THE EFFECTS OF FOREIGN AID ON ECONOMIC DEVELOPMENT IN AFGHANISTAN (2001-2015)

Authors : Müjgan Deniz, Zubeyr Ghulam Haidar

Pages : 110-138

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Publication Date : 2019-10-27

Article Type : Research

Abstract :The aim of this study is to realize the issue of foreign aid disbursements as practiced in Afghanistan by  using objective perspective to specify the effects of foreign aid on economic growth. This research study  will recognize the impacts of foreign aid disbursements on economic development as affected by the  political and strategic considerations and also by corruption levels which could have significance to future  foreign aid programs in developing and post-conflict countries similar to Afghanistan. This research  uses secondary data and both qualitative and quantitative methods which is conducted by collecting  information from books and articles also collecting socio-economic statistics from reports and surveys to  analyse the conditions in Afghanistan. The study examines both advantages and disadvantages of foreign  aid on economic development using theory, as well as empirical analysis of transnational countries.  The results indicate that foreign aid programs alone are not sufficient and efficacious for the economic  growth of post-conflict states like Afghanistan. However, after two decades of foreign aid inflows to  Afghanistan, the socio-economic conditions has not been improved, in order to make contribution to  development process of poor countries, the potential advantages assists as providing resources to improve  infrastructure, agriculture, education and transfer of technology. The GDP growth of Afghanistan has  been declined, level of corruption has been increased, poverty rate has been risen and unemployment has  been increased in this period. The intended conclusion is to provide recommendations to make foreign  aid programs in Afghanistan useful and beneficial to its economic development.
Keywords : Afghanistan, Foreign Aid, Economic Growth