those related to security and rule of law. many speakers also expressed solidarity with the people and Government of Japan following the devastation of the recent earthquake and tsunami. he added. with the number of its military and paramilitary personnel deployed along the border greater than all international troops in the country. Nigeria. Also speaking this morning were the representatives of Germany. United States. In that context.Following those statements. Some said that their countries would funnel more aid through Afghan institutions. India. although some cautioned that only those who renounced violence should be included. In that effort. Japan. United Kingdom.” he stressed. Turkey. New Zealand. as well as the High Peace Council’s interaction with the United Nations and the Organization of the Islamic Conference.

including tension between the executive.The meeting began at 10:15 a. saying the Mission will continue to support the so-called “ Kabul process” that spells out a transition to greater Afghan responsibility and ownership. Mr. Background The Council had before it the report entitled: The situation in Afghanistan and its implications for international peace and security (document SC/2011/120). within the limits of available funding and resources provided to members of the United Nations country team. The Organization will also continue to pursue a “One United Nations” approach and strengthen the coherence of its efforts in Afghanistan. advocacy and monitoring of human rights. and ended at 1:30 p. known as UNAMA. Ban also outlines obstacles facing the Afghan transition. since 10 December 2010. as well as the activities of the United Nations Assistance Mission there. which covers developments in the country. the Secretary-General recommends that UNAMA’s mandate be extended for another year. he adds. He adds that the United Nations system in Afghanistan can complement and bring added value to the efforts of the Afghan International Security Assistance Force (ISAF) in specific sectors. In the report.m. In his observations. in both security and civilian areas. it must be planned and implemented in a sustainable manner and it must ensure the protection and promotion of the rights of all Afghans. technical assistance to Afghan capacity-building for delivery of basic services and management of natural disasters. If this continues much longer. legislative and judiciary branches over the status of parliament.m. or if it leads to an entrenched political . He says that focus will be on those locations where there are needs and where security and access conditions will allow the United Nations to maximize its efforts and reinforce its presence. such as local mediation and conflict resolution support. He says his approach to the Kabul process and transition is based on three key principles — the transition must be Afghan-owned.

6 through 2009. created a parliament where the Pashtun population in some areas is apparently underrepresented compared to the previous parliament. He calls for the problem to be addressed in a manner that will not have adverse consequences for the transition process and the future stability of Afghanistan. according to the report. remain significant.664 incidents in January 2011. suicide attacks remained at an average of 2. has been working closely with all parties to find an appropriate solution. the Secretary-General writes. it will be detrimental to the credibility.620 in 2010. The Secretary-General says that the controversy has implications for the prospect of international partners aligning assistance with Afghanistan’s national priority programmes. with 20 suicide attacks and 33 assassinations occurring in the city. maintaining that the electoral institutions performed commendably under difficult circumstances. he says. effectiveness and inclusiveness that is necessary for the Government of Afghanistan to lead the transition process. Staffan de Mistura. The southern city of Kandahar and its surrounding areas remained the focus of such incidents. Abductions and assassinations. At the end of 2010. while stressing that the solution should not be achieved at the expense of the electoral institutions. the report says that the number of security incidents. mainly armed clashes and the use of improvised explosive devices. or that of the Afghan people. the confidence of the international community. He also says there were “significant flaws in the election process”. but adds that they were neither “unexpected nor unprecedented”.8 per week compared to the weekly average of 2. which was a reflection of the patterns of instability in the country. His Special Representative to Afghanistan and head of UNAMA. and 960 in 2009. continued through the last two months of 2010 and into January 2011. . He adds that there is also no question that the result. which is also the focus of activity for the Afghan national security forces and the ISAF. the constitutional separation of powers. The second immediate challenge to the implementation of the Kabul process is the current impasse over the Kabul Bank. On security. with 1.crisis. compared to a monthly average of 1.

conveying a request of the Afghan Government to renew UNAMA’s mandate for an additional 12 months beyond 23 March. UNAMA’s adjusted role during the transition. the Government says that increased focus should be given to channelling aid through the Afghan budget and recalibrating UNAMA’s role in improving civil-military coordination with ISAF. In conclusion. the implementation of that reform is the responsibility of the Afghan Government and. The Government maintains it is not necessary to refer to UNAMA’s activities at the subnational level in the mandate and thus it should be considered instead in the context of transition. It stresses that. it states. the Government looks forward to maintaining close contact to finalize UNAMA’s mandate for this year. It reiterates its deep gratitude for the steadfast support of the international community. but the Government’s role should again be central. it states. along with the promotion of coherence in the international community’s support for that effort. while retaining UNAMA’s formal role as the co-chair of the Joint Coordination and Monitoring Board. governance and development. which seek to restore Afghan ownership of security. In that context. according to the annex. therefore. UNAMA’s support for improving governance and the rule of law would be achieved best through strengthening the efforts of the Government in accordance with the Kabul process. could be best fulfilled by limiting its offices to the six recognized zones throughout the country.The Council also had before it the Annex to the note verbale dated 4 March 2011 from the Permanent Mission of Afghanistan to the United Nations addressed to the Secretary-General (document S/2011/118). United Nations development and humanitarian activities should be geared towards “One United Nations”. the Government requests that the new mandate make its central focus the restoration of full Afghan responsibility in those areas by 2014. In that light. . and requesting a comprehensive review of that mandate in the next six months. it is not necessary to make references to it in the new UNAMA mandate. consistent with principles outlined in the Kabul and London communiqués. if requested. It underscores the need for Afghan leadership in reconciliation and reintegration efforts with the support of UNAMA’s good offices. UNAMA should have a coordinating role in facilitating the delivery of humanitarian assistance in accordance with humanitarian principles. as well as conducting the aforementioned review. while the Government is committed to the electoral reform process as reflected in the Kabul communiqué. subject to the requested review.

the Government and people were committed to it. in carrying out their role over the next four years. He then set out the Afghan Government’s recommendations on how UNAMA’s mandate would evolve during the coming transition period. “ Afghanistan cannot stand on its own two feet if its State institutions remain weak and are undermined by various parallel structures. emphasizing that securing Afghanistan was first and foremost about Afghan ownership and leadership. He said that the full logic of the transition would roll out over the next four years and the people would benefit from a secure. “reshaping UNAMA’s mandate to the transition” as that process must be a central focus to facilitate a smooth shift to Afghan ownership and leadership. and. would be crucial in the next four years and beyond. must be focused on helping the Government meet the needs of the transition. as the lead international civilian coordinator in the country. channelling aid through the Afghan budget and better aligning . Among the other recommendations set out in the letter. democratic society governed by the rule of law. the transition would be completed and the goals of the Afghan people would become a reality. On the eve of the renewal of UNAMA’s mandate. The Government had agreed that that should be carried out before the Bonn conference at the end of 2011. with the help of the international community. The international community’s support would be critical. national ownership and leadership in an effort to realize the goal of a democratic. the Government called for a comprehensive review of the mandate and the role of the United Nations in Afghanistan to be conducted in the next six months. and all stakeholders. noting that a detailed letter had been sent to the Secretary-General on behalf of the Government towards that end. secure and prosperous nation that could meet the needs of its citizens independently.” he continued.Statement by Afghanistan ZAHIR TANIN ( Afghanistan) said that his country was on the path to full Afghan sovereignty. While the Government was well aware that that would be no easy task. and if capacity is not strengthened. It was also about operating effectively to archive sustainable process. he stressed that the Mission’s work. Primarily. the Government had called for strengthening coherence and coordination among all United Nations agencies and programmes working in the country.

and more measures must be put in place to ensure that. incidences of loss of life during military operations had increased. He said that the review of UNAMA requested by the Afghan Government was an opportunity to ensure the effectiveness of United Nations support in that endeavour. . In security.it with the country’s priority programmes. That was why the Government continued to reach out to all those who wanted to join the peace process. he reiterated. free from the threat of the violence and sufferings they have endured for so many years. going forward. All stakeholders had come to realize that war and violence could not end through military means alone. The support of the international community was essential to ensuring the success of that process. While most of the civilian casualties were caused by Al-Qaida. Briefing STAFFAN DE MISTURA. and recalibrating ISAF’s role in line with the transition. Loss of civilian life must end. Special Representative of the Secretary-General and Head of the United Nations Assistance Mission in Afghanistan. The time has come to ensure that Afghans have the chance to live in peace. Such an alignment of priorities would make the United Nations operations in Afghanistan more efficient in the years to come and help build and sustain a Government that functioned with greater confidence and self-reliance — not overnight but over time. introducing the Secretary-General’s latest report (see Background) said that all the activities of the last year had pointed to the importance of a transition to full Afghan responsibility and ownership of its own governance. that role must meet the needs of the Government. “We must end the war and violence in Afghanistan. The enduring partnership would remain crucial. He said that UNAMA’s coordinating role was crucial and. stressing that the war against terrorism would not be won without the confidence and support of the Afghan people. The protection of civilian lives “must be priority number one”.” he declared. amid the raging surge in violence. the transition was not the end but rather the beginning of a new chapter in an evolving partnership between the Afghan Government and the international community. Afghan forces must consolidate their gains and earn the full confidence of the Afghan people. security and development efforts.

he said it endorsed Afghan-led peace activities. The international community’s focus must be on . with 9. Millions of Afghans were benefiting from those activities. he said. but that offer had not yet been accepted. In addition.As provinces were scheduled to come under full Afghan governance and security during the transition. he said that every year was crucial in Afghanistan. An opportunity had been given to the anti-Governmental forces to participate in the surveys on civilian casualties. institutional capacity-building and development. rule of law. but the situation was still of great concern. That was a move towards “real Afghan power”. Statements PETER WITTIG ( Germany) said that Afghanistan was a national foreign policy focus for his Government and he looked forward to working with the Council on the matter as Afghanistan entered into a phase of full transition. but some years were more crucial than others. Progress in the illicit drug trade had been made by the Government. as well as transitional progress through the so-called Kabul process. those must be rewarded with adequate development assistance and not be abandoned. noting that sovereignty came with increased responsibility and accountability and maintaining that political progress had been made towards that end. The transition this year meant that business as usual could no longer be conducted. and it must be assured that they will not be abandoned once the transition was over. Civilian casualties were a great source of concern. In conclusion.000 having perished in recent years. but merely a change in that relationship. With the full restoration of Afghan sovereignty. governance. including women and girls must be protected and supported. He appealed for more assistance in building capacity in the Government to ensure greater progress this year. The United Nations had been in Afghanistan for many years and would continue to support the country after the transition. the international community must go far beyond security to comprehensive development efforts. he stressed the responsibility of Afghan central and local government. Reporting on the meeting of the international contact group. He said that vulnerable groups. He stressed the magnitude of the activities of the entire United Nations in a broad range of areas including human rights. humanitarian assistance. but transition did not mean an end to international engagement.

