The Economy

Afghanistan's economy is based primarily on agriculture and there has been little industrial development. Economic growth has been plagued by virtually constant civil strife since 1979, when the Soviet Union began a military occupation that lasted 10 years.

accounts for more than 80 per cent of the labor force yet only about 6 per cent of the land is planted in crops. Most of this consists of irrigated steppes and river valleys north of the Hindu Kush. Dry-farming methods enable some farming to be done in the more humid river valleys and on the steppes.

Opium is one of Afghanistan's largest crops. despite its illegal status. Other crops include wheat, rice, fruits, nuts, cotton, sugar beets, sugarcane, and some vegetables. Farming methods nearly everywhere are primitive. There is little use of fertilizer or modern machinery.

Many people, some of whom are nomads, are engaged in livestock raising. Sheep, cattle, and goats are the most important animals. Their meat, wool, hides, and skins make up one of the main sources of the national income. Karakul skins (Persian lamb) are an important export.

Most of the personal and household goods required by the people are still made at home and in small village shops. Textile weaving and, particularly, rug making are among the oldest and most important handicrafts.

Modern industry is hampered by lack of technical knowledge and capital, and disruptions from war. Much of what has been accomplished has been due to foreign aid. Among the chief contributions of foreign assistance have been hydroelectric plants and factories for small-scale production of textiles, cement, porcelain, and carpets.

Natural gas is the only natural resource produced in large amounts. There are deposits of various other minerals but little production, mainly because many of the deposits are in remote locations and adequate transportation is lacking.

Not only is Afghanistan located in one of the least accessible parts of the world, but transportation is poorly developed within the country. There are no railways and no navigable waterways except the Amu Darya. Roads are largely unpaved. The chief roads, however—those linking Kabul, the capital, with major provincial cities—are hard-surfaced. There are few motor vehicles; camels and donkeys continue to provide much of the transportation. Ariana Afghan Airlines, the national airline, offers service from the international airport at Kabul.

Afghanistan's basic currency unit is the afghani.