Tuesday, August 17, 2021

The Coming Economic, Social, And Humanitarian Crisis In Afghanistan Will Be The Worst That The World Has Seen In Decades

People wait to cross into Afghanistan, at the Friendship Gate crossing point at the Pakistan-Afghanistan border town of Chaman, Pakistan August 13, 2021. REUTERS/Saeed Ali Achakzai 

 VOA: Hunger Grips Millions as Afghanistan Falls to Taliban Insurgents 

GENEVA - The World Food Program is warning of a dramatic rise in the number of hungry people in Afghanistan as fighting and displacement in the war-torn country intensify. 

A United Nations assessment of the food security and nutrition situation in Afghanistan finds one in three Afghans face acute food insecurity. That means an estimated 14 million people in the war-torn country are barely able to meet their daily minimum food needs. 

Because of the dire situation, the World Food Program says malnutrition levels are soaring, and some 2 million children need nutrition treatment to survive. 

WFP spokesman Tomson Phiri says the Afghan people are facing both an artificial and natural disaster, rendering them unable to feed their families. 

He says a poor harvest is projected as the country has been hit by a second drought in four years.  

Read more ....  

WNU Editor: Here is a good overview of the Afghan economy .... What next for Afghanistan's economy? (Andrew Walker, BBC World Service). 

I did the math. 

22% of the Afghan economy is dependent on foreign aid. It is safe to say that most of that aid has now evaporated. 

Foreign investment will no longer happen. I expect sanctions will be imposed within a month or two (when all foreign nationals are out of the country). The Chinese are talking about investing in Afghanistan. I have to see it to believe it.

Before the collapse there were 116,000 Afghan police/border guards/and other law enforcement officers (link here). It is safe to say that they are now out of a job. 

300,000 Afghan soldiers. They are now unemployed, with many of them now in hiding. 

Before the collapse there were about 350,000 Afghan government employees in administration. The cleaning staff will probably be permitted to return, but despite Taliban assurances that everyone is safe, my gut tells me that most government employees will not return to work. 

I am reading reports that medical personnel throughout the country are being forced to go back to work. Ditto for contractors who maintain the country's infrastructure. Forcing and threatening people to work is not the best way to maintain your economy. 

The Taliban were asked today if the country's financial and banking system will be safe under their rule. The fact that such a question was even asked is a red flag to everyone that your money is no longer safe in Afghanistan right now. 

Agricultural production, that involves approximately 60% of the country's workforce, is in a shambles because of the war, a drought, and Covid. There is now a very real possibility of famine in some parts of the country during the winter months. 

22% of the workforce is made-up of women. Their future is definitely in doubt. 

Bottom line. 

I see an economic contraction that will not only cripple the country for years to come, but it will generate a social and humanitarian crisis that will shock many. 

Afghanistan was a troubled country even in the best of times, but I predict they will be classified as a failed state within a year.

As I said. I did the math.

13 comments:

Anonymous said...

Wnu you're kidding, right?

The severity of a fall depends on the relative height your falling from and to

The USA and the West will see the biggest fall

Why?
We are not used to hardship
We are not used to being tyranized by our own governments, WHILE the media attacks us and while a political party pushes us into the abyss of racism

Well.. let me correct myself

This will either be the biggest fall of the West, or we will take off the shackles politicians and corporate media put on us, free ourselves from tyrants and see a new golden age with more liberty, wealth you could even imagine once these cancerous leeches are no

We will see

But Afghanistan will not be relevant in this(other than the Chinese raw earths game etc but it's minor in comparison to what the west will go through this and the next couple of years

The West is being attacked from within by Marxists and cult leaders who now build detention centres/ concentration camps for dissidents..I mean sorry for "covid"patients... right

Look it's gone far enough. We need new elections as all governments have lost trust.

Either new elections with ID and paper ballot OR we will skip the pleasantries and go straight to it

Daniel said...

What are the criteria of a failed state?

Personally I expect hard times ahead, but I think the Taliban will likely manage to maintain order, if only because there is no one else left to challenge it. Poverty and starvation are not synonymous with a failed state - the USSR was hardly a failed state in the 30s.

Adam said...

Not trying to be a kiss ass or anything but that was a fascinating analysis WNU. Really cool that you did the math. I was surprised to read that foreign aid/investment made up only 22% of the afghan economy.

Anonymous said...

Very good comments by Daniel and Adam.

Anonymous said...

Lol right..kiss kiss kiss butt
Wnu completely ignoring Chinese money coming in.. but great math
The trolls are out tonight

Anonymous said...

China will pour in tons of money and Russia too and Iran all willing to help

Anonymous said...

Yuppers, trolls at 9:11 and 9:38.

Anonymous said...

And especially 959

War News Updates Editor said...

Regular readers of this blog know that I was in China for a number of years in the 1980s, and have done business with them from the 1990s forward.

The Chinese are very shrewd with their money. It is going to be years before they put serious money in Afghanistan, and only after numerous conditions and expectations are met.

The idea that Russia, China, and Iran are going to pour money into Afghanistan anytime soon tells me that some my commentators are very ignorant on what the real world is like.

Jac said...

WNU,

The only way I disagree with you is...you are a little bit optimistic.

Anonymous said...

Wnu seriously the Chinese pump billions into the dirtiest places if they can make a point with it and Afghanistan fits that bill perfectly

I've been to China many times, you've got no monopoly on knowledge when it comes to China

Adam said...

Thanks anon.

Adam said...

I was thinking the same thing. Like some have said earlier, the trolls are out tonight.