Afghanistan Poverty Status Update

Abstract

A severe slow-down in Afghanistan's economic growth characterized the period between 2012 and 2014, the so called Transition period leading to the 2014 election and handover of security responsibility to Afghan forces. Afghanistan's economic malaise during this time can be attributed to the combined effects of the drawdown of international military forces and a sharp fall in associated international spending, reduction of aid, and increasing conflict and political instability. While aid fueled strong growth during the pre-transition period between 2007-2008 and 2011-2012, worrisome socio-economic dynamics already present intensified during the transition. Notably, the transition crisis magnified once again the many inequalities-between regions, cities and rural areas, rich and poor Afghans, and between men and women and girls and boys-that fracture Afghan society. The poorest and most vulnerable segments of the population benefited least from pre-transition growth, and the same groups suffered the most once the economy and the security condition deteriorated. This new edition of the Poverty Status Update series documents the evolution of poverty and socio-economic inclusion during the transition. It examines determinants of poverty and, with an eye beyond 2014, suggests policies to reduce vulnerability and inequalities.