CAROLINE ZIADE ( Lebanon) agreed that the transition phase should be led by the Afghan Government and people. He encouraged the Government to be aware of that fact and work to bolster such capacity. She was also concerned about ongoing discrimination of women and recruitment of minors into combat forces. At the same time. especially in areas where the process was set to begin early. he agreed with Afghan officials that at times. He also called for a resolution of the difficulties regarding Parliament’s status. Lebanon reaffirmed the importance of regional cooperation as a key to strengthening Afghan internal reconciliation. There must be greater support for the Electoral Commission. he called on Afghan authorities to do more to empower Afghan women and to integrate them into all processes under way in the country. as well as to sexual violence against women and minors.training and support so that the gains made during the transition could be sustained. as soon as the Council was able to evaluate the status of the transition. The international community must bolster support for national reconciliation. The Bonn conference at the end of the year had been scheduled to facilitate that aim. Germany was concerned that the technical capacity to carry out all the objectives of the transition were not yet in place. he supported a review of UNAMA’s mandate over the next year. Germany favoured the extension of UNAMA’s mandate for another 12 months and was pleased with the wide support for Afghanistan in the Council. the increasing number of civilian casualties was a cause for serious concern and must be addressed as a matter of urgency. the amount of international goodwill could undermine Afghan solutions to Afghan problems. combating regional drug trade and improving the nation’s economic conditions. . She condemned the ongoing killing of civilians and called on all actors in the country to abide by their international law obligations. as well as a strengthening of awareness-raising and capacity-building. she said all efforts should be made to ensure that the progress that flowed from that exercise continued apace. while challenges and setbacks were avoided. including with UNAMA’s assistance. and called for an end to those practices. as well as all the objectives of the Bonn and Kabul processes. He said that a recent United Nations Development Programme (UNDP) report had noted the increased confidence of the people of Afghanistan in their Government. Yet. Following the free elections that had taken place in the country. Therefore. Meanwhile.

was also reversible. coordination of assistance and related areas. and called on all concerned to prevent them. He expressed particular concern over the plight of children and women. while commendable. He reaffirmed support for UNAMA and for extending its mandate. in security. political dialogue was needed. In addition. There would also be a civilian component to the transition. He agreed with the Secretary-General’s views on the issue and called on all stakeholders to achieve national reconciliation. human rights. The transfer of security responsibility was already beginning. including the electoral reform process. She welcomed recent political advances in Afghanistan. Most important was the transition to Afghan ownership of all efforts. He was dismayed by growing civilian casualties. in contrast to insurgents who targeted civilians. As such. She looked forward to three surges. including among all those who were willing to contribute to peace in Afghanistan. she expected that the first areas to undergo the transition would be announced by President Hamid Karzai.BASO SANGQU ( South Africa) welcomed the relatively positive developments of the past few months in Afghanistan but expressed concern over continuing challenges. The Council and the wider international community must acknowledge that the progress thus far. the pro-Government forces had made great efforts to reduce civilian casualties and would continue to do so. She also noted Pakistan’s importance in ending the violence in Afghanistan. particularly in mediation. ROSEMARY DICARLO ( United States) stressed her country’s support for the transition to Afghan ownership and leadership. Counter-narcotic efforts were also crucial. A responsible reconciliation process was an important part of that. calling for assurances that no child soldiers would be used and for measures to protect women and involve them in all processes. including the continuing violence. under Afghan leadership. Insurgents who chose the path of peace would find a willing partner in the United States. and she urged all institutions to act within their respective functions under Afghan law. A comprehensive strategy including security. all stakeholders must work harder to bolster . diplomacy and development. JOSÉ FILIPE MORAES CABRAL (Portugal) said that peace and security were the Afghan Government’s overarching needs and should. In the coming days. be the key aims of the United Nations system working in that country. as outlined by her Government. He underscored UNAMA’s central role in supporting the Government and coordinating assistance. In addition. therefore. good governance and development was required.

especially the rights of women and children. Afghanistan must be able to rely on its partners. governance and development. The hallmark of the Kabul process was Afghan ownership and leadership towards realization of the shared pursuit of sustained and tangible improvements in security. held in Lisbon in November 2010. which were an integral part of peace and reconciliation. including building public trust in Government institutions. “ Afghanistan’s future should not be built over respect of human rights for all. Meanwhile. the protection and promotion of human rights. It must also be accompanied by an inclusive political process and intra-Afghan dialogue.their efforts to ensure that relevant capacities were strengthened so that the progress was sustained. he said. He looked forward to the upcoming Bonn conference to lay out plans to support the transition.” he reiterated. As for the Council. but also to ensuring broad socio-economic development and reconstruction. The overriding security situation should not be a pretext to compromise reconciliation or to undermine the promotion and protection of human rights. not only to meeting security priorities. did not have links to terrorist groups and were committed to democracy and human . stressing that Afghan ownership was critical. Another fundamental challenge was ensuring coherence in the allocation of resources to bolster the Government’s battle against the narcotics trade and to hasten reconstruction. including supporting the Afghan Government’s endeavours to launch the transition and to fight corruption. The North Atlantic Treaty Organization (NATO) summit. As that was the case. MANJEEV SINGH PURI ( India) said the Kabul conference had marked the beginning of a new phase in the partnership between the Afghan Government and the international community. Afghanistan had a host of challenges that needed to be addressed. he said. It must also be constantly assessed. Afghanistan was in the process of transition — “a process in which we all have a stake and in which we must all assume our responsibilities”. had provided a road map for the transition to full Afghan responsibility for security and leadership by the end of 2014. and overcoming obstacles to electoral reform. He said the transition must be linked to on-the-ground realities rather than “rigid benchmarks”. among other things. That implied greater coherence — and streamlining — of international development initiatives to ensure better alignment with Afghan priorities and increasing management by Afghan institutions. supporting the building of a professional and effective police force. India agreed that the transition process must be Afghan-owned and that the exercise must be planned and implemented in a systematic manner that ensured. India supported the Afghan Government’s efforts to reintegrate those individuals who renounced violence. Portugal was pleased to be working within the 15nation body on all efforts that would allow UNAMA to fulfil its mandate.

At the same time. His country would work on the security transition with its ISAF partners. to fully commit itself to taking responsibility and building its capacities in security. If that progress was to be sustainable. Indeed. ignoring the concrete objectives in that regard outlined in the Kabul process would risk Afghanistan once again becoming a safe haven for terrorists and extremist groups. He affirmed the importance of regional and international cooperation to consolidating peace. He condemned insurgent tactics to intimidate the civilian population and endorsed measures to further protect civilians. following good progress in building security forces by the Afghans. An open. good governance. He endorsed that transition in line with the Kabul declaration. 50 per cent of aid funding should be channelled through Afghan institutions. he favoured the mandate extension. and political dialogue could also prove beneficial. he supported political initiatives to end the violence. even as transition was planned. as part of it. with UNAMA’s support. France supported the transition and wanted . He underlined his country’s long-term commitment to Afghanistan and fully supported the renewal of UNAMA’s mandate. It must have the Government’s full support and must be able to operate in any part of the country necessary. all stakeholders must guard against the impulse to consider such efforts a short-cut to facilitate reconciliation. funds should be channelled through Afghan institutions. KIO AMIEYEOFORI ( Nigeria) welcomed Afghan efforts to strengthen democratic structures. PHILIP PARHAM ( United Kingdom) said that the international community must support the Afghan Government’s reconciliation efforts at the same time that it was supporting its transition to ownership of security and other sectors. UNAMA had an important role working together with the Afghan Government. with 80 per cent to Afghan priorities. MARTIN BRIENS ( France) said the Afghan Government and its partners had laid out the road map for the transition. as well as UNAMA support in those areas.rights. He urged the Government. credible political process would yield many benefits. rule of law and development. At the same time. He expressed concern over the upsurge of violence and civilian casualties in several provinces. and said that. He welcomed the consolidation of Parliament and said that was an opportune time to press ahead with electoral reform. To build capacity. therefore. Reaffirming support to UNAMA. it must be supported by gains across the rule of law sector. and President Karzai would shortly announce the areas in which that process was set to begin.

the Special Representative should be involved in the work of the Electoral Commission. ALFRED MOUNGARA MOUSSOTSI ( Gabon) said the conclusion of an overall transition must be the underlying concern of the Afghan Government and the overall aim of international support. The exercise should also promote and sustain Afghan ownership of all security. even as that exercise should be led by the Afghan Government. especially the reform efforts. as evinced by controversy over representation in Parliament. including reconstruction. and better coordination of civil assistance. urging the international community to redouble its efforts to back the ongoing political processes. Several key factors underpinned the transition’s success. At the same time. Nevertheless. Such disagreements could slow the transition. Gabon supported the Government’s move to secure sovereignty over all its activities. “The future of Afghanistan is taking place now. he said the Government needed to provide assurances that assistance funds would be earmarked for vital priorities. Going forward. The situation of women and children. The mandate approved by the Security Council last year should continue to guide the efforts of the Secretary-General’s Special Representative. As the transition process got under way. based on Afghan budget priorities. ALEXANDER PANKIN ( Russian Federation) agreed in general with the report and recommendations of the Secretary-General. He was pleased with the number of women that had been elected to Parliament and stressed the need for the Government to ensure inclusiveness and integration at all levels. Further. Gabon regretted the fact that the political transition was weak. especially the involvement of children in armed groups. as well as negative trends that raised concerns in the region over reconciliation efforts. including an all-out effort to end civilian deaths.” he stressed. Only those who renounced . the recent seating of the Parliament was a credit to the determination of the Afghan people to ensure democracy. He said that the promotion and protection of human rights was another area in which the Government must redirect its efforts. UNAMA’s role should be tailored to the ongoing transition and be reconsidered in the year ahead. He expressed deep concern over the continuing violence and the increase in civilian casualties. was a source of serious concern. more work to bolster the reconciliation process.it to be “lasting and irreversible”. UNAMA’s work would be more crucial than ever. A broad show of international support would raise the hopes of many young people and women in the country that had suffered for so long. development and governance initiatives.

