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Geography

The Islamic Republic of Afghanistan lies between the Middle East, Central Asia and the Indian subcontinent. The terrain is rugged and harsh. Mountains cover more than 75 per cent of the country’s total area of 652,225 km2, creating isolated valleys.
 
The last official census, conducted in 1979, registered a population of 15.5 million. Current estimates range from 24 million (Afghan Central Statistical Office, 2006) to 30 million (World Bank, 2006). The population comprises some 25 distinct ethnic groups. Afghanistan is a young country, where 52 per cent of the population is 17 years of age or younger. More than 77 per cent of the people live in rural areas.

Agriculture

The sector is the most important source of employment, and in 2007 its contribution to the gross domestic product (GDP) was about 33 per cent.

Because of the mountainous nature of the country, the total arable land area is 6.5 million hectares, or about 12 per cent of the territory. Agricultural activity is possibile in rainfed areas in the north and in specific patches or strips of land in the numerous mountain valleys and the thousands of watersheds created by streams and aquifers originating in the mountain ranges.

The country produces food crops, mainly at the subsistence level, as well as a some export crops and livestock products. As a consequence of decades of conflict, agricultural production declined by an average of 3.5 per cent a year between 1978 and 2004, and 50 per cent of the country’s livestock was lost between 1997 and 2004. Illegal poppy cultivation is an important source of rural income, with production concentrated in the southern provinces.

Economy

The economy is based on liberal and open markets, led by private sector activity with low state intervention. In 2008 GDP was US$8.4 billion, showing an annual growth rate of 5.3 per cent.

International assistance constitutes about 90 per cent of all public expenditure. According to macroeconomic forecasts, in the short term donor-aided government reconstruction and public investment will remain the main drivers of growth, but in the medium term their role will decline as private investment eventually takes the lead.

Source: IFAD