Afghanistan - Current economic position and prospects (Vol. 1 of 7) : Main report

To B3E TuI SJ D.ES- K ~ ~~s~3 DSK RESTRICTED Report No. SA-29a This report is for offlcial use only by the Bank Group and specificaUy authorized organizations or persoas. It may not be published, quoted or cited without Banki Group authorization. The Bank Group does not accept responsibility for the accuracy or comp.leteness of the report. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION CURRENT ECONOMIC POSITION AND PROSPECTS OF AFGHANISTAN (in seven volumes) VOLUME I THE MAIN REPORT February 1, 1972 South Asia Department *6  CURRENCY EQUIVALENTS Afs per $Afs 1,C Official Rate (July 1971) 45 22.22 Bilateral Rates (July 1971): USSR 60 16.67 Easter Bloc 55 18.18 Expot Surrender Rates (June 1971): Wool (bilateral) 45 2 2.22 Wool (multi) 55 18.18 Cotton (bilateral) 148 20.83 Cotton (multi) 70 14.29 Karakul (multi) 65 15.38 Free Market iates: March 21, 1963 55.51 18.01 March 21, 1964 72.22 13.85 March 21, 1970 78.77 12.70 June 1970 81.56 12.26 June 1971 89.6 11.16  This report is based on the findings of an Economic Mission which visited Afghanistan in June-July 1971. The Mission was composed of the following members. A.R. Abdel Meguid - Chief of Mission F. Stubenitsky - General Economist B. Kavalsky - Development Economist M.S. Aiyer - Industrial Economist Y. Park - Industrial Economist A. Freyman (Consultant) - Economic Geologist G. Barry- (Consultant) - Mineral Engineer L. Napolitan (Consultant) - Agricultural Economist L. Walinsky (part-time) - Industrial Adviser H. Hughes (part-time) - Industrial Adviser  BASIC DATA Aroa: Totalo 635o,000 km 63.5 millon hectares Arable: 14.0 million hectares (22 percent of total) Crvpped: 5.1 million he:ctares ( 8 percent of total) Population: Total: .3 Million (97O) Rural: 110.5 million (1970) Rate of Growth: 2 percent (1967-70) Population der$sity per square kilometer: 22 Population density per square kilometer of arable land: 100 Popuation density per square kilometer of cro ad land: 368 Political Status: Constitutional monarchy. .Oross Domestic Product at constant 1967 prices (1970): US$ 1,505 million (at official rate) Real rate of growth: 3.5 percent Per capita GDP: Los than $100 Gross Domestic Productat factor cost (19L7 prices): 9967 1970 1,310 million $1,460 million $1,5 million of which, in percent: Agriculture 41.7 42.2 Livestock 9.8 8.9 imn & Quarrying 0.4 0.7 Manufacturing & Handcrafts 11.7 10,8 Construction 1.6 1.5 Trade & Transport 19.7 19.4 Government Services 4.3 5.4 Housing 6.0 6.2 Other Economic Sectors 4.8 4.9 Percent of GNP at 1967 market prices: 16 1292 1970 Gross Investment 13.6 11.2 10.3 Gross Savings 7.7 7.7 7.5 Retsource Gap 5.9 3.5 2.8 Governmet Current Revenues 7.1 7,7 8.5  Resource Gap (Percent of Invest): 1967 4W3.3 1969 31.3 -1970 27.2 Exchange Rates and Domestic Prices: Annual Percent Change Conversion Officialrate 'AfsU453 - US$ 1 Free market r0ie (Mty 1971) AfS90.0 - US$ 1 10.7 (May 1970) AfP81.3 - US$ 1 7.7 National Price Tndex (1970/71) 259.8 29.4 Money and Credit (Millions of afgh=1s): Percentage of At March 20, Change from 1 971 March 2 Total money assets 15,