NÉSTOR OSORIO ( Colombia) said it was appropriate that UNAMA’s mandate focus on supporting the Afghan Government in critical areas. leading some groups to claim they had been underrepresented. REGINA MARIA CORDEIRO DUNLOP (Brazil) said the there had been considerable progress in Afghanistan over the past year. asserting that alternative economic opportunity was an important part of that effort. He endorsed the principles of the Secretary-General that must be followed during the transition to Afghan responsibility. At the same time. the tensions over the status of Parliament must be solved “in a mature and institutional way”. despite facing serious threats. It was only through cooperative engagement that a stable Afghanistan free from the drug trade would be achieved. He proposed that regional organizations could be of assistance to the consolidation of peace in Afghanistan. He supported the transition of responsibilities to the Afghan Government. international organizations should continue to support the Afghan Government in line with the Kabul declaration. He reaffirmed Colombia’s willingness to strengthen bilateral cooperation in combating the illicit drug trade and other organized crime. He thus welcomed steps taken to commence dialogue. He supported the transition to Afghan leadership in key areas. Common strategies in the region and beyond must be adopted.violence should be included in those efforts. and he welcomed proposals of the collective security organization to assist in that regard. Likewise. but capacities must be built for that purpose. The fight against corruption and organized crime must also continue. and she congratulated the Afghan people. which had been commendable throughout the polling. and drew attention to the need to physically destroy narcotics crops and prevent the flow of precursors. as only the involvement of all stakeholders would overcome the remaining challenges. He pledged his country’s continued assistance for that purpose. Active. She also acknowledged the importance of the work of the Independent Election Commission and Electoral Complaints Commission. who. Effective compliance with the “1267 sanctions” should be pursued at the same time. went to the polls to vote in the Wolesi Jirga elections on 18 September 2010. Efforts to lay the foundations for a sustainable peace through political dialogue must continue. In any case. it was regrettable that insecurity during the elections had led to the closing of some polling stations. He urged all parties to the conflict to fulfil their obligations to ensure the safety of civilians. accompanied by political and dialogue processes. . counter-drug efforts were needed.

She was also pleased that the reconciliation process had continued to gain momentum and. to promote stability and sustained economic growth and development. Regrettably. and all parties must strengthen their efforts to protect civilians and ensure that their actions were in line with international legal norms. There was no military solution to the conflict. the Kabul process must be closely followed until the transition to full Afghan leadership was attained. MIRSADA ČOLAKOVIĆ ( Bosnia and Herzegovina) said she remained concerned by the deterioration of the security situation. it was important that ISAF and other international forces reviewed their tactics in order to further reduce those figures. Although the majority of civilian casualties were caused by antiGovernment forces. the security situation was still alarming and the human cost of the conflict had risen in 2010. She welcomed the recent positive political developments. As for the impasse over the Kabul Bank. which were an important signal that the country was taking the first necessary steps on the path towards national unity and strengthening the capability of its institutions to meet the needs of the people. She was especially concerned about the rise in the number of deaths of children and said that the “vast human losses” indicated that the solution to the conflict could not be military. owing to the increase in military operations. linked to the finalization of the agreement on a new International Monetary .120 civilians had lost their lives last year — a 19 per cent increase over 2009. Iran and India. in that regard. among other partners. She expressed particular concern at the recent increase in the number of deaths among women and children. The next few years would be a critical opportunity for donors to support Afghan priorities and to commit to the principles of aid effectiveness. a political solution must be found. some 7. and suicide attacks. She also hailed recent regional cooperation between Afghanistan and Pakistan. Nevertheless. use of improvised explosive devices. to prevent further human suffering. encouraged UNAMA to support the work of the High Peace Council and to provide broader backing to the intra-Afghan reconciliation process. Turning to obstacles. which the international community should support. she hoped the problems that arose during the election process would be solved in an open and transparent manner. The fact that armed groups were increasingly joining the reintegration process was another positive trend. Sustainable security must go hand-in-hand with economic and social development. including the launch of the High Peace Council and the Peace and Reintegration Programme. Indeed.She welcomed the Afghan Government’s latest peace and reconciliation efforts.

he said. which consisted of the “intertwined” processes of reintegration and reconciliation. governance and development. agriculture and education.400 on the ground. establishing a “civilian-oriented” presence in Herat. She commended the United Nations assistance to refugee returns. Bosnia and Herzegovina supported a solution that would best reflect the interests of the Afghan people and the country’s economic development. Finally. the “red lines” agreed at the Kabul conference must be respected. Her country supported the one-year extension of UNAMA’s mandate. Roughly 70 per cent of Italy’s aid to the country was already aligned with the priorities indicated by the Afghan Government. promote social and economic development and improve security — remained pivotal. but as a condition-based joint process aimed at achieving Afghan ownership in security. which would require the support of Afghanistan’s regional partners. water. and called on all stakeholders to extend all support to ensure that they returned home in safety and security. giving consideration to local traditions and sensibilities and promoting fundamental human rights. The Council should heed the request of the Government to review and amend UNAMA’s mandate in the context of the needs of the transition period. He said his country also supported the inter-Afghan political process. and supporting the development of the private sector. He supported UNAMA in its central role in coordinating assistance to the country. assisted by the international community. The delegation encouraged the installation of the local bodies needed for both reconciliation and reintegration. governance and security capacity must go hand in hand with the transfer of responsibility to Afghan authorities. CESARE MARIA RAGAGLINI ( Italy) said that his delegation supported the upcoming Afghan Transition process. and endorsed extending its mandate. which it saw. improve governance and rule of law. WANG MIN (China). said that support to Afghan political progress.Fund (IMF). more joint action was needed on issues including trade. including increasing security trainers in the amount of up to 700 units out of 2. committed to undertake reforms. In that respect. speaking in his national capacity. . but obstacles impeding the channelling of additional resources through the Afghan budget needed to be removed and the management of public funds improved. forging new initiatives to support governance at the local and central levels. not as an exit strategy. The Kabul process — whereby the Government of Afghanistan. energy. rule of law. among other actions. Italy was doing its utmost to ensure that the transition was irreversible.

As such. and the international community. The Afghan-led political process of reconciliation and reintegration would be especially crucial in stabilizing Afghanistan this year. He said that. in order to ensure the country’s sustainable development. its neighbours. said that. in order to consolidate the gains made so far and to improve the well-being of the Afghan people. it was also necessary to establish a system that enabled it to express its own will. to quash insurgent activity and consolidate security gains. Japan continued to provide assistance in human resource development. infrastructure and for the development and rebuilding of the agricultural sectors and rural communities. should continue its support for Afghanistan because that country’s reconstruction and development were among the international community’s most important concerns. the international community. who prefaced his statement with an expression of deep appreciation for the sentiments of condolences extended to his country by members of the Council over the devastating earthquake and tsunami. He also reaffirmed Japan’s continued support to UNAMA’s efforts. Thus. abandoned alliances with Al-Qaida and embraced the Afghan Constitution. citing his Government’s strong support for the transition process. in partnership with ISAF. Along with Afghanistan. welcomed the Afghan Government’s commitment to assuming lead responsibility for security throughout the country. where New Zealand led the Provincial reconstruction Team. based on democratic processes. That fragile situation reinforced the need for the Afghan National Security Forces. played an important role .TSUNEO NISHIDA (Japan). Combined with a push to increase civilian capacity. He said that that political solution required isolating hardcore insurgency leaders and integrating into mainstream society those who renounced violence. Although Bamyan Province itself. JIM MCLAY (New Zealand). In that. in full cooperation with UNAMA. was relatively secure. through UNAMA. Afghanistan’s overall security situation remained worrying. security gains would provide space for a political solution — an essential element to ensuring a secure and prosperous Afghanistan. while respecting Afghan ownership. both the Afghan Government and the international community must make unrelenting efforts. the international community should respond to the nation’s development needs and promote the stabilization of livelihoods and construction of basic economic infrastructure. Increased pressure on those that disrupted the peace must be coupled with opportunity for those insurgents that laid down their arms and helped make that peace durable. it was an important step for the Afghan Government that NATO allies and partners had confirmed at their meeting in Lisbon in November 2010 their commitment to create conditions to enable Afghan forces to take the lead for security in all the country’s provinces by the end of 2014.

