John Sullivan: An Economic Handover in Afghanistan
Afghanistan’s economic and security futures are intertwined; neither will be secure without the other. After ten years of NATO engagement in Afghanistan, President Karzai recently announced a military milestone: Afghan army and police are to take full responsibility for security in several regions of Afghanistan including Kabul, several cities in the North, and Lashkar Gah in the contentious Helmand province. As we watch this handover begin, we should also encourage a similar transition within the economic development sphere. The key to establishing long-term stability in Afghanistan lies in the country’s ability to create a business environment that provides jobs, income, and sustainable economic growth for its people.
Afghanistan’s small businessmen and traders are a dynamic segment of the growing economy. Despite the hardships they face each day, they remain optimistic about their future and the role they can play in rebuilding Afghanistan’s economy. When policy debates over the country’s economic future occur, they are often held within the halls of government ministries and donor offices. Yet, the voices of those closest to the on-the-ground realities of operating a business in Afghanistan are seldom, if ever, heard. Economic reform experience has taught us that while big picture reforms and infrastructure projects are important in creating the institutions of a market, small scale adjustments to policy most often affect the operations of entrepreneurs in the short term. The voices of those entrepreneurs need to be included in the policy debate.
Simply put, Afghans need to be in greater control of the economic decision making facing their country, and the Afghan business community’s new National Business Agenda (NBA) helps build a framework for this to happen. At a roll-out event for the NBA this week, Afghanistan’s Chamber of Commerce and Industry and a coalition of 10 other leading business groups representing the country’s small producers and service providers presented their ideas and recommendations for Afghanistan. The NBA is not just another ambitious economic development strategy; instead, it is a clarion call for the Afghan government to pay heed to the most pressing issues facing the business community today, and to the simple policy changes that can immediately improve profitability, increase tax collection, and create much needed jobs.
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