What Does Economics Have to Say about Afghanistan's Future?: Western Economic Naiveté and the Afghanistan Mess

Abstract

Using three market examples: opium, grapes, and timber; this paper illustrates mismanagement of Afghan economic affairs. These examples show an adverse effect of Western influence since the 9/11 invasion. Economic policy in Afghanistan is based on the history of capitalism, not the principles of economics. This mistake has been catastrophic. The Science of Economics has predictive power in Afghanistan if Afghan beliefs are distinguished from Western beliefs. Once Afghan attitudes are understood, Afghanistan is more easily managed. The greatest economic distinction between the West and Afghanistan is the absence of individual rights, particularly, in economic terms, property rights – in Afghanistan. A focus on self-interests of Afghans, instead of property rights and foreign spending would lead to better economic outcomes in Afghanistan.