“We will all make sure this gradual. she commended the establishment of human rights machinery in Afghanistan and urged greater efforts to stop violence against women. which was set to conclude in 2014. While he was optimistic about the results. She stressed that Norway’s engagement was based on the principles of Afghan ownership and responsibility as expressed in the Kabul declaration. given its significant contributions of both troops and development aid. For that reason.in supporting a political solution. She strongly supported the call for strengthened protection of civilians. and he urged the Council to give the mandate what it needed to support the Afghan Government effectively during the critical period of transition between now and the end of 2014. ERTUĞRUL APAKAN ( Turkey) said that 2011 would be a crucial year for Afghanistan. Noting with concern the continued assaults on freedom of speech. an end to corruption and the Government’s fulfilment of its obligations in many areas. Turkey was encouraged by the steps taken so far and looked forward to President Karzai’s official announcement next week of the first tranche of the process. the transition was not going to be easy. At the same time. pending the implementation of the Afghan Subnational Governance Policy. along with closer cooperation and dialogue between UNAMA and the Afghan authorities. she supported transition of security responsibilities to Afghan leadership in the coming months. TINE MORCH SMITH ( Norway) affirmed support for UNAMA during the transition in Afghanistan.” he said. she stressed the importance of a viable reform agenda. conditions-based process is irreversible by exerting concerted and sustained efforts in conformity with the priorities and requirements of the Afghan Government. given the challenges. She also endorsed Afghan-led electoral reform and an Afghan-led peace process through structured political dialogue. provided that certain fundamental conditions were met. In that respect. echoing the sentiments of other speakers that the transition would not mean the end of the international community’s . The continued presence of UNAMA offices was a precondition for a successful and gradual political transition. noting her country’s great stake in the future of that country. She said that future success was to a large extent dependent on developments at the provincial and district level. New Zealand welcomed the Council’s intention to review the Mission’s mandate. he was also realistic that. as that country’s Government and its international partners moved steadily towards transition to full Afghan ownership and responsibility.

recognize and respect the Afghan Constitution and sever ties with Al-Qaida and other terrorist organizations. His country advocated a comprehensive vision for meeting the challenges in Afghanistan. He said the security situation remained a serious concern. Canada called on all actors to implement Security Council resolutions on women. Turkey was confident that the United Nations and its Mission in Afghanistan were capable of playing a critical role through 2014. JOHN MCNEE ( Canada) welcomed a review of the Mission in 2011. conducted jointly with the Afghan Independent Human Rights Commission. Efforts for the coming years should focus on the process towards greater Afghan leadership. it must help the Afghan Government press ahead with national reconciliation and support interactions with regional partners and neighbouring countries. governance and development. While the international community was working with the Government to ensure a sustainable transition. UNAMA’s mandate must be strengthened in line with the principles of Afghan leadership and ownership. but the international community must support a process that respected red lines requiring the insurgents to renounce violence. Central also to Afghanistan’s development was its relationship with its neighbours. Canada also strongly condemned ongoing attacks against humanitarian personnel. ABDULLAH HUSSAIN HAROON ( Pakistan) said that complete Afghan ownership in security. including the disbursal of international aid within Afghan priorities and frameworks would facilitate long-term peace.engagement in Afghanistan. The 2010 parliamentary elections — marred by “serious irregularities” — provided lessons learned to strengthen electoral institutions in the future. including the development of the education and health sectors and the advancement of human rights. To that end. Regarding the goal of transitioning security responsibilities to Afghan authorities by 2014. if provided with the necessary tools. with security being only one facet of a myriad of . Reconciliation between the Government and the Taliban was essential to bring the conflict in Afghanistan to a conclusion. peace and security — an area in which some progress had been made. pointing to a recent UNAMA report. the international community should bear in mind the need to bolster civilian governance institutions that would oversee the Afghan National Security Forces. continued efforts to prevent “backsliding” were needed. stability and development. it must also help usher in the requisite political changes. Therefore. That process should be Afghan-led. which found that over three quarters of all civilian casualties in 2010 had been caused by insurgents. which must be undertaken in close collaboration with the Government of Afghanistan. However. Canada remained committed to working with its international partners and the Government of Afghanistan in supporting the Kabul process and realizing the objectives of that process.

economic development and infrastructure rehabilitation must be supported. Pakistan was extending the fullest security and intelligence cooperation to Afghanistan. MOHAMMAD KHAZAEE ( Iran) said he attached great importance to the role of the United Nations in coordinating international efforts in Afghanistan. and noted that the head of that body had recently visited Iran. For its part. would not help secure peace and stability in Afghanistan. In that context. he supported the visit of the Chairman of the High Peace Council to Pakistan and the recent meeting of the International Contact Group in Jeddah. The Iranian Government had expressed its readiness to host one of the Council’s meetings with Afghan political groups and factions in Iran. but it should not lead to the setting up of permanent bases in Afghanistan. with a view to bringing the opposition groups into the political mainstream. adding that there was no justification for sacrificing the lives of civilians in the name of countering terrorism. He welcomed the setting up of the High Peace Council. The Security Council. as well as for its mandate extension. it would provide a concrete excuse for extremist groups to prolong the war. “Putting the lives of innocent people at the mercy of drone attacks must be halted. Ending the violence required an attempt to understand all the parties. He reiterated support for the objectives and efforts of UNAMA. The announcement of the drawdown of United States forces as of July of this year had been welcome.challenges. he emphasized. in whatever form and for whatever justification.” he stressed. Obviously. with the number of its military and paramilitary personnel deployed along the border greater than all international troops in the country. a flourishing Afghanistan would be ideal for that country’s neighbours. As for other regional cooperation. He added that the quest for peace and stability in Afghanistan was dovetailing into a long-term cooperative partnership. and ongoing cooperation in areas such as trade. He supported an Afghan-led and inclusive reconciliation process. rather. He hoped the High Peace Council would expand its discussions on reconciliation and reintegration within Afghanistan and the countries in the wider region. should be a willing partner of the Afghan people in the important and delicate reconciliation process. Iran was also concerned about the increase in the deaths and displacement of civilians. “We do not want Afghanistan to become a theatre of proxy wars or descend into chaos and instability. Iran was ready to host meetings with Afghanistan and other neighbours to identify more concrete measure that might be . as well as the High Peace Council’s interaction with the United Nations and the Organization of the Islamic Conference.” he said. the presence of foreign military forces.

there was still some distance to travel. and it was vital for that and further probes to be conducted in line with the Constitution and other relevant Afghan laws. among other things. while the international community and Afghanistan had come a long way. An Afghan-driven reconciliation and reintegration were the keys to the country’s future. Turning to Australia’s engagement in Afghanistan. “Strengthening Afghan governance and development will be critical to a sustainable. President Karzai planned to announce the first provinces that would begin carrying out the aims of the transition process. he noted. In all that. a Speaker had been elected to the Wolesi Jirga. ANDREW GOLEDZINOWSKI ( Australia) reaffirmed his Government’s support for all international efforts in Afghanistan.necessary for strengthening a regional framework for development projects and security initiatives. Australia also planned to provide some $123 million in development assistance in the 2010-2011 period. Iran called again on all those who carried a responsibility for combating narcotic drugs to take more concrete steps to curb that threat as soon as possible. Afghanistan’s neighbours also played an important role. and urged everyone to take very seriously the warning by the United Nations Office on Drugs and Crime (UNODC) that the recent uptick in opium prices might encourage farmers to plant more opium poppies. . irreversible transition. While UNAMA was supporting the Government’s efforts to that end. Those drugs also served as a breeding ground for terrorists and illegal groups bent on destabilizing the Afghan Government. he stressed that. which also marked the beginning of implementing the President’s goal for Afghan National Security Forces to take the lead in conducting security operations by the end of 2014. The international community supported that process. He encouraged President Karzai and all those in the Afghan Government working to rebuild their country to continue strengthening the foundations of sustainable peace and constitutional democracy. that his Government was the tenth largest ISAF contributor and largest overall non-NATO contributor. Finally. he cited the narcotics trade as one of the region’s most serious challenges.” he said. Further investigations into the September parliamentary elections had been referred to a special tribunal. Next week. Since the Council’s last meeting on Afghanistan. adding that the United Nations played a vital role in the international civilian efforts under way to build Afghan capacity and leadership to support the transition process.

welcomed the wish of the Afghan Government to take the lead in the transition process and the overall development of the country. therefore. The European Union’s assistance to Afghanistan had been increased to some €200 million per year and it was also on track regarding the alignment of its programmes with Government priorities and the channelling of assistance through Afghan Government structures and multi-donor trust funds. supported training efforts. while respecting the mandate of the electoral institutions and the separation of powers. he welcomed the build-up of Afghan security institutions but recognized that they still needed to become stronger. human rights. Which Factors Effect Economic Development? Who can tell me something about Economic Developments Factors? Ads by Google . It focused on capacity-building in all fields. The Union. he affirmed that sovereignty also implied responsibility. Along with human rights improvements. UNAMA continued to play a critical role in the coordination and management of international assistance. as well as in support of the Afghan-led peace and reconciliation process. It was time. in that context. development and an inclusive political process. greater involvement of women as actors in post-conflict development was needed. He endorsed a continued United Nations role in electoral reform. as well as the extension of a strong UNAMA mandate. Acting Head of the Delegation of the European Union to the United Nations. able to deliver justice and other services to the people were key priorities. He said that continuing to build strong and credible institutions. At the same time. foremost towards the Afghan people. In that context. which must respect human rights and transitional justice.PEDRO SERRANO. to resolve current disagreements over the composition of the Parliament. A comprehensive vision of security encompassed good governance.

