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AFGHANISTAN
Economic Freedom Score
25
Least free 0

50

75 100 free
Most

World Rank: Not Ranked

Regional Rank: Not Ranked

This economy is not graded Freedom Trend

economic not be graded A fghanistan’slack of officialfreedom couldare not comprebecause of a reliable comparable data. The government’s compilations of economic data

hensive, and many of the international sources relied upon for Index grading contain incomplete data on Afghanistan. This assessment is based on the limited data available from government and international sources. Over the past 10 years, Afghanistan has undergone a challenging economic transition requiring significant institutional development. Growth rates have been high but volatile. Real GDP growth, driven mainly by agriculture and construction, has averaged almost 10 percent over the past five years. Large volumes of foreign aid have yielded some improvements in such areas as health and education. Operating under difficult developmental circumstances, Afghanistan remains severely burdened by numerous systemic shortcomings worsened by ongoing security challenges. The government’s weakness, exacerbated by vested interests and corruption, has hindered politically difficult policy reforms and eroded trust. Previously implemented reform measures have not been sustained, with political uncertainties further undermining progress in economic reconstruction. BACKGROUND: President Hamid Karzai is constitutionally required to hand power to a successor following elections scheduled for April 2014. The U.S. and NATO have committed to withdrawing all combat forces by the end of 2014 but will continue to fund and train the Afghan National Army and provide development aid. A bilateral security agreement will determine the levels and conditions of a post-2014 U.S. troop presence. The U.S. is seeking peace talks with the Taliban, but

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