Afghanistan - Current economic position and prospects

Report No. 684a-AF Current Economic Position and Prospects of Afghanistan FILFCOPY July 7, 1975 Country Programs Department I Division 1 D Europe, Middle East and North Africa Region Not for Public Use Document of the International Bank for Reconstruction and Development International Development Association This report was prepared for official use only by the Bank Group It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  CURRENCY EQUIVALENTS INF Rate 1 US dollar = 45 Afghani 1 Afghani = .022 dollars Free Market Rate Septemnber 1974 1 US dollar = 53. Afghani 1 Afghani = .0187 dollars Average Rate 1973/74 1 US dollar = 61 Afghani 1 Afghani = .0164 dollars All conversions are made at the average free market rate during the Afghan year. NOTE: The Afghan year is March 21 to March 20, therefore 1973/74 refers to March 21, 1973 to March 20, 1974.  PREFACE This report is based on the findings of an Economic Mission which visited Afghanistan in October-November 1974. The Mission was composed of Messrs. Vinod Dubey (Chief of Mission), Francis Colaco (Fiscal Economist), Cyrus Ardalan (General Economist) and Chandra Sharma (External Debt Specialist).   CURRENT ECONOMIC POSITION AND PROSPECTS OF AFGHANISTAN TABLE OF CONTENTS Page No. BASIC DATA SUMHARY AND CONCLUSIONS ...... .................... i-iv I. INTRODUCTION ..................................... 1 Economic Structure and Institutions .... .......... 2 Objectives of the Republican Government .... ...... 3 II. ISSUES IN DEVELOPMENT POLICY ..... ................ 4 Administrative Reform. Project Formulation, Selection and Implementation. 5 Education, Training and Manpower Planning .... .... 6 Domestic Resource Mobilization ..... .............. 7 Coordination of Economic Policies .... ............ 8 III. ECONOMIC DEVELOPMENTS AND PROSPECTS .... .......... 8 Overall Economic Developments ..... ............... 8 Agriculture ......... .................... 10 Industry and Mining ...... ................... 13 Planning ......................................... 1-5 Public Finance and Monetary Developments .... ..... 18 Balance of Payments, External Aid and External Debt ........... ............................. 20 ANNEX A: Public Finance ANNEX B: Monetary Developments and Policies ANNEX C: Balance of Payments STATISTICAL APPENDIX MAP OF AFGHANISTAN   Page 1 of 3 pages EASIC DATA 1/ AREA POPUIATION Total: 635,00o km' Total: 18 million = 63 million hectares Rural: 13 million Arable: 8 million hectares Nomadic: 3 million Pasture: 40 million hectares Rate of Growth: 2.3% EDUCATION (1970) HEALTH (1969) Adult Literacy Rate: 8-10% Population per physician: 32,000 Primary School Population per hospital bed: 6,890 Enrollment Ratio: 22, (Adjusted) 2/ GNP per capita (1972): $80 Rate of Growth: .8% (1965-72) LABCR FORCE (1973/74) % Q(171/72-1573/74) Millions of Total Rate of Growth Agriculture 3.