. job security.g.• Fast Factoring Solutions www. incentives to help develop business and industry).[3] Its scope includes the process and policies by which a nation improves the economic. Outcomes: Economic devleopment has a range of both positive and negative consequences."[5] The University of Iowa's Center for International Finance and Development states that: .[1][2] Also. business culture (for example Japan has a very developed business culture regarding the populations attitude to new ideas and processes and the rate at which new ideas are formed). trade links.) improvement in standars of living and income. health. Change in the environment (industrialisation means that the beauty of an area can be compromised) change in culture and morals (traditional culture and morals can be lost due to the impacts of TNC's and inflow of different people into the area e. financial flow between countries).g. education. economic development would be enhanced. economic globalisation (foreign investment..BusinessFactors.[4] Gonçalo L Fonsesca at the New School for Social Research defines economic development as "the analysis of the economic development of nations. and social well-being of its people. power supply.. Improvement of quality of life (indicators of which are. Tourism) There is often a greater inequality gap as a small number become very rich and the poor only gain a small profit (this can cuase resentment within a country as the distribution of wealth is unbalanced. communication and transportation links. foreign labour. Apply Now Basic factors: Raw materials. low-income economy to a modern. External factors: Geopolitcs.. regulation. These factors are the basis upon which countries can further economic development. high-income economy. Economic development is the increase in the standard of living in a nation's population with sustained growth from a simple. namely. Bad. political. No Upfront. if the local quality of life could be improved.. eectricity running water ect. Taxation. Internal factors: Government policies (they must favour business e. general happiness. friends and family. sharing of knowledge. inovation and enterprise.com Increase your Cash Flow w/ Invoice AR Factoring. tariffs. clean area to live in. taxes/ duty. It can often lead to more democracy within a country. TNC's and corporations (investment from Transnational Corporations such as macdonalds increases wages of populations by creating jobs. labour force. An unbalanced economy can also cause a great boom in industry which if often very unstable causing a slump or depression in an economy Good. income and affluence.

The concept. politicians. it seeks answers to such questions as: "Why are levels of direct foreign investment and labour productivity significantly higher in some countries than in others?"[7] Mansell and Wehn state that development has been understood since the second World War to involve economic growth. closely related to economic growth so that development and growth often go together. and poverty rates. plus organizational and related aspects of enterprise development in modern societies. and especially Industrialization are other terms people have used when discussing economic development. Modernization. the phases or waves of economic development historically used by economic developers. modernization) of markets and management-employee relations. increases in per capita income. It embraces sociological research on business organization and enterprise development from a historical and comparative perspective. These factors are. Economic development typically involves improvements in a variety of indicators such as literacy rates. A country's economic development is related to its human development. and culturally related cross-national similarities and differences in patterns of industrial organization in contemporary Western societies."'Economic development' is a term that economists. among other things. life expectancy. most people agree that development is closely bound up with the evolution of capitalism and the demise of feudalism.[8][9] Economy Development can also be considered as a static theory that documents the state of economy at a certain time. health and education. specific processes of the evolution (growth. and others have used frequently in the 20th century. alternative measures of economic wellbeing have been proposed (more). According to Schumpeter (2003)[10] the changes in this equilibrium state to document in economic theory can only be caused by intervening factors coming from the outside.[11] ."[6] The study of economic development by social scientists encompasses theories of the causes of industrial-economic modernization. and attainment of a standard of living equivalent to that of industrialized countries. Westernization. however. environmental quality. has been in existence in the West for centuries. which encompasses. On the subject of the nature and causes of the considerable variations that exist in levels of industrial-economic growth and performance internationally. or social justice. Although no one is sure when the concept originated. GDP does not take into account other aspects such as leisure time. freedom. however.

for instance. With the increase in economic growth. Unlike extensive growth. Extensive growth refers to the increase of overall wealth.3 Endogenous growth model o 3. however. with the increased in expenditures.4 Information-led development 4 Measuring economic development 5 Regional policy o 5.2 Exogenous growth model o 3.Contents [hide] • • • • • • • • 1 Intensive versus extensive growth 2 Does growth create development? 3 Models of economic development o 3. that growth causes development because some of the increase in income gets spent on human development such as education and health. Namely. education tend to increases in the country and later will contribute to economic growth. families and individuals will likely increase expenditures with the increased in incomes. which leads to increase in human development. . Ranis suggested that the first chain consist of economic growth benefiting human development with GNP. health. (2000)[12]. intensive growth is mainly driven by productivity growth and technological progress.1 Harrod–Domar model o 3. GNP increases human development by expenditure from families.1 Economic developers 6 See also 7 References 8 External links Intensive versus extensive growth A closely related idea is the difference between extensive and intensive economic growth. Does growth create development? Dependency theorists argue that poor countries have sometimes experienced economic growth with little or no economic development. Further. While economies in the pre-industrialization period grew extensively. intensive growth is a relatively recent phenomenon that came with modern economic growth. we view economic growth to human development as a two-way relationship. According to Ranis et al. There is an opposing argument. while intensive growth refers to the increase of per capita wealth. government and organizations such as NGOs. in cases where they have functioned mainly as resource-providers to wealthy industrialised countries. Moreover.

health care. The sources-of-growth measurement obtained from this model highlights the relative importance of capital accumulation (as in the Harrod–Domar model) and technological change (as in the Neoclassical model) in economic growth. it is believed that social outcomes can only be improved by reducing income poverty (known as Capability Expansion through Poverty Reduction). 2. safe drinking water etc. Assuming that the capital-output ratio is fixed by technology and does not change in the short run. The original Solow (1957) study showed that technological change accounted for almost 90 percent of U.. defines the improvement of social outcomes with essential services such as education.In addition to increasing private incomes. (known as Capability Expansion through Social Services). and β is the capital-output ratio).. Empirical studies on . the production function. increase in average income leading to improvement in health and nutrition (known as Capability Expansion through Economic Growth). benefiting each individual. economic growth in the late 19th and early 20th centuries. as noted in Anand’s article (1993)[14]. Thus. growth rate equals s/β (s is the saving rate. Unlike the Harrod-Domar model. Second. economic growth also generate additional resources that can be used to improve social services (such as healthcare. and clean drinking water. the labor supply function (related to population growth). Models of economic development The 3 building blocks of most growth models are: 1. we can view the relationship between human development and economic development in three different explanations. increasing living standards for the public.S.). unequal income distribution will be limited as such social services are distributed equally across each community. By generating additional resources for social services. The equation takes its name from a synthesis of analysis of growth by Exogenous growth model The exogenous growth model (or neoclassical growth model) of Robert Solow and others places emphasis on the role of technological change. growth rate is solely determined by the saving rate on the basis of whatever is saved will be invested. the saving function 3. the saving rate will only determine the level of income but not the rate of growth. Harrod–Domar model The Harrod–Domar model delineates a functional economic relationship in which the growth rate of gross domestic product (g) depends positively on the national saving ratio (s) and inversely on the national capital/output ratio (k) so that it is written as g = s / k. Together with a saving function. First. [13] To summarize. Thirdly.

. Information-led development Information-led development (ILD) most commonly refers to a development strategy whereby a developing country makes as a primary economic policy focus the creation and development of a national information technology (IT) sector with the express aim of relying on this sector as an engine of growth.developing countries have shown different results (see Chen. which is based on an endogenous demandside theory.1979 Hyper-growth in Asian Economies). one should know that the knowledge presented in countries that promotes technological advancement is not stationary. Also see. Krugman (1994). in our postindustrial economy. More recently. as a means to reduce financial exclusion in the United States. the new ILD model describes the use of data to generate actionable information or information solutions to development challenges. 73). This model was developed by G. a new formulation of ILD has emerged. One well known example is Bangalore in India. However. Even so. also known as alternative data.K. 1994 The Myth of Asia’s Miracle. where an . and the use of this information in underwriting. it seems to suggest that countries with same characteristics and technology will eventually converge to the same rate of growth. With origins in community economic development in the United States. With labour movement coming into factor. Foreign Affairs. However. Meaning that knowledge are linked to individual and not to the country. Notable examples of such countries are India and the Philippines. who maintained that economic growth in East Asia was based on perspiration (use of more inputs) and not on inspiration (innovations) (Krugman. provides these characteristics. Examples of this include the inclusion of non-financial payment obligations in consumer credit files.Y. economic development. including in emerging countries is now more and more based on innovation and knowledge. where the software industry has been encouraged by government support including Software Technology Parks. Snooks in Longrun Dynamics (1998) and Global Transition (1999).D. we can then predict the flow of knowledge which can then successfully lead to increase in technology Endogenous growth model A complete explanation of economic development requires a self-starting and selfsustaining model of economic growth that is not provided by neoclassical and Keynesian growth models. Creating business clusters is one of the strategies used. According to Lucas Jr (1988)[15] to compensate the movement of knowledge. when looking at the growth rate put forward from the neoclassical growth model. The dynamic-strategy model. P. E. we should implement factors such as labour factor to predict immigration flow.

