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Afghanistan with the highest per capita Kalashnikov count, faces stupendous task of reconstruction, which according to UN officials will cost $10 bn.
Afghanistan's past and present has been a saga of exploitation by various forces. It started with Alexander the Great who first subjugated Afghanistan in around 330 BC. Geo-politically, Afghanistan lies on the trade route between the Far East and Asia and the Middle East and Europe and thus had a turbulent history. It has been the region for power struggles of empire builders and neighboring countries for centuries. Great Britain, the former USSR, the US, have all exploited it for selfish ends, not excluding Pakistan that finally led to the present conditions. Afghanistan's economy has witnessed widespread destruction during the past two decades of war; a three-year drought and the fluid political situation. These have all taken their toll. Most of the major social, administrative and economic institutions of the country are seriously damaged and need a huge investment for revival, after peace and stability are restored in the country.
The tragedy of Afghanistan is that its economy has always remained vulnerable to policy decisions adopted by the neighboring countries. In the past, its economy depended on its relations with the former USSR. In recent years, it became vulnerable to policy decisions made in Pakistan. This economic decline has exacerbated the level of poverty and economic hardships throughout the country. The World Bank's approach on Afghanistan now therefore focuses on planning and management of reconstruction.
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