KABUL (Agenices): The UNDP Afghanistan revealed a socio-economic report on Thursday, shedding light on the country’s challenging situation since August 2021. The report, titled “Two Years in Review: Changes in Afghanistan’s Economy, Households, and Cross-Cutting Sectors,” highlights restrictions on women’s rights and a weakened banking system are urgent concerns requiring international cooperation.
Despite some positive developments in areas like macroeconomic stability and security, Afghanistan’s overall path remains challenging. The report shows that Afghanistan’s economy has shrunk by 27% since 2020. It also introduces the Subsistence Insecurity Index (SII), which indicates that 69% of Afghans don’t have enough resources for basic living.
The report highlights some progress in certain areas like macroeconomic stability, security, and control of opium production and illicit trade. However, it emphasizes that these gains have not been sufficient to alter Afghanistan’s overall course. It added that the severe impact of humanitarian and economic crises, along with restrictions on women’s rights, on Afghanistan’s female population.
Women face limited access to public spaces, reduced food consumption, and increased income inequality compared to men. Alarmingly, the proportion of employed women has nearly halved, dropping from 11% in 2022 to just 6% in 2023 across all sectors. Stephen Rodriques, UNDP Resident Representative in Afghanistan, emphasized the role of international assistance and said, “International assistance has helped save millions of Afghans from starvation, sustained the delivery of essential social services, and ensured the continuation of hundreds of thousands of livelihoods.”
“However, humanitarian assistance is declining at a time when an overwhelming majority of the Afghan population remains highly vulnerable, and subsistence insecurities remain very high. The assistance and efforts require complementary investment to stimulate the recovery of the private sector, financial system, and overall production capacity of the economy,” the report added. It further highlighted the importance of addressing challenges in the banking system, particularly the microfinance sector.
This sector plays a vital role in financing women-led micro and small enterprises, which have seen a significant 60% contraction since 2021. UNDP emphasizes the need for urgent actions to prevent further decline in Afghanistan.
The organization calls for a comprehensive approach that prioritizes sustaining livelihoods, ensuring the well-being of the most vulnerable, especially women and girls, and focuses on local economic development, resilience to shocks, and strong private sector-led growth. Meanwhile, the report stressed that it is crucial to prioritize women’s economic participation at the forefront of any efforts aimed at addressing Afghanistan’s crises.