From the oil fields which made Angola the 3rd fastest growing country in the world. the International Finance Corporation. The region is now experiencing growth. but none has applied this internationally except for PERC. the World Bank Group. including USAID. most notable in Brazil. even though one of the slowest growing continents. This variant of ILD was pioneered by PERC. This development model is gaining traction in emerging markets such as Colombia and South Africa. where the data is being used to reduce financial exclusion and facilitate credit access as a means to build wealth and form assets. employ variants of ILD. Measuring economic development Main article: List of countries by GDP (real) growth rate World map showing GDP real growth rates for 2008. Some countries have in the past been the fastest growing in the world. Oil in Africa has created 'wealth spots' were a few countries have exceeded their neighbors in wealth. there was a period of economic decline in Eastern Europe over the 1990s. After the fall of the Soviet Union.estimated 54 million Americans are shut out of mainstream credit access as there is insufficient information about them in their credit files to be scored by a credit scoring model. however growth has been stabilizing and the whole continent is growing. Other US-based organizations. If the Caucasus were included. North Carolina[16] . has stable growth. Europe has one of the most stable growth rates. a non-profit policy research organization and development intermediary headquartered in Chapel Hill. Equatorial Guinea reached 75% growth in 2004 because of oil reserves. followed by recovery in the 2000s. including Social Compact[17] and the Local Initiatives Support Corporation[18]. Out of the 10 fastest growing countries in the world. North America. South America has a Boom and Bust growth with high followed by recession growth. particularly in those countries that have recently joined the European Union. Most of the faster growing economies are in the Caribbean. to Zimbabwe the slowest growing and declining country in the world. Africa has seen the fastest growing but also the slowest growing/declining. and the Consultative Group to Assist the Poor. . 3 were African. It is also attracting increasing attention from development agencies.

has evolved into a professional industry of highly specialized practitioners. trade. Such efforts include monetary and fiscal policies. regional. high employment. and the other is to administer policy. and K–12 education. state. most of this has been dominated by China. workforce development. This third category is a primary focus of economic development professionals. Fiji and Chad. in the 21st century. however. only 1 is in Europe. Most nations with high populations have seen high growth especially. many smaller countries exceed 7% and grow exceptionally faster than their neighbors. Regional policy In its broadest sense. and projects. Some countries have negative growth. Some spots of growth are starting to appear in East and even South Asia. most often due to ongoing wars or hyperinflation. technology transfer. regulation of financial institutions. Zimbabwe. neighborhood development. Economic development practitioners generally work in public offices on the state. small business development. These economic development organizations (EDO's) function as individual . Out of the 10 fastest growing countries in the world. programs. Meanwhile Oceania has seen moderate growth. and sustainable growth. crime prevention. parks. business retention and expansion. Unemployment and Business Data. Economic developers Economic development. Programs that provide infrastructure and services such as highways. which is thus essentially economics on a social level. These include GVA. marketing. The practitioners have two key roles: one is to provide leadership in policy-making. Job creation and retention through specific efforts in business finance. Overall in the 20th century Asia was seen as the area with most growth.Europe would be one of the fastest growing continents in the world. Out of the 10 fastest growing countries 3 were directly in Asia. The only exceptional growth in Oceania has been on Vanuatu. or federal tax money. regional. These countries include Palestinean territories. affordable housing. or in public-private partnerships organizations that may be partially funded by local. Most countries are growing at a medium speed. policies of economic development encompass three major areas: • • • Governments undertaking to meet broad economic objectives such as price stability. Other sources of information can also be used to demonstrate economic development. however. or municipal level. and 3 indirectly or partially. and tax policies. and real estate development.

is a non-profit organization dedicated to helping economic developers do their job more effectively and raising the profile of the profession.500 members across the US and internationally. Many individual states also have associations comprising economic development professionals. foundations. state. With over 4. Therefore. universities. and nations for new economic development projects in today's globalized world. utility companies. With more than 20. too much emphasis has been placed on economic developers for "not creating jobs. rural. faith-based organizations.000 professional economic developers employed world wide in this highly specialized industry. technology development agencies. states. D." However. local. who work closely with IEDC. urban. as well as chambers of commerce. and increase in taxable basis are the most common measurement tools. consultants and redevelopment authorities. the economic developer must make sure that there are sufficient economic development programs in place to assist the businesses achieve their goals. health care providers.S. but facilitate the process for existing businesses and start-ups to do so. and colleges. This is widespread across the U.C. Those types of programs are usually policy-created and can be local. utilities. schools.entities and in some cases as departments of local governments. Additionally. There are numerous other organizations whose primary function is not economic development work in partnership with economic developers.[19] There is intense competition between communities. Their role is to seek out new economic opportunities and retain their existing business wealth. IEDC membership represents the entire range of the profession ranging from regional. and international economic development organizations. help with investment capital. . When considering measurement. They include the news media. regional. the use of community profiling tools and database templates to measure community assets versus other communities is also an important aspect of economic development. and other education or research institutions. Many believe that progress made in economic development is caused by chance and that they had little to do with it. tax incentives. educational institutions. donated land and many others. Job creation. economic output. IEDC places significant attention on the various activities undertaken by economic development organizations to help them compete and sustain vibrant communities. serving exclusively the economic development community. the International Economic Development Council [IEDC] [3] headquartered in Washington. the reality is that economic developers do not typically create jobs. and the struggle to attract and retain business is further intensified by the use of many variations of economic incentives to the potential business such as. statewide and national in nature. There are issues with economic development professionals' attitudes towards both themselves and their careers.

2007 by Jeremy 14 1diggdigg This is part 4 of an exploration into why some countries are poorer than others. .• About o o o Contact FAQ A note on faith • Events Luton events London events National events International events Problems o Peak oil and resource depletion o Climate change o consumerism o poverty o waste Solutions o Personal actions o transition towns Campaigns and actions o Beyond Growth o Unfairtrade o latest actions Resources o Books  latest reviews o Investigations o o o o • • • • RSS Subscribe: RSS feed Make Wealth History Because the earth can't afford our lifestyle Cultural and social factors that affect development Posted on July 1.

French speakers in Canada complain of the opposite. There is nothing wrong with having lots of children. Another division may be the role of women. which has both French speaking and English speaking regions. More serious forms of exclusion would be apartheid South Africa. If women see staying at home and bringing up children as their chief role. When women are educated and given a choice. Racial discrimination may be an issue. thereby equipping the next generation with the health. a racial category or minority language group.’ As Paul has talked about here before. you have effectively halved the earning potential of your country. Welsh speakers in Britain. world population has exploded. I have already mentioned Cameroon. That leaves more mouths to feed. If there are certain people groups that are discriminated against. This may be a tribe. and others will pursue careers or start small businesses. Discrimination is one of these.Discrimination Sometimes there are social or cultural factors that hold back poor countries. Jeffrey Sachs talks about this in The End of Poverty: ‘Cultural or religious norms may block the role of women… leaving half the population without economic or political rights and without education. and education that can lift living standards in future years. Jeffrey Sachs again: ‘With fewer children. a poor household can invest more in the health and education of each child. a caste. or Catalans in Spain. they will have more children than those who work. have historically faced similar problems. and just not enough to go around. . Population Closely linked to this is the population issue. as long as you can provide for them. which was disastrous for Uganda’s economy. some will stay at home and look after children. Racial minorities regularly have poorer exam results and economic prospects than the majority. either deliberately or not. as some countries have seen their population double or triple without their economies keeping pace. This is an important factor. or the Asian communities driven out of Uganda under Idi Amin. thereby undermining half of the population in its contribution to overall development. nutrition. What is interesting is that the countries where this has happened are often those where women do not play a role in business or society. the country’s overall productivity can suffer. excluding certain groups from economic activity.’ If you don’t believe that women should work. All the infrastructure happens in the French speaking part.

it was assumed that Hindus would lack the ambition required to innovate and do business on an international stage. Some cultures believe in a greater good. China may be a major power now. or even went backwards. Rich countries can be overconfident and brash. locking countries out of development.Culture I’ve already mentioned the role of women. or radical philosophy still has some countries closed down to outside involvement – communism in North Korea. Because everyone accepts their place in the world. and stagnated. but we have to watch our own biases as we seek to understand why some countries succeed and others fail. uncertain of their place in the modern world. Hinduism was often cited as one of the reasons why India would never develop. ‘A country which neglects or despises foreign commerce… cannot transact the same quantity of business which it might do with different laws and institutions. I love the fact that not turning up for work is called ‘taking French leave’ in England. Korean economist Ja-Hoon Chang quotes a 1911 travel book that describes Koreans as “sullen. . every tribe believes that every other tribe eats cats. but our language and traditions are still full of little prejudices that imply we are better than others. and ‘filez a l’Anglaise’ (or ‘doing an English’) in France. ‘China seems to have long been stationary’. suspicion. In his The Wealth and Poverty of Nations. hopeful. or was the writer simply being superior? We understand each other better than ever in our globalized world. in the rule of law.’ The limits of cultural interpretations At the same time. A Malagasy friend once joked that in Madagascar. something that hardly holds true today. The recent growth in India’s economy proves that wrong quite spectacularly. trade and development. In short. but culture can have hidden effects in business. Others can be paranoid. culture no doubt plays a role in development. angry. but culture works in subtler ways too. but nationalism. ambitious and ready to pull together. Part of this was cultural. Adam Smith wrote in 1776.’ That’s changed. cultural influences on development are notoriously hard to call from the outside. So did Korean culture change. but it was the world’s most developed country in the middle ages. resistant to change. in his Wealth of Nations. economic historian David Landes says ‘If we learn anything from the history of economic development it is that culture makes all the difference. in unity. or extremist Islam in Taliban Afghanistan. This the far end of the spectrum. fragmented. They are optimistic. for centuries. lazy and religionless savages”. and that our neighbours are lazy and dirty and uncouth. a pride and sense of self-sufficiency that led to a closing of China’s borders. Poor countries can see themselves as victims and become despondent.

