Afghanistan’s Economic Potential: A Case for Regional Security

If partnership and investment in exploration and development of mineral reserves sectors in Afghanistan is extended by the developed world, it can bring economic revolution not only in Afghanistan but in the whole region. China, Iran, India, Pakistan, Russia and Central Asian Republics (CARs) are already economically engaged with Afghanistan. Politically, Afghanistan is part of Central, West and South Asian region. However, due to regional politics, its potential as a transit hub has not been fully utilized. Its trade with Pakistan stands at only around US$ 1.2 billion. India is the third largest trading partner of Afghanistan with a trade value of US$ 900 million and investments over US$ 3 billion. Unfortunately, political instability and war in Afghanistan have forced 42 percent of the population to live in poverty, as unemployment rates have increased to 40 percent and rapid population growth at the rate of 2.3 percent places pressure on service delivery. Regional politics, especially proxy wars by regional and global players have impeded its economic potential. Regional cooperation is a key to managing a successful transition in Afghanistan in order to promote increased trade and connectivity within the region and external markets. It has the potential to enable broader integration with large regional markets and the global economy. This, however, is subject to comprehensive security and stability in the region