Publication: Afghanistan : Economic Incentives and Development Initiatives to Reduce Opium Production
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2008-02
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2008-02
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This report is about how to progressively reduce over time Afghanistan's dependence on opium - currently the country's leading economic activity - by development initiatives and shifting economic incentives toward sustainable legal livelihoods. Specifically, the report identifies additional investments and policy and institutional measures to support development responses that can counterbalance the economic advantages of opium. It analyzes ways to change the relative incentives between licit and illicit cropping and to help enhance rural livelihoods for the poor, under better governance and security conditions. The report puts forward concrete recommendations and the expected impacts on growth, poverty reduction and the opium economy are assessed. The report first briefly discusses the policy context (Chapter 1) and provides an overview of the opium economy (Chapter 2), focusing on how different segments of the rural population interact with it. The report then analyzes the scope for increasing value added, competitiveness and productivity in agriculture (Chapter 3) and for promoting enterprise development and off-farm employment (Chapter 4). The complementary role of further investments in rural infrastructure is examined in Chapter 5, and measures for strengthening governance are analyzed in Chapter 6. In Chapter 7 issues that cut across all counter narcotics efforts are examined. A final chapter looks at implementation, and at issues of prioritization, synergies and phasing (Chapter 8). The recommendations of the report are encapsulated in a matrix at the end of the Executive Summary.
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“World Bank. 2008. Afghanistan : Economic Incentives and Development Initiatives to Reduce Opium Production. © World Bank. http://hdl.handle.net/10986/7968 License: CC BY 3.0 IGO.”
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Publication Afghanistan : Economic Incentives and Development Initiatives to Reduce Opium Production(2008-02)This report is about how to progressively reduce over time Afghanistan's dependence on opium - currently the country's leading economic activity - by development initiatives and shifting economic incentives toward sustainable legal livelihoods. Specifically, the report identifies additional investments and policy and institutional measures to support development responses that can counterbalance the economic advantages of opium. It analyzes ways to change the relative incentives between licit and illicit cropping and to help enhance rural livelihoods for the poor, under better governance and security conditions. The report puts forward concrete recommendations and the expected impacts on growth, poverty reduction and the opium economy are assessed. The report first briefly discusses the policy context (Chapter 1) and provides an overview of the opium economy (Chapter 2), focusing on how different segments of the rural population interact with it. The report then analyzes the scope for increasing value added, competitiveness and productivity in agriculture (Chapter 3) and for promoting enterprise development and off-farm employment (Chapter 4). The complementary role of further investments in rural infrastructure is examined in Chapter 5, and measures for strengthening governance are analyzed in Chapter 6. In Chapter 7 issues that cut across all counter narcotics efforts are examined. A final chapter looks at implementation, and at issues of prioritization, synergies and phasing (Chapter 8). The recommendations of the report are encapsulated in a matrix at the end of the Executive Summary.Publication Securing Durable Development in Afghanistan : Policy Notes for the Government(Washington, DC, 2010-04)The government of Afghanistan has an opportunity in the coming months to turn the country around. It is now opportune to improve security, governance, and development. Unprecedented international military support, political attention and aid are available to Afghanistan. The government is inheriting years of good economic performance, notable progress on social outcomes, and continuing strong support from the international community. Gross domestic product (GDP) has grown at an average of 12 percent in the last five years with moderate inflation and a stable Afghani. The National Solidarity Program is spurring community-driven rural development in nearly all districts of the country and the large opium economy is in retreat. Significant progress has been achieved in basic education and health. Gender indicators are improving. The government and its development partners have an obligation to seize this opportunity for all Afghans. All donors made an explicit commitment at the London Conference in January 2010 to progressively cede leadership to the Afghan people. The donors agreed to route half of their development aid through the national budget from the current one-fifth in the next two years, as local capacity to execute development programs improves. Further, donors aim to work together to improve aid effectiveness by better alignment with Afghan priorities, minimize opportunities for corruption and improve aid predictability. This overview summarizes the view of the World Bank on priority development issues and policy actions. It is intended to be a useful reference for the government as it prepares for the Kabul conference. The issues and policy options proposed are consistent with the ands and the Bank's interim strategy note of May 2009. It synthesizes the key findings and analyses of the detailed policy notes which draw upon the World Bank's past and ongoing work in Afghanistan, as well as wider experiences, including those from other countries experiencing conflict.Publication Islamic Republic of Afghanistan Agricultural Sector Review(Washington, DC, 2014-06)Economic growth, job creation, and development are central to the decade of transformation (2015-25) and long-term security for the people of Afghanistan. The Bank and the Government of the Islamic Republic of Afghanistan (GoIRA) recognize that agriculture and rural development are a key to inclusive growth, and hence need renewed vigor and strategic long-term investments. Further, the Bank and the GoIRA acknowledge that increases in agricultural productivity and market access for smallholders are critical for rural development, job creation, and food security in Afghanistan. Sections two and three of this report describe the agricultural sector and its current and potential roles in the Afghan economy, and present the rationale for choosing certain areas and subsectors for a selective 'first mover' strategy to achieve early gains. Section four outlines the constraints and potential in each of the three value chains proposed for the selective strategy, irrigated wheat, intensive livestock production, and horticulture. Section five describes cross-cutting constraints and how best to address them, and Section six proposes measures to help the rural poor who will not benefit much from the first-mover strategy. Section seven summarizes the recommendations of the review and their expected results for jobs and incomes.Publication Zambia's Jobs Challenge : Realities on the Ground(Washington, DC, 2013-09-01)In September 2013, the World Bank launched the second Zambia economic brief, entitled Zambia's jobs challenge: realities on the ground. This report presents response of the youth to the facts and figures shared in the Zambia economic brief. It gives a broad range of discussion, often provocative, as to how Zambia's employment challenges can be tackled. It discusses the issues as diverse as cultural mind-set, absence of entrepreneurial training, weaknesses in labor laws, and low investments in agriculture research and development.Publication Responding to Afghanistan's Opium Economy Challenge : Lessons and Policy Implications from a Development Perspective(World Bank, Washington, DC, 2008-03)Opium, Afghanistan's leading economic activity, lies at the heart of the challenges the country faces in state building, governance, security, and development. With their narrow law enforcement focus and limited recognition of development, security, and political implications, current global counter-narcotics polices impose a heavy burden on Afghanistan. This paper first provides a summary overview of Afghanistan's opium economy and the factors determining rural households' decisions on cultivating opium poppy. It then discusses the dynamic evolution of the Afghan drug industry in recent years, in particular its consolidation around fewer, powerful, politically-connected actors and the associated compromising of parts of some government agencies by drug industry interests. The paper reviews the experience with different counter-narcotics interventions, analyzes some proposals not yet tried in Afghanistan, and draws lessons and policy implications. Unfortunately there are no "silver bullets"-easy, quick, or one-dimensional solutions, and a longer-term horizon along with sustained commitment and resources will be required in order to phase out the opium economy over time. The paper concludes by putting forward some broad principles and approaches of a "smart strategy" against drugs in Afghanistan.
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