8 bn by 2020. we consider the relationship between development and sustainability. around 1. of which the economic component is an essential part. and appears to be around 0. Today. First. However. Success stories such as Singapore and Hong Kong stem from a rich history of complex institutions. Disparities and similarities. it may well be that the nation is the wrong focus. Achieving anything resembling catch-up is. and the most effective segmentation has been . however. the poorest 80% of the world's populations created around 2.Factors affecting economic and social development Factors affecting economic and social development This section considers the economic and social development of the non-industrial world from two perspectives. We collect statistics which re-enforce this view. The perspective that we take upon this is closely similar to the view that we advance elsewhere about the fundamentals behind economic growth anywhere: that this is a manifestation of the working of a complex series of interlocking systems. by age and by nationality. however. want things of the other and both will have the capacity to do the other harm. perhaps. evidently. this had fallen to 1. We discuss some of these approaches elsewhere. The relations between the poor and the rich will be closer-coupled than ever before in history. how we think about divisions often define our approaches to solutions. power and access to knowledge will also be asymmetrical. indeed. but around the same number live on less than US$1 per day. both social and economic. About the same number lack access to safe water and twice as many live without adequate sanitation. and that we need to think in a more subtle way in order to see what is going on.1%. Economic differences around the world are typically thought about in national terms: that country A is richer than country B. The relationship will remain lopsided insofar as wealth. probably to the middle of the C19th . which will rise from something over 6 billion in 2000 to. some way off. A Chinese mandarin and British country squire may each have enjoyed a standard of living which was closer to the other than it resembled that of their nation's peasantry. In the period up to the industrial revolution .social class was the key discriminator.6% of the tradable wealth in 1960. Since around 1840. the key limits to creating a more complex framework within which to generate wealth seems limited more by internal institutional issues than by factors such as capital or human resource.9% of all value added at the turn of the century. we review what is known about development. However. a long way to go in the development of these systems. Each will. There are various ways of segmenting the situation in which people finds themselves: by income and by attitude. national wealth has become sharply more differentiated. However. however. We do this in the light of the growth in population. In purely economic terms.2 billion people inhabit the wealthy nations. Second. There is. By 1980.and. human resource and the pursuit of the best.

people are still treated as property in many parts of the world and there may be more de facto slaves alive than ever before in history. The economic element depends markedly on the functionality of all of the other facets. light. mineral nutrients and the like. and poverty the norm. Whether co-incidentally or not. often under extreme conditions. this event coincided with the growth of national identity and nationalism. Great progress has indeed been made: in the twenty years since 1980. whilst those with access to safe water rose from 13% to 71%. was of a similar wealth to Africa in 1950. Asia. School enrolment has risen by similar proportions. Some 1. The disparity is around 100:1 in 2000. Forest have been felled. Per capita incomes are thought to have differed between nations by.that of political boundaries: the mean and statistical way points by which wealth was distributed amongst . Today. then adding what is needed or otherwise adjusting the system to correct the limit will produce a burst of growth. in settled accommodation. Studying this. Any one of these can be a limiting factor and restrict the plant's growth. Its economic wealth per capita has increased substantially.000 children are currently fighting as soldiers.Americans became increasingly distinctive when compared to most of the rest of the world. When the supply of any one of these is limiting. On the negative side. Africa had failed to organise itself to grow its capabilities and to extend its options. 44:1 in 1970 and 72:1 in 1992. and there is a growing tendency to view poverty as something to be eliminated. and its citizens are thus individually poorer than they were half a century ago. Around 100 million children live on the streets and about the same number. have no access to schooling. and the equivalent checks have been removed. the wealthy world spends around a third of its income on internal poverty relief. we have reviewed the fundamentals of economic growth. the World Bank was able to show a pervasive influence of institutions and social organisation in what had happened. the proportion of stunted children in the poor world fell from 47% to 37%. water. Elsewhere. This had risen to 35:1 in 1950. a factor of three in 1820. the creation of security or a change in .say .2 million girls are used in prostitution and 300. a plant needs air. by contrast. Asia had. Development appears to occur when a number of necessary components are put in place. Injections of capital. 'development' was seen as something extraordinary. Life expectancy in the poor nations has risen by 10 years and adult literacy has also risen. according to the UNDP. succeeded in doing this. from about half to three quarters of the population. To grow. noting that this is one easily-measured facet of something much more complex: the growth of the general capabilities and complexity of a society. There are about quarter of a billion child labourers at work. Six million have been injured in armed conflicts during the 1990s. the correct temperature. at most. in part. A century ago. Sub-Saharan Africa has grown less rapidly than its population since 1950. The next section reviews what this may have entailed The development process. mines exhausted and the natural wealth lessened in this period.

political balances may correct something which was limiting in the social fabric of a nation, and a burst of activity will follow. Much of the early literature on development extrapolated from individual events of this sort to general - usually economic prescriptions. We now know that his is an inadequate approach. Nations which are limited in one particular manner - as was, perhaps, China during the cultural revolution and its aftermath - may show rapid and multifaceted growth once this constraint has been removed. Nations in which very few of the required features are in place will, by contrast, prove refractory to almost all interventions. Nothing happens because too many links in the necessary systems have yet to be put in place. What, in broad terms, are these features? They fall into three major categories: the maintenance of stability, constructive economic change and overall social cohesion. We examine these in detail in a moment. Each of these elements consists of many contributory parts. Most of these form cross-links between these categories. Taken together, however, these factors create a system which gives rise to the phenomenon of development. In essence, a complex system - the society - is able to become more even complex only when all of the parts that are necessary to is adaptability are firmly in place. When they are not, then local systems of governance and the scope of individual aspirations are limited to relatively simple and established horizons. Malfunction or weakness within the individual parts of the overall developing system naturally put a brake on development. Removing one of these limitations may create a spurt of activity. Such responses have led to many false dawns, in which the key to development is seen to be anything from rural credit to female emancipation. Each of these has a role to play, but it is a role within the evolving complex system, not a magic bullet that will kill all ills. In addition, however, there are specific pathologies - such as the pervasive influence of corruption - which create their own, self-contained systems, and these actively oppose constructive change. We discuss corruption later. External events may help development or they may hinder it. The terms of trade which are currenlt expereinced by the exporters of primary products - that is, by most of the poor or agrarian nations - are worse than they have been for fifty years. The developed countries have often established tariffs against manufactured goods, making it harder for the poor nations to add value to primary products, such as leather, cotton or metals. In addition, many industrial nations subsidise their domestic agriculture, often to the extent of over-producing food which is then placed on world markets or shipped as aid. As a consequence, world food prices are depressed, to the detriment of the world's peasant farmers. In addition, where food aid is made available over protracted periods, local producers may be driven out of business. Nevertheless, both the world's spectacular development successes and its failures have been conducted against against this backdrop, so it cannot be entirely or even primarily responsible for either of these. Let us return to the factors which drive development. Statistical analysis shows that stability is the most influential of these three components. The term 'stability' can be used in two senses. A nation (or firm, or social group) can be unchanging and predictable if it is paralysed by an oppressive force or an intractable problem. By contrast, a structure

may be stable because it reacts flexibly to change: its surface manifestations change, but the core is retained and continues to inform its actions. This second kind of stability creates the conditions for economic development . It affords a framework within which individual agents can operate in confidence, knowing that the society will continue to function within well-understood guidelines, despite its continual re-adjustment to meet changing conditions. Stability and predictability. Political institutions that generate dynamic stability Separation of powers: checks and balances, all under the law Successful management for overall economic stability. Infrastructure provision, including human skills Military security and a stable civil operating environment Competition and renewal. The 'right' pace of change, balancing erosion with renewal Appropriate human resources supply, including labour markets Consumer purchasing power, confidence and saving Social cohesion and paths to self-betterment. Cohesion: tolerance across vertical and horizontal divides Access to political representation and dispute resolution Policing and security of property, tenure and person. Access to and equality before the law Access to education and information Access to work, security in work, transitions between work Management of the extremes of inequality This is a protracted list and it is beyond the scope of this site to explore it in detail. The World Bank development reports, UNDP reports on Human Development and related publications offer detailed insight. The key insight to be gained is how complex a process in involved, and how many things need to be 'got right'. The balance between these component parts need to change as development proceeds, and very fast economic growth may, for example, through balances which used to work out of alignment. For example, the informal networks that characterised decision-taking in the public sector in many Asian countries cease to work once the society becomes more complex and more coupled to the outside world. Internally, they cease to work because the now-educated majority are not prepared to be 'managed' by an oligarchy. As the society couples to the outside world, too, the checks and balances amongst the oligarchs weaken. They find capital and partners overseas, and collectively undertake actions - such as borrowing, or capacity extension - which prove

disastrous. Previous systems - of quite discussions in clubs, in possessing a shared intuition of who was doing what - no longer function. New institutions need new systems of governance. Studies of banking crises in developing countries show that these consume the equivalent of decades of economic growth. Their affects may last for decades, as is presently the case in Japan. The Asian collapse of 1998 - and the Japanese crisis of 1987 - stemmed from inadequate controls and from poorly formed views amongst the actors as to what reasonable. "Development" is, for the wealthy as much as for the poor nations, a matter of increasing the social, economic and political complexity of their societies so as to be able to cope with increased volumes and options in each of these areas.

Figure 1: Long-run paths to development. The figure shows a well-respected index that the United Nations has established for social development: the human development index, or HDI. This has been estimated for the currently-industrial and currently-poor nations for the years 1870, 1930 and 1995. This is plotted against the relevant income per capita for these years. The resulting arc shows that all nations go through much the same stages of human development as they grow richer.

