Proposal for SMEs Development in Afghanistan Based on Turkey Experiences (New Zabulian Doctrine)

Afghanistan as an underdeveloped country needs to follow the experiences of other developing countries which are successful in achieving economic development and poverty reduction through private sector promotion. Private sector development may take many different forms, but the results may be quite different in terms of equitable development and social inclusiveness. One of the most efficient ways of private sector development is the promotion of SMEs instead of large firms. Turkey as a historical and currently a large economy has valuable experiences in industrial sector especially on SME development. SMEs play a significant role in economic growth and poverty reduction of Turkey. All manufacturing SMEs of Turkey operate in 280 organized industrial zones (OIZs), which are located in different parts of the country. One of the unique SME development methods of Turkey is called OSTIM SME development model. Since the OSTIM model has been recognized as a pattern of capital formation for poverty reduction by many economists. currently, a number of developing countries are interested to use the experiences of OSTIM for private SME sector development in their economies. I also through this research found a critical compatibility between the objectives of Afghanistans (2015-2020) SME development strategy and the OSTIM SME development model. Therefore, I strongly proposethe implementation of the OSTIM SME development model for Afghanistan private SME sector developmentunder the name of New Zabulian doctrine.