. That is. A very similar relationship is found with measures of risk. have weakly enforced standards and. the World Bank found that nations which had strong laws of contract and strong enforcement of these tended to re-invest about 30% of national income. These had shown themselves to be 'safe pairs of hands'. Foreign direct investment followed closely similar patterns. very often. have poor levels of enforcement of property rights and commercial agreements. Low income countries are volatile and risk. whilst nations which scored well on neither of these measures invested at less than replacement rates. they ran themselves down as a wealth-generating engine.Figure 2: Increasing levels of transparency of governance with income. Attempting to estimate the impact of this. Nations which scored poorly on one of these measures re-invested around a fifth of national income. Over four-fifths of the net inward investment went to only eight countries of the 150-plus developing nations. This plots a reasonably objective measure of probity in public and commercial life against income per capita. for lack of confidence in their own systems of management. The change in governance which is necessary with increasing social complexity is suggested by Figure 2. as assessed by capital markets.

societies which tolerate extreme exploitation are unlikely to prove prospects for long-term growth. but it can hugely undermine societies where complex systems of governance and scrutiny have yet to be put in place. before the economic collapse of the region. too. however. how societies are integrated into the world community depends on how well they have established these structures and how well the 'sell' themselves.Figure 3: Low income countries deliver 'difficult' work forces. It is a mistake. even where there is economic predictability. The habits of work (and of handling work forces) have to be learned. child exploitation or local environmental damage may damage external relations. or useful short-term partners in anything but a one-off relationship. Increasingly. We can take from this two thoughts. Second. and the capacity to build depends on the coherence and integrity of what has been done so far. or to contrast a 'lazy' workforce in the wealthy world with tireless hands elsewhere. Japan and Chine in 1995. Figure 3 contrasts entrepreneurial views of the Asians Tigers. First. . Firms will not wish to build relationships where NGOs and others may point to local malfeasance. however. factors such as excessive repression. for example. Corruption is a significant problem for all nations. It strikes at four levels. that development is a complex process whereby systems are built to handle increasingly complex societies. to imagine that labour relations are somehow more natural in poor nations than in wealthy ones. In general.

offering critique and accessing distinctive views of the world. . Figure 3 shows the scale of this in the very poor nations.• • • • Funds are stolen and taken overseas. the state is a predator. such as the military. Ethnic groups come to dominate key ministries and other areas. Such 'pork' projects are almost never given maintenance funding. The various organisations are set into effective competition with each other. The population lose trust in civil society: law is for the wealthy. Nepotism is commonplace: relations are promoted to jobs which they are unable to perform satisfactorily. forming alliances with the citizens as a whole. Oligarchic interests cannot capture the reins of power so easily. the police and minor bureaucrats sell permissions to operate and come into the average life in order to extract a fee. Tax evasion impoverishes the state. often at levels which are comparable with net investment. where default either precipitates a banking crisis or leads to unsustainable overseas debt. Decisions are taken on poor grounds: bridges are built where they are not needed. The separation of powers has proven to be a major component in the success of the complex nations. Figure 4: Poor nations may recovery only 20% of the tax due to the state. Executive power is abused to raise loans. which they then exploit for sectarian purposes. and regulatory evasion cripples its capacity to direct and operate.

Figure 5: Autocracy on the wane? This necessary pursuit of pluralism is reflected in the political complexion of the nations of the world. will demand that this progress is rapid. bred by the popular media and the impact of population growth. The growth in expectations. since the drive by the international agencies to bring pluralism to the nations which they serve. however. Despite an extraordinary increase in the number of political units. the trend away from autocracy has been pronounced since the fall of the Soviet Union and. access to capital and information and the rapid expansion of the basis of educated people will all have a positive effect on economic and social growth. Most will. intellectual property and other assistance if they are do so rapidly. need substantial injections of capital and managerial talent. . Many nations will begin to play a constructive role in the international community. Global trade. not independently.

It is less easy to train people to play an active role in this potential. however. below. it is difficult to manage the transformation of an oligarchic society to one with ever-increasing levels of inclusion.the one billion or so in the wealthy world . It is. in making hand tools. The upper figure shows that the nations which create the top 80% of world product . here will be more graduates than there were people living in 1900. The very rapid expansion in human talent that will become available is shown in Figure 6. and the logarithmic expansion of scientific production with wealth. it is idle to suppose that the poor nations will suddenly become rich. Figure 7.create virtually all of the science that is published. many in making aircraft. In particular. Figure 7: Complex industry and science have been the perquisite of the rich nations. It is relatively easy to import the means to add value. shows the focus of complex added value on the traditional economies. This index is compared to the development stage of the nations for which this activity is of importance in manufacturing industry.Figure 6: An unprecedented expansion in the skilled population. Despite this. By 2020. even harder to create the complex framework within which these economies operate. The figures confirm the impression that complex things are chiefly undertaken in complex economies. The complexity of which is inherent in various standard UN statistical categories is estimated from the number of processes which need to contribute to the finished good: few. Where there are . The lower panel shows that only the complex economies undertake complex manufacture.

Figure 8: Measures of civic involvement . then natural processes imply that oligarchy is almost inevitable. Third. • • • First. Modernisation of institutions is a gradual process.courts. Such models lend themselves to corruption and tend to distance between the state and the governed. Work by Putnam et al on Italian city states (and more recently. and then fall with increasing wealth. on US counties) has shown extraordinary long-run correlation between institutions and subsequent performance. Second. Change to a more complex society involves ceding political power to the majority. and this will set the limits to what can be achieved. There may be civil disturbance as a result of this. many nations start from poorly designed political or administrative institutions. drainage provision . and foreseeable changes which may occur within these. Measures of inequality tend therefore to peak as agricultural consolidation reaches its peak. the likelihood of its being achieved by accident is low. the pace of achievement . often adopted from a central planning model that was prevalent during the wave of de-colonisation. However.few educated people and limited sources of wealth.may well prove frustrating to the citizens of these countries. the performance of the developing world is largely contained in the structures which have already been put in place. Discussion on the growth prospects of the industrial nations showed the long-run stability of economic performance. The implications of this are threefold.in Italian city states affect economic performance many decades later. Such trends are often resisted by clans and classes which have acquired a privileged position. but without understanding of what change is needed. urbanisation and mobility. Intervention always touches that which matters most if it is to be . This is not of itself an easy process.and the shocks and irregularities imposed by weak institutions . those wishing to improve the lot of these nations have a complex task ahead of them.

The three cases shown have these rates adjusted progressively to the best in their group's historical performance. in many instances.successful. much as Africa has stagnated during the previous half century. One billion get richer. We have made some estimates in the potential change in per capita income over the period to 2020. But some form of intervention . Figure 9: Prospects for 2020. The figure shows nations stacked from the poorest (left) to the richest (right) in 1997. The result of doing this is shown in Figure 9. The line shows how income per capita stood in 1997. two billion undergo unstable fast change that is highly policy-dependent and about four billion see life getting progressively less tenable. Individual nations are projected forward. the worst or a median position. needed. The three cases are as explained above. but the four billion or so people living in the poor world see scant improvement on a per capita basis. despite modest growth. based on their economic performance and population growth during the past 20 years. The population of the wealthy world is contracting and so incomes rise rapidly. The field opens for the middle income nations.in macro-economic management. Appetite to engage in this seemingly bottomless ocean of problems may be limited. The nations are divided into a number of homogenous groups. not a forecast. . The aim is to give a sense of the dispersal that it is reasonable to anticpate. for example .are more 'sanitary' than the political reforms which are.

can impact widely and rapidly.a biotechnological accident. shown in Figure 10 suggest otherwise. because the sources of wood have been destroyed or because they have moved to cities. The craggy. as are the downlands and moors of Northern Europe By 2020. A person living on the edge of survival uses around half a tonne of oil equivalent per annum in order to cook. close-coupling of the world means that what occurs in one part of the globe . Plant run at very low levels of efficiency. It is a fallacy to imagine that poor nations operate innately sustainable economies. are often conducted in damaging ways. electricity and coal. leads to erosion. Figure 10 poor nations tend to be less sustainable than rich ones. such as agriculture and mining. in the order of two billion people will have shifted from the use of theoreticallyrenewable sources of energy. We have reviewed the impacts of instability and poor international security elsewhere. where there is scant alternatives. Most of the Mediterranean was covered in lush forest after the last period of glaciation. such as wood and dung. In brief. World Bank estimates. Primary activities. The capital implications of the required plant are devastating. It may well be that that the prospects that have been outlined in the previous section prove difficult for those not previously connected to the poor world. limestone-dominated appearance which we have learned to expect is human in origin. and economic miscalculation . We have also discussed environmental issues elsewhere.Stability and sustainability. Two billion people therefore use nearly 20 million barrels of oil equivalent per day. for example. They will do this from preference. as well as embodied in the plastics and metals that they use. Traditional slash and burn agriculture. The foreign exchange needs to pay for imported fuel will be huge (energy prices may well be . to traded energy such as oil. light their nights and get about. Machinery and vehicles are often obtained second or third-hand from Western sources (or form the former Soviet bloc) and the efficiency of these reflects their age. soil impoverishment and the destruction of the resource.

however. Unfortunately. inward investment and rapid economic change. and its demand for energy has remained static. . Much the same can be said for its use of other primary goods: metals. increasing their demand. such processes are predicated absolutely upon credible domestic institutions. Thus sustainability requires the opening of developing economies to global drivers to best practice. Figure 8 shows the trajectory of a number of countries in the 1960-92 period. with some undershooting (Korea. as we have seen. Efficiency . All follow broadly the same 'salmon leap'.higher than they are today.the so called 'energy intensity'. water and sewerage.demands immense investment. education and other needs that must be afforded by some of the poorest people on the planet. transport. These may be slow to arrive unless actively encouraged by those able to deliver the impetus and the oversight that is needed. they celebrate their new wealth with air conditioners and vehicles. Sustainability demands efficiency. Energy demand is the product of economic activity and the effectiveness with which value is added with respect to energy . since corrected) and some overshooting (Argentina. during which time both tier income and their car populations normally increased. far more than either aid or domestic saving can provide. political and economic predictability and minimal corruption. for example. The absolute volume of economic activity will more than double in the industrialising nations over the period. Figure 11 vehicle populations tend to expand in a common manner with increasing wealth.particularly in the economic context which we have discussed . are efficiently recycled in most economies. due to the peculiarly isolationist policies of successive government. Indeed.) These are. health. and these nations have yet to make corresponding efficiency gains. only proxies for the housing. The industrial world has cut its intensity for a long period.

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